Finance Cluster Exam flashcard FROM AREA TESTs

DECA finance cluster exams

The most common headings on a stock table include the 52-week high and low, the stock symbol, the estimated dividend per share, the yield percentage/rate of return, the volume/sales for the day, the closing price

for the day, the net change, and the…… (Area 2025, 3, FI)

Price-earnings ratio. Most stock tables include the price-earnings ratio, or PE ratio for short. The price-earnings ratio is determined by dividing the last closing price of the stock by the earnings per share. Investors often study the PE ratio to get an idea of whether the stock is overvalued or undervalued, compared to competitors.

Managerial accountants primarily do what? (4, FI)

Report internally financial information to managers for decision-making.

What is a lean methodology? (7, FM)

Lean. Lean is a production practice that focuses on eliminating wasteful processes that do not add value. It increases implementation speeds and productivity.

Purpose of Corporate Governance. (8, PD)

To ensure that companies are held to high ethical standards. Corporate governance is important because it holds companies accountable for their behavior and helps organizations avoid financial, legal, and ethical pitfalls.

Which tactic should the company use to motivate its employees and improve the distribution of wealth throughout the corporation? (14, PD)

Profit-sharing. Employees are key in the achievement of governance objectives. Businesses use many different tactics to encourage or motivate their workers to reach those objectives and goals. Profit-sharing is a good

tactic to adopt if the company seeks to improve employee motivation by improving the distribution of wealth throughout the corporation.

A project that might need to be monitored needs what. (18, OP)

A distinct start and end.

When Gabriela’s parents passed away, their assets were transferred to her. Those assets were taxed by thefederal government according to their current market value. This is an example of a(n) __________ tax. (19, BL)

Estate. An estate tax is a tax placed on the transfer of assets, or estate, of a deceased person to an identified beneficiary. When Gabriela received her parents’ estate after their passing, those assets were taxed by the government in the form of an estate tax.

We need creativity in communication because.. (21, CO)

Not everyone communicates the same way. We need creativity in communication because not everyone communicates the same way. For example, there are cultural differences in nonverbal communication that may require you to get creative when sending and receiving messages from certain people.

Employees who serve customers efficiently help control expenses by… (26, OP)

Reducing complaints. Treating customers in a professional manner often helps control business expenses. When employees serve customers efficiently, the customers are not likely to have complaints. Since handling

complaints is an expense to the business, this effort saves money.

. Why is it important for a person pursuing any type of business career to develop self-confidence? (27, PD)

The business field is very competitive. Self-confidence helps a person accomplish their career goals because they can handle setbacks and disappointments. People who believe in themselves are able to persist and reach their goals.

Which of the following is a common challenge for financial-information management: (28, FM)

Many financial data are stored in custom, task-specific software and are not easily accessible. Financial- information management involves accessing, processing, maintaining, evaluating, and disseminating financial data to assist in business decision-making, as well as supporting budgeting activities and storing and protecting customer financial information. Challenges for financial-information management include inadequate information, multiple master sources of data, inaccuracies, inefficiencies, and disparate data structures. Unfortunately, many companies house their financial data in custom, task-specific software, making it difficult for others in the organization to access that data if they do not have that specialized software.

. Lower premiums and the ability to control the claims process are advantages of…. (39, RM)

Captive insurance companies. Organizations (i.e., corporations, industry/professional/trade associations) often form their own insurance companies, which are known as captive insurance companies. Primary advantages of forming captive insurance companies are that the founding organizations control the premium rates and the claims process

Which of the following is an example of an internal control mechanism impacting an organization's governance:    (43, PD)

Segregation of duties. Segregation of duties, or segregation of control, is an internal control mechanism that divides responsibilities between board members so that no one person has excessive power, authority, or responsibility

By using a central data repository for financial information, companies receive…. (44, FM)

Up-to-date data. A central data repository is a singular storage location for all of an organization's data. Companies use central data repositories for their financial information because it provides benefits to consistency, collaboration, and visibility.

