Competition
Who is the biggest rival and most competitive with Coca-Cola?
Pepsi
What is business risk?
When a company makes a decision that makes less money or sometimes loses money
What is profit?
A financial gain, when you spend little, but gain lots
A company that has complete control over a single market
Monopoly
How can the location of a business create risks?
Natural disasters: Tornadoes, Earthquakes, Floods, etc.
What is the one goal of any company?
To make a profit
How does competition benefit the consumers?
The companies provide a product that is low price and high quality
True or False: Higher risk means higher reward
FALSE
If a company sells $400 worth of product, but it costs $190 to produce, what is the gross profit?
$210 gross profit
Market competition enhances...(4 P's)
Product
Place
Promotion
Price
Give an example of a famous business failure
Our example... BugerKing's SatisFRIES
$110 profit
Why do companies compete?
The companies provide similar products or services, therefore they are trying to reach the target market
Name 3 types of business risk?
Personal risk, property risk, liability risk
What is gross profit?
(Sales-Cost of goods sold)= Gross Profit