Business exam one Flashcards
A person, partnership, or corporation that seeks to provide goods and services to others at a profit
Business
The chance an individual or organization takes of losing time and money on a business that may not prove profitable
Risk
The amount of money a business earns above and beyond what it spends for goods, services, salaries, and other expenses
Profit
When a business’s expenses are more than its revenues
Loss
List the types of business environments
- economic and legal
- technological
- competitive
- social
What does economic and legal environment cover
- unemployment and interest rates
- laws and regulations
- freedom of ownership
- tradable currency
- elimination of corruption
What does technological environment cover
- information technology
- databases
- bar codes
- Internet
- social networking
What does competitive environment cover
- customer service
- value
- employee empowerment
What does the social environment cover
- diversity
- demographic changes
- family changes
Ways in which the government can encourage business development
- providing tax incentives
- establishing a tradable currency
- permitting the ownership of business
- minimizing corruption
- loosing restrictions on commerce
Any people or organizations who stand to gain or loss from the activities of a business
Stakeholders
Strategies firms must use in order to be successful in a business competition
Still need answer
Identify groups that are considered stakeholders
Still need answer
The study of how individuals and society choose to use scarce resources to produce goods and services and distribute them for consumption
Economics
A phrase coined by Adam smith to describe the process that turns self-directed gain into social and economic benefits for all.
Invisible hand
The quantity of products people are willing and able to buy at different prices at a specific time
Demand
The quality of products manufactures or owners are willing to sell at different prices at a specific time
Supply
Explain the relationship between price supply and demand
Still need answer
Distinguish between free markets, socialism and communism
Still need answer
Entrepreneurial qualities
- self-directed
- self-nurturing
- action-oriented
- highly energetic
- tolerant of uncertainty
- drive to succeed
- perserverence
Why do people become entrepreneurs
- opportunity
- profit
- independence
- total business involvement
- challenge
- flexibility
- the chance to make a difference
What is the role of the board of directors
Group is responsible for the decisions of a business
Describe the different parts of business ownership (sole porprietership ect) and the pros and cons of them
Need answer
A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition and the qualifications of the owner(s)
Business plan
The process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational needs
Marketing
The process of finding small but profitable market segments and creating products for them
Niche marketing
Selecting which market segments an organization can profitably serve.
Target marketing
A marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements
Relationship marketing
The creation of real or perceived product differences.
Product differentiation
A set of marketing intermediaries, such as wholesalers and retailers that join together to transport and store foods in their path( or channel) from producers to consumers.
Channel of distribution
Figure 4.11 examples of distribution channels for consumer and industrial goods
Need to draw on notecards
The combination of promotional tools and organization uses.
Promotion mix
Everything consumers evaluate when deciding whether to purchase a good or service
Total product offer
A theoretical model of what happens to sales and profits for a product class over time
Product life cycle
