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FBLA Introduction to Business
Terms in this set (241)
One of the disadvantages of having a partnership is
An organization that is owned and operated by its members is a ______
A contractual agreement to use the name and sell the products or services of a company in a designated geographic area is called a ______ .
If one of your goals is to limit your personal liability, it would be best to organize your business as a ______ .
A business owned by ten people who share the risks and rewards of the business is a ____
Capital, Capacity, Character,
makes a completely finished product out of raw or processed parts.
make the before final product
moves finished goods, stores them, and resells them to a wholesaler
Which department in a company sets the price of a product?
The highest level of management in the organization; responsible for direction and control of the organization as a whole (such as director; general manager; partner; chief officer and executive manager).
top level management
Responsible for meeting the goals that senior management sets
Responsible for monitoring the daily activities of the business
Which managerial function comes first when executing business goals?
Which is NOT an aspect of the organizing function?
Which is NOT part of the leadership function for a manager in charge of a project?
In a large company, to whom would an operational manager generally report?
a middle manager
the ability to make decisions on your own
Who makes the final decision in a democratic leadership situation?
the democratic leader
Which kind of leader does the most delegating?
when leaders set goals for managers and employees, then allow them to make the decisions to achieve those goals.
leader gets input from the group, then makes the final decision about a situation.
do not ask for input from their workers; they expect their orders to be obeyed without question.
Which is NOT considered an aspect of technology?
Which was inspired by the invention of the telephone?
What makes a cell phone different from a telephone?
cells are small computers
Anyone who uses a computer while working
a store that sells products in stores and online
click and mortar
Which types of products do other countries mostly buy from the U.S.?
When a country's currency is higher than another's, it has
more buying power
North American Free Trade Agreement
business that takes place within the borders of one state.
Occupational Safety and Health Administration
formed by a small number of companies rather than just one.
best for keeping money in a financial institution for a short period.
financial institutions that hold customers' funds in interest-bearing accounts and invest mainly in mortgage loans.
saving and loan associations
firms that sell stocks and bonds, but not loans.
how many regional banks are there for the federal reserve
protecting investments through risk management.
consists of four basic marketing strategies: product, place, price and promotion.
Which is the final step in the process of developing a new product?
evaluating customer response
main advertising medium used in the United States.
advertisers to reach a specific target market.
appears mostly in phone books.
Amount of money it costs to display or broadcast an ad
Which is NOT something upon which the cost of Internet ads is based?
Which is usually NOT included in a job description?
amount of money paid to an employee on an hourly basis.
someone who comments on a job applicant's character and qualifications for a job.
process of helping new employees adjust to a company.
teaching several employees in a class.
To market products successfully in another country, companies must research the country's
language, customs, tastes
conduct that is considered socially acceptable in business.
usually has one person at the top who makes all the decisions.
identify people by a single trait, rather than as individuals
money used to pay for the various assets and expenses of a new venture or business.
start up capital
systematic process of recording and reporting the financial position of a person or organization.
total amount of money owed to a business
liabilities + owner's equity
computing, electronics, and telecommunications to process and distribute information in digital and other forms.
information technology (IT)
transmission of information over communication lines.
arrangement that allows employees to work at home while communicating with the workplace by phone, fax, or modem.
global computer network.
computer language that allows Internet users to access stored images, text, and other files.
Popular operating system created by Bell Labs
designed to operate the same on hardware from several different vendors.
Microsoft Disk Operating System
an open-source version of the UNIX operating system
design factors for the workplace that are intended to maximize productivity by minimizing a worker's discomfort.
Keyboards, computer mice, touchpads, joysticks, and scanners are examples of...?
collection of integrated application programs or software applications that work as a single program.
a restricted computer network
communication tools, conferencing tools, and collaborative management (or coordination) tools.
work history of one or more jobs in the same or related fields of interest.
basic skills that you need to get a job, keep a job, and do well at a job.
tell an employer what you have to offer and persuade a potential employer to interview you.
carry well-known brand name products at bargain prices
Which type of store might require customers to become a member to take advantage of benefits?
