question

Wants

answer

Things we wish we could have

question

Consumer

answer

A person who selects, purchases, uses, or disposes of goods and services

question

Resource

answer

Anything that people can use, such as fuel, labor, money, to make or obtain what they need or want

question

Competition

answer

The contest between businesses to win customers

question

Needs

answer

necessary items, such as food, shelter, and clothing

question

Services

answer

tasks that people or machines perform

question

Profit

answer

the amount of money left over after a business has paid for the cost of producing its goods and services

question

Goods

answer

material things that can be physically weighed or measured

question

Business

answer

any activity that seeks profit by providing goods or services to others

question

An ice-cream truck

answer

An example of a capital resource would be

question

A mixed economy

answer

The economy of the United States is

question

Entrepreneurial resources

answer

the initiative to improve goods and services or create new ones

question

Market economy

answer

a system in which economic decisions are made in the marketplace according to the laws of supply and demand

question

human resources

answer

the knowledge, efforts, and skills people provide

question

human resources

answer

Skilled, unskilled, physical, or intellectual are used in this chapter to describe

question

capital resources

answer

things such as buildings, materials, and equipment used to produce good and services

question

Japan

answer

An example of a capitalist country is

question

supply

answer

the amount of goods and services that producers will provide at various prices

question

economics

answer

the study of how society chooses to use resources to produce and distribute goods and services

question

mixed economy

answer

a combination of a command and a market economy

question

demand

answer

the amount or quantity of goods and services that consumers are willing to buy at various prices

question

command economy

answer

a system in which a central authority such as the state makes the key economic decisions

question

scarcity

answer

the shortage of economic resources

question

natural resources

answer

raw materials from nature used to produce goods

question

Natural resources become factors of production

answer

when they are used to produce goods

question

factors of production

answer

the resources used to produce goods and services

question

deflation

answer

a general decrease in the cost of goods and services

question

inflation

answer

a general increase in the cost of goods and services

question

owes

answer

The national debt is the total amount of money the government

question

depression

answer

a deep, long-term decline in economic activity

question

1990s

answer

The __________ was a record period of prosperity in the United States.

question

recession

answer

a decline in economic activity

question

gross domestic product

answer

The total value of goods and services produced in a country in a given year

question

Standard of living

answer

the amount of goods and services the people of a country can buy

question

The four stages of the business cycle

answer

peak, recession, depression, and recovery

question

the ripple effect

answer

When a recession spreads from one industry to other industries it's called

question

social responsibility

answer

the obligation to do what is best for the welfare of society

question

Equal Pay Act

answer

a federal law requiring that men and women be paid the same wages for doing equal work

question

Code of Ethics

answer

a profession's or company's set of guidelines for upholding ethical behavior

question

Food and Drug Administration (FDA)

answer

a government agency that protects consumers from dangerous or falsely advertised products

question

Ethics

answer

the moral principles by which people conduct themselves personally, socially, or professionally

question

Sweatshops

answer

factories that pay poorly, have unsafe working conditions, and treat workers badly

question

Occupational Safety and Health Administration (OSHA)

answer

the division of the Department of Labor that sets and enforces work-related health and safety rules.

question

Environmental Pollution Agency (EPA)

answer

a federal agency that enforces rules that protect the environment and control pollution

question

business ethics

answer

the rules that govern how we do business

question

conflict of interest

answer

using personal activities or action to advance one's career at the expense of another person

question

small business

answer

an independently owned business that usually has the owner as its manager, serves a limited geographic area, employs fewer than 500 people, and is not dominant in its industry

question

Dot-com companies do business using _______________.

answer

the Internet

question

entrepreneur

answer

a person who recognizes a business opportunity and organizes, manages, and assumes the risks of a business enterprise

question

Starting a business does not require ____________.

answer

in-depth knowledge of the market

question

Small businesses in America do not ________________.

answer

dominate their industries

question

The main reason small business owners fail is because ________________.

answer

they don't have adequate managerial skills

question

virtual business

answer

a business that operates on the Internet

question

risk takers

answer

people who take chances

question

Entrepreneurship

answer

A business started by someone who accepts the risk of starting and running a business.

question

Entrepreneurs generally do not _____________.

answer

seek work within an existing company

question

Standard sole proprietorships have unlimited liability.

answer

True

question

Only a sole proprietor may operate a franchise.

answer

False

question

Owners of a partnership are neither legally nor financially responsible for the business decisions of their partners.

answer

False

question

A local automobile dealership is considered a manufacturer.

answer

False

question

Banks are more likely to lend money to partnerships than sole propietorships.

answer

True

question

Intermediaries change raw materials into more finished products.

answer

False

question

Less than one-half of all U.S. businesses are sole proprietorships.

answer

False

question

To start a partnership, you need a contract that outlines the rights and responsibilities of each partner.

answer

True

question

Wholesalers buy large quantities of goods and sell them to other businesses or individuals.

answer

True

question

Nonprofit corporations cannot legally charge any money for the services they perform.

answer

False

question

Stockbrokers _______________.

answer

send a customer's orders to a representative on the exchange floor

question

Dividends on preferred stocks are _________________.

