Unit 3 - Finance Key Terms Flashcards
1
Q
Start-up Capital
A
Initial funds to start a business
2
Q
Expansion
A
Growing the business entering new markets
3
Q
Research and Development
A
Innovating new products/services
4
Q
Operational Costs
A
Day-to-day expenses, salaries, rent
5
Q
Debt Repayment
A
Paying off loans or other obligations (e.g. penalty fees, interest and other liabilities)
6
Q
Emergencies
A
Unexpected costs, economic downturns
7
Q
Collateral
A
the lender wants assurance that they won’t lose all their money. If you pledge an asset as a collateral, your lender has a right to take action
