test 1

Question 1

money owed by a company to a suppler.

Answer 1

accounts payable

Question 2

money owed by a customer to a company

Answer 2

accounts receivable

Question 3

individuals that make small investments in a enterprise or support an 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 wont see them succeed

Answer 3

angel investors

Question 4

something of value anything owned

Answer 4

assets

Question 5

debt from a bank. Banks require much more information from potential borrowers and take more time to make a lending decisions based on a great deal of analysis. Therefore bank loans are less expensive then online lines of credit

Answer 5

bank loan

Question 6

a loan. a bond is a security that investors buy and sell that represents a legal obligation from the company issuing the bond that they will repay the funds that received when they issue the bond

Answer 6

bond

Question 7

a determination of how many units are needed to sell in order to pay for all fixed costs.

Answer 7

breakeven analysis

Question 8

a company tat provides individuals and companies with access to financial markets

Answer 8

brokeage

Question 9

proper business behavior beyond complying with legal requirements

Answer 9

business ethics

Question 10

funds contributed by investors to a business b/c they expect a significant return on other investments when the business successes’

Answer 10

capital

Question 11

expenditures on equipment the business will use for many years

Answer 11

capital expenditures

Question 12

one time expenditures called capital expenditures on equipment that will be used for many years

Answer 12

cash flow

Question 13

cash publicly traded stocks government bonds or cooperate bonds that can be quickly turned into cash. cash instruments can be turned into cash at values that are predictable and available to all holders of the cash instrument

Answer 13

cash instruments

Question 14

equipment inventory or other goods that one pledged to the bank in the case the company cannot make a loan payment

Answer 14

collateral

Question 15

the ability to interact in a friendly and effective way with unfamiliar people the ability to seem unwelcoming and easy to talk to even with people who are different in age appearance or background

Answer 15

comfort engaging with strangers

Question 16

money earned when something is odd

Answer 16

commission

Question 17

a promise to keep information you learn secret this promise is often for malized by singing a non discloser agreement

Answer 17

confidentiality

Question 18

a situation in which an individual might take an action to his/her advantage that would be to the discharges of a person

Answer 18

conflict of interest

Question 19

unit price minus cost of goods sold

Answer 19

contribution

Question 20

actions entrepreneurs and companies take that go beyond their financial self interest

Answer 20

corporate

Question 21

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

Answer 21

Corporation

Question 22

Cost that make up one unit of what you sell.

Answer 22

Cost of Goods Sold

Question 23

A loss that an insurance company will reimburse a policy holder for the event of a claim

Answer 23

covered loss

Question 24

funds tent to a business will repay the lender with interest

Answer 24

credit / debt

Question 25

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

Answer 25

credit worthiness