Business Types, Marketing, and Economic Resources: Key Concepts for Students
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89 Terms
What is a Brick and Mortar business?
A physical store where customers visit in person to buy goods or services
What is an Online business?
A business that sells goods or services over the internet
One advantage of a Brick and Mortar business?
Customers can physically see and try products
One disadvantage of a Brick and Mortar business?
Higher operating costs like rent and utilities
One advantage of an Online business?
Can reach customers worldwide with lower costs
One disadvantage of an Online business?
Customers cannot physically inspect products before buying
What are 3 characteristics of a successful entrepreneur?
Creative, risk-taking, and good leadership
What does the Price element of marketing refer to?
How much customers pay for a product
What does Promotion refer to in marketing?
How a business advertises and communicates with customers
What does Place refer to in marketing?
Where and how products are sold
What does Product refer to in marketing?
The goods or services offered to customers
What is a SWOT analysis?
A tool used to identify strengths, weaknesses, opportunities, and threats
What is a strength in SWOT?
An internal advantage of the business
What is a weakness in SWOT?
An internal disadvantage of the business
What is an opportunity in SWOT?
An external factor that could help the business grow
What is a threat in SWOT?
An external factor that could harm the business
One strength of Brooklyn Bakes?
High-quality products and excellent customer service
One weakness of Brooklyn Bakes?
Lack of modern baking technology and poor workplace culture
One opportunity for Brooklyn Bakes?
Expanding to new locations and offering low-sugar products
One threat for Brooklyn Bakes?
Competitors with better technology
What are economic resources?
The resources used to produce goods and services
What are the 4 types of economic resources?
Land, labour, capital, and enterprise
Example of land as a resource?
Farmland or natural resources
Example of labour as a resource?
Workers and employees
Example of capital as a resource?
Machinery and equipment
Example of enterprise as a resource?
Business owners taking risks
What is the difference between needs and wants?
Needs are essentials for survival, wants are things people desire but can live without
Why is accounting important?
It helps businesses track money, make decisions, and measure performance
What is the role of the primary sector?
Extracts raw materials from nature
What is the role of the secondary sector?
Manufactures goods from raw materials
What is the role of the tertiary sector?
Provides services to consumers
What is the role of the quaternary sector?
Provides knowledge and technology-based services
What is the role of the quinary sector?
High-level decision making and leadership roles
What is an import?
Goods or services bought from another country
What is an export?
Goods or services sold to another country
What is the law of demand?
As price increases, demand decreases
Example of the law of demand?
If iPhone prices rise, fewer people buy them
What is the law of supply?
As price increases, supply increases
Example of the law of supply?
If coffee prices rise, businesses produce more coffee
What is opportunity cost?
The next best alternative given up when making a choice
What is inflation?
A general increase in prices over time
What is equilibrium?
The point where supply equals demand
What is supply?
The quantity producers are willing to sell
What is demand?
The quantity consumers are willing to buy
What is relative scarcity?
Limited resources compared to unlimited wants
What is a surplus?
When supply is greater than demand
What is a shortage?
When demand is greater than supply
What does GDP stand for?
Gross Domestic Product
What does GDP measure?
The total value of goods and services produced in a country
What happens to demand for iPhones if a new Samsung Galaxy is released?
Demand for iPhones decreases
What are the 4 steps in the accounting process?
Source documents, recording, reporting, and analysis
What is an asset?
Something a business owns
What is a liability?
Money a business owes
What is revenue?
Money earned by a business
What is an expense?
Costs incurred by a business
What is owner's equity?
The owner's financial interest in the business
What is accounting?
The process of recording, reporting, and analysing financial information
Why is accounting important for decision making?
It helps businesses plan, budget, and monitor performance
Credit sales classification?
Revenue
Electricity classification?
Expense
Wages classification?
Expense
Car classification?
Asset
Shop building classification?
Asset
Capital classification?
Owner's Equity
Cash sales classification?
Revenue
Drawings classification?
Owner's Equity
Advertising classification?
Expense
Insurance classification?
Expense
Loan classification?
Liability
Cash at bank classification?
Asset
Bank overdraft classification?
Liability
Telephone bill classification?
Expense
Accounts payable classification?
Liability
Inventory classification?
Asset
What is a current asset?
An asset expected to be used or converted into cash within 12 months
What is a non-current asset?
An asset kept and used for longer than 12 months
Example of a current asset?
Cash at bank or inventory
Example of a non-current asset?
Machinery or motor vehicle
What is GST in Australia?
Goods and Services Tax of 10%
What is recorded in the Cash Receipts Journal?
All cash received by the business
What is recorded in the Cash Payments Journal?
All cash paid by the business
What is an Income Statement?
A report showing revenues, expenses, and profit
What is a Balance Sheet?
A report showing assets, liabilities, and owner's equity
What is net profit?
Revenue minus expenses
Formula for owner's equity?
Assets minus liabilities
What are current liabilities?
Debts due within 12 months
What are non-current liabilities?
Debts due after more than 12 months
One strategy to increase business profit?
Reduce expenses
Another strategy to increase business profit?
Increase sales through marketing