Business of A&C: Basic Principles of Business

Question 1

Business

Answer 1

An organization or entity engaged in the production, sale, or exchange of goods and services with the goal of making a profit.

Question 2

Entrepreneur

Answer 2

An individual who starts and operates a business, taking on financial risks in the hope of making a profit.

Question 3

Market

Answer 3

The place or platform where buyers and sellers interact to exchange goods, services, or information.

Question 4

Supply and Demand

Answer 4

The economic concept that describes how the availability of a product or service (supply) and the desire for that product or service (demand) influence its price.

Question 5

Profit

Answer 5

The positive financial gain a business makes after deducting all expenses from its revenue.

Question 6

Revenue

Answer 6

The total income generated from sales of goods, services, or other sources

Question 7

Expenses

Answer 7

The costs incurred in running a business, including overhead, salaries, materials, and other operational costs

Question 8

Business Plan

Answer 8

A detailed document outlining the goals, strategies, and operational plans of a business, often created for attracting investors or guiding business growth

Question 9

Marketing

Answer 9

The process of promoting and selling products or services, including activities like advertising, market research, and branding

Question 10

Supply Chain

Answer 10

The network of organizations, people, activities, information, and resources involved in producing and distributing goods and services to customers

Question 11

E-Commerce

Answer 11

The buying and selling of goods and services over the internet, encompassing activities such as online shopping and electronic payments

Question 12

Branding

Answer 12

The creation of a unique image, name, or symbol that identifies and distinguishes a product, service, or company from others in the market

Question 13

Human Resources

Answer 13

The department responsible for managing employee-related matters, including recruitment, training, benefits, and performance evaluations

Question 14

Financial Statements

Answer 14

Reports that provide an overview of a business’s financial performance, including the balance sheet, income statement, and cash flow statement

Question 15

Budget

Answer 15

A detailed financial plan that outlines expected income and expenses over a specific period, often used as a guideline for managing finances

Question 16

Market Segmentation

Answer 16

The process of dividing a market into distinct groups based on characteristics such as demographics, psychographics, and behavior, to target specific consumer segments effectively

Question 17

Pricing Strategy

Answer 17

The approach a business takes to determine the price of its products or services, often influenced by factors like cost, competition, and perceived value

Question 18

Business Ethics

Answer 18

The principles and values that guide the behavior and decision-making of a business, ensuring honesty, integrity, and social responsibility

Question 19

Networking

Answer 19

Building and maintaining relationships with other professionals, clients, customers, and industry contacts to gather information, exchange ideas, and foster business opportunities

Question 20

Intellectual Property

Answer 20

Legal rights that protect creations of the mind, such as inventions, literary and artistic works, symbols, names, and designs used in commerce

Question 21

Diversification

Answer 21

Spreading investments, products, or services across different industries, markets, or assets to reduce risk and achieve a more balanced portfolio