EOPA ENTREPRENEURSHIP STUDY SET QUESTIONS & ANSWERS, 100% ACCURATE.

EOPA ENTREPRENEURSHIP STUDY SET QUESTIONS & ANSWERS, 100% ACCURATE. "Design - Correct Answer An outline, sketch or plan in the form and structure of a product to be created or constructed." "Distribution - Correct Answer The supplying of goods and services to retailers and others so that people's needs can be met." "Dividends - Correct Answer A share of profits paid to stockholders of a corporation." multiple choice/60 questions/online/no time limit/70% or higher gains certificate/you may use a calculator - Correct Answer what is the format of the exam?" "aptitude - Correct Answer natural ability to do a particular type of work or activity well" "capital resources - Correct Answer goods made and used to produce other goods and services, such as buildings, machinery, tools and equipment" "OSHA - Correct Answer Occupational Safety and Health Act of 1970, created to assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance." "Service Charge - Correct Answer Amount charged to borrowers by merchants or banks for servicing an account or loan" "Line of Credit - Correct Answer pre-established amount that can be borrowed on demand" "break even analysis - Correct Answer is a calculation of the point at which revenues equal expenses" "unlimited liability - Correct Answer If a small business owner (sole proprietor) is responsible for all the debts and choices of a business, the owner is considered to have?" "marketing plan - Correct Answer Business document created for the purpose of describing the current market position of a business and its strategy for making the customer aware of the product or service that is being offered" "The purpose of SWOT analysis is to examine a company's? - Correct Answer strengths, weaknesses, opportunities, and threats" "income statement - Correct Answer A "period-of-time" report on the profitability of business operations is a/an" "promotional mix - Correct Answer describes a blend of promotional variables chosen by marketers to help a firm reach its goals" "breakeven sales - Correct Answer calculated by dividing a company's fixed expenses by the company's contribution margin ratio" "trade association - Correct Answer Entrepreneurs can seek technical and general assistance in a specific industry by joining organizations such as?" "Deductible - Correct Answer The amount of money you agree to pay towards your losses before your insurance coverage will begin paying" "Probability - Correct Answer The chance of something happening or not happening within a certain number of occurrences" "Insurance Fraud - Correct Answer An act on the part of either the buyer or seller of an insurance contract in an attempt to gain money illegally" "Good credit - Correct Answer Paying bills when due" "LIFO Method - Correct Answer inventory costing method produces lower gross margin, lower income tax, smaller cash outflows for income tax purposes." "LIFO (last in first out) - Correct Answer an asset management and valuation method that assumes assets produced or acquired last are the ones used, sold or disposed of first" "FIFO (first in first out) - Correct Answer is an asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first" "attitude - Correct Answer What is reflected in every contact with customers and in completion of work assignments?" "word processing - Correct Answer Which application is the best choice for creating reports, tables, letters and memos?" "mission statement - Correct Answer a formal summary of the aims and values of a company, organization, or individual." "word processing software - Correct Answer a.k.a. Microsoft Word" "spreadsheet software - Correct Answer a.k.a. Microsoft Excel" "presentation software - Correct Answer a.k.a. Microsoft PowerPoint" "Accounts Payable - Correct Answer An unpaid balance of money owed by your business, generally referring to amounts owed for inventory,supplies, and other such ongoing expenses." "Accounts Receivable - Correct Answer An unpaid balance of money owed to your business by customer accounts" "Annual Work Plan - Correct Answer A detailed document which is the result of operational planning.Highlights from this plan are included in the business plan" "assets - Correct Answer Any items of value owned; items on the balance sheet that reflect value owned include cash, accounts receivable, notes receivable, property and property rights." "Barter - Correct Answer The direct trading of goods and services between people without the use of money" "Bottom Line - Correct Answer The last lineof a financial statement used to show net profit or loss" "Brainstorming - Correct Answer A creative problem-solving activity that helps create possibilities to address problems or challenges. Thinking of as many and different answers is important and no responses should be questioned during the activity of Brainstorming" "Brand - Correct Answer A name or symbol that represents a product." "Capital Resources - Correct Answer Goods made by people and used to produce other goods and services (also called intermediate goods)" "Cash Flow - Correct Answer The movement or flow of cash in and cash out of a business" "Circular Flow - Correct Answer A model of an economy showing the interactions between households and business firms as they exchange goods and services and resources in markets." "Citizen - Correct Answer Member of a nation" "Civic - Correct Answer Of a city or citizen." "Collateral: - Correct Answer The assets pledged to a lender to secure or support a loan." "Common Law Rights - Correct Answer Common law is law that was developed over centuries and based on custom and judicial opinions, as opposed to legislative acts." "Commerce - Correct Answer Trade between states or nations." "Competition - Correct Answer Techniques used by businesses to gain more customers and to earn higher profits." "Consumers - Correct Answer People whose wants are satisfied by using goods and services" "Contract - Correct Answer A formal agreement or a promise or set of promises between two or more parties that is legally enforceable." "Copyright - Correct Answer The exclusive right to reproduce, sell, publish, or distribute literary or artistic work; i.e., works of authors, composers, etc. Copyright does not protect the idea itself or the information itself. It protects the form or manner in which the idea or information is proposed." "Corporate Mission - Correct Answer A broad statement of what business or businesses the company should be in." "Cost of Production - Correct Answer All resources used in producing goods and services for which owners receive payment" "Counterfeiting - Correct Answer Copying another's work without permission and passing off the copy as an original. A counterfeit is an imitation, fake or "knock-off." "Culture - Correct Answer The implied beliefs, norms, values, and customs that define a society. Culture leads to common patterns of behavior. Like countries, businesses can have cultures also." "Currency - Correct Answer Paper money