Business Basics
Something you must have to survive is called a _____.
Need
Money a business earns is called what?
Revenue
McDonald’s and Burger King are what type of competitors?
Direct competitors
What type of business makes products to sell to other businesses or customers?
Manufacturer
What does owning a stock mean?
You own a small piece of a company.
Something you would like to have but can live without is called a _____.
Want
Money a business spends to operate is called what?
Expenses
A movie theater and bowling alley are what type of competitors?
Indirect competitors
What type of business provides work or skills instead of a physical product?
Service business
What is the group of letters used to identify a company's stock?
Ticker symbol
What is the difference between a good and a service?
A good is a physical product; a service is work performed for someone.
Money left after paying expenses is called what?
Profit
What is a competitive advantage?
Something a business does better or differently than competitors.
What type of business buys products and sells them directly to customers?
Retail business
Name the two major U.S. stock exchanges we learned about.
NYSE & NASDAQ
A person who buys goods or services is called what?
Consumer
What is the formula for profit?
Revenue − Expenses = Profit
Target offers free same-day pickup while a competitor does not. What could Target's competitive advantage be?
Convenience/free same-day pickup OR TIME
What type of business mainly sells products or services online?
E-commerce business
What are the S&P 500 and Dow Jones examples of?
Stock market indexes
A person or business that creates or provides goods or services is called what?
Producer
A business earns $9,500 and has $6,000 in expenses. What is its profit?
$3,500
Two pizza restaurants sell similar food at similar prices. One guarantees delivery in 20 minutes, while the other takes 45 minutes. What does the first restaurant have that could help it attract more customers?
A competitive advantage — faster delivery.
Nike designs and produces sneakers, Amazon sells products online, and a hair salon cuts hair. What type of business is each?
Nike: Manufacturer; Amazon: E-commerce; Hair salon: Service
Why is spreading out your money across companies important when investing?
It spreads out risk instead of putting all your money in one investment.