Q/Government and Economics - Unit 7: Business and You

The exhortation by Paul in Romans _ :8 is: Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law. This simply means that continual debt is not pleasing to the Lord.

13

Clayton Antitrust Act

1914 legislation that dealt against monopolies, particularly in the area of price-fixing

Entrepreneurial management or Operational management? Involves the risk factor of a business.

Entrepreneurial management

Paul wrote, "And, ye masters, do the same things unto them, forbearing threatening: knowing that your Master also is in heaven; neither is there respect of persons with him" ( ________ 6:9). Management by fear has no place in Christian management.

Ephesians

What is the chief principle in the 4 Biblical passages (Leviticus 19:13 and Deuteronomy 24:14-15) on management?

Fairness

Most regulations aid which group(s)?

Federal Communications Commission- regulates the radio and television. Food and Drug Administration- evaluates the quality of food and drugs.

The Federal government also has a hand in regulation. Name two of the previously mentioned government agencies and their duties.

Federal Communications Commission- regulates the radio and television. Food and Drug Administration- evaluates the quality of food and drugs.

discount rate

Federal reserve-set interest rate to determine the amount needed to pay back the loan

Deregulated Investor Owned Utilities are known as - .

IOU's

Check the boxes that are TRUE.

If the car dealer will not or cannot show you the repair orders or identity of former owner, you should not buy the car. Have a mechanic friend look for hidden damage repairs on "new" (and used) cars.

What is entrepreneurship?

It is making decisions that affect the future of a business.

An important part of a Christian's obligation as manager is to be fair to his workers. "Thou shalt not defraud thy neighbor, neither rob him: the wages of him that is hired shall not abide with thee all night until the morning" ( ________ 19:13).

Leviticus

Jesus taught financial responsibility to the government. The passage is found in ________ 17:27.

Matthew

Entrepreneurial management or Operational management? Is concerned with the day-to-day activities and decisions of a company.

Operational management

"But if any provide not for his own, and specially for those of his own house, he hath denied the faith, and is worse than an infidel." (1 ________ 5:8)

Timothy

How many federal reserve banks exist nationwide?

Twelve

rebates

a deduction from a full purchase amount that is repaid to the consumer

inventory

a detailed accounting of all the goods in stock

government securities

a government investment in businesses, guaranteeing repayment

consumer protection law

a governmental regulation; a mandate which is instituted to safeguard the purchaser

warranty

a guarantee that is legally binding to the company who issues it

mega-merger

a huge union of large corporations or utilities

ethic

a principle or value

unsecured debt

a promise or obligation to pay to another a certain amount of money which has no collateral.

trust

agreed-upon unofficial mergers formed to control prices and production in the marketplace

reserve requirements

amount of money the Fed needs to have as a balance in possession

Sherman Antitrust Act of 1890

an anti-monopoly act awarded victim of a monopoly three times the amount his business lost

Caveat Emptor means "Let the buyer _ ."

beware

A _and the Federal Open Market Committee oversee the operation of the Fed.

board of governers

In 1914, the Clayton Antitrust Act prevented a merging of corporations to have intertwined _ .

boards of directors

impulse buying

buying without planning or forethought; "on the spot" purchase

hubs

central points of business

A _bankruptcy is known as a "straight liquidation."

charter 7

How does inflation affect businesses? In the first place, it hurts all creditors, but it helps:

debtors

Deregulation is about _ rates and _ supplies.

decreasing, increasing

Some businesses have stricter guidelines, and even have their prices regulated. These price-regulated businesses are normally monopolies like _ .

electric companies

All monopolies are bad.

false

In a Chapter 13 proceeding, the debtor surrenders his nonexempt property for division among his creditors.

false

Inflation = Less money + More goods.

false

Pennsylvania was the first state to undertake the restructuring of the electric utility industry on a state-wide basis.

false

The Marshall Plan was an anti-monopoly act which awarded the victim of a monopoly three times the amount that his business lost.

false

price-setting standard

guidelines for controlling costs and expenditures by the consumer

When banks borrow money from a Federal Reserve Bank, they are given a certain interest rate to pay back the loan. If the Federal Reserve System raises the rate of interest, the banks will find it:

harder to make loans.

contract

legally binding written agreement between purchaser and seller

In a corporation, who acts as a go-between between the employee and the employer?

manager

Inflation is an economic condition in which the:

money supply is increasing faster than the supply of goods and services.

purchasing power

money's actual worth for buying products

secured debt

obligation to pay to another a certain amount of money which has collateral that the creditor may seize.

In which three ways does the Fed manage the country's money supply?

open-market operations (purchase or sale of government securities) change the discount rate change reserve requirements

What are the five dangers of a monopoly?

poor quality, bad customer service, limited or elimination of products, no rivalry or competition, and raise in price.

What do we call those that are in support of something?

proponents

open-market operations

purchase or sale of government securities, increasing or decreasing amount of money banks lend

The Federal Communications Commission regulates:

radio and television to the extent of licensing stations and policing programming.

After the trusts had eliminated the competition, they would cut back on production and _.

raise prices

restructuring

realigning or adjusting to meet new qualifications or needs

A deduction from a full purchase amount that is repaid to the consumer is called a _ .

rebate

A Chapter 13 bankruptcy filing is called what?

reorganization

Week by week the finances in this country can change, so the selling and buying of _ helps to maintain equilibrium.

securities

The end-of-year White Sale is a big chance for savings. What is usually on sale?

sheets and bedding

fire codes

specifications and safety measures required for buildings

bankruptcy

the act of being declared legally insolvent.

merger

the combining of two or more corporations or businesses

liquidation

the debtor surrenders his nonexempt property for division among his creditors.

divestiture

the dividing, sale, or liquidation of a corporation

lien

the right to take, sell, or hold property as security or payment of a debt.

Title 11

the section of the U.S.Code which deals with the rules and procedures of Bankruptcy.

compensate

to make payment to; to financially award a person

What people would make entrepreneurial decisions in a corporation?

top management board of directors

"Acting ethically" is acting within the good principles of society and within the accepted rules of proper behavior.

true

After passage of the 1996 deregulation law, the Baby Bells started merging with each other, and two of them attempted to re-merge into AT&T ® .

true

In a bankruptcy, the priority debts -- the debts that the court feels should be paid first -- are paid, then the unsecured debts are added up.

true

In deregulation, government loosens controls and allows other companies to enter the market.

true

In getting a rebate, the original receipt may be required.

true

Monopolies are judged by how strong the competition is.

true

The Fed works to keep the balance of financial strength at a good level by keeping interest rates low in recessions and letting them rise in economic "boom" times.

true

The U.S. Treasury keeps a checking account with the Federal Reserve.

true

The responsibility to pay debts and due notes is called financial obligation.

true

Jill's business co-workers are joining her in negotiating for higher wages since the prices at the supermarket have risen in the last 6 months. This increase in salary is known as a:

wage-price spiral