Definitions
A determination of how many units are needed to sell to pay for all fixed costs.
Ex: Equipment costs $4,000. Each item costs $10. I need to sell 400 items to break even.
breakeven analysis
Define target market.
The exact customers and market sector the business intends to serve.
Revenue - Cost= ??
Profit
Net income.
“Net” means revenues after costs.
What do you call merchandise that a company sells to customers?
Inventory
A person that works for someone else.
employee
A payment made to an insurance company to cover the costs of an insurance policy is called ?
Premium
Total Revenues minus Total Cost minus one-time expenditures (called “capital expenditures”) on equipment that will be used for many years.
How to solve for Cash Flow?
GeauxBiz Portal
A Louisiana Secretary of State website entrepreneurs use to register a company
What is security?
An investment vehicle. Different types of securities include stocks, bonds and mutual funds.
What is an example of variable cost?
Overhead cost: 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 something of value called?
Ex: like a piece of jewelry or house
asset
What is fixed cost? What is an example of?
Costs that do not vary based on the units sold by enterprise. Fixed costs are often incurred at the start of the enterprise, before it is known how well the enterprise will perform.
Example: monthly rent
Define Limited Liability Corporation (LLC).
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.
I paid off my car loan last month, so now I own my car 'free and clear.' What is this an example of?
Owned "free and clear"
A person who coaches and supports an entrepreneur . . . or a student studying to become an entrepreneur. Mentors have "been there, done that," so they are a great source of experienced advice to an entrepreneur or a student.
Mentor
A guarantor is?
A credit-worthy individual or business responsible for repaying a loan if the debtholder cannot
Partnership
When two or more individuals own a company. Partners are taxed on the profits of the company, and are personally liable for any debts or judgments against the company
Debt obtained from a number of online companies. Borrowers need to disclose much less information about themselves to obtain online credit, and online credit companies make credit decisions much more quickly than banks. For these reasons, online credit is much more expensive for borrowers than bank loans.
Online Credit
What is the purpose for a business plan?
Describes in detail how the company's products or service will be differentiated versus its competition
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. What is this called?
Conflict of Interest
Bank Loans: can be intimidating, complex, detailed,
Online Loans: easier to obtain, but more expensive than bank loans
A company balance sheet is the single report that best indicates:
A.) company assets and liabilities
B.) company quarterly cash flow
C.) company financial projections
D.) monthly debt payments and outstanding debt obligations
A.) company assets and liabilities
A Latin phrase (“for the sake of form”) that in business means a projection of future financial performance. A pro forma usually takes the form of a projection of future revenues and costs.
Pro forma
What are the three types of intellectual properties? What do they mean?
• A copyright gives the author the sole right to benefit economically from what he/she wrote.
• A patent gives the inventor the sole right to benefit commercially from his/her invention.
• A trademark gives the registering individual or company the sole right to benefit from a brand or image he/she created.