Business Basics
What is a business?
An organization that provides goods or services to make a profit.
What is a market economy?
An economic system where businesses and consumers make economic decisions with little government involvement.
What are the 4Ps of the marketing mix?
Product, Price, Place, Promotion.
What is a partnership?
A business owned by two or more people.
What are goods?
Physical items that can be bought and sold.
What is a sole proprietorship?
A business owned and operated by one person.
What is a command economy?
An economy where the government makes all economic decisions.
What is promotion?
The way a business communicates with customers to encourage sales.
What does limited liability mean?
Owners are only responsible for the amount they invested in the business, not personal assets.
What are services?
Actions or tasks performed for a customer, like haircuts or car repairs.
What is a corporation?
A business that is legally separate from its owners and offers limited liability.
What is a mixed economy?
An economic system that combines elements of both command and market economies.
What is pricing?
The process of determining how much a product will cost.
What does the Small Business Administration (SBA) do?
Provides resources, loans, and support to small businesses.
What is product/service management?
Developing and improving a product to meet customer needs.
What is a competitive advantage?
A unique feature that allows a business to outperform its competitors.
What is a monopoly?
A market structure where one company controls an entire industry.
What is marketing information management?
The process of gathering and analyzing data to make marketing decisions.
What is non-price competition?
When businesses compete based on factors other than price, like quality or branding.
What is selling?
Directly communicating with customers to persuade them to buy a product.
What is unlimited liability?
When a business owner is personally responsible for all debts of the business.
What is the Sherman Anti-Trust Act?
A law that prevents monopolies and promotes fair competition in business.
What are the 7 functions of marketing?
Pricing, Promotion, Selling, Distribution, Product/Service Management, Financing, and Marketing Information Management.
What is an entrepreneur?
A person who starts and runs their own business.
What is distribution?
The process of getting a product from the manufacturer to the consumer.