Business Flashcards
1
Q
All companies must pay dividends
A
false
2
Q
the New York Stock exchange is the largest in the U.S.
A
true
3
Q
Partnership
A
type of business that is owned by 2 or more persons
4
Q
Limited Liability
A
a major reason people incorporate their business to avoid some legal issues
5
Q
why do companies issue stock?
A
to grow
6
Q
two basic ways to make money from stocks
A
capital gains and dividends
7
Q
buying on margin
A
buying a stock with borrowed money
8
Q
Dow Jones Industrial Avg.
A
the oldest stock index used to measure the market
8
Q
is the U.S. a command economy?
A
false
8
Q
stock broker
A
person licensed to trade stock
8
Q
merger
A
2 companies join together to form a new company
8
Q
recession
A
when the economy is declining for 6 months straight
9
Q
short selling
A
a form of betting or investing against the company
10
Q
sole proprietorship
A
one owner business
11
Q
bull market
A
a growing market
12
Q
public corporation
A
anyone can buy/sell stock in this type of business
13
Q
insider trading
A
using information about a company that has not been shared with the public
14
Q
compounding interest
A
money earning interest upon interest (snowball effect)
15
Q
Initial Public Offering
A
when a company first becomes available to the public
16
Q
when is best to start investing
A
start early
17
Q
common stock
A
ordinary shares of stock in a company
18
Q
risk
A
chance of loss occurring
19
Q
preferred stock
A
stock takes priority over other stock and pays dividends
20
Q
parent company
A
when one company owns or controls another company
21
Ticker Tape Machine
Samuel Morse invented this device to revolutionize stock trading
22
what should you do to spread your risk in the market?
diversify
23
Income Stocks
stocks that pay dividends to shareholders
24
Mutual Fund
collection of investments for a group of people to share the risk of investing
25
stock exchanges
places to go for trading of stocks
26
rate of return
ratio of money you gain/lose on an investment
27
unlimited liability
business owners who are legally liable for any debt their business might accrue
28
4 major communication skills
verbal, non-verbal, listening, written
29
Autocratic style
a management style wherein one person controls all the decisions and takes very little inputs from other group members.
30
democratic style
making room for multiple people to participate in the decision-making process
31
laissez-faire style
takes a hands-off approach to leadership and gives others the freedom to make decisions
32
situational style
adapting your leadership style to each unique situation or task to meet the needs of the team or team members
33
Top Level Management
CEO's
34
Middle Level Management
department heads
35
Lower Level Management
supervisory/operational
36
Planning
developing the business' mission and objectives
37
Organizing
establishing the internal organizational structure of the organization
38
Directing
influencing people's behavior through motivation, communication, group dynamics, leadership and discipline
39
Controlling
1. establishing performance standards
2. measuring and reporting actual performance
3. comparing the two
4. taking corrective or preventive action as necessary
40
4 P's of marketing
product, pricing, promotion, place
41
Product (marketing)
good/service to sell
42
pricing (marketing)
how you will make profit
43
promotion (marketing)
get the word out
44
place (marketing)
where you will sell it
45
target market
small/specific portion of the population you focus your marketing efforts towards
46
segmentation
divided-demographics, geographics, psychographics, behavioral
47
consumer
a person who purchases goods and services for personal use
48
customer
a person or organization that buys goods or services from a store or business
49
5 parts of a print advertisement?
headline, photos, copy, signature, slogan
50
headline
attract attention
51
photos
visuals to explain/entice
52
copy
message
53
signature
logo/symbol
54
slogan
catchphrase/tagline
55
morals
what you believe, principles of right/wrong
56
ethics
set/system of principles, philosophy/theory behind them
57
law
rules developed by a society - based on ethics and morals
58
what is the foundation of U.S. law based on?
English common law - legal system that is primarily based on prior case decisions or precedents
59
5 sources of law
English common law, constitutions, statutes, administrative law, court decsions
60
What is the highest court of the land?
supreme court
61
what is a tort
disputes between people and organizations
62
examples of tort
slander, libel, fraud, unfair competitive practices
63
crime examples
theft, murder, embezzlement
64
What are the 1st 10 Amendments reffered to as?
Bill of Rights
65
What is the person complaining in a civil court proceeding called?
plaintiff
66
Burden of proof in a civil case
the preponderance of evidence
67
burden of proof in a criminal case
beyond a reasonable doubt
68
negotiation
the 2 parties try to resolve on their own
69
mediation
a third party helps find a compromise
70
arbitration
a third party listens to arguments and decides
71
litigation
the parties go to court to resolve
72
contract
legally binding agreement, between 2 or more capable parties, involves exchange of goods or services, or a promise to do or not do something
73
offer of contract
1. definite and certain
2. made with serious intent
3. communicated to the offeree
74
Legality
agreements that force someone to break a statue or commit a crime, agreements that are contrary to public policy
75
consideration
bargained for exchange, something of value, legal
76
genuine agreement
mistake, duress, fraud, innocent misrepresentation, undue influence
77
capacity
is the person who have the lack of ability to understand a contract
78
persons who lack capacity
minors, people with cognitive impairments, non U.S. citizens, convicted felons, intoxicated persons
79
Accounting Equation
Assets=liabilities + owner's equity
80
assets
something that is owned by a person or business
81
liabilities
something that is owned by a person or business
82
owner's equity
worth of the business
83
Revenue
money that a company brings in from day to day sales (credit balance)
84
expenses
money a company has to spend (debit balance)
85
income statements
show how much money a business made (profit) or lost in a month
86
net income
revenue - expenses
87
owner's equity statement
net income - drawing
88
3 types of economic systems
command, market, mixed
89
command economy
government control
90
market economy
free of government control
91
mixed economy
hybrid of government control
92
private corporations
issue stock to existing stockholders
93
public corporations
shared income with public
94
stock
a share in the ownership of a company, including a claim on the company's earnings and assets
95
inflation
rate of increase in prices over a given period of time
96
bear market
declining stock market
