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Factors of production

land ; labor ; capital ; enterprise

Economic Indicators

GDP ; standard of living ; unemployment rate ; rate of inflation ; National Debt

Downsizing

company downsizes to save $ & lay off workers

Budget Surplus

When government's revenue exceeds its expenditures using one year period

OSHA (Occupational Saftey & Health Admin.)

Enforces work-related health and safety rules.

FDA

Government agency that protects consumers from dangerous or falsely advertised products.

Entrepreneur

a person who starts up and takes on the risk of a business

Trade Barriers

Quota, Tariff, Embargo

Fiscal Year

accounting period in business of one year

Credit

agreement to get money, goods, or services now in exchange for a promise to pay in the future

Charge accounts

common type of short/medium credit. You have certain amount of time to pay in full

Five C's

Capacity ; Character ; Credit History ; Capital ; Collateral

Finance Charge

Total amount it costs to finance loan stated in dollars and cents.

Marketing Mix

Product ; place ; price ; producion

Assets

any property or item that your business owns

Income Statement

Report of net income or net loss over an accounting period

Balance sheet

Report of the financial state of your business on certain dates

Owner's Equity

Claim on the assets by the owner
assets = owner's equity + liability

Budget Variance

Difference between how much you planned to spend and how much you actually spent

Expenditures

Food, clothing, shelter

Virtual Business or Dot.com

business that operates on the internet

Profit

amount of money leftover after paid for cost of producing goods + services

Canceled/Outstanding Checks

- cashed checks
-not cashed checks

Bodily injury

covers injuries to someone else MUST
100/300

Day Trading

Buying and selling stock, based on minute by minute changes in the price of the stock. (risky)

Coupon rate

Rate of interest on a bond.

Bond Types

Federal Bonds, (EE, I) Municipal Bonds, and Corporate Bonds.

Claim

Request for payment from an insurer for any damages covered by a policy.

Fire Insurance Policy

Ensure damage due to fire or lightning

Demographics

Facts about population in terms of age, gender, location, income, and education.

Code of Ethics

set of guidelines for maintaing ethics in workplace.

Repossess

The creditor's right to take back a collateral.

Consolidation Loan

Combines all debts into one loan with lower payments.
-high interest - start charging again

Capital Loss/Gain

Selling stock less than what you paid for.
Selling stock more than what you paid for.

Debtor

One who borrows money or uses credit.

Travel and Entertainment Credit Card

Must be paid full each month. Accepted World Wide.

Down Payment

Portion of total cost paid at the time of a purchase.

Small Business

Independently owned business that has owner as the manager.

Exchange Rate

Prie of which one currency can buy another currency

Marketing Concept

Businesses need to know their customers wants and needs in order to make a profit.

Retailer

Sells goods directly to the customer

Budget

Written plan of what you income and expenses are going to be over a certain period of time.

Credit Limit

Maximum amount you can charge or spend on credit account.

Fair Credit Billing Act

Requires creditors to correct billing mistakes brought to their attention.

Collection Agent

Person or business that has the job of collecting overdue bills.

Usury Law

Restricts amount of interest charged for Credit.

Consumer Credit Protection Act

Consumers must know the disclosure of costs/items.
Lost/stolen credit cards

Demand Deposit

Checking account - each check is an order to release funds

Broker

Dealer who specializes in buying and selling stock

Corporate Bonds

Bonds issued by corporations

Endorsement

Signature of payee on the back of the check

Money Market Fund

Kind of Mutual fund, or pool of money put into a variety of short term debt by business or government

Net Income

Total earnings that are greater than its total expenses

Installment Loans

Loans repaid in regular amounts over a period of time

Cosigner

Person responsible for a loan if you don't make payments

Capital Gain/Loss

Selling stock for more than what you paid for
Selling stock for less than what you paid for

Preferred Stock

Stock that gives its holders certain privledges

Renters Insurance

Covers any loss or damage to your personal possessions includes liability

Personal Property

Consists of possessions that can be move

Pre Existing Condition

serious health condition diagnosed before a person obtained health insurance

Savings

Money put aside for the future

Income

Actualy amount of money you earn or receive during period of time

Fixed Expenses

Expenses that occur regularly and are regularly paid.

Variable Expenses

Expenses that fluctuate

Gross Pay

the total amount you earn before any deductions are subtracted

Net Pay

Take home pay is gross pay minus deductions

Withholdings

Subtracting taxes from paycheck to be forwarded to government state, local

Cash Advance

Borrow money on credit rather than use it to make purchase

FDIC

Federal Deposit Insurance Corporation
Ensures bank accounts

Mutual Fund

Fund created by an investment company that raises money from many shareholders and invests it in a variety of stocks.

Bond Discount

Difference between amount you pay for bonds and face value.

Liability Insurance

Protects you from claims of injury or property damage to others in case your held responsible for an accident.

Comprehensive Insurance

Covers damage to policy holder's vehicle caused by other things other than an accident.

Eleven Perils

Most coming cause of property damage or loss
-fire, windstorm, vehicles, theft, glass breaking

Term Insurance

Covers a person for a specific period of time.

Trade Deficit

When country imports more than is exported

Medicare

A major health insurance program set up by the federal government

Medicaid

Another government health care plan for certain groups of citizens. Provides people unable to pay.

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