Vocab 2 Flashcards
- Crowdfunding
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
- Deductible
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.
- Default
Failure to repay a loan.
- Determination
The commitment to get something done.
- Differentiated Offering
Distinguishing a product or service “different than anything else” attracting customers, generating sales and serving as the foundation for a thriving business.
- Dividend
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
- Elevator Speech
– 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.
- Engaging Question
– Open ended questions that prompt more than a “yes” or “no” answer.
- Equity (or capital)
– 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.
- Financial Literacy
– Understanding how individuals and businesses earn money and what they spend money on.
- Fiscal Year
– 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.
- Fixed Costs
– 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.
- Geaux Biz Portal
– 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
- Grit
– 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.
- Guarantor
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
- Individual Retirement Account (IRA)
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.
- Installment Payment
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.
- Insurance Claim
The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss.
- Insurance Policyholder
The individual or business that purchases an insurance policy for various types of protection.
- Insurance Premium
The amount a policyholder pays for an insurance policy
- Intellectual Property
– Non-physical assets created by individuals or companies that hold the exclusive legal right to commercialize
- Internal Revenue Service (IRS)
The federal agency that collects federal taxes and performs audits.
- Inventory
– The merchandise that a company sells to customers
- Judgement
– A legal decision requiring a person or company to pay another person or company.
- Liability
– An obligation you have to pay someone else money. Also called a debt or loan.
