Chapter 6

2. statement Sentence in a business plan that describes the purpose of the business.
6. capital Money necessary to start and open a business; also known as seed capital.
7. Financial statement that reports the assets, liabilities, and net worth of the business.
9. Ability to influence others to reach a goal.
12. flow Movement of money into and out of a business.
15. investors Private investors who fund start-up businesses.
17. Financial statement that reports anticipated sources and uses of cash from operations, investing, and financing activities.
18. Financial statement that projects revenues and expenses to show whether or not a business is profitable.
20. Distinguishing characteristic or quality that makes each person unique.
21. skills. Skills gained through life experience or working on a job that help an individual perform in the workplace or gain success in a career; also known as foundation skills.
22. capital Money invested in a business by investors who form partnerships or groups to pool investments.

1. skills. Critical skills necessary to perform the required work-related tasks of a position; also known as skills of the trade.
3. Property or items of value a business owns.
4. Financial statements based on estimates of future business performance, sales, and expenses.
5. Asset pledged that will be claimed by the lender if the loan is not repaid.
8. financing Borrowing money that must be repaid for use in the business.
10. All the people and organizations that might purchase a product.
11. Someone with experience who can provide advice, suggestions, and ideas
13. research Gathering and analyzing of information about a business.
14. financing Capital brought into a business in exchange for a percent of ownership in the business.
16. plan Written statement of goals and objectives for a business with a strategy to achieve them.
18. Process of setting goals and deciding how to accomplish them.
19. structure Refers to the way a business is financed.