Business Basics
What is an executive summary?
A short intro that explains the who, what, where, when, why, and how of your business
What is the balance sheet equation?
Assets = Liabilities + Owner’s Equity
What is the goal of advertising?
To increase awareness of a product or brand
What is a pure risk?
A risk that only results in loss (ex: natural disasters)
Which type of business typically has a global customer base?
Online business
What four items go in the appendix of a business plan?
Permits, resumes, research, charts/graphs
What is inventory?
Products or materials a business plans to sell
What is customer loyalty?
When customers return to your brand over and over again
What should you do if you experience sexual harassment at work?
Report it to your manager and follow procedure
What’s one big cost for brick-and-mortar businesses that online ones often avoid?
Rent or utilities
What are 4 examples of start-up costs?
Equipment, marketing, inventory, licenses/permits
What is pro forma in business?
A financial forecast showing estimated income/expenses
Give one example of emotional buying and one of rational buying.
Emotional: Buying a product because it’s trending;
Rational: Comparing prices and features before buying
What’s speculative risk? Give an example.
Risk that could go well or badly—ex: launching a new product
Which business type typically requires more staff, and why?
Brick-and-mortar: because they need in-person help
What’s the purpose of a mission statement?
To explain the goals and values of your business
What is equity in a business?
Ownership value in the company
What is market research and why is it important?
It helps you understand your customers and their needs
What’s a conflict with business ethics?
Lying about product quality, mistreating workers, etc.
What’s one similarity shared by both types of businesses?
Both need to manage money, attract customers, and plan their business
What six questions (5W1H) does an executive summary answer?
Who, What, Where, When, Why, How
Explain the difference between debt capital and equity capital.
Debt is borrowed money (loan), equity is your own or investor funding
Name and describe 2 types of research: primary and secondary.
Primary = surveys, interviews; Secondary = articles, reports
What’s a natural risk? What can a business do to prepare for it?
Risk from nature (earthquake, flood); preparation: insurance, backup systems
Essay-style: Which would YOU choose and why? Mention staffing, inventory, customer base, and profit.
Student must justify their choice with examples from class content