micro enterprise 2

Question 1

1. Crowdfunding

Answer 1

An internet phenomenon, where strangers learn about a business online and then decide whether or not to make an investment. Crowdfunding investors are usually “fans” of an owner, but they do not expect a return on investment.

Question 2

2. Deductible

Answer 2

The amount am insurance company makes a policy holder pay as part of any claim.

Question 3

3. Default

Answer 3

failure to repay a loan

Question 4

4. Determination

Answer 4

the commitment to get something done

Question 5

5. Differentiated offering

Answer 5

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

Question 6

6. Dividend

Answer 6

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.

Question 7

7. Elevator speech

Answer 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.

Question 8

8. Engaging question

Answer 8

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

Question 9

9. Equity or capital

Answer 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.

Question 10

10. Financial literacy

Answer 10

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

Question 11

11. Fiscal year

Answer 11

12-month period a company uses to report financial results

Question 12

12. Fixed costs

Answer 12

costs that do not vary based on the units sold by the enterprise

Question 13

13. Geaux BIZ portal

Answer 13

computer portal offered by the La 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, and to determine which other govt. agencies they may need to interact with.

Question 14

14. Grit

Answer 14

an individual’s self-commitment to overcome obstacles to achieve long term goals

Question 15

15. Guarantor

Answer 15

a credit-worthy individual or business with sufficient liquidity that promises to repay a loan in the event the debt holder can’t make a required payment

Question 16

16. IRA individual retirement account

Answer 16

special account where you can deposit retirement funds that can grow tax deferred until the withdraw them after they retire. If an individual withdraws money from an IRA before they retire they must pay the IRS significant penalties for early withdrawal.

Question 17

17. Installment payment

Answer 17

debt owed to someone that is paid monthly

Question 18

18. insurance claim

Answer 18

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

Question 19

19. insurance policy holder

Answer 19

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

Question 20

20. insurance premium

Answer 20

the amount a policyholder pays for an insurance policy

Question 21

21. intellectual property

Answer 21

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

Question 22

22. copyright

Answer 22

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

Question 23

23. patent

Answer 23

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

Question 24

24. trademark

Answer 24

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

Question 25

25. internal revenue service (IRS)

Answer 25

the federal agency that collects federal taxes and performs audits

Question 26

26. inventory

Answer 26

the merchandise that a company sells to a customer

Question 27

27. judgement

Answer 27

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

Question 28

28. liability

Answer 28

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