Chapter 19 Flashcards
The ongoing expenses for operating a business
Operating costs
An individual who takes the risk of starting a new business
Entrepreneur
Money that can be made available for future expansion of a business
Reserve fund
Money that can be made available for future expansion of a business
Private financing
Borrowing money from a bank or other financial institution to fund a business
Commercial debt financing
A loan that finances a new or ongoing business
Commercial loan
An arrangement in which bank customers can borrow a certain amount of money from the bank immediately
Line of credit
A loan that is backed up by a collateral
Secured loan
A loan that does not require collateral from the borrower
Unsecured loan
An independent agency of the federal government that offers assistance to people who are starting small businesses and to those who want to expand existing businesses
Small business administration (SBA)
A government loan program that allows businesses applying for loans of less than $150,000 to submit a one page application with a small amount of documentation
LowDoc program
A credit card that is issued to a business rather than an individual
Business credit card
A person outside an entrepreneur’s circle of friends and relatives who provides funding because he or she is interested in helping a new business to succeed
Private investor
A firm that lends money only to businesses
Commercial finance company
A company that provides private funding for small businesses that need a substantial amount of immediate cash
Venture capital firm