Which of the following is an example of an indirect cost: (47, FI)

Insurance. Indirect costs are costs that cannot be directly allocated to a specific cost object.

Which of the following statements about a board of directors is true: (50, PD)

Internal board members are not usually paid extra for their work with the board. A board of directors, an elected group of individuals who represent shareholders, is made up of internal and external members. Internal board

members, or inside directors, have the interest of significant shareholders, officers, and employees in mind and add value to the board based on their experience within the company. Internal directors aren't usually compensated for their work with the board, because they are often already a high-ranking executive, major shareholder, or key stakeholder.

Employees from different departments participate in a group to solve problems related to the company's production processes. This is an example of a…. (55, EI)

Quality circle. A quality circle is a problem-solving group of coworkers who are given work situations or problems to study and discuss to recommend solutions to management.

Why should an independent business consultant avoid using email to share a negative evaluation of an IT company with a client? (71, CO)

Using email can create reputational risk for them if it is shared with others. Email can easily be intercepted and shared with others, so it is typically wise to avoid using email to share confidential information

Self-control can help you develop a positive attitude by helping you… (73, EI)

Eliminate negative ways of thinking. You can use self-control to eliminate negative ways of thinking and to replace them with a positive approach. In other words, you substitute negative thoughts with positive ones.

Which of the following statements regarding convergence and consolidation in the finance industry is true? (80, FI)

Financial companies often enjoy higher earnings as a result of convergence and consolidation. Convergence within the finance industry typically involves financial providers from different financial sectors merging, such as a retail bank merging with an insurance company. Consolidation takes place when financial providers within the same institutional category merge, such as a retail bank merging with another retail bank.

Which of the following technologies is frequently used to provide a source for master data management in the finance industry: (81, FM)

ERP (Enterprise Resource Planning). Master data management is made up of processes and tools that define and manage non-transactional data entities. In other words, it collects, pulls together, matches, consolidates, and distributes data throughout an organization. ERP is an example of a system that's intended to integrate all data and processes into a unified system. A key ingredient of most ERP systems is the use of a unified database that stores data for the system

Corporate stocks, long-term government securities, state and local government bonds, and bank commercial loans are traded on the __________ market. (82, FI)

Capital. Longer-term securities due to mature in more than 1 year are typically traded on the capital market. Examples of longer-term securities include corporate stocks (because they have no maturity date), long-term government securities, state and local government bonds, commercial loans, and mortgages.

Which of the following has accelerated the globalization of financial markets: (83, FI)

The reduction of government regulations. Liberalization and deregulation have enabled capital to flow more freely across national borders.

Which of the following technologies has proven very successful in creating "what-if" scenarios in the finance industry: (89, RM)

Digital dashboards. Digital dashboards are being used in the finance industry to deliver "what-if" scenarios based on handpicked combinations of monthly data such as line of business, FICO band, county, loan amount, and loan status. The dashboard is fed by a business intelligence and data warehousing environment supported by Microsoft products. The dashboards review the amounts and number of loans funded or in the pipeline and then view them by criteria selected by the user

One activity of professional organizations and trade associations is to…. (91,PD)

Influence legislation. Both professional organizations and trade associations frequently employ lobbyists who attempt to influence legislative decisions that will affect their members

Distinguishing feature of consolidation in the Finance industry (2024 Area Exam, 10, FI)

All former entities no longer exist, and a single, new legal entity is formed. A consolidation occurs when two businesses agree to create a new entity so that one business can take over the net assets of another entity; neither of the original entities continues to exist.

What will happen if someone forgets to buy shipping materials (19,OP)

The client's order will be delayed. Because there are no materials to ship the order, the client's order will not be able to be shipped in time.

