EXAM REVIEWER Flashcards
(130 cards)
1
Q
the process of running a business of one’s own. It involves organizing, planning, and managing the business or enterprise.
A
entrepreneurship
2
Q
people who owns/operate, and
take the risk of a business
venture.
A
entrepreneurs
3
Q
a consequence of uncertainty. consequences can be behavioral, psychological, or financial, etc. has to do with consequences both positive and negative.
A
risk
4
Q
employee or entrepreneur?
- work for someone else
- do work proposals
- implement projects
A
employee
5
Q
employee or entrepreneur?
-assume risk
-directly affected by
consequences
A
entrepreneur
6
Q
practices and ensures that highest conducts are observed w/ everyone who is affected by the business activity
A
ethical
7
Q
behave consistently in actions, values, methods, measures, principles, expectations and outcomes.
A
integrity
8
Q
types of entrepreneurial business:
A
manufacturing wholesaling retailing services agricultural mining and extracting
9
Q
Manufacturing examples:
A
Apparel & textile products Fabricated metal products Food/chemical related prod Electronic and other electrical equipment's Industrial machinery & equipment's
10
Q
wholesaling examples:
A
Electrical goods Groceries & related goods Lumber &construction materials Machinery & equipment supplies Paper & petroleum
11
Q
Retailing examples:
A
Auto & home supply Clothing store Gift, novelty & souvenir shop Grocery stores Jewelry & hardware stores
12
Q
Services
A
Appliance repair Babysitting, translating Bookkeeping, tutoring exterminators plumbing, painting
13
Q
agricultural examples
A
fresh produce
farm products such as
wheat, corn etc.
14
Q
Takes resources like
coal out of the
ground so that can
be used.
A
Mining and extracting
15
Q
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
they want to
make their
own decision.
A
independent
16
Q
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
make choice alone and bounce back from a poor made decision.
A
confident
17
Q
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
Persist through
hard times until
goals
are met.
A
goal oriented
18
Q
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
know what they
want and focus
on
achieving it.
A
determined and persevered
19
Q
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
motivated by setting and achieving challenging goals.
A
set high standard
20
Q
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
Think of new ways to market their business are always looking solutions to problems.
A
creative
21
Q
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
Not afraid to make quick decisions when neccesary to beat their competitors.
A
able to act quickly
22
Q
UNIQUE CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS.
Emerge in technology that can help the business activities run efficiently.
A
updated with technology
23
Q
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS ARE THEIR OWN
BOSSES.
A
ADVANTAGE
24
Q
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS CAN CHOOSE A
BUSINESS THAT INTEREST THEM.
A
ADVANTAGE
25
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS CAN BE CREATIVE.
ADVANTAGE
26
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS CAN MAKE LARGE
SUMS OF MONEY.
ADVANTAGE
27
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURSHIP IS RISKY.
DISADVANTAGE
28
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS FACE UNCERTAIN
AND IRREGULAR INCOMES.
DISADVANTAGE
29
ADVANTAGE OR DISADVANTAGE?
THEY WORK LONG HOURS.
DISADVANTAGE
30
ADVANTAGE OR DISADVANTAGE?
ENTREPRENEURS MUST MAKE ALL
DECISIONS THEMSELVES.
DISADVANTAGE
31
CHARACTERISTICS OF GOOD TEAM MEMBERS.
___ to achieve team goals and willing to work hard to achieve it.
committed
32
CHARACTERISTICS OF GOOD TEAM MEMBERS.
have the right skills needed to get the job done & help
accomplish team goals.
competent
33
CHARACTERISTICS OF GOOD TEAM MEMBERS.
can share ideas in both oral and written form.
communication
34
CHARACTERISTICS OF GOOD TEAM MEMBERS.
work well with others and know that they will not
always get their ways.
cooperation
35
CHARACTERISTICS OF GOOD TEAM MEMBERS.
able to look at thing from a different perspective &
suggest new ways to do things.
creative
36
How do you set goals?
Goals should answers the “What?” “Why?” and “How?”
specific
37
How do you set goals?
Goals should establish ways to measure your progress
measurable
38
How do you set goals?
Goals should not be too far out of reach
attainable
39
How do you set goals?
Goals should represent things to which you are willing
to commit.
realistic
40
How do you set goals?
Goals should have a timeframe for achievement.
timely
41
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
42
is all of the processes-planning, pricing,
promoting, distributing, and selling-used to
determine and satisfy the needs of customers and
the company
marketing
43
Uses the needs of customers as the
primary focus during the planning,
production, distribution, and promotion
of product or service
marketing concept
44
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
```
45
It is a blending of the product,
price, distribution, and promotion
used to reach a target market.
marketing mix
46
It is a plan that
identifies how the goals
of your business will be
achieved
marketing strategy
47
In your startup marketing
plan, your strategy should
address:
(NEED TO MEMO)
```
○ Product introduction
○ Pricing
○ Distribution
○ Promotion
○ Sales or market share
○ Projected profitability
```
48
ensures that the marketing you do
today fits in with the vision you have
for your business.
marketing goals
49
```
Are what you
want your
business to
achieve in the
next year
```
short term goal
50
```
describe what
you want your
business to
achieve in the
next two to five
years.
```
medium term goal
51
```
Show where
your business
will be 5, 10,
and even 20
years from
now.
```
long term goal
52
```
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
53
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
54
is the belief that the wants and needs
of customers are the most important
consideration when developing any
product or marketing effort
marketing concept
55
the different products
and services a business
sells
product mix
56
• These are the characteristics of the
product that will satisfy customer needs.
