Test Vocab

Question 1

Close corporation

Answer 1

A close corporation is a corporation which is held by a limited number of shareholders and is not publicly traded.

Question 1

Open corporation

Answer 1

An open corporation is a corporation whose ownership shares are available for exchange on a public market.

Question 2

Sole proprietorship

Answer 2

A business owned and run by only one person and in which there is no legal distinction between the owner and the business entity.

Question 3

General partnership

Answer 3

General partnerships are made up of the two or more persons, called general partners, who enter an agreement to conduct business for a profit.

Question 4

Lawsuit

Answer 4

A lawsuit is when someone takes a legal problem to court to get it resolved. One person (the plaintiff) accuses another person or entity (the defendant) of doing something wrong, and they ask the court for a solution or compensation.

Question 5

Monopoly

Answer 5

A company legally controlling its market

Question 6

Stakeholder

Answer 6

A stakeholder is a person, group, or organization that has an interest or concern in a particular project, business, or issue and may be affected by or affect the outcomes or decisions related to it.

Question 7

What is the first step in entrepreneurial discovery?

Answer 7

Idea Generation: every new venture begins with an idea. In our context, we take an idea to be a description of a need or problem of some constituency coupled with a concept of a possible solution.

Question 8

Cloud computing applications

Answer 8

Cloud computing applications are internet-based tools and services, like Google Docs or Dropbox, accessed online instead of being installed on your device. They offer flexibility and convenience, allowing access from any internet-connected device.

Question 9

Private enterprise

Answer 9

A business or industry that is managed by independent companies or private individuals rather than by the state.

Question 10

Liberal trade agreements

Answer 10

Liberal trade agreements, or free trade agreements, are deals between countries that aim to remove barriers to international trade, like tariffs and quotas, to promote economic cooperation and growth. Examples include USMCA and CPTPP.

Question 11

Capital resource

Answer 11

Capital resources are valuable tools like machinery, money, and technology used to produce goods or services (physical resources).

Question 12

Investor

Answer 12

An investor is someone who puts money into financial markets or ventures, aiming to make a profit or gain a return on their investment.

Question 13

Creditor

Answer 13

A creditor is someone or something that has provided goods, services, or money with the expectation of being repaid by a debtor. A debtor is someone or something that owes money to a creditor.

Question 14

Factor

Answer 14

In business, a factor is a company that buys unpaid invoices from other businesses, giving them quick cash, and then collects the full amount from the customers later.

Question 15

Liability

Answer 15

A liability is a financial obligation or debt that an individual or entity owes to someone else.

Question 16

Income statements

Answer 16

Shows a company’s expense, income, gains, and losses, which can be put into a mathematical equation to arrive at the net profit or loss for that time period. This information helps you make timely decisions to make sure that your business is on a good financial footing.

Question 17

Interest rate

Answer 17

Proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding

Question 18

Petty cash

Answer 18

Cash that businesses keep on hand for small purchases. For instance, a box of staples for an office or an emergency block of cheese for a cafe.

Question 19

Book value

Answer 19

The value of a business according to its books or accounts, as reflected on its financial statements

Question 20

Gross margin

Answer 20

Portion of a company’s revenue left over after direct costs are subtracted

Question 21

SWOT analysis

Answer 21

(strengths, weaknesses, opportunities, and threats) analysis is a method for identifying and analyzing internal strengths and weaknesses and external opportunities and threats that shape current and future operations and help develop strategic goals

Question 22

Customer profiles

Answer 22

A document that contains key information about your ideal customer

Question 23

Data mining

Answer 23

Process of searching and analyzing a large batch of raw data in order to identify patterns and extract useful information

Question 24

Market segmentation

Answer 24

Practice of dividing your target market into approachable groups. Market segmentation creates subsets of a market based on demographics, needs, priorities, common interests, and other psychographic or behavioral criteria used to better understand the target audience.

Question 25

Cluster analysis

Answer 25

A form of exploratory data analysis in which observations are divided into groups that share common characteristics

Question 26

Forecasting

Answer 26

A decision-making tool used by many businesses to help in budgeting, planning, and estimating future growth

Question 27

Prediction

Answer 27

Business forecasting is the process of predicting future developments in business based on analysis of trends in past and present data.

Question 28

Market basket analysis

Answer 28

A data mining technique that analyzes patterns of co-occurrence and determines the strength of the link between products purchased together

Question 29

Quality assurance program

Answer 29

Establishes and maintains set requirements for developing or manufacturing reliable products

Question 30

Mortgage

Answer 30

Agreement between you and a lender that allows you to borrow money to purchase or refinance a home and gives the lender the right to take your property if you fail to repay the money you’ve borrowed

Question 31

Down payment

Answer 31

Paid upfront in a financial transaction

Question 32

Supply chain

Answer 32

Network of companies and people that are involved in the production and delivery of a product or service

Question 33

Corporate governance

Answer 33

System by which companies are directed and controlled

Question 34

Product strategy

Answer 34

Plan created by a company to define the vision for a product and identify how that vision will be realized

Question 35

Advertising goal

Answer 35

Designed to increase sales and build profits gradually

Question 36

Pricing objective

Answer 36

Goals that drive how your business sets prices for your product or service

Question 37

Return on investment (ROI)

Answer 37

A calculation of the monetary value of an investment versus its cost

Question 38

Risk management program

Answer 38

Formal process utilized to quantify, qualify, and mitigate specific concerns an organization may discover or define

Question 39

Tangible vs. intangible products

Answer 39

Tangible: physical items owned by a company

Intangible: nonphysical items that have a monetary value because they represent potential revenue

Question 40

ADKAR model and what is it used for

Answer 40

Awareness, Desire, Knowledge, Ability and Reinforcement

• A map of what needs to be done to advance a change rather than merely describing how someone proceeds through change

Question 41

Creditors

Answer 41

Creditors are individuals or entities that have lent money to another individual or entity. They typically charge interest and the money is owed back to them. For example, a bank lending money to a person to purchase a house is a creditor.

Question 42

Venture Capital

Answer 42

Type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential

Question 43

Invoice

Answer 43

An invoice is a document used to notify a customer that payment is due. It also serves as a record for the issuing business so that it can track its receivables.