Micro-Enterprise Test Two Flashcards
An internet phenomenon, where strangers learn about a business online and then decide whether or not to make an investment. Crowdfunding 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 has damages of $2,000, 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.
Divided
A clear, concise and compelling way to describe a business or new business concept in 30 seconds; a differentiating vision to encourage potential investors or employees to learn more.
Elevator Speech
Open ended questions that prompt more than a “yes” or “no” answer.
Engaging Question
Funds contributed by invested to a business. Investors contribute capital to a business because they expect a significant return on their investment when the business succeeds.
Equity (or 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
Cost that do not 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 form required by the Secretary of State, and to determine which other government agencies they 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 can’t make a required payment.
Guarantor
