Test 1 Flashcards
People who own, operate, and assume the risk of a business venture?
Entrepreneruship
Costs that must be paid regardless of how much of a good or service is produced
fixed costs
The ability to learn a particular kind of job
Aptitude
A measurement of the advantages of producing one additional unit of a good a large number of fresh ideas
Marginal benefit
An agreement among a group of people
Consensus
Level of output received from each worker
Productivity
The cost of choosing one opportunity or investment over another
Opportunity Costs
An individuals need or desire for a product or service at a given price
Demand
Needs and wants are unlimited and the resources to produce the goods and services to meet those needs and wants are limited
Scarcity
A written document that describes all the steps necessary to open and operate a successful business
business plan
The costs associated with beginning a business
Startup Costs
Difference between revenues earned by a business and the costs of operating the business
Profit
Point at which the supply and demand curves meet
equilibirum
Property that a borrower forfeits in the bank providing the loan if he or she defaults on the loan
Collatural
Money loaned to a business with the understanding that the money will be repaid, usually with interest
Debt Capital
Money invested in a business in return for a share in the profits of the business
Equity Capital
4 types of business and examples
Manufacturing- stone, clay, glass products
Wholesaling- electrical goods, petroleum
Retailing- Florists, clothing stores
Service- Babysitting, bookeeper
4 types of business and examples
Manufacturing- stone, clay, glass products
Wholesaling- electrical goods, petroleum
Retailing- Florists, clothing stores
Service- Babysitting, bookeeper
5 elements of a business plan
Introduction- Detailed description of the bussines and goals
- ownership of the business and legal structure
Marketing- Description of products and services
-market conditions business will face
Financial mangament- consult wiht expierenced advisors
-retur on investment
Operations- Banks and ijnvestors want asssurance on deatils of the day to day running of the bussiness
Concluding statement- goals and objectives of the bussines are summarized
Characterisitcs of good team member
Commitment competency communication cooperation creatity
The economic resources and explain
Natural- raw materials supplied by nature: oil
Human- people who create goods and services, entrepreneurs are human resources
Capital- the assests used in the production of goods and services, building, equipment, and supplies
