Business Basics
This term refers to any activity that seeks to provide goods and services to others while operating at a profit.
What is business?
The branch of economics that looks at the behavior of people and organizations in particular markets.
What is microeconomics?
This function of management involves setting organizational goals and deciding how to achieve them.
What is planning?
The four Ps of marketing are product, price, place, and ____
What is promotion?
This financial statement shows what a company owns and owes at a specific point in time.
What is the balance sheet?
The people who stand to gain or lose by the policies and activities of a business are called ____.
Who are stakeholders?
In a free-market economy, prices are determined by this intersection of supply and demand..
What is the equilibrium point?
These managers are responsible for developing strategic plans and policies.
Who are top managers?
The process of dividing a total market into groups with similar characteristics.
What is market segmentation?
This formula is the foundation of accounting: Assets = ____ + Owners' Equity.
What are liabilities?
This type of organization uses business principles but does not seek to distribute profit.
What is a nonprofit organization?
An economy where some allocation of resources is made by the market and some by the government is called a ____.
What is a mixed economy?
The leadership style where a leader makes decisions without consulting others is called ______.
What is autocratic leadership?
The first step in the marketing research process.
What is defining the problem or opportunity?
Revenue - Cost of Goods Sold = _____.
What is gross profit?
Name one of the five factors of production that is not land, labor, capital, or entrepreneurship.
What is knowledge?
Name one key economic indicator used to measure the health of an economy.
What is GDP OR unemployment rate OR price indexes like CPI?
This is the type of skill that requires managers to be able to strategize and think creatively.
What are conceptual skills?
The group of customers a business aims its marketing efforts toward is called the _____.
What is the target market?
Assets are categorized in a balance sheet based on this.
What is liquidity?
The combination of the economic, technological, competitive, social, and global environments is called the ____.
What is the business environment?
This economic system, associated with Karl Marx, calls for the government to make almost all economic decisions.
What is communism?
In this type of planning, managers plan the day-to-day activities of the business.
What is operational planning?
Consumers are relying on this when they look up to role models and influencers when making purchasing decisions.
What is a reference group?
This is what we refer to as income that has been reinvested back into the firm, rather than being distributed to the owners.
What are retained earnings?