ABIT Economic Terms

What is an economic slump?

• A sudden increase in economic growth.

• A temporary rise in unemployment rates.

• A period of significant decline in economic activity.

• A stable period of economic activity.

Define shareholder in a business context.

• A shareholder is a company employee.

• A shareholder is a government representative.

• A shareholder is a type of customer.

• A shareholder is an owner of shares in a company.

What does production refer to in economics?

• The process of creating goods and services.

• The study of market trends and consumer behavior.

• The process of distributing wealth among individuals.

• The act of selling goods to consumers.

What is the difference between a company and an enterprise?

• A company is a specific type of enterprise focused on profit, while an enterprise can refer to any venture or project.

• An enterprise is always a non-profit organization.

• A company is larger than an enterprise.

• A company can only operate in one country while an enterprise can operate globally.

Who is a sole proprietor?

• A sole proprietor is a corporation with shareholders.

• A sole proprietor is a government official managing public funds.

• A sole proprietor is an individual who owns and runs a business alone.

• A sole proprietor is a business entity owned by multiple partners.

What does it mean to withdraw money from an account?

• To take out money from a bank account.

• To check the balance of an account.

• To transfer money to another account.

• To deposit money into a bank account.

What is an instant loan?

• A quick, short-term loan that offers fast access to funds with minimal documentation.

• A long-term loan with low interest rates and flexible repayment terms.

• A loan that requires extensive documentation and approval process.

• A type of loan that takes weeks to process and disburse funds.

How would you describe a frugal person?

• A frugal person is careful with money and avoids unnecessary spending.

• A frugal person frequently borrows money from others.

• A frugal person spends lavishly on luxury items.

• A frugal person is indifferent to financial matters.

What does stingy mean?

• Unwilling to spend or share; miserly.

• Generous and giving

• Eager to help others

• Willing to share resources

What is considered an expense in a business?

• Profits retained from previous years

• Revenue generated from sales

• Costs incurred to generate revenue.

• Assets owned by the business