Final Exam Flashcards
1
Q
Date - Depository Institution Deregulation and Monetary Control Act.
A
1975-1985
2
Q
Date - Emergency Banking Act - the “Bank Holiday”
A
1933
3
Q
Date - FDIC was established
A
1933
4
Q
Date - Glass - Stegal Act
A
1933
5
Q
Date - Graham - Leach Bliley Act
A
1999
6
Q
Date - The Marshall Plan
A
1947
7
Q
Date - Introduction of the Merrill-Lynch Money Market Fund
A
1974
8
Q
Date - The Roaring Twenties
A
1920-1929
9
Q
Date - The Roosevelt Presidency - “the Hand of Government Era”
A
1933-1945
10
Q
Date - The Sarbannes-Oxley Act
A
2002
11
Q
Date - Security Act of 1933
A
1933
12
Q
Date - Securities Exchange Act of 1934
A
1934
13
Q
Date - Social Security Act
A
1935
14
Q
Date - Start of the Era of Big Government
A
1913
15
Q
Date - Stock Market Crash
A
1929
16
Q
Date - Tyco, Enron, World Com Era
A
2001-2002
17
Q
Glass Stegal Act
A
- Created numerous regulations.
2. Forced the break-up of bank holding companies.
18
Q
Cause of the 1929 Stock Market Crash
A
Caused by Brokers, Banks, and insurance companies using improper Margin Sales Techniques.
19
Q
The Roaring Twenties (4)
A
- Economic Growth
- Full Employment
- Disposable Income
- Personal Investment Increased
20
Q
The Emergency Banking Act (Bank Holiday)
A
- All Banks were closed for 4.5 days.
- 23,674 Banks were permanently closed.
The Objective was to improve consumer confidence in the banking system.
21
Q
The Franklin Roosevelt Presidency (the Hand of Government Era) -4
A
- Tennessee Valley Authority - made hydro-electric dams
- Civilian Conservation Corp - men worked to create national parks, forests, recreation places
- Works Progress Administration - gave jobs to artists.
- Infrastructure Projects - building the golden gate bridge, hoover dam, airports, ect.
22
Q
The Marshal Plan - 4
A
- Administered by George Marshall
- The US gave 12.5 Billion in 1947
- Volkswagen, Adidas, Toblerone Chocolate
- Objective was to re-build war destroyed Europe.
23
Q
Merrill-Lynch Money Market Fund
A
Resulted in Huge Transfers of funds from banks to brokers. Banks were starting to fail due to loss of capital.
24
Q
The 1977 President Carter Community Reinvestment Act
A
Established to combat redlining lending practices w/banks in real-estate.
25
The 1994 President Clinton Community Reinvestment Act expansion
Direction was given to FNMA, GNMA, and Freddie Mac to increase their mortgage loan purchasing activities in order to stimulate the consumer side of the economy.
26
Credit Default Swaps
Is a financial swap agreement that the seller of the CDS will compensate the buyer (usually the creditor of the reference loan) in the event of a loan default (by the debtor) or other credit event.
27
Tyco, Enron, Worldcom Era
2001-2002 Fraudulent account practices hiding debt in shell companies, making the company look more stable than it really is.
28
Start of the Era of Big Government
FED - Monetary Policy established and IRS - Agent of Fiscal Policy established.
29
Social Security Act
Retirement benefits for workers funded by themselves and their employees.
30
Security Act of 1933
Punitive on Brokers
Established Regulations for Margin Sales
Required formal Registration of Stock Sales thru SEC.
31
Securities Exchange Act of 1934
Punitive on Brokers.
Dealt with inside trading.
Strengthened the SEC to give them more investigative power.
32
Sarbannes-Oxley Act
Requires CEO or CFO to sign off on financial reports. Declares that accounting firms can no longer do Accounting/Auditing AND Consulting for the same firm.
33
Depository Institution Deregulation and Monetary Control Act
Response to problems created by Merrill Lynch. It gave the Federal Reserve greater control over non-member banks.
34
FDIC
Was established to further improve consumer confidence in the banking system.
35
Graham-Leach-Bliley Act
Repealed the Glass-Steagall Act in order to remove financial holding company regulations. Allowed banks to expand as financial holding companies in order to compete with foreign banks.
36
When was Small Business Administration established? By Whom?
1953 - Eisenhowser
37
What is the Small Business Administration mission?
Assist, Promote, develop small businesses.
38
What was SBA's orginal lending function?
Loans for small businesses.
39
What is the SBA's current lending function?
Loan Guarantess
40
What groups does the SBA still make Direct Loans to?
1. Women
2. Vets
3. Disabled
4. Minorities
41
Double Taxation is a disadvantage of corporate organization. Explain how this works.
The company is taxed on its income and so are the shareholders. Taxes on divided income.
42
How does Not-For-Profit corporations compare to a For-Profit corporation?
NFP corporations put their profits into the business where FP companies profit goes to the shareholders/stockholders.
43
Explain what a vertical integrated corporation is. Example?
Marketing and Production at different levels combined to help each other.
Example: Ground to Vehicle - life of fuel.
44
Explain what a vertically integrated corporation is. Example:
Two companies at the same level combined to create more diversification.
Example: Burger King and Tom Horton both supply food.
45
What definitions are used to describe a small business?
1. Wholesalers less than 100
| 2. Manufacturers have less than 500
46
What is the importance of small business in our economy?
1. Create New Jobs
2. Create new Industries
3. Innovations - New Inventions
47
What are the three primary reasons businesses fail?
