test two Flashcards
an internet phenomenon, where strangers learn about a business online and then decide whether or not to make an investment.
Crowdfunding
the amount an insurance company makes a policyholder pay as part of any claim. Ex. If your auto insurance has $500 deductible and your car has damages of $2000. You will 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 of service “different than anything else” attracting customers, generating sales and serving as the foundation for thriving business
. Differentiated Offering
money paid by a company to a person who owns stock in that company. Dividends are optional- many companies do not pay dividends. Dividends are typically paid every three months.
Dividend
A clear concise and compelling wat to descried a business or new business concept in 30 seconds; a 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.
Fiscal Year
cost that do to vary based on the units sold by the enterprise ex. A lease for a building- the cost of the lease does not change according to how many units of your product is sold.
Fixed Cost
- a computer portal offered by Louisiana secretary of state the 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.
. Geaux BIZ PORTAL-
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 back bone
Grit-
- a credit- worthy individual or business with sufficient liquidity that promises to repay a loan in the event that the debt holder can’t make a required payment.
guarantor
a special account where individuals can deposit retirement funds that can grow tax-deferred unit they withdraw them after they retire.
Individual retirement account (IRL)
- there are no annual income tax on any dividends or profitable sales that an IRA makes. The money remains in the account and only gets taxed when the individuals retire. If an individual withdraws money from an IRA before he/she retires they are forced to pay the IRS significant penalties for early withdrawal.
Advantages
- debt owed to someone that is paid monthly.
. Installment payment
the amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss
Insurance claim
the individual or business that purchases an insurance policy for various types of protection.
. Insurance policyholde
the amount a policyholder 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-
- gives the registering individual or company the sole right to benefit from a brand or image he/she created.
. trademark
) - the federal agency that collects federal taxes and perform audits.
Internal revenue service (IRS
the merchandise that a company sells too customers
inventory
- a legal decision requiring a person or company to pay another person or company.
Judgement
an obligation you have to pay someone else money. Also called a debt or loan.
liability
The right to take possession of collateral unit a debt is repaid.
Lien.
A special type of corporation where individual owners are taxed on the profits of the company, but the corporation is liable for debts or judgments against the company
Limited liability Corporation
A loan that provides the borrower a maximum amount of money he/she can borrow - the borrower can then access or use that line of credit for only as much money as they need at any particular time.
Line of Credit
Cash or securities that can be immediately turned into cash, which can then repay a loan amount outstanding.
Liquid Assets
The State agency that collects state taxes.
Louisiana Department of Revenue
How a Business communicates to large numbers of customers, motivating them to learn more about the business and its offerings. Ex. Advertising is a marketing tool
marketing
The date a loan is repaid in full
Maturity
A person who coaches and supports an entrepreneur or a student studying to become an entrepreneur
Mentor
The money a person borrows to buy real estate
Mortgage
An investment security that includes many different stocks purchased and held together. Investors purchase mutual funds because they are less risky than holding any individual stock.
Mutual Fund
“Net” means revenues after cost
Net income
A payment that is owed every month
Obligation
Debt obtained from a number of online companies. Borrowers need to disclose much less information about themselves to obtain online credit, and online credit companies make credit decisions much more quickly than banks. For these reasons, inline credit is much more expensive for borrowers than bank loans,`
Online Credit
when a company issues a check or make a financial commitment for an amount greater than the amount the company has deposited in the bank Also called ‘’bounced check”
Overdraft
Cost that a business incurs that are not part of producing the goods or service its sells, but which are required to operate legally and efficiently
Overhead
Owing an asset without any associated debt
Own free and clear
When two or more individuals own a company. Partners are taxed on the profits of the company, and are personally liable for any debts or judgements against the company.
Partnership
The amount of money borrowed
Principal-
A Latin phrase (for the sake of form) that in business means a project of future financial performance. A pro forma usually takes the form of a projection of future revenue and costs.
Pro Forma
the ability to find solutions to difficult or complex issues. The process of working through the details of a challenge or crisis- often under pressure- to reach a solution
Problem solving
Revenues minus costs
Profit- Revenues minus costs
unit price minus costs of goods sold
Profits per unit
most projections are for a year a “quarter” means three months. Some businesses make quarterly reports
Quater-
real estate is property and the building(s) on it. Real estate can be a piece of land, or can be a home on that piece of land, or it can be building. Real estate is typically purchased using a mortgage. The down payment the buyer makes is called buyer’s “equity”
Real estates
Debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make its scheduled debt payment. A secured debt can be guaranteed by the entrepreneur or by any credit- worthy guarantor
Secured debt
An investment worth money ; a financial instrument indicating ownership
Securities
an investment vehicle. different types of securities include stocks and bonds and mutual funds
security
the ability to pursue a task without being told to by someone else
self- discipline
the ability to pursue a task without being told by someone else. Individuals who are self- motivated can find the strength to start and then finish a task without giving up
Self motivation
cost that vary somewhat based on the number of units you sell
semi-variable
An individual that owned a company. sole properties are taxed on the profits of the company and are personally liable for any debts or judgments against the company
sole proprietorship
one of the equal parts into which a company’s id divided entitling the holder to a proportion of the profits
share
an individual or company that owns share in a company
share holder
all people or companies associated with an enterprise
stakeholders
shares an 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 country
supplier
