Investing in the Free-Enterprise System
Types of Financing for Business Operations
The Production Process
Miscellaneous
100
What do financial institutions do with money that depositors invest?
They make these deposits available to businesses to finance growth and expansion.
100
When a business borrows funds for 1-10 years
What is intermediate-financing
100
The process of changing resources into goods.
What is production?
100
Breaking down of a job into smaller tasks.
What is division of labor?
200
The comparison of the estimated cost of an action with the estimated benefits of that action.
What is cost-benefit analysis?
200
Raising funds for a business through borrowing
What is debt financing?
200
Production process which combines the labor of people and large, power-driven machines.
What is mechanization?
200
Name three of the four methods of short-term financing.
1) Trade Credit 2) Unsecured Loans 3) Secured Loans 4) Line of Credit
300
Name at least one cost of business expansion.
Expansion, training new workers, equipment, etc.
300
When a business borrows funds for any period of time less than a year.
What is short-term financing?
300
Production system in which the good being produced moves on a conveyor belt past workers who perform individual tasks in assembling it.
What is the assembly line?
300
Give an example of consumer goods.
Any product or good sold directly to individuals to be used as they are.
400
What is the difference between profit and revenue?
Revenue = total income from sales of output Profit = amount earned after you subtract costs from revenues
400
Borrowing funds for longer than 10 years or issuing stock.
What is long-term financing?
400
Production process in which machines do the work and people oversee them.
What is automation?
400
When interest rates are high, is a company more or less likely to pursue debt-financing?
Less
500
What are examples of unintentionally and intentionally financing investments?
Unintentional = CDs & Saving Accounts Intentional = Corporate bonds & stocks
500
Name the four factors that effect financing decisions.
1) Control of the Company 2) Interest Rates 3) Market Climate 4) Company's Financial Condition
500
Sophisticated, computer-controlled machinery that operates the assembly line.
What is robotics?
500
What is my first and last name? (Correct spelling)
T-R-O-Y P-E-T-R-I-E
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