Term
|
Definition
| Activity that provides good or services to consumers for the purpose of making a profit. |
|
|
Term
|
Definition
| Difference between the revenue that a company brings in from selling goods and services and the cost of generating this revenue. |
|
|
Term
|
Definition
| Process of planning for, organizing, directing, and controlling a company's resources so that it can achieve a company's goals. |
|
|
Term
|
Definition
| Input used to produce output. |
|
|
Term
|
Definition
| Economic system falling between communism and capitalism in terms of gov. control over allocation and distribution. |
|
|
Term
|
Definition
| Economic system featuring the lowest level of gov. control over allocation and distribution. |
|
|
Term
|
Definition
| Study of how scarce resources are used to produce output that are distributed among people. |
|
|
Term
| Name three MAIN participants in a business. |
|
Definition
1. Owners
2. Employees
3. Customers |
|
|
Term
| Name three external factors that influence business. |
|
Definition
1. Economy
2. Government
3. Consumer trends |
|
|
Term
| Name and briefly describe the five functional areas needed to run a business. |
|
Definition
1. Management: Effectively using Co.'s resources to reach goal.
2. Finance: Managing Co.'s funds.
3. Accounting: measuring, summarizing and communicating financial and managerial info and financial advising.
4. Marketing: identifying and meeting customers needs.
5. Operations:designs and oversees the tranform. of resources into goods. |
|
|
Term
| Name two planned economic systems. |
|
Definition
|
|
Term
| Describe how the demand and supply curves are used to determine equilibrium price... |
|
Definition
shit shit poopie shit
AKA: Supply and demand curves are plotted on a graph. The point at which they intersect is the equilibrium which means the demand it the same as your supply. |
|
|
Term
| Contrast the following: Monopoly, Monopolistic Competition, Oligopoly |
|
Definition
Monopoly: Market where there is only one seller.
Monopolistic Competition: Many sellers that sell products that differ from each other, but serve a similar purpose.
Oligopoly: Market with a few sellers supplying a large portion of all products sold in marketplace. |
|
|
Term
| Describe how GDP is related to the business cycle. |
|
Definition
| When you have a high GDP.....Yay business cycle!!! |
|
|
Term
|
Definition
| Ability and willing to distinguish right from wrong. |
|
|
Term
|
Definition
| Parties who are interested in the activities of a business bc they are affected by them. |
|
|
Term
| Contrast legal and ethical... |
|
Definition
| Ethics involves whether or not you choose to do something legal or illegal. |
|
|
Term
| Name the five steps in the "How to face an ethical dilemma" process described in the book. |
|
Definition
1.Define the problem and collect facts.
2.Identify feasible options.
3.Asses the affect of each option on stakeholders.
4.Establish the criteria for determining the most appropriate action.
5.Select the best opinion based on the established criteria. |
|
|
Term
| Explain how insider trading is a conflict of interest. |
|
Definition
| It is unethical. It is concerning your personal interest instead of looking out for the interest of others. |
|
|
Term
| Give an example of whistle blowing. |
|
Definition
Exposing illegal or unethical behavior of others.
Ratting out others who are "doin bad thangs...like hoodrat stuff." |
|
|
Term
| Describe concept of Corporate Social Responsibility... |
|
Definition
| When organizations disperse responsibilities on different stakeholders when making legal, economic, ethical and social decisions. |
|
|
Term
| Briefly state Milton Friedman's position on corporate social responsibility... |
|
Definition
| He thinks that business shouldn't be corporate socially responsible at all, because he thinks that co.'s should only focus on their profit. |
|
|
Term
|
Definition
| Set of processes for creating, communicating and delivering value to customers and for improving customer relationships. |
|
|
Term
| Define: Marketing Concept |
|
Definition
| Basic philosophy of satisfying customers needs while meeting organizational goals. |
|
|
Term
| Define: Marketing Strategy |
|
Definition
| Plan for selecting target market, creating, pricing, promoting, and distributing products that satisfy customers. |
|
|
Term
|
Definition
| Word, letter, symbol etc. that differentiates product from similar products on the market. |
|
|
Term
|
Definition
| Word, symbol or other mark used to identify and legally protect a product from being copied. |
|
|
Term
|
Definition
| Wholesaler or retailer who helps move products from their original source to the end user. |
|
|
Term
|
Definition
| Entire range of activities involved in delivering value to customers. |
|
|
Term
| Name and describe four methods of customer segmentation. |
|
Definition
1.Demographic Seg.: Dividing market into groups based on age, income, etc.
