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Business Essentials - Finance
Business Essentials - Finance
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Questions
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1
debt investment in which an investor loans money to an entity for a period of time
break-even point
annual report
bond
budget
2
Acompany gets money from shareholders when
its stock is issued
it makes a profit
shares are traded between buyers
3
a comprehensive report on a company's activities throughout the preceding year
budget
bond
annual report
break-even point
4
production level where total revenues equal total expense
break-even analysis
annual report
bond
budget
5
theloss of potential gain from other alternatives when one alternative is chosen
opportunity cost
net worth
budget
mutual fund
6
the action or process of investing money for profit or material result
inflation
credit report
investment
diversification
7
Investment program funded by shareholders that trades in diversified holdings and is managed
mutual fund
net worth
opportunity cost
credit report
8
a risk management technique that mixes a wide variety of investments within a portfolio
credit report
inflation
investment
diversification
9
Interest earned on interest occurs with
diversification
compounding
buying on margin
10
anestimate of income and expenditure for a set period of time
annual report
bond
break-even analysis
budget
11
anestimate of the ability of a person or organization to fulfill their financialcommitments
diversification
inflation
credit report
investment
12
___________________ is a type of checking account that pay a smallamount of interest
Debt owed
World bank
Interest earning
Commerical
13
conceptapplicable to individuals and businesses as a key measure of how much an entityis worth
opportunity cost
credit report
mutual fund
net worth
14
a general increase in prices and fall in the purchasing value of money
credit report
diversification
investment
inflation
15
The statement “risk and reward are related” implies
the lower the risk the lower the reward
making money in the stock market is risky
there is no reward in taking a risk