Unit 6 Product Development Study Guide

Buildings, equipment and funds are all considered _______________.

• Assets
• Capital

• Goods

• Services

Joey is a part-owner of the Donut Corporation. This means that he has ___________ in the corporation.

• Equity

• Interest

• Staking

• Debt Capital

__________________ provide financing to start-up companies and small businesses that are believed to have long term growth potential.

• Venture Capital Firms
• Commercial Banks

• Kickstarters

• Bootstrap

Capital that a business raises in the form of a loan to be repaid at a later date.

• Debt Capital

• Equity Capital

Capital that a business raises by selling a percentage of a business.

• Debt Capital

• Equity Capital

An arrangement between a bank and a company, that allows a company to borrow a certain amount of money at any time.

• Line of Credit

• Venture Capital

• Trade Credit

• Bootstrapping

A supplier allows a company to buy now and pay later.

• Line of Credit

• Venture Capital

• Trade Credit

• Bootstrapping

A situation where an entrepreneur starts a company with little capital.

• Line of Credit

• Venture Capital

• Trade Credit

• Bootstrapping

All of the following are benefits of lines of credit except:

• Flexible payment terms

• Access to cash limitations

• Flexibility of usage

• Helps with cash flow

A crowdfunding platform where entrepreneurs can gather money from the public.

• Kickstarter

• Venture Capital

• Trade Credit

• Bootstrapping