Praxis Business Education - Content Knowledge (5101): Practice & Study Guide Final Exam

incubator

An established business that provides resources, such as money, technology, office space, or marketing, in exchange for equity ownership in a new business

The first step in the Accounting Cycle

Examine source documents

Materiality Principle

The measure of importance of a misstatement in accounting records is Generally Accepted Accounting Principles (GAAP)

low level managers

Typically a first-line management position, such as team leader or supervisor, a person in charge of smaller work units composed of hands-on workers.

Marketing

Activities that are used to educate, promote, and inform consumers about a product or service

Decision Making Reports

The type of informational report that contains facts about monitoring and controlling operations, and which also serves to provide feedback on a company's operations

Job Application Process

Preparing a series of thoughtful and well-researched questions ahead of an interview reflects an applicant's knowledge of the organization and job description.

device driver

Program files that enable an operating system (OS) to recognize hardware devices and their respective properties

Syncing

The process that ensures that the files on two different devices are updated using specific rules

Tariffs

Taxes on imports or exports and Ad valorem and flat assessments

Convention

An agreement that addresses matters of great importance between countries, which is often negotiated through international organizations such as the United Nations (UN), International Monetary Fund (IMF), or World Bank on a regional or global basis

Unique selling position

Advertising materials produced to promote a large IT consulting firm tout the superiority of the corporation's service in terms of timeliness and overall customer satisfaction in comparison to the company's competitors.

automatic stabilizers

fiscal policy consisting of tax structures and government spending programs which lead to larger budget deficits during recessions and larger surpluses during expansions, and which tend to offset fluctuations in economic activity without direct intervention from policymakers

T account

The visuals used by accounting professionals to see how accounts are affected by the debits and credits of business transactions

close

Of the seven steps that can be used to create an effective persuasive presentation of ideas from a sales standpoint

FDIC (Federal Deposit Insurance Corporation)

The organization which insures a bank up to $250,000

patent

(n.) exclusive rights over an invention; copyright; (v.) to arrange or obtain such rights; (adj.) plain, open to view; copyrighted

absolute advantage

the ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources

Gross Income

the total amount of money made in one year by a person, household, or family unit

deficit

An excess of federal expenditures over federal revenues.

profit

A financial gain, esp. the difference between the amount earned and the amount spent in buying, operating, or producing something

surplus

A situation in which quantity supplied is greater than quantity demanded

obsolescence

state of being no longer useful or in fashion

Trademark

the exclusive right to use a brand or part of a brand

Copyright

the exclusive legal right, given to an originator or an assignee to print, publish, perform, film, or record literary, artistic, or musical material, and to authorize others to do the same.

product line

a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

regressive tax

A tax for which the percentage of income paid in taxes decreases as income increases

sales tax

a tax on the dollar value of a good or service being sold

FIFO

first in first out

How many Federal Reserve Districts are there?

12

commodity

a product that is the same no matter who produces it, such as petroleum, notebook paper, or milk

labor union

an organized association of workers, often in a trade or profession, formed to protect and further their rights and interests.

Strength (SWOT)

internal capabilities that may help a company reach its objectives

analysis

Planning or long term planning done by management

insurance rider

written form attached to an insurance policy that alters the policy's coverage

Theory X management

assumes employees are inherently lazy and will avoid work so the management believes that workers need to be closely supervised

Theory Y management

manager gives employees responsibility, looks for input. Good for high level jobs

non-profit

An organization that is set up to help those in need but not to make a profit from the business.

G8

The following group of eight industrialized nations: Britain, Canada, France, Germany, Italy, Japan, Russia, and the United States.

net worth

the difference between assets and liabilities

proxy

(n.) an agent, substitute; a written permission allowing one person to act in another place

Certificate of Deposit

A savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.

LPC

least preferred coworker

Demographics

the characteristics of a population with respect to age, race, and gender.

business plan

a formal written document that describes the nature of a business and how it will operate

eCommerce / eBusiness

eCommerce: Infrastructure and data that allow one or more types of online or electronic transactions:

non-durable goods

goods that last a short period of time, such as food, light bulbs, paper back books, and sneakers

Gross Domestic Product (GDP)

A measurement of the total goods and services produced within a country.

Corporation

A business owned by stockholders who share in its profits but are not personally responsible for its debts

market economy

an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services