Micro-Enterprise Study Guide One

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. Micro-Enterprise Credit Application
4. Company Registration
5. Credential Online Test

Question 3

do small or large businesses provide the majority of employment in Louisiana and U.S.

Answer 3

small businesses

Question 4

Nepris

Answer 4

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

Question 5

Account Payable

Answer 5

money owed by a company to a supplier. Ex. I purchase $10,000 of beauty supplies from a distributor to put in my store. The distributor gives me 60 days to pay back.

Question 6

Accounts Receivable

Answer 6

Money owed by a customer to a company

Question 7

Angel Investors

Answer 7

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 wants to see them succeed.

Question 8

Assets

Answer 8

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

Question 9

Bank Loan

Answer 9

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, bank loans are less expensive than online line of credit.

Question 10

Bond

Answer 10

a loan. A bond is a security that inventors 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.

Question 11

Breakeven Analysis

Answer 11

A determination of how many units are needed to sell in order to pay all fixed costs.

Question 12

Brokerage

Answer 12

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

Question 13

Business Ethics

Answer 13

Proper business behavior beyond complying with legal requirements.

Question 14

Capital (or Equity)

Answer 14

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 15

Capital Expenditures

Answer 15

Expenditures on equipment the business will use for many years.

Question 16

Cash Flow

Answer 16

Total Revenues minus Total cost minus one-time expenditures (called “capital expenditures”) on equipment that will be used for many years.

Question 17

Cash Instruments

Answer 17

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.

Question 18

14. Collateral

Answer 18

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

Question 19

Comfort Engaging with Strangers

Answer 19

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.

Question 20

Commission

Answer 20

money earned when something is sold.

Question 21

17. Confidentiality

Answer 21

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