Final study guide Flashcards
(34 cards)
What is a sole proprietorship?
A business owned by one person
What are 3 advantages and disadvantages of a sole proprietorship?
Advantages
No splitting profit
Full control
Tax benefits
Disadvantages
Liability
Larger workload
Hard to grow and expand
What is a Partnership?
A business owned by 2 or more people.
What are 3 advantages and disadvantages of a partnership?
Advantages
More creativity available
Less workload
Greater starting funds
Disadvantages
Splitting profits
Liability
Possible fighting
What is a Corporation?
A legal entity that is separate and distinct from its owners.
What are 3 advantages and disadvantages of a corporation?
Advantages
No personal liability
Easier to grow (can sell stock)
Unlimited life span of the business
Disadvantages
Slow to change
Government is in your business
Expensive to start
What does a partnership agreement do?
It is like a prenup for your business. It tells a judge what will happen if your business fails, if someone wants out of the business, or if someone dies.
Give an example of a formula used in a spreadsheet to add up a column of numbers.
=SUM(C1:C6)
Give an example of a formula used in a spreadsheet to multiply 2 cells of numbers in different columns?
=SUM(C2*H2)
If you hover over the blue dot in the lower right hand corner of a cell, the dot will change into a ________, which allows you to click and drag the formula down the column. What symbol does the dot change into?
black cross
What is company stock?
It’s a share of the ownership of a company
What is a franchise?
It is a business arrangement where a franchisor will license a companies brand, business model, and other methods to another person or company (the franchisee) and have them run the business under the franchisor name.
What is overhead?
The cost of business before a product is even sold.
What is profit?
The positive amount of income a business retains after paying all expenses associated with the operation of the business.
What are assets?
It is anything you own that holds monetary value
What are goods and services?
Goods are tangible items you can touch. Services are one time consumable benefits.
Example of Goods
Apples, computers, fridge
Example of services
Plumber, dentist, hair stylist
What are the 4 Ps of the marketing mix?
Product
Place
Promotion
Price
Define the 4 Ps of the marketing mix.
Product- Item or service being sold
Place- How the product gets to the consumer
Promotion- How the product to communicated to a consumer
Price- How much the customer pays for a product
What 2 main types of channels of distribution are there? Explain the difference.
Direct and indirect
Direct: When the seller delivers the product or service directly to customers
Indirect: Multiple distribution partners distribute the goods and services from sellers to customers.
What is the accounting equation?
A=L+OE
Assets = liabilities + owners equity
What do you want for:
Current Ratio
Working Capital
Debt Ratio
Net Profit Margin
High current ratio
High working capital
Low debt ratio
High net profit margin but compare to others
When thinking about technology, list 2 advantages and disadvantages.
Advantages
Convenience
Levels the playing field between big and small businesses
Disadvantages
Information breaches
Lack of interaction with people