Sell only one kind of merchandise.
limited line retailer
advertised products that sell at a loss to bring customers into a store.
written guarantee from the manufacturer or distributor that states the conditions under which the product can be returned, replaced, or repaired.
A form describing the goods or services sold, the quantity, and the price
warranties or limited warranties
cover only a certain parts of a product
seller will repair or replce a product that doesn't work usually free of charge; good for a short period
legal responsibility that manufacturers have to make a safe product
U.S. Consumer Product Safety Commission fact sheets tells how a product is rated on
safety, performance, and value.
Which is NOT easily recycled?
department of the government that inspects and grades foods. Grade labels, such as "prime" or "choice" for meats, indicate the level of quality.
US Department of Agriculture
prohibit price discrimination, the act of charging different prices in different markets or to different customers.
The Clayton Act and the Robinson-Patman Act
Establishes a unified and comprehensive method for regulation of security transactions in personal property, superseding the existing statutes on chattel mortgages, conditional sales, trust receipts, assignment of accounts receivable and others in this field.
Uniform commercial Code
requires those who give credit to reveal the details of all terms and conditions
The Consumer Credit Protection Act
Agency with the power to investigate unfair business practices
Federal Trade Commision
included truth-in-advertising provisions that protect consumers from false and misleading advertising. Under this law, advertisers must have evidence to back up their claims.
Federal Trade Commission act
Which depends on the degree of risk a creditor takes in lending money or selling on credit?
the cost of the credit to the borrower
Which type of card often requires payment of the full amount due at the end of each month?
travel and entertainment card
can be used only at the business that issued the card. Interest is charged on the unpaid balance. Cardholders can pay part of the amount owed or the entire amount at the end of each 30-day period.
single purpose cards
offer short-term loans until payday.
payday advance service
which is NOT required to develop a credit history?
21 years old
determines the cost of credit on a yearly basis.
Annual percentage rate (APR)
To determine the ability to repay a loan, also known as ______________, a creditor will verify the applicant's employment and income.
Which is a law that restricts the amount of interest that can be charged for credit?
makes comparing credit costs easier and more accurate for the consumer.
The Consumer Credit Protection Act
requires that consumers be informed of the steps they need to take to get an error corrected.
Fair Credit Billing Act
legal process which relieves a borrower of debt?
Which term refers to the actual amount of money you earn or receive during a given period of time?
Which is a method that allows electronic transfers directly from the payer's account to the account of the person being paid?
can be used for such things as paying utility bills.
Which type of card can be used to withdraw cash from a checking account without writing a check?
Which term refers to the person who writes a check and is paying someone?
Which term refers to the financial institution where a drawer has an account?
Which of the following is NOT required in order for a check to be paid?
drawee's or bank's signature
What percent of your income do experts say you should save?
Which will NOT make a sizeable impact on your retirement fund?
How many months of income do experts recommend you set aside for emergencies?
the three basic types of savings accounts?
regular, certificates of deposit, and money market funds.
Which savings account requires you to deposit a specific amount of money in an account for a set period of time?
certificate of deposit
kind of mutual fund, or pool of money, invested in loans by business and government
money market fund
tradable document that shows evidence of debt or ownership?
include bonds, shares of stock and mutual funds, and stock options.
rate of interest
yield on a bond called?
What is the difference between the amount you pay for a bond and its face value
Which is NOT a type of security that the U.S. Treasury Department issues?
documents indicating an obligation to pay funds, including promissory notes, collateral notes, and installment notes
Treasury bills are sold in units of .
Treasury bills may reach maturity in ______________________weeks.
4, 13, or 26
The interest rate on a Series EE bond
stays the same throughout the life of the bond.
Investors pay face value for Series
Selling stock for more than you paid for it results in a
a house that is divided into two halves and is inhabited by two separate families with separate entrances.
jointly owned apartment building
amount on the property that you actually own as opposed to how much your owe.
include such things as corn, oil, and coffee.
What is a commodity?
