Introduction to Business (Chapters 1-3) – Flashcards

question
Entrepreneur
answer
Someone who creates and runs a business; they take the risks that it involves.
question
Risk
answer
The chance of losing something
question
Rewards of Being an Entrepreneur
answer
Making your own rules; doing work you enjoy; creating greater wealth; helping your community.
question
Risks of Being an Entrepreneur
answer
Potential Business Failure; unexpected obstacles; financial insecurity; long hours and hard work.
question
Small Business Job Creation
answer
Small Business create 64% of all new jobs
question
Skill
answer
Is an ability that's learned through training and practice.
question
Aptitude
answer
Is a natural ability to do a particular type of work or activity well.
question
Attitude
answer
Is a way of viewing or thinking about something that affects how you feel about it.
question
Reasons to Study Entreprenuership
answer
Learning to think like an entrepreneur and develop a vision of life.
question
Self Assessment
answer
Evaluating your strengths and weaknesses is an important part of being an entrepreneur.
question
Increasing Your Business Potential
answer
Focus on business knowledge, financial skills, career exploration, community awareness, education and relationships.
question
Characteristics of an Entrepreneur
answer
Courage, creativity, curiosity, determination, discipline, empathy, honesty, responsibility.
question
Economics
answer
Social science concerned with how people satisfy their demands for goods (things you can buy) and services (things people do for a fee) when the supply of those goods and services is limited.
question
Command Economy
answer
The government owns and manages the nation's resources and businesses
question
Market Economy
answer
Suppliers produce whatever goods and services they wish and set prices based on what consumers are willing to pay
question
Mixed Economy
answer
An economy where both government control and a market economy are intermingled together.
question
Free Enterprise
answer
Another name for a market economy.
question
Supply
answer
Is the quantity of goods and services a business is willing to sell at a specific price and a specific time.
question
Demand
answer
Is the quantify of goods and services consumers are willing to buy at a specific price and a specific time.
question
Supply and Demand Curves
answer
Is a graph that includes both a supply curve and a demand curve. It shows the relationship between price and the quantity of a product or service that is supplied and demanded.
question
Competition
answer
Is common in a market economy. People are free to start and operate businesses that compete against each other.
question
Profit Motive
answer
Is an incentive that encourages entrepreneurs to take business risks in the hope of making a profit.
question
Economics of One Unit
answer
Is a calculation of the profit (or loss) for each unit of sale made by a business. Calculate the economics of one unit by subtracting the costs for the unit of sale from its selling price.
question
Profit or Loss
answer
Selling Price - Cost
question
Non-Profit Organization
answer
Operates solely to service the good of society. Non-profits are not governmental organizations. They operate much like for-profit businesses.
question
Global Economy
answer
Is the flow of goods and services around the world.
question
Profit Percentage
answer
(Profit/Selling Price) x 100
question
Scarcity
answer
When there are not enough goods and services to meet the demand.
question
Types of Businesses
answer
Manufacturing, Wholesaling, Retailing, and Service
question
Business Start-Ups
answer
Service Based Economy in the 21st Centruy
question
Unlimited Liability
answer
Means that a business owner can be legally forced to use personal money and possessions to pay the debts of the business
question
Limited Liability
answer
Means that a business owner cannot be legally forced to use personal money and possessions to pay business debt.
question
Sole Proprietorship
answer
Is a legally defined type of business ownership in which a single individual owns the business, collects all profit from it, and has unlimited liability for its debt.
question
General Partnership
answer
Is a legally defined type of business organization in which at least two individuals share the management, profit, and liability.
question
Limited Partnership
answer
Is structured so that at least one partner (the general partner) has limited liability for the debts of the business.
question
Corporation
answer
Is a legally defined type of business ownership in which the business is considered a type of "person" (or "entity") under the law, and limited liability is granted to the business owner(s).
question
Shareholders or Stockholders
answer
The owners of a corporation.
question
C Corporation
answer
They are taxed as an entity by the federal government.
question
Subchapter S Corporation
answer
Differs from a C corporation in how it is taxed. It is not taxed as an entity, rather its income or loss is applied to each shareholder and appears on their tax returns.
question
Limited Liability Company
answer
Differs from a C corporation in how it is taxed. It is not taxed as an entity, rather its income or loss is applied to each shareholder and appears on their tax returns.
question
Non-Profit Corporation
answer
Is a legally defined type of business ownership in which the company operates not to provide profit for its shareholders but to serve the good of society.
question
Cooperatives
answer
Is a business owned, controlled, and operated for the mutual benefit of its members—people who use its services, buy its goods, or are employed by it.
question
Advantages of a Sole Proprietorship
answer
Pride of Ownership, Ease of Start up and Closure, Retention of all profits
question
Disadvantages of a Sole Proprietorship
answer
Unlimited liability, limited money, lack of management skills
question
Advantages of a Partnership
answer
Ease of start up, availability of credit, combined knowledge
question
Disadvantages of a Partnership
answer
Unlimited liability in a general partnership, management disagreements, frozen investment
question
Advantages of a Corporation
answer
Limited liability, Ease of raising capital, perpetual life
question
Disadvantages of a Corporation
answer
Difficult and expense to form, government regulation and paperwork, double taxation
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question
Entrepreneur
answer
Someone who creates and runs a business; they take the risks that it involves.
