micro-enterprise (2)

Question 1

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 on investment.

Answer 1

Crowdfunding

Question 2

the amount of an insurance company makes a policyholder pays as part of any claim. Ex. If your auto insurance has a $500 deductible and your car has damages of $2000, you will pay the first $500 and your insurance will pay the remaining $1500.

Answer 2

Deductible

Question 3

failure to repay a loan

Answer 3

Default

Question 4

the commitment to get something done.

Answer 4

Determination

Question 5

distinguish a product or service “different than anything else” attracting customers, generating sales and serving as the foundation for a thriving business.

Answer 5

Differentiate Offering

Question 6

money paid by a company to a person who owns stock in the company. Dividends are optional- many companies do not pay dividends. Dividends are typically paid every three months.

Answer 6

Dividend

Question 7

a clear, concise and compelling way to describe a business or new business concept in 30 seconds; a differentiating vision to encourage potential investors or employees to learn more.

Answer 7

Elevator Speech

Question 8

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

Answer 8

Engaging Question

Question 9

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 9

Equity (or Capital)-

Question 10

understanding how individuals and businesses earn money and what they spend money on.

Answer 10

Financial Literacy

Question 11

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 11

Fiscal Year

Question 12

costs that do not vary based on the units sold by the enterprise. Ex. A lease for a building – the cost of the lease does not change according to how many units of your product is sold.

Answer 12

Fixed Costs

Question 13

a computer portal offered by a 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 a secretary of State, and to determine which other government agencies they may need to interact with.

Answer 13

Geaux BIZ Portal

Question 14

an individual’s self-commitment to overcome obstacles to achieve long-term goals. The ability to keep pursuing your dream despite challenges and defeats. Perseverance, resilience and backbone,

Answer 14

Grit

Question 15

a credit-worthy individual or business with sufficient liquidity that promise to repay a loan in the event that the debtholder can’t make a required payment.

Answer 15

Guarantor

Question 16

a special account where individuals can deposit retirement funds that can grow tax- deferred until they withdraw them after they retire. Advantages- there are no annual income taxes on any dividends or profitable sales that an IRA makes. The money remains in the account and only gets taxed when the individual retires. If an individual withdraws money from the IRA before he/she retires they are forced to pay the IRS significant penalties for early withdrawal.

Answer 16

Individual Retirement Account (IRA)-

Question 17

debt owned by someone that is paid monthly

Answer 17

installment payment

Question 18

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

Answer 18

insurance claim

Question 19

the individual or business that purchases an insurance policy for various types of protection,

Answer 19

insurance policyholder

Question 20

the amount of a policy holder pays for an insurance policy

Answer 20

insurance premium

Question 21

non-physical assets are created by individuals or companies that hold the exclusive legal right to commercialize

Answer 21

intellectual property

Question 22

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

Answer 22

copyright

Question 23

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

Answer 23

patent

Question 24

gives the registering individual or company the sole right to benefit from his/her invention

Answer 24

trademark

Question 25

the federal agency that collects federal taxed and performs audits

Answer 25

internal revenue service (IRS)

Question 26

the merchandise that a company sells to customers

Answer 26

inventory

Question 27

a legal decision requiring a person or company to put another person or company

Answer 27

judgement

Question 28

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

Answer 28

liability