Chapter 1 - Business Foundations
A person who risks time and money to start and manage a business.
What is an entrepreneur?
When no one business is large enough to dictate the price of a product.
What is Perfect Competition?
A business owned and usually managed by one person.
What is a sole proprietorship?
A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or groups of sellers and distinguishes them from those of others
What is a Brand?
The combination of salary, vacation time, paid health care, and other benefits.
What is Compensation?
The buying and selling of goods over the internet.
What is E-commerce?
Businesses decide the cost of goods and services and how much they produce.
What is Free Market Economies?
A partnership with one or more general partners and one or more limited partners.
What is a limited partner?
The Product, Price, Place, and Promotion, the four ingredients of a marketing program mix.
What is the market mix?
A study of what employees do and who holds which job titles, and a study of what employees do and who holds various job titles.
What is a job analysis?
The worldwide integration of government policies, cultures, social movements, and financial markets through trade and the exchange of ideas.
What is Globalization?
The number of civilians aged 16 and older who are not employed and who have been looking for a job within the last four weeks.
What is the unemployment rate?
What are three ways that entrepreneurs can finance their businesses?
Using their own money, taking out loans, and securing investment in their business.
What is the difference between primary research and secondary research?
Primary research is information a business collects itself, such as through surveys or interviews.
Secondary research uses information already collected, such as journal articles or published findings.
Using equipment that replicates job conditions and tasks helps people get used to them before they start working.
What is a job simulation?
What factors do you think can contribute to a high standard of living? What about a low standard of living?
Money and higher education contribute to a high standard of living and poverty, and less education contribute to a low standard of living.
What are the four types of unemployment?
cyclical, seasonal, frictional, and structural unemployment.
People who invest their own funds in a business in return for a stake in it.
What are angel investors?
Describe the two types of pricing strategies used in marketing.
Two pricing strategies are skimming and penetration pricing.
Skimming means setting a new product at a high price when competition is low.
Penetration pricing means setting a product at a low price to attract many customers and discourage competition.
What is the difference between non-binding and binding arbitration?
Non-binding arbitration is when a third party makes a decision; however, it's an opinion, so both parties don't have to follow it.
Binding arbitration is when a third party makes a decision, and both parties must cooperate and follow through on it.
What is free trade, and how does free trade affect businesses competing overseas?
Free trade is the movement of goods and services among nations without political or economic barriers.
This affects businesses overseas because, without political barriers, no one controls them, so businesses can take advantage of each other since things are run differently in different parts of the world.
Explain the difference between GDP and GNP.
GDP is the value of goods and services within a country, while GNP is the value of those goods and services within a country and outside the country.
People with unsatisfied needs and wants who have both the resources and the willingness to buy.
What is the Market?
Managing public attitudes and using communication to gain public understanding and acceptance.
What are public relations?
The process of figuring out workers' needs and then recruiting, selecting, training, developing, compensating, appraising, and scheduling employees.
What is Human Relations Management (HRM)?