Test 2 Flashcards
Corporation
a person in the eyes of the law
Cost of Goods Sold
cost that make up one unit of what you sell
Covered loss
A loss that an insurance company will reimburse a policyholder for in the event of a claim
Credit
funds lent to a business with an argument that the business will repay the lender with interest
credit-worthiness
a person or a business with a strong credit score and the financial resources that make it likely they will be able to repay any loan
crowdfunding
An internet phenomenon, where strangers learn about a business online and then decide if you qualify for an investment. Typically “fans” of an owner, but do expect a return on investment
Deductible
The amount an insurance company makes a policyholder pay as a part of any claim
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
Elevator speech-A clear, concise and compelling way to desire a business or new business concept in 30 seconds
Engaging question
open ended questions that prompt more than a “yes” or “no” answer
Equity or capital
funds contributed by investors to a business
Financial literacy
understanding how individuals and businesses earn money and what they spend it on
Fiscal year
the 12 month period a company uses to report financial results