issued by the government." "Cyberspace - Correct Answer A link between computers with modems to access the World Wide Web." "Decision Maker - Correct Answer The individual in a family or business who is ultimately responsible for the final selection of a product or service" "Demand - Correct Answer A schedule of how much consumers are willing and able to buy at all possible prices during some time period." "Demographics: - Correct Answer The statisticalstudy of population characteristics. Demographics can also refer to a list of objective characteristics about an individual consumer like age, income, occupation, marital status, education, or location." "Deposit - Correct Answer To put money in a bank or other financial institution" "Depreciation - Correct Answer The portion of the cost of tangible operating assets, such as buildings or equipment, recorded as expense for the accounting period; results from spreading out the cost of long-lived assets over several years." "Depression: - Correct Answer A time of economic crisis or bad times in commerce, finance, and industry, characterized by falling prices, restriction of credit, low output and investment, many bankruptcies and a high level of unemployment (many people without jobs). A less severe crisis is usually known as a recession." "Economic Systems - Correct Answer The way a society organizes the production, consumption and distribution of goods and services." "Economics - Correct Answer The study of choice and decision-making in a world with limited resources." "intellectual property - Correct Answer a work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, etc." "Export: - Correct Answer To send and/or sell goods and services outside of one's country" "Factors of Production: - Correct Answer Resources used by businesses to produce goods and services." "Family Business: - Correct Answer A business in which two or more family members have a significant ownership interest and/or participate in the senior management, and where the ownership may be passed on to the next generation." "Function: - Correct Answer The purpose for which something is designed or exists" "Goods: - Correct Answer Objectsthat canbeheldortouchedthat cansatisfypeople'swant" "Gross Profit: - Correct Answer Net sales (gross sales less returned merchandise, discounts, or other allowances) minus cost of goods sold; also referred to as "Gross Margin."" "Home-Based Business: - Correct Answer A business where the primary activity of business or primary operating office is in one's own home." "Human Resources: - Correct Answer The quantity and quality of human effort directed toward producing goods and services (also called labor)." "Import: - Correct Answer To bring in and/or buy goods and services from another country." "Improvements: - Correct Answer To make more useful, or valuable; to make additions, revisions or changes" "Incentives: - Correct Answer Factors that motivate and influence the behavior of households and businesses. Prices, profits and losses, act as incentives for participants to take action in a market economy." "Industry: - Correct Answer The manufacturing (making) and selling of a particular type of good or service; for example the auto industry." "Inflation: - Correct Answer Increase in the overall level of prices over an extended period of time." "Infringement: - Correct Answer The act of trespassing or encroaching on the rights of another; disregarding the rights of another" "Innovations: - Correct Answer Products or services that are new to both customers and to the business." "Intellectual Property: - Correct Answer Ownership or exclusive rights to processes or other products resulting from intelligent thought, such as trade secrets, copyrights, patents, or trademarks." "Interdependence: - Correct Answer Dependence on others for goods and services; occurs as a result of specialization." "Internet: - Correct Answer It literally means a network of networks. The Internet is comprised of thousands of smaller regional computer networks scattered throughout the globe." "Invest: - Correct Answer To commit money or capital in order to gain a financial return; to put one's money into a business or project to make more money" "Investment Clubs: - Correct Answer A group of people who put their money together to make investments. After each member researches different investments, a decision is made upon the investment with a majority vote." "Investment in Capital Resources - Correct Answer Business purchase of new facility and equipment" "Investment in Human Resources: - Correct Answer Activities that increase the skills and knowledge of workers." "Invoice: - Correct Answer An itemized listing of goods or services sold; given to the buyer for payment purposes, usually detailing costs, discounts, payment terms, freight charges, shipping dates and any other information pertinent to the sale." "Joint Liability: - Correct Answer Where one joint debtor has the right to insist that a co-debtor be joined in the liability. The liability is required to be apportioned among the debtors." "Keystone: - Correct Answer A retailing term referring to doubling the cost of an item of merchandise to determine its retail selling price." "Liabilities: - Correct Answer Short-term and long-term debts incurred by the business and owed to others." "Limited Liability Company: - Correct Answer This is a new form of business entity which is a hybrid between a partnership and a corporation. They are highly flexible, provide limited liability to their members, and avoid double taxation" "Limited Partnership: - Correct Answer A partnership (two or more individuals jointly owning a business) which allows for general partners and limited partners; limited partners are usually financial liable for debts only to the extent of their investment, and have limited or no control over management of the company." "Line of Credit: - Correct Answer A pre determined amount of short-term financing (generally from a bank) available for a business to borrow against on an "as needed" basis and repaid during the specified life of the line." "Market: - Correct Answer Asegment of a population considered actual or potential buyers; a gathering place for selling and buying" "Market Economy: - Correct Answer An economic system where most goods and services are exchanged through private transactions by private households and businesses. Prices are determined by buyers and sellers making exchanges in private markets." "Marketing: - Correct Answer The sum of all activities that influence commercial movement (sale) of goods and services from the provider to the consumer" "Merger: - Correct Answer A combination of two or more businesses into one." "Mission Statement: - Correct Answer A written statement, in the broadest terms, describing what the business hopes to do and become." "Money: - Correct Answer A medium of exchange; a good that can be used to buy other goods and services." "Natural Resources: - Correct Answer "Gifts of nature" that are present without human