Unit 1:Introduction to Business
What is the difference between a good and a service?
A good is something physical you can touch, while a service is something done for a fee
what is importing?
buying a product from another country
What are the 3 categories in a private sector?
Producers (create), intermediaries (sell), service businesses (do)
What are the 3 categories of product?
feature, usage, protection
What are the four finanace functions?
Management, record keeping, planning, analyzing
What is the difference between a need and a want?
A need is something you need to survive; a want is something you would like to have but do not need to survive.
What is exporting?
Selling products to another country
What are the types of customers?
Business to business (b2b)
Business to consumer (b2c)
Government and institutions
what is the price formula
cost + markeup = selling price
What is the accounting equation
Assests=liabilities+owners equity
What are the 5 types of utilities?
BONUS 200 points: list an example of each type of utility.
Form, Information, Place, Time, and Possession
Form: Bisquick bottle, bicycle parts, kcup
Information: Menus, ingredients, instructions on the cakemix box
Time: banks 24 hours, McDonald's
Place: Location, Walgreens
possession: drive-thrus, delivery, curbside.
define domestic
making, buying and selling good within a country
What are the 3 forms of ownership?
sole priprietorship, partnership, corporation
what are the 6 modes of transportation?
planes, railroads, trucks, pipelines, digital, boats/ships
What are another term for assets, liabilities, owners equity?
Owns, Owes, Worth
What are the 4 factors of production?
BONUS POINTS: Examples of each
Land, Labor, Capital, Entrepreneurship
Land: Soil, rocks, minerals, etc
Labor: Employees
Capital: tools, buildings, lights, etc
Entrepreneurship: someone beginning a business
Define foreign
all goods and services made outside the country
Which form of ownership has limited liability?
Corporation
What are the 4 categories in the promotional mix?
Advertising, sales promotion, personal selling, public relations
What is revenue and give and example?
Income, any sales
What are the 3 economic systems?
BONUS: Define each
Command, Market, Traditional
Command: Government controlling
Traditional: Culture impacting
Market: no regulation
what is an exhange rate?
the value of a currency in one country compared with the value in another.
What are the types of businesses?
For profit, not for profit, public sector, private sector
For Profit - $ to owners
Not for profit - $ to public cause
Public sector - owned by the government funded by tax dollars
Private - ran by individuals
What are the two categories of advertising? list some examples of each.
traditional: billboards, magazines, etc
Digital: Social Media, commericials, email, etc
What is an expense and give and example?
A cost of a business, equipement, ingredients, etc