FINLIT-1st 9-Weeks Exam Review

Ethical behavior calls for honesty. Which of the following actions could be considered ethical?

• Studying for a test with a friend.

• Borrowing a classmate’s homework to copy the answers.

• Checking personal e-mail at work during your shift.

• Returning a homecoming dress to the store after wearing it to the dance.

When one goal must be achieved in order to achieve another goal, the two goals are _____.

• Important

• Conflicting

• Unattainable

• Interdependent

What decision-making strategy weighs the costs against the benefits of an action, purchase, or financial decision?

• Marginal analysis

• Opportunity costs

• Cost-benefit analysis

• Common sense

Social Security, Medicare, and Medicaid are examples of what?

• Entitlements

• Outsourcing

• Globalization

• Technological advances

____ gives you access to a vast diversity of goods and services through worldwide markets.

• Social media

• Globalization

• Technology

• Offshore outsourcing

Cash and savings that can be converted to cash quickly and easily are _____.

• Current assets

• Current liabilities

• Fixed assets

• Long-term liabilities

Obligations to be paid over a long period of time are _____.

• Current assets

• Current liabilities

• Fixed assets

• Long-term liabilities

Which of the following is not a form of earned income?

• Wages

• Commissions

• Rental income

• Salaries

Income paid as a percentage of sales made by salesperson is a _____.

• Tip

• Wage

• Bonus

• Commission

Income earned by workers who are self-employed is called _____.

• Profit

• Capital gains

• Entrepreneurial income

• Gratuity