Entrepreneurship

ROI stands for

Return on investment

Someone who is risk averse…

Avoids risk

Maggie has decided…

Opportunity cost

What economic system best serves entrepreneurs and the entrepreneurial spirit

Free market economy

THE LAW OF __ states that the quality purchased varies inversely with prices. In other words, the higher the price, the lower the quantity demanded

demand

THE LAW OF __ is the microeconomic law that states…

supply

During the __ stage of the product life cycle, sales decrease. If the sales drop rapidly, it may be time to stop producing the product.

decline

Which of the following is NOT a substitute for a brand new car?

A New home

Which of the following is a compliment to a cheesebruger

ketchup

When buying an existing business, the buyer takes ownership of all assists of the business, to include equipment, copyrights, patents, and trade marks

True

Corporations and LLC’s have __ liability

limited

Sale promotions and parternships have __ liabilities

unlimited

A business plan is a statement of your business goals, the reasons you think these goals can be met, and how you are going to achieve them

True

SWOT analysis is a tool that businesses use to throughly analyze their business. SWOT stand for __

Strengths, Weaknesses, Opportunities, Threats

Wholesalers and retailers are examples of __ distribution channels

indirect

A cost based pricing strategy focuses on what someone is willing to pay for your product or service

False

How you distribute your product could greatly influence the price of your product

True

When thinking of place (4Ps) we are really identifying what our distribution channels will be

True

__ Channels are a pathway in which product goes from the producer to one or more intermediaries before it reaches the consumer

Indirect

Brands can be easily imitated by new companies

False

Competitive pricing strategies focus on how the competition is pricing their products. If this pricing strategy is used, competitors prices must be closely monitored

True

Rent is a __ expense

Fixed

Utility bills such as gas or electric bills are considered __ variable expense

__ is the study of HOW people use their limited resources to satisfy their unlimited wants

Economics

Most are tangible items. _are not, meaning that can’t be possessed, touched, or stored

Goods , Services

Factories, Building, equipment, and ideas generated from employees are all considered

capital

__ can be summed as the idea that we have UNLIMITED WANTS and LIMITED RESOURCES

Scarcity

Necessities tend to be

inelastic

Luxuries tend to be

Elastic

The point at which the quantity of demand equals the quantity of supply is the

equilibrium price

An inferior good is a good that consumers demand of when their incomes _

more - decrease

Which one is not a cause of a demand curve shift

change of cost of inputs

Which is a supply curve shift to the left

D

If the supply curve shifts (changes) to the left, the

Ep increases and Eq decreases

The acronym S.M.A.R.T. is used for setting goals What does the M stand for?

Measurable

When the demanded is greater than the amount supplied, the economic condition is a

shortage

If the price of green beans increases by 20% and the quanity demanded decrease by 20%, the demand curve would be considered_

unitary

During the __ stage of the product life cycle, product sales are no longer increasing quickly, but they are not decreasing quickly. The market is saturated and competition for customers is very intense.

maturity

All of the following are pricing factor except__

Income tax rate

Salaries are considered to be __ expenses

Fixed

__ consists of the businesses, people, and activited involved in turning raw materials into products and delievering them to end users

supply chain

A(n) __ distributation channel is one in which a product goes straight from the producer to the consumer

direct

__ utility is having products available WHEN they are needed

Time

The cost of winning a customer to purchase a product or service is known as the__

customer acquisition cost

The __ is the ratio of customers that return to do business with your company

retention rate

__ is the process of indexing a website to rank it higher on the list when a search is conducted on a search engine such as google

Search engine optimization

The 4 stages of the buying process use the acronym AIDA. AIDA stands for

Attention, interests, desire, action

Features, quality, durability, price, and design are all examples of __ buying motives

rational

The four main functions of business are

Marketing, Finance, production, managemnt

The 4ps of marketing are…

Product, Price, Place, Promotion