2. © 2012 Best Teacher Resources

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4. Money needed to start or expand a business. Financial Capital or Business Nest Egg? Question A1 © 2012 © 2012 Best Teacher Resources

5. Question A2 © 2012 The process of turning an invention into a marketable product. Discovery or Innovation? © 2012 Best Teacher Resources

6. Question A3 © 2012 The simplest form of business ownership where a firm is owned and managed by a single individual. Sole Proprietorship or Individual Corporation? © 2012 Best Teacher Resources

7. Question A4 © 2012 The legal obligation to pay any debts of a business. Liability or Legal Debt? © 2012 Best Teacher Resources

8. Question A5 Two or more individuals who agree to contribute resources to a business in return for a share of the profit. Dual Ownership or Partnership? © 2012 Best Teacher Resources

9. Question A6 © 2012 The most common type of partnership where partners share both in the responsibility for running the business and in any liability from the operation. General Partnership or Common Partnership? © 2012 Best Teacher Resources

10. Question A7 © 2012 A partnership where at least one partner is required to be a general partner. Unlimited Partnership or Limited Partnership? © 2012 Best Teacher Resources

11. Question B1 © 2012 A legal entity with an existence that is distinct from the people who organize it, own it, and run it. Corporation or Partnership? © 2012 Best Teacher Resources

12. Question B2 © 2012 A written application to a state seeking permission to form a corporation. Business License or Articles of Incorporation? © 2012 Best Teacher Resources

13. Question B3 © 2012 A corporation that issues stock to just a few people, sometimes only family members. Limited Stock Corporation or Private Corporation? © 2012 Best Teacher Resources

14. Question B4 © 2012 A corporation that has many shareholders who can buy or sell shares of stock. Common Corporation or Publicly Traded Corporation? © 2012 Best Teacher Resources

15. Question B5 © 2012 A type of corporation that combines limited liability protection of the corporation with the single taxation feature of a partnership. Must have no more than 75 stockholders with no foreign stockholders. S Corporation or Limited Liability Corporation? © 2012 Best Teacher Resources

16. Question B6 © 2012 Business with limited liability for some owners, single taxation of business income, and no ownership restrictions. S Corporation or Limited Liability Corporation (LLC)? © 2012 Best Teacher Resources

17. Question B7 © 2012 Like a limited liability company but more easily converted from an existing partnership. Limited Liability Partnerships (LLP) or Convertible Partnership? © 2012 Best Teacher Resources

18. Question C1 © 2012 An organization consisting of people who pool their resources to buy and sell more efficiently than they could independently. Company Employee Pool or Cooperative? © 2012 Best Teacher Resources

19. Question C2 © 2012 Groups that do not pursue profit as a goal; they engage in charitable, educational, humanitarian, cultural, professional activities, often with a social purpose. Not-for-profit Organizations or Social Cause Organizations? © 2012 Best Teacher Resources

20. Question C3 © 2012 The demand for a resource that arises from the demand for the product that resource produces. Resource Demand or Derived Demand? © 2012 Best Teacher Resources

21. Question C4 © 2012 The value of output produced by a resource. Productivity or Generated Product? © 2012 Best Teacher Resources

22. Question C5 © 2012 The wage at which the quantity of labor firms want to hire exactly matches the quantity workers want to supply. Balanced Wage or Equilibrium Wage? © 2012 Best Teacher Resources

23. Question C6 © 2012 One resource can replace another in production; an increase in the price of one resource increases the demand for the other. Fluctuating Resources or Resource Substitutes? © 2012 Best Teacher Resources

24. Question C7 © 2012 One resource works with the other in production; a decrease in the price of one increases the demand for the other. Demand Resource or Resource Complements? © 2012 Best Teacher Resources

25. Question D1 Establishes a minimum amount that an employer can pay a worker for an hour of labor Minimum Wage Law or Right to Wages Law? © 2012 Best Teacher Resources

26. Question D2 A group of workers who join together to seek higher pay and better working conditions by negotiating a labor contract with their employers. Labor Union or Organized Labor Staff? © 2012 Best Teacher Resources

27. Question D3 State law that says a worker at a union company does not have to join the union or pay union dues to hold a job there. Right-to-work Law or Law of Union Dues? © 2012 Best Teacher Resources

28. Question D4 © 2012 The process by which representatives of the union and the employer negotiate wages, employee benefits, and working conditions. Collective Bargaining or Negotiated Union Process? © 2012 Best Teacher Resources

29. Question D5 © 2012 An impartial observer brought in when labor negotiations break down, to suggest how to resolve differences. Corporate Negotiator or Mediator? © 2012 Best Teacher Resources

30. Question D6 © 2012 When labor negotiations break down and the public interest is involved, a neutral third party is brought in to impose a settlement that both sides must accept. Binding Arbitration or Legal Settlement? © 2012 Best Teacher Resources

31. Question D7 © 2012 A labor union’s attempt to withhold labor from the firm. Walk Out or Strike? © 2012 Best Teacher Resources

32. Question E1 © 2012 Union efforts to force employers to hire more workers than demanded for the task. Stacking or Featherbedding? © 2012 Best Teacher Resources

33. Question E2 Annual interest expressed as a percentage of the amount borrowed or saved. Interest Rate or Borrowed Percent? © 2012 Best Teacher Resources

34. Question E3 © 2012 A downward sloping curve showing the negative relationship between the interest rate and the quantity of loans demanded. Demand for Loans Curve or Negative Correlation Curve? © 2012 Best Teacher Resources

35. Question E4 © 2012 An upward sloping curve showing the positive relationship between the interest rate and the quantity of loans supplied. Relative Interest Curve or Supply of Loans Curve? © 2012 Best Teacher Resources

36. Question E5 © 2012 The market that brings together borrowers and savers to determine the market interest rate. Market for Loans or Market for Goods? © 2012 Best Teacher Resources

37. Question E6 The only interest rate at which the quantity of loans demanded equals the quantity of loans supplied. Balanced Interest Rate or Equilibrium Interest Rate? © 2012 Best Teacher Resources

38. Question E7 Banks and other institutions that serve as go-betweens, accepting funds from savers, and lending them to borrowers. Financial Intermediaries or Consultants? © 2012 Best Teacher Resources

39. Question F1 © 2012 The ability to borrow now, based on the promise of repayment in the future. Credit or Trustworthiness? © 2012 Best Teacher Resources

40. Question F2 © 2012 An arrangement with a bank through which a business can quickly borrow needed cash. Emergency Stash or Line of Credit? © 2012 Best Teacher Resources

41. Question F3 © 2012 The interest rate lenders charge for loans to their most trustworthy business borrowers. Borrowers Rate or Prime Rate? © 2012 Best Teacher Resources

42. Question F4 © 2012 An asset owned by the borrower that can be sold to pay off the loan in the event the loan is not repaid. Collateral or Liquid Assets? © 2012 Best Teacher Resources

43. Question F5 © 2012 F5 - The initial sale of corporate stock to the public. Base Line Offering or Initial Public Offering (IPO)? © 2012 Best Teacher Resources

44. Question F6 © 2012 That portion of after-tax corporate profit paid out to shareholders. Share or Dividend? © 2012 Best Teacher Resources

45. Question F7 © 2012 That portion of after-tax corporate profit that is reinvested in the firm. Retained Earnings or Reinvestment Earnings? © 2012 Best Teacher Resources