Business Basics
What are the four main types of businesses?
Local, Regional, National, and Multinational
Give one example of a tangible good.
Clothes, food, car, TV, etc.
What are the four factors of production?
Land/Natural Resources, Labor, Capital, Entrepreneurship
What sector currently dominates the U.S. economy?
The Service Sector
McDonald’s is classified as what type of business?
Multinational
The money a business brings in
Revenue
Give one example of a service.
Haircut, car insurance, health care, etc
A tractor would be classified as what factor of production?
Capital
When expenses are higher than revenue, a business experiences a…?
Loss
A local restaurant with one location would be classified as what type of business?
Local
The money a business pays out
Expense
What type of business does not go into business to make a profit?
Non Profit Organizations
What factor of production is any human effort exerted?
Labor
Unlimited wants vs. limited resources
Scarcity
What are three current social trends affecting business?
Aging Population, Increasing workforce diversity, green movement
The money left after expenses are paid
Profit
Name one example of a nonprofit.
American Red Cross, Schools, Churches, Goodwill, Hospitals, etc.
What do we call the person who assumes the risk of owning/operating a business?
Entrepreneur
The value of the next-best alternative you give up when making a choice
Opportunity Cost
Movement of products across international borders; interconnected world economy
Globalization
What is the Profit Formula?
Revenue – Expenses = Profit
What do nonprofits do with the money they make?
Reinvest it back into the organization
List two examples of natural resources.
Water, wood, oil, land, plants
The struggle between two or more businesses to attract scarce customer dollars
Competition
What are the four functions of management?
Production, Marketing, Management, Finance/Accounting