Business Basics
A haircut, a car repair, and a guitar lesson are examples of these, which are actions performed for customers rather than physical products.
What are services?
This is a plan for how you will spend and save your money.
What is a budget?
The 4 P’s of marketing are Product, Price, Place, and this.
What is Promotion?
Food, water, and shelter are examples of these, which people must have to survive.
What are needs?
This is a person who starts their own business and takes on the risk of running it.
What is an entrepreneur?
This is the money a business has left over after paying all of its expenses.
What is profit?
This is the money a bank pays you for keeping your money in a savings account.
What is interest?
This is the specific group of people a business wants to sell its product to.
What is a target market?
This is the amount of a product that consumers are willing and able to buy.
What is demand?
This written document describes a new business’s goals and how it plans to reach them.
What is a business plan?
This type of business is owned and run by just one person.
What is a sole proprietorship?
This is the amount of your paycheck after taxes and deductions are taken out.
What is net pay?
This is a name, symbol, or design that identifies a company’s products, like the Nike swoosh.
What is a brand?
This basic economic problem means resources are limited but people’s wants are unlimited.
What is scarcity?
This is a business where the owner pays to use another company’s name and system, like many fast-food restaurants.
What is a franchise?
This type of business is owned by two or more people who share the profits and responsibilities.
What is a partnership?
This three-digit number tells lenders how likely you are to pay back borrowed money.
What is a credit score?
Dividing customers into groups based on age, income, or gender uses this type of information.
What are demographics?
According to this law, as the price of a product goes up, producers will make more of it.
What is the law of supply?
This planning tool looks at a business’s Strengths, Weaknesses, Opportunities, and Threats.
What is a SWOT analysis?
This type of business is owned by stockholders and is legally separate from its owners.
What is a corporation?
This type of expense stays the same every month, like rent or a car payment.
What is a fixed expense?
This is the process of gathering information about customers and competitors to make better business decisions.
What is market research?
This is the value of the next best choice you give up when you make a decision.
What is opportunity cost?
This is the point where a business’s income equals its expenses, so it makes no profit and has no loss.
What is the break-even point?