MSB 201 Final Study Notes

These flashcards cover key terms and concepts from the MSB 201 Final study notes, including definitions of economic principles, marketing strategies, financial statements, and ethical considerations in business.

For-profit Organizations

Organizations that strive to make a profit by providing and selling products and services desired by their customers.

Not-for-profit organizations

Organizations that exist to achieve some goal rather than to make a profit.

Factors of Production

Natural resources, labor, capital, entrepreneurship, and knowledge.

Productivity equation

Productivity = Output/Input.

Economies of scale

The cost advantage that a firm experiences when it increases its level of output.

Microeconomics

The study of decisions and actions of individual agents like households, workers, and businesses.

Macroeconomics

The study of the economy as a whole, focusing on broad issues such as growth, unemployment, inflation, government deficits, and levels of exports and imports.

Circular flow diagram

A visual model of the economy that shows how dollars flow through markets among households and firms.

Product market

The market in which households purchase the goods and services that firms produce.

Labor market

The market in which households sell their labor as workers to business firms or other employers.

Key dimensions of ethics

Include critical aspects of business ethics, ethical decision-making, and ethical leadership.

Marriott School of Business Vision

To transform the world through Christlike leadership.

MSB Guiding principle

Centered on students.

Capitalism

An economic system based on investment of money (capital) for profit.

4 P's of Marketing

Product, Price, Place, Promotion.

Consumer Products

Products purchased by the ultimate consumer.

Consumer nondurables

Goods like food and clothing that have a short lifespan.

Consumer durables

Goods that can be used repeatedly over a period of time, such as cars and household appliances.

Stages of Product Life Cycle

1. Introduction, 2. Growth, 3. Maturity, 4. Decline.

Balance sheet

A financial statement that reports assets, liabilities, and owner's equity on a specific date.

Income Statement

A financial statement showing the revenue and expenses for a fiscal period.

Three financial statements

Income statement, balance sheet, statement of cash flows.

Debt financing

Funds raised through various forms of borrowing that must be repaid.

TVM

Time value of money.

Annuity

A financial security that pays a fixed stream of cash flows.

ROI

Return on investment.

Porter's Five Forces

Framework for analyzing the competitive forces within an industry: threat of entry, threat of substitutes, supplier power, buyer power, and competitive rivalry.

Experience

Consciousness of ongoing interaction.

Desired reactions

The end goal of all touchpoints.