Test 2 Flashcards
Crowdfunding
An internet phoneme, 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.
Deductible
The amount an insurance company, makes a policyholder pay as part of any claim.
Default
Failure to repay a loan.
Determination
The commitment to get something done.
Differentiated Offering
Distinguishing a product or service “different than anything else” attracting customers, generating sales and serving as the foundation for a thriving business.
Dividend
Money paid by a company to a person who owns stock in a company. Dividends are optional – many companies do not pay dividends. Dividends are typically paid every three months.
Elevator Speech
A clear, concise and compelling way to describe a business or new business concept 30 seconds; a differentiating vison to encourage potential investors or employees to learn more.
Engaging Question
Open ended question that prompt more than a “yes” or “no” answer.
Equity (or Capital)
Funds contributed by investors to a business. Investors contribute capital to a business because they expect significant return on their investment when the business succeeds.
Financial Literacy
Understanding how individuals and businesses earn money and what they spend on money.
Fiscal Year
The 12-month period a company uses to report financial reports. A fiscal year can be the same as a calendar year or it can be any 12-month period that makes sense.
Fixed Cost
Costs that do not vary based on the units sold by the entrepreneur.
Geaix BIZ Portal
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 Secretary of State, and to determine which other government agencies they may need to interact with.
Grit
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.
Guarantor
A credit-worthy individual or business with sufficient liquidity that promise to repay a loan in the event that the debtholder can’t make a required payment.
Individual Retirement Account (IRA)
A special account where individuals can deposit retirement funds that can grow tax-deferred until they withdraw them after they retire. Advantages – there are no annual income taxes on any dividends or profitable sales that an IRA makes. The money remains in the account and only gets taxed when the individual retires. If a individual withdraws money from an IRL before he/she retires they are forced to pay the IRS significant penalties for early withdraw.
Installment Payment
Debt owed to someone that is paid monthly.
Insurance Claim
The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss.
Insurance Policyholder
The individual or business that purchases an insurance policy for various types of protection.
Insurance Premium
The amount a policyholder pays for an insurance policy.
Intellectual Property
Non-physical assets created by individuals or companies that hold the exclusive legal right to commercialize.
Copyright
Give the author sole right to benefit economically from what he/she wrote.
Patent
Gives the inventor the sole right to benefit commercially from his/her invention.
Trademark
Gives the registering individual or company the sole right to benefit from a brand or image he/she created.
Internal Revenue Service (IRS)
The federal agency that collects federal taxes and performs audits.
Inventory
The merchandise that a company sells to a customer.
Judgement
A legal decision requiring a person or company top pay another person or company.
Liability
An obligation you have to pay someone else money. Also called a debt or loan.
