Business Entrepreneur chapter 2

Question 1

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.

Answer 1

Corporation

Question 2

Costs that make up one unit of what you sell. These can be labor costs as well as material costs.

Answer 2

Cost of goods sold

Question 3

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

Answer 3

Covered Loss

Question 4

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

Answer 4

Credit (for Debt)-

Question 5

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

Answer 5

Credit Worthiness

Question 6

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

Answer 6

Crowd Funding

Question 7

the amount an insurance company makes a policyholder pay as part of any claim

Answer 7

Deductible

Question 8

Failure to repay a loan.

Answer 8

Default-

Question 9

The commitment to get something done.

Answer 9

Determination

Question 10

Distinguishing a product or service different than anything else attracting customers generating sales and serving as the foundation for a thriving business

Answer 10

Differentiated Offering

Question 11

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.

Answer 11

Dividend

Question 12

A clear, concise and compelling way to describe a business or new business concept in 30 seconds.

Answer 12

Elevator Speech

Question 13

open ended that prompt more than a yes or no answer.

Answer 13

Engaging Question

Question 14

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.

Answer 14

Equity

Question 15

Understanding how individuals and business earn money and what they spend money on

Answer 15

Financial Literacy

Question 16

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.

Answer 16

Fiscal Year

Question 17

Costs that do not vary based on the units sold by the enterprise.

Answer 17

Fixed Costs

Question 18

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.

Answer 18

GeauxBiz Portal.

Question 19

An individual self commitment to overcome obstacles to achieve long term goals. The ability to keep pursuing your dream despite challenges and defeats.

Answer 19

Grit

Question 20

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.

Answer 20

Guarantor

Question 21

a special account where individuals can deposit retirement funds that can grow tax deferred until they withdraw them after they retire.

Answer 21

Individual Retirement Account(FDA)

Question 22

Debt owed to someone that is paid monthly.

Answer 22

Installment Payment

Question 23

The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss.

Answer 23

Insurance claim

Question 24

The individual or business that purchase an insurance policy for various types of protection

Answer 24

Insurance Policyholder

Question 25

The amount a policyholder pays for an insurance policy

Answer 25

Insurance Premium

Question 26

Non-physical assets created by individuals or companies that hold the exclusive right to commercialize.

Answer 26

Intellectual Property

Question 27

give the author the sole right to benefit economically from what he/she wrote

Answer 27

Copyright

Question 28

gives the inventor the sole right to benefit commercially from his/her invention

Answer 28

Patent

Question 29

gives the registering individual or company the sole right to benefit from a brand or image he/she created.

Answer 29

Trademark

Question 30

The federal agency that collects federal taxes and performs audits

Answer 30

Internal Revenue Service (IRS)

Question 31

The merchandise that a company sells to customers

Answer 31

Inventory

Question 32

A legal decision requiring a person or company to pay another person or company

Answer 32

Judgement

Question 33

An obligation you have to pay someone else money. Also called a debt or loan.

Answer 33

Liability