Economics
Definition: When businesses decide to produce a good/service and are willing and able to produce a good for a certain price.
What is Supply?
What is indirect competition?
Mode of promoting a business to create brand awareness among people through media coverage and other modes of public communication without incurring any costs
What is publicity?
Is The owners original investment an asset, liability or owner's equity?
What is owners equity?
Ordering food at a restaurant is an example of what type of contract
Implied contract
As price increases, the quantity decreases describes the law of ________.
What is demand?
List 2 ways you can segment your target market
What is demographics, psychographics, use-based and geographic?
A commercial that "tugs at your heart strings" would be an example of what type of appeal?
What is emotional appeal?
What is the accounting equation?
Assets=liabilities + Owner's equity
Give 2 examples of how a business can show social responsibility
giving to charity, environmental efforts/sustainability, paying workers fair wages, having foundations, helping/volunteering in the community, etc.
What is the point called where the supply and demand curves cross?
Equilibrium point
I am selling cupcakes for $5 each. If the cost to make the cupcakes is $2/cupcake. How much profit do I make if I sell 10 cupcakes
what is $30?
List the 4 P's of the marketing mix
Product, place, promotion and price
Which financial statement does employee wages go on?
Income statement
Who does a business have ethical obligations to?
Its community, suppliers, employees and customers
If the price of tennis racquets went up, how does this effect the demand for tennis shoes?
What is demand will decrease because the price of complementary goods is higher?
What are two risks of starting a business?
What is start up costs, not working out, loosing investment, no profit, competition
2 examples of different forms of marketing
What is mass media, point of sale, word of mouth, and publicity?
What is the difference between a balance sheet and an income statement?
Balance sheet - shows financial position (assets, liabilities and owners equity) at a specific time. Income sheet - shows profit loss/gain over a period of time
List 4 of the 6 elements that makes a contract legally binding
Offer, acceptance, competence, consideration, consent, legality
List 3 factors that affect demand
What is price of substitute goods, price of complementary goods, consumer income, tastes/preferences, expectations of future prices and demography?
What is the difference between gross profit and net profit?
Gross profit is revenue - COGS where as Net profit is the amount left over after all operating costs have been subtracted
List 3 elements that you should consider when creating a brand for your business.
Mission, vision, values, name, how the business is perceived by consumers, voice, slogan, logo
How would you organize the following assets on a balance sheet: accounts receivable, property, cash, furniture, supplies.
Cash, accounts receivable, supplies, property, furniture
Sarah offers to sell Kent her canoe for $700. Kent states that he will accept the offer if Sarah includes the paddles as well. Is there a binding contract?
The first contract has been amended. So Sarah could decline, but if there is an agreement to include the paddles then it would be binding.
Issue with acceptance