Intro to Business Concepts

market

The economic system generally found in countries with democratic governments is

supply

The quantity of a good or service that businesses are willing and able to sell at a particular price is called

service

The type of business that does something for you rather than providing products is called

corporation

A business venture owned by shareholders is known as a

product, distribution, promotion, pricing

The four marketing mix elements are

promotion

Reinforcing the purchase decisions, or simply reminding customers that they have made the right choice, is a function of

currency exchange rate

The value of one currency compared with the value of another is the

industrial diamonds

Which of the following raw materials are 100% imported into the US?

gas, electricity, water

Public utilities provide

start-up financing

the amount of money needed to open the business is

financial records

What records are used to analyze the financial performance of a business

budgets, payroll records, financial statements

Spreadsheet software is used to prepare

advertise products to computer users in their homes

An online computer service would allow a company to

the service-producing industry

Someone who works in a fast-food restaurant is working in

a decrease in job opportunities

Downsizing of a business would cause

They have control of their lives

What characteristic best describes small business owners

satisfied customers

What determines whether businesses can make sales, earn profits, and remain in business?

value of any alternative that you give up when you make another choice

What best describes opportunity cost?

11 cents

If a 10-ounce can of juice costs $1.10, the unit price per ounce is

guarantee

The promise by a manufacturer or dealer that a product is of a certain quality is called a

restaurant

Which of the following sources does not sell money orders

federal reserve system

The federal government agency involved in check clearing activities is the

outstanding

Which check is one that has not yet been presented for payment

report transactions for a checking account

The purpose of a bank statement is to

checkbook register and reconciliation form

When looking at the bank statement and completing the reconciliation process, the interest earned as well as any deposit made should be added to the

a budget charge account

A charge account in which you agree to pay a fixed amount each month to cover purchases of gas or electricity is called

a promissory note

A written promise to pay based on a debtor’s excellent credit rating is known as

Shopping for credit involves determining the cost of credit

Which of the following statements is true about credit and its costs?

cost of processing loans or charge accounts, cost of investigating credit histories, cost of collecting bad debts

Which of the following are costs of credit in addition to interest charges?

treasury bill

An example of a debt security is a

the individual becomes part owner in the business

Which of the following best describes investing in stocks

these can combine a pleasurable hobby with an investment that may increase in value, these can be baseball cards, these can be antiques

Which of the following would be true of collectibles

the interest rates are commonly set for short periods of time, and do not change during the term of the mortgage

Which of the following is not true of a home mortgage

self-insurance

When an individual or business assumes total risk of economic loss, the type of insurance is?

uninsured motorist protection

Which type of automobile insurance protects you against damage caused by a hit-and-run driver?

the age of the driverm the driver’s accident record, the purpose for which the car is used

Which of the following determines the cost of automobile insurance?

estimated danger of loss based on insurance company’s past experiences

The most important factor in an insurance company’s decision on the price you pay for homeowners insurance is

$75,000

If your home is insured for $150,000 and the homeowners policy provides property coverage at 50 percent, the coverage amount is

decreasing term insurance

Term life insurance on which the amount of protection gradually becomes smaller but the premiums remain the same during the term is

permanent term insurance

A type of insurance that has cash value and an investment feature as its common characteristics is

beneficiary

The person named in the insurance policy who will receive the benefits is the

25,000,000,000

Dental insurance is growing in popularity with annual claims exceeding

they have a budgeting feature, they pay your bills, they keep track of your account

Why are software programs used in budgeting?

financial planning

Evaluating one’s financial position, setting financial goals, and guiding activities and resources toward reaching those goals is

a series of regular payments made to a retired worker under an organized plan

Which of the following best describes pension?

on a regular basis

Your financial plan should be evaluated

the basis economic problem

Member of a family might not be able to afford things they want because of an economic factor called

the total value of all final goods and services produced in a year

Gross domestic product is

buy products, use services, employ workers

Businesses affect a community when they

shareholders

People who become part owners of a corporation are called

media advertising

Today most promotion is done through

assets and liabilities

A balance sheet links

store, process, and report information

The major reason businesses use computers is to

output

Printers are used most commonly in which phase of a computer system

database

To maintain a home inventory or another list, a person would probably use which kind of software

computer literacy

A person’s ability to use computers to process information or solve problems is commonly called

following prescribed steps leads to decisions that are always right

Which of the following is not true about making career decisions

getting assistance from the SBA

Which of the following is not a part of the definition of entrepreneurship

no-frills food outlet emphasizing the sales of large quantities of items at reasonable prices

A warehouse market is a

a price index

A series of figures showing how prices have changed over a period of years is

the Federal Trade Commission, the Office of Consumer Affairs, Better Business Bureaus

The agency or agencies that help protect the consumer’s right to be heard are

its members

A credit union is owned by

manage other people’s money and property

The main purpose of a trust company is to

certified check

A personal check for which a bank has guaranteed payment is called a

to make it easier to compare the cost of credit

What is the major purpose of having the APR stated?

investing

Using your money to earn more money is commonly called

earnings are based on a variable interest rate

A money market account differs from a regular savings account in that

an unusually high risk

A speculative investment usually involves

property risk

The risk of damage to or loss of property due to theft, wind, fire, flood, or some other hazard is

assets

Items of value are

True

As long as permanent policies are kept in force, they accumulate cash value plus provide life insurance

False

When preparing a bank reconciliation, an outstanding check must be added to the bank-statement balance

False

The drawer of a check is the bank or financial institution

False

A blank endorsement usually includes the words “For deposit only”

True

An example of government protection is through contracts

True

Labor contracts sometimes have clauses relating to working conditions

False

Unemployment insurance helps replace income that is lost when you cannot work because of an illness or injury

True

A stock exchange is a place where representatives of buyers and sellers meet to conduct business

False

The market value of a stock is set by the company that issues the stock

True

The maturity date is the date on which the loan must be repaid