DECA Finance Exam 2023 with 100% correct answers

debtor-creditor relationship A debtor is someone who owes a financial obligation (a "debt") to another, known as the creditor. Interest must be charged. affinity fraud - Affinity fraud refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups. - The fraudsters who promote affinity scams frequently are - or pretend to be - members of the group. - Many affinity scams involve Ponzi or Pyramid schemes phishing the fraudulent practice of sending emails purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers. Types of communication (up and downward and lateral) - Upward: process of information flowing from the lower levels of a hierarchy to the upper levels - Downward: occurs when information and messages flow down through an organization's formal chain of command or hierarchical structure. In other words, messages and orders start at the upper levels of the organizational hierarchy and move down toward the bottom levels. - Lateral/Horizontal: the exchange, imparting or sharing of information, ideas or feeling between people within a community, peer groups, departments or units of an organization who are at or about the same hierarchical level as each other for the purpose of coordinating activities, efforts or fulfilling a common purpose or goal. economic resources Economic resources are the goods or services available to individuals and businesses used to produce valuable consumer products. Include land, labor, capital, and entrepreneurship, also known as factors of production. convergence ratio the measure of a company's ability to meet its financial obligations. In broad terms, the higher the coverage ratio, the better the ability of the enterprise to fulfill its obligations to its lenders.