intervention. (also called land)." "Need: - Correct Answer A specific quantity of a specific good for which an individual would pay any price. These are the goods and services a person must have." "Net Income/Loss: - Correct Answer The result after subtracting all expenses and taxes from total revenue." "Net Profit: - Correct Answer Sales minus variable costs and fixed costs. Net profit is used as a starting point to measure return on investment for specific products or businesses." "Net Worth: - Correct Answer The total assets of a business minus its total liabilities." "Niche Market: - Correct Answer A special segment of a market, often defined in terms of particular buyer characteristics for which a business feels particularly well-suited to target." "Opportunity - Correct Answer Appropriate time; favorable position or chance." "Opportunity Cost: - Correct Answer The next best alternative that must be given up when a choice is made, not all alternatives, just the next best choice." "Organizational Chart: - Correct Answer A chart diagramming the managerial structure of a business, designating specific areas of responsibility" "Outsourcing - Correct Answer The buying of parts of a product to be assembled elsewhere or the hiring of independent contractors to assist with business operations." "Overhead: - Correct Answer The regular ongoing operating expenses of a business, including rent, utilities, upkeep, taxes, administrative salaries; costs not directly associated with the product/service." "Owner's Equity: - Correct Answer The amount owed by the business to the owner." "Partnership: - Correct Answer A legal r elationship created b y two o r more individuals voluntarily associating to carry on as co-owners of a businessfor profit." "Patent: - Correct Answer A temporary grant issued by the government granting the right to exclude all other people from making, using or selling their inventions for a specified period of time to an individual inventor for his/her invention or process. They are usually only valid in the country in which they are issued. In the United States, utility and plant patents are valid for up to 20 years and design patents are valid for up to 14 years." "Piracy: - Correct Answer The unauthorized use, reproduction or distribution of protected works, products or materials without the permission of the owner or author." "Population: - Correct Answer The largest possible market for a product; the broadest starting point for segmentation strategy." "Price: - Correct Answer The value of a goods or service stated in money terms." "Principal: - Correct Answer The dollar amount originally borrowed or financed on which interest is paid; also referred to as the "face amount" of a loan" "Product: - Correct Answer All of the tangible and intangible features and benefits offered by a business. This can be a physical product or a service offering" "Product Line: - Correct Answer The collection of products or services that a business offers" "Production/Producers - Correct Answer People who use resourcesto make goods and services; also called workers." "Productivity - Correct Answer The ratio of output (goods and services) produced per unit of input (productive resources over a period of time)." "Profit: - Correct Answer The financial gain resulting from revenues after all business expenses have been paid." "Proprietorship: - Correct Answer The most common legal form of business ownership; about 85 percent of all small businesses are proprietorships. The liability of the owner is unlimited in this form of ownership." "Public Goods: - Correct Answer Goods and services that are provided by the government. They often are too expensive or not practical to be obtained by individuals." "Public Offering: - Correct Answer A general solicitation for participation i n a n investment opportunity. Interstate public offerings are supervised by the Securities and Exchange Commission." "Public Relations: - Correct Answer Methods by which a business seeks to promote a favorable relationship with the public; marketing examples: positive publicity (news story), community event participation, customer service, civic organization membership." "Publicity: - Correct Answer A freepromotionaltoolwhich communicatesproduct or company information to mass audiences through the media. Publicity media includes newspapers, press magazines, and/or radio. Publicity often begins with a press release by a business" "Resources: - Correct Answer All natural, human and human-made aids to the production of goods and services; also called productive resources." "Services: - Correct Answer Activities that can satisfy people's wants" "Shares: - Correct Answer Any of the equal parts into which the stock of a corporation or company is divided" "Short-Term Debt: - Correct Answer Loans that are due within one year" "Shortages: - Correct Answer The situation resulting when the quantity demanded exceeds the quantity supplied of goods, service, or resource." "Simple Interest: - Correct Answer Interest paid only on the original amount, not on the interest accrued." "Sole Proprietorship: - Correct Answer Unincorporated, one-owner business, farm, or professional practice." "Specialization - Correct Answer The situation in which people produce a narrower range of goods and services than they consume." "Stock Exchange: - Correct Answer A place where stocks, bonds or other securities are bought and sold. Also, an association of stockbrokers who meet to buy and sell stocks and bonds according to fixed regulations. Known as the Stock Exchange in both cases." "Supply: - Correct Answer A schedule of how much producers are willing and able to produce and sell at all possible prices during some time period." "Supply and Demand - Correct Answer Supply is the amount of goods available at a given price at any time. Demand is how many consumers desire the goods that are in supply." "Surplus: - Correct Answer A term used when the quantity of goods supplied exceeds the quantity demanded at the existing price." "Target Market: - Correct Answer The specific group of individuals who are chosen as most likely potential customers for the goods/services of a business and to whom the business wishes to appeal." "Tariff: - Correct Answer A tax on imports." "Taxes: - Correct Answer Required payments of money made to governments by households and business firms" "Income Taxes: - Correct Answer Taxes paid by households and business firms on the income they receive." "Property Taxes: - Correct Answer Taxes paid by households and businesses on land and buildings." "Sales Taxes: - Correct Answer Taxes paid on the goods and services people buy" "Terms: - Correct Answer The conditions or provisions specified for repaying loans or paying invoices; usually includes the time limits, amounts to be paid, discounts." "Total Revenue: - Correct Answer The total amount of money generated through the sale of a product or service." "Trade: - Correct Answer The business of buying and selling goods and services." "Trade/Exchange: - Correct Answer