Financial Literacy & Planning
What is the difference between a Need and a Want? Give an example of each
A need is something that we cannot live without and a want is something that is nice to have but we can live without them.
What is the accounting equation?
Assets = Liabilities + Owners Equity
Define Supply and Demand
Supply - quantity of a good/service that producers offer for sale at various prices at a given time
Demand - quantity of a good/service that consumers want to buy at various prices at a given time
What are 3 examples of traits an entrepreneur should possess?
Any 3 out of this 6.
Curiosity
Problem-solving
Creativity
Resilience
Adaptability
Calculated Risk-taking
What are the 4P's?
Product, Price, Promotion, Place
What is the formula for net cashflow?
Net cashflow = total inflows - total outflows
What is the difference between goods and services? Give an example for a Hybrid.
Goods are tangible products that can be kept/used whereas services are actions, skills and experiences given to customers. (accept any relevant answers for hybrid)
What is the purpose of SWOT Analysis?
It helps a business assess its internal/external factors to understand its current situation and make informed, smarter business decisions.
What is an executive summary?
A short-written overview/one-page summary of a business idea highlighting key information so that investors and stakeholders can grasp the concept of the business quickly.
What is Digital Marketing?
Digital Marketing is the practice of promoting/advertising products online using digital platforms.
What is the abbreviated form of SMART goals
S - Specific
M - Measurable
A - Achievable
R - Relevant
T - Time-Bound
What are the 3 types of business models?
Manufacturing
Trading/Merchandising
Services
What is the abbreviated form of PESTLE?
Political
Economic
Social
Technological
Legal
Environmental
What is an example of an opportunity signal?
Any 1 of these 5:
Frustrations, Inefficiencies, Unmet Needs, Changes and Trends, Things that could be Improved
What is an advantage of small business using digital marketing instead of traditional marketing?
Small businesses often lack the money for expensive ads like TV, billboards, or posters, so digital marketing gives them a low-cost way to reach new customers, interact directly with their audience, and grow using only a small budget.
What is the difference between simple and compound interest?
- Simple interest is always calculated on the original principal amount
- Compound interest is calculated on the original amount + previous interest.
What is the difference between fixed costs and variable costs?
Fixed costs do not change no matter how much a business produces/sells their products
Variable costs changes depending on how much the business produces/sells (e.g packaging)
What is Market Equilibrium?
Market Equilibrium is the point where quantity demanded equals to quantity supplied.
What are the 6 steps of the Design Thinking process?
Understand -> Define -> Ideate -> Prototype -> Test -> Improve
Why is branding important to a business?
Branding is important because it gives a business a unique identity that helps it stand out, build trust, and attract loyal customers.
How to calculate debt-to-asset ratio?
debt-to-asset ratio = total liabilities/total asset x 100% or total debt/total assets x 100%
Name all 3 factors used to evaluate business performance
Profitability
Liquidity
Debt vs Equity
What is the purpose and abbreviated form of TENPF?
TENPF are factors that can increase or decrease supply.
T - Technology
E - Expectations
N - Number of sellers
P - Profitability
F - Factors of Production
What should be included in a Business Pitch?
Hook, Problem, Solution, Target Audience, USP, CTA
What is an example of a metric we can use to determine the success of marketing for a business?
Any of 1 of these 5:
Reach, Engagement, Clicks, Conversions, Follower Growth