Test Prep 5th Hour

Tort

a business or person who uses another person's name, without permission, for the benefit of the user

Sole Proprietorship

Form of business ownership in which of the business is owned by one person

Inflation

Rapid rise in prices usually occurring when demand exceeds supply

Excise tax

A special government tax on certain items, such as gasoline, certain businesses, cars, etc.

Store of value

When money is saved rather than spent

Medium of exchange

When money is used to obtain goods and services

High interest rates

a business condition that can create economic risks

Liability

Financial obligations a business has

Liquid asset

cash or any asset that can quickly be converted into cash

Dividends

Sums of money paid to investors or stockholders as earnings on investments

Profit margin

the amount of money that a business earns on sales after expenses; expressed as a ratio

Green marketing

practice of pricing, promoting, and distributing products in such a way that they do not harm the natural environment