Business Finance - Chapter 2 - Financial Environment of Business

The two primary ways governments r involved in businesses are in legal requirements & taxation.

Scarcity means deciding which wants and needs will be satisfied and which will go unsatisfied.

In a market economy anyone can start & operate a business if they have the resources & ability.

Based on the combination of the decisions made by individual consumers and businesses.

The type of ownership structure that will have difficulty in obtaining financing is the corp. 

The form of financial ownership in which profits can be taxed twice is 

The organized exchange of the ownership shares of public corporations is a 

The government has the primary influence on economic decisions in a command economy.

Most businesses operating in the U.S.today are largely unaffected by the global environment. 

Capital markets are used to finance short-term debt of less than a year.

The largest trading market in the world is the  

A company that transcends national boundaries and is not committed to a single home country is 

Specialize in buying & selling financial instruments for short time periods of a year or less.

Which of the following is not a principle of a free enterprise economy? 

An exchange rate is the value of one currency in terms of another.

Stock markets, bond markets, and currency markets are all examples of financial markets.

The possibility that an expected profit will not be achieved.

The amount of a product or service that individuals want to buy to satisfy their wants & needs.

The length of time invested money is controlled by others is known as the  

Financial decisions of businesses&consumers are influenced as much by the state of the economy.

The means available to develop solutions for unsatisfied wants and needs.

A distinct legal entity formed by completing required legal documents in a specific state.