Types of Organizations/Funding
A business owned and operated by one person
Sole Proprietorship
True or false: The higher the barrier to entry in an industry, the less competition you will likely face
True
A strategy where a product is priced higher than similar products in the market, often to convey exclusivity or luxury.
Premium Pricing
Business costs that are constant regardless of the quantity of goods or services produced.
Fixed Costs
Investors give money to high potential businesses in exchange for part ownership (equity)
Venture Capital
What is the most common barrier to entry?
Money
A psychological pricing strategy where prices end in odd numbers rather than round numbers, which is believed to make the price seem lower.
Odd-even pricing
Business costs that change in proportion to production or sales volume.
Variable Costs
Free money given by governments or organizations, usually for specific purposes
Grants
What are the 2 types of analysis we discussed in class to analyze internal and external factors on the business?
SWOT & PEST
A strategy where a product is sold at a very low price (often below cost) to attract customers, with the expectation they will purchase other higher-margin products.
Loss Leader Pricing
What was the name of the type of business plan we discussed in class that was focused on a fast to write process, focusing only on key elements of the business plan?
Business Model Canvas
A business structure that protects the assets of its owners from lawsuits and creditors concerned with the company's business debts, but cannot sell stock.
Limited Liability Company (LLC)
A particular group of consumers at which a company aims its products and services.
Target Market
A pricing strategy in which prices increase in response to higher demand or limited availability.
Surge (Dynamic) Pricing
A business model where a person buys the rights to operate a location of an established brand
Franchise
An independent legal entity owned by its shareholders
C Corporation
What does SWOT analysis stand for?
Strengths, Weaknesses, Opportunities, Threats
A strategy where a product is priced lower than competitors to quickly gain market share and attract a large number of customers.
Penetration Pricing
Give 3 advantages of franchising
Brand recognition, training, financing, national marketing, etc.