Banks and financial crisis
Name at least 2 types of banks.
Central banks, retail banks, private banks, investment banks
What is crowdfunding?
Raising money for businesses by collecting small contributions from a large number of people.
What is venture capital?
Financing provided by firms or funds to startup companies with high growth potential.
Any individual or group that has an interest in or is affected by the activities of a business.
Stakeholder.
Define "assets" in accounting.
Resources owned by a company that provide future economic benefits.
When did the Global Financial crisis start?
2008
Why was microfinance originally established?
To allow people with low or no income access credits and loans.
Explain the term Angel investor.
A person who invests money in a new business to help it get started.
What does ROI stand for, and what does it measure?
Return on Investment; it measures the gain or loss generated on an investment relative to the amount of money invested.
What is the primary purpose of accounting?
To provide financial information about a business to stakeholders.
Name 3 main roles of banks in the economy
Financing household consumption; Financing companies' investments; Circulating money
What is breakeven point?
The point at which a business's total revenue exactly equals its total costs, resulting in neither a profit nor a loss.
What is a SWOT analysis?
A provisional analysis of Strengths, Weaknesses, Opportunities and Threats.
The combination of two companies to form a new company.
Merger
What is the accounting equation?
Assets = Liabilities + Equity.
What was the main reason of Subprime crisis?
Banks offering high-risk home loans to borrowers with poor credit, which led to defaults (the prices of houses dropped and the interest rates increased)
What is sharing economy? Give at least one example of a business based on sharing economy.
Economic model where individuals share access to goods and services, often though online platforms (Airbnb, BlaBlacar).
Name at least two disadvantages or potential risks of accepting venture capital for a startup?
Potential loss of control over company’s decisions; High expectations for growth
Strategic process of identifying and managing the factors that could positively or negatively affect company's future
Risk management
What is the term for the process of recording financial transactions?
Bookkeeping
What institution established in 1944 was meant to grant loans to developing countries?
The World Bank
Name at least 2 disadvantages of microcredits?
High interest rates; High risk for borrowers; Risk of over-debts; Low impact on poverty reduction.
What is the term for a company that is already established and holds a significant share of the market within its industry?
Incumbent.
This term refers to the difference between a company's total revenue and total costs
Net income
What does GAAP stand for?
Generally Accepted Accounting Principles