Money Markets (31, FI)

A financial market is an organized effort or exchange that facilitates the buying and selling of financial assets. Money markets facilitate the buying and selling of short-term, low-risk financial products, such as treasury bills and certificates of deposit.

Capital Markets (31,FI)

Capital markets buy and sell long-term securities such as corporate and municipal bonds.

Commodities Markets (31,FI)

Commodities markets are involved with the buying and selling of various resources such as agricultural goods and mined goods, which are often used to make other products.

Sunk cost (35, FI)

It is a sunk cost. Sunk costs are those that have already been incurred and cannot be recovered by any decision. Because the material was already purchased, the cost cannot be recovered. Therefore, it should not

be a factor when deciding whether or not to produce the handbags.

What are the two major sections of a statement of changes in stockholders' equity? (40,FI)

Capital stock and retained earnings. The statement of changes in equity, also known as the statement of changes in stockholders' or shareholders' equity, indicates changes in stockholders' equity accounts during a specified time period. The capital stock section of a statement of changes in stockholders' equity shows the current value of stocks issued, while the retained earnings section shows the value of any net income retained for business expansion minus any dividends declared as distributions to stockholders.

When making a query what is the first step (43, FI)

Pinpointing exactly what you want to know first. Nothing else can happen before that.

Industrial Purchasing (45, OP)

Industrial purchasing is the process of buying goods and services for internal consumption in the business or conversion into a final product.

A company is what if they invest everything into one thing hoping it will work out. (52, SM)

Risk seeking. If they are risking their financial health for something to work out they are risk seeking.

How to calculate yield percentage (62, FI)

Based on the information provided, the yield percentage, also called the rate of return or dividend yield, of the stock is 4.9%. The yield percentage is determined by dividing the dividend by the actual closing price/current price of the stock. Dividing the dividend of 2.50 by the current stock price of $50.75 comes out to 0.049 (4.9%).

Globalization helps investors reduce their exposure to what? (63, FI)

Business cycle risks. By investing their funds in many different countries, investors are able to diversify their risk and reduce their exposure to business cycle risks.

Agents in business and their work and control. are from what relationship with the principal (77, BL)

Employer-employee. In legal terms, the employer-employee relationship refers to the amount of control that a principal (e.g., employer or client) has over an agent (e.g., employee or attorney). Determining if a employer- employee relationship exists is an important consideration when addressing a business's legal issues and disputes, especially in cases that involve liability questions. Factors that determine if a employer-employee relationship exists include the nature of the agent's work, the level of the agent's control (e.g., decision-making), and the agent's level of supervision.

What is Working capital (76,FM)

Working capital is a measure of short-term financial health that can be found by subtracting current liabilities from current assets. It indicates whether or not a company can cover its current debts, so it is

the appropriate technique to provide Makayla with the information she needs

Capital good and an example (85, EC)

A highway. Capital goods are manufactured or constructed items that are used in the production of goods and services. Highways enable producers to distribute goods to consumers.

Enterprise risk management and a benefit (87,RM)

Consider risks in a positive way. Enterprise risk management focuses on both the downside and the upside of risks. Businesses must take risks to be successful, so utilizing an effective enterprise risk management program gives them the opportunity to take advantage of these risks in the most effective, strategic, and calculated way. In this way, risk leads to increased growth and opportunity

How is standard deviation used and why? (93, NF)

To understand potential risk. Standard deviation is used to measure the differences or distances of data points from the mean of the data set. Analysts often use the standard deviation to help determine an investment's

volatility. An investment with a high standard deviation is more volatile than one with a low standard deviation.

Acting in the company’s best interest when you are a board member is also known as what word. (94, PD)

Fiduciary. A fiduciary duty is the commitment to act in the best interests of another person or organization (even when those interests are at odds with your own). Board members have a fiduciary responsibility to the organization, so they must always act for its benefit.

