question

another name for checking accounts

answer

demand deposits

question

the process of seeing whether your records agree with the bank's records for your account

answer

bank reconciliation

question

a prearranged line of credit for overdrawn checks

answer

overdraft protection

question

checks that have been written but haven't yet reached the bank

answer

outstanding checks

question

used by the bank to verify your identity

answer

signature card

question

necessary for cashing a check

answer

endorsement

question

the section of your check book where you keep track of all your transactions

answer

check register

question

earns interest on the balance left in the account

answer

interest-bearing account

question

when you write a check for more money than there is in your checking account

answer

overdrawing

question

orders the bank not to cash a particular check

answer

stop payment

question

like using a credit card but money is deducted directly from a checking account rather than a credit account

answer

debit card

question

a bank's record of all the transactions in a checking account

answer

bank statement

question

checks that are written that have been cashed

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canceled checks

question

money or an equivalent, as a check, paid at the time of making a purchase

answer

Cash

question

time allowed for payment for goods or services obtained on trust:

answer

Credit

question

an electronic check; an alternative method to cash when making a payment

answer

Debit

question

is the electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems.

answer

Electronic Funds Transfer

question

currency in paper form, such as government and bank notes, as distinguished from metal currency.

answer

Paper Money

question

a piece of metal stamped and issued by the authority of a government for use as money.

answer

Coins

question

is a debt investment in which an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company. It is issued by the national government in the country's own currency.

answer

Government Bonds

question

A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years.

answer

Treasury Notes

question

money's most important function; used to facilitate transactions

answer

Medium of Exchange

question

provides a common measure of the value of goods and services being exchanged

answer

Unit of Measure

question

money must hold its value over time

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Store of Value

question

money that is paid or received for work or services, as by the hour, day, or week.

answer

wages

question

a fixed compensation periodically paid to a person for regular work or services.

answer

salary

question

a sum paid or charged for the use of money or for borrowing money.

answer

interest

question

to grant the possession and enjoyment of (property, machinery, etc.) in return for the payment of rent from the tenant or lessee. (often fol. by out ).

answer

rent

question

a sum of money paid to shareholders of a corporation out of earnings.

answer

dividends

question

profit from the sale of assets, as bonds or real estate.

answer

capital gains

question

any payment made by a government for a purpose other than that of purchasing goods or services, as for welfare benefits.

answer

transfer payments

question

total pay before any deductions are subtracted

answer

gross pay

question

amount earned for each hour worked

answer

hourly wage

question

40 regular hours a week

answer

standard work day

question

time worked beyond the regular hours - pay is 1 1/2 times the regular rate of pay

answer

overtime

question

the paid, nonpersonal form of communication that businesses use to promote their products

answer

Advertising

question

means of communication such as TV, radio, and newspapers

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Mass media

question

consists of ads sent by mail to people's homes

answer

Direct-mail advertising

question

consists of posters placed on the sides of buses, in subway stations, inside trains, and at airports

answer

Transit advertising

question

a TV program, usually 30 minutes long, made to advertise a product

answer

infomercial

question

like a TV or radio broadcast but it's sent and received over the Web

answer

webcast

question

ads that appear on the Internet

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Cyber ads

question

appear for a few seconds when you first log onto the Internet or when you click on a site

answer

Pop-up ads

question

displayed across the top or bottom of the screen and remain there

answer

Banner ads

question

appear at the left or right of the screen and can be printed for future reference

answer

Screen ads

question

a cooperative process rather than a competition

answer

selling process

question

the first contact with the customer when the salesperson gets the customer's attention and creates interest in the product

answer

approach

question

efforts to prepare for a sales presentation in advance of the first customer contact

answer

preapproach

question

a personalized presentation of the features of the product in a way that emphasizes the benefits and value to the customer

answer

demonstration

question

this step in the selling process is often referred to as overcoming objections

answer

answer questions

question

the step in the sales process when the customer makes a decision to purchase

answer

close

question

providing the customer with the opportunity to buy during the sales presentation

answer

trial close

question

offering additional products and services after an initial sale in order to increase customer satisfaction

answer

suggestion selling

question

making contact with the customer after the sale to ensure satisfaction

answer

follow-up

question

identified five areas of needs that people have

answer

Abraham Maslow

question

food, sleep, water, shelter, air

answer

Physiological

question

physical safety and economic security

answer

Security

question

friends, love, belonging

answer

Social

question

respect and recognition

answer

Esteem

question

to realize your potential

answer

Self-Actualization

question

the federal government focuses on business that takes place across all states

answer

Interstate Commerce

question

state governments focus on business within each state

answer

Intrastate Commerce

question

when a small number of companies control the market without actually forming a trust

