| A | B |
|---|
| What is the Central Bank of the United States called? | Federal Reserve System |
| What year was the Federal Reserve System created? | 1913 |
| What Act created the Federal Reserve System? | Federal Reserve Act |
| What's the 3 letter name for the Federal Reserve System? | Fed |
| How many National Banks were in place before the Federal Reserve System? | 2 |
| How many members make up the board of the Federal Reserve System? | 7 |
| How are the board members added to the Federal Reserve System? | Appointed by the President and approved by the Senate |
| How long do the board members serve on the Federal Reserve System? | 14 years |
| To whom does the Federal Reserve System report their activities? | Congress |
| Who is able to set the interest rates for the country? | Federal Reserve System |
| What year was the Interstate Commerce Commission created? | 1887 |
| What does the Interstate Commerce Commission regulate? | Railroad, Trucks, Water Carriers, Buses and Pipelines |
| What was the Interstate Commerce Commission originally allowed to regulate? | Railway and Water Carriers |
| What is deficit spending? | When the government spends more than it takes in |
| What can the government do if it spends more than it brings in? | Borrow the money |
| What country do we currently owe money to? | China |
| Explain how a surplus can be created in our country? | Government takes in more money than it spends |
| Name three ways the government tries to take in money (other than taxes)? | Treasury Notes, Bills and Bonds |
| What does GDP stand for? | Gross Domestic Product |
| What does GDP mean? | Total value of goods and services produced by a country in period |
| What assess the growth of a nation’s economy? | GDP |
| What four (4) items create our country's GDP? | Net Exports, Consumption, Investment, Federal and Local Government Purchases |
| What are the two main types of taxes? | Federal and State |
| What form of economic model has an emphasis on private property and competitive open markets? | Capitalism or Free Enterprise |
| What is a new business venture that is a diverse product? They are usually risk takers. | Entrepreneur |
| Typically how many levels does a vertical division of labor have? | Three |
| How is the horizontal division of labor divided? | Specific groups for a unique purpose |
| Name one of the ways a company may have management problems? | Too many subordinates or Too few subordinates |
| Name the four business structures? | 1. Functional 2. Territorial 3. Product 4. Matrix |
| What is the structure of the business called when they divide teh parts of the business by what they do? | Functional Structure |
| What is a territorial structure of business? | Operations spread among locations |
| How is a company set-up when they use a product structure? | Divisions sell different products |
| If a union and a company has a disagreement about a company policy who decides what should be done? | Arbitrator |
| What does it mean when a union labor force strikes? | They don't work until a contract has been agreed on by both parties |
| When a contract is negotiated and signed, who is bound by the contract? | All employees of the company including the Union and Company Management |
| Tell me why a union could be bad for a union employee? | If there is a strike you will be called to strike with no pay |
| How can a union be beneficial for an individual employee? | 1. Higher Wages 2. Better Benefits 3. Better Working Conditions |
| What is a budget? | It is a document that describes the financial history of a business |
| What is the typical length of a budget? | 1 year |
| If a company puts together a 5 year projection for a budget, what is this called? | Strat or Strategic Plan |
| What is the style of management where the managerial decisions are imposed on subordinates? | Exploitative-Authoritative |
| What is the style of management where there is a clear distinction between management and labor? | Benevolent-Authoritative |
| What is the style of management where leaders place a small degree of trust in their employees but they still do not have an equal voice? | Consultative Style of Management |
| What is the style of management that feels like they can trust their employees to get the work done? | Participative-Group Style |
| What is delegation of authority? | When someone in authority gives an employee the authority to do a job or task. The employee is acting on behalf of theone that gave them the authority |
| How many people are involved in a sole proprietorship? | One person |
| How many people are involved in a partnership? | Two or more |
| Between the sole proprietorship and the Corporation, who has the easiest time getting money to start the business? | Corporation |
| Of the sole proprietorship and the corporation, who has the easiest time starting the business? | Sole Proprietor |
| Between the sole proprietorship and the Corporation, who has the most personal risk? | Sole Proprietor |
| Which of the business types is double taxed? | Corporation |
| Which busines type must have approval by the government to open their business? | Corporation |
| A group of individual businesses that join together to get a better price for their goods is called what? | Cooperative |
| If you have a partnership who pays the tax, the business or the individual partners? | Individual partners |
| What is the type of programs can business include in their business? | 1. Goals 2. Policies 3. Procedures 4. Rules 5. Assignments 6. Resources |
| Name 3 Business Procedures | 1. Must be clear 2. explains actions 3. published list of procedures |
| Name 3 Business Rules | 1. What employees are forbidden from doing 2. Discourage innovation 3. Perhaps should be a guideline |
| Examples of Fiscal Policy: | 1. Gross National Product 2. Raising Employment 3. Stabilizing Price 4. Stabilizing Money |
| Does expansionary policy combat recession? | Yes |
| Does Contractionary policy fight inflation by raising taxes? | Yes |
| Does Contractionary policy increase spending? | Yes |
| What should business objective be? | Clear and Verifiable |
