Test 1 Flashcards
money owed by a company to a supplier.
Accounts Payable
money owed by a customer to a company
Accounts Renewable
Individuals that make small investments to an enterprise or to support and entrepreneur where they do not expect an immediate or large return on the investment. They are typically friends and family who know the business owner and want to see them succeed.
Angel Investors
Something of value. Any owned.
Assets
debt from a bank. Banks require much more information from potential borrowers, and take more time to make a lending decision based on a great deal of analysis. Therefore, bank loans are less expensive than online lines of credit.
Bank Loan
A loan. A bond is a security that investors buy and sell, that represents a legal obligation from the company issuing the bond that will repay the funds they received when they issued the bond.
Bond
A determination of how many units are needed to sell in order to pay for all fixed costs.
Breakeven Analysis
A company that provides individuals and companies with access to financial markets.
Brokerage
Proper business behavior beyond complying with legal requirements.
Business Ethics
Funds contributed by investors to a business. Investors contribute capital to a business because they expect a significant return on their investment when the business succeeds.
Capital (or Equity)
Expenditures on equipment the business will use for many years.
Capital Expenditures
Total revenues minus total cost minus one-time expenditures.
Cash Flow
Cash, publicly traded stocks, government bonds, or cooperate bonds that can be quickly turned into cash. Cash investments can be turned into cash at values that are predictable and available to all holders of the cash instrument.
Cash instruments
Equipment, inventory, or other goods that are pledged to the bank in the case the company cannot make a loan payment.
Collateral
The ability to interact in a friendly and effective way with unfamiliar people. The ability to seem welcoming and easy to talk to, even with people who are different in age, appearance or background.
Comfort Engaging with Strangers
Money earned when something is sold.
Commission
a promise to keep information you learn secret. The promise is often formalized by signing a Non-Disclosure Agreement (or NDA)
Confidentiality
A situation in which an individual might take an action to his/her advantage that would be to the disadvantage of a person or company that believes this individual is serving them.
Conflict of Interest
unit price minus cost of goods sold.
Contribution Margin
Actions entrepreneurs and companies take that go beyond their financial self-interest.
Cooperate Social Responsibility
A cooperation is a person in the eyes of the law. The cooperation is taxed for profits and is liable for any debts or judgement Cooperations are owned by shareholders. (individuals or other cooperations)
Cooperation
Costs that make up one unit of what you sell. These can be labor costs as well as material costs.
Cost of Goods Sold
A loss that an insurance company will reimburse a policyholder for in the event of a claim.
Covered Loss
Funds lent to a business with an agreement that the business will repay the lender with interest.
Credit (or debt)
A person or business with a strong credit score and the financial resources that make it likely they will be able to repay any loan.
Credit-Worthiness
What are the five components you must complete to obtain the regional micro-enterprise certification?
Self-Assessment, Self-Assessment Presentation, Micro-Enterprise Credit Application, Company Registration on Geaux Biz student portal, Online credential test.
Small Business
Micro-Enterprise
Provides the majority of employment in Louisiana and the US
Small Businesses
What is BRAC?
Baton Rouge Area Chamber and creator of the Micro-Enterprise certification.
What is the online program that provides unlimited access to industry experts in all careers?
Nepris
