Micro-Enterprise Test Four

Question 1

Securities

Answer 1

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.

Question 2

Security

Answer 2

An investment vehicle. Different types of securities include stocks, bonds, and mutual funds.

Question 3

Self-Discipline

Answer 3

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

Question 4

Self-Motivation

Answer 4

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.

Question 5

Semi-Variable Costs

Answer 5

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.

Question 6

Sole Proprietorship

Answer 6

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.

Question 7

Share

Answer 7

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.

Question 8

Shareholder

Answer 8

An individual or company that own shares in a company.

Question 9

Stakeholders

Answer 9

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).

Question 10

Stocks

Answer 10

Shares of ownership in a company.

Question 11

Supplier

Answer 11

A company that provides a good or service to another company.

Question 12

Sweat Equity

Answer 12

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.

Question 13

Target market

Answer 13

The exact customers and market sector the business intends to serve.

Question 14

Teamwork

Answer 14

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.

Question 15

Total Costs

Answer 15

Fixed cost plus variable cost.

Question 16

Total Revenue

Answer 16

Units times prices

Question 17

Transparency

Answer 17

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

Question 18

Unencumbered

Answer 18

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

Question 19

Units

Answer 19

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

Question 20

Unsecured Debt

Answer 20

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.

Question 21

Variable Cost

Answer 21

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

Question 22

To obtain the regional micro-enterprise credential you must complete five components.

Answer 22

1. Self-assessment - complete two-part self- assessment.
2. Self-assessment presentation – presentation to an unfamiliar workplace adult.
3. Micro-Enterprise Credit Application – complete online credit application.
4. Company Registration – register a fictitious business on GeauxBiz student portal.
5. Credential Online Test – online certification exam.