Micro-Enterprise Study Guide 1

Question 1

Means small business

Answer 1

micro-enterprise

Question 2

What are the five steps of obtaining a Micro- Enterprise certification

Answer 2

1. Self Assessment
2. Self Assessment presentation
3. Micro- Enterprise credit application
4. Company registration with GeauxBiz
5. Credential online test

Question 3

Baton Rouge Area Chamber are the creators of the micro-enterprise certification

Answer 3

BRAC

Question 4

_____ businesses provide the majority of employment in Louisiana and the US.

Answer 4

Small

Question 5

online program that provides unlimited access to industry experts in all careers

Answer 5

Nepris

Question 6

money owed by a company to a supplier

Answer 6

Accounts payable

Question 7

money owed by a customer to a company

Answer 7

accounts recievable

Question 8

individuals that make small investments in an enterprise or to support an entrepreneur where they do not expect an immediate or large return on the investment. They are typically friends and family who know the business owner and want to see them succeed.

Answer 8

angel investors

Question 9

something of value

Answer 9

assets

Question 10

debt from a bank

Answer 10

bank loan

Question 11

a loan

Answer 11

bond

Question 12

a determination of how many units are needed to sell in order to pay for all fixed costs

Answer 12

break even analysis

Question 13

a company that provides individuals and companies with access to financial markets

Answer 13

brokerage

Question 14

proper business behavior beyond complying with legal requirements

Answer 14

business ethics

Question 15

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 15

Capital (or Equity)

Question 16

expenditures on employment the business will use for many years

Answer 16

Capital Expenditures

Question 17

total revenue minus total cost minus one time expenditures (called “capital expenditures”) on equipment that will be used for many years

Answer 17

Cash flow

Question 18

cash, publicly traded stocks, government bonds, or corporate bonds that can be turned quickly into cash. Cash instruments can be turned into cash at values that are predictable and available to all holders of the cash instrument. Ex. Apple stock is a cash instrument because it can be sold and converted to cash immediately and the amount that anyone would get for that stock would be the same

Answer 18

cash instrument

Question 19

equipment, inventory or other goods that are pleged to the bank in case the company cannot make a loan payment.

Answer 19

collateral

Question 20

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, or background

Answer 20

comfort engaging with strangers

Question 21

money earned when something is sold

Answer 21

commission

Question 22

a promise to keep information you learn secret. This promise is often formalized by signing a Non-disclosure Agreement (or NDA)

Answer 22

confidentiality

Question 23

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. EX. a customer tells a supplier in confidence that they are buying a large quantity of a specific product to advertise a major sale in two weeks. It would be a conflict of interest for that supplier to go to the competitor stores and use this information to get them to buy more of this product and put it on sale immediately

Answer 23

conflict of interest

Question 24

price minus cost of goods sold

Answer 24

contribution margin

Question 25

actions entrepreneurs and companies take that go beyond their financial self interest. Ex. a local pet store makes a large donation to an animal shelter

Answer 25

corporate social responsibility

Question 26

a corporation is a person in the eyes of the law. The corporation is taxed for project and is liable for any debts or judgments. Corporations are owned by shareholders. (individuals or other corporations)

Answer 26

corporation

Question 27

costs that makeup one unit of what you sell. These can be labor costs as well as material costs. Ex. when you sell a hat, the variable cost includes: the hat’s material and the labor cost required to make the hat.

Answer 27

cost of goods sold

Question 28

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

Answer 28

covered loss

Question 29

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

Answer 29

credit (or debt)

Question 30

a person or business with a strong credit score and the financial resources that make it likely they will be able to repay any loan.

Answer 30

Credit Worthiness