Exam 1: Ch 1-4
What is the difference between standard of living and quality of life?
Standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area. Quality of life, on the other hand, is a subjective term that can measure happiness.
Name 5 different types of business structures.
Sole Proprietorship
Partnership
C Corp
S Corp
LLC
What are the elements of the marketing mix?
Place, Product, Promotion, Price
What does it mean to help the buyer buy?
free-market economy
The free market is an economic system based on competition, with little or no government interference.
What are the 5 factors of production? Which is most important?
Land, Labor, Capital, Entrepreneurship, and Knowledge
Knowledge
What is the difference between a merger and an acquisition?
In an acquisition, one company purchases another outright. A merger is the combination of two firms, which subsequently form a new legal entity under the banner of one corporate name.
List 4 types of marketing intermediaries and explain why they are beneficial.
Four types of traditional intermediaries include agents and brokers, wholesalers, distributors and retailers.
Marketing intermediaries can perform marketing functions faster and more cheaply than producers and consumers.
What is the difference between monetary and fiscal policy?
Monetary policy addresses interest rates and the supply of money in circulation, and it is generally managed by the Fed. Fiscal policy addresses taxation and government spending, and it is generally determined by government legislation.
absolute advantage
Absolute advantage refers to the ability to produce more or better goods and services than somebody else.
What is the 'invisible hand'? Who came up with the idea?
The invisible hand is a metaphor for the unseen forces that move the free market economy. Through individual self-interest and freedom of production and consumption, the best interests of society, as a whole, are fulfilled. The constant interplay of individual pressures on market supply and demand causes the natural movement of prices and the flow of trade.
Adam Smith
Name 4 of the 9 parts of a business plan?
Executive summary
Marketing plan
Capital required
Manufacturing plan
Company background
Cover letter
Location analysis
Management team
Financial plan
What is the Channel of Distribution? List it's parts in order.
A distribution channel is the network of businesses or intermediaries through which a good or service passes until it reaches the end consumer.
Manufacturers, wholesalers, retailers, consumers
What is the difference between a stock and a bond?
The biggest difference between stocks and bonds is that with stocks, you own a small portion of a company, whereas with bonds, you loan a company or government money. Another difference is how they make money: stocks must grow in resale value, while bonds pay fixed interest over time.
limited liability company
A limited liability company (LLC) is a business structure that offers limited liability protection and pass-through taxation. As with corporations, the LLC legally exists as a separate entity from its owners.
What are 4 strategies for reaching global markets?
The four strategies they use most involve exporting, licensing, franchising, and joint ventures.
What are the four functions of a manager?
What are the 4 forms of planning?
Leading, Controlling, Organizing, Planning
Strategic, Tactical, Contingency, Operational
What are 4 ways businesses can raise capital?
retained earnings, borrow money, sell bonds, sell stock
What are the 5 main components of personal finance?
Budgeting, insurance, interest, credit score, savings/retirement
benefit segmentation
Benefit segmentation is the categorization of your target audience based on the value they'll receive from your product or service. Different customers often seek different value propositions from the same product or service.
What is corporate responsibility? What is the difference between compliance-based and integrity-based ethics?
Corporate responsibility (CR) is about the impact an organization makes on society, the environment and the economy.
Compliance-based ethics are a set of specific rules meant to protect businesses and employees from legal repercussions due to violating laws. Integrity-based ethics are meant to establish business values and moral principles that employees should adhere to during daily business affairs.
What is a job analysis?
Job analysis is the process of gathering and analyzing information about the content and the human requirements of jobs, as well as, the context in which jobs are performed. This process is used to determine placement of jobs.
Explain the 3 ways that the money supply is controlled and what the long-term economic effect is for each method.
The tools are (1) reserve requirements, (2) the discount/interest rate, and (3) open market operations (stocks and bonds).
Raise reserve requirements, raise interest rate & sell bonds = slow economy
Lower reserve requirements, lower interest rate & buy bonds = speed-up economy
What is a utility in marketing? Name the 6 types of utility.
Utility is the value, or want-satisfying ability, that is added to goods by organizations that make the goods more useful or accessible to consumers than they were before.
There are six types of utility: form, time, place, possession, information, and service.
initial public offering (IPO)
An IPO, or initial public offering, is when a company goes from being privately-owned to publicly-owned. That means that investors can purchase its stock on the stock market.