Unit 1 business

Question 1

What is a bricks and mortar business?

Answer 1

Customers go to a building to buy a product or service.

Question 2

What does SMB stand for?

Answer 2

Small medium sized business.

Question 3

What defines an SMB?

Answer 3

An SMB is a business that employs less than 500 people.

Question 4

What are needs?

Answer 4

Things you need in order to survive, such as food, shelter, and light.

Question 5

What are wants?

Answer 5

Something you can live without but desire to have for happiness, such as money, jewelry, and perfume.

Question 6

What are goods?

Answer 6

A product that can be seen and touched and has monetary value.

Examples include phone and car.

Question 7

What are services?

Answer 7

An activity or advice that has monetary value and is intangible.

Examples include haircuts and taxis.

Question 8

What are goods and services?

Answer 8

Some businesses offer both goods and services. For example, when a car battery dies, the owner gets a new battery (good) and a person installs it (service).

Question 9

What are essential goods and services?

Answer 9

Those goods and services that you need.

Question 10

What are luxury goods and services?

Answer 10

Goods and services that you want.

Question 11

What is profit?

Answer 11

If your revenue is higher than your expenses, you have a profit; if your expenses are higher than your revenue, you have a loss.

Question 12

What is breakeven?

Answer 12

When revenue equals expenses.

Question 13

What is revenue?

Answer 13

Money earned from the sale of goods and services, fees, investment interest, and other business activities.

Question 14

What are expenses?

Answer 14

Costs such as wages/salaries, supplies, and advertising.

Question 15

What is gross profit?

Answer 15

The total amount of income earned before paying for expenses.

Question 16

What is net profit?

Answer 16

Income earned after all expenses are paid.

Question 17

What are the forms of business ownership?

Answer 17

They include profit or non-profit, sole proprietorship, partnership, corporation, and franchises.

Question 18

What is a sole proprietorship?

Answer 18

Owned by one person, allowing them to be their own boss and control the business.

Advantages include easy startup; disadvantages include unlimited liability.

Question 19

What is a partnership?

Answer 19

Owned by two or more people who share responsibilities and profits/losses.

Advantages include shared responsibilities; disadvantages include partner disagreements.

Question 20

What is a corporation?

Answer 20

Owned by shareholders but exists separately from them.

Advantages include limited liability; disadvantages include complex startup.

Question 21

What is a franchise?

Answer 21

A business licenses another to use its name and operating procedures.

Advantages include brand recognition; disadvantages include expensive purchase.

Question 22

What is unlimited liability?

Answer 22

The owner’s personal assets are at risk if the business does poorly.

Question 23

What is limited liability?

Answer 23

If the business fails, the owner’s personal assets cannot be used to pay for the company’s debts.

Question 24

What is supply?

Answer 24

The quantity of a good or service that businesses are willing to provide within a range of prices.

Question 25

What is the Law of Supply?

Answer 25

As prices increase, producers will supply more goods and services.

Question 26

What affects demand?

Answer 26

Income, taste, expectations, and population.

Question 27

What is the price effect on supply and demand?

Answer 27

Demand goes up and supply goes down, the price will go up; Demand goes down and supply goes up, the price will go down.

Question 28

What is an opportunity?

Answer 28

A current need, want, or problem that can be satisfied or solved.

Question 29

What is an idea?

Answer 29

A specific new venture to satisfy or solve an existing opportunity.

Question 30

What is innovation?

Answer 30

Changing or improving an existing item, technology, or process to satisfy an existing need or want.

Question 31

What is invention?

Answer 31

Creation of a new and unique item, technology, or process to satisfy an existing need or want.

Question 32

What are motivations of entrepreneurs?

Answer 32

Personal satisfaction, financial rewards, helping others, and being your own boss.

Question 33

What are characteristics of an entrepreneur?

Answer 33

Management, planning, organization, and independence.

Question 34

What are the six factors that influence buying?

Answer 34

Income and price, quality, convenience, service, variety, and warranty.

Question 35

What is status in consumer behavior?

Answer 35

Some people buy goods because neighbors or friends have them, even if they can't afford them.

Question 36

What are current trends in consumer behavior?

Answer 36

Clothing trends often indicate status or popularity.

Question 37

What are customs and habits in consumer behavior?

Answer 37

Special occasions and habits can increase consumer spending.

Question 38

What is safety in consumer products?

Answer 38

Product safety is a major public issue, especially for cars and children's items.

Question 39

What is promotion in marketing?

Answer 39

Advertising and promotion are designed to influence consumer spending.

Question 40

What are ethics in business?

Answer 40

Rules that help us differentiate between right and wrong.

Question 41

What is corporate social responsibility (CSR)?

Answer 41

Addresses legal, ethical, commercial, and other expectations society has for business.

Question 42

What is a whistleblower?

Answer 42

An employee who informs officials or the public about a legal or ethical violation at their company.