Understanding Key Economic and Business Terms

What does NCAA stand for?

• National Collegiate Athletic Association

• National College Athletic Association

• National Collegiate Association of Athletics

• National College Association of Athletics

Common Stock represents: a) Ownership in a company b) A type of bond c) A loan to a company d) A government security.

• Ownership in a company

• A type of bond

• A loan to a company

• A government security

Limited Liability means: a) Owners are personally responsible for all debts b) Owners are not personally responsible for company debts c) Owners have unlimited responsibility d) Owners have partial responsibility.

• Owners are personally responsible for all debts

• Owners are not personally responsible for company debts

• Owners have unlimited responsibility

• Owners have partial responsibility

AFL-CIO is a:

• Type of stock

• Labor union federation

• Government agency

• Financial institution

A Closed Shop is:

• A type of retail store

• A workplace where only union members can be hired

• A business that is closed to the public

• A shop that operates online only.

Right-To-Work laws allow: a) Employers to hire only union members b) Employees to work without joining a union c) Companies to operate without government oversight d) Workers to demand higher wages.

• Employers to hire only union members

• Employees to work without joining a union

• Companies to operate without government oversight

• Workers to demand higher wages.

Mediation vs Arbitration: Which involves a third party making a binding decision?

• Mediation

• Arbitration

Preferred Stock usually has: a) Voting rights b) Priority over common stock in dividends c) No financial benefits d) Higher risk than common stock.

• Voting rights

• Priority over common stock in dividends

• No financial benefits

• Higher risk than common stock

A Horizontal Merger occurs when:

• Two companies at different stages of production merge

• Two companies in the same industry merge

• A company merges with its supplier

• A company merges with its customer.

Depreciation refers to:

• Increase in asset value

• Decrease in asset value over time

• A type of investment

• A financial gain.