EOPA Entrepreneurship Study Set exam WITH QUESTIONS AND CORRECT VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS risk - ANSWER-the chance of losing something reasons for being an entrepreneur - ANSWER-making your own rules, doing work you en

EOPA Entrepreneurship Study Set exam WITH QUESTIONS AND CORRECT VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS risk - ANSWER-the chance of losing something reasons for being an entrepreneur - ANSWER-making your own rules, doing work you enjoy, creating greater wealth, helping your community risks of being an entrepreneur - ANSWER-potential business failure, unexpected obstacles, financial insecurity, long hours and hard work self assessment - ANSWER-evaluating your strengths and weaknesses aptitude - ANSWER-natural ability to do a particular type of work or activity well attitude - ANSWER-a way of viewing or thinking about something that affects how you feel about it. skill - ANSWER-ability that's learned through training and practice ways to increase your potential - ANSWER-business knowledge, financial skills, career exploration, community awareness, education, relationships reasons to study entrepreneurship - ANSWER-learn to think like an entrepreneur and develop a vision for your life resume - ANSWER-a brief account of a person's education, qualifications, and previous experience, typically sent with a job application. cover letter - ANSWER-a letter that introduces you, explains your purpose for writing, highlights a few of your experiences or skills, and requests an opportunity to meet personally with the potential employer. business plan - ANSWER-a well-researched, thought-out working document about your business concept including several essential topics such as business description, marketing, financial, management/operations, etc capital resources - ANSWER-goods made and used to produce other goods and services, such as buildings, machinery, tools and equipment continuation planning - ANSWER-the process of creating systems of prevention and recovery to deal with potential threats to a company to allow for continuing sustainability OSHA - 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. break even analysis - ANSWER-is a calculation of the point at which revenues equal expenses unlimited liability - 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? strengths, weaknesses, opportunities, and threats - ANSWER-The purpose of SWOT analysis is to examine a company's? marketing plan - 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 income statement - ANSWER-A "period-of-time" report on the profitability of business operations is a/an trade association - ANSWER-Entrepreneurs can seek technical and general assistance in a specific industry by joining organizations such as? pay bills when they are due - ANSWER-A way to establish a good credit record is to LIFO method - ANSWER-In periods of rising prices, which inventory costing method produces a lower gross margin, lower income before tax, and smaller cash outflows for income tax purposes? LIFO (last in first out) - ANSWER-an asset management and valuation method that assumes assets produced or acquired last are the ones used, sold or disposed of first attitude - ANSWER-What is reflected in every contact with customers and in completion of work assignments? intellectual property - ANSWER-Original creative work that can be legally protected by a patent, trademark, or copyright is called: word processing - ANSWER-Which application is the best choice for creating reports, tables, letters and memos? FIFO (first in first out) - ANSWER-is an asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first cash flow - ANSWER-the total amount of money being transferred into and out of a business, especially as affecting liquidity. mission statement - ANSWER-a formal summary of the aims and values of a company, organization, or individual. word processing software - ANSWER-a.k.a. Microsoft Word spreadsheet software - ANSWER-a.k.a. Microsoft Excel presentation software - ANSWER-a.k.a. Microsoft PowerPoint Accounts Payable - 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 - ANSWER-An unpaid balance of money owed to your business by customer accounts Advertising - ANSWER-On-going mass communication from a business to customers. It communicates messages about a product, service and a company's mass media plans for television, radio, magazines, and newspapers Annual Work Plan - ANSWER-A detailed document which is the result of operational planning.Highlights from this plan are included in the business plan assets - 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. Bankruptcy - ANSWER-Condition in which a business cannot meet its debt obligations and petitions a federal district court for either reorganization of its debts or liquidation of its assets. Barter - ANSWER-The direct trading of goods and services between people without the use of money Bottom Line - ANSWER-The last lineof a financial statement used to show net profit or loss Brainstorming - 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 - ANSWER-A name or symbol that represents a product. Budget - ANSWER-An estimate, often itemized, of expected income and expense for a given period in the future. Business Concept - ANSWER-A brief but compelling description of why a business exists. Capital - ANSWER-Cash and/or material assets, tools, property, or equipment owned or used in a business. Capital Resources - ANSWER-Goods made by people and used to produce other goods and services (also called intermediate goods) Cash Flow - ANSWER-The movement or flow of cash in and cash out of a business Choice - ANSWER-What someone must make when faced with two or more alternative uses for a resource, also called an economic choice. Circular Flow - 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 - ANSWER-Member of a nation Civic - ANSWER-Of a city or citizen. Collateral: - ANSWER-The assets pledged to a lender to secure or support a loan. Common Law Rights - ANSWER-Common law is law that was developed over centuries and based on custom and judicial opinions, as opposed to legislative acts. Commerce - ANSWER-Trade between states or nations. Competition - ANSWER-Techniques used by businesses to gain more customers and to earn higher profits. Consumer - ANSWER-The final user of a product or service. Consumers - ANSWER-People whose wants are satisfied by using goods and services Contract - ANSWER-A formal agreement or a promise or set of promises between two or more parties that is legally enforceable. Copyright - 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 - ANSWER-A broad statement of what business or businesses the company should be in. Cost of Production - ANSWER-All resources used in producing goods and services for which owners receive payment Counterfeiting - 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 - 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 - ANSWER-Paper money issued by the government. Cyberspace - ANSWER-A link between computers with modems to access the World Wide Web. Decision Maker - ANSWER-The individual in a family or business who is ultimately responsible for the final selection of a product or service Demand - ANSWER-A schedule of how much consumers are willing and able to buy at all possible prices during some time period. Demographics: - 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 - ANSWER-To put money in a bank or other financial institution Depreciation - 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: - 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. Design - ANSWER-An outline, sketch or plan in the form and structure of a product to be created or constructed. Distribution - ANSWER-The supplying of goods and services to retailers and others so that people's needs can be met. Dividends - ANSWER-A share of profits paid to stockholders of a corporation. Division of Labor - ANSWER-The process whereby workers perform only a single task or very few steps of a major production task, as when working on an assembly line. Economic Entrepreneurship - ANSWER-Recognizing an opportunity, marshaling the resources and initiating a venture for economic gain. Economic Systems - ANSWER-The way a society organizes the production, consumption and distribution of goods and services. Economics - ANSWER-The study of choice and decision-making in a world with limited resources. Entrepreneurship: - ANSWER-The human resource that assumes the risk of organizing other productive resources to produce goods and services. Entrepreneurial Communities - ANSWER-Communities where there is significant economic and social entrepreneurial activity and where there is an effective system of entrepreneurship development. Entrepreneurship Development: - ANSWER-Refers to the infrastructure of public and private supports that facilitate entrepreneurship. Equilibrium Price: - ANSWER-The market clearing price at which the quantity demanded by buyers equals the quantity supplied by sellers. Equity: - ANSWER-The amount of the owners' investment in the business; what remains after total liabilities are subtracted from total assets; also called "net worth." Establishment: - ANSWER-A single location business unit, which may be independent, called a single-establishment enterprise or owned by a parent enterprise. Evaluation: - ANSWER-A process to compare different options against specific criteria. Evaluation is helpful in examining options and the value of each Expenses: - ANSWER-The outflow or other use of assets by an entity in order to sell goods or services; expenses are subtracted from revenues to determine net income. Export: - ANSWER-To send and/or sell goods and services outside of one's country Factors of Production: - ANSWER-Resources used by businesses to produce goods and services. Family Business: - 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: - ANSWER-The purpose for which something is designed or exists Goods: - ANSWER-Objectsthat canbeheldortouchedthat cansatisfypeople'swant Gross Profit: - 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: - ANSWER-A business where the primary activity of business or primary operating office is in one's own home. Human Resources: - ANSWER-The quantity and quality of human effort directed toward producing goods and services (also called labor). Import: - ANSWER-To bring in and/or buy goods and services from another country. Improvements: - ANSWER-To make more useful, or valuable; to make additions, revisions or changes Incentives: - 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: - ANSWER-The manufacturing (making) and selling of a particular type of good or service; for example the auto industry. Inflation: - ANSWER-Increase in the overall level of prices over an extended period of time. Infringement: - ANSWER-The act of trespassing or encroaching on the rights of another; disregarding the rights of another Innovations: - ANSWER-Products or services that are new to both customers and to the business. Intellectual Property: - ANSWER-Ownership or exclusive rights to processes or other products resulting from intelligent thought, such as trade secrets, copyrights, patents, or trademarks. Interdependence: - ANSWER-Dependence on others for goods and services; occurs as a