Funding and Managing Risk flashcards

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What is meant by “Bootstrapping” in this lesson?Debt, Equity, and Funding Choices: Bootstrapping develops a venture using limited internal resources and receipts.
What is meant by “Debt financing” in this lesson?Debt, Equity, and Funding Choices: Debt supplies funds with repayment obligations under agreed terms.
What is meant by “Equity financing” in this lesson?Debt, Equity, and Funding Choices: Equity supplies funds in exchange for ownership interests under an agreement.
What is meant by “Funding condition” in this lesson?Debt, Equity, and Funding Choices: A condition specifies obligations or restrictions attached to resources.
What is meant by “Dilution” in this lesson?Debt, Equity, and Funding Choices: Dilution reduces an existing owner's proportional interest when ownership units are added under the arrangement.
What is meant by “Financing fit” in this lesson?Debt, Equity, and Funding Choices: Fit compares a funding method with cash flow, risk, goals, and control needs.
What is meant by “Cash forecast” in this lesson?Cash Forecasts and Runway: A forecast estimates receipts, payments, and balances over stated intervals.
What is meant by “Working capital” in this lesson?Cash Forecasts and Runway: Working capital commonly equals current assets minus current liabilities under the accounting framework.
What is meant by “Burn rate” in this lesson?Cash Forecasts and Runway: Burn rate measures net cash use under a specified interval and definition.
What is meant by “Runway” in this lesson?Cash Forecasts and Runway: Runway estimates how long available cash lasts under stated burn assumptions.
What is meant by “Scenario analysis” in this lesson?Cash Forecasts and Runway: Scenario analysis compares outcomes under different plausible assumptions.
What is meant by “Forecast uncertainty” in this lesson?Cash Forecasts and Runway: Uncertainty identifies the range and sources of possible forecast error.
What is meant by “Business risk” in this lesson?Risk and Business Continuity: A risk concerns uncertain events affecting objectives.
What is meant by “Risk assessment” in this lesson?Risk and Business Continuity: Assessment examines likelihood, consequences, and relevant evidence.
What is meant by “Risk mitigation” in this lesson?Risk and Business Continuity: Mitigation reduces a risk's likelihood or consequences through suitable measures.
What is meant by “Business continuity” in this lesson?Risk and Business Continuity: Continuity planning maintains or restores important operations during disruption.
What is meant by “Insurance scope” in this lesson?Risk and Business Continuity: Insurance covers specified risks under policy conditions rather than every loss.
What is meant by “Risk monitoring” in this lesson?Risk and Business Continuity: Monitoring checks changing exposures and whether safeguards work.