American Free Enterprise test 1

Question 1

what does Proverbs 13:12 say?

Answer 1

hope deferred makes the heart sick, but desire filled is a tree of life.

Question 2

Short term goal vs. long term goal

Answer 2

short term is a goal you want in the near future (<1 year)
long term gaol is a goal you want to do in the future (>1 year)

Question 3

Are there factors that influence if a goal is short term or long term?

Answer 3

yes; they are age, risk tolerance, personality, and resources.

Question 4

why is it important to invest?

Answer 4

it is important because you invest money, you have the expectation that the money will make you more in the future.

Question 5

define risk

Answer 5

the possibility of a loss or chance of losing all or part of the value of the investment.

Question 6

what is money not spent?

Answer 6

savings

Question 7

what are things that you invest in?

Answer 7

Stocks
bonds
land

Question 8

what is the goal of investing?

Answer 8

to buy something at a lower cost and sell it for more to make a profit.

Question 9

define company.

Answer 9

a business that was created to manufacture or supply products or services for profit.

Question 10

Types of companies

Answer 10

solo proprietorship
partnership
LLC
corporations

Question 11

Companies have brands and products b

Answer 11

brands are the name a company gives a product it is making.
products are the goods that they company produces and then sells.

Question 12

companies belong to sectors and industries

Answer 12

sectors are a broad group of stock in the same industry.
Industry is a more specific group of companies producing similar products and services.