Business Vocabulary

What does "sustainability" mean?
1. The ability of a company to stay in business.
2. A company's responsibilities to the environment and society.
3. A company's obligation to provide accurate financial statements.
What is "bootstrapping"?
1. Giving under-performing employees "the boot" (i.e., firing them).
2. Using creative accounting to hide losses.
3. Saving start-up costs by finding cheap ways to advertise, utilize office space, etc.
What is NOT typically true of a Board of Directors of a U.S. corporation?
1. Includes directors representing the company's workers
2. Directors determine the CEO's pay and benefits
3. The same person can be Chairman of the Board and CEO
To "hype a stock" means:
1. To distort financial reports in order to hide bad news from investors
2. To try to convince other investors of a stock's value in order to raise the share price
3. To buy large amounts of shares in order to inflate a stock's value
The higher the P/E Ratio, _____________________________.
1. the more the stock is overvalued.
2. the more the stock is undervalued.
3. the higher the stock price.
Which is NOT a trading exchange/system?
1. CAC 80
2. NASDAQ
3. FTSE
What is the total number of shares on the market multiplied by the price per share?
1. Price-earnings ratio
2. Prospective earnings growth
3. Market capitalization
What is an "entrepreneur"?
1. A person who starts his/her own business.
2. A business owned by a French-speaker.
3. An analyst who studies currency fluctuations.
Which is NOT considered a business asset in financial statements?
1. Goodwill
2. Accounts Payable
3. Accounts Receivable
What is "exclusivity"?
1. Selling under one brand name
2. Another name for luxury goods
3. Sole rights to sell in a geographic region
Buying or selling stocks based on secret information about a company is known as:
1. Arbitrage
2. Benchmarking
3. Insider trading
Which is NOT true of the Country of Origin (COO) effect?
1. COO-effects are not stable, perceptions change over time.
2. In general, consumers prefer domestic products to imports.
3. Age of consumers makes no difference.
The goal of _________________ is to break down the market for a product or a service into different groups of consumers which differ in their response to the firm's marketing mix program.
1. market segmentation
2. market fluctuation
3. market differentiation
The ideal outcome of a negotiation is a __________________________ solution.