What is stewardship? (98, FM)

Stewardship. Financial stewardship involves ensuring that a company's financial resources are allocated appropriately and ethically to fulfill the company's mission. In this situation, the Sun Valley Granola Company failed to engage in financial stewardship because it spent more money promoting its products than ensuring that its products were high-quality

What is tokenization and why would a financial company use it.

To protect online transactions. Tokenization is the process of substituting a random number in place of an account number to process the transaction online. In this way, financial institutions are able to protect customer data from fraud

What skills are crucial for finance. (21, PD) 

Soft skills are extremely important. Even though they may not initially seem like they are related to finance, soft skills are important in every industry.

Partial Factor that is used to promote people (79, PD)

Seniority. Seniority refers to the length of time an individual has been employed by a business. Those who have been employed the longest have the most seniority. When all other factors, such as ability and competence, are equal, businesses often promote on the basis of seniority. The feeling often is that a competent person who has been with the company for a long time is entitled to a promotion before a competent person who has less time on the job

Tax Liability (86, FI)

Amount due on an inheritance. A tax liability is a debt, or the total amount of tax an individual owes. There are many types of taxes, and one of them is an inheritance tax. When individuals receive an inheritance, they usually have to pay tax on at least a portion of the inheritance based on the amount of the inheritance. The inheritance tax is a debt that individuals must pay when they receive an inheritance.

What is corporate governance (73, PD)

Corporate governance processes. Internal corporate governance processes, or control mechanisms, include oversight of management, independent internal audits, and the segregation of duties. Internal control mechanisms are designed to ensure smooth day-to-day operations, clarify the chain of command, and measure organizational performance. This example demonstrates the impact of internal corporate governance processes on decision-making and management functions

Quality assurance (68, OP)

Quality assurance is a process businesses use to prevent defective products from being created, not just to eliminate or correct them after they've already been produced.

Characteristic of a legally binding contract. (2023 Area, 1, BL)

Something of value must be exchanged. A legally binding contract must meet two requirements: something of value must be exchanged, and both parties must be in agreement with the terms of the contract.

Advantage of setting ideal standards (5, FI)

Provide a lofty goal for employees to strive for. Some businesses challenge employees by setting ideal standards—standards that are or are almost unattainable because they're set so high

What is a memorandum (10, CO)

Memorandums are a frequently used form of brief, written communication exchanged by people within a business. Memorandums often are distributed to employees within a business to update them on the progress of various projects or inform them of changes in policies and procedures. They are informal and simple because they are intended only for the use of the business's employees.

What is a natural risk. (19, EC)

Natural risks result from causes such as floods, tornadoes, fires, and other conditions of nature. A snowstorm can slow down a delivery service's operations schedule and cost the company heavily through extra labor costs, damage from accidents, and a decrease in customer service.

Budgets are estimates set for specfic time periods.

FI

What is a ticker symbol (37, FI)

The ticker symbol, or call letters, is a system of letters that uniquely identifies a company in a stock (securities) table. Investors and potential investors review the stock tables to assess the performance of their stock or stock they might purchase. Because stock tables have many companies listed, knowing the ticker symbol of a particular stock helps people locate stock information quickly.

On the Over the Counter Bulletin Board (OTCBB) (FI, 41)

Very small companies that don't meet organized exchange listing requirements as well as companies with poor credit ratings are likely to trade their stock on the OTCBB.

The OTCBB is a regulated electronic exchange with no listing requirements. Therefore, stocks traded on the OTCBB are likely to be riskier investments than stocks traded on organized exchanges such as the New York Stock Exchange or the Toronto Stock Exchange.

Feature of a transitional market. (48, FI)

Unstable stock markets in a transitional economy. Emerging markets are growing markets (e.g., stock, bond, commodities, etc.) that result when a country initiates reforms that move it from a closed economy to an open or market economy.

What type of variance analysis involves determining the difference between the standard costs and the actual costs of raw materials used for production? (53, FI)

Purchase price. A variance is the difference between an established standard and the actual outcome. It is important for a business to monitor variances in the price of raw materials because they affect its bottom line.

