Applied Economics Lesson 5: Principles, Tools, and Techniques in Creating a Business

50 fill-in-the-blank practice flashcards covering business principles, evaluation tools, and competitive concepts from Applied Economics Lesson 5.

The driving forces that make a business successful are known as the __________ in creating a business.

principles

__________ is the capability of a company to sustain or improve its performance in terms of profitability or efficiency when its sales volume increases.

Scalability

Scalability is the capability of a company to sustain or improve performance when its __________ increases.

sales volume

The principle of __________ states that a business is no more effective than the idea upon which it is built.

Big Ideas

Under the principle of Big Ideas, a business creates its own plan to expand its __________ growth.

economic

Under the principle of __________, a business is a structure in which all parts contribute to the success or failure of the whole.

Systems

In a business system, everything must work together from employee to __________.

president

__________ refers to the capability of a business to be dynamic and thrive through all economic conditions in all markets.

Sustainability

According to the principle of Sustainability, __________ is the key to survival.

differentiation

Without continued __________, business operations will stagnate.

growth

Stagnation from a lack of growth can result in lowered standards of quality, decreased customer service, and poor employee __________.

morale

A business must manifest the higher purpose upon which it was seeded under the principle of __________.

Vision

Under the principle of __________, a business is the fruit of a Higher Aim in the mind of the person who conceived it.

Purpose

Purpose states that a business is the fruit of a __________ in the mind of the person who conceived it.

Higher Aim

The principle of __________ states that a business is not part of the owner's life, but is, in fact, its own entity.

Autonomy

Under Autonomy, a business is not part of the owner's life, but is, in fact, its own __________.

entity

The principle of __________ describes a business as an economic entity creating an economic certainty for communities.

Profitability

A business creates a __________ against which all businesses are measured as either successful, or not.

standard

Businesses should look to innovations in __________ to solve day-to-day inconveniences and increase efficiency.

technology

To fuel efficiency, hold a brief meeting standing up every __________ where each person explains what they are going to work on.

morning

Brief standing meetings ensure everyone is on the right track and not wasting time on __________ tasks.

non-urgent

Office space can involve a big outlay for __________, but smarter thinking can make a real difference.

SMEs

__________ keeps your business top of mind so consumers think of it when they require or need a service or product.

Advertisement

Business owners can improve efficiency by making small changes to the way they handle their company's __________.

expenses

When managing cash flow, the standard business rule is "Cash is __________ not profit".

King

Keeping a firm grip on cash flow requires ensuring the right management of your inflow and outflow of __________.

cash

The growing trend towards mobile and flexible working means that employees are permanently __________ and on the go.

connected

According to Allan (2013), being more efficient is probably __________ mindset.

90%

The shorter the amount of time you allow yourself, the __________ you will get done.

more

Businesses need __________ because it helps cover the costs associated with property damage and liability claims.

insurance

Insurance helps cover costs associated with property damage and __________ claims.

liability

In the hectic process of starting up a business, founders often put off sorting out __________ matters until later or not at all.

legal

Industry rivalry among companies of the same or related industry is an __________ part of the business world.

inevitable

Intense competition leads to __________ profit potential for companies in the same industry.

reduced

Businesses seek constantly to achieve a __________ advantage over competitors.

competitive

__________ advantage is what sets your business apart from your competition.

Competitive

Competitive Advantage highlights the __________ a customer receives when they do business with you.

benefits

__________ Leadership occurs when a business is able to offer the same products at a lower price.

Cost

Cost Leadership occurs when a business is able to offer the same products at a __________ price.

lower

In __________, a business finds attributes that are important and set them apart from their competitors.

Differentiation

Businesses use __________ strategies to distance themselves from competitors.

Defensive

The competitive advantage category of __________ involves seeking strategic partnerships within related or internal businesses.

Alliances

__________ are individuals or companies who desire to possess or make use of products and services.

Customers

Customers can force down prices, demand higher quality, and play competitors off against each other at the expense of industry __________.

profits

__________ provide inputs that the firms in an industry need to create the goods and services that they sell.

Suppliers

Suppliers can exert bargaining power on participants by raising prices or reducing the __________ of purchased goods.

quality

Suppliers are the key to a business's continued access to goods and __________ that will be needed.

raw materials

__________ are goods/services that can be used in place of another to satisfy the same needs of a consumer.

Substitutes

Substitute products or services limit the __________ of an industry.

potential

Manufacturers try to differentiate their products so that customers develop product __________ for their brand.

loyalty