Intro to Business - Final

Study or fail

needs vs. wants

needs: something that is necessary to live

wants: something that isn’t necessary to live but would be nice to own

business

an organization or enterprising entity engaged in commercial, industrial, or professional activities

profit

the amount gained by selling a good

competition

when two or more businesses offer similar products in the same market

market research

the gathering of information about potential consumers (ex. needs and preferences)

consumer

they pay something to consume goods and services that were produced

scarcity

the demand for a good/service is greater than the availability of that good/service

supply

the quantity of a product of service that a business has to offer

demand

the consumer’s willingness to buy a product or service at a given time or overtime

equilibrium

the state where the market supply and demand balance are equal and as a result, prices become stable

business cycle

a cycle of economic activity that consists of recession, recovery, growth, and decline

sole proprietorship

a type of business where someone owns a unincorporated business by themselves

partnership

a type of business where two or more people share ownership and responsibilities

corporation

a type of business where many shareholders own the business and they select multiple directors to help with the business

demographics

statistical data relating to the population and particular groups within it.

psychographics

the study of consumers based on their activities, interests, and opinions

geographics

a marketing strategy that presents potential customers with targeted messaging based on their geographic location

buying behaviors

the way that people behave when they buy things, such as what they buy, where and when they shop, and how much they spend

checking account

a bank account used for everyday deposits and withdrawals

steps to write a check

1. put the date
2. write who the check is for
3. write the payment amount in numbers and words
4. write a memo
5. sign the check

check register

a journal is where you can track your cash/check transactions during an accounting period

scholarships/grant/loan

a payment of money to aid someone while they’re paying off something

internships

an opportunity to network with new people and sharpen your skills before entering a workforce

w-9 form

an IRS form that lets your employer know how much money to withhold from your paycheck for federal taxes

i-9 form

a form to identify and verify the employment authorization of individuals for employment in the US

types of credit

revolving credit, installment credit, and open credit

getting/keeping credit

make payments on time

credit history

it’s your credit activity (ex. paying your bills, how many credit cards you use, what types of credit, and how much debt you have)

loans

a sum of money someone gets and that person agrees to pay that money back overtime

mortgage

a secured sum of money that is paid overtime

down payment

the cash that the buyer pays upfront in a real estate transaction the other large purchases

credit fraud

an unauthorized taking of another's credit card information for the purpose of charging purchases to the account or removing funds from it.

bankruptcy

people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan

identity theft

when someone steals your personal information to commit fraud

spam

unwanted, unsolicited digital communication sent out in bulk.

phishing

a technique for attempting to acquire sensitive data

stocks

a form of security that indicates the holder has proportionate ownership in the issuing corporation and is sold predominantly on stock exchanges

investing

an asset or item acquired with the goal of generating income or appreciation

rule of 72

a calculation that estimates the number of years it takes to double your money at a specified rate of return

PYF

(pay yourself first) prioritizing your long-term financial well-being before paying anything else

risk vs rewards

the prospective reward an investor can earn for every dollar they risk on an investment

smart goals

specific, measurable, attainable, and relevant

delayed gratification

the act of resisting an impulse to take an immediately available reward in the hope of obtaining a more-valued reward in the future

opportunity cost

the loss of potential gain from other alternatives when one alternative is chosen.

cash flow

the movement of cash into or out of a business, project, or financial product

SARA

(Safety Analysis Risk Assessment) is a comprehensive review of how safe conditions in the facility are, including an assessment of any workplace procedures and security measures in place.

variable expenses

expenses that change from month to month (ex. dining out)

fixed expenses

expenses that cost the same amount each month (ex. rent)

period expenses

expenses that are paid across a period of time