buisness

Want

Something that someone would like to have, but don't actually need to live.

Need

Something that someone must have in order to live and thrive.

Monopoly

A dominant position of an industry or a sector by one company, to the point of excluding all other viable competitors.

Capitalism

An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.

Monarchy

Undivided rule or absolute sovereignty by a single person (usually a king or queen).

Profit

Money that is earned after expenses are taken out.

Revenue

The proceeds a company generates from selling goods or services to its customers.

Expenses

Things that a business needs to spend money on in order to operate their business.

Profit Formula

The formula for profit is: Revenue - Expenses = Profit.

Top Reason Businesses Fail

Lack of Money.

Common Mistake Business Owners Make

They try to do too much by themselves.

Top 3 Reasons People Start Businesses

1-To be their own boss, 2-To make as much money as possible, 3-To do something that they love.

4 Functions of Management

Planning, Organizing, Leading, Controlling.

Control Process Steps

1. Feed Forward Control: Solve problems before they occur. 2. Concurrent Control: Solve problems as they occur. 3. Feedback Control: Solve problems after they occur. 4. Bureaucratic Control: Involves policies, procedures, budgets, and supervisions to observe behavior.

Break Even Point

When total revenue equals total costs.

Competitive Advantage

The ability to outperform rivals.

Reward Power

If you do what I ask, I'll give you a reward.

Vision

A clear sense of the future.

Democratic Style

Encourages participation with an emphasis on both task accomplishments and development of people.

Motivation

The willingness to exert effort to reach organizational goals, conditioned by the effort's ability to satisfy some individual need.

Leadership

The process of inspiring others to work hard to accomplish important tasks.

Power

The ability to get someone else to do something you want done.

CEO

Chief Executive Officer.

Board of Directors

A group of people responsible for company rules, performance and finances.

Networking

The action of making connections between people and positive relationships.

Ethics

A set morals and standards of what is 'good' and right behavior in organizations.

Frederic Taylor

Known as the Father of Scientific Management.

Max Weber

Known for the 5 features of Bureaucracy.

Henri Fayol

Known for the 5 Rules of Management.

Charles Clinton Spaulding

Known for 'Eight Necessities' of Management.

Douglas McGregor

Known for Theory X and Theory Y.

Unity of Command

The principle states that workers should receive orders from one boss.

Hawthorne Effect

The tendency of persons singled out for special attention to perform as expected.

Debt

The state of owing money.

Accounting Equation

States that a company's total assets are equal to the sum of its liabilities and its shareholders' equity.

Creditor

An entity (person or institution) that extends credit by giving another entity permission to borrow money intended to be repaid in the future.

Liabilities

Creditors claims to the assets of a business. (They are the debts of a company).

Equity

The difference between what the value is, and what you owe.

Risk

Uncertainty of achieving a specific result.

Distribution

A withdrawal of money from a retirement savings vehicle.

Diversification

The practice of purchasing a wider variety of investments in order to mitigate the risk associated with any single investment.

Volatility

The tendency to vary greatly; refers to the frequency with which investment tends to rise and fall in value and the amount of variation in value; part of the measure of risk.

Capital Gain

Growth of earnings.

Contribution

A deposit of money into a retirement savings vehicle.

Mutual fund

A product that allows a group of investors to pool money together and invest as a group in a wide variety of securities, most commonly stocks and bonds.

Compound interest

When you earn interest on both the money you've saved and the interest you earn.

Conservative

A descriptive term applied to investors, fund managers or investments: associated with lower levels of investment risk and less volatility.

59 ½

If you are still working, the earliest you can withdraw money from your 401k plan without a penalty or hardship.

The Rule of 72

Divide 72 by the Average % of gain to get the amount of years your money will double. Example 72/8%=9 years.

Dow Jones Industrial

The leading stock market index in the U.S.; averages the value of 30 component stocks (blue chip stocks).

Market Capitalization

How much a company is worth based on the number of outstanding shares, and the price per share.

Market Capitalization Formula

The amount of outstanding shares x the price per share. Example: 1,000,000 outstanding shares x $82 a share= $82,000,000.

Dividends

A payment made out of the company's profits to its shareholders.

401k

A retirement plan in which an employee contributes a portion of their salary. The employer also contributes a portion of the employee's salary.

The 4 Ps of Marketing

Product, Price, Place, Promotion.

Marketing Mix

The name of the 4 Ps of Marketing.

S.W.O.T Analysis

Strengths, Weaknesses, Opportunities, Threats.

SMART Goals

Must fulfill all of the following: Specific, Measurable, Achievable, Relevant, Timely (Time-Bound).

Product life cycle

The 4 stages of the product life cycle in order: 1-Introduction, 2-Growth, 3-Maturity, 4-Decline.

Endorsement

When a well-known person expresses approval or support of a product or service. This person is paid for their support.

Corporate sponsorship

A form of marketing in which a company pays for the right to be associated with a project or program.

Slogan

"A catchphrase representing a product and a company, communicating the key message you want consumers to associate with your brand."

Logo

The graphic representation of a company's name.

Trademark

The legal protection of words and symbols used by a company. Logos and slogans used by companies are usually trademarks.

Marketing Concept

When a business keeps the focus on satisfying customer needs.

Mass Marketing

An attempt to appeal to a large, general group of consumers. Examples are Coca Cola, McDonalds and Crest toothpaste.

Market Share

The percentage of total sales in an industry generated by a company. Heinz Ketchup, Crayola, and Apple are examples of companies that have high market share in their industries.

Profit Motive

The motivation of firms that operate so as to maximize their profits.

Brand

The name, symbol, logo, word, or design that identifies a product, service, or company.

Imports

Goods and services that one country buys from another country.

Exports

Goods and services that one country sells to another.

Balance of Trade

The difference in value between a country's imports and exports over a period of time.

Trade Surplus

The amount by which the value of a country's exports exceeds the cost of its imports.

Trade Deficit

The amount by which the cost of a country's imports exceeds the value of its exports.