Trading goods and services with people for other goods and services or for money; when people exchange voluntarily, they expect to be better off as a result." "Trade Name: - Correct Answer The name of your business, registered with the Secretary of State's office, also referred to in some states as "fictitious" or "assumed" name." "Trade-offs - Correct Answer Giving up one thing to get some of another" "Trade Secrets: - Correct Answer Confidential methods, processes, customer lists, and similar business information which are not of common knowledge." "Trade Shows: - Correct Answer Large events at which different manufacturers, product and service providers set up booths to share information and promote their offerings to potential buyers." "Trademark: - Correct Answer A symbol that identifies a product; it is officially registered, generally in a Secretary of State's office, and by law grants exclusive use to the owner or manufacturer. A trademark can be almost anything - including a word, color, sound, scent or shape - as long as it is able to identify and distinguish goods and services of one party from another." "Under capitalization: - Correct Answer Having too little capital (money or other resources easily converted to money) to carry a new venture through early development stages." "United States Copyright Office - Correct Answer The federal agency responsible for registration of copyrights within the United States. The United States Copyright office is a part of the Library of Congress" "United States Patent and Trademark Office - Correct Answer An agency of the United States Department of Commerce that issues patents and registers trademarks." "Value Added Agriculture: - Correct Answer Taking farm products such as wheat, corn or sunflowers and increasing the value by processing into products such as flour or corn meal or by packaging products such as sunflower seeds or birdseed." "Venture Capital - Correct Answer Money used to finance new or unusual undertakings" "Wall Street: - Correct Answer The controlling financial interests of the United States. Wall Street itself is located in New York City." "Want: - Correct Answer Something desired, demanded or required." "Warranty: - Correct Answer A promise or representation about goods which is part of the deal and which creates an expectation that the goods will conform to that promise." "Working Capital - Correct Answer Resources available in a business to cover short-term expenses determined by subtracting current liabilities from current assets." "World Wide Web: - Correct Answer A wide area hyper media information retrieval system which provides computer access to a large universe of documents. The Web provides users with a consistent meansto access a variety of information." "Zoning: - Correct Answer The division of an area into zones as to restrict the number and types of buildings and their uses." "credit - Correct Answer the privilege of buying something now with the agreement to pay for it later, or borrowing money with the promise to pay it back" "Balance Due - Correct Answer The amount that remains due on a loan, including principle and interest" "Billing Date - Correct Answer The last date of the month that any purchase you made with your card or any payment made on you account was posted to your account" "Borrower - Correct Answer The person who uses credit" "Revenues: - Correct Answer The earning activities of a business; usually the act of performing a service or selling a product. Revenues result in something of value being received by the business" "Rule of 72: - Correct Answer A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the doubled amount by 72. The result is the approximate number of years that it will take for your investment to double." "Scarcity: - Correct Answer The condition of not being able to have all the goods and services that we want." "Capital - Correct Answer Property you possess that is worth more than your debts" "Creditor - Correct Answer Person or company to whom you owe money" "Due Date - Correct Answer The date on or before which payment is due" "Finance Charge - Correct Answer Amount a borrower must pay to use credit" "Installment Purchase Contract - Correct Answer Written agreement to make regular payments on a purchase" "Prorate - Correct Answer To divide proportionally over a period of time" "Secured loan - Correct Answer A loan wherein the borrower pledges property of other assets to assure the creditor of repayment" "Deferred Billing - Correct Answer service available to charge customers whereby purchases are not billed to the customer until later" "main categories of credit - Correct Answer Open-ended credit agreements Closed-ended agreements Service Credit Layaway plans" "Open-ended credit - Correct Answer credit card; lender places a limit on how much a customer can borrow during a given period" "Installment Loan - Correct Answer when a loan is repaid in fixed payments that include principle and interest" "Closed-End Credit - Correct Answer a specified amount of money, a loan" "Installment Purchase Agreements - Correct Answer contracts with retailers defining the repayment of the purchase price plus finance charges in equal regular payments" "Service Credit - Correct Answer having a service preformed and paying for it later (ex. Telephone, power, cable)" "Layaway Plans - Correct Answer purchase an item form a retailer and the item is held in your name until paid for" "sources of credit - Correct Answer Retail Stores Commercial Banks Credit unions Finance Companies Pawn Private Lenders" "Sales Finance Company - Correct Answer Make loans through representatives, ex. Ford car dealership" "Pawnshops - Correct Answer legal business where loans are made against the value of specific personal possessions" "Open Thirty-Day Account - Correct Answer a consumer promises to pay the full balance owed each month" "Revolving Credit Accounts - Correct Answer consumer has the option to pay in full each month or pay the minimum payment based on the balance" "Annual Percentage Rate (APR) - Correct Answer describes the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc" "balance sheet - Correct Answer financial statement that represents the state of the business at a specific point in time, thus, it provides a snapshot of the business's financial health. Assets=Liabilities + Owners Equity" "short term liability - Correct Answer debt that must be paid within a 12 month period (taxes, accounts payable)" "long term liability - Correct Answer debt that is expected to be paid back later than 12 months (mortgages, notes payable, equipment loans, loans to shareholders)" "Professional Organization - Correct Answer is an organization of people in a particular occupation that requires considerable training and specialized skills." "Lobbying - Correct Answer professional organizations try to influence public officials to take political action that benefits the profession." "Usury Laws - Correct Answer Maximum interest rates that may be charged" "Durables - Correct Answer