result of specialization. Internet: - ANSWER-It literally means a network of networks. The Internet is comprised of thousands of smaller regional computer networks scattered throughout the globe. Inventor: - ANSWER-someone who thinks of new ideas to make life easier or better through innovative ideas. Invention: - ANSWER-A written record of an inventor's thoughts, experiments, data, discoveries, lessons learned, and results. Inventory: - ANSWER-The supply of materials owned and held by a business, including new raw materials, intermediate products/parts,work-in-progress, finished goods (including merchandise purchased for resale), intended for internal consumption or for sale; an asset listed on a business balance sheet. Invest: - 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: - 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 - ANSWER-Business purchase of new facility and equipment Investment in Human Resources: - ANSWER-Activities that increase the skills and knowledge of workers. Invoice: - 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: - 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: - ANSWER-A retailing term referring to doubling the cost of an item of merchandise to determine its retail selling price. Liabilities: - ANSWER-Short-term and long-term debts incurred by the business and owed to others. Limited Liability Company: - 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: - 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: - 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. Manufacture: - ANSWER-To make or process a raw material into a finished product, especially by means of a large-scale industrial operation. Market: - ANSWER-Asegment of a population considered actual or potential buyers; a gathering place for selling and buying Market Economy: - 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: - ANSWER-The sum of all activities that influence commercial movement (sale) of goods and services from the provider to the consumer Merger: - ANSWER-A combination of two or more businesses into one. Mission Statement: - ANSWER-A written statement, in the broadest terms, describing what the business hopes to do and become. Money: - ANSWER-A medium of exchange; a good that can be used to buy other goods and services. Natural Resources: - ANSWER-"Gifts of nature" that are present without human intervention. (also called land). Need: - 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: - ANSWER-The result after subtracting all expenses and taxes from total revenue. Net Profit: - 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: - ANSWER-The total assets of a business minus its total liabilities. Networking: - ANSWER-Making contact with a variety of people in related fields to foster communication with additional contacts or provide information which goes beyond the reason for the initial contact. Niche Market: - 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 - ANSWER-Appropriate time; favorable position or chance. Opportunity Cost: - 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: - ANSWER-A chart diagramming the managerial structure of a business, designating specific areas of responsibility Outsourcing - ANSWER-The buying of parts of a product to be assembled elsewhere or the hiring of independent contractors to assist with business operations. Overhead: - 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: - ANSWER-The amount owed by the business to the owner. Partnership: - 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: - 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: - ANSWER-The unauthorized use, reproduction or distribution of protected works, products or materials without the permission of the owner or author. Population: - ANSWER-The largest possible market for a product; the broadest starting point for segmentation strategy. Price: - ANSWER-The value of a goods or service stated in money terms. Principal: - ANSWER-The dollar amount originally borrowed or financed on which interest is paid; also referred to as the "face amount" of a loan Product: - 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: - ANSWER-The collection of products or services that a business offers Production/Producers - ANSWER-People who use resourcesto make goods and services; also called workers. Productivity - ANSWER-The ratio of output (goods and services) produced per unit of input (productive resources over a period of time). Profit: - ANSWER-The financial gain resulting from revenues after all business expenses have been paid. Proprietorship: - 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: - 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: - 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: - 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: - 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: - ANSWER-All natural, human and human-made aids to the production of goods and services; also called productive resources. Revenues: - 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: - 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: - ANSWER-The condition of not being able to have all the goods and services that we want. Services: - ANSWER-Activities that can satisfy people's wants Shares: - ANSWER-Any of the equal parts into which the stock of a corporation or company is divided Short-Term Debt: - ANSWER-Loans that are due within one year Shortages: - ANSWER-The situation resulting when the quantity demanded exceeds the quantity supplied of goods, service, or resource. Simple Interest: - ANSWER-Interest paid only on the original amount, not on the interest