Bussiness management – Flashcards
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A mining company is a part of what industry?
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Extractive
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Baby boomers are an example of what type of trend ?
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Demographic
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How are business entrepreneurs and social entrepreneurs different?
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Business entrepreneurs and social entrepreneurs are different because they serve different purposes. The purpose of a business entrepreneur is that they sell a product or service to make a profit. On the other hand, a social entrepreneur starts a business or organization to improve society.
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What is an entrepreneur?
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An entrepreneur is a person who starts his/her own business instead of working for someone else.
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What are products?
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A product is something that a person can create and sell to other people.
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What are three of the common factors that make local economies different?
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Three of the common factors that make a local economy different are Population, environment, and location/geography.
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What are consumers?
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Consumers are a person or a company that buys a product or a service.
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What is an economy?
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An economy is the system of production,trade,distribution,and consumption of products and services in an area.
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How does a country's GDP help you determine if its economy is strong or weak?
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The GDP ratio can help determine if an economy is strong or weak because if one region or country produces more products and services that make profit for the economy;than the economy will become stronger and vise versa.
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How does an unemployment rate help you determine if an economy is strong or weak?
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The unemployment rate can help you determine if an economy is strong or weak because if an economy is strong the unemployment rate would be low, and if the economy is weak than the unemployment rate would be high.
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What does a capitalist economy allow people to do?
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A capitalist economy allow people to become entrepreneurs and start their own business.
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What is the difference between an inventor and an entrepreneur?
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The difference between an inventor and an entrepreneur is that an inventor creates a product , and entrepreneur sees ways to make the product ,created by the inventor, into a successful one that one can profit from.
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What is Thomas Edison often mistakenly credited for inventing?
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Thomas Edison often mistakenly gets credited for inventing the light bulb.
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What did Steve Jobs and Steve Wozniak believe Americans would want?
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Steve Jobs and Steve Woziniak believed Americans would want their own computers.
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An economy is created by the interactions between which two groups of people?
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Producers and consumers
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What is the GDP?
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The value of the products and services produced in a country
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What is inflation?
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When the value of a dollar goes down, so you can't get as many products or services for your dollar
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Whats an example of a service-based business?
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A house cleaning company
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Which of the following entrepreneurs bought the right to open McDonald's restaurants?
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Ray Kroc
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Capitalism is also known as what?
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A free enterprise system
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A unit of sale is the _______________ that a person can buy a product or service in.
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Smallest chunk
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If you buy a product or service, you are a/an ___________.
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Consumer
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What is the name for the percentage of people who don't have jobs in a country or area?
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The unemployment rate
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A/an ____________ is the system of production, trade, distribution, and consumption of products and services in an area.
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Economy
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What are six advantages of self-employment?
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Six advantages of self-employment are that you are passionate about the job,financial rewards,all the work you do benefits you,self evaluation, independent decision making, and opportunity to help out the community.
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What are six disadvantages of self-employment?
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The six disadvantages of self-employment are, it's risky,their is financial insecurity,discouragement from others, longer hours, aloneness, and legal issues and paper work.
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What are three disadvantages of teen entrepreneurs?
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Three disadvantages of being a teen entrepreneur is that, you may encounter difficulty with getting people to take you seriously,often too young to own a business, and unfamiliarity with tax forms and legal paper work.
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What are four characteristics of successful entrepreneurs?
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Four characteristics of a successful entrepreneur are passion, discipline,creativity, and independence.
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What are three skills you are likely to need as an entrepreneur?
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The skills that you are likely going to need as an entrepreneur are networking skills,organization skills, listening skills, and speaking skills.
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What are networking skills?
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Networking skills are the ability to develop and maintain relationships with people, and they also help you find and maintain relationships with mentors,investors,and costumers.
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What two main reasons are there for becoming an entrepreneur?
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The two reasons to become an entrepreneur is that you have came up with a unique opportunity or an idea that will make your company better than the competitors, and you are passionate about your business idea and are willing to put in hard work and long hours in order to make it a reality.
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List at least two signs that entrepreneurship might not be a good fit for you.
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Two signs that entrepreneurship might not be a good git for you is that you don't believe the advantages outweigh the risk, and if you like being bossed around and being told what to do.
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List at least two signs that entrepreneurship would be a good fit for you.
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Two signs that an entrepreneurship would be a a good fit for you is that you have many characteristics that a successful entrepreneur has ,and you are not easily discouraged.