items expected to last several years" "Labor Union - Correct Answer is a group of people who work in the same or similar occupations, organized for the benefit of all employees in these occupations." "Job sharing - Correct Answer is a job design in which two people share one full-time position. They split the salary and benefits according to each person's contributions." "Compressed workweek - Correct Answer is a work schedule that fits the normal 40-hour workweek into less than five days." "Flextime - Correct Answer allows employees to choose their working hours within defined limits. Flextime plans generally require all employees to be present during a specified core time period" "Pension and savings plans - Correct Answer Employees are said to be vested (means entitled to full retirement benefits) after they have worked a specified period of time." "Leaves of absence - Correct Answer some employers allow employees to temporarily leave their jobs without pay to care for themselves or a family member" "Self-employed tax - Correct Answer is the total social security and Medicare tax, including employer-matching contributions paid by the people who work for themselves= 15.3%" "Social Security tax for self-employed - Correct Answer self-employed people pay 12.4% of gross income (6.2%*2)." "Medicare tax for self employed - Correct Answer self-employed people pay 2.9% of gross income (1.45%*2)" "Net pay - Correct Answer the amount left after all deductions have been taken out of your gross pay." "Deductions - Correct Answer amounts subtracted from your gross pay." "Overtime - Correct Answer is time work beyond the regular 40 hours" "Disposable Income - Correct Answer is the money you have left to spend or save after taxes have been paid." "Financial Plan - Correct Answer is a set of goals for spending, saving, and investing the money you earn." "Express contracts - Correct Answer can be written or oral; the parties have stated the terms of their agreement in words" "Binding - Correct Answer all who enter into the contract must be legally obligated to abide by its terms" "elements of an enforceable contract - Correct Answer Agreement, Consideration, Contractual capacity, Legality" "Promissory Note - Correct Answer is a written promise to pay a certain sum of money to another person or to the holder of the note on a specified date." "Co-signer - Correct Answer is a person who promises to pay the note if the maker fails to pay" "Amortization - Correct Answer is the paying off of debt with a fixed repayment schedule in regular installments over a period of time for example with a mortgage or a car loan." "Harvesting - Correct Answer The stage in the entrepreneurial process in which the entrepreneur decides on the venture's future (growth, development, demise)." "Discovery - Correct Answer The stage in the entrepreneurial process in which the entrepreneur generates ideas, recognizes opportunities, and determines the feasibility of ideas, markets, ventures, etc." "Concept Development - Correct Answer The stage in the entrepreneurial process in which the entrepreneur plans the venture, identifies needed resources using a business plan, identifies strategies .to protect intellectual property, etc." "Resourcing - Correct Answer The stage in the entrepreneurial process in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc." "Actualization - Correct Answer The stage in the entrepreneurial process in which the entrepreneur operates the venture and utilizes resources to achieve its goals/objectives." "Entrepreneurial Skills - Correct Answer The unique traits, behaviors and processes that differentiate an entrepreneur from an employee or manager." "Automatic Teller Machine (ATM) - Correct Answer A machine that allows a customer to deposit checks or withdraw physical cash (bills) from their account" "Balance - Correct Answer The amount of money you have in your bank account" "Cancelled Check - Correct Answer A check you wrote and that the bank has already paid" "Check - Correct Answer A written order to the bank that tells it to take a stated amount of money from your account and pay it to someone else" "Check Cashing Store - Correct Answer A non-bank business that charges a fee to cash physical checks and provide the check's owner with cash, on-the-spot" "Check Register - Correct Answer A written record that allows you to record checks you have written, ATM/debit card transactions, deposits, and withdrawals" "Checkbook - Correct Answer A physical portfolio that holds your check register, checks, and deposit slips" "Credit - Correct Answer A sum of money deposited into your account" "Credit Union - Correct Answer A member-owned financial co-operative, similar to a bank, except it is created and operated by its members and profits are shared amongst the owners" "Debit - Correct Answer A sum of money deducted from your account" "Debit Card - Correct Answer A plastic card that enables you to do ATM transactions and make purchases by deducting money electronically from your checking account" "Deposit - Correct Answer Money put into your account" "Direct Deposit - Correct Answer An automatic electronic deposit of net pay to an employee's designated bank account" "Outstanding Check - Correct Answer A check you wrote and but that the bank has not yet paid" "Overdraft - Correct Answer The result of making a withdrawal when there isn't enough money in your checking account to pay for it" "Person-to-Person Payment - Correct Answer An online process that allows you to send money directly from your account to a friend via email or app" "Personal Identification Number (PIN) - Correct Answer Typically a 4-digit number required to use your debit card at a store or ATM" "Prepaid Card - Correct Answer A card that is loaded with a specific cash amount before you use it but then looks and works like a credit card until the full value is spent" "Reconcile - Correct Answer To "balance" your checking account with your monthly statement from the bank" "Statement - Correct Answer A monthly record of your account transactions provided by your bank electronically or on paper" "Withdrawal - Correct Answer Money taken out of your account" "Joint Account - Correct Answer A bank or credit account that is shared between two or more individuals which allows everyone named on the account to access the funds" "Checking Account - Correct Answer A bank or credit union account that allows easy (and usually unlimited) access to your funds via check, ATM, or debit card" "Unbanked - Correct Answer An individual or household that does not utilize a checking or savings account and instead obtains financial services outside the traditional banking system" "Underbanked - Correct Answer An individual or household that has a checking and/or savings account but also obtains financial services outside the traditional banking system" "Online Banking - Correct Answer Method of banking where all the transactions take place electronically via the internet rather than at a physical bank branch" "Mobile Banking - Correct