Chapter 19 Flashcards Preview

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Flashcards in Chapter 19 Deck (16)
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0
Q

The ongoing expenses for operating a business

A

Operating costs

1
Q

An individual who takes the risk of starting a new business

A

Entrepreneur

2
Q

Money that can be made available for future expansion of a business

A

Reserve fund

3
Q

Money that can be made available for future expansion of a business

A

Private financing

4
Q

Borrowing money from a bank or other financial institution to fund a business

A

Commercial debt financing

5
Q

A loan that finances a new or ongoing business

A

Commercial loan

6
Q

An arrangement in which bank customers can borrow a certain amount of money from the bank immediately

A

Line of credit

7
Q

A loan that is backed up by a collateral

A

Secured loan

8
Q

A loan that does not require collateral from the borrower

A

Unsecured loan

9
Q

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

A

Small business administration (SBA)

10
Q

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

A

LowDoc program

11
Q

A credit card that is issued to a business rather than an individual

A

Business credit card

12
Q

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

A

Private investor

13
Q

A firm that lends money only to businesses

A

Commercial finance company

14
Q

A company that provides private funding for small businesses that need a substantial amount of immediate cash

A

Venture capital firm

15
Q

Private investment firms that work with the SBA to provide longer term funding for small businesses

A

Small business investment companies (SBIC)