Ch 19

involves operating as frugally as possible and cutting all unnecessary expenses

An agent who handles an entrepreneur's accounts receivable for a fee.

cash raised for a business in exchange for an ownership stake in the business

an ownership in a business

money invested in companies where there is financial risk

a private investor who funds start-up companies.

a source of equity financing for small business with exponential growth potential and experienced senior management.

make money for investors (fund's managers)

the money raised by taking out loans.

working capital,s the money a business using to support its operations in the short term.

an arrangement whereby a lender agrees to lend up a specific amount of money at a certain interest rate for a definite period of time.

a source of short-term financing provided by companies in your industry of trade.

refers to proposed or estimated financial statements based on predictions of how the actual operations of the business will turn out.

• Character
• Capital
• collateral
• Capacity
• Conditions

a borrowers reputation for fair and ethical business pratices

refers to the ability of a business to pay a loan in view of its income and obligations

net worth of a business,the amount by which the assets exceed its liabilities

security in the form of assets that a company pledges to a lender.

conditions are the circumstances at the time of the loan request.

the investigation and analysis a prudent investor does before making business decisions.

a private offering or sale of securities directly to a limited number of investors who meet certain sutibility standards

the sale of stock in a company on a public stock exchange

a type of security that signifies ownership in corporation and represents a claim on part of  the corporations assets and earnings.

the amount of cash needed to carry out daily business operations.

a extra amount of money that is saved and used only when absolutely necessary.