test 3

Question 1

the right to take possession of collateral until a debt is repaid

Answer 1

lien

Question 2

a special type of corporation where individual owners are taxed on the profits of the company

Answer 2

limited liability corporation (LLC)

Question 3

a loan that provides the borrower a maximum amount of money he/she can borrow

Answer 3

line of credit

Question 4

cash or securities that can be immediately turned into cash, which can then repay any loan amount outstanding

Answer 4

liquid assets

Question 5

the state agency that collects state taxes

Answer 5

Louisiana department of revenue

Question 6

how a business communicates to large numbers of customers. motivating them to learn more about the business and its offerings

Answer 6

marketing

Question 7

the date a loan is repaid in full

Answer 7

maturity

Question 8

a person who coaches and supports an entrepreneur or a student studying to become an entrepreneur

Answer 8

mentor

Question 9

the money a person borrows to buy real estate

Answer 9

mortgage

Question 10

an investment security that includes many different stocks purchased a held together

Answer 10

mutual fund

Question 11

revenues after costs

Answer 11

net income

Question 12

a payment that is owed every month

Answer 12

obligation

Question 13

debt obtained from a number of online companies

Answer 13

online credit

Question 14

when a company issues a check or makes a financial commitment for an amount greater than the amount the company has deposited into the bank “bounced check”

Answer 14

overdraft

Question 15

costs that a business incurs that are not part of producing the goods and services it sells, but which are required to operate legally and efficiently

Answer 15

overhead

Question 16

owning an asset without any associated debt

Answer 16

own “free & clear”

Question 17

when two or more individuals own a company

Answer 17

partnership

Question 18

the amount of money barrowed

Answer 18

principal

Question 19

a Latin phrase that in business means a projection of future financial performance

Answer 19

pro forma

Question 20

the ability to find solutions to difficult or complex issues

Answer 20

problem solving

Question 21

revenues minus costs

Answer 21

profit

Question 22

unit price minus costs of goods sold

Answer 22

profits per units

Question 23

most projections are for a year

Answer 23

quarter

Question 24

is property and the buildings on it. can be a piece of land or it can be a home on the piece of land

Answer 24

real estate

Question 25

debt that includes a legal obligation by the barrower or repay the debt personally if the business is unable to make the scheduled debt payment

Answer 25

secured debt