Class 1: Terminology Flashcards
Business -
any activity that seeks to provide goods/services while operating at a profit
enterpreneur
a person who starts a business at his own risk in the hope of profit
goods -
are tangible items
services -
activities provided by other people, help
economic activity and trade (3 actions)
production, distribution, consumption of goods and services
gross profit перевод
валовая прибыль
gross profit formula
разница между выручкой и себестоимостью проданной продукции или услуги
(revenue - cost of goods)
interest rate перевод
процентная ставка
net profit перевод
чистая прибыль
formula for net profit
Gross profit - operating expenses - other expenses - interest
Net profit marginперевод
чистая рентабельность, маржа
what is net profit margin for?
доля выручки в % после вычета всех расходов, чтобы посмотреть эффективность и прибыльность
net profit margin formula
net profit/revenue
revenue перевод
выручка (весь доход без вычетов)
stockholders vs stakeholers (definitions, difference, examples)
stockholders have a share, are in for the profit, are stakeholders by the definition
stakeholders are not necessarily stockholders
stakeholders have an interest in a success of the company, not profit only
stakeholders are customers, workers, suppliers, media…
what do businesses bring?
- Create jobs
- Improve standard of living
- Pay taxes
NPO (non-profit organization) traits (3) and examples
- No personal gain
- Financial gain with another purpose (innovation/welfare of society)
- Profit reinvested
schools, hospital..
Economics -
studies how society chooses to employ resources to produce goods&services, distribute them among competing groups and individuals
factors of production (факторы производства)
- Land (природные ресурсы)
- Labour (деятельность человека)
- Capital (капиталовложения)
- Enterpreneurship (умение собрать все воедино)
- Knowledge
advantages of being an enterpreneur
freedom in decision making, more opportunities, possible wealth
advantages of being an employee of an enterpreneur
paid vacations, health insurance, hours worked - hours paid
business environment -
people, organisations and other forces that are outside the power of industry but that may affect its production.
business environment - 4 fields
- Economic/legal
- Technological
- Competition
- Social
Economical factor in business environment
Taxes, new laws, currencies, capitalist/socialist society
Technological environment, what to consider, how affects business
New technologies, might influence business internally - how to automate certain tasks, cost of production
Externally - the demands, trends, how consumers interact with each other
Competitive environment- how may affect the business
Gives understanding on what competition you have in the field, them entering and exiting the market
Social environment - what is it and what affects?
Characteristics of the people - age, gender, roles and etc
Diversity, demographic changes..
Defines the approach
supply and demand перевод
предложение и спрос
micro-economics -
study of decisions that people make regarding the allocation of resources and prices for goods and services
focuses on supply-demand approach that determine the price levels
macroeconomics -
field of economics that studies the behavior of the economy as a whole: entire industries, economies, markets, currencies, inflation…
traditional economy -
system based on traditions, which shape goods and services the economy produces. Barter system. Mostly rely on agriculture, gathering, hunting.
market economy (рыночная экономика)
economic system where 2 forces - supply and demand direct the production of goods&services
traits of a market economy
not controlled by the government, are based on voluntary exchange, what and how much profuced is decided by the market
communism economy
type of economy where property and economic resources are owned and controlled by the state
socialism economy
the resources and properties are controlled by the government; the goal is to create an equal distribution of wealth and resources
difference between socialism and communism
socialists were NOT abolishing private property, money, market or governance, rather than controlling
comparative advantage по рус
сравнительно преимущество
comparative advantage - +example
economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners
If it takes one hour of labor to produce 10 units of cheese and one of of labor to produce 20 units of chocolate, then this country has a comparative advantage in making chocolate.
comparative advantage theory
a state should sell the products it produces with a comparative advantage and buy what they can’t produce
comparative vs absolute advantage
produce more of a good than a competitor/to produce a good for a lower opportunity cost than a competitor.
Marketing-
a set of processes for creating, communicating and delivering value to customers and managing customer relationships in ways that benefit the organization and its stake holders
customer value -
how much a product is worth for a customer (all costs and benefits)