Answer Method of banking using your smartphone to conduct transactions rather than using a computer or a physical bank branch" "National Credit Union Administration (NCUA) - Correct Answer The U.S. administration insuring deposits in U.S.credit unions against credit union failure" "Online Savings Account - Correct Answer A savings account, typically offering higher interest rates, that is managed entirely online with no physical bank branch" "Inflation - Correct Answer The rate at which the price of goods increases and consumer purchasing power decreases over time" "Money Market Savings Account - Correct Answer An account similar to a traditional savings account but that typically pays higher interest, requires a higher minimum balance, and may allow check writing" "Simple Interest - Correct Answer Interest paid on the principal alone" "Principal - Correct Answer Original amount of money saved or invested, separate from interest or earnings" "Pay Yourself First - Correct Answer A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases" "Federal Deposit Insurance Corporation (FDIC) - Correct Answer The U.S. corporation insuring deposits in US banks against bank failure" "Certificate Of Deposit (CD) - Correct Answer A savings certificate with a fixed interest rate and maturity date, holding the saver's money until the CD fully matures" "Rule Of 72 - Correct Answer A popular trick to find out how long it will take your money to double depending on what interest rate you are receiving" "Health Savings Account (HSA - Correct Answer An account in which you can save pre-tax dollars to pay for out-of-pocket health care expenses" "Compound Interest - Correct Answer Interest earned on both the principal amount and any interest already earned" "Wealth - Correct Answer A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called net worth" "Direct Deposit - Correct Answer An automatic electronic deposit of net pay to an employee's designated bank account" "Interest - Correct Answer The amount you earn as the benefit of depositing money in an interest bearing account" "Emergency Fund - Correct Answer Money set aside for unanticipated expenses or loss of income" "50-20-30 Rule - Correct Answer A popular savings rule of thumb in which 50% of your income goes towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending" "Cash Advance - Correct Answer A credit card service that allows cardholders to withdraw a certain amount of cash, either through an ATM or directly from a bank, typically at a high interest rate or for a fee" "Cash Back - Correct Answer A credit card benefit that pays the cardholder a small percentage of their net expenditures, often in cash, payment toward their balance, reward points, travel miles, or gift cards" "Revolving Credit - Correct Answer Open line of credit that can be used for any purchases as long as you are under the limit and that's payments vary monthly based on size of the debt" "Interest Rate - Correct Answer The rate charged for borrowing money usually expressed as a percent of the amount borrowed" "Secured Credit Card - Correct Answer A type of credit card that requires the borrower to pay the company a fixed, up-front amount of money as collateral, which becomes the credit limit of the card, thereby making it low-risk to the credit card company" "Penalty APR - Correct Answer A higher interest rate triggered by being late with or missing a credit card payment" "Co-Signer - Correct Answer Someone who legally agrees to take responsibility for a person's debt if they cannot repay it" "Authorized User - Correct Answer A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill" "Introductory APR - Correct Answer The typically low rate charged during the introductory period after a credit account is opened, after which the regular, typically higher, APR will apply" "Credit Card Agreement - Correct Answer A contract that outlines the terms and conditions for using your credit card" "Late Payment Fee - Correct Answer A fee charged if your payment is received after the due date" "Schumer Box - Correct Answer A standard table that legally must appear in a credit card agreement showing basic information about the card's rates and fees" "Balance Transfer - Correct Answer The act of transferring debt from one credit card account to another, usually for a fee" "Credit Limit - Correct Answer The maximum amount that may be borrowed on a credit card" "Annual Fee - Correct Answer A yearly fee that may be charged for having a credit card, independent of how you use the card" "Interest - Correct Answer The amount you owe as the cost of borrowing money" "Credit Card - Correct Answer A plastic card that allows you to make purchases now with borrowed money, which then you must repay to the lender in one lump sum or in monthly payments with interest" "Joint Account - Correct Answer A bank or credit account that is shared between two or more individuals which allows everyone named on the account to access the funds" "Minimum Payment - Correct Answer The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender" "Statement - Correct Answer A monthly record of your account transactions provided by your credit card company electronically or on paper" "Grace Period - Correct Answer The number of days between a borrower's statement date and when payment is due, often without accruing interest" "Demographics - Correct Answer The study of a population based on factors such as age, race, sex, income, etc" "Entrepreneur - Correct Answer An individual who undertakes the creation, organization, and ownership of a business" "Startup - Correct Answer A newly established business in which the owner has taken on risk" "Innovation - Correct Answer A new method, idea, product, etc." "Pitch - Correct Answer A brief speech that defines a person, process, product, service, organization, or event and its value" "Entrepreneurship - Correct Answer The process of getting into and operating one's own business" "Profit - Correct Answer Money that is left after all the expenses of running a business have been deducted from the income" "Equity - Correct Answer Shares or ownership stakes in a business" "Small Business - Correct Answer A privately owned company with a small number of employees, usually not aimed at large growth" "Business Plan - Correct Answer Document that describes a new business & a strategy to launch that business" "Fundraising - Correct Answer The process of gathering voluntary contributions of money or other resources from individuals, businesses, foundations, or governmental agencies" "Charity - Correct Answer An organization set up to provide help and raise money for those in need" "Donation - Correct Answer To give something for charitable purposes, to help a cause" "Donor - Correct Answer A person who donates something, especially money, to charity or a nonprofit" "In-Kind Services - Correct Answer Charitable giving in which, instead of giving money, goods and services themselves are donated" "Nonprofit - Correct Answer An organization that uses the