Marketing Essentials Flashcards

Questions and Answers

What is a franchise?

A loan for small businesses

A type of partnership

A type of stock

A business where the owner licenses their operations (correct)

What characterizes the survival stage of a business?

Regularly taking on new customers and starting to generate consistent income.

What is the success stage in business?

When an entrepreneur is earning and the business is economically healthy.

What decision does an owner face in the take-off stage?

Whether to grow the business significantly or to sell it. Signup and view all the answers

The business life cycle includes existence, survival, take-off, resource maturity, pivot or persist, and _____

exit plan Signup and view all the answers

Who are stakeholders in a company?

Individuals or groups that have an interest in the success of a company. Signup and view all the answers

What is the role of a stockholder?

Votes on the management of the company and can remove the CEO if necessary. Signup and view all the answers

What is an S corporation?

A business legal structure that provides limited liability and allows pass-through taxation. Signup and view all the answers

What is a C corporation?

A business legal structure that provides limited liability with double taxation. Signup and view all the answers

What is a commission in a business context?

A fee paid to an employee for completing a task, often related to sales. Signup and view all the answers

How are employees compensated in a piecework system?

For the number of units they produce. Signup and view all the answers

What is equity in a business?

Non-cash compensation offered to employees, may include ownership in the company. Signup and view all the answers

What is a trade secret?

Valuable information or processes that companies use to maintain a competitive edge. Signup and view all the answers

What must happen before one can use someone else's patent?

They must obtain ownership of the patent. Signup and view all the answers

Match the business role to its description:

CEO = Makes major decisions for the company CFO = Manages cash flow and budgets COO = Oversees day-to-day operations Founder = The individual who created the company Stakeholder = Individuals with an interest in the company Stockholder = Votes on management decisions Signup and view all the answers

What is a characteristic of a business opportunity?

The seller helps the buyer find a location. Signup and view all the answers

Franchises will generally have higher _____, but they offer support and training.

start-up costs Signup and view all the answers

Network marketers make their money through _____.

commissions Signup and view all the answers

Study Notes

Business Concepts Overview

Franchise: Business model that allows an owner to license operations, products, services, and branding for a royalty fee.
Survival Stage: Early phase where businesses gain customers and stabilize income. At this point, they cover loans and begin to pay owners a fair salary.
Success Stage: During this phase, businesses are economically healthy; entrepreneurs may seek growth opportunities or delegate operations to executives like CEO, CFO, and COO.
Take Off Stage: Owners assess whether to expand into a larger business and strategize for rapid growth or consider selling the company.
Business Life Cycle: Stages involving Existence, Survival, Take Off, Resource Maturity, Pivot or Persist, and Exit Plan.

Stakeholders and Shareholders

Stakeholder: Groups or individuals invested in the company's success.
Stockholder: Holds voting power on company management decisions, including potential removal of the CEO.

Business Structures

S Corporation: Limited liability business structure with special taxation permitting income pass-through to shareholders, resulting in lower taxation.
C Corporation: Provides limited liability but incurs double taxation on profits and shareholder dividends. Suitable for international business.

Compensation and Payment Models

Commission: Payment structure that rewards employees based on performance, particularly in sales, using a percentage of sales or fixed rates.
Piecework: Compensation method where employees are paid for the number of units produced.
Equity: Non-cash compensation that includes ownership stakes or stocks offered to employees as an incentive.

Understanding Business Opportunities

Seller assistance is key in finding optimal business locations.
Franchises come with higher start-up costs but provide ongoing support and training.

Management and Skills

Management reliability is assessed alongside one's personal skills to ensure business opportunity success.
Companies value validated processes, leading to the utilization of trade secrets.

Business Plans and Pitch Decks

Business Plan: Detailed operational and growth framework.
Pitch Deck: Concise overview containing key business elements including problems addressed, vision, team strengths, milestones, competition, and funding needs.

Characteristics of Entrepreneurs

Self Resilience: Confidence in personal goals and progress.
Forward-Thinking Mentality: Proactive planning for future success.
Opportunity Recognition: Innovative approach to new ventures.
Initiative: Execution of ideas to improve or generate business outcomes.
Resiliency: Ability to adapt to changes and setbacks.
Growth Mindset: Belief in achieving success through effort and determination.

Intellectual Property

To use someone else's patent, legal ownership must be obtained first.

Executive Roles in Business

CEO: Chief decision-maker overseeing operations and strategic vision.
CFO: Manages financial aspects, cash flow, and budgets.
COO: Handles day-to-day operations and administrative tasks.
Founder: Originator of the company or organization.
Partnership: Shared financial responsibilities among one or multiple individuals.
Employee: Executes assigned tasks within company guidelines and policies.

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Description

Test your knowledge of essential marketing terms with our comprehensive flashcards. Each card features a key concept along with its definition, perfect for anyone looking to enhance their marketing skills.