BUSINESS 1301 FINAL EXAM VERIFIED STUDY GUIDE
Sarbanes-Oxely Act - Answers - - cracks down on corporate fraud and oversees the
accounting industry.
- It holds CEOs personally responsible for errors in accounting audits.
monetary policy - Answers - managing the economy by altering the supply of money
and interest rates
fiscal policy - Answers - the use of government spending and revenue collection to
influence the economy
4 P's - Answers - Product, Price, Place, Promotion
Calculating break-even volume - Answers - Divide fixed costs by the revenue per unit
minus the variable cost per unit
Capital Budget - Answers - - a budget that highlights a firm's spending plans for major
asset purchases that often require large sums of money
- When a company draws up a capital budget, it is typically doing so to determine
whether it makes financial sense to acquire a specific asset
Project Budget - Answers - a budget that identifies the costs needed to accomplish a
particular project
Cash Flow Budget - Answers - a budget that shows projected cash inflows and outflows
for a specified period
Factoring - Answers - transaction in which a business sells its invoices, or receivables,
to a third-party financial company known as a "factor."
Dept Financing - Answers - - involves borrowing money to be repaid, plus interest
- pay back a loan
Equity Financing - Answers - -involves raising money by selling interests in the
company
- give shareholders stock in your company
Venture capitalist - Answers - investor who either provides capital to startup ventures or
supports small companies that wish to expand
Stock - Answers - shares into which ownership of the corporation is divided
Sarbanes-Oxely Act - Answers - - cracks down on corporate fraud and oversees the
accounting industry.
- It holds CEOs personally responsible for errors in accounting audits.
monetary policy - Answers - managing the economy by altering the supply of money
and interest rates
fiscal policy - Answers - the use of government spending and revenue collection to
influence the economy
4 P's - Answers - Product, Price, Place, Promotion
Calculating break-even volume - Answers - Divide fixed costs by the revenue per unit
minus the variable cost per unit
Capital Budget - Answers - - a budget that highlights a firm's spending plans for major
asset purchases that often require large sums of money
- When a company draws up a capital budget, it is typically doing so to determine
whether it makes financial sense to acquire a specific asset
Project Budget - Answers - a budget that identifies the costs needed to accomplish a
particular project
Cash Flow Budget - Answers - a budget that shows projected cash inflows and outflows
for a specified period
Factoring - Answers - transaction in which a business sells its invoices, or receivables,
to a third-party financial company known as a "factor."
Dept Financing - Answers - - involves borrowing money to be repaid, plus interest
- pay back a loan
Equity Financing - Answers - -involves raising money by selling interests in the
company
- give shareholders stock in your company
Venture capitalist - Answers - investor who either provides capital to startup ventures or
supports small companies that wish to expand
Stock - Answers - shares into which ownership of the corporation is divided