accrued. Social Entrepreneurship: - ANSWER-Recognizing an opportunity, marshaling the resources and initiating a venture for social or community gain. Sole Proprietorship: - ANSWER-Unincorporated, one-owner business, farm, or professional practice. Specialization - ANSWER-The situation in which people produce a narrower range of goods and services than they consume. Stock Exchange: - 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: - 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 - 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: - ANSWER-A term used when the quantity of goods supplied exceeds the quantity demanded at the existing price. Target Market: - 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: - ANSWER-A tax on imports. Taxes: - ANSWER-Required payments of money made to governments by households and business firms Income Taxes: - ANSWER-Taxes paid by households and business firms on the income they receive. Property Taxes: - ANSWER-Taxes paid by households and businesses on land and buildings. Sales Taxes: - ANSWER-Taxes paid on the goods and services people buy Telecommuters: - ANSWER-Employees who work for a company by using a computer terminal set up in an employee's home. This terminal is linked, by means of a computer modem, to the company's central computer. Terms: - ANSWER-The conditions or provisions specified for repaying loans or paying invoices; usually includes the time limits, amounts to be paid, discounts. Total Revenue: - ANSWER-The total amount of money generated through the sale of a product or service. Trade: - ANSWER-The business of buying and selling goods and services. Trade/Exchange: - 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: - 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 - ANSWER-Giving up one thing to get some of another Trade Secrets: - ANSWER-Confidential methods, processes, customer lists, and similar business information which are not of common knowledge. Trade Shows: - 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: - 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: - ANSWER-Having too little capital (money or other resources easily converted to money) to carry a new venture through early development stages. Unemployment: - ANSWER-The situation in which people are willing and able to work at current wages but do not have jobs. United States Copyright Office - 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 - ANSWER-An agency of the United States Department of Commerce that issues patents and registers trademarks. Value Added Agriculture: - 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 - ANSWER-Money used to finance new or unusual undertakings Wages: - ANSWER-The payment for work or services to workers; the money people are paid for their jobs Wall Street: - ANSWER-The controlling financial interests of the United States. Wall Street itself is located in New York City. Want: - ANSWER-Something desired, demanded or required. Warranty: - 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 - ANSWER-Resources available in a business to cover short-term expenses determined by subtracting current liabilities from current assets. World Wide Web: - 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: - ANSWER-The division of an area into zones as to restrict the number and types of buildings and their uses. credit - 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 - ANSWER-The amount that remains due on a loan, including principle and interest Billing Date - 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 - ANSWER-The person who uses credit Capital - ANSWER-Property you possess that is worth more than your debts Creditor - ANSWER-Person or company to whom you owe money Due Date - ANSWER-The date on or before which payment is due Finance Charge - ANSWER-Amount a borrower must pay to use credit Installment Purchase Contract - ANSWER-Written agreement to make regular payments on a purchase Prorate - ANSWER-To divide proportionally over a period of time Secured loan - ANSWER-A loan wherein the borrower pledges property of other assets to assure the creditor of repayment Service Charge - ANSWER-Amount charged to borrowers by merchants or banks for servicing an account or loan Line of Credit - ANSWER-pre-established amount that can be borrowed on demand Deferred Billing - ANSWER-service available to charge customers whereby purchases are not billed to the customer until later main categories of credit - ANSWER-Open-ended credit agreements Closed-ended agreements Service Credit Layaway plans Open-ended credit - ANSWER-credit card; lender places a limit on how much a customer can borrow during a given period Installment Loan - ANSWER-when a loan is repaid in fixed payments that include principle and interest Closed-End Credit - ANSWER-a specified amount of money, a loan Installment Purchase Agreements - ANSWER-contracts with retailers defining the repayment of the purchase price plus finance charges in equal regular payments Service Credit - ANSWER-having a service preformed and paying for it later (ex. Telephone, power, cable) Layaway Plans - ANSWER-purchase an item form a retailer and the item is held in your name until paid for sources of credit - ANSWER-Retail Stores Commercial Banks Credit unions Finance Companies Pawn Private Lenders Sales Finance Company - ANSWER-Make loans through representatives, ex. Ford car dealership Pawnshops - ANSWER-legal business where loans are made against the value of specific personal possessions Open Thirty-Day Account - ANSWER-a consumer promises to pay the full balance owed each month Revolving Credit Accounts - ANSWER-consumer