2.Geographic Seg.: Dividing market into climate, region, pop. density, etc
3.Behavioral Seg.: Dividing consumers by behavioral var. like 'tude toward product, user status, etc.
4.Psychographic Seg.: Classifying consumers by individ. lifestyles reflected in people's interests, activities, attitudes, etc. |
|
|
Term
| Of four segmentation methods described in the text....blah blah blah, which is best for kindle? Justify yo-self. |
|
Definition
| Psychographic, bc it would depend on if they like to read and like electronics. Duh. |
|
|
Term
| Name and briefly describe the four P's. |
|
Definition
Product: developing a product that meets the needs of the target market.
Place: distributing the product
Price: setting a price for product
Promotion: informing potential buys about product. |
|
|
Term
| How are brand equity and brand loyalty related? |
|
Definition
| Brand loyalty (how many times they come back) is determined by the brand equity (their experience and the value of the product to customer) |
|
|
Term
| Name five pricing strategies... |
|
Definition
1. Cost-Based Pricing
2. Demand-Based Pricing
3. Target Costing
4. Skimming Pricing
5. Penetration Pricing |
|
|
Term
| Which pricing strategy would be best for kindle? Justify Yo-self. |
|
Definition
| Penetration, bc it starts at a low to discourage competitors. They wouldn't have competition so buys would only know about them. |
|
|
Term
| Give and example of a product that is in each stage of the product life cycle. Justify your answer. |
|
Definition
Introductory: Kindle
Growth: Snuggie
Maturity: iPhone
Decline: Legos |
|
|
Term
|
Definition
| Summarizing business activities and communicating the results to management. |
|
|
Term
| Define: Gross Profit (a.k.a.- Gross Margin) |
|
Definition
| Positive difference between revenues and cost of goods sold. |
|
|
Term
| Define: Net income (a.k.a.- Net Profit) |
|
Definition
| Positive difference between gross profit and total expenses. |
|
|
Term
| Define: Break Even Analysis |
|
Definition
| Method of determining the level of sales at which the co. will break even. |
|
|
Term
|
Definition
| Technique for financial analysis that shows the relationship between two numbers. |
|
|
Term
| Name and briefly describe the purpose of the three financial statements discussed in the book. |
|
Definition
1.Income Statement: shows what your sales and expenses are and whether or not you made a profit.
2.Balance Sheet: Indicated what assets and liabilities you have and the amount you've invested in your business.
3.Statement of Cash Flows: shows how much cash you have coming in and going out. |
|
|
Term
| Contrast income statement and balance sheet. |
|
Definition
Income Statement: shows what your sales and expenses are and whether or not you made a profit.
Balance Sheet: Indicated what assets and liabilities you have and the amount you've invested in your business. |
|
|
Term
| How do you calculate Gross Profit Margin? |
|
Definition
|
|
Term
| How do you calculate Net Profit Margin |
|
Definition
|
|
Term
| How do you find Inventory Turnover? |
|
Definition
|
|
Term
| How do you find current ratio? |
|
Definition
| Current Assets / Current Liabilities |
|
|
Term
|
Definition
| Pulls money out of your checking account....whenever you use it. |
|
|
Term
| Define: Adjustable Rate Mortgage |
|
Definition
| Mortgage that's pegged to the increase or decrease of certain interest rates that your lender has to pay. |
|
|
Term
| Define: Fixed Rate Mortgage |
|
Definition
| A mortgage in which the interest rate remains the same regardless of changes in market interest rates. |
|
|
Term
| Name four costs associated with the cost of borrowing. |
|
Definition
1. Finance Charge
2. Annual Fee
3. Over-Limit Fee
4. Cash Advance |
|
|
Term
| Name and briefly describe the three stages of the financial life cycle. |
|
Definition
1. Building Wealth: you build your wealth, duh.
2. Preserving and Increasing Wealth: Preserving and Increasing Wealth......more duh.
3. Living on Saved Wealth: Seriously, you live off of wealth that you've saved. Super duh. |
|
|
Term
| Explain how to calculate your Personal Net Worth. |
|
Definition
| Assets - Liabilities = Net Worth |
|
|
Term
| What factors go into determining your credit score? |
|
Definition
| Payment history, total amount owed, length of your credit history, amount of new credit you have, and types of credit you use. |
|
|
