Business Entrepreneur chapter 2 Flashcards
a corporation is a person in the eyes of the law. The corporation is taxed for profits and is liable for any debts or judgments. Corporations are owned by shareholders.
Corporation
Costs that make up one unit of what you sell. These can be labor costs as well as material costs.
Cost of goods sold
A loss that an insurance company will reimburse a policyholder for in the event of a claim.
Covered Loss
Funds lent to a business with an agreement that the business will repay the lender with interest.
Credit (for Debt)-
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
Credit Worthiness
An internet phenomenon where strangers learn about a business online and then decide whether or not to make an investment. Crowdfunding investors are typically fans of an owner but they do expect a return of investment
Crowd Funding
the amount an insurance company makes a policyholder pay as part of any claim
Deductible
Failure to repay a loan.
Default-
The commitment to get something done.
Determination
Distinguishing a product or service different than anything else attracting customers generating sales and serving as the foundation for a thriving business
Differentiated Offering
Money paid by a company to a person who owns stock in that company. Dividends are optional- many companies do not pay dividends. Dividends are typically paid every three months.
Dividend
A clear, concise and compelling way to describe a business or new business concept in 30 seconds.
Elevator Speech
open ended that prompt more than a yes or no answer.
Engaging Question
Funds contributed by investors to a business. Investors contribute capital to a business because they expect a significant return on their investment when the business succeeds.
Equity
Understanding how individuals and business earn money and what they spend money on
Financial Literacy
the 12 month period a company uses to report financial results. A fiscal year can be the same as a calendar year or it can be any 12 month period that makes sense.
Fiscal Year
Costs that do not vary based on the units sold by the enterprise.
Fixed Costs
A computer portal offered by the Louisiana secretary of state that enables entrepreneurs to go to a single source to learn which forms they need to file the forms required by the secretary of state.
GeauxBiz Portal.
An individual self commitment to overcome obstacles to achieve long term goals. The ability to keep pursuing your dream despite challenges and defeats.
Grit
a credit worthy individual or business with sufficient liquidity that promises to repay a loan in the event that the debtholder can make a required payment.
Guarantor
a special account where individuals can deposit retirement funds that can grow tax deferred until they withdraw them after they retire.
Individual Retirement Account(FDA)
Debt owed to someone that is paid monthly.
Installment Payment
The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss.
Insurance claim
The individual or business that purchase an insurance policy for various types of protection
Insurance Policyholder
The amount a policyholder pays for an insurance policy
Insurance Premium
Non-physical assets created by individuals or companies that hold the exclusive right to commercialize.
Intellectual Property
give the author the sole right to benefit economically from what he/she wrote
Copyright
gives the inventor the sole right to benefit commercially from his/her invention
Patent
gives the registering individual or company the sole right to benefit from a brand or image he/she created.
Trademark
The federal agency that collects federal taxes and performs audits
Internal Revenue Service (IRS)
The merchandise that a company sells to customers
Inventory
A legal decision requiring a person or company to pay another person or company
Judgement
An obligation you have to pay someone else money. Also called a debt or loan.
Liability
