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