When a vendor increases the prices that it charges for raw materials, it costs the business (manufacturer) more money to produce an item. The business may need to find a vendor that charges less for the materials or parts, or it may need to increase its selling price—the amount that the business charges its customers for the finished good.

What is Variance analysis (54, FI)

Variance analysis involves determining the difference between actual and planned behavior. In terms of accounting, it involves determining how much actual numbers differ from those projected in the budget. Managerial accountants can use this analysis technique to see how accurate their budgets are.

What does compliance technology help with. (55, BL)

Using compliance technology allows organizations to reduce the costs of compliance. Technology is more efficient, saves time, and can replace expensive labor costs.

How can a financial-information management system contribute to the development of future budget requirements? (58, FM)

Organizing and analyzing past resource usage data. Financial-information management systems help collect, organize, and analyze many pieces of financial data in order to improve a company's finances as a whole. A financial-information management system can take past resource usage information and use it to determine future budget requirements.

Digital microfilm scanner (62, FM)

Businesses must keep a variety of financial information for a certain length of time, often for several years. Many businesses have saved their archived financial information on microfilm. Microfilm is a type of film that stores photographed images and text in a condensed format for easy storage. A digital

microfilm scanner can take existing microfilm, which is older technology, and convert it into a digital format. The advantage to switching microfilm records to a digital format is that businesses can easily view the data on computers and share information quickly through the internet

What is a benefit of managing budgeting data efficiently through budgeting applications (64, FM)

Increases management's confidence in budgets. The efficient management of budget data benefits businesses in a variety of ways, including error detection and control, decreasing the time needed for completing the accounting cycle, and increasing management's confidence, not only in budgets, but also in financial statements and performance scorecards, etc

Benchmarking process (65, FM)

Many financial-analysis software applications can provide users with benchmarking information that compares a company's financial performance with other specific companies in its industry and/or with industry standards.

What is a sponsor in a workplace (66, HR)

The sponsor method of orientation and training involves current employees who volunteer or are asked to be of assistance to the new employee. Sponsors provide job information, advice, and other kinds of job-related help

Most automobile salespeople try to get an idea of what price range the potential customer can afford. This is part of which of the following marketing functions: (67, MK)

Selling. This is a marketing function which involves determining client needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities. Determining an appropriate price range of products to show customers is part of the selling function. Pricing is a marketing function which involves determining and adjusting prices to maximize return and meet customers' perceptions of value. 

True statement about Management Information Systems (72, NF)

It may be one part of a business's overall information management program. A management information system (MIS) is a form of technology that assists with a business's information management needs. It is not the same thing as an information management program; however, it may be one part of an overall information management program.

What is one of the most important components of the production process? (76, OP)

Human resources. Human resources, the people who work to produce goods and services, is one of the most important components of the production process. People are needed to run the businesses, operate the equipment, and deal with customers.

A major purpose of establishing personal goals is to…. (80, PD)

Achieve success in life. Success has been defined as reaching the goals you have set for yourself. By establishing well-defined goals, you can greatly increase the chances of achieving success in life

Business do trade shows to… (84, PD)

Promote their products. One of the main reasons why businesses participate in trade shows is to promote their products to new and existing customers. Businesses display their products at trade shows and have staff on hand to answer questions. Trade shows offer an opportunity for businesses to present their products to many potential customers in one place and at one time

What should a board of directors have (90, PD)

Independent thinking. It is important for members of a corporation's board of directors to be able to think independently. This involves questioning current policies and proposed actions so that the board as a whole act in the best interests of the corporation and its shareholders. Board members should also be open-minded

and willing to listen to suggestions and different opinions so they can make informed, thoughtful decisions.

