Economics and Business Review Flashcards

Flashcards for review of economics, finance, and business concepts.

Accounting

The function of business that involves maintaining and auditing records, sending out and paying bills, and preparing financial reports for a business.

Marketing

The process of planning, pricing, promoting, selling, and distributing ideas, goods, and services.

Advertising

Paid, non-personal form of communication that businesses use to promote their products and services.

Entrepreneurship

A person who recognizes a business opportunity and organizes, manages, and assumes the risks of starting and operating a business.

Sole Proprietorship

A business owned by only one person.

Target Market

A group of people that a company will change its marketing plan to better fit with.

Consumer

A person who uses goods and services.

Bankruptcy

Legal process in which a borrower is relieved of debts after showing an inability to pay.

Product

Something a company can change when selling goods or services in a foreign country to try to get more people there to buy from them other than promotion.

Cultures

Something companies need to take into consideration of different countries when creating and promoting different products.

Unlimited wants

People have endless desires for goods and services.

Limited resources

The availability of resources like land, labor, and capital is finite.

Scarcity

The fundamental economic problem arising from unlimited wants and limited resources, forcing choices and trade-offs.

Interest rate

The percentage charged on borrowed money.

Fees

Additional charges like annual fees, late fees, and over-limit fees.

Credit score

A measure of creditworthiness that affects interest rates.

Loan term

The length of time to repay the loan.

Bodily Injury Liability Insurance

Covers injuries to others in an accident caused by the policyholder.

Comprehensive Insurance

Covers damage to the policyholder's vehicle from non-accident causes (e.g., theft, vandalism, natural disasters).

Collision Insurance

Covers damage to the policyholder's vehicle in an accident.

Deductible

The amount the policyholder pays out-of-pocket before the insurance company covers the claim.

Policyholder

The person who purchases the insurance policy and is covered by the policy in case of an accident.

Claim

A formal request for payment from an insurance company.

Premium

The regular payment made to maintain insurance coverage.

Credit

A financial arrangement that allows individuals to borrow money or goods and services with the promise to repay later.

Buying on credit

Acquiring goods or services now and paying for them over time.

Late payments

Missing payments on debt.

High credit utilization

Using a large amount of your available credit.

Opening too many new accounts

Opening many credit lines in a short amount of time.

Defaulting on loans

Failure to repay a loan according to the agreed terms.

Traditional savings accounts

Low interest rates, easy access. (Type of savings account)

High-yield savings accounts

Higher interest rates, limited withdrawals. (Type of savings account)

Money market accounts

Higher interest rates, check-writing privileges, and minimum balance requirements. (Type of savings account)

Certificate of Deposit (CD)

Fixed interest rate, fixed term, penalty for early withdrawal. (Type of savings account)

Budget

A financial plan that tracks income and expenses to manage money effectively.

Secured loan

A loan backed by collateral, an asset that the lender can seize if the borrower defaults on the loan.

Collateral

An asset pledged to secure a loan.

Fair Credit Billing Act

Limits a consumer's liability for unauthorized charges on credit cards to $50 if reported promptly.

Identity theft

Occurs when someone steals personal information to commit fraud.

Command economy

Centralized planning, government control over resources and production. (Type of economic system)

Market economy

Decentralized decision-making, private ownership, and competition. (Type of economic system)

Mixed economy

Combines elements of both command and market economies, with government intervention and private enterprise. (Type of economic system)

Business plan

A detailed document outlining a business's goals, strategies, and financial projections.

Marketing

Involves identifying, anticipating, and satisfying customer needs and wants profitably.

Warranty

A guarantee from the manufacturer or seller that a product will perform as expected for a specific period.

Product liability

The legal responsibility of manufacturers for injuries or damages caused by defective products. Manufacturers are responsible for ensuring product safety and quality.

Right to safety

Products should be safe to use. (Consumer right)

Right to be informed

Consumers should have access to accurate information about products. (Consumer right)

Premium

The regular payment made to maintain insurance coverage.

Co-pay

A fixed amount paid by the policyholder for a medical service.