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
bonds
A loan given to a company or government by an investor; considered less risky than stocks
mutual fund
A collective investment that pools together the money of a large number of investors to purchase a variety of securities
interest
The amount of money paid to an investor for the privilege of borrowing money from them (also known at a coupon rate for bonds)
dividend
periodic payment issues by some stocks; a portion of a company’s earning is given to shareholders
capital
The money a company raises to invest back into its business
commission
a fee paid to the professional fund manager
diversification
An investment strategy that aims to reduce risk by varying the types of assets and therefore varying the amount of risk
product
defined as the process of promoting and selling a consumer good, service or idea to a customer
place
the strategy a company uses to distribute its products and services in an attempt to gain consumer purchases.
suppliers
businesses from which other businesses buy goods or materials
manufactures
businesses that take the good or materials from suppliers and create a finished product
distributors
businesses responsible for storing, locating, and selling finished products
customers
people or businesses who buy the final product
five major transportation types
- trucks 69%
- railroads 15%
- pipelines 10%
- waterways 6%
- air 1%
common carriers
trucking company that provides transportation service to any business in their operating area for a fee
contract carriers
a for hire trucking company that provides equipment and drivers for specific routes, per agreements between the carrier and shipper
private carrier
trucking company that transports goods for an individual business
exempt carrier
trucking company that is free from direct of rates and operating procedures
ton mile
movement of one ton of freight one mile
carload
minimum number of pounds of freight to fill a box car
marine shipping
barges and container ships
inland shipping
shipping using rivers and lakes
equilibrium
the point which the quantity supplied is equal to the quantity demand
scarcity
the demand for a good or service is greater than the availability of the good or service
opportunity costs
loss of other options that were not chosen
wants
desires for things that may or may not be required
needs
something required for survival
cost-benefit
process that businesses use to analyze which decisions to make and which to forgo. the action should be undertaken only if its benefits are greater than its costs.
demand curve
downward sloping
supply curve
curves up
below equilibrium
shortage
above equilibrium
surplus
demand curve shifting to the right
increase in demand
demand curve shifting to the left
decrease in demand
supply curve shifts to the right
increase in supply
supply curve shifts to the left
decrease in supply
human resources
valued for the physical and mental work they do to produce goods and services
capital resources
manufactured or constructed items used to produce goods and services
natural resources
items found in the environment that are used to produce goods and services
limited liability company (LLC)
Members determine how the company is managed and how profits are shared.
copy right
the exclusive legal right, given to an originator or an assignee to print, publish, perform, film, or record literary, artistic, or musical material, and to authorize others to do the same.
balance sheet
a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time
what is an entrepreneur
someone who recognizes a business opportunity and organizes, manages, and assumes the risk of starting and operating a business
inter coastal shipping
shipping on inland coastal waterways
international waterways
shipping on waterways that connect continents and countries
prestige price
multiple unit price
everyday low price
odd / even price
price bundling
