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ch19 stack
Term | Definition |
---|---|
bootstrapping | operating as cheap as possible |
factor | agent who handles an entrepreneur's account receivable for a fee |
equity capital | cash raised for a business in exchange for ownership in the business |
equity | ownership in a business |
risk capital | money invested in companies where there is financial risk |
Angel | private investor who funds startup companies |
venture capital | source of equity financing for small business with exceptional growth potential and good management |
venture capitalists | individual investors who invest venture capital professionally |
debt capital | is the money raised by taking out loans |
operating capital | money a business uses to support its operations short term |
line of credit | an arrangement whereby a lender agrees to lend a specific amount of money for a specific amount of interest over a specific period of time |
trade credit | credit one business grants to another business for purchase of goods |
pro forma | estimated costs of the business |
character | borrowers reputation for fair and ethical business practices |
capacity | ability business to pay back a loan |
capital | net worth of a business |
collateral | security in the form of assets that a company pledges to a lender |
conditions | circumstances at the time of the loan request |
due diligence | analysis private investor makes before investing |
private placement | private offering or sale of securities directly to a limited number of investors |
IPO | sale of stock in a company on a public stock exchange |
stock | type of security signifies ownership |
working capital | operating costs |
contingency funds | extra amount of money that is saved till absolutely necessary |