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How To Form A Business
Economics
Accounting & Finance
What's the difference?
Open-Ended
100
This is one company's purchase of the property and obligations of another company
What is acquisition (Ch. 5, pg 129)
100
This is the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.
What is economics (Ch. 2, pg 30)
100
This is is the recording, classifying, summarizing, and interpreting of financial events and transactions that affect an organization.
What is accounting (Ch. 17, pg 456)
100
How does managerial accounting differ from financial accounting?
Managerial accounting provides information and analyses to managers within the firm to assist them in decision making. Financial accounting provides information and analyses to external users of data such as creditors and lenders.
100
What are the two branches of economics? Please give a small definition for both.
There are two major branches of economics: macroeconomics studies the operation of a nation's economy as a whole, and microeconomics studies the behavior of people and organizations in particular markets (e.g., why people buy smaller cars when gas prices go up).
200
This is a business owned and controlled by the people who use it - producers, consumers or workers with similar needs who pool their resources for mutual gain.
What is a cooperative (Ch. 5, pg 137)
200
This is the degree of competition in which a large number of sellers produce very similar products that buyers nevertheless perceive as different
What is monopolistic competition (Ch. 2, pg. 39)
200
These are the methods we use to record and summarize accounting data into reports
What is an accounting system (Ch 17, pg 478)
200
What is the difference between capitalism and socialism?
Capitalism is an economic system in which all or most of the means of production and distribution are privately owned and operated for profit. Socialism is an economic system based on the premise that some businesses should be owned by the government.
200
What are the advantages and disadvantages of sole proprietorships?
The advantages of sole proprietorships include ease of starting and ending, ability to be your own boss, pride of ownership, retention of profit, and no special taxes. The disadvantages include unlimited liability, limited financial resources, difficulty in management, overwhelming time commitment, few fringe benefits, limited growth, and limited life span.
300
This is a company similar to an S corporation but without the special eligibility requirements.
What is a limited liability company (LLC) (Ch. 5, pg 126)
300
This is an economic system in which some allocation of resources is made by the government and some by the market
What is a mixed economy? (Ch. 2, pg 43)
300
This is conducted by a public accountant and is an evaluation and unbiased opinion about the accuracy of a company's financial statements
What is an independent audit (Ch. 17, pg 478)
300
What is the difference between a private accountant and a public accountant?
A public accountant provides services for a fee to a variety of companies, whereas a private accountant works for a single company. Private and public accountants do essentially the same things with the exception of independent audits. Private accountants do perform internal audits, but only public accountants supply independent audits.
300
What is a mixed economy and what countries have a mixed economy?
A mixed economy is part capitalist and part socialist. Some businesses are privately owned, but taxes tend to be high to distribute income more evenly among the population. The United States has a mixed economy, as do most other developed countries.
400
This is the joining of two companies involved in different stages of related businesses.
What is a vertical merger (Ch. 5, pg 129)
400
This is an index that measures prices at the wholesale level
What is Producer Price Index (PPI) (Ch. 2, pg 48)
400
These are long term liabilities that represent money lent to the firm that must be paid back
What are bonds payable (Ch. 17, pg 467)
400
What are the main differences between general and limited partners?
General partners are owners (partners) who have unlimited liability and are active in managing the company. Limited partners are owners (partners) who have limited liability and are not active in the company.
400
What are the key economic indicators in the U.S.? (Hint: there are three)
Gross domestic product (GDP) is the total value of final goods and services produced in a country in a given year. The unemployment rate refers to the percentage of civilians at least 16 years old who are unemployed and tried to find a job within the most recent four weeks. The consumer price index (CPI) measures changes in the prices of about 400 goods and services that consumers buy.
500
This is a partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax
What is master limited partnership (MLP) (Ch. 5, pg 117)
500
This is a situation where the economy is slowing but prices are going up anyhow
What is stagflation (Ch. 2, pg 47)
500
This is a financial statement that reports cash receipts and disbursements related to a firm's three major activities: operations, investments and financing
What is the statement of cash flows (Ch. 17, pg 471)
500
What is the difference between unlimited liability and limited liability?
Unlimited liability means that sole proprietors and general partners must pay all debts and damages caused by their business. They may have to sell their houses, cars, or other personal possessions to pay business debts. Limited liability means that corporate owners (stockholders) and limited partners are responsible for losses only up to the amount they invest. Their other personal property is not at risk.
500
What are the four phases of business cycles?
In an economic boom, businesses do well. A recession occurs when two or more quarters show declines in the GDP, prices fall, people purchase fewer products, and businesses fail. A depression is a severe recession. Recovery occurs when the economy stabilizes and starts to grow.