Business Start-up
How a business communicates to large numbers of customers, motivating them to learn more about the business and its offerings. Example: advertising is a _____________ tool. (TV, Radio, Signs, Flyers)
What is Marketing?
A credit-worthy individual or business with sufficient liquidity that promises to repay a loan in the event that the debtholder can't make a required payment.
What is a guarantor?
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)
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.
What is Grit?
The exact customers and market sector the business intends to serve.
What is Target Market?
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?
Abilities an individual develops that helps him / her succeed. These are developed by a combination of observation, training and hands-on trial and error.
Personal Capabilities
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 practice of operating openly and communicating fully, providing stakeholders with a clear understanding of how your enterprise operates.
What is Transparency?
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
Relationships and resources that help individuals succeed. Support relationships are often with “mentors” (experienced individuals who help you learn and succeed). Support resources include both information sources (like the LA Star Jobs website) and the opportunity to experience new things (like an internship).
Personal Support Systems
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?
The ability to pursue what you think is right or necessary to do despite temptations to quit. Self-command, persistence and resolve.
What is Self Discipline?
When an entrepreneur’s actions and decisions are guided by a set of beliefs about how he / she wants the business to succeed.
What is mission-driven?
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. Ex: a customer tells a supplier in confidence that they're buying lots of a specific product to advertise a major sale in two weeks. The supplier uses this information to sell to competitor stores and they can put it on sale immediately.
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?
The ability to pursue a task without being told to by someone else. Individuals who are self-motivated can find the strength to start and then finish a task without giving up.
What is Self-Motivation?
A person who coaches and supports an entrepreneur . . . or a student studying to become an entrepreneur. They have "been there, done that," so they are a great source of experienced advice to an entrepreneur or a student.
What is a Mentor?