business Flashcards
Purchasing Power
The amount of goods and services you can purchase with a given type of currency
Income
The amount of money that an individual receives from various sources.
Gross income
The amount of money a person makes before tax
Disposable income
The amount of money a person makes after tax
Discretionary income
The amount of money a person has left over AFTER PURCHASING NECESSITIES
Whistle blowing
revealing information about a company that is unethical
Pyramid scheme
a fraudulent system of making money based on recruiting an ever-increasing number of sellers to sell products down a pyramid system
Phishing
any online attempt to steal money, accounts or information
Blue collar crime
assault, robbery, shoplifting…
White collar crime
financially motivated crimes: embezzlement, tax evasion, money laundering, fraud…
Debit card:
money comes straight from your bank account
Credit card
money is borrowed from the bank until you pay it back at a specified date
Advantages of a high credit score
Lower interest rates
Get better credit cards
Low interest rates, rewards and cash back
Develop a good reputation
Refinance existing debt, take out a personal loan or upgrade to a better credit card
Fixed
an expense that stays the same
Examples: rent, cell phone bill, internet…
Variable
expenses that vary from month to month
Examples: gas, groceries, clothing…
