entrepreneurship

Question 1

Individuals that make small invensments

Answer 1

angel investors

Question 2

something of value

Answer 2

assests

Question 3

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

Answer 3

bank loan

Question 4

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.

Answer 4

bond

Question 5

A determination of how many units are needed to sell in order to pay for all fixed.

Answer 5

Breakeven analysis

Question 6

A company that provides individuals and companies with access to financial markets.

Answer 6

Brokerage

Question 7

Proper business behavior beyond complying with legal requirements.

Answer 7

Business ethics

Question 8

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 8

Capital expenditures

Question 9

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

Answer 9

cash flow

Question 10

cash publicly traded stocks, government bonds or corporate bonds that can be quickly turned into cash. Cash instruments can be turned into cash at values that are predictable and available to all holders of the cash instrument.

Answer 10

cash instruments

Question 11

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

Answer 11

collateral

Question 12

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 background

Answer 12

comfort engaging with strangers

Question 13

money earned when something is sold.

Answer 13

Commision

Question 14

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

Answer 14

Confidentiality

Question 15

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.

Answer 15

Conflict of Interest

Question 16

unit price minus cost of goods sold.

Answer 16

Contribution Margin

Question 17

actions entrepreneurs and companies take that go beyond their financial self interest.

Answer 17

Corporate Social Responsibility

Question 18

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.

Answer 18

Accounts Payable

Question 19

Money owed by a customer to a company

Answer 19

Accounts Receivable