Chapter 4 Vocab Flashcards
bond
a security issued by a corporation or public body and carrying a fixed rate of interest
bonus
money or goods paid employees beyond their wages beyond their wages or salary
bottleneck
the point at which an industry or economic system has to slow its growth because one or more of its components cannot keep up with demand
bottom line
the last line in an audit, which shows profit or loss
bourgeoisie
in general the middle class; applied to the middle ages, it refers to townspeople
boycott
the refusal to purchase the products of an individual, corporation, or nation as a way to bring social and political pressure for change
breach of contract
failure to live up to the terms of a contract
broker
a financial middleman
bull market
a market, especially a stock market, characterized by rising prices; opposite of bear market
business cycle
business activity reaches a low point, recovers, expands, reaches a high point, decreases to anew low point, and so on
buyer’s market
supply exceeds demand
capital
money used to finance purchase of the means of production
capital gain
personal income earned by the sale of assets such as stocks or real estate property; the gain is the difference between the price paid for the asset and the selling price
capital goods
goods used in the production of commodities
captains of industry
business people who are especially successful and powerful
caveat emptor
Latin for “let the buyer beware” customer should be cautious and alert to the possibility of being cheated
certificates of deposit (CDs)
bonds issued by banks and savings and loan associations to individual investors
closed shop
a business in which employees must join a labor union before being hired
closing
delivery of the deed of ownership from the owner to the buyer in return for full payment (real estate)
collateral
property or its equivalent that a debtor deposits with a creditor to guarantee repayment of a debt
