Principles of Business, Marketing, and Finance (BMF) Unit 7 Answers PHS

(Q3) The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was in response to the financial crisis of 2008 and required _____.

a closer look at the financial activities of large companies

(Q3) What is fixed interest?

a credit card interest rate that does not change throughout the year

(L2) Which is NOT a good example of specialization of labor?

a doctor performs no more than eight patient checkups per day

(Q2) What is a security?

a monetary investment that has value and can be traded

(Q3) What is an infraction?

a violation of rules or laws

(L2) What is the term for costs of production that increase or decrease depending on the quantity of goods produced?

variable costs

(PT) Obtaining the necessary components or raw materials to produce a good is known as _____.

procurement

(Q1) What is the term for the process of obtaining the necessary components or raw materials to produce a good?

procurement

(Q2) What are treasury notes?

securities with a fixed interest rate that typically mature between one and ten years

(L4) What is the term for a monetary investment that has value and can be traded?

security

(PT) A monetary investment that has value and can be traded is a(n) _____.

security

(L2) What is the term for the idea that workers produce more when they occupy specialized roles?

specialization of labor

(PT) A law firm assigning different legal tasks to different lawyers based on varying skillsets is an example of _____.

specialization of labor

(L1) What is the term for the combination of two or more agents to produce a finished product with a greater value than the sum of its parts?

synergy

(Q3) What is bookkeeping?

the activity of keeping financial records in a business

(PT) Division of labor is _____.

the assignment of different parts of the manufacturing process to different people to improve efficiency

(Q1) What is synergy?

the combination of two or more agents to produce a finished product with a greater value than the sum of its parts

(L4) What is liquidity?

the ease of a resource to be converted into cash, paper money being the most liquid of all forms of money

(PT) The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was a response to _____.

the financial crisis of 2008

(Q1) What is specialization of labor?

the idea that workers produce more when they occupy specialized roles

(Q2) What is a credit score?

the number assigned to an individual indicating his or her ability to repay a loan

(L1) What is procurement?

the process of obtaining the necessary components or raw materials to produce a good

(Q1) What is division of labor?

the term for the assignment of different parts of a manufacturing process to different people to improve efficiency

(L4) What is the purpose of the government issuing government bonds?

to raise money for more spending

(Q2) What is the purpose of the government issuing government bonds?

to raise money for more spending

(L4) What is the term for securities with a fixed interest rate that typically mature between one and ten years?

treasury notes

(PT) Match the words with the letters from the equation for calculating profit. A=B-(parts+C)

C=labor B=sales price A=profit

(Q2) Choose C for Coins, CR for Cryptocurrency, G for Government bonds, and P for Paper money. G P P C G C CR CR

Choose C for Coins, CR for Cryptocurrency, G for Government bonds, and P for Paper money. used to raise money for government spending includes legal documents like banknotes (cash), checks, money orders, or other bills of exchange the most liquid type of money metal stamped pieces used as currency investments that mature and increase in value over time for the buyer the quarter non-physical, digital currency requires digital encryption

(Q2) Choose Cash, Credit, Debit exchange, or Electronic funds transfer. Debit Cash Debit Cash Electronic Debit Credit Cash

Choose Cash, Credit, Debit exchange, or Electronic funds transfer. transfers that typically utilize a PIN, or personal identification number bills and coins an electronic exchange of funds from one account to another a 100 dollar bill involves moving funds from one bank account to another electronically an electronic exchange of cash from a bank account to another entity through the use of a card interest typically charged on this form of transfer money in hand that can easily be transferred

(Q1) Choose Fixed costs or Variable costs. Fixed costs Variable costs Fixed costs Variable costs Fixed costs Variable costs

Choose Fixed costs or Variable costs. rubber used to manufacture shoes boxes for shipping products employee salaries machinery operation costs a lease a water bill

(L2) What is the term for the assignment of different parts of a manufacturing process to different people to improve efficiency?

division of labor

(L3) Tap & Go and Apple Pay are examples of what kind of currency exchange?

electronic funds transfer

(L2) What is the term for costs of production that do not change regardless of the quantity of goods purchased?

fixed costs

(L6) What is the term for a violation of rules or laws?

infraction

(Q2) What is the term for the ease of a resource to be converted into cash, paper money being the most liquid of all forms of money?

liquidity

(Q1) Which is a good example of specialization of labor?

A law firm assigns specific attorneys to specific cases based on their skill-sets.

(Q1) Which is a good example of economies of scale?

