Chapter 17 Flashcards Preview

Personal Finance > Chapter 17 > Flashcards

Flashcards in Chapter 17 Deck (14)
Loading flashcards...
0
Q

The amount of money earned over and above the amount spent to keep the business operating

A

Profit

1
Q

An economic system in which people can choose what they buy, what they produce and sell, and where they work

A

Free enterprise system

2
Q

A written proposal that describes a new business and strategies to launch that business

A

Business plan

3
Q

A written outline of the business goal and the steps to take to achieve them

A

Strategic plan

4
Q

A written outline of how the business will be promoted to increase customers and sales

A

Marketing plan

5
Q

A written outline of how the business will get money to start up and operate, and how the business will maintain financial operations and business records

A

Financial plan

6
Q

The systematic process of recording and reporting the financial position of a business

A

Accounting

7
Q

Any activity that has an effect on the financial situation of a business

A

Transaction

8
Q

A standard set of guidelines for reporting and recording financial changes in a business

A

Generally accepted accounting principles (GAAP)

9
Q

A formal, written statement of expected income and expenses for a future period of time

A

Budget

10
Q

The goods retailers buy with the intent to resell to customers

A

Merchandise

11
Q

The merchandise retailers have for sale

A

Inventory

12
Q

The amount of cash that is available at any given time

A

Cash flow

13
Q

When a business spends more than it receives

A

Negative cash flow