Business Basics
Maya buys a video game as a birthday gift for her brother. Who is the customer and who is the consumer?
Maya = customer
Brother = consumer
What is the term for a physical or virtual space where buyers and sellers interact?
Market
Interest rates increase, making business loans more expensive. Which PESTEL factor?
Economic
Customers, suppliers, and the local community are what type of stakeholders?
External stakeholders
Which department would design and test a new version of a company's product?
Research & Development (R&D)
A movie theater installs reclining seats to make the experience more comfortable. Is this value creation or value capture?
Value creation
A local bakery is the ONLY bakery in town offering custom cakes delivered the same day. What business concept could this create?
Competitive advantage
A new law requires restaurants to provide paid sick leave. Which PESTEL factor?
Legal
A company discovers that one of its products has a small safety issue. Fixing it would be expensive, but continuing to sell it could harm customers. What type of situation is the company facing?
Ethical Dilemma
A company produces thousands of identical water bottles each day using an assembly line. What production method is this?
Mass production
After adding the reclining seats, the theater increases ticket prices by $3. Is this value creation or value capture?
Value capture
Starting an airline requires millions of dollars to purchase aircraft. What concept does this illustrate?
Barrier to entry
A company believes strongly in honesty, transparency, and treating customers fairly. What are these?
Core values
An owner wants to protect their personal assets from the debts of the business. Do they want limited or unlimited liability?
Limited liability
A student is considering a meal-prep service for high school athletes. She can survey 50 teachers, 75 athletes, or 100 random adults. Which group would provide the strongest evidence?
75 high school athletes
Students complain that there is nowhere near school to buy an inexpensive, healthy breakfast. A student opens a smoothie cart outside school before classes. What concept does this demonstrate?
Problem-solution fit
70%
Math:
90 + 50 = 140
140 ÷ 200 = 70%
A company is exceptionally good at designing batteries that last longer than its competitors' batteries. What is this?
Core competency
Jordan owns a business alone and is personally responsible for its debts. What business structure is this most likely?
Sole proprietorship
A hurricane shuts down a supplier's factory for two weeks. What type of business problem does this create?
Supply-chain disruption/risk
A student creates 10 basic versions of a new phone stand and gives them to potential customers for feedback before investing in full production. What does the basic version of the phone stand represent?
An MVP / Minimum Viable Product
A grocery chain buys enormous quantities from suppliers and uses large distribution centers to lower its cost per item. How could this give the company a competitive advantage?
Lower costs can allow it to offer lower prices / compete through low-price leadership
A nonprofit states: “We provide free tutoring and mentoring to students in underserved communities.” Is this a mission or vision statement, and why?
Mission...it describes what the organization currently does/who it serves.
A business wants to expand and must decide whether to use its savings or borrow $500,000. Which department would primarily analyze this decision?
Finance
A grocery store runs out of strawberries because the company that normally transports them from farms to stores has stopped deliveries. Which part of the supply chain has been disrupted?
Distributor or Distribution