Credit & Capital Review

A friend or family member who offers support to the business owner because they want the business owner to succeed.

• sweat equity

• angel investor

• investor equity

• crowdfunding

___ refers to the hard work that a business owner puts into forming, founding, and operating his/her business.

• angel investors

• sweat equity

• investor equity

• crowdfunding

This form of credit is expensive, requires very little information from business owners, and does not require personal guarantees.

• secured bank debt

• unsecured bank debt

• unsecured debt

• secured bank loan

This form of credit is available to credit-worthy owners of a company who give a personal guarantee that if the business fails they will personally be responsible for paying back the debt.

• online credit

• unsecured debt

• unsecured bank debt

• secured bank debt

The most expensive form of debt is usually __.

• credit cards

• online credit

• unsecured bank debt

• secured bank debt

A fee paid monthly to the lender for borrowing money.

• unsecured bank debt

• interest payment

• secured bank debt

• origination fee

The amount of money borrow from a creditor is called _.

• guarantee

• inventory

• interest

• principal

Funds that are lent to businesses with an agreement to get repaid with interest is called __.

• capital

• debt

• principal

• equity

Funds contributed to a business by investors is known as __.

• debt

• credit

• principal

• capital

When strangers learn about business ventures online and then decide whether or not to make an investment.

• crowdfunding

• investor equity

• sweat equity

• angel investor