Economics Essentials
The law stating that higher prices lead to a decrease in quantity demanded and vice versa.
Law of Demand
The fundamental accounting equation states: Assets = Liabilities + ______.
What is Equity (or Owner's Equity / Shareholder's Equity)?
The strategic framework known as "SWOT" stands for Strengths, Weaknesses, Opportunities, and ______.
Threats
A type of business entity that limits the personal liability of its owners to the amount invested.
LLC
The founder of Microsoft who became one of the most prominent philanthropists in the world.
Bill Gates
The term for the loss of potential gain from other alternatives when one alternative is chosen.
Opportunity Cost
A financial statement showing a company's revenues and expenses over a specific period.
What is an Income Statement (or Profit & Loss Statement)?
The traditional 4 Ps of the Marketing Mix are Product, Price, Promotion, and ______.
Place
An agreement between two or more parties that is enforceable by law.
Contract
The industrialist who popularized the assembly line method of mass production for automobiles.
Henry Ford
An economic system where production and prices are determined by unrestricted competition between privately owned businesses.
What is a Free Market Economy (or Capitalism)?
What the abbreviation ROI stands for in business and investments.
What is Return on Investment?
A brief, persuasive speech used to spark interest in an idea, product, or company, usually lasting 30 to 60 seconds.
Elevator Pitch
An intellectual property right granted by the government to an inventor to exclude others from making, using, or selling an invention.
Patent
The Scottish philosopher often referred to as the "Father of Modern Economics" and author of The Wealth of Nations.
Adam Smith
The measure of responsiveness of quantity demanded or supplied to a change in price.
Price Elasticity
The reduction in the recorded value of a fixed asset in a systematic manner until the asset's value becomes zero or negligible.
What is Depreciation?
What CAC stands for, measuring the cost incurred to convince a customer to buy a product or service.
Customer Acquisition Cost
The management philosophy focused on continuous improvement of processes, originally popularized in Japan (Kaizen).
What is Lean (or Continuous Improvement / Kaizen)?
The holding company led by Warren Buffett, known for investing in companies like Coca-Cola and GEICO.
Berkshire Hathaway
The point at which market supply and market demand intersect and equal each other.
Equilibrium Point
The acronym EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and ______.
Amortization
The business strategy term co-created by W. Chan Kim for creating uncontested market space, making competition irrelevant.
Blue Ocean Strategy
What KPI stands for, used by managers to evaluate success in reaching targets.
What is a Key Performance Indicator?
The 19th-century American business magnate who built his wealth in railroads and shipping, earning the nickname "Commodore."
Who is Cornelius Vanderbilt?