Unit 3 - Economic Foundations Flashcards
List the required parts on a business letter and where each required part is located.
1) Letter head in the top left corner
2) Date 2 spaces below the letterhead
3) Inside address 3 spaces below the date
4) Subject line, salutation, body, closing, space for signature, name and title.
How many spaces are required for a signature on a business letter?
4 - 6 spaces
List 3 examples of software and 3 examples of hardware.
Software = Anything you can’t touch within a computer.
- Apps, codes, and computer programs
Hardware= Anything you can touch within a computer.
- Mouse, screen, and keyboard
Label a window diagram (like the one in the Information Technology PP).
1) Title bar
2) Maximize and minimize button
3) Close button
4) Scroll bar
5) Scroll box
6) Status bar
List 2 examples of an operating system.
Lenovo and Windows
List 2 examples of an Internet Service Provider.
Telus and Freedom
What are the key points in creating a business email?
It should be no longer than 1 page in legnth. In a readable font like Times New Roman and size 11-12 in font.
What is the difference between coins and banknotes?
Coins are used for smaller donations and are made of metal, where banknotes are used for larger donations and are made of paper/polymer.
List 3 different ways you can tell a banknote is counterfeit.
1) Feel the smooth polymer texture
2) Look for transparency through the large window containing a metallic portrait and building.
3) Feel the raised ink in the shoulders and “Bank of Canada”
What are the 4 functions of money?
1) Medium exchange - When people exchange goods and services for money.
2) Standard of value - To determine how much goods and services cost.
3) Store of value - Can be saved or stored for future use.
4) Standard of future payment - Allows the customers to calculate the future value of transactions.
List 3 examples of income that an individual or company can earn.
Allowance, Gifts, and Employment
What is gross, disposable, and discretionary income.
1) Gross - Is money earned by a person before any deductions.
2) Disposable - The total amount of money left after paying for taxes, CPP, and El.
4) Discretionary - The amount of money left over after paying for taxes and essential expenses.
What are the 5 key factors that influence consumers to buy and explain them?
1) Income and Price - Family obligations like children and disposable income greatly affects what we buy.
2) Status - Some people feel that having certain products makes them more noticed or better than others.
3) Current trends - Some people rely on trends when purchasing products.
4) Customs and Habits - Customs like family, religon, and community influences what we buy.
5) Promotion - Promotions and advertisements influence what we buy
What is the difference between fixed and variable expenses?
Fixed expenses = Expenses that occur on a daily basis and usually cannot be adjusted like phone bills.
Variable expenses = Expenses that differ from one month to the next like clothing and food.
What are the 3 steps to calculate a personal budget?
1) Step 1: Determine and calculate the amount of incomes you expect to recieve or earn.
2) Step 2: Determine and calculate the 2 types of expenses.
3) Step 3: Calculate the amount of money left over.
What are gross pay and net pay?
Gross pay = The total amount of money earned.
Net pay = Amount of money recieved after deductions.
How do banks make money?
Banks make money by providing and earning interest through loans like personal and business loans. Customer deposits provide banks with capital to make these loans and earn money.
Who runs The Bank of Canada and what is its purpose?
The Bank of Canada is run by the federal government and they help to keep the economy stable by regulating the money supply.
What are investments?
Investments are a way to use money with the hopes to make more money.
List and explain 2 types of investments.
1) Bonds - Issued by governments agencies and cooperations when they want to raise more money.
2) Mutual funds - Money is collected from various investors and is pooled together to invest in different assets. v
What is diversification?
Diversification is when you spread money over a variety of investments to reduce risk.
List and explain 2 different types of credit.
1) Consumer credit - Credit that’s used for personal items.
2) Business credit - Long term credit to purchase land and buildings, along with short term credit to buy goods and supplies.
What is credit used for?
Credit is when you use someone else’s money to purchase an item or service than you pay for it later
List some advantages and disadvantages of credit.
Advantages = Instant employment, convenience, emergencies, and budgeting.
Disadvantages = Interest, impulse buying, and over buying.
What is business credit? What are some examples?
Business credit is long term credit to buy land and equipment along with short term credit to buy goods and services.
List and explain the 3 C’s on how a creditor decides if an individual is credit worthy.
1) Character - Borrowers trustworthiness, reliability, and willingness to make loan repayments.
2) Capacity - Borrowers ability to make payments on time.
3) Capital - Value of borrowers assets that can be used to repay debt.
List some ways an individual would get out of debt.
1) Contact and explain difficulties to creditors.
2) Pay a portion of overdue payments.
3) Put away credit cards.
Salutation
A greeting used to address an individual.
Subject line
A brief preview or headline of the contents of the email.
Complimentary closing
The words such as sincerely to express the senders regard for ther receiver.
Return adress
If the letter is undeliverable it would be send to the return adress on the envelope.
Inside address
Is the receivers address.
Information Technology
Is the study or use of technology for storing, retrieving, and sending information.
Desktop
The primary screen you see as soon as you turn on your screen.
Wallpaper
The background of the screen
Icons
The little picture on the screen the represents softwares or functions.
Taskbar
The line at the bottom of the screen that has the time, date, etc.
Window
The rectangular area on the screen that represents the contents of a folder.
Operating systems
Manges the computers memories and processes, and allows you to communicate with the computer without knowing how to speak its language.
Business directory
An online list of businesses within a particular niche, location, or category.
Internet Serivce Provider
A company that provides internet access to anyone.
URL
The address of a world wide web page. (Universal Resource Locater.
Legal Tender
Coins and paper money issued by the government of Canada.
Counterfeiting
Is a fake replica of a genuine product like money.
Inflation
The increase of prices over a given period of time.
Consumer Price Index
A figure that represents purchasing power.
Net Income
The amount of money someone has after deductions.
Gross Income
The total amount of money someone has earned before any deductions.
Start-Up Business Budget
Shows the money needed to open a business.
Operating Business Budget
Sets out ongoing expenses for a business.
Risk
Factors that can cause something bad to happen.
Liquidity
How quickly you can get your hands on cash.
Credit rating
An estimate of someones ability to fulfill their financial commitments based on their past actions.
Shares
A piece of ownership over a company.
Stock Market
A place where sellers and users meet together to make trades.
Dividend
When a company gives a portion of their company back to shareholders.
Debentures
Same as bond, but there is no collateral.