Core Concepts
Something of value that is owned, Such as building or a piece of equipment.
What are Assets?
Debt obtained from a number of online companies, which is often more expensive for borrowers than bank loans.
What is online credit?
Costs that vary based on the units sold by the enterprise.
What are Variable Costs?
The Ability to pursue what you think is right or necessary despite temptations to quit, requiring self- command and resolve.
What is self-Discipline?
A promise not to disclose confidential information.
What is Confidentiality?
The practice of operating openly and communicating fully, providing stakeholders with a clear understanding of how the enterprise operates.
What is Transparency?
A loan that provides the borrower a maximum amount of money he/she can borrow.
What is a line of credit?
Unit price minus cost of goods sold.
What is Profit per Unit?
The ability to speak and interact in a friendly, receptive way with unfamiliar people.
What is comfort engaging with strangers?
The amount a policyholder pays as part of any claim.
What is the deductible?
A legal agreement that an asset is part of a guarantee to a lender.
What is Pledge?
The money a person borrows to buy real estate.
What is a Mortage?
Costs that do not vary based on the units sold by the enterprise, like rent.
What are Fixed costs?
A person who coaches and supports and entrepreneur.
What is a Mentor?
The federal agency that collects federal taxes and performs audits.
What is the Internal Revenue Service or IRS?
A person in the eyes of the law, taxed as if it were an individual.
What is a corporation?
Assets that are not already pledge as a guarantee to repay another loan.
What is unencumbered?
Total Revenue minus all expenses.
What is profits?
An individual's self-commitment to overcome obstacles to achieve long-term goals.
What is Grit?
Debt that includes a legal obligation by the borrower to repay, ofetn guaranteed by collateral or a credit-worthy guarantor.
What is Secured Debt?
Money owned by a customer to a company.
What is Account Receivable?
Ratios that determine how likely they are to have the liquidity to repay debt payments that are required in a loan.
What are Liquidity Ratios?
Fixed costs plus variable costs/
What are fixed costs?
Proper business behavior beyond complying with legal requirements, including guidelines that should guide all human action.
What are Business Ethics?
Failure to repay a loan.
What is Default?