Business 1
What is a market economy?
Individuals are free to make their own economic decisions.
What is Stock market?
A system and marketplace for buying and stocks.
What is the accounting equation?
Assets = liabilities + owner’s equity
What is the basic economic problem?
All economic resources are limited; needs and wants are unlimited.
What is a command economy?
Government makes all economic decisions for its citizens.
What is Unemployment rate?
The percentage of the civilian labor force that is unemployed.
What are 3 reasons businesses fail?
Lack of money
Lack of business experience
Poor location
What is a traditional economy?
Economic decisions are based on society’s values, culture, and customs.
What is Interest rate?
Represents the cost of a loan and is expressed as a percent of the amount borrowed.
What are some non-price competitive advantages a business could use to differentiate itself from its competitors?
Quality
Customer service
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What is a mixed economy?
Both government and individuals make decisions about economic resources.
What is Inflation?
The general rise in prices throughout the economy.
What are the four P's of marketing?
Product - anything bought or sold.
Place - includes activities involved in getting goods and services to customers.
Price - the amount of money requested or exchanged for a product.
Promotion - the process of communicating with potential customers to influence their buying behavior.
What is a Bond?
A certificate of debt issued by an organization.
What is Gross domestic product(GDP)?
Is the market value of all final products produced in a country during a specific time period.
What are the four stages of the business cycle?
Production - activity related to making a product
Finance - activities involving money
Marketing - activities that identify, anticipate, and satisfy customer demand while making a profit
Management - controlling and making decisions about a business