Business Final – Flashcards
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One of the elements essential to Frederick Taylor's approach to improving worker productivity was?
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rules of work
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Frank and Lillian Gillbreth developed the principle of _________ which said that every job could be broken down into a series of elementary motion.
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motion economy
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New employees at Throneberry Manufacturing are carefully trained to use the most efficient production methods. They are expected to preform the same task day after day, using the methods they were taught but the pay is good. This approach is consistent with which principle?
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scientific management
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The findings of the Hawthorne studies led researchers to look more closely at how __________ could lead to better productivity.
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the human side of motivation
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According to Maslow, a higher order need:
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becomes a source of motivation after lower order needs are satisfied
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Maslow called the needs people have for security at work and home:
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safety needs
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Melody has worked as a secretary at Freight Handling for ten years. Although she earns a good salary and has made friends at work, she has been passed-over for promotion and feels no one appreciates her abilities. Melody is concerned with satisfying her:
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esteem needs
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Herzberg found that factors that provided the highest level of motivation were mostly associated with:
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job content
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Herzberg found that good pay:
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was a hygiene factor rather than a motivator
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J encourages their employees to further their education and recognizes worker achievements. Talented employees are given promotions and added responsibilities. These policies suggest that management at J us using the findings of:
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Frederick Herzberg to increase worker motivation
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________ used the term Theory X and Theory Y to describe different attitudes managers have about employees.
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Douglas McGregor
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Theory ____ assumes that the average person likes to work and has a relatively high degree of imagination and creativity.
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Y
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Chase believes that most of this subordinates dislike work and have little ambition. He thinks the only way to motivate them is by using threats and punishment. Chase views are consistent with _________ management.
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Theory X
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Management by objectives was developed by:
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Peter Ducker
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Which of the following responses is the best and most comprehensive? "A company's accounting information is useful to __________."
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Managers, owners, creditors, employees, and the government
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A person's pulse rate and blood pressure are indicators of a person's health. Similarly, __________ can help assess the health of a business.
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financial statements
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The area of accounting that provides managers inside the organization with the information they need to make decisions is called:
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managerial accounting
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A _________ is a yearly published statement of the financial condition, progress and expectations of an organization.
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annual report
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The balance sheet, the statement of cash flow, and the _______ are three key financial statements prepared by accountants.
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income statement
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A _________ provides a summary of cash coming into and money going out of a firm from operations activities, financing activities, and investing activities.
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statement of cash flows
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When companies owe money to creditors, suppliers, and others, these outstanding amounts are recorded on the balance sheet as _______.
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liabilties
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The fundamental accounting equation states:
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assets=liabilities+owners' equity
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Which of the following items is found on the income statement?
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cost of goods sold
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The statement of cash flow identifies cash receipts and disbursements that result _________.
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from a firm's operations, investment and financing activities.
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Accounting recognizes that assets, such as machinery and buildings, lose value over time. Accountants will record a portion of the cost of an asset as an expense each year through the use of:
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depreciation
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_______ is buying products from another country.
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importing
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The largest importer in the global market today is:
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the united states
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A nation has a _______ in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods.
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comparative advantage
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The concept of free trade means:
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goods and services can be traded freely across borders without political and/or economic barriers
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Country A is extremely efficient in the mining of tin. However, its climate and terrain makes it difficult to produce corn. According to the theory of comparative advantage, Country A should:
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concentrate its production on tin and buy corn from an efficient producer
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HA Inc specializes in compact washers and dryers for countries where consumers have less living space. HA Inc participates in the global market through:
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exporting
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Nathan joined his dad's company in Florida, a ______ id copper and other minerals from Chile. Everyday, he brokers trade with mines in Chile to buy and transport these minerals into the U.S.
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importer
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A favorable balance of trade occurs when the value of:
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the value of imports is less than the value of exports.
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The _______ is the difference between money flowing into a country from exports, and money leaving the county for imports, plus money flows coming from the other factors such as tourism and military.
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balance of payments
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_______ is the practice of selling a product in foreign countries for a lower price than the good in the producing country.
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dumping
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Last year the nation of Tigerland imported goods totally 500 million and exported products totally 300 million. Tigerland experienced a:
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unfavorable balance of trade
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_______ is the use of government regulations to limit the import of goods and services.
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trade protectionism
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A ______ tariff is designed to raise the price of imported products so that the domestic goods re more competitively priced.
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protective
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A ________ refers to a complete ban on importing or exporting products from a specific country.
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embargo
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The U.S. government has announced a 5 million pound annual limit on beef imported from Argentina. This type of trade restriction is called a:
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import quota
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Many business experts contend that ______ will likely be the growth market of the future.
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Asia
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Trade experts' concerns about trading with China include:
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its political system, counterfeiting activities, and human rights abuses
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______ refers to standers of moral behavior.
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ethics
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Laws represent the standards of _____ behavior.
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legal
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Ethical behavior covers a _____ range of conduct than legal behavior.
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wider
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Many individuals today believe that ethical behavior is determined by what is best for them at the time. This is an example of:
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situational ethics
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The Legal Briefcase box, "Paying the Price" describes situations where:
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a number of top executives of well-known corporations committed a range of crimes including stealing, securities fraud, and making false regulatory fillings.
