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Economics Chapter 7-8 Flashcards | StudBud
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Economics Chapter 7-8
Shares of ownership in a corporation
President of a corporation
Economics Chapter 7-8
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1
President of a corporation
Chairman of the board
Investor
Shareholder
CEO
2
Shares of ownership in a corporation
stocks
bonds
receipts
voucher
3
Which of the following is not a question that a general partnership contract must answer?
How many a partner withdraw from the partnership?
What is the limit of each partners liability?
What is each partner responsible to do?
How are the profits to be divided?
4
One of the primary causes of the stock market crash of 1929
run on the banks
collapse of the supply chain
economic recession
speculative bubble
5
Approximately how many businesses fail within five years?
one-half
one-fourth
one-third
two-thirds
6
Which business type gives its owners the most freedom?
Corporation
General partnership
Limited partnership
Sole proprietorship
7
Where were the first stock exchanges located?
Holland and England
Spain and Portugal
New York and Philadelphia
France and Austria
8
Which of these is one of the key advantages of a corporation?
Too big to fail
Unlimited personal financial responsibility
The ability to respond immediately to changes in the market
The ability to secure financing at lower interest rates
9
The term for a corporation's first sale of stock
public investment opportunity
stock split
preliminary stock option
initial public offering
10
A collection of stocks from several different corporations
market binder
stock portfolio
investment folder
stock certificates
11
A person who specializes in buying and selling stocks for clients
investor
stockbroker
day trader
account manager
12
According to the text, what disadvantage often results from a corporation’s great size?
Low quality
Overemployment
Impersonality
Inefficiency
13
In the eyes of the law, a corporation possesses what two important qualities?
Individuality and immortality
Immortality and taxability
Flexibility and profitability
Liability and taxability
14
Someone to whom a debt is owed
creditor
stockholder
cosigner
partner
15
Charles Dow and Edward Jones started which publication?
Washington Post
Daily Star
Wall Street Journal
Daily Bugle
16
What term is used to describe the market when it is going up?
bubble market
pig market
bear market
bull market
17
What universal human problem leads to some of the disadvantages of partnerships?
Money
Desire to be happy
Our sin nature
Compromise
18
What is the primary advantage of partnerships over sole proprietorships?
Greater flexibility
Greater longevity
Greater liability protection
Greater financial resources
19
Which statement best summarizes JC Penney's business philosophy?
Do unto others as you would have them do to you
A penny saved is a penny earned
He that is master of himself will soon be master of others
The customer is always right
20
Which index is important since it reflects US consumer spending on services?
S&P 500
DJIA
NASDAQ
NYSE
21
What is the chief advantage of incorporating a company?
Limited personal liability
Ease of formation
Secrecy of business information
Freedom from excessive taxes
22
One of the most common uses of the stock market
retirement planning
betting on sporting events
NFT's
tracking government spending
23
Which type of corporation is owned and operated by the government?
public corporation
C corp
private corporation
S corp
24
Portions of ownership in a company
Partnership
Surety
Stock
Capital
25
The stock exchange famous for not having a "floor" for trading
Amex
NASDAQ
NYSE
London Stock Exchange
26
What important business factor can sole proprietorships protect better than corporations can?
Customers
Financial resources
Information
Competition
27
An investor with no liability and few or no duties in the company
Cosigner
Shareholder
Surety
Limited partner
28
The book of the Bible that gives a good deal of advice about personal financial practices
Colossians
Ecclesiastes
Proverbs
Ruth
29
The electronic message board which displays current stock prices and transactions
tape
price sheet
bulletin board
teleprompt
30
A business with fewer than 35 shareholders can form this type of corporation
Limited partnership corporation
Subchapter S corporation
Type C corporation
Limited liability corporation
31
Someone who agrees to pay back a loan if the original borrower cannot
Stockholder
Silent partner
Cosigner
Creditor
32
A distribution of a portion of a corporation's profits
payout
allocation
dividend
issuance
33
A fee paid to a broker for their services
retainer
commission
per diem
dividend
34
According to the textbook, a corporation’s complex organizational structure can sometimes lead to accusations of ______.
an overemphasis on performance
a waste of financial resources
an obsession with rules and hierarchy
an inability to respond to the market
35
Buying and selling stocks for the purpose of taking advantage of short-term price changes to make money
day trading
crashing the market
short selling
speculation
36
What great risk balances out the advantages of both the sole proprietorship and the partnership models?
Unlimited financial liability
Lack of independence
Lack of accountability
Limited management skills
37
The last to receive payment if a corporation goes bankrupt and sells all its assets
preferred shareholders
employees
creditors
common shareholders
38
Person on the trading floor who makes the requested trades
floor trader
buyer
broker
messenger
39
Although not required, a legal contract offers protection for those entering this kind of business ownership
Partnership
Sole proprietorship
40
How many companies were originally listed on Charles Dow's index?
twenty-five
fifty
one hundred
twelve
41
Where the first American stock exchange was located
New York
Boston
Washington, DC
Philadelphia
42
Which of these actions can stockholders vote on?
expanding into a new market
all of these
hiring or firing a manager
electing a board of directors
43
Which of the following is an advantage of a sole proprietorship?
Limited financial liability
Freedom from outside control
Management and employee skills
Availability of money
44
Becoming security for another's debt
Collateral
Surety
Mortgage
Brokerage
45
Which type of business generally has the shortest lifespan?
Partnership
LLC
Corporation
Sole proprietorship
46
Which of these is not one of the three primary types of business forms discussed in the chapter?
Limited liability corporation
Sole proprietorship
Corporation
Partnership
47
If you buy 30,000 shares of company stock and they have 120,000 shares, how much of the company do you own?
one-fourth
half
two-thirds
one-third
48
The most popular business model in the United States today
Corporation
Partnership
Sole proprietorship
Limited liability company
49
Which of the following is not an accurate criterion for an LLC?
Foreign partners allowed
No more than 50 shareholders
No regular shareholder meeting is required
Governed by an operating agreement
50
A stock portfolio managed by a private brokerage
dividend account
managed account
401(k)
mutual fund
51
The SEC was founded as a response to what historical event?
Civil War
Panic of '93
Great Depression
Panic of 1837
52
Which of the following is considered the best health indicator of American industry?
Amex
S&P 500
NYSE
DJIA
