Business Management Unit 5

Question 1

An institution that accepts demand deposits and makes commercial loans

Accepted Answer

Bank

Question 2

The signature that transfers a negotiable instrument

Accepted Answer

Endorsement

Question 3

Credit used when a customer makes a purchase and makes payments over a fixed time period

Accepted Answer

Installment Credit

Question 4

The difference between current assets and current liabilities

Accepted Answer

Working Capital

Question 5

The uncertainty that a loss may occur

Accepted Answer

Risk

Question 6

The economic health of a community or nation and how it affects credit decisions

Accepted Answer

Conditions

Question 7

A type of bank that is organized as a nonprofit business

Accepted Answer

Credit Union

Question 8

A long-term written promise to pay a definite sum of money at a specified time

Accepted Answer

Bond

Question 9

What a business is worth after subtracting liabilities from assets

Accepted Answer

Capital

Question 10

Provides money that is paid upon the death of the insured to a person identified in the policy

Accepted Answer

Life Insurance

Question 11

Professional who buys and sells corporate securities through a stock firm and gives advice

Accepted Answer

Stockbroker

Question 12

Money invested in the business by its owner or owners

Accepted Answer

Equity Capital

Question 13

A financial plan extending usually for one year

Accepted Answer

Budget

Question 14

Dollar value shown on a share of stock

Accepted Answer

Par Value

Question 15

Property a borrower pledges to assure repayment of a loan

Accepted Answer

Collateral

Question 16

Earning Power

Accepted Answer

Capacity

Question 17

A plastic card with a magnetic strip connected to a credit account and used for purchases

Accepted Answer

Credit Card

Question 18

The value of a share of stock; found by dividing net worth by # of shares outstanding

Accepted Answer

Book Value

Question 19

A loan made to a business

Accepted Answer

Commercial Loan

Question 20

A check that is endorsed for deposit only

Accepted Answer

Restrictive Check

Question 21

Transferring money by computer rather than by check

Accepted Answer

Electronic Fund Transfer

Question 22

A written order on a financial institution to pay previously deposited money to a third party

Accepted Answer

Check

Question 23

Credit and debit card with memory that stores financial, credit, and other kinds of data

Accepted Answer

Smart Card

Question 24

A loan that is not backed by collateral

Accepted Answer

Unsecured Loan

Question 25

A loan that requires the borrower to pledge something of value as security

Accepted Answer

Secured Loan

Question 26

A type of liability insurance that protects from loss from lawsuits for negligence

Accepted Answer

Malpractice Insurance

Question 27

Allows businesses to electronically transfer paychecks from employer's bank to employee's bank

Accepted Answer

Direct Deposit

Question 28

A financial document that reports total revenue and expenses for a specific period

Accepted Answer

Income Statement

Question 29

An account that allows customers to make deposits, earn interest and make withdrawals

Accepted Answer

Savings Account

Question 30

A systematic process of recording and reporting the financial information of a business

Accepted Answer

Accounting

Question 31

Claims against assets or things owed -- the debts of a business

Accepted Answer

Liabilities

Question 32

Allows a person to pay bills, make withdrawals, and pay for onsite purchases

Accepted Answer

Debit Card

Question 33

Organization that specializes in the sale of a variety of stocks, bonds and other securities

Accepted Answer

Investment Companies

Question 34

The written agreement, or contract, between the insurer and the policyholder

Accepted Answer

Policy

Question 35

Savings account where you deposit a specified sum, at a fixed period, at a fixed interest rate

Accepted Answer

Certificate of Deposit

Question 36

No matter who is responsible, each insurance company pays losses of it's insured

Accepted Answer

No-fault Insurance

Question 37

Risk management tool that limits loss from uncontrollable events in exchange for payments

Accepted Answer

Insurance

Question 38

The amount owed by customers

Accepted Answer

Accounts Receivable

Question 39

Things owned, such as cash and buildings

Accepted Answer

Assets

Question 40

The lowest rate of interest; the rate at which large banks loan sums to qualified borrowers

Accepted Answer

Prime Rate

Question 41

Assets = Liabilities + Capital

Accepted Answer

Accounting Equation

Question 42

Reports that summarize financial data over a period of time

Accepted Answer

Financial Statements

Question 43

Ownership with voting privileges and sharing in profits (dividends)

Accepted Answer

Common Stock

Question 44

A share of ownership in a corporation

Accepted Answer

Stock

Question 45

An indication of one's moral obligation to pay debts

Accepted Answer

Character

Question 46

Ownership that gives holders preference over common stockholders when distributing dividends

Accepted Answer

Preferred Stock

Question 47

An investor group that lends large sums of money to new companies

Accepted Answer

Venture Capitalist

Question 48

A loan made to an individual

Accepted Answer

Consumer Loan

Question 49

Provides protection for risks involved in operating a business

Accepted Answer

Liability Insurance

Question 50

A financial statement that lists the assets, liabilities, and capital of a business

Accepted Answer

Balance Sheet

Question 51

An institution that offers on demand deposits or commercial loans, but not both

Accepted Answer

Non-Bank Financial Institution

Question 52

Provides payment to people from loss from the negligence of an employee

Accepted Answer

Bonding

Question 53

Offers payments to employees who are can't work because of accidents or illness

Accepted Answer

Disability Insurance

Question 54

Written promise to pay a sum of money, at a certain time, to a certain person

Accepted Answer

Promissory Note

Question 55

The value at which stock is bought and sold on any given day

Accepted Answer

Market Value

Question 56

Stocks and bonds

Accepted Answer

Securities

Question 57

Money owed for credit purchases

Accepted Answer

Accounts Payable

Question 58

The first time a company sells stock to the public

Accepted Answer

Initial Public Offering

Question 59

Provides protection against the expenses of health care

Accepted Answer

Health Insurance

Business Management Unit 5

Questions 59

Business Management Unit 5

Questions 59