Fin Alg Stock Market Flashcard 1.1-1.6

Front

What is an advantage of a sole proprietorship?

Back

You get all the profits.

Front

How is percent change calculated?

Back

Percent change as a percent is equal to (new-original)/original x 100.

Front

If Tori bought $5000 worth of Mattel stock and sold it for $8050, what was the capital gain?

Back

$3050.

Front

What is the formula for Total Value of a trade?

Back

Total Value of a trade equals number of shares x price per share.

Front

What does 'capital' refer to in a business context?

Back

Money invested in a business.

Front

What is the definition of 'capital gain'?

Back

The increase in the value of an asset or investment over time.

Front

What is the difference between 'capital' and 'revenue'?

Back

Capital refers to the money invested in a business, while revenue is the income generated from business operations.

Front

What does 'limited liability' mean in business?

Back

Limited liability means that the owners are not personally responsible for the debts of the business.

Front

What is the formula for calculating profit?

Back

Profit = Revenue - Expenses.

Front

What is the significance of 'market capitalization'?

Back

Market capitalization is the total market value of a company's outstanding shares, indicating its size.