Intro to business concepts

monetary policy and the role of the Federal Reserve System (Jerome Powell - Federal Reserve Chairman)

monetary policy uses tools such as interest rate, etc, in order to properly regulate the economy

corporation

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

Types of funding

loans, angel investors, shareholders, royalties

50/30/20 rule - budgeting

50% to your needs, 30% to wants, 20% to savings

writing checks

fill out checks (practice)

balancing a checkbook

deposits \= withdrawals + balance, check bounce if insufficient funds

Compare services provided by banks, credit unions, and other financial institutions.

Banks offer meager yield rates and high-interest rates but can offer loans. Credit Unions ...
Credit cards offer incredibly high-interest rates and can offer advances, due does not incur interest until after 30 days, and should not be used for business loans.

Credit Union

Credit union: They are nonprofit entities that aim to serve their members rather than seeking to earn a profit. Credit unions often offer better savings rates, lower loan rates and reduced fees because of this.

Thrift Bank

A thrift bank-also called a Savings and Loan Association (S&L)-is a type of financial institution that specializes in offering savings accounts and originating home mortgages for consumers.

Fixed vs Variable Expense

Fixed: Doesn't change often such as electricity and utilities bill
Variable: Changes often, ex. shopping list

Balance Sheet

A\=L+SE
Understand accounting basics(payable,receivable, equity etc).

valuate savings and investment options (e.g., stocks, bonds, mutual funds, real estate, etc.) to meet short- and long-term goals.

Long Term: Bonds, Conservative Mutual Funds, Real Estate
Middle: Average Stock Portfolio, Aggressive Mutual Funds
Short Term: Real Estate Cash Flow, Crypto, Individual Aggressive Stocks

Describe source of securities information

SEC, NYSE(Etc.), Bloomberg and other outlets

Compare and contrast various sources of credit.

Banks, Credit Unions, S&L's, Pawn Shops. Virtually anyone that gives you money to be payed back with interest.

Explain the advantages and disadvantages of using credit.

Advantages: little down, no interest in 30 days(Credit cards), no capital needed
Disadvantages: Need credit, need to pay back interest + Principal, can lose collateral, limitations to amount

Compute simple interest loans.

p x r x t

Explain how a good credit record can be established and maintained.

Start early and often, open credit card at 18. Can be authorized user before that. Practice making payments on time consistently. Low usage\=low liability(ideally under 10% of max).

List sources of consumer information

BBB, yelp, google reviews, social medias and news outlets.

Identify rights and responsibilities of consumers and list ways to protect consumer rights.

Consumers are protected by the Consumer Bill of Rights. The bill states that consumers have the right to be informed, the right to choose, the right to safety, the right to be heard, the right to have problems corrected, the right to consumer education, and the right to service. Can be protected by legislature that cracks down on unfair trade practices.

Explain the function of organizations such as the Better Business Bureau and the Federal Trade Commission.

BBB, Serves as a review site for consumers(Not-GOV)
FTC, cracks down on violations of consumer rights(GOV)

Analyze the characteristics, motivations, and behaviors of consumers.

Extended Decision-Making. Limited Decision-Making. Habitual Buying Behavior. Variety-Seeking Buying Behavior.

Interpret financial elements to determine impact on consumer behavior.

?

Describe the use of advertisements and other marketing strategies.

You pay to advertise somewhere in the hope of making more money than your principal by promotion.

Explain the importance of comparative shopping

Allows consumers to assure that they receive the best product while also at an economic price suitable. Saves money.

Describe the difference between a promotional and a clearance sale.

Clearance gets rid of unused inventory and promotional is like 10% off and is a sale to attract customers.

Define the main goals and functions of a business

Make a profit but must also take into consideration social responsibility.

Explain the difference between gross profit and net profit

Gross is before you make all the cuts that will lower your total net profit.

sole proprietorship

when a person files with the government in order to create a separate entity for business ventures

joint partnership

when at least two people file to create a business

corporation

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

Types of funding

loans, angel investors, shareholders, royalties

50/30/20 rule - budgeting

50% to your needs, 30% to wants, 20% to savings

writing checks

fill out checks (practice)

balancing a checkbook

deposits \= withdrawals + balance, check bounce if insufficient funds

Compare services provided by banks, credit unions, and other financial institutions.

Banks offer meager yield rates and high-interest rates but can offer loans. Credit Unions ...
Credit cards offer incredibly high-interest rates and can offer advances, due does not incur interest until after 30 days, and should not be used for business loans.

Credit Union

Credit union: They are nonprofit entities that aim to serve their members rather than seeking to earn a profit. Credit unions often offer better savings rates, lower loan rates and reduced fees because of this.

Thrift Bank

A thrift bank-also called a Savings and Loan Association (S&L)-is a type of financial institution that specializes in offering savings accounts and originating home mortgages for consumers.

