Micro-Enterprise Study Guide 1 Flashcards
Means small business
micro-enterprise
What are the five steps of obtaining a Micro- Enterprise certification
- Self Assessment
- Self Assessment presentation
- Micro- Enterprise credit application
- Company registration with GeauxBiz
- Credential online test
Baton Rouge Area Chamber are the creators of the micro-enterprise certification
BRAC
_____ businesses provide the majority of employment in Louisiana and the US.
Small
online program that provides unlimited access to industry experts in all careers
Nepris
money owed by a company to a supplier
Accounts payable
money owed by a customer to a company
accounts recievable
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.
angel investors
something of value
assets
debt from a bank
bank loan
a loan
bond
a determination of how many units are needed to sell in order to pay for all fixed costs
break even analysis
a company that provides individuals and companies with access to financial markets
brokerage
proper business behavior beyond complying with legal requirements
business ethics
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
Capital (or Equity)
expenditures on employment the business will use for many years
Capital Expenditures
total revenue minus total cost minus one time expenditures (called “capital expenditures”) on equipment that will be used for many years
Cash flow
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
cash instrument
equipment, inventory or other goods that are pleged to the bank in case the company cannot make a loan payment.
collateral
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
comfort engaging with strangers
money earned when something is sold
commission
a promise to keep information you learn secret. This promise is often formalized by signing a Non-disclosure Agreement (or NDA)
confidentiality
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
conflict of interest
price minus cost of goods sold
contribution margin
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
corporate social responsibility
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)
corporation
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.
cost of goods sold
a loss that an insurance company will reimburse a policyholder for in the event of a claim
covered loss
funds lent to a business with an agreement that the business will repay the lender with interest
credit (or debt)
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.
Credit Worthiness
