Business Basics
What are the 6 types of businesses?
Producers, Processors, Manufacturers, Intermediaries, Service Firms, Non profits
What is the accounting equation?
Assets = Liabilities + Owner’s Equity
What are the 4 forms of business ownership?
Sole Proprietorship, Partnership, Corporation, Franchise
What are the 4 P’s of the Marketing Mix?
Product, Price, Place, Promotion
What are the 4 steps in the employment process?
Recruitment, Selection, Training, Evaluation
What are the 4 stages of the business cycle?
Expansion, Peak, Contraction, Trough
What are the two main types of financial statements?
Balance Sheet and Income Statement
What is the simplest form of business ownership?
Sole Proprietorship
What’s the difference between intrinsic and extrinsic motivation?
Intrinsic: internal (passion, pride); Extrinsic: external (money, rewards)
What department handles hiring and onboarding?
Human Resources (aka: HR)
What are the factors of production?
Land, Labor, Capital, Entrepreneurship
What is the difference between equity capital and debt capital?
Equity: money from investors; Debt: borrowed money that must be repaid
What does an LLC protect business owners from?
Personal liability for business debts
What is the goal of promotion in marketing?
To inform, persuade, and remind customers about products
What are the 5 levels of Maslow’s Hierarchy of Needs?
Physiological, Safety, Love/Belonging, Esteem, Self-Actualization
What is a bond?
A loan made by an investor to a business or government, repaid with interest
What is the difference between short-term and long-term loans?
Short-term: less than a year; Long-term: over one year
Name one required step in the business registration process.
Register business name, file paperwork with state, apply for licenses, etc.
Give one example of an emotional marketing strategy.
Using stories, images, or messages that create strong feelings (joy, fear, pride, etc.)
Which department is responsible for supervising operations and decision-making?
Management
What is a stock?
A share of ownership in a company that may earn dividends or increase in value
What type of capital involves giving up part ownership of the business?
Equity capital
What’s the difference between a corporation and a franchise?
Corporation: independent company with shareholders; Franchise: operates under another company’s brand/business model
How can businesses use “place” effectively in their marketing mix?
By choosing where/how to sell (online, retail, direct-to-consumer, etc.) to reach target markets
Why is motivation important in business?
It improves employee performance, satisfaction, and productivity