Chapter 6.1 and 6.2: Entrepreneurship

Trait

distinguishing characteristic or quality that makes each person unique

transferable skills

help an individual perform in the workplace or gain success in a career

pro forma balance sheet

reports assets, liabilities, and net worth of the business

Mentor

someone with experience who can provide advice, suggestions, and ideas

Leadership

the ability to influence others to reach a goal

market research

gathering and analyzing information about a business

venture capital

money invested in a business by investors who form partnerships or groups to pool investments

Job-specific skills

necessary to perform the required work-related tasks of a position

Angel Investors

private investors who fund start-up businesses

pro forma income statement

projects revenues and expenses to show whether the business is profitable

Capital Structure

refers to the way a business is financed

pro forma cash flow statement

reports anticipated flow of income and expenses for the business

start-up capital

the money necessary to start and open a business

Cash flow

the movement of money into and out of a business

Planning

the process of setting goals and deciding how to accomplish them

assets

the property or items of value a business owns.

business plan

a written statement of goals and objectives for a business with a strategy to achieve them

Entrepreneur

a person who starts a new business or purchases an existing business.

Mission Statement

a sentence describing the purpose of the business

pro forma financial statements

financial statements projecting future years' operations

market

all the people and organizations that might purchase a product

collateral

an asset pledged that will be claimed by the lender if the loan is not repaid.

debt financing

borrowing money that must be repaid for use in the business

equity financing

capital brought into the business in exchange for a percent of ownership in the business