Anything that is bought or sold
one that is unacceptable to insurance carriers because the likelihood of loss is too high, such as property in a flood zone.
controllable risk that, in many cases, can be prevented.
potential losses to others that occur as a result of injury or damage that you may have caused.
risk of harm caused by mistakes, dishonesty, or other risk that is attributable to people.
threat of a loss with no opportunity for gain.
which type of insurance protects vehicle owners from claims of injury or property damage to others?
Which type of insurance covers damage to the policyholder's vehicle?
decline in value of an asset.
Which term refers to the amount in damages a policyholder must pay before the insurance company pays a claim?
Homeowners policies do not cover loss from
floods, earthquakes, landslides, acts of war, or nuclear hazards.
covers the cost to repair a house if it is damaged or destroyed. Most policies also cover garages or sheds that are detached from the house.
what percent of a home's market value do insurance companies recommend a homeowner insure
value of the property when it was new minus the depreciation.
actual cash value
Which type of life insurance provides both savings and death benefits?
cash value insurance
Which type of life insurance has a premium that stays the same and is paid throughout the policyholder's life?
whole life insurance
Which term refers to the percentage of medical expenses that a policyholder must pay beyond the deductible?
Which type of insurance pays for a serious illness or accident?
major medical insurance
What type of insurance plan provides health care at its own health center for a fixed fee per month?
a health maintenance organization
With a _________________________, policyholders must go to a designated clinic.
health maintenance organization
With a ______________________, policyholders pay a prearranged fee to health-care providers approved by or affiliated with the plan.
preferred provider organization
What drives the economy?
wants and needs
Which is the current emphasis in the U.S. economy?
When did the Industrial Revolution lead to the industry-based economy?
True or False: An entrepreneur is a person who organizes, operates and assumes the risk for a business venture.
True or False: Recovery in the business cycle occurs after a period of recession.
True or False: Risk management is the process of evaluating the risks faced by a firm and then minimizing the costs involved with those risks.
True or False: Medicaid is the form of medical aid for the physically handicapped.
True or False: In term insurance, premiums are paid throughout the employee's lifetime, with the whole amount of the policy paid upon the insurer's death.
True or False: A venture business has no employees other than the owner.
True or False: Retailers generally run 4 types of sales: promotional, clearance, special purchase and holiday.
True or False: One of the main activities of the Office of Consumer Affairs is to prevent one firm from using unfair practices to force competing firms out of business.
True or False: A mutual savings bank is an example of a deposit-type financial institution.
True or False: The main purpose of the Federal Reserve System is to supervise and regulate member banks in order to help service the public.
True or False: When preparing a bank reconciliation, an outstanding check must be added to the bank statement balance.
True or False: Simple interest is an expression of interest based on a one year period of time.
True or False: To compute the cost of credit, you need to know only the principal and interest rate.
True or False: Yield is also referred to as the rate of return.
True or False: The assessed value is the amount used to calculate a person's property taxes.
Fixed assets are resources whose use will benefit the entrepreneur for more than one year.
True or False: HMO' s emphasize preventive health care.
True or False: Discretionary income is income you spend on things you want for pleasure, satisfaction, and comfort.
True or False: A cash flow statement reports what a person or family owns as well as owes.
True or False: Term life insurance involves the accumulation and management of property during one's lifetime and the distribution of one's property at death.
True or False: Intellectual property is a term that describes the rights of entrepreneurs or others in intangible property created through ingenuity or mental effort.
True or False: The Securities and Exchange Commission is a watchdog agency that enforces federal laws pertaining to the stock market.
True or False: A person in the business of buying and selling OTC stocks is a floorbroker.
True or False: Technical analysis concentrates on charting stock prices, trends in the market, and patterns in the indices with the averages.
True or False: A market that is going down is referred to as a bull market.
Which of the following is not part of the typical research process?
a. Calculating cost b. Defining the need c. Finding the facts d. Analyzing the facts e. Taking action
The person who pumps your gas is part of the
a. natural resources. b. human resources. c. capital resources. d. business cycle. e. None of the above
a. the total value of all goods produced in a year. b. the total value of all final goods and services produced in a year. c. the total value of all services produced in a year. d. the total value of all goods and services produced by citizens of a specific nation in a year. e. the total of all goods and services produced within the boundaries of the country in a year.