has the option to pay in full each month or pay the minimum payment based on the balance Annual Percentage Rate (APR) - 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 - 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 - ANSWER-debt that must be paid within a 12 month period (taxes, accounts payable) long term liability - ANSWER-debt that is expected to be paid back later than 12 months (mortgages, notes payable, equipment loans, loans to shareholders) Professional Organization - ANSWER-is an organization of people in a particular occupation that requires considerable training and specialized skills. Lobbying - ANSWER-professional organizations try to influence public officials to take political action that benefits the profession. Usury Laws - ANSWER-Maximum interest rates that may be charged Durables - ANSWER-items expected to last several years Labor Union - 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 rotation - ANSWER-is a job design in which employees are trained to do more than one specialized task; Employees rotate from one task to another to help give employees more variety in their work day. Job sharing - 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 - ANSWER-is a work schedule that fits the normal 40-hour workweek into less than five days. Flextime - 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 - 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 - ANSWER-some employers allow employees to temporarily leave their jobs without pay to care for themselves or a family member Self-employed tax - 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 - ANSWER-self-employed people pay 12.4% of gross income (6.2%*2). Medicare tax for self employed - ANSWER-self-employed people pay 2.9% of gross income (1.45%*2) Net pay - ANSWER-the amount left after all deductions have been taken out of your gross pay. Deductions - ANSWER-amounts subtracted from your gross pay. Overtime - ANSWER-is time work beyond the regular 40 hours Disposable Income - ANSWER-is the money you have left to spend or save after taxes have been paid. Financial Plan - ANSWER-is a set of goals for spending, saving, and investing the money you earn. Express contracts - ANSWER-can be written or oral; the parties have stated the terms of their agreement in words Binding - ANSWER-all who enter into the contract must be legally obligated to abide by its terms elements of an enforceable contract - ANSWER-Agreement, Consideration, Contractual capacity, Legality Promissory Note - 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 - ANSWER-is a person who promises to pay the note if the maker fails to pay Amortization - 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 - ANSWER-The stage in the entrepreneurial process in which the entrepreneur decides on the venture's future (growth, development, demise). Discovery - 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 - 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 - 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 - ANSWER-The stage in the entrepreneurial process in which the entrepreneur operates the venture and utilizes resources to achieve its goals/objectives. Entrepreneurial Skills - ANSWER-The unique traits, behaviors and processes that differentiate an entrepreneur from an employee or manager. Automatic Teller Machine (ATM) - ANSWER-A machine that allows a customer to deposit checks or withdraw physical cash (bills) from their account Balance - ANSWER-The amount of money you have in your bank account Cancelled Check - ANSWER-A check you wrote and that the bank has already paid Check - 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 - 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 - ANSWER-A written record that allows you to record checks you have written, ATM/debit card transactions, deposits, and withdrawals Checkbook - ANSWER-A physical portfolio that holds your check register, checks, and deposit slips Credit - ANSWER-A sum of money deposited into your account Credit Union - 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 - ANSWER-A sum of money deducted from your account Debit Card - ANSWER-A plastic card that enables you to do ATM transactions and make purchases by deducting money electronically from your checking account Deposit - ANSWER-Money put into your account breakeven sales - ANSWER-calculated by dividing a company's fixed expenses by the company's contribution margin ratio break-even point - ANSWER-point at which total cost and total revenue are equal suggestion selling - ANSWER-a sales technique where the employee asks the customer if they would like to include an additional purchase or recommends a product which might suit the client Close the sale - ANSWER-a sales term which refers to the process of making a sale Direct Deposit - ANSWER-An automatic electronic deposit of net pay to an employee's designated bank account Outstanding Check - ANSWER-A check you wrote and but that the bank has not yet paid Overdraft - 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 - 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) - ANSWER-Typically a 4-digit number required to use your debit card at a store or ATM Prepaid Card - 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 - ANSWER-To "balance" your checking account with your monthly statement from the bank Statement - ANSWER-A monthly record of your account transactions provided by your bank electronically or on paper Withdrawal - ANSWER-Money taken out of your account Joint Account - 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 - ANSWER-A bank or credit union account that allows easy (and