Fixed vs Variable Expense

Fixed: Doesn't change often such as electricity and utilities bill
Variable: Changes often, ex. shopping list

Balance Sheet

A\=L+SE
Understand accounting basics(payable,receivable, equity etc).

valuate savings and investment options (e.g., stocks, bonds, mutual funds, real estate, etc.) to meet short- and long-term goals.

Long Term: Bonds, Conservative Mutual Funds, Real Estate
Middle: Average Stock Portfolio, Aggressive Mutual Funds
Short Term: Real Estate Cash Flow, Crypto, Individual Aggressive Stocks

Describe source of securities information

SEC, NYSE(Etc.), Bloomberg and other outlets

Compare and contrast various sources of credit.

Banks, Credit Unions, S&L's, Pawn Shops. Virtually anyone that gives you money to be payed back with interest.

Explain the advantages and disadvantages of using credit.

Advantages: little down, no interest in 30 days(Credit cards), no capital needed
Disadvantages: Need credit, need to pay back interest + Principal, can lose collateral, limitations to amount

Compute simple interest loans.

p x r x t

Explain how a good credit record can be established and maintained.

Start early and often, open credit card at 18. Can be authorized user before that. Practice making payments on time consistently. Low usage\=low liability(ideally under 10% of max).

List sources of consumer information

BBB, yelp, google reviews, social medias and news outlets.

Identify rights and responsibilities of consumers and list ways to protect consumer rights.

Consumers are protected by the Consumer Bill of Rights. The bill states that consumers have the right to be informed, the right to choose, the right to safety, the right to be heard, the right to have problems corrected, the right to consumer education, and the right to service. Can be protected by legislature that cracks down on unfair trade practices.

Explain the function of organizations such as the Better Business Bureau and the Federal Trade Commission.

BBB, Serves as a review site for consumers(Not-GOV)
FTC, cracks down on violations of consumer rights(GOV)

Analyze the characteristics, motivations, and behaviors of consumers.

Extended Decision-Making. Limited Decision-Making. Habitual Buying Behavior. Variety-Seeking Buying Behavior.

Interpret financial elements to determine impact on consumer behavior.

?

Describe the use of advertisements and other marketing strategies.

You pay to advertise somewhere in the hope of making more money than your principal by promotion.

Explain the importance of comparative shopping

Allows consumers to assure that they receive the best product while also at an economic price suitable. Saves money.

Describe the difference between a promotional and a clearance sale.

Clearance gets rid of unused inventory and promotional is like 10% off and is a sale to attract customers.

Define the main goals and functions of a business

Make a profit but must also take into consideration social responsibility.

Explain the difference between gross profit and net profit

Gross is before you make all the cuts that will lower your total net profit.

List and describe the steps in organizing a business.

1. Consideration of Plans and Goals 2. Determining the Work Activities Necessary to Accomplish Objectives 3. Classifying and Grouping Activities 4. Assigning Work and Delegating Appropriate Authority 5. Designing a Hierarchy of Relationships.

Define the main features, advantages, and disadvantages of various types of business ownership.

Sole proprietorship:
Advantages: Alone, You keep all profits, no disputes, easy to make decisions, low start-up cost, easy to change the structure.
Disadvantages: Limited ability to access capital, high liability, hard to manage everything by yourself

Joint partnership (20 max):
Advantages: increased capacity. sharing of risks and costs (ie liability) with a partner. access to new knowledge and expertise, including specialized staff. access to greater resources, for example, technology and finance.
Disadvantages: the communication between partners is not great. the partners expect different things from the joint venture. the level of expertise and investment isn't equally matched. the work and resources aren't distributed equally.


Corporations:
C-Corporations
Taxed as a separate identity (double tax)
Recognized state and federally

S-Corps
Avoids double taxation
Corps don't pay income tax
Can include losses on income statements
Not recognized in certain states

Describe the major functions of business and their relationship to one another

Marketing, operations, accounting and finance, and human resources. They are all interconnected and help each other run.

Identify current business trends to recognize changes needed in business operations.

Social media is on the rise, digital marketing, Millennial trends.

Supply and demand

the theory explaining the interaction between the supply of a resource and the demand for that resource

Private vs Public

Private, owned by individuals for private sale. Public, owned by gov, prices controlled. The private market is the fundamental basis for the capitalist system. Adam smith made capitalism.

Explain the economic role played by business in satisfying customer needs and wants in a free enterprise system.

A business serves a need with a product to make a profit.

Recognize effects of competition on businesses, consumers, and society.

Typically, competition creates better products at cheaper prices.

Explain characteristics, including strengths and weaknesses of various types of economic systems (e.g., traditional, communist, socialist, etc.).

Command: Command/Communist, prices controlled by gov.
Traditional: Trust/Old fashioned, A traditional economy is a system where goods production and distribution are driven by time-honored beliefs, customs, culture, and traditions.
Mixed: Socialism and Capitalism mixed to create a capitalist society with some government intervention.

Identify economic trends/indicators to measure economic conditions.

DOW Price, Fear and Greed Index, Unemployment Rate, Fiscal Spending.

