Unit Three

Question 1

the right to take possession of collateral

Answer 1

Lien

Question 2

special type of corporation where individual owners are taxed on the profits of the company but the corporation is liable for debts

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

Answer 4

Liquid Assets

Question 5

state agency that collects state taxes

Answer 5

Louisiana Department of Revenue

Question 6

how a business communicates to large numbers of customers. Advertising is a marketing tool (tv flyers radio )

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

Answer 8

Mentor

Question 9

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

Answer 9

Mutual Fund

Question 10

the money a person borrows to buy real estate

Answer 10

Mortgage

Question 11

revenue after cost

Answer 11

Net Income

Question 12

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

makes a financial commitment for an amount greater than the amount the company has in the bank

Answer 14

Overdraft

Question 15

costs that a business incurs that are not part of producing the goods or services it sells

Answer 15

Overhead

Question 16

owning an asset without any associated debt

Answer 16

Own “free & clear”

Question 17

when two or more people own a company

Answer 17

Partnership

Question 18

the amount of money borrowed

Answer 18

principal

Question 19

in business means a projection of future financial performance (revenues and costs)

Answer 19

Pro forma

Question 20

the ability to find solutions to different or complex issues

Answer 20

Problem Solving

Question 21

revenues minus costs

Answer 21

Profit

Question 22

unit price minus cost of goods sold

Answer 22

Profits per Unit

Question 23

means three months; businesses make quarterly reports

Answer 23

Quarter

Question 24

property and the building(s) on it; can be a piece of land; can be the buildings on the land

Answer 24

Real Estate

Question 25

legal obligation by the borrower to repay the debt personally if the business is unstable

Answer 25

Secured Debt