EXAM REVIEWER Flashcards
the process of running a business of one’s own. It involves organizing, planning, and managing the business or enterprise.
entrepreneurship
people who owns/operate, and
take the risk of a business
venture.
entrepreneurs
a consequence of uncertainty. consequences can be behavioral, psychological, or financial, etc. has to do with consequences both positive and negative.
risk
employee or entrepreneur?
- work for someone else
- do work proposals
- implement projects
employee
employee or entrepreneur?
-assume risk
-directly affected by
consequences
entrepreneur
practices and ensures that highest conducts are observed w/ everyone who is affected by the business activity
ethical
behave consistently in actions, values, methods, measures, principles, expectations and outcomes.
integrity
types of entrepreneurial business:
manufacturing wholesaling retailing services agricultural mining and extracting
Manufacturing examples:
Apparel & textile products Fabricated metal products Food/chemical related prod Electronic and other electrical equipment's Industrial machinery & equipment's
wholesaling examples:
Electrical goods Groceries & related goods Lumber &construction materials Machinery & equipment supplies Paper & petroleum
Retailing examples:
Auto & home supply Clothing store Gift, novelty & souvenir shop Grocery stores Jewelry & hardware stores
Services
Appliance repair Babysitting, translating Bookkeeping, tutoring exterminators plumbing, painting
agricultural examples
fresh produce
farm products such as
wheat, corn etc.
Takes resources like
coal out of the
ground so that can
be used.
Mining and extracting
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
they want to
make their
own decision.
independent
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
make choice alone and bounce back from a poor made decision.
confident
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
Persist through
hard times until
goals
are met.
goal oriented
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
know what they
want and focus
on
achieving it.
determined and persevered
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
motivated by setting and achieving challenging goals.
set high standard
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
Think of new ways to market their business are always looking solutions to problems.
creative
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
Not afraid to make quick decisions when neccesary to beat their competitors.
able to act quickly
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
Emerge in technology that can help the business activities run efficiently.
updated with technology
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS ARE THEIR OWN
BOSSES.
ADVANTAGE
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS CAN CHOOSE A
BUSINESS THAT INTEREST THEM.
ADVANTAGE
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS CAN BE CREATIVE.
ADVANTAGE
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS CAN MAKE LARGE
SUMS OF MONEY.
ADVANTAGE
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURSHIP IS RISKY.
DISADVANTAGE
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS FACE UNCERTAIN
AND IRREGULAR INCOMES.
DISADVANTAGE
ADVANTAGE OR DISADVANTAGE?
THEY WORK LONG HOURS.
DISADVANTAGE
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS MUST MAKE ALL
DECISIONS THEMSELVES.
DISADVANTAGE
CHARACTERISTICS OF GOOD TEAM MEMBERS.
___ to achieve team goals and willing to work hard to achieve it.
committed
CHARACTERISTICS OF GOOD TEAM MEMBERS.
have the right skills needed to get the job done & help
accomplish team goals.
competent
CHARACTERISTICS OF GOOD TEAM MEMBERS.
can share ideas in both oral and written form.
communication
CHARACTERISTICS OF GOOD TEAM MEMBERS.
work well with others and know that they will not
always get their ways.
cooperation
CHARACTERISTICS OF GOOD TEAM MEMBERS.
able to look at thing from a different perspective &
suggest new ways to do things.
creative
How do you set goals?
Goals should answers the “What?” “Why?” and “How?”
specific
How do you set goals?
Goals should establish ways to measure your progress
measurable
How do you set goals?
Goals should not be too far out of reach
attainable
How do you set goals?
Goals should represent things to which you are willing
to commit.
realistic
How do you set goals?
