micro-enterprise (2) Flashcards
(28 cards)
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.
Crowdfunding
the amount of an insurance company makes a policyholder pays as part of any claim. Ex. If your auto insurance has a $500 deductible and your car has damages of $2000, you will pay the first $500 and your insurance will pay the remaining $1500.
Deductible
failure to repay a loan
Default
the commitment to get something done.
Determination
distinguish a product or service “different than anything else” attracting customers, generating sales and serving as the foundation for a thriving business.
Differentiate Offering
money paid by a company to a person who owns stock in the company. Dividends are optional- many companies do not pay dividends. Dividends are typically paid every three months.
Dividend
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.
Elevator Speech
open ended questions that prompt more than a “yes” or “no” answer.
Engaging Question
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.
Equity (or Capital)-
understanding how individuals and businesses earn money and what they spend money on.
Financial Literacy
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
Fiscal Year
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.
Fixed Costs
a computer portal offered by a 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 a secretary of State, and to determine which other government agencies they may need to interact with.
Geaux BIZ Portal
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,
Grit
a credit-worthy individual or business with sufficient liquidity that promise to repay a loan in the event that the debtholder can’t make a required payment.
Guarantor
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 the IRA before he/she retires they are forced to pay the IRS significant penalties for early withdrawal.
Individual Retirement Account (IRA)-
debt owned by someone that is paid monthly
installment payment
the amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss
insurance claim
the individual or business that purchases an insurance policy for various types of protection,
insurance policyholder
the amount of a policy holder pays for an insurance policy
insurance premium
non-physical assets are created by individuals or companies that hold the exclusive legal right to commercialize
intellectual property
give the author the sole right to benefit economically from what he/she wrote
copyright
gives the inventor sole right to benefit commercially from his/her invention
patent
gives the registering individual or company the sole right to benefit from his/her invention
trademark
