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