microenterprise test 2

Question 1

a person in the eyes of the law. the corporation is taxed for profits and is liable for any debts or judgments. corporations are owned by shareholders.

Answer 1

corporation

Question 2

costs that make up one unit of what you sell. these could be labor costs as well as material costs.

Answer 2

cost of goods sold

Question 3

a loss that an insurance company will reimburse a policyholder for in the event of a claim.

Answer 3

covered loss

Question 4

funds lent to a business with an agreement that the business will repay the lender with interest.

Answer 4

credit (or debit)

Question 5

a person or a business with a strong credit score and the financial resources that make it likely they will be able to repay any loan.

Answer 5

credit worthiness

Question 6

an internment phenomenon where strangers learn about a business online and then decide whether or not to make an investment crowd funding investors are “typically fans” of an owner, but they expect a return an investment

Answer 6

crowd funding

Question 7

the amount an insurance company makes a policyholder as part of any claim.

Answer 7

deductible

Question 8

a failure to repay a loan.

Answer 8

default

Question 9

the commitment to get something done

Answer 9

determination

Question 10

distinguishing a product or service “different than anything else” attracting customers, generating sales and serving as the foundation for a thriving business.

Answer 10

differentiated offering

Question 11

money paid by a customer to a person who owns stock in that company. dividends are optional- many companies do not pay dividends.

Answer 11

dividend

Question 12

a clear, concise and competing way to describe a business or new business concept in 30 seconds, a differentiating vision to encourage potential investors or employees to learn more.

Answer 12

elevator speech

Question 13

open ended questions that prompt more than a “yes” or “no” answer.

Answer 13

engaging question

Question 14

funds contributed by investors to a business

Answer 14

equity (or capital)

Question 15

understanding how individuals and business earn money and what they spend money on

Answer 15

financial literacy

Question 16

12 month period a company uses to report financial results

Answer 16

fiscal year

Question 17

costs that do not vary based on the units sold by the enterprise.

Answer 17

fixed costs

Question 18

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 forms required by the secratory of state

Answer 18

geaux biz portal

Question 19

an individuals self- commitment to overcome obstacles to achieve long-term goals

Answer 19

grit

Question 20

a credit worthy individual or business with sufficient liquidity that promises to repay a loan in the event that the debit holder cant make a required payment

Answer 20

guarantor

Question 21

a special account where individuals can deposit retirement funds that can grow tax-differed until they withdraw them after they retire

Answer 21

individual retirement account (IRA)

Question 22

debt owed to someone that is paid monthly

Answer 22

installment payment

Question 23

amount an insurance policy holder receives from the insurance company to reimburse the policy holder for a covered loss

Answer 23

insurance claim

Question 24

individual or business that purchases an insurance company for various types of protection

Answer 24

insurance policy holder

Question 25

amount a policy pays for an insurance policy

Answer 25

insurance premium

Question 26

non-physical assets created by individuals or companies that hold the exclusive legal right to communicate

Answer 26

intellectual property

Question 27

give the author the side right to benefit economically from what his/her wrote

Answer 27

copyright

Question 28

gives the inventor the sole right to benefit commercially from his/her invention

Answer 28

patent

Question 29

gives the registering individual or company the sole right to benefit from a brand or image he/she created

Answer 29

trademark

Question 30

the federal agency that collects federal taxes and performs audits

Answer 30

internal revenue service (IRS)

Question 31

merchandise that a company sells to customers

Answer 31

inventory

Question 32

legal decision requiring a person or company to pay another person or company

Answer 32

judgement

Question 33

obligation you have to pay someone else money. also called debt or loan

Answer 33

liability