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Economics GRADE 12 > Chapter 6 > Flashcards

Chapter 6 Flashcards

1
Q

What are cooperate bonds

A

Fixed debit that must be repaired at a fixed future date

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2
Q

What is the buyer/ bond holder?

A

Regular periodic interest payments at fixed rate

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3
Q

What is returned to the bond holder at maturity?

A

Principal

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4
Q

What do you need for financial cooperate expansion? BRSS

A

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

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5
Q

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

A

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

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6
Q

What do ownership shares represent?

A

Represents ownership of a cooperation

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7
Q

Characteristics of mutual funds?

A
  • passive investing
    -portfolio of certain stocks,industries,etc.
  • managed by professional
  • pay a fee
  • easy / comfort
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8
Q

Cheractenstics of index funds?

A

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

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9
Q

How many industries are there? List their names

A

Primary, Secondary, Service

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10
Q

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

A

Service

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11
Q

What affects cooperate share prices?

A

DEMAND:

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

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12
Q

What is a spot market?

A

Immediate delivery

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13
Q

What is a future market?

A

Prices agreed in advanced for future delivery

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14
Q

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

A

Call

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15
Q

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

A

Put

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16
Q

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

A

Blue Chip

17
Q

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

A

Bull market

18
Q

What is a bear market?

A

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

19
Q

STOCK TERM: what is a dividend yield?

A

Current annual dividend/ current share prices

20
Q

STOCK TERM: What is EPS?

A

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

21
Q

Small businesses have what ____ growth and ___ employees.

A

Vertical & less than 50

22
Q

Big businesses have _____ growth and ___ employees

A

Horizontal & 500+

23
Q

What is a coperate alliance?

A

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

24
Q

What is a holding company?

A

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

25
Q

What ia multinational cooperation?

A

Firms that operate from a global perspective.

26
Q

What are the 5 forms of business organization? SPCCG

A
  1. SOLE PROPRIETORSHIP
    2.PARTNERSHIP
    3.COPERATION
    4.CO-OPERATIVE
    5.GOVERNMENT ENTERPRISE
27
Q

What is Sole Proprietorship?
PROS & CONS?

A

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

28
Q

What is Partnership?
PROS + CONS?

A

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

29
Q

What is a corporation?
PROS & CONS?

A

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

30
Q

What is a Co-Operative?
PROS + CONS

A

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

31
Q

What is a Government Enterprise?

A

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

Economics GRADE 12 (5 decks)

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