NFTE Chap 10

Front

An individual who invests in a business venture, providing capital for start-up or expansion, in exchange for a higher rate of return than would be given by more traditional investments.

Back

ANGEL INVESTOR

Front

Money borrowed from the bank, other institutions, or individuals that must be paid back, along with fees and interest.

Back

DEBT

Front

Money borrowed from the bank, other institutions, or individuals that must be paid back, along with fees and interest. Shares of ownership that entrepreneurs sell in their companies in exchange for funding, advice, and other benefits that can be obtained from shareholders, especially angel investors and venture capitalists, or sometimes friends and family.

Back

EQUITY

Front

Funds that businesses obtain to help pay start-up and operating costs.

Back

FINANCING

Front

The costs involved in paying for equipment, supplies, and other expenses associated with owning something, in addition to the initial cost to obtain the item or start the business.

Back

TOTAL COST OF OWNERSHIP

Front

Funds invested in new companies by limited partnership businesses that contribute advice, guidance, and funding in the hopes of earning profit on the new venture.

Back

VENTURE CAPITAL

Front

A partner in a limited partnership firm that invests in new companies.

Back

VENTURE CAPITALIST

Front

A technique that weighs the benefits of a project against its costs to determine if the project or new business is worthwhile.

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COST BENEFIT ANALYSIS

Front

A technique that weighs the benefits of a project against its costs to determine if the project or new business is worthwhile. A specific business strategy that identifies potential risks to the business and outlines how the business will respond if they occur.

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RISK ASSESSMENT

Front

A specific business strategy that identifies potential risks to the business and outlines how the business will respond if they occur.

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RISK ASSESSMENT