An automotive manufacturing plant decides to double car output in order to keep overall production costs down per car.

(PT) _____ is the ability of an organization to utilize available resources and produce goods or services that are desirable to a group of customers.

Business productivity

(Q1) Choose Labor productivity or Multifactor productivity. Labor Productivity Multifactor Productivity Labor Productivity Multifactor Productivity

Choose Labor productivity or Multifactor productivity. This calculation determines how much is produced per worker. With this calculation, productivity is based more on output after costs are considered. If twenty new production line workers are added to a manufacturing plant, this calculation helps calculate added output. This measures the growth in output minus input of labor and cost of goods sold.

(Q3) Choose True or False. True False False

Choose True or False. APR stands for annual percentage rate. Buying on credit helps consumers make big purchases and usually does not include interest. APR is typically expressed at a monthly rate.

(L5) Choose True or False. False True False

Choose True or False. APR stands for annual percentage repaid If credit did not exist, buyers would be forced to save every penny of the purchase price before they could buy, own, and move into their house. Reward points are gained as you pay off credit card debt.

(Q2) Choose True or False. True False False

Choose True or False. Banknote is a term for cash. Paper money typically only includes bills and coins. Excessive credit card use is typically a safe and effective way of spending money.

(L4) Choose True or False. True True True

Choose True or False. Encryption is necessary for facilitating cryptocurrency exchange. Another term for cash is banknote. Paper money includes not only bills and coins, but also checks and money orders.

(L3) Choose True or False. True True

Choose True or False. Excessive credit card use is generally not recommended because of the high interest rates. Interest rates for some forms of credit can be as high as 30%.

(L2) Choose True or False. True True

Choose True or False. Typically, company management tries to eliminate the problem of diminishing marginal returns through employee performance reviews and monitoring group workloads. Economies of scale can be likened to a sports team, where each player has a specialized skill and role in the team.

(Q1) Choose True or False. False True True

Choose True or False. Typically, company management tries to eliminate the problem of economies of scale through employee performance reviews and monitoring group workloads. Diminishing marginal returns can be likened to a sports team, as each player has a specialized skill and role within a larger team. If Jose, Brian, and Janice all produce 100% work output, then working together to produce more than 300% would be an example of synergy.

(PT) _____ is a form of currency that typically charges an interest rate for its usage.

Credit

(L6) Which federal act of the U.S. government was in response to the financial crisis of 2008 and required a closer look at the financial activities of large companies?

Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

(L2) Define and describe economies of scale.

Economies of Scale - An economic principle suggesting that the costs of production decrease as the quantity produced increases The more of a good a company produces, the less it costs to produce each individual item. This is because overall costs of production are spread among more goods.

(PT) _____ interest rate is the term for an interest rate that does not change throughout the year.

Fixed

(L5) What is the difference between fixed interest rate and variable interest rate?

Fixed rate is a credit card interest rate that does not change through the year; variable rate is one that has the ability to change throughout the year.

(L5) Briefly describe the decision below. Fully understand the terms of service.

It is highly important that factors of the terms of service such as minimum payment, grace period, due dates, and especially interest rates are fully understood before signing any contract ("Sign on the dotted line."). By completely understanding what you are agreeing to, you safeguard yourself from bad debt or money loss over time.

(L2) Define and describe the law of diminishing marginal returns.

Law of Diminishing Marginal Returns - A law of economics suggesting that an increase in the number of employees causes the production of each individual employee to decline Total output per person is higher if there are two workers compared to that of four trying to accomplish the same goal. The more people put on the same task, the less work each worker performs.

(PT) _____ is the term for the ease of a resource to be converted into cash, paper money being the most liquid of all forms of money.

Liquidity

(L5) Match the definitions with the terms. mortgage FICO grace period due date annual percentage rate

Match the definitions with the terms. a legal agreement between a creditor or bank lending money at an interest rate to the purchaser of property a data analytics company in San Jose, California, specializing in maintaining credit payment history of individuals the time allowed to pay off a credit card balance without interest being incurred the day credit payments are due, typically occurring monthly the cost of credit expressed as an annual, or yearly, rate

(L3) Match the definitions with the terms. direct deposit credit limit PIN financial exchange credit card debit card instant mobile transfers

Match the definitions with the terms. an electronic transfer of funds directly from the account of the payer to the recipient's account, often from employers to employees a maximum amount of money a borrower is allowed to charge on an account a number allocated to an individual and used to validate electronic transactions the act of transferring currency from one entity to another plastic tokens used to facilitate a credit exchange a bank card used to facilitate and execute debit transactions a form of currency exchange utilizing a microchip technology allowing smartphone owners to place their devices on chip readers that wirelessly receive debit or credit card information

