Micro-Enterprise test 4

Question 1

an investment worth money; a “financial instrument” indicating ownership

Answer 1

securities

Question 2

an instrument vehicle. different types of ______ include stocks, bonds, and mutual funds

Answer 2

security

Question 3

the ability to pursue what you think is right or necessary to do despite temptations to quit

Answer 3

self-discipline

Question 4

the ability to pursue a task without being told by someone else. Individuals who are self- motivated can find the strength to start and then finish a task without giving up

Answer 4

self-motivation

Question 5

costs that vary somewhat based on the number of units you sell

Answer 5

semi-variable cost

Question 6

an individual that owns a company. ___________ are taxed on the profits of the company, and are personally liable for any debts or judgements against the company

Answer 6

sole proprietorship

Question 7

one of the equal parts into which a company’s capital is divided, entitling the holder to a proportion of the profits

Answer 7

share

Question 8

an individual or company that owns shares in a company

Answer 8

shareholder

Question 9

all people or companies associated with an enterprise. Stockholders include internal ________ (employees and shareholders/owners) as well as external ________ (customers, suppliers, community members.

Answer 9

stakeholders

Question 10

a company that provides a good or service to another company

Answer 10

supplier

Question 11

the hard work a small business owner puts into forming, founding, and operating his/her business. Small business owners typically work very long hours. ____ is as important as any capital but it’s not a cash investment

Answer 11

sweat equity

Question 12

the exact customers and market sector the business intends to serve

Answer 12

target market

Question 13

working with others to address a challenge. Individuals using their skills in harmony with others to complete a task. Effective _______ involves trust among trust members. Collaboration and cooperation

Answer 13

teamwork

Question 14

fixed cost plus variable cost

Answer 14

total costs

Question 15

Units time price

Answer 15

total revenue

Question 16

the practice of operating openly and communicating fully, providing stakeholders with a clear understanding of how your enterprise operates

Answer 16

transparency

Question 17

assets that are not already pledged as a guarantee to repay another loan

Answer 17

unencumbered

Question 18

____ refer to the “things” the company sells. Retail stores sell many different types of _____. Service businesses can sell many different services

Answer 18

units

Question 19

debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment. ______ ___ is riskier for the bank or online lending company- therefore the lending party charges a higher interest rate on _____ than it does on secured debt

Answer 19

unsecured debt

Question 20

costs that vary based on the units sold by your enterprise.

Answer 20

variable cost

Question 21

shares of ownership in a company

Answer 21

stocks