Finance basics
What is finance?
The management of money.
What is a business?
An organization that sells goods or services.
What is economics?
The study of how people use limited resources.
What is accounting?
Recording and reporting financial transactions.
Which company makes the iPhone?
Apple
What is a budget?
A plan for income and expenses.
What is a startup?
A newly established business, often designed to grow quickly.
What is supply?
The amount of a product sellers are willing to offer.
What are expenses?
The costs a business pays to operate.
Which company is famous for its golden arches logo and hamburgers?
McDonald's
What is the difference between saving and investing?
Saving keeps money for future use, while investing aims to grow it.
What is revenue?
The money a business earns from sales.
What is demand?
The amount of a product consumers are willing and able to buy.
What is an asset?
Something valuable that a person or business owns or controls.
Which company makes PlayStation?
Sony
What is interest on a loan?
A plan for income and expenses.
What is the difference between revenue and profit?
Revenue is total income from sales; profit is what remains after costs.
What is inflation?
A general increase in prices over time.
A company earns $1,000 and spends $700. How much profit does it make?
$300
Which company is famous for its three stripes and sportswear?
Adidas
If you invest $1,000 and earn a 10% return, how much profit do you make?
$100
Why do businesses analyze their competitors?
To understand the market and improve their competitive advantage.
What happens to demand when the price of a product rises, assuming other factors remain unchanged?
The quantity demanded usually decreases.
A company earns $5,000 and spends $3,500. What is its profit?
$1,500.
Which company is famous for its green mermaid logo and coffee shops?
Starbucks