vocabulary test 2

Question 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 expect a return on investment.

Question 2

default

Answer 2

failure to repay a loan.

Question 3

determination

Answer 3

The commitment to get something done.

Question 4

deductible

Answer 4

The amount an insurance company makes a policyholder pay as part of any claim.

Question 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

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

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

engaging question

Answer 8

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

Question 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

financial literacy

Answer 10

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

Question 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

fixed costs

Answer 12

Costs that do not vary based on the units sold by the enterprise.

Question 13

geaux biz portal

Answer 13

A computer portal offered by the Louisiana Secretary of State that 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.

Question 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

guarantor

Answer 15

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.

Question 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

installment payment

Answer 17

Debt owed to someone that is paid monthly.

Question 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

insurance policyholder

Answer 19

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

Question 20

insurance premium

Answer 20

The amount a policyholder pays for an insurance policy.

Question 21

intellectual property

Answer 21

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

Question 22

copyright

Answer 22

give the author the sole right to benefit economically from he/she wrote.

Question 23

patent

Answer 23

gives the inventor the sole right to benefit commercially from his/her invention.

Question 24

trademark

Answer 24

gives the registering individual or company the sole right to benefit from a brand or image he/she created.

Question 25

internal revenue service

Answer 25

The federal agency that collects federal taxes and performs audits.

Question 26

inventory

Answer 26

The merchandise that a company sells to customers.

Question 27

judgement

Answer 27

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

Question 28

liability

Answer 28

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