money it earns or raises to run the organization & work to furthering a particular social cause, rather than to make a profit" "Philanthropy - Correct Answer The practice of giving money and time to help make life better for other people" "Volunteer - Correct Answer Someone who generally works part-time, in service of a company or organization, without pay" "1040 - Correct Answer The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns" "1040-EZ - Correct Answer An alternative to the Internal Revenue Service's (IRS) 1040 income tax form that offers a faster and easier way to file taxes, meant for taxpayers with very basic tax situations" "1099 - Correct Answer Form that details all "non-employee" compensation, including for specific jobs like freelancers or contractors" "Allowances - Correct Answer Employee-claimed exemptions on the W-4 to determine how much of an employee's pay to withhold from his or her paycheck for taxes" "Audit - Correct Answer An inspection of a filer's tax return by the IRS" "Capital Gain - Correct Answer Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for" "Corporate Income Tax - Correct Answer A percentage of profits paid by a business to the federal and state government" "Dependent - Correct Answer Someone you financially support who can be "claimed" on a tax return to reduce your taxable income and lower your taxes" "Discretionary Spending - Correct Answer Spending by the federal government determined by legislative action and approved through votes by elected officials" "Dividend - Correct Answer Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis" "Effective Tax Rate - Correct Answer The actual rate you pay on your taxes, as a percentage of your overall income" "Estate Tax - Correct Answer A tax on property (cash, real estate, stock, or other assets) transferred from deceased persons to their heirs" "Excise Tax - Correct Answer A tax paid on purchases of a specific good, like gasoline or cigarettes" "Exemption - Correct Answer The set amount of money, per dependent, you can subtract from your taxable income" "Filing Status - Correct Answer A category that defines the type of tax return an individual will use, primarily based on marital status; it also determines the size of your tax brackets and how much of your income is taxed at each rate" "I-9 - Correct Answer Form used by an employer to verify an employee's identity and to establish that the worker is eligible to accept employment in the United States" "Income Tax - Correct Answer Taxes paid by employees to federal and state government through a direct deduction from their paycheck" "Interest Income - Correct Answer Income earned through interest on savings accounts, bonds, CDs, etc." "Mandatory Spending - Correct Answer Spending by the federal government required by previously existing laws, including funding programs like Social Security and Medicare/Medicaid" "Marginal Tax Rate - Correct Answer The tax bracket that your highest dollar of income falls into, and therefore the highest tax rate you pay" "Medicaid - Correct Answer A government-run insurance program that provides healthcare assistance to low income Americans" "Medicare - Correct Answer A government-run insurance program that provides healthcare assistance to elderly and disabled Americans" "Paycheck Stub - Correct Answer A document attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc." "Payroll Tax - Correct Answer Federal and state taxes that all employers must pay, based on a percentage of the employee's salary, toward social services such as Social Security and Medicare" "Progressive Tax - Correct Answer A tax system that uses tax brackets to collect a larger percentage from the income of high-income earners than it does from low-income earners" "Social Security - Correct Answer A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals" "Standard Deduction - Correct Answer A standardized dollar amount that reduces your taxable income, specifically for individuals who do not receive additional benefit by itemizing their deductions into medical expenses, donations, etc." "Tax Bracket - Correct Answer A range of income amounts that are taxed at a particular rate" "Tax Rate - Correct Answer The percentage at which taxes are paid on each dollar of income" "Taxable Income - Correct Answer The amount of income that is used to calculate an individual's or a company's income tax due" "W-2 - Correct Answer Form that an employer must send to an employee and the IRS at the end of the year to report the employee's annual wages and taxes withheld from their paycheck" "W-4 - Correct Answer A form completed by an employee to indicate his or her tax situation (exemptions, marital status, etc.) to the employer, who then withholds the corresponding amount of taxes from each paycheck" "Withholding - Correct Answer The portion of an employee's wages that is not included in their paycheck because it goes directly to federal, state and local taxes" "Federal Insurance Contributions Act (FICA) - Correct Answer A federal law that requires an employer to withhold taxes from the wages they pay their employees; the funds go toward Social Security and Medicare" "Collision Coverage - Correct Answer Auto insurance that protects you against costs to repair your own vehicle after a crash" "Insurance Agent - Correct Answer An employee of an insurance company who sells insurance policies and provides customer service" "Risk - Correct Answer A situation involving exposure to danger, harm, or loss" "Comprehensive Coverage - Correct Answer Auto insurance that protects you against costs to repair or replace your vehicle after events out of your control such as weather, vandalism, theft, etc." "Insuring Agreement - Correct Answer The main part of a car insurance policy, which clearly spells out every point of what coverage you receive for the premium you're paying" "Loss - Correct Answer When someone with insurance endures a negative outcome, such as injury or theft, and expects payment from the insurance company to compensate them" "Underwriter - Correct Answer An employee of an insurance company who evaluates an individual's risk factors and assigns premium amounts" "Maximum Out-Of-Pocket Expenses - Correct Answer The maximum amount of money you will have to spend on health care in a year, after which the insurance company agrees to cover all costs" "Extended Warranty - Correct Answer An additional form of protection that can be purchased to extend/enhance a manufacturer's warranty on consumer goods, like phones and electronics" "Quote - Correct Answer An estimate of what premium you would pay for a certain insurance coverage plan" "Insurance Policy - Correct Answer A contract in which an individual or entity receives financial protection or reimbursement against losses" "Conditions Of The Policy - Correct Answer The portion of a car insurance policy that spells out the details for how to make a claim, what information you must have, how much time you have, and how to cancel your policy" "Uninsured/Underinsured Coverage - Correct