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Owner’s Fund: This is that part of capital that belongs entirely to the entrepreneur.
Borrowed Funds: Entrepreneur can if required raise capital from outsider.
Finance: It may be defined as the provision of money at the time it’s wanted.
Business Finance: It refers to the acquisition and utilization of capital funds in meeting the
financial needs.
Financial Planning: Financial planning is the process of determining objectives, policies,
procedures, programmes and budgets to deal with financial activities of an organisation.
Fixed Capital: It is the funds required for the acquisition of those assets that are to be used over
and over for a long period.
Working Capital: It refers to that part of the capital which is needed for meeting out day- to-
day operational expenses.
Capitalization: It is the long-term funding that allows a business firm to operate Capital
Structure: “The makeup of a firm’s capitalization” is capital structure. (OPM) OTHER PEOPLE’S
MONEY-sources of finances from other sources.
Equity: It refers to the capital invested in an enterprise by its owners.
Retained Profits: It is undistributed profits of the business or retained with the business.
Preference Shares: Those shares which are entitled to a priority in the payment of dividend and
repayment of capital.
Seed Capital: It is initial capital of the enterprise provided to an entrepreneur to prove the
feasibility of a project.
Start Up: Product development and initial marketing, but with no commercial sales yet funding
to actually get company operations started.
Personal Financing: The initial investment made by an entrepreneur through his personal cash
or converts his assets into cash for investment.
Venture Capitalist: These are investors and investment companies whose specialty is financing
new, high-technology oriented entrepreneurial ventures.
Debt-financing: It is a financing method involving an interest-bearing instruments or it is a loan,
the entrepreneur is to pay back the amount of funds borrowed and interest amount within the
term period.
Debentures: A debenture is a written instrument acknowledging a debt containing fixed rate of