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Question 1

– An investment with money; a “financial instrument” indicating ownership. Ex stock in companies like Apple or McDonald’s that are traded in the stock market is security.

Answer 1

1. Securities

Question 2

An investment vehicle. Different types of securities include stocks, bonds, and mutual funds.

Answer 2

2. Security

Question 3

The ability to pursue what you think is right or necessary to do despite temptations temptations to quit.

Answer 3

3. Self-Discipline

Question 4

The ability to pursue a task without being told to by someone else. Individuals who are self-motivated can find the strength to start and then finish a task without giving up.

Answer 4

4. Self-Motivation

Question 5

Costs that vary somewhat based on the number of units you sell. Ex. If your enterprise buys an IPhone you won’t have to pay again for apps you already own.

Answer 5

5. Semi-Variable Costs

Question 6

– An individual that owns a company. Sole proprietors are taxed on the profits of the company, and personally liable for any debts or judgements against the company.

Answer 6

6. Sole Proprietorship

Question 7

One of the equal parts into which a company’s capital is divided, entitling the holder to a proportion of the profits. Share refers to the ownership certificates of a particular company.

Answer 7

7. Share

Question 8

An individual or company that owns shares in a company.

Answer 8

8. Shareholders

Question 9

All people or companies associated with an enterprise. Stakeholders include internal stakeholders (employees and shareholders/owners) as well as external stakeholders (customers, suppliers, community members).

Answer 9

9. Stakeholders

Question 10

– Shares of ownership in a company. Stock is a general term of ownership in any company. Ex if investors say they own stocks they are generally referring to their overall ownership in one or more companies

Answer 10

10. Stocks

Question 11

A company that provides a good or service to another company.

Answer 11

11. Supplier

Question 12

The hard work a small business owner puts forming, founding, and operating his/her business. Small business owners typically work very long hours. Sweat equity is as important as any capital but it’s not a cash investment.

Answer 12

12. Sweet Equity

Question 13

The exact customers and market sector the business intends to serve.

Answer 13

13. Target Market

Question 14

Working with others to address a challenge. Individuals using their skill in harmony with others to complete a task. Effective teamwork involves trust among team members. Collaboration and cooperation.

Answer 14

14. Teamwork

Question 15

Fixed cost plus variable cost.

Answer 15

15. Total Cost

Question 16

Units times price

Answer 16

16. Total revenue

Question 17

• The practice of operating openly and communicating fully, providing stakeholders with a clear understanding of how your enterprise operates.

Answer 17

17. Transparency-

Question 18

Assets that are not already pledged as a guarantee to repay another loan.

Answer 18

18. Unencumbered

Question 19

Units refer to the “things” the company sells. Retail stores sell many different types of units. Service businesses can sell many different services

Answer 19

19. Units

Question 20

Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment. Unsecured debt is riskier for the bank or online lending company – therefor the lending party charges a higher interest rate unsecured debt than it does on secured debt.

Answer 20

20. Unsecured Debt

Question 21

• Costs that vary based on the units sold your enterprise.

Answer 21

21. Variable Cost