question
Risk
answer
The chance of losing something
question
Rewards of Being an Entrepreneur
answer
Making your own rules; doing work you enjoy; creating greater wealth; helping your community.
question
Risks of Being an Entrepreneur
answer
Potential Business Failure; unexpected obstacles; financial insecurity; long hours and hard work.
question
Small Business Job Creation
answer
Small Business create 64% of all new jobs
question
Skill
answer
Is an ability that's learned through training and practice.
question
Aptitude
answer
Is a natural ability to do a particular type of work or activity well.
question
Attitude
answer
Is a way of viewing or thinking about something that affects how you feel about it.
question
Reasons to Study Entreprenuership
answer
Learning to think like an entrepreneur and develop a vision of life.
question
Self Assessment
answer
Evaluating your strengths and weaknesses is an important part of being an entrepreneur.
question
Increasing Your Business Potential
answer
Focus on business knowledge, financial skills, career exploration, community awareness, education and relationships.
question
Characteristics of an Entrepreneur
answer
Courage, creativity, curiosity, determination, discipline, empathy, honesty, responsibility.
question
Economics
answer
Social science concerned with how people satisfy their demands for goods (things you can buy) and services (things people do for a fee) when the supply of those goods and services is limited.
question
Command Economy
answer
The government owns and manages the nation's resources and businesses
question
Market Economy
answer
Suppliers produce whatever goods and services they wish and set prices based on what consumers are willing to pay
question
Mixed Economy
answer
An economy where both government control and a market economy are intermingled together.
question
Free Enterprise
answer
Another name for a market economy.
question
Supply
answer
Is the quantity of goods and services a business is willing to sell at a specific price and a specific time.
question
Demand
answer
Is the quantify of goods and services consumers are willing to buy at a specific price and a specific time.
question
Supply and Demand Curves
answer
Is a graph that includes both a supply curve and a demand curve. It shows the relationship between price and the quantity of a product or service that is supplied and demanded.
question
Competition
answer
Is common in a market economy. People are free to start and operate businesses that compete against each other.
question
Profit Motive
answer
Is an incentive that encourages entrepreneurs to take business risks in the hope of making a profit.
question
Economics of One Unit
answer
Is a calculation of the profit (or loss) for each unit of sale made by a business. Calculate the economics of one unit by subtracting the costs for the unit of sale from its selling price.
question
Profit or Loss
answer
Selling Price - Cost
question
Non-Profit Organization
answer
Operates solely to service the good of society. Non-profits are not governmental organizations. They operate much like for-profit businesses.
question
Global Economy
answer
Is the flow of goods and services around the world.
question
Profit Percentage
answer
(Profit/Selling Price) x 100
question
Scarcity
answer
When there are not enough goods and services to meet the demand.
question
Types of Businesses
answer
Manufacturing, Wholesaling, Retailing, and Service
question
Business Start-Ups
answer
Service Based Economy in the 21st Centruy
question
Unlimited Liability
answer
Means that a business owner can be legally forced to use personal money and possessions to pay the debts of the business
question
Limited Liability
answer
Means that a business owner cannot be legally forced to use personal money and possessions to pay business debt.
question
Sole Proprietorship
answer
Is a legally defined type of business ownership in which a single individual owns the business, collects all profit from it, and has unlimited liability for its debt.
question
General Partnership
answer
Is a legally defined type of business organization in which at least two individuals share the management, profit, and liability.
question
Limited Partnership
answer
Is structured so that at least one partner (the general partner) has limited liability for the debts of the business.
question
Corporation
answer
Is a legally defined type of business ownership in which the business is considered a type of "person" (or "entity") under the law, and limited liability is granted to the business owner(s).
question
Shareholders or Stockholders
answer
The owners of a corporation.
question
C Corporation
answer
They are taxed as an entity by the federal government.
question
Subchapter S Corporation
answer
Differs from a C corporation in how it is taxed. It is not taxed as an entity, rather its income or loss is applied to each shareholder and appears on their tax returns.
question
Limited Liability Company
answer
Differs from a C corporation in how it is taxed. It is not taxed as an entity, rather its income or loss is applied to each shareholder and appears on their tax returns.
question
Non-Profit Corporation
answer
Is a legally defined type of business ownership in which the company operates not to provide profit for its shareholders but to serve the good of society.
question
Cooperatives
answer
Is a business owned, controlled, and operated for the mutual benefit of its members—people who use its services, buy its goods, or are employed by it.
question
Advantages of a Sole Proprietorship
answer
Pride of Ownership, Ease of Start up and Closure, Retention of all profits
question
Disadvantages of a Sole Proprietorship
answer
Unlimited liability, limited money, lack of management skills
question
Advantages of a Partnership
answer
Ease of start up, availability of credit, combined knowledge
question
Disadvantages of a Partnership
answer
Unlimited liability in a general partnership, management disagreements, frozen investment
question
Advantages of a Corporation
answer
Limited liability, Ease of raising capital, perpetual life
question
Disadvantages of a Corporation
answer
Difficult and expense to form, government regulation and paperwork, double taxation
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