Business Start-up
Funds contributed by investors to a business.
What is Capital (or Equity)?
Money owed by a customer to a company.
What is account receivable?
A special type of corporation where individual owners (or “members”) are taxed on the profits of the company, but the corporation (not the member-owners) is liable for debts or judgments against the company.
What is a Limited Liability Company (LLC)
Unit price minus cost of goods sold.
What is Contribution Margin?
The state government agency that helps individuals and companies file required legal forms.
What is Louisiana Secretary of State?
Non‐physical assets created by individuals or companies that hold the exclusive legal right to commercialize. Examples of these are copyright, trademark and patents.
What is Intellectual Property?
The federal agency that collects federal taxes and performs audits.
Internal Revenue Service (IRS)
A person in the eyes of the law. The ____________ is taxed for profits and is liable for any debts or judgments. They are owned by shareholders (individuals or other corporations).
What is a Corporation?
What are total costs?
Costs that a business incurs that are not part of producing the goods or services its sells, but which are required to operate legally and efficiently.
What is Overhead?
The percentage of a loan or online credit company charges when a small business receives a loan. This fee may not be called "interest" but it adds to the overall cost of the loan.
What is origination fee?
Debt obtained from a number of web based companies. Borrowers need to disclose much less information about themselves to obtain this type of credit, and these credit companies make credit decisions much more quickly than banks.
What is Online Credit?
An individual that owns a company. They are taxed on the profits of the company, and are personally liable for any debts or judgments against the company
What is a Sole Proprietorship
Units times price.
What is total revenue?
When a company issues a check or makes a financial commitment for an amount greater than the amount the company has deposited in the bank. Also called "a bounced check."
What is an overdraft?
Voluntary actions entrepreneurs take that reflect the personal beliefs of business leaders about what their companies can or should accomplish. Ex: the local pet store promises to donate $1 to the local animal shelter for every pet owner who buys the pet food they have on sale over a weekend.
Corporate Social Responsibility
A determination of how many units are needed to sell in order to pay for all fixed costs. Example 1: "That equipment costs $4,000. The contribution margin for each item it makes is $10. I will need to sell 400 items to breakeven on that investment."
What is a Breakeven Analysis?
An individual or company that owns shares in a company.
What is a Shareholder?
Unit price minus cost of goods sold.
What is Profit per unit?
The date a loan (or debt or liability) is repaid in full.
What is maturity?
Individuals that make small investments in an enterprise or to support an entrepreneur where they do not expect an immediate or large return on investment. They are typically friends or family and want the owner to succeed.
What is an angel investor?
Equipment, inventory or other goods that are pledged to the bank in the case the company can not make a loan payment.
What is Collateral?
A company that provides individuals and companies with access to financial markets. Example: "I buy stocks and bonds from my ____________."
What is brokerage?
Revenue minus costs.
What is profit?
The amount of money borrowed.
What is Principal?