answer

oligopoly

question

a company that controls an entire industry

answer

monopoly

question

when rival companies form a monopoly by banding together and agree not to compete with each other

answer

trust

question

allow the government to break up monopolies, regulate them, or take them over

answer

antitrust laws

question

a legal agreement between two or more parties to conduct business

answer

contract

question

when one party fails to live up to the terms of a contract

answer

breach of contract

question

gives artists the sole right to own their creations, such as plays, photos, music, paintings and books

answer

copyright

question

gives you the sole right to own an invention

answer

patent

question

a brand name, trade name, trade characteristic or a combination of these that is given legal protection by the federal government

answer

trademark

question

money that the government takes in

answer

revenue

question

payments the government gives to businesses to make up for their losses

answer

subsidies

question

government offers to businesses to encourage socially responsible behavior

answer

tax incentives

question

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

answer

Profit

question

government or business income

answer

Revenue

question

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

answer

variable expenses

question

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

answer

fixed expenses

question

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

answer

balance sheet

question

a report of a business's net income or net loss over a specific period

answer

income statement

question

revenue is greater than expenses

answer

net income

question

expenses are greater than revenue

answer

net loss

question

studies how society chooses to use resources to produce and distribute goods and services for people's consumption

answer

Economics

question

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

answer

market economy

question

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

answer

demand

question

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

answer

supply

question

the price at which the amount supplied and the amount demanded meet

answer

equilibrium price

question

market economy, or private enterprise

answer

capitalism

question

a central authority makes the key economic decisions

answer

command economy

question

communism, the state makes all the economic decisions

answer

strong command

question

socialism, there is some form of private enterprise

answer

moderate command

question

a combination of a market and command economy

answer

mixed economy

question

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

answer

Ethics

question

set of laws about how a business should conduct itself

answer

Business ethics

question

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

answer

sweatshops

question

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

answer

Occupational Safety and Health Administration

question

set of strict guidelines for maintaining ethics in the workplace

answer

code of ethics

question

duty to do what is best for the society

answer

social responsibility

question

when a business is tempted to put profits before social welfare

answer

conflict of interest

question

government agency, protects consumers from dangerous or falsely advertised products

answer

Food and Drug Administration

question

requires that men and women be paid the same wages for doing equal work

answer

Equal Pay Act

question

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

answer

Environmental Protection Agency

question

can be physically weighed or measured

answer

Goods

question

tasks that people or machines perform

answer

Services

question

a business that gathers raw products in their natural state

answer

Producer

question

changes raw materials into more finished products

answer

Processor

question

businesses that make finished products out of processed goods

answer

Manufacturers

question

business that moves goods from one business to another

answer

Intermediary

question

distributes goods

answer

wholesaler

question

purchases goods from a wholesaler and resells them to the consumer

answer

retailer

question

a business owned by only one person

answer

sole proprietorship

question

full responsibility for your company's debts

answer

unlimited liability

question

a business owned by two or more persons who share the risks and rewards

answer

partnership

question

a business owned by many people but treated by law as one person

answer

corporation

question

shares of ownership in your corporation

answer

stock

question

if the company looses money then the stockholders lose only what they invested

answer

limited liability

question

a company that does business in many countries and has facilities and offices in many countries around the world

answer

multinational corporation

question

builds and sustains a market economy

answer

specialization

question

goods and services that a country buys from another country

answer

imports

question

goods and services that one conuntry sells to another country

answer

exports

question

another name for money

answer

currency

question

the price at which one currency can buy another currency

answer

exchange rate

question

when the value of a country's currency goes up compared to another country's

answer

favorable exchange rate

question

when the value of a country's currency goes down compare to another country's

answer

unfavorable exchange rate

question

the difference in the value between how much a country imports and how much it exports

answer

balance of trade

question

when a country exports more than it imports

answer

trade surplus

question

when a country imports more than it exports

answer

trade deficit

question

the practice of putting limits on foreign trade to protect businesses at home

answer

protectionism

question

governments use to limit competition from other countries (to keep foreign trade out)

answer

trade barriers

question

a tax placed on imports to inrease their price in the domestic market

answer

tariff

question

a limit placed on the quantities of a product that can be imported

answer

quota

question

when the government decides to stop an import or export of a product

answer

embargo

question

no limits on trade

answer

free trade

Principles of Business, Marketing, and Finance Fall Semester Exam – Flashcards

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