Economics
Describe goods and services.
Goods are a physical product whereas services are when something is done for you.
The pricing strategy that includes a variety of goods or services for one price.
Bundling pricing
The type of financing in which the owner uses their own savings to fund their business
Bootstrapping
The name for the group of people most likely to buy your product
Target market
A business that does something for the customer
A service business
What is the law of demand?
When price increases, you buy less.
When price decreases, you buy more.
B2B
The quantity of output produced associated with zero profit (revenues = costs).
Breakeven point
The document that provides very detailed information about the proposed business that includes information about marketing, target market, products, pricing strategy, organizational structure, etc.
Business plan
A business owned by a single owner with unlimited liability
Sole proprietorship
Describe wants and needs.
Wants are something that improves your quality of life but isn't needed for survival.
Needs are required for survival.
The term for a business selling to a consumer.
B2C
Funding by using a platform to get contributions from the public.
Crowdfunding
A clear statement of why the business exists and its purpose
Mission statement
A business owned by two or more people with unlimited liability
Partnership
What is scarcity?
Limited supply of something.
The pricing strategy to enter a market and attempt to steal customers from competition.
Penetration pricing
The financial statement that has assets, liabilities, and equity
Balance sheet
A statement that describes where owners want the business to be in the future; the business's long term purpose
Vision statement
A type of ownership with many owners, limited liability and avoids double taxation
S corporation
What is a market economy?
When consumers and producers decide what is produced, how it is produced and who gets the goods and services.
The pricing strategy in which price is based on the benefits provided to the consumer.
Value based pricing
The financial statement that shows revenues, expense, gross profit and net income.
Income statement
A one page description of the businesses purpose, target market, competition, etc.
Business model canvas
A type of ownership that can be one or more people and has limited liability
Limited liability corporation or LLC