Class 1: Terminology

Question 1

Business -

Answer 1

any activity that seeks to provide goods/services while operating at a profit

Question 2

enterpreneur

Answer 2

a person who starts a business at his own risk in the hope of profit

Question 3

goods -

Answer 3

are tangible items

Question 4

services -

Answer 4

activities provided by other people, help

Question 5

economic activity and trade (3 actions)

Answer 5

production, distribution, consumption of goods and services

Question 6

gross profit перевод

Answer 6

валовая прибыль

Question 7

gross profit formula

Answer 7

разница между выручкой и себестоимостью проданной продукции или услуги
(revenue - cost of goods)

Question 8

interest rate перевод

Answer 8

процентная ставка

Question 9

net profit перевод

Answer 9

чистая прибыль

Question 10

formula for net profit

Answer 10

Gross profit - operating expenses - other expenses - interest

Question 11

Net profit marginперевод

Answer 11

чистая рентабельность, маржа

Question 12

what is net profit margin for?

Answer 12

доля выручки в % после вычета всех расходов, чтобы посмотреть эффективность и прибыльность

Question 13

net profit margin formula

Answer 13

net profit/revenue

Question 14

revenue перевод

Answer 14

выручка (весь доход без вычетов)

Question 15

stockholders vs stakeholers (definitions, difference, examples)

Answer 15

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…

Question 16

what do businesses bring?

Answer 16

1. Create jobs
2. Improve standard of living
3. Pay taxes

Question 17

NPO (non-profit organization) traits (3) and examples

Answer 17

1. No personal gain
2. Financial gain with another purpose (innovation/welfare of society)
3. Profit reinvested

schools, hospital..

Question 18

Economics -

Answer 18

studies how society chooses to employ resources to produce goods&services, distribute them among competing groups and individuals

Question 19

factors of production (факторы производства)

Answer 19

1. Land (природные ресурсы)
2. Labour (деятельность человека)
3. Capital (капиталовложения)
4. Enterpreneurship (умение собрать все воедино)
5. Knowledge

Question 20

advantages of being an enterpreneur

Answer 20

freedom in decision making, more opportunities, possible wealth

Question 21

advantages of being an employee of an enterpreneur

Answer 21

paid vacations, health insurance, hours worked - hours paid

Question 22

business environment -

Answer 22

people, organisations and other forces that are outside the power of industry but that may affect its production.

Question 23

business environment - 4 fields

Answer 23

1. Economic/legal
2. Technological
3. Competition
4. Social

Question 24

Economical factor in business environment

Answer 24

Taxes, new laws, currencies, capitalist/socialist society

Question 25

Technological environment, what to consider, how affects business

Answer 25

New technologies, might influence business internally - how to automate certain tasks, cost of production
Externally - the demands, trends, how consumers interact with each other

Question 26

Competitive environment- how may affect the business

Answer 26

Gives understanding on what competition you have in the field, them entering and exiting the market

Question 27

Social environment - what is it and what affects?

Answer 27

Characteristics of the people - age, gender, roles and etc
Diversity, demographic changes..
Defines the approach

Question 28

supply and demand перевод

Answer 28

предложение и спрос

Question 29

micro-economics -

Answer 29

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

Question 30

macroeconomics -

Answer 30

field of economics that studies the behavior of the economy as a whole: entire industries, economies, markets, currencies, inflation…

Question 31

traditional economy -

Answer 31

system based on traditions, which shape goods and services the economy produces. Barter system. Mostly rely on agriculture, gathering, hunting.

Question 32

market economy (рыночная экономика)

Answer 32

economic system where 2 forces - supply and demand direct the production of goods&services

Question 33

traits of a market economy

Answer 33

not controlled by the government, are based on voluntary exchange, what and how much profuced is decided by the market

Question 34

communism economy

Answer 34

type of economy where property and economic resources are owned and controlled by the state

Question 35

socialism economy

Answer 35

the resources and properties are controlled by the government; the goal is to create an equal distribution of wealth and resources

Question 36

difference between socialism and communism

Answer 36

socialists were NOT abolishing private property, money, market or governance, rather than controlling

Question 37

comparative advantage по рус

Answer 37

сравнительно преимущество

Question 38

comparative advantage - +example

Answer 38

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.

Question 39

comparative advantage theory

Answer 39

a state should sell the products it produces with a comparative advantage and buy what they can’t produce

Question 40

comparative vs absolute advantage

Answer 40

produce more of a good than a competitor/to produce a good for a lower opportunity cost than a competitor.

Question 41

Marketing-

Answer 41

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

Question 42

customer value -

Answer 42

how much a product is worth for a customer (all costs and benefits)