Test 4 Flashcards
An investment worth money; a “financial instrument” indicating ownership.
Securities
An investment vehicle. Different types of securities include stocks, bonds, and mutual funds.
Security
The ability to purse what you think is right or necessary to do despite temptations to quit.
Self-Discipline
The ability to purse a task without being told to by someone else. Individuals who are self-motivated can find the strength to start and then someone finish a task without giving up.
Self-Motivation
Cost that vary somewhat based on the number of units you sell.
Semi-Variable Costs
An individual that owns a company. Sole proprietors are taxed on the profits of the company, and are personally liable for the debts or judgement against the company.
Sole Proprietorship
One of the equal parts into which a company’s capital into which a company’s capital is dividend, entitling the holder to a proportion of the profits. Share refers to the ownership certificates of particular company.
Share
All people or companies associated with enterprise. Stakeholders include internal stakeholders (employees and shareholders/owners) as well as external stakeholders (customers, suppliers, and community members).
Shareholders
Shares of ownership in a company. Stock is a general term of ownership in any company.
Stocks
A company that provides a good or service to another company.
Supplier
The hard work a small business owner puts into forming, founding, and operating his/her business. Small business owners typically work very long hours. Sweat equity is an important as any capital but it’s not a cash investment.
Sweat Equity
The exact customers and market sector the business intends to serve.
Target Market
Working with others to address a challenge. Individuals using their skills in harmony with others to complete a task. Effective teamwork involves trust among team members. Collaboration and cooperation.
Teamwork
Fixed cost plus variable cost.
Total Costs
Units times price.
Total Revenue
The practice of operating openly and communicating fully, providing stakeholders with a clear understanding of how your enterprise operates.
Transparency
Assets that are not already pledged as a guarantee to repay another loan.
Unencumbered
Units refer to “things” the company sells. Retail stores sell many different types of units. Service businesses can sell many different services.
Units
Debt that does not include a promise by a guarantor to repay the loan in the event the debt holder is unable to make a required payment. Unsecured debt that is risker for the bank or online lending company – therefore the lending party changes a higher interest rate on unsecured debt than it does on secured debt.
Unsecured Debt
Costs that vary based on the units sold by your enterprise.
Variable Cost