usually unlimited) access to your funds via check, ATM, or debit card Unbanked - 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 - 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 - ANSWER-Method of banking where all the transactions take place electronically via the internet rather than at a physical bank branch Mobile Banking - 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) - ANSWER-The U.S. administration insuring deposits in U.S.credit unions against credit union failure Online Savings Account - ANSWER-A savings account, typically offering higher interest rates, that is managed entirely online with no physical bank branch Inflation - ANSWER-The rate at which the price of goods increases and consumer purchasing power decreases over time Money Market Savings Account - 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 - ANSWER-Interest paid on the principal alone Principal - ANSWER-Original amount of money saved or invested, separate from interest or earnings Pay Yourself First - 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) - ANSWER-The U.S. corporation insuring deposits in US banks against bank failure Certificate Of Deposit (CD) - 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 - 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 - ANSWER-An account in which you can save pre-tax dollars to pay for out-of-pocket health care expenses Compound Interest - ANSWER-Interest earned on both the principal amount and any interest already earned Wealth - 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 - ANSWER-An automatic electronic deposit of net pay to an employee's designated bank account Interest - ANSWER-The amount you earn as the benefit of depositing money in an interest bearing account Emergency Fund - ANSWER-Money set aside for unanticipated expenses or loss of income 50-20-30 Rule - 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 - 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 - 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 - 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 - ANSWER-The rate charged for borrowing money usually expressed as a percent of the amount borrowed Secured Credit Card - 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 - ANSWER-A higher interest rate triggered by being late with or missing a credit card payment Co-Signer - ANSWER-Someone who legally agrees to take responsibility for a person's debt if they cannot repay it Authorized User - 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 - 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 - ANSWER-A contract that outlines the terms and conditions for using your credit card Late Payment Fee - ANSWER-A fee charged if your payment is received after the due date Schumer Box - 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 - ANSWER-The act of transferring debt from one credit card account to another, usually for a fee Credit Limit - ANSWER-The maximum amount that may be borrowed on a credit card Annual Fee - ANSWER-A yearly fee that may be charged for having a credit card, independent of how you use the card Interest - ANSWER-The amount you owe as the cost of borrowing money Credit Card - 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 - 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 - 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 - ANSWER-A monthly record of your account transactions provided by your credit card company electronically or on paper Grace Period - ANSWER-The number of days between a borrower's statement date and when payment is due, often without accruing interest Demographics - ANSWER-The study of a population based on factors such as age, race, sex, income, etc Entrepreneur - ANSWER-An individual who undertakes the creation, organization, and ownership of a business Startup - ANSWER-A newly established business in which the owner has taken on risk Innovation - ANSWER-A new method, idea, product, etc. Pitch - ANSWER-A brief speech that defines a person, process, product, service, organization, or event and its value Entrepreneurship - ANSWER-The process of getting into and operating one's own business Profit - ANSWER-Money that is left after all the expenses of running a business have been deducted from the income Equity - ANSWER-Shares or ownership stakes in a business Small Business - ANSWER-A privately owned company with a small number of employees, usually not aimed at large growth Business Plan - ANSWER-Document that describes a new business & a strategy to launch that business Fundraising - ANSWER-The process of gathering voluntary contributions of money or other resources from individuals, businesses, foundations, or governmental agencies Charity - ANSWER-An organization set up to provide help and raise money for those in need Donation - ANSWER-To give something for charitable purposes, to help a cause Donor - ANSWER-A person who donates something, especially money, to charity or a nonprofit In-Kind Services - ANSWER-Charitable giving in which, instead of giving money, goods and services themselves are donated Nonprofit - 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 - ANSWER-The practice of giving money and time to help make life better for other people Volunteer - ANSWER-Someone who generally works part-time, in service of a company or organization, without pay 1040 - ANSWER-The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns 1040-EZ - 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 - ANSWER-Form that details all "non-employee" compensation, including for specific jobs like freelancers or contractors Allowances - 