When the effect of price changes is taken out of GDP, we have
a. inflated GDP. b. undervalued GDP. c. real GDP. d. per capita GDP. e. underinflated GDP.
The business function that bridges the gap between the producer and the consumer is
a. marketing. b. producing. c. farming. d. extracting. e. financing.
Which of the following is not an advantage of a checking account?
a. Convenience b. Safety c. Service charges d. Proof of payment e. Record of finances
A two-dollar broker
a. handles trading in particular stocks. b. owns his/her own seats on the exchange and makes his/her income from tees. c. is an alternative to paying full-service brokers. d. actually executes an order. e. is licensed by the SEC.
The Consumer Price Index is
a. used to monitor the rate of inflation. b. used to measure the total goods and services produced in a year. c. a scientific look at the DJIA. d. used to forecast economic activity 6-9 months down the road. e. a private corporation.
The form of business that requires written permission from the state in which it is organized and can have owners is
a. cooperative. b. partnership. c. sole proprietorship. d. corporation. e. municipality.
The person or group receiving permission from a parent company to sell a product in a certain area in a certain manner is the
a. franchisee. b. franchisor. c. operator. d. owner. e. developer.
Which of the following is not a type of decision-making style?
a. Analytic b. Conceptual c. Directive d. Reflective e. Behavioral
Which of the following is inappropriate during a job interview?
a. Asking questions about the position b. Dressing appropriately c. Taking notes d. Being early e. Talking too much
Which of the following does not apply to small businesses?
a. Usually has the owner as manager b. Is not dominant in its field of operation c. Employs fewer than 500 people d. Usually is local, serving the nearby community e. Is government owned
Stores that offer a wide variety of goods are called
a. full-service stores. b. specialty stores. c. convenience stores. d. warehouse markets. e. supermarkets.
Small stores that carry a wide variety of products and a narrow line
a. full-service store. b. specialty store. c. convenience store d. warehouse market. e. supermarket.
Which of the following is not a consumer right?
a. The right to be informed b. The right to confidentiality c. The right to choose d. The right to be heard e. The right to a remedy
Which of the following is not a consumer responsibility?
a. Be honest b. Complain reasonably c. Be involved d. Report unethical practices e. Be uninformed
Which of the following is not a federal law or regulation related to human resources management?
a. Retirement Act b. Americans with Disabilities Act c. Family and Medical Leave Act d. Privacy Act e. Equal Pay Act
A bank that offers a full range of services, sometimes called a "financial department store," is
a. a savings and loan. b. a consumer finance company. c. a commercial bank. d. the Federal Reserve System. e. a credit union.
One of the Cs of credit, which refers to your honesty and history of paying debts, is known as
a. capacity. b. character. c. capital. d. curiosity. e. culpability.
A record of your transactions during a billing period is called a
a. statement of account. b. receipt. c. credit memorandum. d. credit check. e. bank reconciliation.
The law that requires the prompt correction of billing errors after they have been reported to a creditor is
a. the Fair Credit Reporting Act. b. the Fair Credit Billing Act. c. the Lemon Law. d. the Truth-in-Lending Law. e. the Fair Credit Act.
The rate of return on an investment is also called
a. safety. b. liquidity. c. yield. d. equity. e. compound interest.
A speculative investment usually involves
a. an unusually high risk. b. a guaranteed rate of return. c. low risk. d. securities issued by the federal government. e. stocks and bonds.
Laws that require you to carry certain types of automobile insurance before your car can be licensed are called
a. compulsory insurance laws. b. financial responsibility laws. c. insurance laws. d. assigned-risk plans. e. collision insurance.
Managers use a number of selection devices to choose candidates for a job. Which of these is not one of them?
a. The application form b. Written tests c. Age d. Physical examination e. Interview
Costs that occur regularly and are for the same amount each time are
a. fixed expenses. b. variable expenses. c. allowances. d. budgets. e. liabilities.