Goals should have a timeframe for achievement.
timely
the activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.
marketing
is all of the processes-planning, pricing,
promoting, distributing, and selling-used to
determine and satisfy the needs of customers and
the company
marketing
Uses the needs of customers as the
primary focus during the planning,
production, distribution, and promotion
of product or service
marketing concept
To use the marketing concept successfully,
business must be able to:
(MEMO)
○ Identify what will satisfy the customers’ needs and wants ○ Develop the market products better than other choices ○ Operate profitably
It is a blending of the product,
price, distribution, and promotion
used to reach a target market.
marketing mix
It is a plan that
identifies how the goals
of your business will be
achieved
marketing strategy
In your startup marketing
plan, your strategy should
address:
(NEED TO MEMO)
○ Product introduction ○ Pricing ○ Distribution ○ Promotion ○ Sales or market share ○ Projected profitability
ensures that the marketing you do
today fits in with the vision you have
for your business.
marketing goals
Are what you want your business to achieve in the next year
short term goal
describe what you want your business to achieve in the next two to five years.
medium term goal
Show where your business will be 5, 10, and even 20 years from now.
long term goal
Its purpose is to define your market, identify your customers and competitors, outline a strategy for attracting and keeping customers, and identify and anticipate change. It becomes part of your business plan.
marketing plan
will help you determine whether it is
solid and all parts are consistent
becomes a guiding document as you
operate your business
written marketing plan
is the belief that the wants and needs
of customers are the most important
consideration when developing any
product or marketing effort
marketing concept
the different products
and services a business
sells
product mix
• These are the characteristics of the
product that will satisfy customer needs.
• Includes color, size, quality, warranties,
deliveries, and installations
product features
is the name, symbol, or design used
to identify your product
brand
is the box, container, or wrapper
in which the product is placed
package
is where the information about the
product is given on the package
label
is creating an image for a
product in the customer’s mind.
positioning
It is the actual amount a customer pays for a
product or service
price
Pricing Objectives:
MDEI
- Maximize sales
- Discourage competition
- Establish an image
- Increase profits
Refers to the costs of making and marketing the
product
investment
it is the amount earned as a result of the
investment and is usually expressed as a
percentage
return of investment
it is a business’s percentage of the total sales
generated by all companies in the same market.
market share
involves establishing informal ties with people who can help your business grow
networking
pricing that is determined by how much customers
are willing to pay for a product or service
demand-based pricing
It is determined by using the wholesale cost of an
item as the basis for the price charged
cost-based pricing
is determined by adding a percentage
amount to the wholesale cost of an item.
markup price
is determined by subtracting a
percentage amount from the retail price of an item
markdown price
it is a pricing that is determined by
considering what competitors charge for the same
good or service
competition-based pricing
The price to charge for services can be determined by the
amount of time it takes to complete the service.
time-based pricing
services can be bundled, or combined under one charge, rather
than making the customer pay for each individual part of the
service.
bundling
is the process of selling your idea to a
company for the development and launch of a new
product
licensing
Used when a product is new and unique, starts with
a high price to recover the costs involved in
developing the product.
price skimming
Uses a low introductory price with the goal of
building a strong customer base
penetration pricing
It is based on the belief that certain prices
have an impact on how customers perceive a
product
psychological pricing
works on the opposite premise; rather than making
prices seem low, prices are inflated in order to create a sense of
greater value.
prestige pricing
is a strategy of setting prices in odd numbers just
below an even price, for example pricing an item at the odd $19.99
rather than the even price of $20.00.
odd even pricing
is an effective form of psychological pricing for companies
with an extensive product line; it involves creating a price range for a
particular line
price lining
is often the subject of controversy. Many countries
have laws which govern the amount of time that a product should be
sold at its original higher price before it can be discounted
promotional pricing
Offers customers a reduced price.
