Course Content

Total learning: 41 lessons Time: 10 weeks

Entrepreneurship Glossary

Here is a glossary of key terms used in this course.

  • Accounts Payable – money you owe for products and services already received 
  • Accounts Receivable – money owed to you for products/services already delivered 
  • Angel Investor – a private high net worth individual who will invest money in medium or high potential ventures in exchange for percentage ownership in a company 
  • Appreciating Asset: something you own that is going up in value 
  • Appreciation – increase in value over time 
  • Asset: something you own that has value 
  • Balance Sheet Formula – assets minus liabilities equal owners’ equity 
  • Balance Sheet: a financial statement that keeps track of assets, liabilities, and owners’ equity. 
  • Bond – debt instrument through with companies and governments can raise money 
  • CAC – Customer acquisiton cost: The amount you pay in advertising costs to acquire a new customer
  • Cash Flow – the in and out of money to/from your business 
  • Cash Flow Statement – a financial statement that keeps track of all the money that goes in and out of your business.
  • Churn – The rate of customer cancellation
  • COGS – the cost of goods sold. What you pay for what you sell. 
  • Depreciating Asset: something you own that is going down in value 
  • Depreciation – reduction in value over time 
  • EBITDA – earnings before interest, taxes, depreciation, and amortization 
  • Equity – ownership in a company
  • Expenses – what you spend 
  • Gross Income – Total revenue minus COGS 
  • Gross Margin – same as gross income 
  • Income Statement – a financial statement that keeps track of revenue, expenses, and profit. 
  • Income Statement Formula – Revenue minus expenses equals net profit. 
  • IPO – initial public offering, selling part of your company on the stock market in exchange for investment capital in your business
  • Liability: something you owe for 
  • LTV – Lifetime value: The total expected revenue from a customer during the term of that customer being a customer
  • Net Income – same as net profit 
  • Net Profit – Total revenue minus total expenses 
  • Option pool – a percentage ownership in your company set aside at founding for those who may come aboard later. 
  • Owners’ Equity: The value of what the shareholders/owners have put into a company 
  • Revenue – what you earn 
  • Venture Capital – investment money raised from firms that invest in high potential ventures in exchange for percentage ownership in a company 
  • Vesting – earning equity over time instead of all at once 
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