Questions and Answers
A command economy is characterized by:
Which of the following is not a responsibility of the Securities and Exchange Commission (SEC)?
In marketing, the demand for a product is directly influenced by:
The Sarbanes-Oxley Act of 2002:
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An employee earns $2,000.00 per month in gross pay, but pays 9% in federal taxes, 3% for state taxes, and 2% for local taxes. After tax, the company withholds $104.36 for health insurance. What is the employee's net pay?
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A market in which product availability exceeds demand is called:
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Which of the following is not a part of Maslow's hierarchy of needs?
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Which of the following countries is not part of NAFTA?
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A consumer's credit score is directly influenced by which of the following factors?
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Upon which organization does the international community primarily rely to deal with claims of unfair protectionism by one country against another?
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A homeowner is attempting to choose between several mortgage loans for a $200,000 home. Which of the following would have the lowest monthly payment?
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The biggest factor that leads American companies to manufacture their products overseas in developing countries like China and India is:
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Which of the following correctly summarizes the accounting equation for a sole proprietorship?
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In order to present a business plan to a group of potential investors, a businessperson would most likely use which software?
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In order to start an online business, an individual would need all but which of the following:
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Which of the following types of assets would not be subject to depreciation?
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When itemizing deductions on a federal tax return, an individual taxpayer may be able to deduct all but which of the following?
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Which of the following terms best describes a situation where an individual enters into an agreement with a company to use the company's business model within a given territory, usually in exchange for a fee?
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Study Notes
Economic Concepts
- A command economy involves government control over prices and production.
- Differences in the responsibilities of the SEC include regulating securities, investigating insider trading, and processing IPO applications, but not setting interest rates.
- Demand for a product is influenced by customers' desire and ability to obtain it.
Regulatory Framework
- The Sarbanes-Oxley Act of 2002 was enacted to combat corporate and accounting fraud.
- Trade agreements exclude countries like China from NAFTA, which includes Canada, the U.S., and Mexico.
Financial Knowledge
- An employee earning $2,000 with various tax deductions and health insurance has a net pay of $1,615.64.
- A buyer's market exists when product availability exceeds demand.
- Factors affecting a consumer's credit score mainly include debt repayment history.
International Trade
- The World Trade Organization (WTO) addresses claims of unfair protectionism.
- Lower labor costs drive American companies to manufacture in countries like China and India.
Business Operations
- The correct accounting equation for a sole proprietorship is Assets = Liabilities + Owner's Equity.
- Presentation software for business plans is typically PowerPoint.
Starting a Business
- Essential for starting an online business includes a business model, website, and email; a fax machine is unnecessary.
- Assets such as real estate are not subject to depreciation.
Tax Deductions
- When itemizing deductions, groceries cannot be deducted, but mortgage interest, charitable donations, and theft losses can.
- A franchise involves using a company's business model in exchange for a fee.
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Description
Prepare for the GACE exam with this set of flashcards focusing on key concepts such as command economy and the role of the SEC. Each card provides a question to test your knowledge and a clear answer for self-assessment. Perfect for efficient study and review.
