Business Basics
What is a business?
Any organization or enterprise that seeks to provide goods and services to consumers.
What is the basic equation for profit?
Profit = Revenue - Costs
______ protects the name and identifying symbol of a product or company
a. Copyright
b. Trademark
c. Trade secret
d. Patent
D. Patent
If a business is analyzing trends, culture, and the popular demands of a potential audience, it is analyzing its _________ environment...
... social environment...
What does it mean when a company "goes public"?
The company issues an Initial Public Offering (IPO), where it begins to sell stock on the open market in order to raise funds.
Give 2 examples of businesses
Examples:
insurance, banking, consultation, hair cuts, medical check-ups, legal representation, data analytics, etc.
The amount of money going in and out of a business.
Name one legal form of protection for intellectual property.
Trademarks (brands, logos, aesthetics)
Copyright (literature, music, software, art)
Patent (inventions and new tech)
1. Which department is responsible for recruiting, hiring, and onboarding new employees?
a) Marketing
b) Finance
c) Human Resources
d) Operations
D) Human Resources
Why is making a profit so important to businesses?
Profits can be used to repay prior debts, can be reinvested into the business in order to grow it, or can be distributed back to shareholders.
When you’re the only owner of your business and also the person who runs it, what type of ownership is that? (Hint: The term is also used to sell shoes)
Sole
What is something that entrepreneurs take on when starting a business?
Large personal financial risk.
True or false:
When a company expands its operations to a foreign country, the laws it must abide by are those from its original nation.
False!
Both laws from the original nation and laws in the foreign country must be followed to ensure the safety of the business.
Name a concept or event that is a part of a business' economic environment.
Supply, demand, scarcity, inflation, recession, interest rates, etc.
Name 2 functions of marketing.
Pricing, Promotion, Product, Place. (4 p's)
An important part of the planning function of management is to determine the business's:
a. profit
b. goals
c. wants
d. sales
b. goals
Give 2 examples of a cost that a business may encountar
Labor, daily necessary costs, transportation/logistics, production, advertising, interest payments, purchase of resources, equipment, or property, lease payments, research & development, etc.
What is the first part of the litigation process?
a. filing a motion to dismiss
b. appearing in court
c. investigating the complaint
d. appealing the decision
c. investigating the complaint
5. Which department is most likely to manage activities related to supply chain, production, and quality control?
a) Finance
b) Operations
c) Human Resources
d) Marketing
B) Operations
Who is the current CEO of Apple Inc.?
Tim Cook
What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?
a. franchise
b. limited
c. private
d. private
Name the 3 main financial statements that all public companies must report.
Income Statement, Balance Sheet, Statement of Cash Flows.
An important purpose of regulations in the finance industry is to:
a. prevent the banking system from failing.
b. limit the amount of money individuals can earn.
c. challenge the integrity of the financial system.
d. ensure companies are held accountable for product safety.
a. prevent the banking system from failing
What is the (modern) term used to describe the group of all the people that a company is responsible for?
Stakeholders
1. What was the original name of the company now known as Google?
a) PageRank
b) BackRub
c) The Search Engine
d) Netscape