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Why is optimism important for an employee?
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Optimism is important for an employee because if you doubt yourself, and what the company is doing why would someone want that negative attitude around. Positive attitude on life is always pleasant.
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What does the CEO of a company do?
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The CEO of a company actually runs the company , and often in smaller companies they take the job of the president and COO.
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What does the president of a company do?
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The presidents of a company manages daily operations of a company.
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Which of the following is a sign that entrepreneurship might be a good fit for you?
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You like figuring things out yourself.
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What does the CIO of a company do?
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Manage the technological areas of the company
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What does the CFO of a company do?
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Manage the financial health of the company
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Which type of skills can help you determine what your customers want?
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Listening skills
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Which of these roles is the highest ranking person in a company?
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CEO
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Which of the following is an advantage that teen entrepreneurs may be more likely than adults to have?
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Media attention
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Which of the following roles does the president of a company often also perform?
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COO
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What are the two most important things that you must have in order to become an entrepreneur?
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A business idea and passion
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Researching the potential demand, pricing, and competition for a product can help you to achieve ___________ from investors and customers.
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Respect
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What is revenue?
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Revenue is the total amount your costumers pay your business for its products or services.
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What is profit motive?
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A profit motive is a business that exists in order to make a profit.
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What is the difference between direct and indirect competition?
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In a direct completion the same exact, or very similar product or service is being offer, and there is competition between them. As of an indirect competition is one that can be substituted for each other because there are a little different from each other, for example jeans and khakis.
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What is noncompetition?
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Noncompetition is when companies have no areas where they compete directly or indirectly.
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What are supply, demand, and scarcity?
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Supply is how much of something is available, demand is how much of that thing people want, and scarcity is when the demand of something is greater than the supply.
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What are three common causes of scarcity?
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The three common causes of scarcity are production difficulty,when the demand is too high, and seasonal products.
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What does the Law of Demand say?
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The law of demand says if all other prices are equal then then the demand will go down if prices go up, and demand will go up if prices are low.
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What are the four factors of production?
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The four factors of production are land, labor, capital, and entrepreneurship.
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As a factor of production, what does the term labor mean?
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Labor means the human mental and physical effort used to turn natural resources into products or services that are useful to people.
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As a factor of production, what does the term capital mean?
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As a factor of production the term capital is defined as tangible product made by labor.
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If a product becomes more easily available, what is likely to happen?
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The price will go down.
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What is gross profit?
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The money left over after the cost of making a product or providing a service
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What is value?
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The amount that a product or service is worth
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If all other factors are equal, what will happen to the demand if the price of a product goes down?
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Demand will go down.
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The total amount your customers pay your business for its products and services is called your __________.
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Revenue
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Every tangible product is made up of what?
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Land
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A product is scarce when what happens?
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Demand is greater than supply.
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As a factor of production, what is capital?
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The tangible products made by labor
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What is an industrial good?
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A good that is purchased by a business for producing other products
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The capitalist system in the U.S. assumes that businesses exist with what motive?
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To make a profit
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What is the extractive industry?
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The extractive industry is one that physically takes resources from the earth such as metals, minerals, and oils.
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What is the manufacturing industry?
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The manufacturing industry takes raw extracted materials or other manufactured materials and transforms them into new tangible physical products.
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What is the wholesaling industry?
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The wholesaling industry is the group of businesses that purchase a product from a manufacturer or another wholesales and resells the product with out transforming it.
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What is the difference between durable and nondurable goods?
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The difference between durable goods and nondurable goods is that durable goods are goods that last longer and are usually more expensive, and nondurable goods are goods that don't last very long, and are usually cheaper.
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What are the four main types of consumer goods?
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The four main types of consumer goods are convenience goods,shopping goods,specialty goods,and unsought goods.
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What are staple and impulse goods?
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Staple goods are necessary to everyday life, and impulse goods are not necessities ,and people don't always keep a supply of them available.
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What is economic utility?
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Economic utility is the ability of a product or service to satisfy a consumer.
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What is form utility?
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Form utility is the value added to a product by changing its physical form to make it more satisfying to the consumer.
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What is place utility?
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Place utility is the value added to a product or service by making it available in a location where the consumer can easily find it.
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What are economies of scale?
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Economies of scale are ways that a company can lower cost per unit by selling more units overall.
