Business Exam Review Flashcards
Democratic
Employees contribute to the decision making process
Provide input, information, and creativity
Encouraging staff feeling of value
Most effective leadership
Autocratic
Takes control of situation (employees don’t participate)
Works when decision must be made quickly
Makes employees feel undervalued
Laissez-fair
Leaves employees alone
Good for when they are mature and have years of experience, not good for new workers
Investing
Expend money with the expectation of achieving profit or a material result by putting it into something
Fiscal year
One year period that companies and governments use for financial reporting and budgeting
Accounting purposes to prepare financial statements
Saving
Income not spent, put aside
Assets
Any resource owned by the business, has economic value and can provide a future benefit
Credit
Either decreases assets or increases liabilities or equity in a company’s balance sheet
What are the stages of the product life cycle
Introduction, growth, maturity, decline, decision point
Target market
Particular group of consumers at which a product or service is aimed
(Age, gender, income, etc.)
Product
The quality, design or features that make people want it
Price sensitivity
The changes in customer demand as a price changes
Based on factors such as competition, economic environment, or demand
Sales affected by price
Ways to introduce new prices
Add value
Introduce ahead of time
Add a deal
Direct
Business makes the product and sells it directly to the consumer
Indirect
Business sells to a retailer who then sells it to the consumer.
Retailers add to the original cost
