Chapter 6

Question 1

What are cooperate bonds

Answer 1

Fixed debit that must be repaired at a fixed future date

Question 2

What is the buyer/ bond holder?

Answer 2

Regular periodic interest payments at fixed rate

Question 3

What is returned to the bond holder at maturity?

Answer 3

Principal

Question 4

What do you need for financial cooperate expansion? BRSS

Answer 4

1.Borrow,
2.reinvesting profit
3.selling bonds
4.selling shares

Question 5

If interest rests rise- what happens?
If in these rates fall- what happens?

Answer 5

RISE- prices fall & yields raise
FALL- prices rise & yields fall

Question 6

What do ownership shares represent?

Answer 6

Represents ownership of a cooperation

Question 7

Characteristics of mutual funds?

Answer 7

• passive investing
  -portfolio of certain stocks,industries,etc.
• managed by professional
• pay a fee
• easy / comfort

Question 8

Cheractenstics of index funds?

Answer 8

-lower fee
-passive income
Mirrors certain indexes
-no cons

Question 9

How many industries are there? List their names

Answer 9

Primary, Secondary, Service

Question 10

Which industry makes up 70% of Canada’s GDP?

Answer 10

Service

Question 11

What affects cooperate share prices?

Answer 11

DEMAND:

-current profits and dividends
-confidence in management
-trends in the industry
-general economic climate

Question 12

What is a spot market?

Answer 12

Immediate delivery

Question 13

What is a future market?

Answer 13

Prices agreed in advanced for future delivery

Question 14

What is the term that refers to the right to buy a commodity at a fixed price/ before a set date?

Answer 14

Call

Question 15

What is the term when referring to the right to sell a commodity at a pre-arranged price on/before a CERTAIN date

Answer 15

Put

Question 16

STOCK TERM: What is the term for a safe and stable large company

Answer 16

Blue Chip

Question 17

STOCK TERM: What type of market is it when prices are expected to rise for a sustained period of time?

Answer 17

Bull market

Question 18

What is a bear market?

Answer 18

A market where prices of goods are expected to fall for a sustained period of fine.

Question 19

STOCK TERM: what is a dividend yield?

Answer 19

Current annual dividend/ current share prices

Question 20

STOCK TERM: What is EPS?

Answer 20

It is how much a company makes for each share of a stock

Question 21

Small businesses have what ____ growth and ___ employees.

Answer 21

Vertical & less than 50

Question 22

Big businesses have _____ growth and ___ employees

Answer 22

Horizontal & 500+

Question 23

What is a coperate alliance?

Answer 23

A is when compares form a network that operates as a single company.

Question 24

What is a holding company?

Answer 24

It is when company’s tagline large blocks of shares in other compares to influence + control

Question 25

What ia multinational cooperation?

Answer 25

Firms that operate from a global perspective.

Question 26

What are the 5 forms of business organization? SPCCG

Answer 26

1. SOLE PROPRIETORSHIP 2.PARTNERSHIP 3.COPERATION 4.CO-OPERATIVE 5.GOVERNMENT ENTERPRISE

Question 27

What is Sole Proprietorship? PROS & CONS?

Answer 27

Owned + operated by 1 person Responsible for debts I entities to profit PRO Only 1 person makes decisions easy to establish Finances are confidential CONS Unlimited lability High Tex rate Finances limited

Question 28

What is Partnership? PROS + CONS?

Answer 28

Owned by 2 or more people Bonded by legal agreement PROS Easier to obtain credit, lower tax rate Pooling of talent + capital CONS Joint several liability Transfer of ownership/termination of partnership

Question 29

What is a corporation? PROS & CONS?

Answer 29

Can be private & public Formed they articles of incorporation (government authorized) PROS acts as an independent entity lower tax rates able to attract investors more business longevity CONS legal and government fees to establish closely regulated by government

Question 30

What is a Co-Operative? PROS + CONS

Answer 30

owned equally by its members common goal and purpose every member gets a say PROS equal management decisions limited personal liability CONS Management decisions can be complicated

Question 31

What is a Government Enterprise?

Answer 31

Owned by government Creates employment Operates in best interest of the community