Starting a Business Basics
In order to be a successful entrepreneur you must have an interest in being an entrepreneur and have a strong _________ to a business and a lot of energy.
A. Action-oriented
B. Character
C. Investment
D. Commitment
D. Commitment
What is the money left after all the expenses of a business have been deducted from the income called?
PROFIT!
What does it mean to be persistent? Give an example in the context of entrepreneurs.
To continue in spite of opposition, obstacles, discouragement, etc.
Example: One business idea doesn't work right away or someone says my idea for my business is dumb-I keep going no matter what!
What is feasibility?
Ways of testing the business concept in the market is by completing a feasibility analysis- in other words, feasibility is how easy it is to accomplish your business and what your likely success may be. This is also known as market research.
What is the primary reason an individual starts a business?
A. Profit Motive
B. Equal Pay
C. Current Sales
D. Long-term liabilities
A. Profit motive
We start businesses to make money! (profit)
Fill in the blank... When starting a business, choose a field that __________ you and will provide you with an experience you will enjoy.
Interests you!
The following statement "Making a profit is a primary incentive of the free enterprise system. It is one way of measuring success in a free enterprise system." is called what?
PROFIT MOTIVE
Realistic confidence in one's own judgment, ability, power, etc. are indications of a self-______ person.
Start Your Own Business: No certainty that customers will purchase what you offer.
Is this an advantage or disadvantage? Why?
Disadvantage!
What is it called when a single company controls all of a market and there is no competition?
MONOPOLY
Explain what a franchise is- give 2 examples of franchise businesses.
Franchise: Legal agreement that gives an individual the right to market a company’s products or services in a particular area.
Crumbl, Pizza Hut, Chick-Fil-A
The Law of demand states that as price increases, demand _____________. EXPLAIN WHY AND GIVE AT LEAST ONE EXAMPLE.
DECREASES
EXAMPLE- KIT KATS
Explain what it means to responsible? Why is this an important characteristic for us as entrepreneurs?
Having a capacity for moral decisions and therefore accountable; capable of rational thought or action. Being able to discharge obligations.
What it the term for businesses that sells its product in more than one country? Give an example.
Global Business. Walmart!
If your cash _____ is inadequate, you may want to obtain more capital for your business.
A. Flow
B. Commitment
C. Investment
D. ROI
A. Flow
Name the 4 types of businesses you can start/be a part of...(we talked about them in class last time).
Franchise, start a new business, join/buy an existing business, web-based business
When wants (DEMANDS) are greater than resources (SUPPLY) we call this...GIVE AN EXAMPLE..
A. Profit
B. Equilibrium
C. Scarcity
D. Competition
C. SCARCITY!
EX: KIT KATS
What does it mean to be action-oriented? Why is this an important trait for entrepreneurs?
Believing that actions speak louder than words and if you say that something should be done you do it, NOW.
Name an advantage of a franchise business...
Franchise Ownership: Provided with an established product or service
Franchise Ownership: Offer management, technical, and other assistance
What do we call it when businesses are striving for the same customer or market?
A. Profit
B. Competition
C.Entrepreneurship
D.Taxes
B. Competition
Explain importing and exporting in your own words. Give an example of each.
Exporting-Selling and shipping goods to another country.
Importing-Buying goods from other countries to sell in their own country.
Point at which consumers buy all of a product that is supplied, leaving neither a surplus nor a shortage is called the _________ point.
A. Scarcity
B. Monopoly
C. Equilibrium
D. Duopoly
C. Equilibrium
What does it mean to be "restless" as an entrepreneur and why is this important when it comes to running a successful business?
Never accepting the current situation as being the best situation.
Name the 3 disadvantages of purchasing an existing business.
Purchase an Existing Business: May be for sale because not making money
Purchase an Existing Business: Serious problems may be inherited
Purchase an Existing Business: Capital is required
The amount of money that you receive after you have paid for expenses and replaced your original investment is called what?
ROI-Return on investment