Intro to Business Midterm/Final Review

Although missing a few (8) terms, holds most of the terms needed for the Business Midterm/Final (semester class)

Needs

goods or services that are required and cannot be done without; essential for survival

Wants

goods or services that are not a necessity but we desire/wish for

Business

any activity that seeks to provide goods and services to others while operating at a profit

Profit

the financial gain made in a transaction

Competition

the struggle among producers for the dollars of consumers

Market Research

the activity of gathering information about consumers' needs and preferences

Role of Consumer

determine which products are ultimately produced

Scarcity

A situation in which unlimited wants exceed the limited resources available to fulfill those wants

Supply and Demand Equilibrium

the price at which quantity demanded equals quantity supplied (quantity demanded and supplied at equilibrium price)

Business Cycle

Fluctuations in economic activity, such as employment and production

Rewards and Challenges of Entrepreneurship

time management, choosing employees, choosing products, risky, recognition, you get all the profit

Sole Propreitorship

a business owned by one person

Partnership

a business in which two or more persons combine their assets and skills

corporation

a business owned by stockholders who share in its profits but are not personally responsible for its debts

“Being In The Market”

an interest in buying something

Marketing Mix

Product, Price, Place, Promotion

Demographics

statistical data relating to the population and particular groups within it

Psychographics

the use of psychological, sociological, and anthropological factors to construct market segments

Geographics

segmentation of the market based on where people live

Buying Behaviors

the decision process and actions of consumers as they buy and use services and products

Purpose of a Checking Account

convenient access to your funds without the stress and fees often associated with a cash-only system

How to Write a Check

Fill out today's date on the short line on the top right side of the check, fill in the number amount in letters and numbers, and remember to fill in all the space, write the receiver’s name,and sign it

What is a Check Register

your own record of transactions related to your checking account

Basics of a Savings Account

allows you to deposit your money and typically earn a modest amount of interest

Loans

amounts of money borrowed which will accumulate interest

Types of credit

Credit card, installment loan, student loan, mortgage

Applying for Credit

5 C’s: Character (best credentials and references, responsibility, timeliness), Capacity (borrowing history and track record of repayment, will you be able to repay and can you handle it), Capital (do you have enough money), Conditions (not very sensitive to economic downturns, can manage productivity and expenses), Collateral (alternate source of repayment if cash flow doesn’t work: hard assets eg real estate and office or manufacturing equipment)

Credit History

a summary of a person's borrowing and repayment history

Down Payment

an initial payment made when something is bought on credit. for a home, typically 20%.

Bankruptcy

a legal process to get out of debt when you can no longer make all your required payments

Identity theft

a crime that involves someone pretending to be another person in order to steal money or obtain benefits

Spam

unwanted e-mail (usually of a commercial nature sent out in bulk)

Phishing

sending fraudulent communications (emails/messages etc) that seem legitimate or reputable to steal sensitive information, money, or install malware.

Stocks

a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Investing

committing money in the hope that it will make more money over time.

Rule of 72

the number of years it takes for a certain amount to double in value is equal to 72 divided by its annual rate of interest.

PYF

Pay Yourself First - whenever you receive money, you should immediately put a certain amount of it into some sort of savings account.

Risk vs Reward

The higher the risk, the higher the reward. The more risky investments you make, the more potential you have for losing money.

SMART Goals

specific, measurable, attainable, realistic, and timely goals

Delayed Gratification

waiting until you know you can afford something

Opportunity Cost

the most desirable alternative given up as the result of a decision

Cash Flow

movement of the money you receive and the money you spend.

Fixed Expenses

costs that do not change from month to month

Variable Expenses

costs that vary in amount and type, depending on the choices you make

Period Expenses

Those expenses that are indirectly related to the total effort needed to achieve the sales of goods and/or services. These expenses include such things as marketing, research and development and general administrative expenses; also called period costs.