• Includes color, size, quality, warranties,
deliveries, and installations
product features
57
is the name, symbol, or design used
| to identify your product
brand
58
is the box, container, or wrapper
| in which the product is placed
package
59
is where the information about the
| product is given on the package
label
60
is creating an image for a
| product in the customer’s mind.
positioning
61
It is the actual amount a customer pays for a
| product or service
price
62
Pricing Objectives:
MDEI
* Maximize sales
* Discourage competition
* Establish an image
* Increase profits
63
Refers to the costs of making and marketing the
| product
investment
64
it is the amount earned as a result of the
investment and is usually expressed as a
percentage
return of investment
65
it is a business’s percentage of the total sales
| generated by all companies in the same market.
market share
66
involves establishing informal ties with people who can help your business grow
networking
67
pricing that is determined by how much customers
| are willing to pay for a product or service
demand-based pricing
68
It is determined by using the wholesale cost of an
| item as the basis for the price charged
cost-based pricing
69
is determined by adding a percentage
| amount to the wholesale cost of an item.
markup price
70
is determined by subtracting a
| percentage amount from the retail price of an item
markdown price
71
it is a pricing that is determined by
considering what competitors charge for the same
good or service
competition-based pricing
72
The price to charge for services can be determined by the
| amount of time it takes to complete the service.
time-based pricing
73
services can be bundled, or combined under one charge, rather
than making the customer pay for each individual part of the
service.
bundling
74
is the process of selling your idea to a
company for the development and launch of a new
product
licensing
75
Used when a product is new and unique, starts with
a high price to recover the costs involved in
developing the product.
price skimming
76
Uses a low introductory price with the goal of
| building a strong customer base
penetration pricing
77
It is based on the belief that certain prices
have an impact on how customers perceive a
product
psychological pricing
78
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
79
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
80
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
81
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
82
Offers customers a reduced price.
| Used to encourage customers to buy.
discount pricing
83
are reductions on base price given to customers for
| paying cash or within some short time period.
cash discounts
84
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
85
are price reductions given for out-of-season
| merchandise—snowmobiles discounted during the summer, for example
seasonal discounts
86
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
87
3 kinds of pricing strategies:
1. introductory pricing
2. psychological pricing
3. discount pricing
88
```
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
89
involves a desire for material goods and
| services. They are the basis of an economy.
economic wants
90
the desire for
| nonmaterial things
noneconomic wants
91
are the means through which goods
| and services are produced.
economic resources
92
Raw materials supplied by nature
natural resources
93
People who create goods and
| services.
human resources
94
Assets used in the production of
| goods.
capital production
95
The willingness and
ability to take risks and
make decisions for the
business.
Entrepreneurship
| or Enterprise
96
```
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
97
Entrepreneurs play an
important role in supplying
goods and services to meet
the demands of consumers
supply and demand
98
The role of
entrepreneurs in
the U.S. economy:
1. Supply and Demand
2. Capital Investment and
Job Creation Job Creation
3. Change Agents
99
Entrepreneurs are investing in
their Communities by
contributing to the local
economy and providing jobs.
Capital Investment and
| Job Creation Job Creation
100
Many entrepreneurs create
products that change the way
people live and conduct
business.
Change Agents
101
What are the 4 types of Economic Systems:
1. Command Economy
2. Market economy
3. traditional economy
4. mixed economy
102
the government determines what, how, and
for whom products and services are
produced.
command Economy
103
Individuals and businesses decide
what, how and for whom goods and
services are produced.
market economy
104
Goods and services are produced the
| way they have always been produced
traditional economy
105
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
106
the private ownership of resources by
| individuals rather than the government.
capitalism
107
The U.S economic system is based on four basic
| principles:
1. private property
2. freedom of choice
3. profit
4. competition
108
A U.s Citizen can
own, use, or
dispose of things
of value.
private property
109
You can make decisions
independently and must
accept the consequences
of those decisions.
freedom of choice
110
The difference between the
revenues earned by a
business and the cost of
operating the business.
profit
111
The rivalry among
businesses to sell their
goods and services.
competition
112
```
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
113
is the
value of the next-best
alternative (the one you
pass up)
Opportunity Cost
114
Functions of Businesses:
PMMF
Production
Marketing
Management
Finance
115
```
The primary reason a
business exists in a
market economy is to
provide products or
services to consumers
and earn a profit.
```
production
116
```
All business in a market
economy need to complete
marketing activities in order
to make their products and
services available to
consumers.
```
marketing
117
```
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
118
determining the amount of
capital needed for the
business and how the capital
will be obtained.
finance
119
is the quantity of a good or
service a producer is willing
to produce at different
prices.
supply
120
is the quantity of a good or
service that consumers are
willing to buy at a given
price.
demand
121
When a demand for a product is affected by its
| price.
demand elasticity
122
change in prices
creates a change in
demand.
elastic demand
123
change in price creates
very little change in
demand.
inelastic demand
124
the point at
which the supply and
demand curves.
equilibrium price and quantity
125
are costs
that must be paid regardless
of how much of a good or
service is produced.
fixed cost
126
are costs
that go up and down depending
on the quantity of the good or
service produced.
variable cost
127
Consists of a very large number
of businesses producing nearly
identical products and has many
buyers.
perfect competition
128
has a large number of
independent businesses that
produce goods and services
that are somewhat different.
monopolistic competition
129
Dominated by a small
number of businesses that
gain the majority of total
sales revenue.
oligopoly
130
```
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
