Business and Economics Lecture Review

Comprehensive flashcards covering currency, banking systems, business ownership structures, labor market statistics, the glass ceiling, and labor relations based on lecture notes.

What are Rai Stones?

Large stones used as a form of currency in Yap, which relies on an oral history of ownership for transactions.

How is the function 'Medium of Exchange' defined in the context of money?

A function of money that allows it to be accepted as payment for goods and services.

What is 'Store of Value' regarding money?

A function of money that allows it to hold value over time, enabling savings.

What is the 'Unit of Account' function of money?

A function of money that provides a standard measure for valuing goods and services.

What is Cryptocurrency?

Digital currency created using encrypted algorithms, existing outside of any government.

Which cryptocurrency is identified as the most popular form?

Bitcoin

What are Crypto Wallets used for?

Tools used to store encryption keys to confirm identity and link currency.

By how many countries is the Euro (EUR) used?

$19$ countries of the European Union.

What is the currency of Japan?

Yen (JPY)

What is the Pound (GBP) also known as?

Pound Sterling

According to the transcript, how many countries use their own version of the Mexican Peso (MXN)?

$8$ countries

What does the Banking Industry include?

Commercial banks, savings banks, and credit unions, all of which are profit-seeking institutions.

What is 'Interest' in the banking sector?

The price paid for the use of borrowed money and a primary revenue source for banks.

How much does the FDIC insure deposits up to?

$$250,000$$

What is a Mortgage?

A type of loan used to purchase real estate.

What are Credit Cards?

Tools that entitle holders to purchase goods and services based on a promise to pay.

What functions do Automated Teller Machines (ATMs) perform?

They allow customers to deposit money, withdraw cash, and obtain account information.

What is the primary function of Debit Cards?

They are used to withdraw money directly from a checking account.

What are the primary sources of Bank Profit?

Customer deposits, interest from borrowers, and fees for services.

What causes money to leave a bank?

Interest and withdrawals to customers, loans provided, and costs of doing business.

What is a Sole Proprietorship and what percentage of U.S. businesses does it represent?

A business owned by a single person, accounting for $70$ percent of U.S. businesses.

What are the advantages of a Sole Proprietorship?

Easy to start/close, few rules, keeps all profits, and full control.

What are the disadvantages of a Sole Proprietorship?

Limited money, short life, and unlimited liability.

What is 'Unlimited Liability'?

A situation where an owner is personally responsible for all debts of the business.

How is a General Partnership defined?

The most common type of partnership where partners share responsibilities and liabilities equally.

What is a Limited Partnership?

A partnership with at least one general partner who runs the business and is liable for debts, while limited partners have limited liability.

What defines a Limited Liability Partnership (LLP)?

A partnership where all partners have limited liabilities and are not responsible for another partner's debts.

What are the advantages of a Partnership?

Easy to start, more money, shared decisions, and specialization.

What are the disadvantages of a Partnership?

Unlimited liability, possible conflicts, and limited life if a partner leaves.

In a Corporation, what rights do stockholders have?

They have rights to profits and limited liability.

What is the difference between a Public Company and a Private Company?

A Public Company issues stock that can be freely bought and sold, while a Private Company controls who can buy or sell its stock.

What are the advantages of a Corporation?

The ability to raise lots of money, limited liability, and unlimited life.

What are the disadvantages of a Corporation?

Hard to start, many regulations, double taxation, and less control for founders.

What is a Horizontal Merger?

A merger that joins companies with the same or similar products.

What is a Vertical Merger?

A merger that joins different steps of production or marketing.

What is a Conglomerate?

A corporation that combines companies with unrelated products.

What is a Multinational Corporation?

A business that has branches in several countries.

What is a Franchise and what is a Franchisee?

A Franchise is a business licensing the right to sell products; a Franchisee is an individual or company paying a fee to a parent company for those rights in a specific area.

What are the advantages and disadvantages of Franchises?

Advantages: Independence, training, cheaper supplies, advertising support. Disadvantages: Startup cost, shared profits, limited control.

What is a Nonprofit Organization?

A business that operates for the benefit of society and is often funded by donations.

What is the 'Glass Ceiling'?

An invisible barrier that prevents individuals, mainly women and minorities, from being promoted to managerial and executive-level positions.

What was the percentage of women in the labor force in 2021?

$$56.8\%$$

What were the gender and racial demographics for chief executive positions?

$29.1\%$ were women, and $85.7\%$ were identified as white.

How long is Paid Family Leave in California (CA)?

Up to $6$ weeks.

What are the minimum Paid Family Leave mandates in the European Union?

A minimum of $14$ weeks of maternal leave and $2$ weeks of paternal leave.

What does the 'Glass Cliff' refer to?

The tendency for women to be promoted during times of crisis when failure is more likely.

Who are the notable examples of women breaking the glass ceiling in the U.S.?

Hillary Clinton (first female Democratic nominee), Kamala Harris (first female Vice President), and Janet Yellen (first female Treasury Secretary).

What is the 'Pink Tax'?

The increased price of items aimed at women.

What were the statistics regarding sexual harassment of women in the workforce in 2018?

$68\%$ of women experienced sexual harassment, with $70\%$ of cases occurring at work.

Who is included in the Civilian Labor Force?

All nonmilitary people who are employed and unemployed.

What are the criteria to be considered 'Employed'?

Individuals $16$ and older who worked at least $1$ hour for pay, worked $15$ or more hours without pay, or held jobs but did not work due to certain conditions.

What are the criteria to be considered 'Unemployed'?

Individuals $16$ and older who do not have a job, actively looked for work in the prior $4$ weeks, and are available for work.

What is the 'Learning effect' vs the 'Screening effect'?

Learning effect: Education increases productivity resulting in higher wages. Screening effect: College completion indicates an applicant is intelligent and hard-working.

What is Contingent employment and what are its benefits for firms?

Temporary or part-time employment; benefits include flexible arrangements, ease of discharge, and lower costs/fewer benefits.

Differentiate between the four categories of labor (Unskilled, Semi-Skilled, Skilled, Professional).

Unskilled: No specialized skills/training (waiters); Semi-Skilled: Minimal specialized skills (forklift operators); Skilled: Specialized training (mechanics); Professional: Advanced education (lawyers).

What does the Equal Pay Act mandate?

That men and women in the same workplace be given equal pay for equal work.

What is the purpose of a Union?

To improve working conditions, wages, and benefits for its members.

Differentiate between Mediation and Arbitration.

Mediation: A neutral mediator helps sides find an acceptable solution. Arbitration: A third party imposes a legally binding decision.

What are 'Right to Work' Laws?

Laws that ban mandatory union membership at the workplace.

What is Collective Bargaining?

The process where union and company representatives negotiate a new labor contract regarding wages, conditions, and benefits.