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What are three main ways to improve a company's economies of scale?
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The three main ways to improve a company's economies of scale are purchasing, labor, and organization.
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What are diseconomies of scale?
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Diseconomies of scale are when cost per unit increase as a company sells more units.
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Which of the following goods is commonly considered a staple convenience good by many people in the U.S.?
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Toilet paper
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A company that lowers its costs per unit by selling more units overall has improved what?
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Its economies of scale
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A mining company is part of what industry?
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Extractive
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A home-based business is part of what industry?
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Cottage industry
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The set of companies a product goes through on the way to the consumer is called the ______________.
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Distribution chain
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A hotel is part of what industry?
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Service
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Which industry takes materials and transforms them into new tangible, physical products?
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Manufacturing
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An improvement that makes a product satisfy its purpose better is an improvement to the product's ____________ utility.
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Form
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What is a saturated market like for sellers?
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It is more competitive.
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Which of the following is a way to improve a company's economies of scale?
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Buying in bulk
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What are the six stages of a business? Read More >>
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The six stages of business are identity, plan,start,operate,improve,exit.
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What are the four main parts of a company? Read More >>
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The four main parts of a company are production,finance, marketing, and costumer service.
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What are six other departments companies commonly have? Read More >>
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The six other departments are HR,sales,research,IT,legal,tax, and forming departments.
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List at least three factors of business success. Read More >>
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Three factors of business success are passion,research, and specific goals.
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What is a niche market? Read More >>
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A niche market is a small specific market.
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What is a break even point? Read More >>
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The break even point is the point when the company makes exactly enough money to pay for itself without making extra as profit.
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What is ethical behavior? Read More >>
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An ethical behavior is when people behave in a good,moral,fair, and proper way.
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What is unethical behavior? Read More >>
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Unethical behavior is when people behave in a bad ,immoral, unfair, or inappropriate way.
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What is an employee conflict of interest? Read More >>
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An employee conflict of interest is a conflict of interest that occurs when the employee could personally benefit by taking unfair advantage of his or her position in the company.
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In which business stage do you decide whether a business opportunity is a good fit for you personally?
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Identify
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In business, failure usually means what?
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The company ran out of money.
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If an employee has a conflict of interest, this means the employee could do what?
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Personally benefit by taking unfair advantage of his or her position in the company
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The set of ideas, inventions, production processes, trademarks, trade secrets, and other intangible mental creations that belong to the company is called __________.
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Intellectual property
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Which of the following is a common factor of failure for small businesses?
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Expanding quickly
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The point when the company makes exactly enough money to pay for itself, without making extra as a profit, is the ____________ point.
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Break even
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Which of the following tasks is likely to be done by the HR department?
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Hiring employees
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Why are conflicts of interests a problem in business?
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They can lead to unethical behavior.
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Why shouldn't a legal firm represent both parties in a lawsuit?
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Because this creates a conflict of interest for the firm.
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What does the production department of a company do?
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Make the product or provide the service
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What is a business idea? Read More >>
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A business idea is an idea for a company, product, or service.
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What is a business opportunity? Read More >>
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A business opportunity is a consumer problem, need, or desire that a business could provide a solution for.
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What is the global marketplace? Read More >>
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The global marketplace is the market created for buyers and sellers who exchange products or services between different countries.
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What are demographics? Read More >>
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Demographics are characteristics of a population, such as gender,age, race, ethnicity, religion, education, home ownership, disabilities, location, and income.
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What are four common types of changes and trends? Read More >>
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The four common types of changes and trends are demographics, lifestyle, style and entertainment, and inventions and technology.
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What are six resources for helping you decide which type of business to start and how to start it? Read More >>
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Six resources for helping you decide which to of business to start and how to start it are the web,books, people, competitions,the web, and small business administration.
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What is a lifestyle? Read More >>
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A lifestyle is a way of living that shows the beliefs or opinions of a person or group of people.
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What are hobbies? Read More >>
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Hobbies are things you like to do for fun.
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What are interests? Read More >>
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Your interest are subjects you would like to learn more about.
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A company's competitors are other companies that are trying to do what?
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Take advantage of the same opportunity
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What is a lifestyle?
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A way of living that shows the beliefs and opinions of a person or group of people
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Which of the following factors is especially important to consider when you are evaluating whether a business idea is a good opportunity?
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Customer demand
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Which of the following is most likely to create a long-term trend?