Which of the following factors differentiates the governance structure of a small business from a large business… (93, PD)

The number of owners. Organizations of all sizes need governance, but governance structures can vary based on the size of the organization. One difference is the number of owners. A large, publicly listed corporation has many owners, while a small- or medium-sized company likely has one or few shareholders.

Whistleblower Policy (94, RM)

One way to manage potential risks resulting from unethical conduct is to build an internal infrastructure that promotes and enforces ethical practices and offers incentives to behave ethically. This internal infrastructure typically includes appropriate audit procedures, a code of conduct, a committee to develop the code, training for employees about the code, and a whistleblower policy. A whistleblower policy encourages and enables employees to report unethical behavior or actions without fear of negative repercussions such as demotion or firing.

Purpose of regulations in finance (2022 Area Finance, 2, BL)

Prevent the banking system from failing. Regulations require safeguards that help ensure that the banking system does not collapse. Regulations aim to prevent and offset the negative effects of bank failures.

Affinity Fraud (5, BL)

Affinity fraud often takes the form of a Ponzi or pyramid scheme and involves targeting members who belong to the same group such as a church, senior citizen's social club, or civic organization. Because the scammer claims an association with the group and often lures group leaders or respected group members into investing in the scheme, other group members may believe that they can trust the scammer, which prompts them to hand over their money for "investment."

Possible tax deductible (7, BL)

A computer for a home-based business. Many business expenses—equipment, supplies, and travel—are tax-deductible under specific conditions. Often, individuals pay for business-related goods and services up front and list them as deductions on their tax returns, which can lower their tax obligation. A computer used for a home-based business is an example of an item that can be claimed as a tax deduction on a

tax return.

Are customers who do not complain a more difficult problem for businesses than customers who do complain (14, CR)

Yes, because the salesperson does not have an opportunity to handle the complaint. Salespeople are not able to satisfy customers who do not complain, because they do not express their dissatisfaction to anyone associated with the business. They do, however, express ill feelings to friends, to relatives, and to coworkers. In this way, they create a poor image of the business. Because of this, they are a much bigger problem than complainers.

External Conflict (30, EI)

An external conflict occurs with one other person or with a group of people. When you have conflicting thoughts or ideas within yourself, it's an internal conflict.

Deposit-taking institutions are commonly responsible for (38, FI)

Making payments on behalf of savers to creditors. Deposit-taking institutions commonly accept deposits (funds) from savers and use those deposits to make payments on behalf of savers to individuals, firms, and creditors to whom the savers owe money

Function of the foreign exchange market. (39, FI)

To trade currency. There are many types of currencies in the world—the yen (Japan), the U.S. dollar (United States), the Euro (European Union), the Peso (Mexico), etc. Each currency's value fluctuates. The foreign exchange market trades one currency for another currency and determines each currency's conversion rate into other currencies.

Securities Tables (46, FI)

Securities tables, often referred to as stock tables or financial tables, are filled with information about the status of different securities. Numbers on securities tables include the 52-week high and low, dividends, volume, yield, P/E ratio, the previous day's ending price, and the net change. By monitoring these numbers, investors can assess the overall health of their investment portfolios over time.

The 52-week high and low can tell investors… (47, FI)

If it is a good time to buy or sell. The 52-week high and low represent the lowest and highest price at which a stock has been traded during a year's time. It can tell investors whether the current price is a

good one at which to sell or buy based on its history.

When people act unethically what should happen (49, FI)

The colleagues involved. When a financial professional is aware that an unethical action is occurring, the first party they should talk to is the person or people involved directly. Angelica should have a conversation with her colleagues to help clarify the details of the situation and make sure that the other parties are aware of her concerns.

qualitative information versus numerical data is in what costs. (50, FI)

Opportunity costs. Opportunity costs usually require the analysis of qualitative information such as a supplier's reputation for quality or service that can make an impact on the business versus numerical data.

Which of the following cost classifications can help a decision maker determine how well different department managers performed (53, FI)

Classification by controllability. Classification by controllability, which is based on a manager's control over particular costs, helps an organization determine how well its managers handle costs that they personally impact.