answer

paid before dividends on common stock

question

The rate of return is always expressed as a _________________.

answer

percent of the original investment

question

savings bonds

answer

bonds sold by the federal government to pay for government projects

question

municipal bonds

answer

bonds issued by local and state governments to finance government projects

question

bond discount

answer

the difference between the amount paid for a bond and its face value

question

opportunity cost

answer

putting off spending money now to get something later

question

don't keep a minimum balance in their account

answer

Regular checking accounts are for customers who

question

There are usually ______________ parties named on a check.

answer

three

question

interest-bearing account

answer

a checking account that earns interest on the account balance

question

federal and state

answer

The credit industry is regulated by ________________ laws.

question

repossess

answer

to take back collateral in the non-payment of a loan

question

garnishment of wages

answer

creditors have a legal right to take all or part of a debtor's paycheck for an unpaid debt

question

Warranty

answer

a legal document that states the rights and responsibilities agreed to by the consumer and the store or manufacturer

question

Trust

answer

Credit is based on

question

attendance

answer

When looking at school records, employers tend to focus most on ________________.

question

older

answer

The workforce is getting

question

Whole life insurance policyholders pay

answer

a fixed premium

question

Policyholders often use endowment insurance to

answer

provide retirement income

question

life insurance that provides both a savings plan and death benefits

answer

cash-value insurance

question

The average cost of a stay in the hospital in the United States is

answer

$5,000 per day

question

a health care program provided by state governments for low-income families

answer

Medicaid

question

Term insurance is often provided by

answer

employers

question

person who receives part or all of the proceeds from a life insurance policy

answer

beneficiary

question

The cost of term insurance is

answer

less than the cost of cash-value insurance

question

life insurance that covers a person for a specific period of time

answer

term insurance

question

the most common causes of property damage or loss, covered in all homeowner's policies

answer

eleven perils

question

possessions that can be moved, such as furniture, jewelry, or electronic equipment

answer

personal property

question

the full cost of repairing or replacing the property, regardless of the depreciation value

answer

replacement value

question

a combination policy with different kinds of home protection

answer

homeowner's policy

question

type of insurance that protects against damage caused by fire or lightning

answer

standard fire policy

question

a policy that provides protection for the possessions of those who do not own their homes

answer

renter's insurance

question

a policy that provides protection from financial loss on your property

answer

property insurance

question

insurance added to a basic policy

answer

extended coverage

question

property attached to land

answer

real property

question

an addition to a policy that covers specific property or damages

answer

rider

question

Collision insurance covers

answer

your own vehicle

question

If your vehicle is totaled, insurance companies won't pay anything over the

answer

actual cash value

question

protects you from claims of injury or property damage

answer

liability insurance

question

a contract from an insurance company

answer

policy

question

a request for payment from an insurer for any damages covered by a policy

answer

claim

question

Comprehensive insurance does not cover

answer

personal injury

question

an amount in damages a policyholder must pay before the insurance company pays anything

answer

deductible

question

Two types of liability insurance are

answer

property damage and bodily injury

question

the amount the insurance company charges a policyholder for insurance coverage

answer

premium

question

Insurance premiums are not based on

answer

ability to pay

question

requires you to deposit a minimum amount of money in an account for a minimum period of time

answer

certificate of deposit (CD)

question

the ability to quickly turn an investment into cash

answer

liquidity

question

money put aside for future use

answer

savings

question

earned only on the money you deposit into your savings account

answer

simple interest

question

a kind of mutual fund that the federal government insures

answer

money market deposit account

question

when the money of a certificate of deposit (CD) becomes available to you

answer

maturity date

question

a government agency that insures bank accounts

answer

Federal Deposit Insurance Corporation (FDIC)

question

earned on both the principal of an account as well as any interest earned from the principal

answer

compound interest

question

a kind of mutual fund put into a variety of short-term debts by business and government

answer

money market fund

question

Regular checking accounts are for customers who ___________________.

answer

don't keep a minimum balance in their account

question

a prearranged line of credit for overdrawn checks

answer

overdraft protection

question

the signature on the back of a check

answer

endorsement

question

checks you've written that have been cashed

answer

cancelled checks

question

You should write "For Deposit Only" on checks ______________.

answer

to prevent someone else from cashing them

question

________________ is one advantage of using a debit card rather than an ordinary credit card.

answer

No interest charge

question

Online checking is _________________.

answer

available day or night

question

another name for checking accounts, used because each check a customer writes is an order to the bank to release money from the account

answer

demand deposits

question

the difference between planned spending and actual spending

answer

budget variance

question

amounts of money taken out of a paycheck for expenses such as taxes, health insurance, retirement, and union dues

answer

deductions

question

items you have to spend money on such as food, rent, and clothing, or expenses

answer

expenditures

question

a plan of expected income and expenses over a certain period of time

answer

budget

question

expenses that occur regularly and must be paid regularly, such as rent and car insurance

answer

fixed expenses

question

the amount of money a person earns or receives during a given period of time

answer

income

question

the total amount of money earned in a specific period of time before deductions

answer

gross pay

question

money subtracted from a paycheck for taxes, social security, and other deductions

answer

Withholding

question

expenses that fluctuate and over which you have some control, such as food and entertainment

answer

variable expenses

question

the process of planning how to get the most from your money

answer

money management

question

gross pay minus deductions, also called take-home pay

answer

net pay

question

The __________________ Act is also known as the Truth in Lending Law.

