Foundations of Business
The amount of money a business has left after subtracting expenses from revenue.
What is profit?
A person who starts and manages a business while taking financial risk.
What is an entrepreneur?
The four key elements of the marketing mix: Product, Price, Promotion, and this final element
What is place?
The network of suppliers, manufacturers, and distributors that help produce and deliver goods.
What is a supply chain?
The formula used to calculate business profit.
What is revenue minus expenses?
A cost that remains the same regardless of how many products a company produces.
What is a fixed cost?
Two common characteristics of successful entrepreneurs include innovation and this quality related to continuing despite challenges.
What is persistence?
Dividing customers into groups based on preferences, demographics, or behavior.
What is market segmentation?
Hiring another company to perform work or produce goods.
What is outsourcing?
The financial statement showing revenue, expenses, and profit for a specific time period.
What is an income statement?
A food truck earns $2,000 in sales but spends $1,500 operating the business.
What is $500 profit?
The process of identifying a new business idea by noticing a problem that needs solving.
What is opportunity recognition?
The perception customers have of a company based on its logo, messaging, and reputation.
What is branding?
The measure of output produced relative to the inputs used.
What is productivity?
The movement of money into and out of a business.
What is cash flow?
The economic principle explaining why prices often increase when demand rises but supply stays the same.
What is supply and demand?
Entrepreneurs create this by solving problems or meeting customer needs.
What is value?
The concept from the Spaghetti Sauce TED Talk explaining why companies offer many product varieties.
What is market segmentation?
A team environment where employees feel comfortable sharing ideas without fear of criticism.
What is psychological safety?
A tax imposed on imported goods.
What is a tariff?
The point at which a company’s total revenue equals its total expenses.
What is break-even?
A major uncertainty entrepreneurs face when starting a business that may result in financial loss.
What is risk?
The study of how individuals choose, purchase, and use products.
The study of how individuals choose, purchase, and use products.
An interruption in production or delivery caused by problems in suppliers or transportation.
What is a supply chain disruption?
The practice of selling products in foreign markets below production cost to eliminate competition.
What is dumping?