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 - ANSWER-An inspection of a filer's tax return by the IRS Capital Gain - 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 - ANSWER-A percentage of profits paid by a business to the federal and state government Dependent - ANSWER-Someone you financially support who can be "claimed" on a tax return to reduce your taxable income and lower your taxes Discretionary Spending - ANSWER-Spending by the federal government determined by legislative action and approved through votes by elected officials Dividend - ANSWER-Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis Effective Tax Rate - ANSWER-The actual rate you pay on your taxes, as a percentage of your overall income Estate Tax - ANSWER-A tax on property (cash, real estate, stock, or other assets) transferred from deceased persons to their heirs Excise Tax - ANSWER-A tax paid on purchases of a specific good, like gasoline or cigarettes Exemption - ANSWER-The set amount of money, per dependent, you can subtract from your taxable income Filing Status - 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 - 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 - ANSWER-Taxes paid by employees to federal and state government through a direct deduction from their paycheck Interest Income - ANSWER-Income earned through interest on savings accounts, bonds, CDs, etc. Mandatory Spending - ANSWER-Spending by the federal government required by previously existing laws, including funding programs like Social Security and Medicare/Medicaid Marginal Tax Rate - ANSWER-The tax bracket that your highest dollar of income falls into, and therefore the highest tax rate you pay Medicaid - ANSWER-A government-run insurance program that provides healthcare assistance to low income Americans Medicare - ANSWER-A government-run insurance program that provides healthcare assistance to elderly and disabled Americans Paycheck Stub - ANSWER-A document attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc. Payroll Tax - 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 - 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 - 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 - 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 - ANSWER-A range of income amounts that are taxed at a particular rate Tax Rate - ANSWER-The percentage at which taxes are paid on each dollar of income Taxable Income - ANSWER-The amount of income that is used to calculate an individual's or a company's income tax due W-2 - 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 - 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 - 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) - 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 - ANSWER-Auto insurance that protects you against costs to repair your own vehicle after a crash Insurance Agent - ANSWER-An employee of an insurance company who sells insurance policies and provides customer service Risk - ANSWER-A situation involving exposure to danger, harm, or loss Comprehensive Coverage - 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 - 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 - 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 - ANSWER-An employee of an insurance company who evaluates an individual's risk factors and assigns premium amounts Maximum Out-Of-Pocket Expenses - 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 - 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 - ANSWER-An estimate of what premium you would pay for a certain insurance coverage plan Insurance Policy - ANSWER-A contract in which an individual or entity receives financial protection or reimbursement against losses Conditions Of The Policy - 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 - ANSWER-Auto insurance that protects you against another driver not having enough coverage to pay the entirety of your losses Minimum Liability Limit - 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) - ANSWER-The U.S. corporation insuring deposits in US banks against bank failure Actuary - ANSWER-An employee of an insurance company who calculates risk based on loss percentages and determines insurance rates and premiums Copay - 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) - ANSWER-Auto insurance that protects you against cost of your own medical bills if you are involved in a car accident Insurance - 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 - 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 - ANSWER-The spreading of financial risk evenly among a large number of contributors to the program Liability Coverage - 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 - 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 - 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 - ANSWER-A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals Deductible - ANSWER-The amount of money you agree to pay towards your losses before your insurance coverage will begin paying Probability - ANSWER-The chance of something happening or not happening within a certain number of occurrences Insurance Fraud - ANSWER-An act on the part of either the buyer or seller of an insurance contract in an attempt to gain money illegally Paid Work - 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 - ANSWER-When an employee is not given any monetary compensation for their work Volunteer - ANSWER-Someone who generally works part-time, in service of a company or organization, without pay Intern - 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 - ANSWER-The process of exchanging professional or personal information and developing contacts to further your