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Demographics
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Which of the following is a style trend? A. An increase in the population of young parents in a neighborhood B. The popularity of a new type of jeans C. An increased concern for protecting the environment D. The popularity of cell phones that can access the Internet
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The popularity of a new type of jeans
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A company that is located in the U.S. and sells its product to customers in Mexico is participating in what?
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The global marketplace
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Baby Boomers are an example of what type of trend?
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Demographic
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What is the SBA intended to do?
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Support small businesses
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The U.S. market is large, but many other countries have what advantage over the U.S.?
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Faster growth, with less saturation
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A ___________ is a consumer problem, need, or desire that a business could provide a solution for.
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Business opportunity
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What is an elevator pitch? Read More >>
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An elevator pitch is the spoken version of the company's purpose.
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The spoken version of a company's purpose is also called _____________.
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An elevator pitch
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Which of the following sections of a business plan contains information about the different departments in the company and what they do?
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Organization
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Which section of the business plan contains information about the financial history of the company?
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Financial Analysis
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Which section of the business plan should come first but be written last?
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Executive Summary
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Which section of the business plan contains special information that you only share with those who really need to know about it and is not included with every copy of the business plan?
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Appendix
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A company's ___________ is the range or variety of its products and services.
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Scope
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Quality, personal attention, leadership, and respect are examples of what?
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A company's values
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Most investors will not give your company money unless you have what?
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A business plan
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In a SWOT analysis, which two things represent external conditions and factors that may affect your company?
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Opportunities and threats
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It's easier to develop a clear brand image and message for what sort of company?
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A company with a focused scope
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Which type of company must have a public-service mission and purpose?
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Nonprofit corporation
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A trademark can help your company do what?
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Differentiate itself
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What does it mean to have liability for a company?
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It means you can be held personally accountable for the financial debts and illegal actions of your company.
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Which type of selling method sells the oldest inventory first?
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First In First Out (FIFO)
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Which type of buying method attempts to predict in advance how much inventory will be needed during a specific time period?
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Economic order quantity
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Which of the following companies is the easiest type to set up?
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Sole proprietorship
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Which of the following types of companies provide personal liability protection for their owners?
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Corporations and LLCs
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What is the name for a company that is taxed on the individual tax forms of its owners, and never as a separate independent entity?
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A pass-through entity
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Which type of organization means that there are few or no levels of managers in between the top people who run the company and the employees?
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Flat organization
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If a company is organized by function, that means it is grouped into departments based on what?
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The type of work people do
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The particular market segment your company is trying to sell your products or services to is your _________.
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Target market
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Which of the following is an example of a company increasing its market penetration?
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Taking customers away from competitors
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Which type of promotion happens in informal conversations?
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Word of mouth
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In the five C's of the marketing mix, Product is changed to what?
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Consumer
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In marketing, what are the five P's used for?
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Achieving marketing goals
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A group of people or companies with a shared set of characteristics and needs or desires is called what?
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A market segment
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When your company pays for a promotional message, that is a form of what?
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Advertising
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Advertising and public relations are part of which of the five P's of the marketing mix?
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Promotion
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What is a company's market share?
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The percentage of the total market for the product or service that belongs to the company
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You can use the tools of the marketing mix to create and adjust which strategy?
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Market penetration
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Many people view direct mail ads as what?
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Junk mail
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What is the goal of a press release?
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Creating positive media attention
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Which of the following types of advertising is likely to be the most affordable?
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Internet advertising
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People often buy a product because of the __________ they associate with its benefits.
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Emotions
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Which of the following types of advertising is particularly expensive?
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TV commercials
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What are features of a product?
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The notable qualities or characteristics of a product
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Using advertising to promote a company, instead of a product or service, is called what?
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Institutional advertising
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What are needs?
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Things that people consider necessary to maintain their lifestyle or quality of life
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After you have put a marketing plan in place, it is important to do what?
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Monitor the results
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Which of the following is an advantage of radio ads?
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Radio ads are usually cheaper than TV ads.
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Who does a retail company sell products to?
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End consumers
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Which of the following is an advantage of self-employment?
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Control over time
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The set of ideas, inventions, production processes, trademarks, trade secrets, and other intangible mental creations that belong to the company is called __________.
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Intellectual property
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If all other factors are equal, what will happen to the demand if the price of a product goes down?
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Demand will go up.