(L5) Match the definitions with the terms. minimum payment appreciate personal credit card member agreement consumer credit

Match the definitions with the terms. the lowest amount of money to be paid back on a credit card balance per month a growth in value over time confidence in a purchaser's ability to repay the debt of a purchase the legal document credit card companies provide outlining the terms, conditions, and policies of credit card usage debt an individual incurs when purchasing a good or service

(L4) Match the examples with the appropriate types of money. Answers may be used more than once. government bonds coins government bonds cryptocurrency paper money coins paper money cryptocurrency

Match the examples with the appropriate types of money. Answers may be used more than once. a security investment offered by a government to raise money for government spending metal pieces stamped and designated for use as money by a governing authority investments that mature and increase in value over time for the buyer a form of money known as bitcoins currency including legal documents like banknotes (cash), checks, money orders, or other bills of exchange once contained more precious metals until its actual value exceeded its designated value the most liquid type of money a digital form of currency in which encryption techniques are used to regulate the number of units in circulation

(PT) Match the examples with the appropriate types of money. Answers may be used more than once. cryptocurrency paper money cryptocurrency coins coins paper money government bonds government bonds cryptocurrency

Match the examples with the appropriate types of money. Answers may be used more than once. non-physical, digital currency includes legal documents like banknotes (cash), checks, money orders, or other bills of exchange requires digital encryption the quarter metal stamped pieces used as currency the most liquid type of money used to raise money for government spending investments that mature and increase in value over time for the buyer form of money known as bitcoins

(L1) Match the examples with the calculations of productivity. Labor Productivity Multifactor Productivity Labor Productivity Multifactor Productivity

Match the examples with the calculations of productivity. measures the growth in output based on adding worker input healthy companies desiring growth in productivity greater than the increase of costs of adding workers or raw materials answers the question of how much more could be produced if new staff were hired measures the growth in output minus input of labor and cost of goods sold

(L2) Match the examples with the cost types. Answers may be used more than once. variable costs variable costs fixed costs variable costs fixed costs fixed costs

Match the examples with the cost types. Answers may be used more than once. raw materials machinery operation costs rent packaging salaries utilities

(PT) Match the examples with the cost types. Answers may be used more than once. fixed costs fixed costs variable costs fixed costs variable costs variable costs

Match the examples with the cost types. Answers may be used more than once. utilities a rent agreement boxes for shipping products paying employees running a machine designed to cut metal the cotton used to manufacture shirts

(L3) Match the examples with the currencies. Answers may be used more than once. cash debit exchange electronic funds transfer credit cash electronic funds transfer debit exchange credit

Match the examples with the currencies. Answers may be used more than once. also includes a balance in a bank account typically utilize a PIN, or personal identification number electronic exchange of funds from one account to another usually include interest rate charges money on hand that can easily be transferred PayPal an electronic exchange of cash from a bank account to another entity through the use of a card an electronic exchange of currency provided by a bank, store, or service provider that is borrowed

(PT) Match the examples with the currencies. Answers may be used more than once. cash credit debit exchange debit exchange credit electronic funds transfer debit exchange cash

Match the examples with the currencies. Answers may be used more than once. liquid money in hand interest typically incurred through use the electronic exchange of funds from one account to another uses a credit card transfers that typically utilize a PIN, or personal identification number an example like PayPal uses a debit card a $10 bill

(L6) Match the examples with the questions for ethical decision-making. Answers may be used more than once. Is the decision right? Is the decision legal? Have you recognized the pot. ethical issues? Is the decision right? Have you recognized the pot. ethical issues? Is the decision legal?

Match the examples with the questions for ethical decision-making. Answers may be used more than once. The Golden Rule is a good framework for answering this ethical question. This is the first question to ask to determine the ethics of a decision. This question is to be asked to determine whether a decision has potential moral and legal issues. Sometimes there is a difference between what is right and what is legal. The more people a decision has the capacity to affect, the more important the morality and legality of the issue becomes. Negligence and recklessness are examples of a violation of this question.

(Q3) Match the examples with the questions for ethical decision-making. Answers may be used more than once. Have you recognized the pot. ethical issues? Is the decision right? Is the decision legal? Is the decision legal? Is the decision right? Have you recognized the pot. ethical issues?