An IRA that is used for educational purposes without penalty is called
a. stock. b. bond. c. Roth Traditional. d. 401K. e. 403B
During an interview, it is illegal to ask about
a. prior experience. b. current salary. c. marital status. d. why you are leaving your current job. e. work attendance
Illegal acts performed by office or professional workers while at work are called
a. blue collar crimes. b. white collar crimes. c. hacking. d. piracy. e. a virus.
Which of the following is not a key economic question?
a. What to produce? b. How to produce it? c. For whom to produce? d. When to to produce? e. None of the above
A goal in life that is fulfilled through a job or a series of jobs is called
a. career planning. b. career. c. job. d. tentative career decision. e. mobility.
The conflict between unlimited wants and limited resources is known as
a. scarcity. b. resources. c. drought. d. needs. e. human resources.
The desire to work for profit is
a. competition. b. freedom of choice. c. profit motive. d. business. e. private enterprise system.
This person takes the extractor's products or raw materials and changes them into a form consumers can use.
a. Manufacturer b. Wholesaler c. Extractee d. Marketer e. Producer
Which of the following is not a function of management?
a. Planning b. Organizing c. Controlling d. Leading e. Incorporating
Stopping the importing or exporting of a certain product or service is called
a. embargo. b. tariff. c. trade. d. quotas. e. export violations.
The negotiations that take place between an organized body of workers and an employer, dealing with wages and working conditions are called
a. grievance procedures. b. collective bargaining. c. strikes. d. pickets. e. arbitrations.
A refusal to work until demands are met is called a
a. boycott. b. strike. c. lockout. d. picket. e. injunction.
The exclusive right to make, use, sell, or license others to make or sell a newly invented product or process is a
a. logo. b. copyright. c. patent. d. slogan. e. trademark.
A situation that exists when the government spends more than it collects is called
a. national debt. b. deficit. c. deflation. d. revenue e. depression
A sales letter written for the purpose of getting a personal interview is a
a. personal data sheet. b. letter of application. c. letter of recommendation. d. application form. e. reference sheet.
Inspecting one wrench of every 50 to make sure it operates correctly is a form of
a. cost control. b. inventory control. c. quality control. d. asset control. e. management control.
a. Service Corps of Retired Executives. b. Service Corps of Retired Employees. c. Service Corporation of Rescued Employees. d. Security Corps of Retired Entertainers. e. Security Company of Rigalto Entertainment.
Buying too rapidly without much thought is know as
a. comparison shopping. b. bargain shopping. c. impulse buying. d. smart shopping. e. None of the above
A guarantee made orally or in writing that promises a specific quality of performance is a/an
a. guarantee. b. implied warranty. c. express warranty. d. certificate of warranty. e. manufacturer's warranty.
A large computer system that can handle more instructions and process data faster than smaller computers is a
a. mainframe. b. microcomputer. c. minicomputer. d. super computer. e. central processing unit.
Money put into a checking account is a/an
a. check. b. investment. c. time deposit. d. NOW account. e. demand deposit.
A form attached to a check that keeps a record of the checks written and any current deposit is a
a. deposit slip. b. check register. c. checkbook. d. check stub. e. sharedraft.
The owner of the checking account and the person who signs the checks is the
a. drawer. b. drawee. c. payee. d. endorser. e. joint owner.
This type of endorsement consists of only the endorser's name.
a. Special b. Full c. Restrictive d. Multiple e. Blank
A form sold by a bank stating that money is to be paid to the person or business named on the form is a
a. bank money order. b. postal money order. c. express money order. d. telegraphic money order. e. traveler's check.
Anyone who buys on credit or receives a loan is a
a. creditor. b. debtor. c. character. d. loan officer. e. trustee.
Which of the following is the formula for computing simple interest?
R'"T b. I=P
T c. I
T d. T=P
I/R e. R-P-'T-T
Calculate the simple interest of $1000 borrowed at 9 for 12 months.
a. $9,000 b. $900 c. $90 d. $9 e. .90
Calculate the interest on a loan for $ 100 at 12 for 60 days.
a. $7.20 b. $2 c. $20 d. $72.00 e. $6
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