Economics
The rivalry between businesses in order to gain larger shares of the market is called:
competition
Which of the following forms of ownership provides the benefit of a nationally recognized name and product?
franchise
Name the retirement investment option that offers possible employer match and current income tax advantages:
401K
Dividing the market using a group’s values, attitudes, and interests is known as which type of segmentation?
a. geographic
b. demographic
c. psychographic
d. behavioral/usage
c. psychographic
What situation would result in a fee from your bank?
a. using an out-of-network ATM
b. depositing a check at your branch
c. withdrawing money from your bank
d. checking your bank account balances online
a. using an out-of-network ATM
A general rise in the level of prices throughout an economy is known as:
inflation
This form of ownership tends to be an attractive form of business ownership to an individual who has a strong desire to be their own boss.
sole-proprietorship
This is an institution that is nonprofit, owned by its members, and limited to people with a common bond:
credit union
Which component of the marketing mix focuses on how products are delivered to consumers?
place
James deposits $10,000 into a savings account. Time passes and now he has $11,400. What does the additional $1,400 represent?
interest
The quantity of a product that producers are willing and able to sell is called:
supply
Which form of business ownership creates the greatest percentage of total revenue in the United States?
corporations
Which of the following is considered to be the most liquid (most easily converted to cash)?
a. land
b. corporate bond
c. checking account
d. Certificate of Deposit (CD)
c. checking account
Dividing the market using a group’s age, income, and education level is known as which type of segmentation?
demographic
What is the main purpose of banks for consumers?
To offer financial services and provide a safe and secure place to store money.
Last year’s hurricane wiped out 30% of the orange crops for the year. Assuming demand remains the same, what will happen to the price of oranges?
Prices will increase due to the law of supply.
Unlimited liability means that:
Owners are responsible for all business debts.
Interest earned on the principal only is called:
simple interest
Type of advertisement that focuses on the recognition of company name or logo
brand advertisement
What is a peer-to-peer (P2P) payment?
A way to transfer money between individuals using a mobile device or a computer.
Last year’s hurricane caused damage to the town of Andersonville. Largo Oil (a privately owned company) was unable to operate 3 months after the hurricane. The government of Andersonville and the company Largo Oil decided together to raise the price of oil by 30%.
Which economic system is represented by Andersonville?
mixed
In a partnership, an owner who takes the personal financial risk and is actively managing the firm is known as what type of partner?
a. limited
b. general
c. corporate
b. general partner
When the Board of Directors decide to share a portion of their profits to shareholders, they are paying:
dividends
How would your company evaluate the effectiveness of an advertising campaign?
The number of sales / orders
What does it mean when a banking transaction is marked as "pending"?
The transaction is still being processed and the funds have not yet been transferred.