Economic
What is the basic economic problem?
Unlimited wants vs limited resources
What are the four P's of marketing?
Product, Place, Price, Promotion
Identify who stakeholders are for a particular business (Target/Starbucks etc)?
Customers, Owner's, Owner's family, Suppliers
What is the accounting equation?
Assets = Liabilities + Owner's Equity
Define Law of Supply & Demand
The greater the demand for a limited supply of something, the more that thing is worth
Define economics
The study of how society manages its scarce resources
Define target market
The group of people who are most likely to buy a particular product
Identify 3 reasons businesses fail
Lack of capital/funding, Weak leadership, Poor marketing, etc
A general increase in prices and fall in the purchasing value of money
Define social responsibility
A business's obligation to pursue policies, make decisions, and take actions that benefit society
Five most widely used economic indicators
Gross Domestic Product (GDP), Inflation, Interest rates, Unemployment rates, Stock and bond markets
Define product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
Identify non-price competitive advantages a business could use to differentiate itself from its competitors
Location, Quality, Customer Service, Promotions, etc
Arranging funding by borrowing money
Define business ethics
Principles and standards that determine acceptable conduct in business
What are the four economic systems?
Market Economy, Command Economy, Traditional Economy, Mixed Economy
Define monopoly
When a single seller controls production of a product and its price.
Four stages of the business cycle (curve)
Expansion, peak, recession, trough
Define equity financing
Where you trade partial ownership of some of your business to investors in exchange for their capital
Define contract
A legally binding agreement between two or more parties
Define Gross Domestic Product (GDP)
Total value of all domestically produced goods and services
Define oligopoly
A market form in which a market or industry is dominated by a small number of sellers
Define exports
Goods produced domestically and sold abroad
Examples of assets
Cash, Accounts receivable, Buildings, Machines, Inventory
Define opportunity cost
The loss of potential gain from other alternatives when one alternative is chosen.