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Fund To Business > Ch1- Intro > Flashcards

Ch1- Intro Flashcards

1
Q

What is Business?

A

Producer provides goods and services in hope of earning a profit

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2
Q

What is profit?

A

Difference between revenue and cost, the revenue is greater than the cost

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3
Q

What is loss?

A

When the revenue isn’t greater that the cost

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4
Q

What is an entrepreneur?

A

A person who takes risks to manage their business

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5
Q

What is standard of living?

A

The quality of life people have.

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6
Q

When and what is Mercantilism+Trade?

A

1500
Based on trade between colonies and their mother country. The mother country takes resources from the colonies to make products then resell the product to the colonies

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7
Q

When and what is Industrial Revolution?

A

1700/1800

Replacing artisans with factories and mass production, the cost per unit decreases as well as the quality of life

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8
Q

When and what is entrepreneurship era?

A

Mid 1800

Large scale business enterprise, the first millionaires and larger businesses scales

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9
Q

When and what is production era?

A

1900
Efficiency and specialization in factories
Henry Ford and the assembly line.
Science is associated with business(scientific management )

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10
Q

When and what is marketing era?

A

After WWII
Choice in the products you can buy (a lot of brands) + competition
Companies needs to find ways for their companies to buy their products (advertisement)

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11
Q

When and what is relationship era?

A

Today

Long term relationship with the customer, it’s cheaper to keep a customer than acquire a new one

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12
Q

What is a Profit business

A

Primary goals is to increase profit.

Based on increasing revenues and decreasing expenses.

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13
Q

What is a non profit business?

A

The primary goal is not profit.
It functions the same was as a business (meet their goals in an efficient way)
Generally provides social or education services to the general public.

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14
Q

What are the four factors of production?

A

Natural resources
Human Resources
Capital
Entrepreneurship

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15
Q

What are Natural resources?

A

Anything that comes from nature, in their natural state

Ex:river

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16
Q

What are Human Resources?

A

Labour + skill to create goods and services

Ex:teacher

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17
Q

What is capital?

A

Tools and equipment used to create goods and services

Ex:computer

18
Q

What is entrepreneurship?

A

Risk to create/start something new

Ex: first to use…

19
Q

What is the general goal of PESTLE?

A

Hello analyze the business environment, anything that is outside the control of the business

20
Q

What is the PESTLE composed of?

A 
Political/ legal
Economic
Socio-cultural
Technological
Environmental
21
Q

What are some elements of Political/legal element of PESTLE?

A

Political party that got elected,
Taxes/laws
Political instability

22
Q

Elements of the economic of PESTLE?

A

The state of the economy (grow and contraction phase)
Debt
Inflation

23
Q

Elements of socio-cultural of PESTLE?

A

Taste and preferences
Diversity
Aging population
Ethic+values

24
Q

Elements of technological of PESTLE?

A

Internet+e-commerce

It allows businesses to try and do new things

25
Q

Elements of environmental PESTLE?

A

Current environment and availability of resources

26
Q

How do you build long-term real action ships with customers?

A

Loyalty program, membership cards, login, subscription

27
Q

Customer satisfaction

A

How happy they are with the product and the price

+experience, mood, time spent

28
Q

What is workforce advantage?

A

Leads to better results and quality thus more profit

29
Q

What is competitive advantage?

A

What sets you apart from the competition

Ex: a product that is hard to copy

30
Q

What are the porter’s 5 forces?

A 
Industry competition
Threat of new entrants
Bargaining power of buyers
Bargaining power of suppliers 
Threat of substitution
31
Q

What is industry competition of P5?

A

How strong and how many competitors are in the market

32
Q

What is threat of new entrants of P5?

A

Likely hood and hoe easy it is to enter a market

How easy it is to get the customers

33
Q

What is bargaining power of P5?

A

The customer can drive the price lower

We don’t buy those products on a daily basis, they are expensive and there is a number of choice of the provider

34
Q

What is and what causes the bargaining power of suppliers in P5?

A

Supplier can drive the cost of raw materials or part higher

Caused by scarcity of resource and low competition for the supplier

35
Q

What is the threat of substitution of the P5?

A

The more substitutes a product in its category has the worse it is for your business

36
Q

What is globalization?

A

Integration and interdependence of countries in terms of resources, consumers and competition.

37
Q

Why can competition be a good thing for customers and companies?

A

For customers: drives price down

For companies: motivation to get better as a business
/growth

38
Q

What is free trades?

A

Economic and political movement used to help goods and services flow freely between countries

39
Q

What can be used to protect local market from free trades?

A

Tariffs (taxes fro buying a foreign product)

Quotas (how much can be bought in a market)

40
Q

What is Gatt

A

General agreement on tariffs and trades.

The international community comes together to prevent war and trading crisis

Fund To Business (12 decks)

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