block 1 Flashcards

1
Q
  • money owed by a company to a supplier. Ex. I purchase $10,000 of beauty supplies from a distributer to put in my store. The distributor gives me 60 days to pay it back. The $10,000 is now in accounts payable for my company meaning that I owe it to someone.
A

account payable

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2
Q

Money owed by a customer to a company. Ex. You purchased a new computer from me for $1,000. You put down $200 and signed a contract agreeing to pay the remaining $800 within the next30 days. That $800 goes into accounts receivable in my company meaning someone owes my company $800.

A
  1. Accounts Receivable
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3
Q

Individuals that make small investments in an enterprise or to support an entrepreneur where they do not expect an immediate or large return on the investment. They are typically friends and family who know business owner want to see them succeed

A
  1. Angel Investors
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4
Q

Something of a value. Anything owed. Ex. A house, a diamond ring. A security is a financial asset- a piece of paper that represent ownership in something and is worth money.

A
  1. Assets
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5
Q
  • debt from a bank. Banks require much more information from potential borrowers, and take more time to make a lending decision based on a great deal of analysis. Therefore, bank loans are less expensive than online lines of credit.
A
  1. Bank Loan
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6
Q

a loan. A bond is a security that investors buy and sell, that represents a legal obligation from the company issuing the bond that they will repay the funds they received when they issued the bond.

A

Bond

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7
Q
  • A determination of how many units are needed to sell in order to pay for all fixed costs.
A
  1. Breakeven Analysis
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8
Q
  • A company that provides individuals and companies with access to financial markets. Ex You buy stocks and bonds from a broker.
A
  1. Brokerage
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9
Q

Proper business behavior beyond complying with legal requirements.

A
  1. Business Ethics
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10
Q

– Funds contributed by investors to a business. Investors contribute when the business succeeds.

A
  1. Capital (or Equity)
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11
Q

Expenditures on equipment the business will use for many years.

A
  1. Capital Expenditures
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12
Q

Total Revenues minus Total one-time expenditures (called “capital expenditures”) on equipment that will be used for many years.

A
  1. Cash Flow
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13
Q

Cash, publicly traded stocks, government bonds, or corporate bonds that can be quicky turned into cash. Cash instruments can be turned into cash at values that are predictable and available to all holders of the cash instruments. Ex Apple stock is a cash instrument because it can be sold and converted to cash immediately and the amount that anyone would get for that stock be the same.

A
  1. Clash Instruments
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14
Q

Equipment, inventory or other good that are pledged to the bank in the case the company cannot make a loan payment

A
  1. Collateral
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15
Q

The ability to interact in a friendly and effective way with unfamiliar people. The ability to seem welcoming and easy to talk to, even with people who are different in age, appearance, or background.

A
  1. Comfort Engaging with Strangers
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16
Q

money earned when something is sold

A
  1. Commission-
17
Q

a promise to keep information you learn secret. This promise is often formalized by signing a Non-Disclosure Agreement (or NDA).

A
  1. Confidentiality
18
Q

A situation in which an individual might take an action to his/her advantage that would be to the disadvantage of a person or company that believes this individual is serving them. Ex. A customer tells a supplier in confidence that they are buying a large quantity of a specific product to advertise a major sale in two weeks. It would be a conflict of interest for that supplier to go to the competitor stores and use this information to get them to buy more of this product and put it on sale immediately.

A

Conflict of Interest

19
Q

unit price cost of goods sold

A
  1. Contribution Margin
20
Q

actions entrepreneurs and companies take that go beyond their financial self-interest. Ex. A local pet store makes a large donation to an animal shelter.

A
  1. Corporate Social Responsibility
21
Q

a corporation is a person in the eyes of the law. The corporation is taxed for profits and is liable for any debts or judgements. Corporations are owned by shareholders (individuals or other corporations).

A
  1. Corporation
22
Q

Costs that make up one unit of what you sell. These can be labor cost as well as material costs. Ex. When you sell a hat, the variable cost includes: the hat’s material and the labor cost required to make the hat.

A
  1. Cost of goods Sold
23
Q

A loss that an insurance company will reimburse a policyholder for in the event of a claim.

A
  1. Covered Loss
24
Q

Funds lent to a business with an agreement that the business will repay the lender with interest

A
  1. Credit (or Debt)
25
Q

A person or a business with a strong credit score and the financial resources that make it likely they will be able to repay any loan.

A
  1. Credit- Worthiness
26
Q

online program that provides unlimited access to industry experts in all careers.

A

Nepris

27
Q
  • Baton Rouge Area Chamber are the creators of the micro-enterprise certification.
A

BRAC

28
Q

provide the majority of employment in Louisiana and the U.S.

A

Small Businesses provide

29
Q

Enterprise means small business

A

Micro