Micro-Enterprise KFC Set 4 and 5 Vocabulary

1. The amount of money borrowed.

• Unsecured Debt

• Total Costs

• Principal

• Secured Debt

2. An investment vehicle, including stocks, bonds, and mutual funds.

• Security

• Sweat equity

• Variable Costs

• Unsecured Debt

3. Costs that vary based on the units sold by your enterprise.

• Profit

• Variable Costs

• Units

• Total Costs

4. A company that provides a good or service to another company. Example: "I buy hair care products from my distributor and sell them to my customers.

• Target market

• Selling

• Semi-Variable Costs

• Supplier

5.  A legal agreement that an asset is part of a guarantee to a lender, when the lender can take possession of the assets and sell it to recover the funds owed by a borrower in the event the borrower is unable to make a required debt payment.

• Pledged

• Trade References

• Pro Forma

• Sweat Equity

6. The exact customers and market sector the business intends to serve.

• Stakeholders

• Supplier

• Units

• Target Market

7. Debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make its scheduled debt payment. Can be guaranteed by the entrepreneur or by any credit-worthy guarantor.

• Secured Debt

• Total Revenue

• Unsecured Debt

• Real Estate

8. Debt that does not include a promise by a guarantor to repay the loan in the even the debtholder is unable to make a required payment. (It is riskier for the bank or online lending company, therefore charging higher interest rates).

• Unsecured Debt

• Secured Debt

• Sweat Equity

• Variable Costs

9. Costs that vary somewhat based on the number of units you sell. Example: If your enterprise buys an iPhone you won't have to pay again for apps you already own.

• Total Costs

• Profit

• Semi-Variable Costs

• Variable Costs

10. Fixed costs plus variable costs.

• Variable Costs

• Semi-Variable Costs

• Principal

• Total Costs