Answer Auto insurance that protects you against another driver not having enough coverage to pay the entirety of your losses" "Minimum Liability Limit - Correct Answer The lowest amount of auto insurance coverage one can have to be legally allowed to drive in each state" "Federal Deposit Insurance Corporation (FDIC) - Correct Answer The U.S. corporation insuring deposits in US banks against bank failure" "Actuary - Correct Answer An employee of an insurance company who calculates risk based on loss percentages and determines insurance rates and premiums" "Copay - Correct Answer A set dollar amount you agree to pay each time you receive medical treatment, while the insurance company agrees to cover the rest" "Personal Injury Protection (PIP) - Correct Answer Auto insurance that protects you against cost of your own medical bills if you are involved in a car accident" "Insurance - Correct Answer An agreement where you make regular payments to a company and the company promises to pay you money if you suffer an injury, illness, loss, etc" "Claim - Correct Answer A formal request from the customer to an insurance company asking for a payment based on the terms of the insurance policy" "Risk Pooling - Correct Answer The spreading of financial risk evenly among a large number of contributors to the program" "Liability Coverage - Correct Answer Auto insurance that protects you against medical costs for the bodily injury of others and damages to the property of others if you are at fault in an accident" "Declarations Page - Correct Answer The page of a car insurance policy which includes a summary description of the insurance coverage provided and gives the maximum dollar limit the insurer will pay for a claim under each coverage" "Premium - Correct Answer The specified amount of payment required periodically by an insurer to provide coverage under a plan for a defined period of time" "Social Security - Correct Answer A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals" "Paid Work - Correct Answer When an employee is given compensation for employment including a salary, wage, or stipend and/or other benefits such as health insurance, company stock, etc." "Unpaid Work - Correct Answer When an employee is not given any monetary compensation for their work" "Volunteer - Correct Answer Someone who generally works part-time, in service of a company or organization, without pay" "Intern - Correct Answer A student or trainee who works, sometimes without pay, at a trade or occupation in order to gain work experience in a particular field" "Networking - Correct Answer The process of exchanging professional or personal information and developing contacts to further your career" "Cover letter - Correct Answer A letter you compose and send with your resume to explain more details about your previous experience or what makes you well suited for a particular job opportunity" "Part-Time Employment - Correct Answer An employee who works an average of less than 30 hours per week" "Wage - Correct Answer A set amount you are paid for every hour that you work; also called hourly pay" "Full-Time Employment - Correct Answer An employee who works an average of at least 30 hours per week" "Resume - Correct Answer A short document describing your education, work history, etc., that you give an employer when you are applying for a job" "Salary - Correct Answer A set amount you are paid over a longer period of time, typically a year, regardless of how many hours you work" "Unsecured Debt - Correct Answer Debt not tied to a specific asset, making it difficult or impossible for the lender to repossess items if payments are not made" "Home Equity Line Of Credit (HELOC) - Correct Answer A line of credit extended to a homeowner that uses the borrower's home as collateral" "Fixed-Rate Mortgage - Correct Answer A mortgage that has a fixed interest rate for the entire term of the loan as long as ontime payments are being made" "Direct Subsidized Loan - Correct Answer A student loan that the federal government pays interest on as long as the student is in school at least half-time" "Direct Unsubsidized Loan - Correct Answer A student loan where the student is responsible for the interest during the time they are in school, which means they must pay that interest while studying or have it rolled into their loan" "Fixed-Rate Loan - Correct Answer A loan in which the interest rate is determined before loan is granted and remains constant as long as ontime payments are being made" "Peer-To-Peer Lending - Correct Answer A method of debt financing that enables individuals to borrow and lend money without the use of a financial institution as an intermediary" "Interest Rate - Correct Answer The rate charged for borrowing money usually expressed as a percent of the amount borrowed" "Adjustable-Rate Mortgage (ARM) - Correct Answer A mortgage in which the initial interest rate is normally fixed for a specified period of time after which it is reset periodically, often every month" "Variable-Rate Loan - Correct Answer A loan in which the interest rate can change, based on prime rate or index rate, over the course of the loan" "Home-Equity Loan - Correct Answer A consumer loan extended to a homeowner that uses the borrower's home as collateral" "Secured Debt - Correct Answer Debt tied to a specific tangible asset that can be used as collateral and reposed if payments are not made" "Amortization - Correct Answer The paying off of debt with a fixed repayment schedule in regular installments over a period of time" "Home Equity - Correct Answer The value of ownership built up in a home or property that represents the current market value of the house minus any remaining mortgage payments" "Consolidation Loan - Correct Answer A loan that combines two or more education loans into a single loan, allowing the borrower to make a single monthly payment" "Loan - Correct Answer An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest" "Interest - Correct Answer The amount you owe as the cost of borrowing money" "Lease - Correct Answer A contract (often used for cars or property) by which one party gives property to another for a specified time, usually in return for a periodic payment" "Co-Signer - Correct Answer Someone who legally agrees to take responsibility for a person's debt if they cannot repay it" "Direct Plus Loans - Correct Answer A federal loan available to graduate or professional students and eligible parents of dependent undergraduate students to help pay for the cost of the student's education at participating schools" "Installment Loan - Correct Answer Loan used to finance a specific purchase for a specific amount of time, during which regular payments pay the accrued interest and a portion of the principal" "Term - Correct Answer The amount of time you have to repay your entire loan" "Collateral - Correct Answer Something valuable that the lender can take as payment if you can't or don't repay your secured loan" "Down Payment - Correct Answer A partial payment made in cash at the beginning