Examine current events (regional, national, and international) to determine their impact on business.

Ex. How does COVID affect spending. Less disposable income which causes lower spending which causes lower investment in industry therefore lowering wages and hiring.

Analyze the economic impact of e-commerce.

The digital age has causes companies to cater their products differently. If you are not online and using social media marketing you are at a significant disadvantage.

Identify ways for businesses to demonstrate their social responsibility.

Donate and support varying causes

Identify ways to improve employee morale and customer satisfaction.

Happy employees create happy customers. Ways to improve morale include, team building, transparent management and the understanding of different issues.

Discuss procedures and consequences when on-the-job rules and laws are not followed.

OSHA Report, Report to manager, a discussion what happened and in some cases termination.

monetary policy and the role of the Federal Reserve System (Jerome Powell - Federal Reserve Chairman)

monetary policy uses tools such as interest rate, etc, in order to properly regulate the economy

sole proprietorship

when a person files with the government in order to create a separate entity for business ventures

joint partnership

when at least two people file to create a business

corporation

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

Types of funding

loans, angel investors, shareholders, royalties

50/30/20 rule - budgeting

50% to your needs, 30% to wants, 20% to savings

writing checks

fill out checks (practice)

balancing a checkbook

deposits \= withdrawals + balance, check bounce if insufficient funds

Compare services provided by banks, credit unions, and other financial institutions.

Banks offer meager yield rates and high-interest rates but can offer loans. Credit Unions ...
Credit cards offer incredibly high-interest rates and can offer advances, due does not incur interest until after 30 days, and should not be used for business loans.

Credit Union

Credit union: They are nonprofit entities that aim to serve their members rather than seeking to earn a profit. Credit unions often offer better savings rates, lower loan rates and reduced fees because of this.

Thrift Bank

A thrift bank-also called a Savings and Loan Association (S&L)-is a type of financial institution that specializes in offering savings accounts and originating home mortgages for consumers.

Fixed vs Variable Expense

Fixed: Doesn't change often such as electricity and utilities bill
Variable: Changes often, ex. shopping list

Balance Sheet

A\=L+SE
Understand accounting basics(payable,receivable, equity etc).

valuate savings and investment options (e.g., stocks, bonds, mutual funds, real estate, etc.) to meet short- and long-term goals.

Long Term: Bonds, Conservative Mutual Funds, Real Estate
Middle: Average Stock Portfolio, Aggressive Mutual Funds
Short Term: Real Estate Cash Flow, Crypto, Individual Aggressive Stocks

Describe source of securities information

SEC, NYSE(Etc.), Bloomberg and other outlets

Compare and contrast various sources of credit.

Banks, Credit Unions, S&L's, Pawn Shops. Virtually anyone that gives you money to be payed back with interest.

Explain the advantages and disadvantages of using credit.

Advantages: little down, no interest in 30 days(Credit cards), no capital needed
Disadvantages: Need credit, need to pay back interest + Principal, can lose collateral, limitations to amount

Compute simple interest loans.

p x r x t

Explain how a good credit record can be established and maintained.

Start early and often, open credit card at 18. Can be authorized user before that. Practice making payments on time consistently. Low usage\=low liability(ideally under 10% of max).

List sources of consumer information

BBB, yelp, google reviews, social medias and news outlets.

Identify rights and responsibilities of consumers and list ways to protect consumer rights.

Consumers are protected by the Consumer Bill of Rights. The bill states that consumers have the right to be informed, the right to choose, the right to safety, the right to be heard, the right to have problems corrected, the right to consumer education, and the right to service. Can be protected by legislature that cracks down on unfair trade practices.

Explain the function of organizations such as the Better Business Bureau and the Federal Trade Commission.

BBB, Serves as a review site for consumers(Not-GOV)
FTC, cracks down on violations of consumer rights(GOV)

Analyze the characteristics, motivations, and behaviors of consumers.

Extended Decision-Making. Limited Decision-Making. Habitual Buying Behavior. Variety-Seeking Buying Behavior.

Interpret financial elements to determine impact on consumer behavior.

?

Describe the use of advertisements and other marketing strategies.

You pay to advertise somewhere in the hope of making more money than your principal by promotion.

Explain the importance of comparative shopping

Allows consumers to assure that they receive the best product while also at an economic price suitable. Saves money.

Describe the difference between a promotional and a clearance sale.

Clearance gets rid of unused inventory and promotional is like 10% off and is a sale to attract customers.

Define the main goals and functions of a business

Make a profit but must also take into consideration social responsibility.

Explain the difference between gross profit and net profit

Gross is before you make all the cuts that will lower your total net profit.

List and describe the steps in organizing a business.

1. Consideration of Plans and Goals 2. Determining the Work Activities Necessary to Accomplish Objectives 3. Classifying and Grouping Activities 4. Assigning Work and Delegating Appropriate Authority 5. Designing a Hierarchy of Relationships.