Key Terms
The difference between revenue and expenses
What is profit?
"Oh man! Our company is struggling to make ends meet! We're not making any profit, UGH! We need to hire someone who specializes in _____"
What is finance?
Does profit increase or decrease if revenue is greater than expense?
What is increase?
Large sum of money being borrowed from major lenders over a long period of time
What is Bonds?
I'm going to lend Mitch $500 to start his business with an ROI of 5%, so the total money I should get back would be _____
What is $525
What taxes are used to influence competitive balance in Sports?
What is Luxury Tax?
You have to pay back the principle + interest
What is Debt?
What is default?
What league uses a soft cap when it comes to salary caps?
What is the NBA?
Faced with no direct competition and gives them great bargaining power
Monopolies
"I have $500 to spend. The shoes I want are $400. My 2 school textbooks cost $250 each. _____ will be a better investment based on my budget."
What are textbooks?
This term positively correlates with uncertainty
What is risk?
Shows expected dollar value return on each alternative investment, stated as a percentage of the original cost of each investment
What is Return Of Investment (ROI)?
"I'm going to print the same exact logo on two hoodies. 5 Hoodie A costs $20 each to make. 3 Hoodie B costs $60 each to make. I will sell them both for $100 each. ________ will give me the greatest profit when all hoodies are sold."
What is Hoodie A?
I'm a gym owner and these are my primary assets.
What are gym equipments and buildings?