micro enterprise study guide 1

Question 1

means small business

Answer 1

micro enterprise

Question 2

what are the five steps to obtaining a micro enterprise certification ?

Answer 2

1. Self assessment
2. Self assessment presentation
3. online credit
4. register a company 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

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

Answer 4

Nepris

Question 5

money owed by a company to a supplier.

Answer 5

Accounts Payable

Question 6

is this an example of accounts payable true or false ? I purchase $ 10,000 of beauty supplies from a distributor to put in my store. The distributor gives me 60 days to pay it back. The $10,000 is now in the accounts payable for my company meaning that I owe someone.

Answer 6

True

Question 7

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

Answer 7

Angel investor

Question 8

something of value. Anything owned.

Answer 8

Asset

Question 9

A house, a diamond ring. A security is a financial asset – a piece of paper that represents ownership in something and is worth money

Answer 9

Example of a asset

Question 10

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, before, bank loans are less expensive than online of credit

Answer 10

Bank Loan

Question 11

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 11

Bond

Question 12

money owed by a customer to a company

Answer 12

Accounts Recievable

Question 13

you purchased a new computer from me for 1,000. You put down 200 and signed a contract agreeing to pay the remaining $800 within the next 30 days. That 800 goes into accounts receivable in my company meaning someone owes my company$ 800.

Answer 13

Example of Accounts Receivable

Question 14

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

Answer 14

Break-even Analysis

Question 15

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

Answer 15

Brokerage

Question 16

you buy stocks and bond for a broker.

Answer 16

Example of Brokerage

Question 17

Proper business behavior beyond complying with legal requirements

Answer 17

Business Ethics

Question 18

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 18

Capital or (equality)

Question 19

expenditures on equipment the business will use for many years

Answer 19

Capital expenditures

Question 20

Total revenues minus total cost one- times expenditures (called “capital expenditures”) on equipment that will be used for many years

Answer 20

Cash Flow

Question 21

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 21

Cash Instruments

Question 22

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 22

Example of Cash Instruments

Question 23

Equipment, inventory or other goods that are pledged to the banking incase the company cannot make a loan payment.

Answer 23

Collateral

Question 24

The ability to interact in a friendly and effectively 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 24

Comfort Engaging with Strangers

Question 25

money earned when something is sold

Answer 25

Commission

Question 26

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

Answer 26

Confidentiality

Question 27

A situation in which and individual might take an action to his/her advantage that would be to the disadvantage of a person or company that believes that individual is serving them.

Answer 27

Conflict of Interest

Question 28

A customer tells a supplier in confidence that they are buying 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 immediate

Answer 28

Example of Conflict of interest

Question 29

price minus cost of goods sold

Answer 29

Contribution Margin

Question 30

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

Answer 30

Corporate Social Responsibility

Question 31

A local pet store makes a large donation to an animal shelter

Answer 31

Example of Corporate Social Responsibility

Question 32

a corporation is a person in the eyes of the law. The corporation is taxed for profits and is liable for any debts or judgments.

Answer 32

Corporation

Question 33

Corporations are owned by

Answer 33

Shareholders People of other corporations

Question 34

Costs that make up one unit of what you sell. These can be labor costs as well as material cost.

Answer 34

Costs of Goods Sold

Question 35

when you sell a hat, there variable cost includes: the hats material and the labor cost required to make the hat

Answer 35

Example of Costs of Goods Sold

Question 36

a loss that an insurance company will reimburse a policy holder for in the event of a claim.

Answer 36

Covered Loss

Question 37

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

Answer 37

Credit or debt

Question 38

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

Answer 38

Credit Worthiness