study guide

Question 1

An internet phenomenon, where strangers learn about a business online and then decide whether or not to make an investment. They do not expect return on investment

Answer 1

Crowdfunding

Question 2

The amount an insurance company makes a policyholder pay as part of a claim.

Answer 2

Deductible

Question 3

Failure to repay a loan

Answer 3

Default

Question 4

The commitment to get something done

Answer 4

Determination

Question 5

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

Answer 5

Differentiated Offering

Question 6

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

Answer 6

Dividend

Question 7

A clear, concise and compelling way to describe a business or new business concept in 30 seconds.

Answer 7

Elevator Speech

Question 8

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

Answer 8

Engaging question

Question 9

funds contributed to a business. Investors contribute capital to a business and expect a return on their investments when the business succeeds.

Answer 9

Equity or (Capital)

Question 10

understanding how individuals and businesses earn money and what to spend money on.

Answer 10

Financial Literacy

Question 11

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.

Answer 11

Fiscal Year

Question 12

Cost that do not vary based on the units sold by the enterprise

Answer 12

Fixed Cost

Question 13

A computer portal offered by Louisiana Sectary of state that enables entrepreneurs to go to a single source to learn which forms they need to file, the forms required by the sectary of state, and to determine which other government agencies they may need to interact with.

Answer 13

Geaux BIZ Portal

Question 14

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.

Answer 14

Grit

Question 15

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.

Answer 15

Guarantor

Question 16

A special account where individuals can deposit retirement funds that grow tax-deferred until they withdraw them after they retire. Advantages- there are no annual income taxes on any dividends or profitable sales the IRA makes.

Answer 16

Individual Retirement Account (IRA)

Question 17

Debt owed to someone that is paid monthly. EX. Your car or truck payment, your credit card, and your mortgage are all paid in monthly installment payments.

Answer 17

Installment Payment

Question 18

the amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss.

Answer 18

Insurance Claim

Question 19

• the individual or business that purchases an insurance policy for various types of protection.

Answer 19

Insurance Policyholder

Question 20

The amount a policyholder pays for an insurance company

Answer 20

Insurance Premium

Question 21

Non- physical assets created by individuals or companies that hold the exclusive legal rights to commercialize. Copyright, patent, Trademark

Answer 21

Intellectual Property

Question 22

The federal agency that collects federal taxes and perform audits.

Answer 22

Internal Revenue Service (IRS)

Question 23

• The merchandise that a company sells to customers

Answer 23

Inventory

Question 24

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

Answer 24

Judgement

Question 25

An obligation you have to pay someone else money. Also called a debt or loan.

Answer 25

Liability