Micro-Enterprise Test Four Flashcards
Securities
An investment worth money; a “financial instrument” indicating ownership. Ex. Stock in companies like Apple or McDonald’s that are traded in the stock market is security.
Security
An investment vehicle. Different types of securities include stocks, bonds, and mutual funds.
Self-Discipline
The ability to pursue what you think is right or necessary to do despite temptations to quit.
Self-Motivation
The ability to pursue a task without being told to by someone else. Individuals who are self-motivated can find the strength to start and then finish a task without giving up.
Semi-Variable Costs
Costs that vary somewhat based on the number of units you sell. Ex. If your enterprise buys an iPhone you won’t have to pay again for apps you already own.
Sole Proprietorship
An Individual that owns a company. Sole proprietors are taxed on the profits of the company, and are personally liable for any debts or judgments against the company.
Share
One of the equal parts into which a company’s capital is divided, entitling the holder to a proportion of the profits. Share refers to the ownership certificates of a particular company.
Shareholder
An individual or company that own shares in a company.
Stakeholders
All people or companies associated with an enterprise. Stakeholders include internal stakeholders (employees and shareholders/owners) as well as external stakeholders (customers, suppliers, community members).
Stocks
Shares of ownership in a company.
Supplier
A company that provides a good or service to another company.
Sweat Equity
The hard work a small business owner puts into forming, founding, and operating his/her business. Small business owners typically work very long hours. Sweat equity is as important as any capital but it’s not a cash investment.
Target market
The exact customers and market sector the business intends to serve.
Teamwork
Working with others to address a challenge. Individuals using their skills in harmony with others to complete a task. Effective teamwork involves trust among team members. Collaboration and cooperation.
Total Costs
Fixed cost plus variable cost.
Total Revenue
Units times prices
Transparency
The practice of operating openly and communicating fully, providing stakeholders with a clear understanding of how your enterprise operates.
Unencumbered
Assets that are not already pledged as a guarantee to repay another loan.
Units
Units refer to the “things” the company sells. Retail stores sell many different types of units. Service businesses can sell many different services.
Unsecured Debt
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. Unsecured debt is riskier for the bank or online lending company – therefore the lending party charges a higher interest rate on unsecured debt than it does on secured debt.
Variable Cost
Costs that vary based on the units sold by your enterprise.
To obtain the regional micro-enterprise credential you must complete five components.
- Self-assessment - complete two-part self- assessment.
- Self-assessment presentation – presentation to an unfamiliar workplace adult.
- Micro-Enterprise Credit Application – complete online credit application.
- Company Registration – register a fictitious business on GeauxBiz student portal.
- Credential Online Test – online certification exam.
