Economic Principles
High production of G&S’s, relatively low unemployment levels, wages are strong, money spent on property, lots of imported goods, world economic partners prospering
What is the PEAK phase of the business cycle?
A business owned by two or more people
What is a Partnership?
The part of your business plan that gives the basics and background of your business. It’s the foundation on which you will build the rest of your business plan (two words).
What is the Company Overview?
This answers what will success look like in the future (two words)
What is a Vision Statement?
Smart, Measurable, Achievable, Realistic, Timely
What are SMART goals?
A person who recognizes a business opportunity as they organize, manage and assume the risks of starting and operating a business.
Who is an Entrepreneur?
The leftover funds after a business has paid all of the costs they incur through trade.
What is profit?
A “luxury” item you don’t need for survival (one word)
What is a Want?
Something you must have in order to survive (one word)
What is a Need?
Individuals who own their own business.
Who is a Sole Proprietor?
Any commercial activity that seeks profit by providing goods or services to others in exchange for money (barter?)
What is a Business?
Physical products which are sold to consumers AND tasks businesses perform for customers for a fee (two words)
What are Goods & Services?
Persistent, Risk-taking, Self-confident, Restless, Goal-oriented, Action-oriented, Responsible, Self-demanding, Creative, Independent, Inquisitive, Enthusiastic (a phrase)
What are the Twelve Characteristics of an Entrepreneur?
Considering types of businesses, this has limited liability.
What is a Corporation?
An extended economic recession. High unemployment. Wages drop.
What is the Trough phase of the business cycle?
A decline in economic activity, wages drop, higher unemployment, business start to produce less.
What is the Recession phase of the business cycle?
The marketing statement you use to sell your products and services to prospective customers.
What is the Unique Selling Proposition (USP)?
Production starts to increase, new businesses open which leads to more jobs & increased production
What is the Recovery phase of the Business Cycle?
Identify the problem, gather information, consider the consequences, choose a path, evaluate results (three words)
What is the Decision Making Process?
Why your organization is in business and what you are hoping to achieve.
What is a Mission Statement?
What is important to you, as a company, apart from making money?
What are your Values?
Used to explain to investors and/or banks to gain start-up funds.
What is a Business Plan?
How will you meet your goals?
What is a Growth Plan?
A market economy is NOT static. It’s Dynamic. Economies have ups and downs. Over time, these form patterns of repetitive occurrences.
What is the Business Cycle?
Helps you to step back and think objectively about the key elements of your business and informs your decision making as you move forward.
What is a Business Plan?