Business 101
What does COGS stand for?
Cost of Goods Sold
What are three questions a business economic system must answer?
1. What to produce?
2. How to produce?
3. For whom to produce?
List 5 traits of entreprenuership.
I.e. passion, risk-taking, vision and strategic thinking, curiosity, resilience, persistance, communication skills, leadership, self motivation, discipline, etc.
What is business?
An organization that sells goods or servides in an attempt to earn profit.
What are the four main economic systems?
Traditional, command, market, and mixed.
What part of a business plan do you need to present to Sharks in Shark Tank?
Executive Summary
What is the difference between profit and revenue?
Revenue is total income while profit is revenue minus COGS and expenses.
What is inflation? List the three types of inflation.
Inflation is the general increase in prices over time, reducing the purchasing power of money.
The three types are demand-pull inflation, cost-push inflationm, and built-in inflation.
What is a market campaign?
A series of promotional activites designed to advertise over a set period of time- not just once.
What are business legal formations? List three examples
They are business structures that help understand how businesses are legally structured and how economic principles shape decisions. Three examples could be: Sole Propritetorship, General Partnership, Limited Partnership, Limited Liability Companies, S. Corporations, and C, Corporations
What happens during the expansion phase?
GDP rises, hiring increasing.
What is an organization chart used for in a business plan?
An organization chart in a business plan visually maps your company's structure, showing reporting lines, roles, and responsibilities, which clarifies the chain of command, helps stakeholders understand how decisions are made, and demonstrates a clear plan for staffing and management to potential investors or partners, proving you've thought through how the business will operate and grow.
What are the four phases of a business cycle? How can a recession affect the cycle?
The four phases are Expansion, peak, contraction, and trough. A recession is a contraction that lasts longer than 6 months. (EX: 2008 Financial Crisis)
Explain the difference between a movement along the demand curve and a shift of the demand curve.
A movement along the demand curve (change in quantity demanded) happens only due to a change in the product's own price, causing a slide up or down the existing curve; a shift of the demand curve (change in demand) occurs when non-price factors like income, tastes, or prices of related goods change, moving the entire curve left (decrease) or right (increase).
What's the difference between a market analysis and a competitve analysis in a business plan?
A market analysis defines the broader landscape (customers, demand, trends, size) for your product/service, while a competitive analysis is a deep dive within that market, focusing specifically on the strengths, weaknesses, strategies, and offerings of your direct and indirect rivals to find your unique advantage.