Supply vs Demand, and relationship with price
Demand: the quantity of products that consumers are willing to buy at different market
prices. Generally, higher prices lead to less demand.
S: the quantity of products that producers are willing to sell at
Taxation of a stock depends on stock period
Short term holding period of 1 year or less is taxed at marginal rate.
Long term holdings are taxed at 15%
The ease with which something can be converted to cash
Cash is the most liquid item there
What is a bond?
A long term promise of repayment in the future. 5+ years.
Issuer-person who owes the money
Buyer-person who is owed money
Mortgage is an example of a bond
What is a bill?
A short term promise of repayment. Typically less than 1 year.
What are the three main forms of communication in business?
What are the different forms of business ownership?
A business owned and managed by one person
Easiest to get into, but
What is a Business?
any organization that is centered on providing goods and services in pursuit of a profit.
How do you calculate business profit ?
Revenue (which is defined as the money that a business earns) - Expenses(cost of goods
What is Ethics?
A set of beliefs (right vs. wrong). Depends on the person/business
What is Social Responsibility?
The obligation of a business to contribute to society.
What are Business Ethics?
An agreement of what constitutes right or wrong behavior
Gross Domestic Product: Market value of all final goods/services produced
within a country in a set period of time
Standard of Living
An indicator of the quality and quantity of goods/services consumed in a
Subprime Financial Crisis of 2008
Chapter 13 Quiz.
1. The second option is superior as it results in a $2100 profit as opposed to a $1000 loss if
calculated using the first method.
2. Retailers typically sell to the people using the product while wholesalers buy
from producers typically s
1. What types of barriers are there, and which is the easiest to overcome? Physical Barriers,
Language Barriers, Body Language Barriers, Perceptual Barriers, Organizational Barriers, and
Cultural Barriers. We firmly believe that Physical Barrier
Common Stock-basic form of ownership in a corporation
Rights to dividends
Right to residual claim on assets
Preferred Stock- Stock that gives its holder preference over common stockholders
No voting rights