career Cover letter - 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 - ANSWER-An employee who works an average of less than 30 hours per week Wage - ANSWER-A set amount you are paid for every hour that you work; also called hourly pay Full-Time Employment - ANSWER-An employee who works an average of at least 30 hours per week Resume - ANSWER-A short document describing your education, work history, etc., that you give an employer when you are applying for a job Salary - 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 - 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) - ANSWER-A line of credit extended to a homeowner that uses the borrower's home as collateral Fixed-Rate Mortgage - 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 - 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 - 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 - 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 - 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 - ANSWER-The rate charged for borrowing money usually expressed as a percent of the amount borrowed Adjustable-Rate Mortgage (ARM) - 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 - 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 - ANSWER-A consumer loan extended to a homeowner that uses the borrower's home as collateral Secured Debt - ANSWER-Debt tied to a specific tangible asset that can be used as collateral and reposed if payments are not made Amortization - ANSWER-The paying off of debt with a fixed repayment schedule in regular installments over a period of time Home Equity - 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 - ANSWER-A loan that combines two or more education loans into a single loan, allowing the borrower to make a single monthly payment Loan - ANSWER-An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest Interest - ANSWER-The amount you owe as the cost of borrowing money Lease - 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 - ANSWER-Someone who legally agrees to take responsibility for a person's debt if they cannot repay it Direct Plus Loans - 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 - 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 - ANSWER-The amount of time you have to repay your entire loan Collateral - ANSWER-Something valuable that the lender can take as payment if you can't or don't repay your secured loan Down Payment - ANSWER-A partial payment made in cash at the beginning of the purchase of a good or service, while the remaining balance is due later or is financed as part of a loan Mortgage - ANSWER-A loan by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front Late Payment Fee - ANSWER-A fee charged if your payment is received after the due date Principal - ANSWER-Original amount of money borrowed, separate from interest or fees High Rate Method - ANSWER-A method of debt repayment whereby the borrower prioritizes paying down debts with the highest interest rates first Credit Report - ANSWER-A document containing an individual's financial information focusing on payment of their credit obligations over time Credit Utilization Rate - ANSWER-A measurement of your outstanding debt divided by your total available credit Default - ANSWER-Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score FICO Score - ANSWER-The most commonly used credit score Credit Score - ANSWER-A three-digit number (ranging from 300-850) based on an individual's credit history detailed in a credit report Credit - ANSWER-An agreement in which a borrower receives something of value now and agrees to repay the lender in the future, generally with interest Credit History - ANSWER-A record of a person's use of credit over time; your credit history plays an important role in determining your credit score Collections - ANSWER-Attempted recovery of a past-due credit obligation or debt by a collection department or agency Net Worth - 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 wealth Thin File - ANSWER-A term used to describe someone with little to no credit history Credit Counselor - ANSWER-A certified financial advisor who works for an accredited nonprofit specializing in helping consumers repay debt in a responsible manner Debt Snowball Method - ANSWER-A method of debt repayment whereby the borrower prioritizes paying down debts with the smallest balances first Credit Bureau - ANSWER-A company that collects and sells information about how individual people manage their credit (e.g. Equifax) Bankruptcy - ANSWER-A legal process that relieves debtors of the responsibility of paying their debts or protects them while they try to repay Annual Percentage Rate (APR) - ANSWER-The interest rate a credit card user will be charged on the unpaid portion of their balance Capitalized Interest - ANSWER-Unpaid interest that has been added to the principal balance of a federal student loan Grace Period - ANSWER-A period of time that generally begins on the day after a borrower graduates, leaves school, or drops below half-time enrollment and ends on the day before the repayment period begins; borrower typically is not required to make payments during this time Tuition - ANSWER-Sticker price for the academic portion of your college expenses, which does not include room and board, textbooks, or other fees Direct Subsidized Loan - ANSWER-A student loan that the federal government pays interest on as long as the student is in school at least half-time Principal - ANSWER-Original amount of money borrowed, separate from interest or fees Pell Grant - ANSWER-A Federal program based on substantial financial need and which does not need to be repaid Free Application