Micro-Enterprise Test Three Flashcards
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.
Lien
The right to take possession of collateral until a debt is repaid.
Limited Liability Corporation (LLC)
A special type of corporation where individual owners (or members) are taxed on the profits of the company, but the corporation (not the member) is liable for debts or judgments against the company.
Line of credit
A loan that provides the borrower a maximum amount of money he/she can borrower – the borrow can then access or use that line of credit for only as much as they need at any particular time.
Overhead
costs that a business incurs that are not part of producing the goods or services its sells, but which are required to operate legally and efficiently.
Mutual Fund
An investment security that includes many different stocks purchased and held together. Investors purchase mutual funds because they are less risky than holding any individual stock.
Liquid Assets
Cash or securities that can be immediately turned into cash, which can then repay any loan amount outstanding
Louisiana Department of Revenue
The state agency that collects state taxes.
Marketing
How a business communicates to large numbers of customers, motivating them to learn more about the business and its offerings. Ex. Advertising is a marketing tool. (TV, Radio, Flyers)
Maturity
The date a loan is repaid in full.
Mentor
A person who coaches and supports an entrepreneur or a student studying to become an entrepreneur.
Mortgage
The money a person borrows to buy real estate.
Net Income
“Net” mean revenues after costs.
Obligation
A payment that is owed every month.
Online Credit
Debt obtained from a number of online companies. Borrowers need to disclose much less information about themselves to obtain online credit, and online credit companies make credit decisions much more quickly than banks. For these reasons, online credit is much more expensive for borrowers than bank loans.
Overdraft
When a company issues a check or makes a financial commitment for an amount greater than the amount the company has deposited in the bank. Also called a “bounced check”.
Own “Free and Clear”
Owning an asset without any associated debt.
Partnership
When two or more individuals own company. Partners are taxed on the profits of the company, and are personally liable for any debts or judgments against the company.
Principle
The amount of money borrowed.
Pro Forma
A Latin phrase (for the sake of form) that in business means a projection of future financial performance. A pro forma usually takes the form of a projection of future revenues and costs.
Problem Solving
The ability to find solutions to difficult or complex issues. The process of working through the details of a challenge or crisis – often under pressure – to reach a solution.
Profit – Revenues minus costs.
Revenues minus costs.
Profits per Unit
Unit price minus cost of goods sold.
Quarter
Most projections are for a year. A “quarter” means three months. Some businesses make quarterly reports.
Real Estate-
Real estate is property and the building(s) on it. Real estate can be a piece of land, or can be a home on that piece of land, or it can be a building. Real estate is typically purchased using a mortgage. The down payment the buyer makes is called the buyer’s “equity.
Secured Debt
Debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make its scheduled debt payment. A secured debt can be guaranteed by the entrepreneur or by any credit-worthy guarantor.
