Personal Finance Certification Test Review
Study online at https://quizlet.com/_2agqb2
1. Company A voluntary association formed and organized to carry on a busi-
ness
2. Sole Proprietorship Most common form of business ownership in which one individual
acquires all of the benefits and risk of running an enterprise
3. Partnership A business or firm owned and run by two or more people
4. Corporation A company or group of people authorized to act as a single entity
and recognized as such in a law
5. Private Corporation The company is owned by the companies founder, management,
or group of private investors
6. Public Corporation Has sold a portion of itself to the public via an initial public offering
7. Trade-off Giving up one thing for another
8. Opportunity Cost The value of the trade-off (what was given up)
9. Emergency Fund money set aside that can be accessed quickly (3-6 months worth)
10. Federal Reserve Bank for the banks
11. Commercial Bank Bank for consumers/businesses
12. Credit Union Financial institutions for members with a common bond
13. Certificate of Deposit Used for immediate term saving goals
14. Money Market Account Offers high rate of returns on deposits
15. Net Worth The measure of financial wealth
16. Asset Everything a person owns
1/2
Study online at https://quizlet.com/_2agqb2
1. Company A voluntary association formed and organized to carry on a busi-
ness
2. Sole Proprietorship Most common form of business ownership in which one individual
acquires all of the benefits and risk of running an enterprise
3. Partnership A business or firm owned and run by two or more people
4. Corporation A company or group of people authorized to act as a single entity
and recognized as such in a law
5. Private Corporation The company is owned by the companies founder, management,
or group of private investors
6. Public Corporation Has sold a portion of itself to the public via an initial public offering
7. Trade-off Giving up one thing for another
8. Opportunity Cost The value of the trade-off (what was given up)
9. Emergency Fund money set aside that can be accessed quickly (3-6 months worth)
10. Federal Reserve Bank for the banks
11. Commercial Bank Bank for consumers/businesses
12. Credit Union Financial institutions for members with a common bond
13. Certificate of Deposit Used for immediate term saving goals
14. Money Market Account Offers high rate of returns on deposits
15. Net Worth The measure of financial wealth
16. Asset Everything a person owns
1/2
