Micro-Enterprise Test 2 Flashcards
an interest phenomenon, where strangers learn about a business online and then decide whether or not to make an investment. ______ investors are typically “fans” of an owner, but they do expect a return on investment
crowdfunding
the amount an insurance company makes a policyholder pay as part of any claim. EX. if your auto insurance has a $500 deductible and your car had damage of $2000, you will pay the first $500 and your insurance will pay the remaining $1500.
deductible
failure to repay a loan
default
the commitment to get something done
determination
distinguishing a product or service “different than anything else” attracting customers, generating sales and serving as the foundation for a thriving business
differentiated offering
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
dividend
a clear, concise and compelling way to describe a business or new business concept in 30 seconds; a differentiating vision to encourage potential investors
elevator speech
open ended questions that prompt more than a “yes” or “no” answer
engaging question
funds contributed by investors to a business. Investors contribute capital to a business because the expect a significant return on their investment when business succeeds
equity (capital)
understanding how individuals and businesses earn money and what they spend money on.
financial literacy
the 12-month period a company uses to report financial results. A fiscal year can be the same as a calendar year or it can be any 12-month period that makes sense
fiscal year
costs that do no vary based on the units sold by the enterprise. EX. a lease for a building-the cost of the lease does not change according to how many units of your product is sold
fixed costs
a computer portal offered by the Louisiana 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 government agencies that may need to interact with/
Geaux Biz Portal
an individual’s self-commitment to overcome obstacles to achieve long-term goals. The ability to keep pursuing your dream despite challenges and defeats. Perseverance, resilience, and backbone.
grit
- A credit-worthy individual or business with sufficient liquidity that promises to repay a loan in the event that the debtholder cannot make a required payment
guarantor
a special account where individuals can deposit retirement funds that can grow tax-deferred until they withdraw them after they retire. Advantages- there are no annual income taxes on any dividends or profitable sales that an IRA makes. The money remains in the account and only gets taxed when the individual retires. If an individual withdraws money from an IRA before he/she retires they are forced to pay the IRS significant penalties for early withdrawal
Individual Retirement Account (IRA)
debt owed to someone that is paid monthly. EX. Your car or truck payment, your credit cards, and your mortgage are all paid in monthly installment payments.
installment payment
the amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss.
insurance claim
The individual or business that purchases an insurance policy for various types of protection.
insurance policyholder
the amount a policyholder pays for an insurance policy
insurance premium
Non-physical assets created by individuals or companies that hold the exclusive legal right to commercialize.
A. Copyright- give the author the sole right to benefit economically from what he/she wrote.
B. Patent- gives the inventor the sole right to benefit commercially from his/her invention
C. Trademark- gives the registering individual or company the sole right to benefit from a brand or image he/she created.
intellectual property
The federal agency that collects federal taxes and performs audits
Internal Revenue Service (IRS)
the merchandise that a company sells to customers
inventory
a legal decision requiring a person or company to pay another person or company
judgement
an obligation you have to pay someone else money. Also called a debt or loan.
liability