Match the examples with the questions for ethical decision-making. Answers may be used more than once. The more people a decision has the capacity to affect, the more important the morality and legality of the issue becomes. The Golden Rule is a good framework for answering this ethical question. Negligence and recklessness are examples of a violation of this question. The first question to ask to determine the ethics of a decision. Sometimes there is a difference between what is right and what is legal. This question is to be asked to determine whether a decision has potential moral and legal issues.

(Q3) Match the terms with the definitions. appreciate card member agreement reward points consumer credit FICO grace period

Match the terms with the definitions. a growth in value over time a legal document specifying the terms, conditions, and policies of credit card usage credits toward purchases that are offered by a credit card company in exchange for using their card debt an individual incurs when purchasing a good or service a major organization that specializes in maintaining credit payment history of individuals the time allowed to payoff a credit card balance without interest being incurred

(Q3) Match the terms with the definitions. due date mortgage annual percentage rate personal credit minimum payment

Match the terms with the definitions. the day credit payments are due, typically occurring monthly a legal agreement between a creditor or bank lending money at an interest rate to the purchaser of property cost of credit expressed as an annual, or yearly, rate confidence in a purchaser's ability to repay the debt of a purchase the lowest amount of money to be paid back on a credit card balance per month

(L1) Match the terms with the letters from the equation for calculating profit. Profit=A-(B+C) A B/C (interchangeable) B/C (interchangeable)

Match the terms with the letters from the equation for calculating profit. Profit=A-(B+C) sale price labor parts

(Q1) Match the terms with the letters from the equation for calculating profit. Profit=A-(B+C) A B/C (interchangeable) B/C (interchangeable)

Match the terms with the letters from the equation for calculating profit. Profit=A-(B+C) sale price labor parts

(L6) What is the difference between negligence and recklessness?

Negligence is committing a crime while being unaware of the unlawfulness of the act; recklessness is committing a crime while being aware of the risks and unlawfulness of the act.

(PT) What is the difference between negligence and recklessness?

Negligence is committing a crime while being unaware of the unlawfulness of the act; recklessness is committing a crime while being aware of the risks and unlawfulness of the act.

(Q3) _____ is committing a crime while being unaware of the unlawfulness of the act, and _____ is committing a crime while being aware of the risk and unlawfulness of the act.

Negligence; recklessness

(L5) Describe the importance of having good personal credit.

Personal credit is usually expressed through a credit score, which is a very important number to lenders. Consumers attain credit scores that are excellent by showing, through a history of payments, that they are responsible enough to pay bills well and on time. Mortgages, credit cards, utilities, taxes, and loan bills are all types of debt that typically impact a credit score.

(L5) Briefly describe the decision below. Only take low interest debt tied to assets.

Some debt is better than others, and it depends largely on the interest rate and other factors within the card member agreement. Buying long-term assets like property, homes, or vehicles tend to have lower interest rates and are safer purchases overall because some of these assets grow in value over time. Purchases on a credit card, however, tend to have much higher interest rates and are not tied to any particular asset.

(PT) _____ is the term for the combination of two or more agents to produce a finished product with a greater value than the sum of its parts.

Synergy

(L5) Briefly describe the decision below. Use a credit card like a debit card.

Taking advantage of a credit card's grace period means no interest will accrue on your balance, allowing you to take full advantage of credit card rewards without any cost to you. Furthermore, you avoid bad debt while building your credit score. In the next Section, we will explore what a credit score is and how it is important for your life.

(L1) What is business productivity?

an organization's ability to utilize available resources and produce goods or services that are desirable to a group of customers

(L6) What is the term for the activity of keeping financial records in a business?

bookkeeping

(Q1) What is the term for the ability of an organization to utilize available resources and produce goods or services that are desirable to a group of customers?

business productivity

(PT) Fixed costs are _____.

costs of production that do not change regardless of quantity of goods purchased

(Q1) What are fixed costs?

costs of production that do not change regardless of quantity of goods purchased

(PT) Variable costs are _____.

costs of production that increase or decrease depending on the quantity of goods produced

(Q1) What are variable costs?

costs of production that increase or decrease depending on the quantity of goods produced

(L3) Which form of currency typically charges an interest rate?

credit

(Q2) The form of currency that typically charges an interest rate is known as _____.

credit

(L3) What is the term for the number assigned to an individual indicating his or her ability to repay a loan?

credit score

(PT) This is the number assigned to an individual indicating his or her ability to repay a loan.

credit score