Title: Unit 6 Glossary
Course: BUS 278 How to Start a Green Business > Section: BUS 278 How to Start a Green Business

Unit 6 Glossary

Terms

Term | Definitions
Annual percentage rate (APR) | also called nominal APR, and the term effective APR, also called EAPR. Describes the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgag ...
assets | In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic val ...
Bootstrapping or Booting | refers to a group of metaphor which refer to a self-sustaining process that proceeds without external help.
business (also known as enterprise or firm) | an organization involved in the trade of goods, services, or both.
Compound interest | when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. This addition of interest to the principal is called compounding. A ban ...
debt | an obligation owned by one party (the debtor) to a second party, the creditor: usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to ...
debtor | an entity that owes a debt to another entity. The entity may be an individual, a firm, a government, a company or other legal person. The counterparty is called a creditor. When the counterpart of ...
effective APR | the fee+compound interest rate (calculated across a year).
Financial capital | money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services to the sector of the economy upon which their operation is based, i.e. retail, ...
Interest | a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited ...
investor | a person who allocates capital with the expectation of a financial return.
loan | a debt evidenced by a note, which specifies, among other things, the principal amount, interest rate, and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of ...
nominal APR | the simple-interest rate (for a year).
Risk | the potential of loss (an undesirable outcome, however not necessarily so) resulting from a given action, activity and/or inaction. The notion implies that a choice having an influence on the outc ...
Working capital (abbreviated WC) | a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, w ...