Business and Economics Basics
Define Profit
The money businesses get to keep after paying off expenses. Profits are a measure of the value it creates in society.
What is the business model where one person is in charge? What is an advantage and disadvantage of that type of business.
Sole Proprietorship.
Advantage: You set your schedule, no boss, you keep all the profit.
Disadvantage: All the hard decisions fall on you, no one to help when you are overwhelmed.
Define an entrepreneur
Someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced.
What are the 4 P's in the marketing mix?
Product, Price, Promotion, Place
Explain the importance of marketing.
Helps to create brand awareness, drive profit and growth, acquire and retain customers, and enhance engagement.
Name 2 needs and 2 wants for a retail store like the Nike Outlet.
Needs: Store, Lights, Electricity
Wants: Fancy signs, mannequins, etc.
What do you absolutely need to start a partnership?
A written legal agreement.
List 3 of the steps to becoming an entrepreneur.
Have an idea, Identify a problem to solve, Have knowledge, Ensure financial stability, Have a passion, Be adaptable, Keep current and growing.
What message was this commercial trying to display and what is the persuasion technique?
A chevy will be with you a long time, appeals to emotion.
What is the most successful product from Shark Tank?
What is competition in business? Also, give me 2 examples of competition in Business.
Competition is when 2 or more business compete to sell a similar product or service.
Ex: CVS vs Walgreens or Popeyes vs Chick fil a
What is a franchise?
A business that was created for expanding an original business, but opening it in a new location, and where you are required to sell goods and services a certain way.
List 5 famous entrepreneurs and their business they created.
TBD
When wheaties puts an athlete on their box, what persuasion technique are they using?
List at least 3 sharks on the show "Shark Tank"
Mark Cuban, Kevin O'Leary (Mr. Wonderful), Barbara, Lori, Daymond
What are 3 types of resources?
Money, Labor, Materials
What is the difference between an LLC and sole proprietorship?
An LLC keeps your personal assets separate from your business.
What are the four different types of entrepreneurs?
Business, Social, Serial, Lifestyle
What is a medium?
A channel or system of communication.
If a company on Shark Tank is seeking $200,000 for a 6% equity. What are they evaluating their company at?
$3,333,333.33
What is the role of business in society?
To fulfill consumers unlimited wants and needs with limited resources.
Name all 6 types of businesses we discussed in this unit.
Sole proprietorship, Partnership, Corporation, LLC, Non-Profit, Franchise.
Which famous entrepreneur started Walmart?
Sam Walton
Slogan: A catchy phrase or statement often used to sell a service or a product
Repetition: The name of a product is repeated many times
Bandwagon: A statement suggesting that everyone is using a specific product, so you should too
Testimonial: A well-known person supports a product or service
Appeals to Emotion: A person is made to have strong feelings about a situation or product
Expert Opinion: Experts approve this product, so you should use it
Name the 7 steps in creating a new product to market.
Generate Ideas, Screen Ideas, Develop a business plan, develop the product, Test-Market the product, Introduce the product, evaluate customer acceptance.