answer

Consumer Credit Protection

question

combines several debts into one loan with lower payments

answer

consolidation loan

question

process where a person is relieved of debts but creditors can take some or all of their assets

answer

bankruptcy

question

A disadvantage of a consolidation loan is that ______________________.

answer

it usually has a higher interest rate

question

requires creditors to correct billing mistakes brought to their attention

answer

Fair Credit Billing Act

question

restricts the amount of interest that can be charged for credit

answer

usury laws

question

gives people the right to know what is in their credit file at credit bureaus

answer

Fair Credit Reporting Act

question

The credit industry is regulated by ________________ laws.

answer

federal and state

question

The agency that is responsible for enforcing credit laws is the __________________.

answer

FTC

question

The _________________ Act outlaws harassing behavior on the part of collection agents.

answer

Fair Debt Collection Practices

question

the amount of time to pay off a debt without having to pay interest on it

answer

grace period

question

the maximum amount a person can spend or charge on a credit account

answer

credit limit

question

person who agrees to make payments if the borrower doesn't make them

answer

cosigner

question

using a credit card to borrow money, rather than making a purchase

answer

cash advance

question

portion of the total cost of an item made at the time of purchase

answer

down payment

question

the total amount it costs to finance a loan, stated in dollars and cents

answer

finance charge

question

the cost of credit on a yearly basis

answer

annual percentage rate (APR)

question

the amount of money owed on the original amount of a loan

answer

principal

question

Half of all people with credit problems are between the ages of __________________.

answer

18 and 32

question

The most important factor in determining the cost of credit is ________________.

answer

the risk a creditor takes

question

one who lends money or provides credit

answer

creditor

question

Credit is based on ______________.

answer

trust

question

credit provided by a store or company for customers to buy its products

answer

charge account

question

A major advantage of credit is __________________.

answer

convenience

question

a fee charged for the use of money

answer

interest

question

one who borrows money or uses credit

answer

debtor

question

When businesses borrow money, they often _________________.

answer

pass along the cost to consumers by raising prices

question

a form of credit which allows one to borrow or charge up to a certain amount of money and pay back a part of the total each month

answer

revolving account

question

If a business refuses to correct a problem with a defective item, you should ______________.

answer

write to the manufacturer

question

refusing to buy a company's goods or services because you object to the company's policies or products

answer

boycott

question

a movement to pass laws protecting consumers from unfair and unsafe business practices

answer

consumer movement

question

The Consumer Bill of Rights was outlined by _______________.

answer

John F. Kennedy in 1962

question

advertised products that sell for a loss to bring customers into a store so they'll buy other things

answer

loss leaders

question

a sale that gives you a special buy on a new product or a product that's in season

answer

promotional sale

question

Research shows that the main reason people lose their jobs is because of ______________.

answer

a poor attitude

question

The second step of career planning is _________________.

answer

analyzing your job options

question

Abilities can be divided into ________________.

answer

skills and aptitudes

question

The popularity of desktop publishing has negatively affected the demand for ______________.

answer

typesetters

question

a field that requires a high level of education, such as law, medicine, or architecture

answer

profession

question

tells the computer what to do

answer

software

question

software that allows the user to write, design, and lay out documents on a computer

answer

desktop publishing

question

the most common form of computer memory

answer

random access memory (RAM)

question

a type of project management software

answer

groupware

question

used to measure memory speed

answer

bytes

question

Center-based telecommuting uses __________.

answer

office space close to home

question

A computer virus cannot ________________.

answer

mutate on its own

question

Expert systems protect ____________.

answer

data and databases

question

Over _______ percent of the American labor force frequently works from home.

answer

22

question

With CAD, engineers can

answer

design without paper

question

a report of the financial state of a business on a certain date

answer

balance sheet

question

the difference in value between a business's assets and liabilities, or what a business owns and what it owes

answer

owner's equity

question

Job rotation is NOT used to _______________.

answer

evaluate employees

question

organization for managing money

answer

financial institution

question

managers working together with employees to make decisions

answer

democratic leadership

question

setting goals for managers and employees and leaving them alone to get their jobs done

answer

free-rein leadership

question

giving managers and employees the power to run things and make decisions

answer

delegating

question

one person running everything and answering to no one

answer

autocratic leadership

question

Henry Ford ran everything and answered to no one at Ford Motorcompany. He was an example of a(n) _______________ leader.

answer

autocratic

question

An organization that gives authority to a number of units.

answer

decentralized organization

question

an organizational structure in which managers at the top of the line are in charge of those beneath them

answer

line authority

question

managers who directly assign duties and oversee workers

answer

operational managers

question

an organization that focuses authority in one place, with top management

answer

centralized organization

question

managers who carry out the decisions of top management

answer

middle managers

INTB Final CH 1-3, INTBUS CH 4-10 – Flashcards

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