Business Basics Quiz
Economists often refer to agricultural or mineral products as:
- Economists call agricultural and mineral products 'commodities.' Collectibles are usually things people want to collect, such as antiques, coins, or artwork, while durable goods are products that are not depleted with use, such as cars or refrigerators.
The federal agency with most oversight of the nation's monetary policy and the stability of the financial system is the:
- The Federal Reserve System was founded in 1913 to safeguard the nation's financial and monetary system. The Securities and Exchange Commission seeks to protect investors by maintaining the integrity of the securities markets (such as stock exchanges), while the Federal Trade Commission enforces anti-trust and consumer protection laws.
The Organization of Petroleum Exporting Countries, OPEC, is a:
- OPEC is a cartel, a group of independent entities (in this case nations) designed to influence the production or sale of a particular product or commodity. OPEC is powerful, but it is not a monopoly, which is a business or group that has exclusive control over the production or distribution of a product. An oligarchy is a government run by a small faction of people.
Many businesses use the abbreviation 'Inc.,' which is short for:
- 'Inc.' is short for incorporated, meaning the business is a legal corporation.
The system of classifying, analyzing, and interpreting financial records is known as:
- To measure their performance, businesses use a standardized system of accounting to record and study financial data. Marketing is a general term referring to the process of getting goods or products from the producer to the consumer, while investing is the commitment of money (or capital) to receive a financial reward.
A shareholder is someone who:
- A shareholder owns stock in a corporation. Someone who buys a particular product is called a consumer, while a person who works for a company is an employee.
When a business wants newspapers or magazines to write something positive about its products, the business might seek help from a:
- Public relations firms usually specialize in the generation of good publicity. A financial adviser would help with the financial side of the business, while a merchandising expert would most likely help with marketing, sales, and advertising.
A company that owns a number of other businesses in various fields is called a:
- A conglomerate is a company that owns a number of businesses in various fields. A bank accepts deposits and makes loans, while a multinational corporation does business in more than two countries. Neither banks nor multinational corporations are necessarily conglomerates.
A business that sells products only to other businesses, not to the general public, is called a:
- Wholesalers sell products to other businesses, usually stores, which then sell directly to the public. A discount store is a retail business typically selling at low prices, while a specialty store usually sells only a certain type of product.
A business that arranges the movement of products or commodities between two countries is an:
- An export-import firm handles the documentation and makes the shipping arrangements necessary to move products from one country to another. Airlines often provide the actual transportation, but they do not usually initiate the process. International travel agents usually handle travel arrangements for people.