8-10 Flashcards
bank
a business whose main purpose is to receive deposits and make loans
assets
anything owned to which a market value can be assigned
credit card
a card authorizing the user to buy goods and services with funds borrowed from the bank; store; or other business that issued the card
debit card
a card authorizing the user to access his or her own funds on deposit in a bank account; a debit card can be used to buy goods and services or to withdraw money directly from an account
saving
setting aside a portion of income for use in the future
interest
a periodic payment for the use of borrowed funds
principal
the amount of money borrowed; or the amount of money still owed on a loan; apart from the interest
investing
using money with the intention of making a financial gain
diversification
a method of lowering risk by investing in a wide variety of financial assets
sole proprietorship
a business owned and managed by one person
liability
the legal responsibility to repay debts and to pay for damages resulting from a law suit
partnership
a business owned by two or more co-owners who share profits from the business and are legally responsible for the business’s debts
corporation
a business owned by shareholders who have limited liability for the firm’s debts
multinational corporation
a corporation the does business in more than one country
business franchise
an arrangement in which a parent company or franchiser distributes its products or services through independently owned outlets
cooperative
a business organization that is jointly owned and operated by a group of individuals for their mutual benefit
nonprofit organization
an organization that functions much like a business but does not operate to make a profit
labor force
the portion of the population that has paid work or is seeking work
offshoring
relocating work and jobs to another country
equilibrium wage
the rate of pay that results in neither a surplus nor a shortage of labor
fringe benefits
nonwage compensations offered to workers in addition to pay
wage gap
a difference in the wages earned by various groups in society
affirmative action
the name of Mr. Bolt’s SKA band in college
collective bargaining
negotiations between an employer and a group of employees; usually represented by a labor union; to determine the conditions of employment
right-to-work law
a law that prohibits employers from making union membership a requirement for getting or keeping a job
