Only smart people things
Money owed by a customer to a company.
Total Revenues minus Total Cost minus one-time expenditures (called “capital expenditures”) on equipment that will be used for many years.
Cash Flow
An obligation you have to pay someone else money. Also called debt or a loan.
Liability
A loss that an insurance company will reimburse a policyholder for in the event of a claim.
Covered Loss
Treating stakeholders as the entrepreneur would hope others would treat him/her.
Fairness
a loan that investors buy and sell.
bond
Unit price minus the cost of goods sold.
Contribution Margin
The individual or business that purchases an insurance policy for various types of protection
Insurance Policyholder
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.
Credit-Worthiness
Costs that do not vary based on the units sold by enterprise.
Fixed Costs
A company that provides individuals and companies with access to financial markets
Brokerage
Actions entrepreneurs and companies take that go beyond their financial self-interest. These actions are voluntary but often reflect the personal beliefs of business leaders about what their companies can or should accomplish
Corporate Social responsibility
The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss.
Insurance Claim
Money paid by a company to a person who owns stock in that company. Dividends are optional – many companies do not pay dividends
Dividend
Understanding how individuals and businesses earn money and what they spend money on. Understanding important financial terms. Learning how to create a budget.
Financial Literacy
Proper business behavior beyond complying with legal requirements. A simple rule guides business ethics, the same basic rule that should guide all human behavior
Business Ethics
Money earned when something is sold. Example: the real estate agent who sells you a house is paid a 2% commission on the value of the house sold.
Commission
The federal agency that collects federal taxes and performs audits.
Internal Revenue Service or IRS
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
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, to file the forms required by the Secretary of State, and to determine which other government agencies they may need to interact with
geaux BIZ Portal
A determination of how many units are needed to sell in order to pay for all fixed costs.
breakeven analysis
A situation in which an individual might take an action to his/her advantage that would be to the disadvantage of a person or company that believes this individual is serving them
Conflict of Interest
A complete package that supports a "Go" decision by an entrepreneur to launch a new business. A launch plan would include an Elevator Speech, supporting Market Research conclusions, an Organizational Plan
launch Plan
Distinguishing a product or service "different than anything else," attracting customers, generating sales, and serving as the foundation for a thriving business.
Differentiated Offering
A special account where individuals can deposit retirement funds that can grow tax-deferred until they withdraw them after they retire. The advantage of an IRA: 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
Individual Retirement Account or IRA