Business and Investment Flashcard

Front

What is portfolio diversification?

Back

Spreading money across various investments to reduce risk

Front

What is a key difference between cooperatives and corporations?

Back

Cooperatives are owned by members.

Front

Who makes the decisions in a sole proprietorship?

Back

The owner

Front

What is a cooperative?

Back

An organization owned and operated by its members.

Front

What do service businesses primarily perform?

Back

Provide services

Front

What is the first step in the interdependence of businesses in the steel industry?

Back

Producing the iron ore

Front

What is the difference between a producer and a processor?

Back

A producer gathers or creates raw products; a processor changes raw products into more finished products.

Front

What is a potential conflict mentioned between departments?

Back

Marketing wants more funds, but accounting says it will lower profits

Front

What is the benefit of all functional areas working together?

Back

Companies benefit when all functional areas work together

Front

What is a benefit of forming a corporation?

Back

Limited liability for owners