Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Bus201 > Ch1 > Flashcards

Ch1 Flashcards

1
Q

Not for profit organization

A

Organization that exists to achieve some other goal other than the usual business goal of profit. They do not compete directly with another organization. Instead they seek talented employees, volunteer time, and donations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Factors of production

A

The building blocks of a business:

  • labour
  • natural resources
  • capital
  • entrepreneur
  • knowledge
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Profit

A

Money left over after all other costs are paid
Costs> revenue= loss
Revenue> costs= profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Goods

A

Tangible items manufactured by a business

Eg. Laptops

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Supply chain

A

Raw materials -> processing -> producers -> wholesalers/distributors -> retailers -> end consumer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Business

A

Organization that strives for profit by providing goods and services desired by its customers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Labour

A

Economic contributions of the mind and muscles. Everyone’s own talents.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Capital

A

Machinery, tools, buildings, equipment. Does not include MONEY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Entrepreneurs

A

Ppl who combine labour, capital, and natural resources to produce goods and services with either the intention of making a profit or accomplishing a not for profit goal.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Knowledge

A

Refers to the combines skills and talents of the workforce which lead to economic growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Services

A

Intangible offerings of businesses that cannot be held, touched, or stored.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Product

A

Benefits and attributes that create value for the customer
Tangible: packaging/ warranties
Intangible: symbolic, meaning of brand image

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Convenience products

A

Inexpensive products that require little shopping effort and are bought constantly
Eg. Bread, soft drinks
Little to minimal effort

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Specialty products

A

Customers search long and hard for these products. There are limited sellers. Customers are willing to spend as much time and effort to find the product.
Eg. Gourmet restaurant, expensive jewelry, one of a kind car.
Maximum effort

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q
  1. Consumer nondurables
    Vs
  2. Consumer durables
A
  1. Get used up quickly: shampoo and chips

2. Last a long time: laptops and washing machines

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Consumer products

A

Packages of benefits that deliver value- always tangible and intangible attributes of a product: unsought, convenience, shopping, specialty.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Shopping products

A

Bought after brand and store comparison of price, stability, and style. Can take up to months or years to purchase.
Eg. Car, house, vacay
Considerable effort

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Unsought products

A

Was not a planned purchase. Buyer does not actively seek the product.
Eg. Life insurance
Some to considerable effort

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

How is the standard of living measured in many countries?

A

Measured by the output of goods and services people can buy with the income they have. Important to rmr that just because the wages in some countries are higher it does not mean that the standard of living is higher. Higher wages= more money you give back to the government in taxes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Revenue

A

Money a company makes by providing services or selling goods to its customers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What types of organizations do businesses serve?

A

Retailers, government, hospitals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Costs

A

Expenses for rent, salaries, supplies, transportation, and many other items incurred from creating and selling goods and services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Natural resources

A

Farmland, forests, oil deposits, minerals, water

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Similarities between NFP and for profit

A

Developing strategy, measuring performance, encouraging innovation, budgeting carefully, improving productivity, demonstrating accountability, and fostering an ethical workplace environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Business products

A

Products bought by institutions and business for use in making other products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Installations

A

Large, expensive capital items that
determine the nature, scope, and efficiency of a
company.
Eg. Factory
Long negotiations, significant planning, expert advice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Accessories

A

Not the same long run impact on a firm as installations. They are less expensive and more standardized.
Eg. Computers
Brand name products, personal selling, service agreements.

28
Q

Component parts and materials

A

Items which are built into end products. Some components can be custom made while others are standardized for sale to many industrial users.
Eg. Computer chips
Contact or supply agreement, may be a quick purchase, competitive pricing

29
Q

Raw materials

A

Expense items that have undergone little or no processing and are used to create a final product
Eg. Lumber
Contract or supply agreement, may be quick purchase, competitive pricing

30
Q

Supplies

A

Do not become part of the final product. They are brought up routinely and in fairly large quantities.
Eg, pencils
Routine items, little impact on a company’s profit

31
Q
  1. Capital products
    Vs
  2. Expense items
A
  1. Large expensive items with a long life span
    Eg. Airplanes
  2. Small, less expensive products that have a life span of less than a year.
32
Q

Three main forms of a business

A

Corporations, Partnerships, Sole Proprietorship

33
Q

Sole Proprietorship

A

Are single person firms, most popular but relatively small in terms of revenue and profit.

34
Q

Sole Proprietorship advantages and disadvantages

A

Advantages: easy and inexpensive, few legal requirements, profits go to the owner, owner has direct control of the business, not required to consult with others when making decisions, fewer government controls, profits are taxed as owners personal income, easy to close the business
Disadvantages: unlimited liability, you can lose anything you own if there is a claim against your business, difficult to raise capital since assets are personal, owner relies on funds to start up, limited experience; gaps in knowledge and skills, harder to find employees, time consuming and unstable, when owner dies business is shut down.

