CH, 1, 2, 3, 6, 7, 11, 12, 13 Flashcards
4 Factors of Production
Natural resources, capital, human resources, entrepreneurship
Balance of payments
A measure of the total flow of money into or out of the country
Balance of trade
A basic measure of all the difference in value between a nation’s exports and imports, including both goods and services
Board of directors
The individuals who are elected by stock-holders of a corporation to represent their interests
Branding
A products identity-including product name, symbol, design, reputation, and image-that sets it apart from other players in the same category
Budget deficit
Shortfall that occurs when expenses are higher than revenue over a given period of time
Budget surplus
Overage that occurs when revenue is higher than expenses over a given period of time
Business plan
A formal document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives
Business products
Products purchased to use either directly or indirectly in the production of other products
Consumer products
Products purchased for personal use or consumption
Corporation
A form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners
Countertrade
International trade that involves the barter of products for products rather than for currency
Demand
The quantity of products that consumers are willing to buy at different market prices
Direct channel
A distribution process that links the producer and the customer with no intermediaries
Distribution strategy
A plan for delivering the right product to the right person at the right place at the right time
Economic environment
refers to all those economic factors, which have a bearing on the functioning of a business. Business depends on the economic environment for all the needed inputs. It also depends on the economic environment to sell the finished goods. Naturally, the dependence of business on the economic environment is total and is not surprising because, as it is rightly said, business is one unit of the total economy.
Entrepreneur
People who risk their time, money, and other resources to start and manage a business
Entrepreneurial traits/characteristics V-E-TU-SR-C-TF
Vision, energy, tolerance of uncertainty, self-reliance, confidence, tolerance of failure. V-E-TU-SR-C-TF
Exports
Selling products in foreign nations that have been produced or grown domestically
Fiscal policy
Government efforts to influence the economy through taxation and spending
Franchise
A licensing agreement under which a franchisor allows franchisees to use its name, trademark, products, business methods, and other property in exchange for monetary payments and other considerations
Global trade
the exchange of capital, goods, and services across international borders or territories
Horizontal merger
A combination of two firms that are in the same industry
Inseparability
to describe a key quality of services as distinct from goods
Integrated marketing approach
The coordination of marketing messages through every promotional vehicle to communicate a unified impression about a product
Intensive distribution
Involves placing your products in as many stores as possible (or placing your stores themselves in as many locations as possible)
LLC
A limited liability company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate structures. An LLC is not a corporation; it is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions.
Market niche
A small segment of the market with fewer competitors than the market as a whole. Market niches tend to be quite attracted to small firms
Market research
The process of gathering, interpreting, and applying information to uncover marketing opportunities and challenges, and to make better marketing decisions
Marketing mix
The blend of marketing strategies for product, price, distribution, and promotion
Monopolistic competition
A market structure with many competitors selling differentiated products. Barriers to entry are low
Monetary policy
Federal Reserve decisions that shape the economy by influencing interest rates and the supply of money
Net loss
The result that occurs when expenses exceed the income or total revenue produced for a given period of time. For tax purposes, net losses in one time period can be used to counteract the income/gains generated in another time period
Net profit
a measure of the profitability of a venture after accounting for all costs
Nonstore retailers
A growing number of sales go through other channels or nonstore retailers. The key players represent online retailing, direct-response retailing, direct selling, and vending
Nonprofit corporation
A corporation that does not seek to earn a profit and differs in several fundamental respects from C corporations
Opportunity cost
The opportunity of giving up the second-best choice when making a decision
Partnership
A voluntary agreement under which two or more people act as co-owners of a business for profit
Personal selling
The person-to-person presentation of products to a potential buyer or buyers
Place Utility
Offering products at the right place
Promotion strategy
Includes all of the ways that marketers communicate about their products. Key elements today include advertising, personal selling, sales promotion, public relations, word-of-mouth, and product placement
Publicity
Unpaid stories in the media that influence perceptions about a company or its products
Selective distribution
Means placing your products only with preferred retailers (or establishing your stores only in the limited locations)
Sole proprietorship
A form of business ownership with a single owner who usually actively manages the company
Supply
The quantity of products that producers are willing to offer for sale at different market prices
Supply chain management (SCM)
Planning and coordinating the movement of products along the supply chain, from the raw materials to the final consumers
Trade deficit
Shortfall that occurs when the total value of the nations imports is higher than the total value of its exports
Trade surplus
Overage that occurs when the total value of the nation’s exports is higher than the total value of its imports
Unsought products
Are the goods and services that hold little interest (or even negative interest) for consumers. Price and distribution vary widely, but promotion tends to be aggressive to drum up consumer interest. Disability insurance, prepaid burial plots, and blood donations are some examples
Wheel of retailing
A classic distribution theory that suggests that retail firms and retail categories become more upscale as they go through their lifecycles
Wholesalers
Distributors that buy products from producers and sell them to other businesses or non-final users such as hospitals, nonprofits, and the government
2010 entrepreneurship rates
7.6%
Category killer
Dominates it’s category by offering a huge variety of one type of product. Example-OfficeMax, Best Buy, Staples
Department stores
Offers a wide variety of merchandise. Example-clothes, furniture, cosmetics. Nordstrom, Macy’s, JCPenney
Economics
The study of the choices that people, companies, and governments make in allocating societies resources
Macroeconomics
The study of a country’s overall economic dynamics, such as the unemployment rate, the gross domestic product, and taxation policies
Microeconomics
The study of smaller economic units such as individual consumers, families, and individual businesses
GDP
Gross Domestic Product
form utility
Turning inputs into finished goods
time utility
Providing products at the right time
ownership utility
Providing credit, cashing checking, delivering products
