Key Terms
Used when a business anticipates risk and refrains from certain business activities in order to avoid the risk.
Risk Avoidance
Monetary objectives of an individual, business or other organization that are decided by future needs of those entities
Financial Goal
If you are considering the possible consequences of each decision you could make, you are
assessing risk
True or False: Financial companies often enjoy higher earnings as a result of convergence and consolidation
True
Explain the nature of effective written ______
Funds available to a business or person for spending in the form of cash, credit or securities
Financial Resources
Any activity where money is put at risk in the short term for the purpose of creating a profit in the long term.
Invest
True or false: It is acceptable for a business to distribute its customers personal information without their consent to third parties
False
The Middleton Company uses customer relationship management software to categorize customers by their sales-dollar volume over a specific period of time. In this situation, the Middleton Company is using ______ analytics to segment customers
profitability
Interpret securities _____
tables
These provide a comparison between financial statement items to determine the strengths or weaknesses of a company. The most common are net sales to ent worth and net income to net sales
Financial Ratio
The portion of disposable income that is not spent on essential expenses in a household or business.
Savings
During a job interview, job applicants can indicate their interest in the job by asking questions about the
company
Joanna works as an accoutnant for a construction company. She is drafting a budget to determine whether the company has enough money to start construction ona new high-rise Building. As part of her research for the budget, Joanna examines the company's accounts payable and receivable Jpanna is drafting a ______ budget
cash flow
Identify sources that provide relevant, valid _____ material
written
The amount spent to acquire or upgrade an asset that will increase the efficiency of the production or operations of a business for the long term
Capital Expenditures
A decision making tool that compares the cost of an activity versus the benefits of the activity
Marginal Analysis
The Frank and Fitzer Corporation pays federal and state income tax on its earnings. Its stockholders also pay taxes on any dividend that they receive from the company. Frank and Fitzer's earnings are subject to ______ taxation
double
How do many professionals reduce their risks associated with client or patient lawsuits?
Obtain professional liability insurance
Explain the role of business in _____
society
Information provided regarding an investment instrument issued by a corporation, government or other organization that demonstrates whether it is debt or equity.
Securities Information
A tax paid by workers so that they may receive benefits upon retirement.
Social Security/ FICA
According to most analysts, the three economic indicators that stock market investors and traders should pay the closest attention to are
gross domestic product, unemployment, and inflation (give them the points if they get 2/3 correct)
A public corporations board of directors has the fiduciary responsibility to ensure that the company makes decisions that protect the financial interests of _____
all shareholders
Explain the nature of ______
operations