35
Q

Partnership

A

Two or more people that agree to go into a business together. Partners may be active or silent

36
Q

Partnership advantages and disadvantages

A

Advantages: easy and inexpensive to form , few legal requirements, partnership agreement is recommended, capital is likely more available due to more partners, more diverse skill range, maintains flexibility to make rapid changes, profits are taxed as personal income, profits go to partners, fewer government controls.
Disadvantages: unlimited liability, partners may have disagreements or different ideas, profit sharing can be more complex, partnerships are easier to create than end; mutual agreement.

37
Q

Two types of partnerships

A

General partnership: all partners share in the management and profits. They co-own the assets and each can act on behalf of the firm. Each also has unlimited liability.
Limited partnership: do not have to take part in day to day manage to of the firm. They help finance the business but the general partners maintain operational control.

38
Q

Corporations

A

Separate legal entity, largest in terms of revenue and total profit

39
Q

Incorporation process

A
  1. Selecting the company’s name
  2. Writing the article of incorporation and filing them with the appropriate government office
  3. Paying required fees and taxes
  4. Holding an organizational meeting
  5. Adopting bylaws, electing directors, and passing the first operating resolutions.
40
Q

Shareholders

A

Owners of a corporation, holding shares of stock that provide them with certain rights. They may receive a portion of the corporations profits in the form of dividends and they can sell or transfer their ownership in the corporation at anytime.

41
Q

Board of directors

A

Govern and handle the overall management of the corporation. Set major corporate goals and policies, hire corporate officers, and oversee the firms operations and finances.

42
Q

Corporations advantages and disadvantages

A

Advantages: limited liability; shareholders can only lose what they invest in the company, easy to transfer ownership, unlimited life; does not automatically shut down after death, tax deduction and lower tax rates can be an advantage, easier to raise capital
Disadvantages: double taxation, more expensive and time consuming, more government restrictions.

43
Q

Officers

A

Top management. Responsible for achieving corporate goals and policies.

44
Q

Cooperatives

A

Autonomous businesses owned and democratically controlled by their members-the people who buy their goods or use their services- not investors.

45
Q

Joint ventures

A

Two or more companies form an alliance to pursue a specific project, usually for a specific time period.

46
Q

Franchisee

A

Owner of individual franchise

47
Q

Franchising

A

Form of business organization that involves a franchisor, the company supplying the product or service concept, and the franchisee, the individual company selling the goods or services in a certain geographic area.

48
Q

Franchise agreement

A

A contract that allows the franchisee to use the franchisors business name, trademark, and logo. Also outlines the rules for running the franchise, services provided by the franchisor, and financial terms.

49
Q

Franchise advantages and disadvantages

A

Advantages: recognized name, ability to expand, management and training assistance, easier to setup, financial assistance.
Disadvantages: must pay a royalty to a franchisor, cost of investing/buying can be expensive, restricted in how you can operate and promote under contract, may be required to purchase materials from fractions at high prices, can lose franchise rights if policies are not followed.

50
Q

How to chose a form of business orgainzation

A

Depends on type of business, number of employees, capital requirements, tax considerations, and level of risk involved.

51
Q

Business plan

A

One of the most important steps on starting a business. Do not neglect.

52
Q

Management

A

Process of guiding the development, maintenance, and allocation of resources to attain organizational goals.

53
Q

Roles of management

A
  1. Anticipate potential problems or opportunities and design plans to deal with them
  2. Coordinating and allocating the recourses needed to implement plans
  3. Guiding personnel through the implementation process
  4. Reviewing results and making any needed changes.
54
Q

Characteristics of money

A

Scarcity, durability, portability, divisibility

55
Q

Scarcity

A

Money should be scarce enough to have some value but not so scarce as to be unavailable. Too much money in circulation increases prices and causes inflation. Government control the scarcity of money by limiting the quantity of money in circulation.

56
Q

Durability

A

Any item used as money must be durable.

57
Q

Portability

A

Money must be easily moved around

58
Q

Divisibility

A

Money must be able to be divided into smaller parts.

59
Q

Functions of money

A

For money to be acceptable, it must function as a medium of exchange (makes transactions easier), as a standard of value, and as a store of value.

60
Q

Accounting process

A

Collecting, recording, classifying, summarizing, reporting, analyzing.
It results in reports that describe the financial condition of a business

61
Q

Annual report

A

Yearly document that describes a firms financial status

62
Q

Balance sheet

A

Measured at a point in time, showing the firms assets, liabilities and accumulated equity

63
Q

Income statement

A

Shows the firms profitability for a stated period

64
Q

Statement of cash flow

A

Shows how cash moved through the organization for a stated period

65
Q

Operating expenses

A

Expenses of running the business to related directly to producing or buying its products

66
Q
  1. Gross margin
  2. Operating margin
  3. Profit margin
A
  1. Measures what percentage of sales remain to pay the operating expenses
  2. Measures what % of sales is left over after all operating expenses are paid
  3. Measures the overall profitability of the firm
67
Q

How does the income statement report a firms profitability?

A

Summarized the firms revenues and expenses and shows its total profit or loss over a period of time.

Bus201 (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions