vocabulary
What is an entrepreneur?
A person who starts a business.
A business sells a product for 25 dollars. It costs 15 dollars to make. What is the profit per item?
10 dollars
A store notices customers keep asking for a product they do not sell. What should the store do?
Answer: Add the product to meet customer demand
A student earns 200 dollars a week and spends 150 dollars. How much money do they save?
Answer: 50 dollars
A company wants customers to remember their brand. What is one simple tool they can use?
Answer: A clear logo or slogan
What is revenue?
Money a business earns.
A store buys shirts for 12 dollars each and sells them for 18 dollars. What is the markup percentage?
50 percent markup
A business gets many complaints about slow service. What is the best first step?
Answer: Train workers or add staff to improve service speed.
You buy a laptop for 900 dollars. Sales tax is 8 percent. What is the total cost?
Answer: 972 dollars
A business learns that most of its customers are teens who shop online. What should the business do?
Answer: Increase online ads and improve the website
What is a fixed cost?
A cost that stays the same.
A company has 4,000 dollars in fixed costs and earns 40 dollars profit per item sold. How many items must they sell to break even?
100 items
A company wants to enter a new market but faces strong competition. What is one smart strategy?
Answer: Offer a lower price or a unique feature to stand out.
A credit card charges 18 percent interest each year. If you owe 1,000 dollars and do not pay it off, how much interest will you owe after one year?
Answer: 180 dollars
A company wants to understand why sales are dropping. What is the best research method to start with?
Answer: Survey customers to learn their needs and problems
What is supply and demand?
How much people want and how much is made.
A business earns 12,500 dollars in revenue and has 9,300 dollars in expenses. What is the profit margin?
Profit is 3,200 dollars; profit margin is 25.6 percent
A business sees that online sales are rising while in‑store sales are falling. What should they do to adapt?
Answer: Invest more in online marketing, website design, and shipping options.
A worker earns 3,000 dollars a month. After taxes and deductions, they take home 2,250 dollars. What percent of their income is taken out?
Answer: 25 percent
A business sees that customers compare prices before buying. What strategy can help the business stay competitive?
Answer: Use competitive pricing or offer price‑match deals
What is a target market?
The group of people a business wants to sell to.
A product’s original price is 80 dollars. The store applies a 30 percent discount, then adds 8.25 percent sales tax. What is the final price the customer pays?
Discounted price is 56 dollars and final price is about 60.62 dollars
A company’s product is high quality, but sales are low. Market research shows customers do not understand what makes it better. What should the company do?
Answer: Improve advertising to clearly explain the product’s value and benefits.
You invest 2,000 dollars in a fund that grows 6 percent each year. How much money will you have after one year?
Answer: 2,120 dollars
A company wants to launch a new product but is unsure who will buy it. What is the most important first step?
Answer: Identify the target market through market research