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The first step when facing an ethical dilemma is to ask:
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is it legal
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What describes someone who reports illegal or unethical behavior:
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whistleblower
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A ______ - based ethics code defines corporate values; creates a supportive environment and stresses shared accountability among employees
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inegrity
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_______ is the amount a business earns after deducting what it spends for salaries and other expenses.
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profit
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_____ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.
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risk
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The total amount of money that businesses take in by selling goods and services is called?
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revenue
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_______ is a measure of the general well-being and satisfaction derived from a variety of factors including political freedom, safety, education, and a clean environment.
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quality of life
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the most important difference between for-profit businesses and nonprofit organizations is that:
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nonprofit organizations do not seek a profit for its owners or organizers
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Shelby recently started selling her own invention. Shelby is a:
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entrepreneur
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Two factors of production that seem to contribute the most to a nation's ability to create wealth are:
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entrepreneurship and knowledge
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Which of the following is a benefit of owning your own business?
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freedom to keep the profits from your business
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Taxes and government regulations are part of the _______ environment of business.
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economic and legal
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The internet and the emergence of an information-based economy are important parts of the _____ environment in which businesses operate.
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technological
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_______ means producing items using the least amount of resources.
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efficiency
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Which of the following is an advantage of utilizing technology?
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productivity increases
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Successful businesses are keenly focused on their:
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customers
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Due to population shifts,
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businesses that cater to older consumers will see exceptional growth
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Efficiency in distribution systems around the world has led to:
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increased world trade
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Airline companies around the world are experiencing increased costs in part due to:
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the threat of terrorism
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Which of the following explains why individuals accept the risks of business owners?
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the sense of self-satisfaction and independence
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A _____ is a group of experienced professionals from different areas of business who come together to develop, make and market a new product.
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entrepreneurial team
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Business incubators are usually government-funded facilities intended to:
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offer startup firms low-cost office space and basic business services
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Historically entrepreneurs in the U.S.:
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started many small firms that later became major corporations employing thousands of workers
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One reason we have seen continued growth in home-based businesses is:
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affordable computer and information technology makes it easier to compete
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Enterprise zones and investor visas are examples of:
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government programs that encourage economic growth through entrepreneurship
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When comparing small businesses to their larger competitors, its clear that:
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small firms often can offer more personalized customer services than big firms
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Small businesses are important to the U.S. economy because:
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they create over 60% of new jobs each year and generate over 50% of the U.S. GDP
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A detailed written statement that describes the nature of business, the target market, the firm's, competitive advantages, as well as the owner's resources and qualifications is a:
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business plan
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A ______ refers to the first public offering of a corporations stock.
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initial public offering (IPO)
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The trading of previously issued securities from one investor to another takes place in the:
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secondary market
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When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by:
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selling common stock
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What is an example of an institutional investor?
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pension funds
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Most businesses prefer to meet their long term financial needs through:
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retained earnings
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Investment bankers provide ______ services by purchasing the entire new security issue from a corporation seeking to raise capital and selling it to interested investors.
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underwriting
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How do investment bankers generate revenues for their firms?
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they buy, at discount, the entire issue of a new security and then sell the issue to investors at full price.
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As a new father dave plans to accumulate funds over the next eighteen years to help pay for his son's college education. Security markets provide Dave with?
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investing opportunities
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HP wants to raise an undisclosed amount of funds in order to expand the company-owned potato bar stores, internationally. This move will require the CFO to:
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file full disclosure financial statements and seek the approval of the Securities and Exchange Commission
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What is the current legal interpretation of insider trading?
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anyone who has securities information about a particular firm that is not known by the general public
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______ represents the most basic form of company ownership and includes voting rights and dividends, if and when the firm elects to pay dividends.
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common Stock
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Ellie's stock provides a priority claim of dividend payments and on the firm's assets in the event of liquidation. However, her ______ ownership does not offer her voting rights.
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prefered stock
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Another name for the fixed rate of interest attached to a bond is the:
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coupon rate
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A bond's face value is the same as its:
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principle
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What is an advantage of selling bonds to raise long-term capital?
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interest is a tax-deductible expense
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Issuing _____ increases a firm's debt, and may adversely affect the financial community's perception of the firm.
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bonds
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When an investor places a buy order with a stockbroker, the broker contacts a ______ to complete the transaction.
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stock exchange member or dealer where the stock is traded
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Which of the following securities are historically considered high quality and usually pay dividends?
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blue chip stocks
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Lauren wants to buy 100 common shares at $45 per share. Unfortunately she only has $3000 available to invest. One risky strategy Laura could consider is:
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buying on margin
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What is a benefit enjoyed by investors in mutual funds?
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investors buy an ownership interest in many different companies
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buying several different investment alternatives to spread the risk helps an investor achieve:
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diversification
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Financial planning begins with:
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earning money
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Approximately what percent of the population is successful in saving money for retirement?
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10%
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Many financial experts advise that you set up a contingency fund equal to about ______ of your earnings and keep these funds in a highly liquid account.
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six months
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What would assist an individual in taking inventory of personal assets and liabilities?
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balance sheet
