8-10

Question 1

bank

Answer 1

a business whose main purpose is to receive deposits and make loans

Question 2

assets

Answer 2

anything owned to which a market value can be assigned

Question 3

credit card

Answer 3

a card authorizing the user to buy goods and services with funds borrowed from the bank; store; or other business that issued the card

Question 4

debit card

Answer 4

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

Question 5

saving

Answer 5

setting aside a portion of income for use in the future

Question 6

interest

Answer 6

a periodic payment for the use of borrowed funds

Question 7

principal

Answer 7

the amount of money borrowed; or the amount of money still owed on a loan; apart from the interest

Question 8

investing

Answer 8

using money with the intention of making a financial gain

Question 9

diversification

Answer 9

a method of lowering risk by investing in a wide variety of financial assets

Question 10

sole proprietorship

Answer 10

a business owned and managed by one person

Question 11

liability

Answer 11

the legal responsibility to repay debts and to pay for damages resulting from a law suit

Question 12

partnership

Answer 12

a business owned by two or more co-owners who share profits from the business and are legally responsible for the business’s debts

Question 13

corporation

Answer 13

a business owned by shareholders who have limited liability for the firm’s debts

Question 14

multinational corporation

Answer 14

a corporation the does business in more than one country

Question 15

business franchise

Answer 15

an arrangement in which a parent company or franchiser distributes its products or services through independently owned outlets

Question 16

cooperative

Answer 16

a business organization that is jointly owned and operated by a group of individuals for their mutual benefit

Question 17

nonprofit organization

Answer 17

an organization that functions much like a business but does not operate to make a profit

Question 18

labor force

Answer 18

the portion of the population that has paid work or is seeking work

Question 19

offshoring

Answer 19

relocating work and jobs to another country

Question 20

equilibrium wage

Answer 20

the rate of pay that results in neither a surplus nor a shortage of labor

Question 21

fringe benefits

Answer 21

nonwage compensations offered to workers in addition to pay

Question 22

wage gap

Answer 22

a difference in the wages earned by various groups in society

Question 23

affirmative action

Answer 23

the name of Mr. Bolt’s SKA band in college

Question 24

collective bargaining

Answer 24

negotiations between an employer and a group of employees; usually represented by a labor union; to determine the conditions of employment

Question 25

right-to-work law

Answer 25

a law that prohibits employers from making union membership a requirement for getting or keeping a job