Exploring Business and Marketing precision exam Flashcards
law of demand
the quantity of a good or service that consumers will buy varies inversely with the price of that good or service
law of supply
the quantity of a good or service that will be offered for sale varies in direct relation to its selling prices
partnership
owned by 2 or more people
sole proprietorship
owned by one person who assumes all the profits and risks from the business
general partnership
each partner has unlimited liability
private (close) corporation
does not offer shares for sale to the general public
law of supply and demand
the supply of a good or service will increase when the demand is great and decrease when the demand is low
corporation
an artificial being, invisible, intangible, and existing only in contemplation to law
S corporation
same liability protection of a corporation, but it is taxed as a partnership to help smaller businesses avoid dual taxation
limited partnership
at least one partner has limited liability and a general partner has unlimited liability
C corperation
can sell unlimited shares of stock to general public, meaning there may be unlimited stockholders in just one company
nonprofit corporation
operates to accomplish a specific mission than to make a profit
franchise
legal agreement between 2 parties
owners equity
owners stake in the business
trademarks
a symbol, word, or words legally registered or established by use as representing a company or product.
patents
a government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.
owners equity equation
owners equity = total assets - total libalilities
assets equation
Assets = Liability + Owner’s Equity
liability
debts or obligations owed to external parties
assets
anything of value that is owned
liquidity
the ability to convert assets into cash quickly to meet debts or obligations
cash is the most liquid asset
revenue
total amount of money generated from a businesses primary operations
year to date
the amount of profit realized by an investment since the first trading day of the current calendar year
revenue equation
price per unit X quantity sold
expenses
the cost of operations that a company incurs to generate revenue
net income
net income= total revenue - total expenses
Ethics
Objectives that govern right and wrong behavior
Democratic Leadership Style
- encourages ideas and opinions
- guides rather than facilitates
- decisions made by majority rule
- best when lost of ideas are needed
Laissez Faire Leadership Style
- hands off
- decisions made without leader guidance
-Independence is valued
-best when teams are skilled and motivated
Autocratic Leadership Style
- directive
- tight control
- commands
-members encouraged to not provide input
-best for emergencies and when progress is no being made
why are communication skills important
employers consistently rank good communication skills at the top of the list for potential employees.
examples of workplace communication
- collaboration
- performance review
- negotiating contract terms
networking
cultivating relationships with other business professionals, potential customers, or current customers
income statement
a summary that shows how much money a business has made or lost