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Small Business Ch 12
Small Business Management Ch 12
| Question | Answer |
|---|---|
| 7(a) Loan Guaranty Program | Loan program that helps small companies obtain finaning through a guaranty provided by the SBA. |
| 7(m) Microloan Program | SBA loan program that provides short-term loans of up to $35,000 to small businesses and not-for-profit child-care cneters. |
| Accounts Pyable (Trade Credit) | Financing provided by a supplier of inventory to a given compnay. |
| Asset-Based Loan | A line of credit secured by working-capital assets. |
| Balloon Payment | A very large payment that the borrower may be required to make at a specified point about halfway through the term over which the payments were calculated, repaying the rest of the loan in full. |
| Business Angels | Private individuals who invest in others' entrepreneurial ventures. |
| Certified Development Company (CDC) 504 Loan Program | SBA loan program that provides long-term financing for small buinesses to acquire real estate or machinery and equipment. |
| Chattel Mortgage | A loan for which items of inventory or other movable property serve as collateral. |
| Community-Based Financial Institution | A lender that uses funds from federal, state, an private sources to provide financing to small businesses in low-income communities. |
| Equipment Loan | An installment loan from a seller of machinery used by a business. |
| Factoring | Obtained cash by selling accounts receivable to another firm. |
| Formal Venture Capitalists | Individuals who form limited partnerships for the purpose of raising venture capital from large institutional investors. |
| Informal Venture Capital | Funds provided by wealthy private individuals (business angels) to high-risk ventures. |
| Initial Public Offering (IPO) | The issuance of stock that is to be traded in public financial markets. |
| LIBOR (London InterBank Offered Rate) | The interest rate charged by London banks on loans to other London banks. |
| Limited Liaility | The restrictions of an owner's legal financial responsibilities to the amount invested in the business. |
| Line of Credit | An informal agreement between a borrower and a bank as to the maximum amount of funds the bank will provide at any one time. |
| Prime Rate | The interest rate charged by commercial banks on loans to their most creditworthy customers. |
| Private Placement | The sale of a firm's capital stock to selected individuals. |
| Purchase-Order Financing | Lender advances the amount of the borrower's cost of goods sold for a specific customer order. |
| Real Estate Mortgage | A long-term loan with real property held as collateral. |
| Return on Assets | Rate of return earned on a firm's total assets invested, computed as operating profits divided by total assets. |
| Return on Equity | Rate of return earned on the owner's equity investment, computed as net profits divided by owners' equity investment. |
| Revolving Credit Agreement | A legal commitment by a bank to lend up to a maximum amount. |
| Samll Business Innovative Research (SBIR) Program | A government program that helps to finance companies that plan to transform laboratory research into marketable products. |
| Samll Business Investment Companies (SBICs) | Privately owned banks, regulated by the Small Business Adminstration, that provide long-term loans and/or equity capital to small businesses. |
| Term Loan | Money loaned for a 5- to 10-year term, corresponding to the length of time the investment will bring in profits. |
Created by:
dengler
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