Business Finance Midterm Review

What is scarcity?

• 
  

  the study of how people decide what they want

• 
  

  the study of the types of products available in an economy

• when people want more of something than is available

Which action is not something that money does in an economy

• Measure the value of commodities

• store the value of commodities

• allow producers and consumers to trade commodities

• keep the rate of inflation low

Selling mittens during the winter is an example of which type of utlity?

• form utility

• time utility

Which step is something a business person might do during the Operate stage of a business?

• Register for business licenses

• sell the business to someone else

• Carry out sales, promotion, marketing, and advertising plans

Which section of a company promotes the business?

• production

• finance

• marketing

Which circumstance is a disadvantage of a sole proprietorship?

• taxes on employee benefits

• difficulty dissolving the business

• personal liability

Thomas has employees who frequently miss work.  Which cause of risk is this an example of?

• Natural

• Human

• Health and Safety

Which characteristic is a feature of capitalism? 

• Which characteristic is a feature of capitalism? 

• Competition between businesses

• Discouraging small business owners

Which factor makes a currency more attractive to investors?

• Low inflation rate

• High Inflation Rate

• Low interest rate

Which career is most likely to involve preparing tax returns for individuals?

• Chief Financial Officer

• Accountant

• Risk Manager

• Comptroller