1. Under educated managers.
2. Inadequate Financing
3. Gov't Regulations
48
Name one advantage and one disadvantage of Proprietorship.
Adv: All Profit is yours.
Dis: All Financial Liability
49
Name one advantage and one disadvantage of Partnership.
Adv: More access to resources and money.
Dis: Responsible for partners actions.
50
Name one advantage and one disadvantage of Corporation.
Adv: Easy to Start
Dis: Double Taxation
51
Initial Funding used to launch a company.
Seed Capital
52
Money an entrepreneur raises from others to help start or expand a business.
OPM
53
Borrowed funds that entrepreneurs must repay.
Debt Financing
54
Funds invested in new ventures in exchange for part ownership.
Equity Financing
55
A business organization or group of individuals that invest in early-stage, high potential, and growth companies.
Venture Capitalist
56
A wealthy individual who invests money directly in new ventures in exchange for equity.
Angel
57
A source of financial support involving groups of individuals, often connected through the Internet, that pool small sums of money to support new businesses and philanthropic causes, as well as artistic endeavors.
Crowd Funding
58
A local program designed to provide low-cost shared business facilities to small start-up ventures.
Business Incubator
59
A written document that provides an orderly statement of a companies objectives, methods, and standards.
Business Plan
60
A person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business.
Entrepreneur
61
Contractual business arrangement between a manufacturer or other suppliers and a dealer, such as a restaurant operator or a retailer.
Franchising
62
Individual or business firm purchasing a franchise.
Franchisee
63
Firm whose products are sold to customers by the franchisee.
Franchisor
64
Process of promoting innovation within the structure of an existing organization.
Intapreneurship
65
Project initiated by an employee who conceives an idea, conceives an idea, convinces top management of its potential, and then recruits human and other resources from within the company to put the idea into a commercial project.
Skunkworks
66
Explain the two primary purposes of creating a Business Plan.
1. Self Serving - General managerial purpose.
| 2. If you want to borrow money you will look more attractive to lenders.
67
Explain what the Executive Summary portion of a Business Plan does.
Explains who, what, where, when, why and how.
68
Name at least four sources of funds for "Self Financing" a venture.
1. Credit Cards
2. Loans from Friends & Family
3. SBA Backed Bank Loans
4. Crowd Funding
69
Explain an example of an Intrapreneurship product. Include company name, product, creation purpose, and objective for the product as part of the company's product line.
Name: Marlboro
Product: Jackets & Duffle Bags
Creation: Cement Customer Relationships
Objective: Unique way to advertise.
70
Explain what the chief downside factor for equity financing as a source of funds is.
Equity Financing gives part of the ownership of your company to the person funding you venture. Also, double taxation.
71
The process of achieving organizational objectives through people and other resources.
Management
72
The ability to direct or inspire people to attain certain goals.
Leadership
73
Employees shared authority, responsibility, and decision making with their managers.
Empowerment
74
Perception of marketplace needs and the ways a firm can satisfy them.
Vision
75
An organization's system of principles, beliefs, and values.
Corporate Culture
76
The managerial process of assigning work to employees.
Delegation
77
Process of anticipating future events and conditions and determining courses of action for achieving organizational objectives.
Planning
78
A written explanation of an organizations business intentions and aims.
Mission Statement
79
A quantitative outcome by which managers define the organizations desired performance in such areas as new product development, sales, customer service, and growth.
Objective
80
The process of blending human and material resources through a formal structure of tasks and authority.
Organizing
81
A structured group of people working together to achieve common goals.
Organization
82
Guiding and motivating employees to accomplish organizational objectives.
Directing
83
The function of evaluating an organizations performance against its objectives.
Controlling
84
The process of dividing work activities into units within the organization.
Departmentalization
85
The process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results.
Decision Making
86
The process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results.
Decision Making
87
Conceptual Skills
Ideas, blue sky planning, what if mentality.
88
Human Skills
Communication, interpersonal, motivation, leadership, interact with people.
89
Technical Skills
Understand the job.
90
Position Power (Define and Examples)
You role at your employment gives you power.
| Example: Manager at Best Buy, President of U.S., Foreman.
91
Expertise Power (Define and Examples)
Specific experience from job experience for a good length of time.
Example: Working at a company for a long time learning skills making you a expert.
92
Personality Power (Define and Examples)
Power from your personality.
| Examples: Charismatic personality, go getter, highly driven, Roosevelt and Hitler.
93
Autocratic Leadership
Lets employees make decisions.
| Examples: Self centered, type A
94
Democratic Leadership
Includes employees in decision making.
| Examples: Google
95
Free Rein Leadership
Lets Employees have a wide range of power and decision making.
Examples: Sales jobs
96
What is "Span of Management" or "Span of Control"?
Optimum number of employees that a supervisor can supervise.
97
Strategical Planning
Vision Mission Statement
Top Level
Overall Direction of Company
Senior Management
98
Tactical Planning
Implementing Strategy
| Middle Management
99
Operational Planning
Front Line to carry out plans.
| Lower Management - Supervisor
100
What is Contingency Planning? Give examples as part of your answer.
Being prepared for potential problems.
| Terrorists, bad weather, financial problems, disaster recovery.
101
What is SWOT analysis? How is it used?
Effective ways to communicate with employees.
Strengths - Capital, Business Plan
Weakness - Too Big to Fail, Bad Management
Opportunity - Market Share, ability to innovate
Treat - Competition and Technology
102
Who determines the type of organizational structure that a company will use? Why?
CEO - He/she has responsibility for the operation.
