Test 2 Flashcards
An internet phenomenon, where strangers learn about the 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
Crowdfunding
the amount an insurance company makes a policyholder pay as part of any claim. Ex. if your auto insurance has a $500 deductible and your car has damages of $2000, you pay the first $500 and your insurance will pay the remaining $1500
Deductible
failure to repay a loan
Default
The commitment to get something done
Determination
Distinguishing a product or service “different than anything else” attracting customers, generating sales and serving as the foundation for a thriving business
Differentiated Offering
Money paid by a company to a person who owns stock in that company. Dividend are optional- many companies do not pay dividends. Dividend are typically paid every three months
Dividend
a clear, concise and compelling way to describe a business or new business concept in 30 seconds; s differentiating vision to encourage potential investors or employees to learn more
Elevator Speech
open ended questions that prompt more than a “yes” or “no” answer
Engaging Question
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
Equity or (Capital)
Understanding how individuals and businesses earn money and what they spend money on
Financial Literacy
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
Fiscal Year
Costs that do not vary based on the units sold by the enterprise
Fixed Costs
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 requires government agencies they may need to interact with
GeauxBiz portal
An individual’s self-committed to overcome obstacles to achieve long-term goals. The ability to keep pursuing your dreams despite challenges and defeats. Perseverance, resilience, and backbone
Grit
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
Guarantor
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 profitable sales that an IRA makes. The money remains in the account and only gets taxed when the individuals retires. If an individual withdraws money from an IRA before he/she retires they are forced to pay the IRS significant penalties for early withdrawal
Individual Retirement Account (IRA)
debt owed to someone that is paid monthly. Ex. your car or truck payment, your credit cards, and your mortgage are all paid in monthly installment payments
Installment Payments
The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss
Insurance Claim
The amount a policy holder pays for an insurance policy
Insurance Premium
Non-physical assets created by individuals or companies that hold the exclusive legal right to commercialize
Intellectual property
Give the author the sole right to benefit economically from what he/she wrote
Copyright
gives the inventor the sole right to benefit commercially from his/her invention
Patent
the federal agency that collects federal taxes and performs audits
Internal Revenue Service (IRS)
the merchandise that a company sells to customers
Inventory
