Business final

What is brand comparison in business?

The evaluation of different brands based on various factors such as quality, price, reputation, and customer service to make informed purchasing decisions.

What does the business cycle refer to?

 The fluctuation in economic activity that an economy experiences over time, characterized by periods of expansion and contraction.

What is budget planning?

The process of creating a plan for spending and saving that helps manage financial resources effectively.

What is capital loss?

The loss incurred when an investment is sold for less than its purchase price, potentially offsetting capital gains for tax purposes.

What are characteristics of a good budget?

A well-structured budget should be realistic, flexible, achievable, and comprehensive, incorporating all sources of income and expenses.

What are common reasons why new businesses fail?

Key factors contributing to failure include lack of market research, insufficient capital, poor management, and strong competition.

What is a cooperative business?

An organization owned and operated by a group of individuals for their mutual benefit, often focusing on providing goods or services to its members.

What is copyright?

A legal right that grants the creator of original works exclusive control over their use and distribution, protecting intellectual property.

What does corporate stock represent?

Shares of ownership in a corporation, representing a claim on part of the company’s assets and earnings.

Who are credit card convenience users?

Individuals who use credit cards primarily for the convenience of transactions and pay off their balances in full each month to avoid interest charges

What are the drawbacks of credit use?

Potential downsides include accumulating debt, interest costs, and the risk of negatively impacting credit scores.

What is a demand deposit?

A bank account from which funds can be withdrawn at any time without any advance notice, commonly known as a checking account.

What constitutes an effective financial plan?

A comprehensive strategy to manage financial resources, including budgeting, saving, investing, and planning for future needs.

Where is the fastest growing job market?

Arizona

What is the Federal Reserve System?

The central banking system of the United States, responsible for regulating monetary policy, supervising and regulating banks, and maintaining financial stability.

What are fee-offset planners?

Financial planners who charge fees for their services but invest client money in affiliated products that generate revenue to offset those fees.

What is a finance charge?

The cost of borrowing money, typically expressed as a dollar amount or as an annual percentage rate (APR) on outstanding credit.

What are financial plans?

Strategic outlines that detail an individual or organization's financial goals and the steps needed to achieve them, including saving, investment, and expenditure strategies.

What are the functions of money?

Money serves several key purposes, including a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.

How can you predict how well the economy is doing?

Economic indicators such as GDP growth, unemployment rates, inflation rates, and consumer spending can provide insights into economic performance.

What is inflation?

The rate at which the general level of prices for goods and services rises, eroding purchasing power over time.

What is an informational interview?

A meeting in which an individual seeks advice and insights about a career or field from someone experienced in that area, often used for networking and career exploration.

What is an intern?

A student or recent graduate undergoing practical training in a professional setting to gain experience and enhance their employability.

What is the Legal Aid Society?

An organization that provides legal services and support to individuals who cannot afford them, typically focusing on civil legal issues.

What is leisure time?

Free time that individuals can spend away from obligations, work, or studies, often used for relaxation or recreational activities.

What is a Limited Liability Company (LLC)?

A flexible business structure that combines the benefits of a corporation and partnership by protecting its owners' personal assets from liability.

What is a Limited Life Partnership?

formed by investors who are pooling their money to invest in assets such as real estate, formed by investors who are pooling their money to invest in assets such as real estate, Management of a checking account: regular checking, interest earning accounts

What does the management of a checking account involve?

It involves monitoring deposits, withdrawals, maintaining accurate records, and ensuring sufficient funds to avoid overdrafts.

What are market forces?

Factors that influence the prices and behaviors of goods and services in the marketplace, including supply and demand, consumer preferences, and competition.

Who is a mentor?

An experienced and trusted advisor who provides guidance, support, and knowledge to a less experienced individual in a specific field or profession.

What is property tax?

A tax raised by the government on real estate properties, usually based on the property’s assessed value.

What is reserve capital?

Funds set aside by a business or individual for unexpected expenses or future needs, acting as a financial cushion.

What is a secured loan?

A type of loan that is backed by collateral, reducing the lender's risk in the event of default, typically involving lower interest rates than unsecured loans.

What is the Securities and Exchange Commission (SEC)?

A U.S. government agency responsible for enforcing federal securities laws, regulating the securities industry, and protecting investors.

What are services in business?

Intangible goods provided to consumers or businesses that fulfill a need, such as consulting, education, or healthcare.

What is specialization?

The process by which individuals or businesses focus on a limited scope of products or services to gain efficiency and expertise.

What is a speculative investment?

Investments made with the hope of significant returns, often involving higher risk, such as stocks or cryptocurrencies.

What are the steps in balancing a checkbook?

The process involves recording transactions, checking against bank statements, adjusting for errors, and ensuring that the checkbook balance matches the bank statement balance.

Who are stockholders?

Individuals or entities that own shares in a corporation and have a claim to a part of the company's profits, often through dividends.

What is a tax credit?

 subtracted directly from your gross income

What are tax-exempt benefits?

Financial perks that are not subject to taxation, such as certain retirement plan contributions, health benefits, and educational assistance.

What is annual percentage yield?

The amount of interest that a $100 deposit could earn, after compounding, for one year.

What are cafeteria-style employee benefits?

Programs that allow workers to choose the benefits that best meet their personal needs.

What is a career?

A commitment to work in a field that you find interesting and fulfilling.

What is a certificate of deposit?

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

What is a chart of accounts?

Lists all of the general ledger accounts that a business will use.

What is a commercial bank?

A for-profit institution that offers a full range of financial services, including checking, savings, and lending; these banks serve individuals and businesses.

What is compounding?

The process in which interest is earned on both the principal and the original amount you deposited and on any previously earned interest.

What is cooperative education?

Programs that allow students to enhance classroom learning with part-time work related to their majors or interests.

What is a credit union?

A non-profit financial institution that accepts deposits, makes loans, and provides a wide array of other financial services and products.

What is a debit card?

A cash card that allows you to withdraw money or pay for purchases from your checking or savings account.

What are demographic trends?

Tendencies of people grouped by age, gender, ethnicity, education, or income that change over time.

What is direct deposit?

Automatic deposit of net pay to an employee's designated bank account.

What is endorsement?

The signature of a payee.

What is financial forecasting?

The process of using past financial data and current market trends to make educated assumptions for future periods.

What are fixed expenses?

A set amount of money spent every time you purchase.

What are interest inventories?

Tools that help people identify their interests and match them with potential careers, educational programs, and leisure activities.

What is a money market account?

A type of deposit account offered by banks and credit unions that typically earns a higher interest rate than a regular savings account.

What is networking?

A way of making sure and using contacts to get job information and advice.

What is operating capital?

The cash used for daily operations in a company for the first few months or year.

What is a pension plan?

A retirement plan that is funded at least in part by an employer.

What is potential earning power?

The amount of money that can be earned over time.

What is a projected balance sheet?

estimate of the future assets, liabilities, and net worth of a business

What are projected financial statements?

Statements that predict the financial position of a business of the months and years to come

What is a projected statement of cash flows?

The analysis of the amount of cash an owner anticipates will be availible in his or her business of the future

What is the rate of return?

The percentage of income in the value of your savings from earned interest.

What is reserve capital?

Money set aside for unexpected costs or opportunities.

What is a résumé?

A one or two-page summary of your education, training, experience, and qualifications.

What is the standard of living?

A measure of quality of life based on the amounts and kinds of goods and services a person can buy.

What is start-up capital?

The money required to start a business.

What are variable expenses?

Costs that can change monthly.