Test: Business and You
Which answer is NOT TRUE?
At the local level, businesses must meet government-set billing rates.
Which of the following statements are TRUE?
California was the first state to undertake the restructuring of the electric utility industry on a state-wide basis 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®. A lone utility company, Detroit Edison and Consumers Power, faced new competition as deregulation gave people a choice between utility companies. The company tried to battle the act by asking for funds to cover "stranded costs" and lost income once the process was underway, but the deregulation went through. Those that are in support of something are called its proponents.
.In 1914 the _ prevented a merging of corporations to have intertwined boards of directors.
Clayton Antitrust Act
Which of these statements is TRUE?
Deregulated Investor Owned Utilities are known as IOUs.
Check the boxes that are TRUE.
Financial responsibility in the home is found in the Bible passage of 1 Timothy 5:8. A Chapter 13 bankruptcy filing is called a reorganization. .
The histories of _ and _ are filled with terrible stories of debtors' prisons and penal colonies where people were sent for the simple transgression of an inability to pay their debts
Great Britain, France
Select the five dangers of a monopoly.
Higher prices Poor service and attitude No rival competition or alternative markets Lower quality Limitation or elimination of certain goods
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.
Jesus taught financial responsibility to the government: Notwithstanding, lest we should offend them, go thou to the sea, and cast an hook, and take up the fish that first cometh up; and when thou hast opened his mouth, thou shalt find a piece of money: that take, and give unto them for me and thee. The passage is found in _ 17:27.
Matthew
Check the boxes that are TRUE
Monopolies are judged by how strong the competition is between the companies. In 1911 the Standard Oil Company was divided into more than 30 separate companies. The 12 Federal Reserve Banks are nationwide, and each serves a specific region of the country; along with the Board of Governors in Washington, D.C.
Select the five dangers of a monopoly.
No rival competition or alternative markets. Lower quality Poor service and attitude Higher prices Limitation or elimination of certain good
Mark the boxes that are TRUE.
One of the largest divestitures in American history occurred when the U.S. Government ruled that the AT & T® Corporation was a monopoly that must be divided so that the telephone market might be more competitive. Week by week the finances in this country can change, so the selling and buying of securities helps maintain equilibrium.
Mark the boxes that are TRUE.
Some monopolies are good. The Securities and Exchange Commission regulates the stock market. The Interstate Commerce Commission polices monopolistic practices.
Mark the boxes that are TRUE.
The Federal Communications Commission regulates radio and television to the extent of licensing stations and policing programming. The Securities and Exchange Commission regulates the stock market. The Federal Aviation Administration regulates the airlines. The Interstate Commerce Commission polices monopolistic practices. The Food and Drug Administration assesses all foods and drugs consumed.
Check the boxes that are TRUE.
The U.S. Treasury, through its Bureau of the Mint and Bureau of Engraving and Printing, produces the nation's dollar and coin supply. The Fed issues the nation's coin and paper currency.
_ is acting within the good principles of society and within the accepted rules of proper behavior.
acting ethically
Legal proceedings that deal with the concerns of those who declare insolvency are held in a _
bankruptcy court
A _ and the Federal Open Market Committee oversee the operation of the Fed.
board of governors
A bank might be seeing a hard pull on its deposits, so it _ the Reserve Bank.
borrows from
The U.S. Treasury keeps a _ account with the Federal Reserve.
checking
It is the manager's job to _ the wishes of top management in such a way as to motivate employees to carry out these wishes.
communicate
The Federal Reserve System has the authority to expand _ in case of a national emergency, set limits on the _, and manage America's supply of money.
credit, reserve
Inflation hurts creditors, but it helps:
debtors
One of the largest _ in American history occurred when the U.S. Government ruled that the AT & T® Corporation was a monopoly that must be divided so that the telephone market might be more competitive.
divestitures
Some businesses have stricter guidelines, even have their prices regulated. These price-regulated businesses are normally monopolies like _
electric companies
Some monopolies are not functioning to drive prices up and competitors out; they serve the public. An example is the
electric companies
What are the two aspects of management?
entrepreneurial, operational
The chief principle taught in the Biblical passages Leviticus 19:13 and Deuteronomy 24:14-15 on management is _
fairness
"But if any provide not for his own, and specially for those of his own house, he hath denied the _, and is worse than an _."
faith, infidel
Inflation = More money + More goods.
false
Risk-taking management which involves making the basic decisions that affect the future of the business is called operational management.
false
When banks borrow money from a Federal Reserve Bank, they are charged a certain interest rate to pay back the loan. If the Federal Reserve System raises the rate of interest, it will be easier for banks to make loans to their customers.
false
Encouragement to strive for higher goals or profits is called
incentive
The Fed is a(n) _ agency of the United States government.
independent
When the money supply is increasing faster than the supply of goods and services, it is called _
inflation
Paul wrote to the Ephesians (Ephesians 6:9), "And, ye _ , do the same things unto them, forbearing threatening: knowing that your _ also is in heaven; neither is there respect of persons with him." Management by _ has no place in Christian management.
masters, Master, fear
Select the ways that the Fed manages the country's money supply
open-market operations (purchase or sale of government securities) change the discount rate change reserve requirements
The real test of an entrepreneurial decision is if there is a recognizable _
profit or loss
The actual money's worth for buying products is called
purchase power
In addition to checking prices on comparable items, it is also a good idea to check the store's:
return policy, warranty
An important part of a Christian's obligation as management is to be fair to his workers. "Thou shalt not defraud thy neighbor, neither _ him: the wages of him that is hired shall not abide with thee all night until the morning" ( _ 19:13).
rob, Leviticus
Most regulations have to do with the _ of the individual who may be a customer of the business, or a worker within the business. After all, a consumer wants to know that he can _ in the quality of the food or the safety of a toy he purchases. A worker wants the confidence of being in a workplace that does not pose _ to him.
safety, trust, danger
Week by week the finances in this country can change, so the selling and buying of _ helps maintain equilibrium.
securities
The Securities and Exchange Commission regulates the
stock market
The purpose of deregulation is to open up the doors of competition to many businesses in order to offer consumers greater choice in purchasing services or products, to lower rates, and to encourage _ through competition.
technological advances
What is operational management?
the day to day operation of a business
What people would make entrepreneurial decisions in a corporation?
top management, board of directors
A deduction from a full purchase amount that is repaid to the consumer is called a rebate . In getting a rebate, the original receipt may be required.
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
Monopolies are judged by how strong the competition is between the companies.
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
Walt's fellow workers are going on strike since the price of food has increased dramatically within the last 14 months. They are looking to get a higher salary. This continual rise in salary and consumer goods prices is known as a _
wage-price spiral.
