Finance
Jimmy bought a TV for $3000 using his debit card, but he had only $2900 in his bank account. The bank charged him $40 fee. This fee is an
overdraft fee
Latoya plans to open a hair salon. She has plenty of startup money and all the skills required to run the business. Latoya wants to retain complete ownership and make all the decisions on her own. What form of business organization would best suit her?
sole proprietorship
These scores are based on a person's credit history and used by lenders and credit card issuers to help decide whether to approve your credit application.
FICO
Your home and personal property insurance policy covers your property against any number of events. From theft to fire, you’ll receive the means to make the repairs and cover the replacements. But floods typically aren’t included in home insurance policies unless
you get a special flood insurance rider
At a price of $500 per unit, sellers will offer 75,000 phones, and at a price of $900 per unit they will offer 100,000 phones. This illustrates
law of supply
The type risk that cannot be controlled and has two outcomes complete loss or no loss at all
pure risk
Which of the following are the biggest disadvantages of sole proprietorships and partnerships?
unlimited personal liability, difficult to raise capital
Which of the following provides a revolving line of credit
credit card
For years, Luciana ran her small food truck on her own with occasional unpaid assistance from her son and brothers. But as she plans to buy two more truck, she will have to hire workers. In addition to their salary she will also have to pay for
workers' compensation insurance
14. At a price of $19.99 a pair buyers will take 20,000 pairs of glasses, and at a price of $36.99 they will take 12,000 pairs. These facts illustrate
law of demand
The type of risk that results in an uncertain degree of gain or loss.
speculative risk
Which of the following forms of business organization allows for double taxation?
corporation
Equifax, Transunion, and Experian are the three
major credit reporting agencies
This legal principle protects government officials such as police officers from civil lawsuits so long as the officials did not violate “clearly established” law. This makes suing such officials personally very difficult but does not stop victims from suing the agencies these officials work for.
qualified immunity
A type of business where two or more people share ownership and are personally liable.
partnership
A personal credit history report issued by one of the major reporting agencies includes a FICO score that ranges from
300 to 850 points
Ahmed plans to start a new business. He has plenty of money for startup costs but lacks creativity. Instead of coming up with a new business model, a great new product, or developing a new hot brand, he’d like to use an already well-established brand name and business model. What form of business organization would best suit him?
franchise
Dorothy recently started a company called Fartech with two other partners . Fartech is a very young company, as it has several innovative software products in development but none are available to the market yet. Dorothy and her partners have put in almost all of their personal savings into the company, but they still need over $350,000 to complete and market their product. They don't have any property that they are prepared to use as collateral. What's the best way for Fartech get the financing they need.
find an angel investor
Many states require Doctors and Lawyers to have this type of insurance to protect against negligence in providing professional services.
malpractice insurance
One criticism of the civil asset forfeiture, which allows law enforcement officials to take property that they suspect has been involved in criminal activity, is that
a person can lose their property without being found guilty of a crime
Abayomi lives in Burundi, and I wants to start a business making and selling pagnes. She doesn't have any credit history, and no personal savings. She also doesn't own any property that could be used for collateral. All she needs to get started is $1,500, and she is willing to pay it back within three months. How can Abayomi get the financing for her business
turn to a lender that specializes in microfinancing
Jamar and Alex came up with a new plant based meat substitute. They would like to start a company to produce and sell their new product, but to do so successfully they will need a lot of outside investment. They don’t want to be held personally responsible for any debts their company may accumulate. What form of business organization would best suit them?
corporation
James and Latifah, produce innovative health and beauty products. They started making them out of their home in Brooklyn, NY, but they have been very successful over the past ten years and expanded their business into a reputable, well established, high-growth enterprise. They currently have their own lab and three factories and over 700 employees. So far their products are only sold on the east coast of United States, but they have been approached by large retailers from Europe and Asia who are prepared to sell their products if they are able to triple their production. James and Latifah need $3,575,000 in addition to their savings to sufficiently expand their production. They are not willing to borrow the money. What's the best way for James & Latifah to get the financing they need.
turn to a venture capital fund
What is the opportunity cost to a business that chooses to spend $10 million on a raising wages in order to attract more qualified and talented employees rather than on a new a new building to increase office space?
Gains that would have resulted from acquiring a new building
One of the big advantage of organizing your business as a corporation is
limited liability