ITB Final Exam Questions and Answers
Loss - ANS-occurs when expenses are greater than revenue
Profit - ANS-money that a business earns in sales, minus expenses
Entrepreneur - ANS-person who risks their resources, time, and money to start and
manage a business
Business - ANS-organization or activity that provides goods and services to earn a profit
Demographics - ANS-measurable characteristics of a population
Free Trade - ANS-movement designed to help goods and services flow freely across
international boundaries
GDP (Gross Domestic Product) - ANS-total value of all final goods and services
produced w/in a nation's physical boundaries over a given period of time; vital measure
of economic wealth; measures the economic performance of individual nation's
Opportunity Cost - ANS-opportunity of giving up the second-best choice when making a
decision
Comparative Advantage - ANS-when a country makes products at a lower opportunity
cost than other countries
GAAP (General Accepted Accounting Principles) - ANS-accounting rules used to
prepare and standardize the reporting of financial statements, such as balance sheets,
income statements, & cashflow statements for publicly traded companies & many
private companies in the US
OSHA (Occupational Safety and Health Administration) - ANS-a federal agency of the
U.S. that regulates workplace safety and health
Phishing - ANS-online scam that uses e-mail to "fish" for user's private information by
imitating legitimate companies
Taxes - ANS-a compulsory contribution to state revenue, levied by the government on
workers' income and business profits or added to the cost of some goods, services, and
transactions.
, FDIC (Federal Deposit Insurance Corporation) - ANS-The FDIC is an independent
federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. It
was created to maintain public confidence and encourage stability in the financial
system through the promotion of sound banking practices
Bait and Switch - ANS-the action of advertising goods that are an apparent bargain, with
the intention of substituting inferior or more expensive goods
Shortage - ANS-when the demand for a product or service exceeds its supply in a
market
Theory Y - ANS-This is a participative style of management which assumes that people
will exercise self-direction and self-control in the achievement of organizational
objectives to the degree that they are committed to those objectives. Managements
main task in this system is to maximize that commitment.
CFO (Chief Financial Officer) - ANS-a senior executive with responsibility for the
financial affairs of a corporation or other institution
Trademark - ANS-a symbol, word, or words legally registered by use as representing a
company or product
Financial Ratios - ANS-Relationships determined from a company's financial information
and used for comparison purposes. Examples include such often referred to measures
as return on investment (ROI), return on assets (ROA), and debt-to-equity, to name just
three
Hackers - ANS-person who uses computers to gain unauthorized access to data
Offshoring - ANS-the process of basing some of a company's processes or services
overseas, so as to take advantage of lower costs
Federal Reserve Districts - ANS-Reserve Banks hold the cash reserves of depository
institutions and make loans to them. They move currency and coin into and out of
circulation, and collect and process millions of checks each day. They provide checking
accounts for the Treasury, issue and redeem government securities, and act in other
ways as fiscal agent for the U.S. government. They supervise and examine member
banks for safety and soundness. The Reserve Banks also participate in the activity that
is the primary responsibility of the Federal Reserve System, the setting of monetary
policy
Income Statement - ANS-a financial statement that reports a company's financial
performance over a specific accounting period
Loss - ANS-occurs when expenses are greater than revenue
Profit - ANS-money that a business earns in sales, minus expenses
Entrepreneur - ANS-person who risks their resources, time, and money to start and
manage a business
Business - ANS-organization or activity that provides goods and services to earn a profit
Demographics - ANS-measurable characteristics of a population
Free Trade - ANS-movement designed to help goods and services flow freely across
international boundaries
GDP (Gross Domestic Product) - ANS-total value of all final goods and services
produced w/in a nation's physical boundaries over a given period of time; vital measure
of economic wealth; measures the economic performance of individual nation's
Opportunity Cost - ANS-opportunity of giving up the second-best choice when making a
decision
Comparative Advantage - ANS-when a country makes products at a lower opportunity
cost than other countries
GAAP (General Accepted Accounting Principles) - ANS-accounting rules used to
prepare and standardize the reporting of financial statements, such as balance sheets,
income statements, & cashflow statements for publicly traded companies & many
private companies in the US
OSHA (Occupational Safety and Health Administration) - ANS-a federal agency of the
U.S. that regulates workplace safety and health
Phishing - ANS-online scam that uses e-mail to "fish" for user's private information by
imitating legitimate companies
Taxes - ANS-a compulsory contribution to state revenue, levied by the government on
workers' income and business profits or added to the cost of some goods, services, and
transactions.
, FDIC (Federal Deposit Insurance Corporation) - ANS-The FDIC is an independent
federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. It
was created to maintain public confidence and encourage stability in the financial
system through the promotion of sound banking practices
Bait and Switch - ANS-the action of advertising goods that are an apparent bargain, with
the intention of substituting inferior or more expensive goods
Shortage - ANS-when the demand for a product or service exceeds its supply in a
market
Theory Y - ANS-This is a participative style of management which assumes that people
will exercise self-direction and self-control in the achievement of organizational
objectives to the degree that they are committed to those objectives. Managements
main task in this system is to maximize that commitment.
CFO (Chief Financial Officer) - ANS-a senior executive with responsibility for the
financial affairs of a corporation or other institution
Trademark - ANS-a symbol, word, or words legally registered by use as representing a
company or product
Financial Ratios - ANS-Relationships determined from a company's financial information
and used for comparison purposes. Examples include such often referred to measures
as return on investment (ROI), return on assets (ROA), and debt-to-equity, to name just
three
Hackers - ANS-person who uses computers to gain unauthorized access to data
Offshoring - ANS-the process of basing some of a company's processes or services
overseas, so as to take advantage of lower costs
Federal Reserve Districts - ANS-Reserve Banks hold the cash reserves of depository
institutions and make loans to them. They move currency and coin into and out of
circulation, and collect and process millions of checks each day. They provide checking
accounts for the Treasury, issue and redeem government securities, and act in other
ways as fiscal agent for the U.S. government. They supervise and examine member
banks for safety and soundness. The Reserve Banks also participate in the activity that
is the primary responsibility of the Federal Reserve System, the setting of monetary
policy
Income Statement - ANS-a financial statement that reports a company's financial
performance over a specific accounting period
