Business Level 2
A business owned and managed by a single individual.
What is a sole proprietorship?
Reasons why corporations are considered legal entities.
What are rights, responsibilities, and liabilities?
ONLY LEVEL 2 QUESTION: The three groups who impact the economy through their interests and decisions?
Who are individuals, businesses, and the government?
Purpose of Money: People accept money in return for selling a good or service.
What the Federal Reserve estimates when they attempt to insert or deplete money in the economy.
What is the demand for the dollar?
A business organization owned by two or more persons.
What is a partnership?
Reasons for the large disparity between the percentage of businesses and the percentage of sales between sole proprietorships and corporations.
What is the power of money, national organization, and mass location spreading of corporations?
Ways individuals can help out the economy if it goes into a recession.
What is investing money into banks and businesses?
Purpose of Money: People need to be able to trade things of different value and money must be available in smaller or larger units.
Why is divisible money?
The amount of time it will take to double a $10,000 principal in a savings account with an interest rate of 9%. The name of the shortcut to do this without the compound interest formula.
What is eight years and what is the Rule of 72?
A legal entity owned by stockholders.
What is a corporation?
The amount of liability for both Ben and Jerry if Ben has an ice cream parlor and is an expert in ice cream making and flavors, but he sucks at handling money and keeping up with taxes. Jerry becomes a limited partner and handles the accounting and hiring side of the company.
What is unlimited liability for Ben and limited liability for Jerry?
Impact of a business increasing market power and share.
What are higher prices, less output, lower competition, and poorer quality?
Purpose of Money: Money must be able to be saved and used in the future.
What is Store of Value?
The interest you want as a saver/investor, and the interest you want as a consumer.
What is compound interest and what is simple interest?
The inefficient distribution of goods and services in the free market.
What is a market failure?
A monopoly not usually regulated by the government.
What is a natural monopoly?
Ways the U.S. federal government can solve inflation.
What is increasing taxes and decreasing government spending?
The first step you should make to solve your debt.
What is examining your budget and cutting expenses?
The reason why almost all societies have moved from barter to money in order to exchange goods.
What is the double coincidence of wants?
The four different types of market structures.
What is free competition, monopolistic competition, oligopoly, and monopoly?
There are three different ways businesses gain market power.
What is predatory pricing, merging other companies, and creating cartels?
Ways the Federal Reserve can get the U.S. out of a recession.
What is lowering reserve requirements, lowering discount window, and buying bonds.
Money whose worth comes from the intrinsic value of the commodity.
What is commodity money?
The key differences between a credit union and a commercial bank.
What is better rates for credit unions and more products for banks?