Function of cost accounting budgets (56, FI)

Controlling finances. Budgets are financial plans that are used to project revenue and expenses. The aim of budgets is to control finances.

Which of the following is a technique that a business could use to analyze its customer financial information: (66, FM)

Comparing profit ratios by region. Customer financial information can be useful in business decision- making when it is analyzed. One example of a technique that a business could use would be comparing

profit ratios among different regions. This could tell the business which market segments are most profitable, which could inform future decisions.

What is a purpose of standard cost systems? (68, FI)

To evaluate performance. Standard cost systems are used to determine variances between forecasted costs and actual costs, thereby evaluating a business's performance.

acceptable file name for a word-processing document: (70, NF)

Office Calendar 3 30 2021. Because it doesn’t use any prohibited characters are the following: \ / : * ? < > | . If you try to use any of those particular symbols in a file name, you'll get a message that your file name is invalid, and you'll have to choose a new name for the file. Of the list of file names provided, only "Office Calendar 3 30 2021" is acceptable because it is the only name without any prohibited symbols.

online technology's use increased in financial-information management increased bc? (80, FM) 

Passage of laws that recognize electronic documents as legally binding. As businesses have become more comfortable with the use of electronic information, their willingness to accept electronic documents as legally binding contracts has also increased. This has been buoyed by the passage of laws recognizing electronic documents and signatures as legally binding.

Well-executed corporate governance ensures that an organization is managed in a way that is (86, PD)

Beneficial for all stakeholders. Corporate governance refers to the way an organization is managed at the highest level. Well-executed corporate governance has many benefits, including corporate success and economic growth, investor confidence, and positive brand development.

Ethical financial-information management practices make a business (88, PD)

More attractive to investors and customers. When a company is publicly clear and ethical about its financial-information management tactics, it appears more trustworthy to investors and customers.

How can an accountant best contribute to an organization's governance objectives (87, PD)

Allocating funds for the objectives in the budget. For an organization to meet its governance objectives, all members must be working toward them. An accountant can contribute to this process by understanding governance objectives and accounting for them in the budget.

One reason why companies implement protocols, policies, and procedures is to (93, PD)

Reinforce company values. A company's policies and procedures essentially lay out what is most important to the organization, helping employees and customers better understand the company's mission, vision, and values.

what is a narrow span of control (100, SM)

An organization with a narrow span of control is one in which managers have a small number of direct reports. Liz only has two employees reporting to her, so she is a manager with a narrow span of control. A wide span of control means that the organization has managers with a large number of direct reports. A wide span of control creates a flat structure or organization.

Debtor and creditor relationship in a credit union. (2021 Area Finance, 3, BL)

Voluntary. The debtor is the individual or business that owes money to another individual or business (creditor). An individual or business that obtains a credit card from a financial institution or retailer is entering into a voluntary debtor-creditor relationship, which means that both the debtor and the creditor enter the relationship willingly and understand the risks and expectations regarding the extension and use of credit.

Group Affinity fraud (5, BL)

Group affinity fraud typically involves a scammer who either claims or actually is a member of the investor's group. In this case, the man is a member of the same health club and attends the same church as Alice. Because the scammer is a member of the same group, investors may falsely believe they can trust the scammer, especially if the scammer has lured in a few well-respected group members (like the minister or the gym manager) to buy into the scam early on.

What is taxed from an IRA (6, BL)

D

Contributions are taxed, but withdrawals during retirement are not. Contributions paid into Roth Individual Retirement Accounts (IRAs) are taxed. But, earnings on the growing funds in the account and withdrawals during retirement are tax-free. Unlike Roth IRAs, contributions to traditional IRAs are tax deductible, but investors must pay taxes on the withdrawals they make from these accounts during retirement.

What do you put in a letter of inquiry (10, CO)

Your contact info