Used to encourage customers to buy.
discount pricing
are reductions on base price given to customers for
paying cash or within some short time period.
cash discounts
are reductions in base price given as the result of a
buyer purchasing some predetermined quantity of merchandise. A
noncumulative quantity discount applies to each purchase and is
intended to encourage buyers to make larger purchases.
quantity discounts
are price reductions given for out-of-season
merchandise—snowmobiles discounted during the summer, for example
seasonal discounts
price reductions given to middlemen (e.g.,
wholesalers, industrial distributors, retailers) to encourage them to stock
and give preferred treatment to an organization’s products.
trade discounts
3 kinds of pricing strategies:
- introductory pricing
- psychological pricing
- discount pricing
is an economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's individual citizens and businesses.
market economy
involves a desire for material goods and
services. They are the basis of an economy.
economic wants
the desire for
nonmaterial things
noneconomic wants
are the means through which goods
and services are produced.
economic resources
Raw materials supplied by nature
natural resources
People who create goods and
services.
human resources
Assets used in the production of
goods.
capital production
The willingness and
ability to take risks and
make decisions for the
business.
Entrepreneurship
or Enterprise
A concept in economics that if one factor of production (number of workers, for example) is increased while other factors (machines and workspace, for example) are held constant, the output per unit of the variable factor will eventually diminish.
law of diminishing concept
Entrepreneurs play an
important role in supplying
goods and services to meet
the demands of consumers
supply and demand
The role of
entrepreneurs in
the U.S. economy:
- Supply and Demand
- Capital Investment and
Job Creation Job Creation - Change Agents
Entrepreneurs are investing in
their Communities by
contributing to the local
economy and providing jobs.
Capital Investment and
Job Creation Job Creation
Many entrepreneurs create
products that change the way
people live and conduct
business.
Change Agents
What are the 4 types of Economic Systems:
- Command Economy
- Market economy
- traditional economy
- mixed economy
the government determines what, how, and
for whom products and services are
produced.
command Economy
Individuals and businesses decide
what, how and for whom goods and
services are produced.
market economy
Goods and services are produced the
way they have always been produced
traditional economy
Often results when a country shifts away
from a command economy towards a
market economy but still has government
involvement in the marketplace.
mixed economy
the private ownership of resources by
individuals rather than the government.
capitalism
The U.S economic system is based on four basic
principles:
- private property
- freedom of choice
- profit
- competition
A U.s Citizen can
own, use, or
dispose of things
of value.
private property
You can make decisions
independently and must
accept the consequences
of those decisions.
freedom of choice
The difference between the
revenues earned by a
business and the cost of
operating the business.
profit
The rivalry among
businesses to sell their
goods and services.
competition
occurs when peoples' needs and wants are unlimited and the resources to produce the goods and services to meet those needs and wants are limited.
scarcity
is the
value of the next-best
alternative (the one you
pass up)
Opportunity Cost
Functions of Businesses:
PMMF
Production
Marketing
Management
Finance
The primary reason a business exists in a market economy is to provide products or services to consumers and earn a profit.
production
All business in a market economy need to complete marketing activities in order to make their products and services available to consumers.
marketing
It is necessary for all businesses in a market economy to spend a great deal of time developing, implementing, and evaluating plans and activities.
management
determining the amount of
capital needed for the
business and how the capital
will be obtained.
finance
is the quantity of a good or
service a producer is willing
to produce at different
prices.
supply
is the quantity of a good or
service that consumers are
willing to buy at a given
price.
demand
When a demand for a product is affected by its
price.
demand elasticity
change in prices
creates a change in
demand.
elastic demand
change in price creates
very little change in
demand.
inelastic demand
the point at
which the supply and
demand curves.
equilibrium price and quantity
are costs
that must be paid regardless
of how much of a good or
service is produced.
fixed cost
are costs
that go up and down depending
on the quantity of the good or
service produced.
variable cost
Consists of a very large number
of businesses producing nearly
identical products and has many
buyers.
perfect competition
has a large number of
independent businesses that
produce goods and services
that are somewhat different.
monopolistic competition
Dominated by a small
number of businesses that
gain the majority of total
sales revenue.
oligopoly
Only one provider of a product or service. A company that has a \_\_\_\_ is able to charge whatever price it wants because consumers have nowhere else to go to find a better price.
monopoly
