Vocab 2

Question 1

1. Crowdfunding

Answer 1

An internet phenomenon, where strangers learn about a business online and then decide whether or not to make an investment. Crowdfunding investors are typically “fans” of an owner, but they do except a return on investment

Question 2

2. Deductible

Answer 2

The amount an insurance company makes a policyholder pay as part of any claim. Ex. If your auto insurance has a $500 deductible and your car has damages of $2,000, you will pay the first $500 and your insurance will pay the remaining $1,500.

Question 3

3. Default

Answer 3

Failure to repay a loan.

Question 4

4. Determination

Answer 4

The commitment to get something done.

Question 5

5. Differentiated Offering

Answer 5

Distinguishing a product or service “different than anything else” attracting customers, generating sales and serving as the foundation for a thriving business.

Question 6

6. Dividend

Answer 6

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

Question 7

7. Elevator Speech

Answer 7

– A clear, concise and compelling way to describe a business or new business concept in 30 seconds. A differentiating vision to encourage potential investors or employees to learn more.

Question 8

8. Engaging Question

Answer 8

– Open ended questions that prompt more than a “yes” or “no” answer.

Question 9

9. Equity (or capital)

Answer 9

– 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.

Question 10

10. Financial Literacy

Answer 10

– Understanding how individuals and businesses earn money and what they spend money on.

Question 11

11. Fiscal Year

Answer 11

– The 12-month period a company uses to report financial results. A fiscal year can be the same as a calendar year or it can be any 12-month period that makes sense.

Question 12

12. Fixed Costs

Answer 12

– Costs that do not 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.

Question 13

13. Geaux Biz Portal

Answer 13

– A computer portal offered by the Louisiana secretary of state that enable entrepreneurs to go to a single source to learn which forms they need to file the required by the Secretary of State, and to determine which other government agencies they may need to interact with

Question 14

14. Grit

Answer 14

– 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 backbone.

Question 15

15. Guarantor

Answer 15

A credit-worthy individual or business with sufficient liquidity that promises to repay a loan in the event that the debtholder can’t make a required payment

Question 16

16. Individual Retirement Account (IRA)

Answer 16

A special account where individuals can deposit retirement funds that can grow tax-deferred until they withdraw them after they retire. Advantages – there are no annual income taxes on any dividends or profitable sales that an IRA makes. The money remains in the account and only gets taxed when the individual retires. If an individual withdraws money from an IRA before he/she retires they are forced to pay the IRS significant penalties for early withdrawal.

Question 17

17. Installment Payment

Answer 17

Debt owed to someone that is paid monthly. Ex. Your car or truck payment, your credit cards, and your mortgage are all paid in monthly installment payments.

Question 18

18. Insurance Claim

Answer 18

The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss.

Question 19

19. Insurance Policyholder

Answer 19

The individual or business that purchases an insurance policy for various types of protection.

Question 20

20. Insurance Premium

Answer 20

The amount a policyholder pays for an insurance policy

Question 21

21. Intellectual Property

Answer 21

– Non-physical assets created by individuals or companies that hold the exclusive legal right to commercialize

Question 22

22. Internal Revenue Service (IRS)

Answer 22

The federal agency that collects federal taxes and performs audits.

Question 23

23. Inventory

Answer 23

– The merchandise that a company sells to customers

Question 24

24. Judgement

Answer 24

– A legal decision requiring a person or company to pay another person or company.

Question 25

25. Liability

Answer 25

– An obligation you have to pay someone else money. Also called a debt or loan.