Business 5101 Praxis Practice TEST 100% Pass

Business 5101 Praxis Practice TEST 100% Pass Command Economy Govt. Controlling Prices & Production Security&Exchange Commission(SEC) responsibilities: Regulate securities, investigate insider trading, process applications for initial public offerings(IPO's) Customer's desire for product and ability to obtain product Product demand is directly influenced by: Sarbanes-Oxley Act of 2002 Fight corporate & accounting fraud Buyer's Market Product availability exceeds demand Maslow's hierarchy of needs Self actualization, esteem, safety Debt Repayment History How well you payed stuff back (Directly influences consumer credit) World Trade Organization (WTO) Deals with claims of unfair protectionism by 1 country against another. Tries to reduce trade barriers and governs trade agreements in areas such as agriculture and intellectual property. Low Labor Costs #1 factor that leads American companies to manufacture overseas: Accounting equation & shown in balance sheet. AKA: FUNDAMENTAL ACCOUNTING EQUATION Assets=Liabilities+Owner's Equity Powerpoint Microsoft presentation program- great for presenting business plans, etc. Important tools for starting online business: Business model, website, email address Assets that can depreciate(lose value) over time Heavy equipment(bulldozer), computers, company vehicles These are deductible when itemizing on tax return: Mortgage interest, charitable donations, losses from theft Franchise Individual pays to enter into an agreement with a company to use the company's business model in certain area Par Value of a Bond Amount paid when the bond matures Freddie Mac (1970) was set up to: Expand opportunities for home ownership Raise interest rates If US Federal Reserve sees risk of inflation they will: Stagflation Combination of slow economic growth and high inflation Stock Dividends Usually taxable, offered voluntarily by companies to make their stock more attractive, may be discontinued or stopped at any time P/E ratio Comparison of current price of stock relative to its "per earning share"....its ability to earn money per share. Helps investors to put a value to the company. US Treasury Bonds Govt. bonds that offer safe investment Dow Jones Industrial Average Stock trading market for well known corporations with large market capital Assess personal financial situation 1st step in planning to start small business Net Exporter Value of goods exported by country exceeds value of goods imported by country Import tariff Fee country attaches to imported products to protect domestic products from foreign competition Buying