Olivia Currier - Business & Entrepreneurship Final Exam Study Guide - January 2025 PDF

Business & Entrepreneurship Final Exam Study Guide - January 2025 Your final exam will consist of a multiple choice assessment and an elevator pitch. This study guide focuses on the multiple choice part. Introduction to Business and Economics Review the re...

Business & Entrepreneurship Final Exam Study Guide - January 2025 Your final exam will consist of a multiple choice assessment and an elevator pitch. This study guide focuses on the multiple choice part. Introduction to Business and Economics Review the reading on google classroom entitled “Intro to Business – Sections 1.1, 1.2” & “Pages 15-17 Supply & Demand, Profit Motive, Competition” along with the questions that accompany it. Also review the factors of production, the economy types, and 3 basic economic questions. Define Key Terms: -Business All of the activities involved in developing and exchanging products. -Product Anything that can be bought or sold. -Good A tangible item (one that can be touched). -Service A task or action that is performed, usually for a fee. -Customer A group or individual who buys the product. -Opportunity cost The value of the next best item that is not selected. -Supply the quantities of a goods available for purchase -Demand the qualities of a good that the consumer wants to purchase -Law of Supply and Demand The price of the product is determined by the supply and demand of the product. -Shortage a lack of a good or service -Surplus more than what is needed or used -Market Price amount of money for what an asset can be sold in a market. -Profit motive an economic concept which posits that the ultimate goal of a business is to make money. -Competition Which one company is trying to be more successful than another. -Consumer a person who purchases goods and services for personal use. -The three important economic questions every nation must answer: what goods and services to produce, how to produce these goods and services, and how to distribute the goods and services -Economic systems (traditional, command, market, mixed) Mixed economy: When both the government and citizens make decisions about economic resources. Market economy: When citizens are free to make their own economic decisions. Command economy: When the government makes all of the economic decisions for the citizens. Traditional economy: When economic decisions are based upon citizens values, culture, and customs. Link to Quizlet Entrepreneurship Review the vocabulary and lessons posted on google classroom (detailed below). Key Terms: Business Plan Document that describes a new business & a strategy to launch that business Elevator Pitch 30 second/100 words or less action oriented description to create "hook" Entrepreneur An individual who undertakes the creation, organization, and ownership of a business Fundraising The process of gathering voluntary contributions of money or other resources from individuals, businesses, foundations, or governmental agencies Innovation A new method, idea, product, etc. Profit Money that is left after all the expenses of running a business have been deducted from the income Startup A type of young business that develops a unique product or service and bring it to the market Small business A type of business that sets their goal on long-term, stable growth in an existing market Review: Lesson: Understanding Entrepreneurship Students will be able to: -Define entrepreneurship -Identify and describe key characteristics of successful entrepreneurs -Explain the importance of small businesses in the US economy Questions: How many employees can a business have to be considered small? ​ 1-500 people What percentage of the firms in the U.S. are small businesses? 99.7% of the American job market is made of small businesses. Lesson: Hurdles of Entrepreneurship Students will be able to: -Discuss the different roles an entrepreneur commonly fills when launching a business -Analyze why startups fail and how to overcome obstacles faced by entrepreneurs Lesson: Planning and Pitching a Business Students will be able to: -Explain the purpose and components of a business plan -Be able to match the parts of a business plan with its description Lesson: Launching A Business Students will be able to: -Understand personal finance considerations when starting a business -Identify the appropriate business structures for starting a business -Explore various funding options for startups Managing Business Finances, Financial Management (Chapter 17.1) Objectives - Explain the finance/accounting function of business Define Key Terms: Financial Planning: solving immediate problems and developing strategies that will lead to a solution Revenue: the total amount of money brought in by a company's operations Expense: money spent to acquire something Accounting: the process of recording financial transactions pertaining to a business Generally Accepted Accounting Principles (GAAP): a collection of commonly followed accounting rules and standards for financial reporting Fiscal Period: a specific period of time used for accounting purposes. Budget: a plan you write down to decide how you'll spend your money overtime Start-up Budget: to determine how much money will be needed to get the business up and running. Accounting Equation: Assets = Liabilities + Equity) Assets: The property or items of value a business owns. The property or items of value a business owns Current Asset: Cash or any asset that will be exchanged for cash or used within a year Liability: debts or obligations a person or company owes to someone else. Current Liability: A short term debt that must be paid within a year Financial Records (Chapter 17.2) Objectives: -State the importance of financial statements for a business Define Key Terms: -Balance Sheet: snapshot of a company's financial condition -Income Statement: shows a company's revenues, expenses and profitability over a period of time. Marketing in Today’s World (Chapter 13)­­ Objectives: -Define marketing and describe the elements of the marketing mix. Define Key Terms: Marketing: The process of creating, promoting, or presenting a product or service to meet the wants and needs. The Functions of Marketing (7) Marketing Mix (4P's): Product, please, price, promotion, known as the four ps Channel of Distribution:A pathway to direct products to a consumer Direct Distribution: Occurs when goods or services are sold from the producer directly to the consumer Indirect Distribution: Involves one or more intermediaries Break-even Point: The point at which total revenues or sales equal total cost and expenses of developing and offering a product or service Market Research: The gathering and analysis of information on the size, location, or makeup of a market Demographics: the specific characteristics within a given population Market Segmentation: the practice of dividing your target market into approachable groups Steps of Product Development (7): Step 1: Ideation. Step 2: Validation.... Step 3: Prototyping.... Step 4: Marketing.... Step 5: Development... Step 6: Launch.... Step 7: Improvement. Prototype: the original model, a sample on which to base future designs Test-Market: the process of introducing a new product or service, new advertising campaign, etc. Business Structures & Management and Leadership *Review the work you did on business structures, and also read about them in the SBA link provided below: https://www.sba.gov/business-guide/launch-your-business/choose-business-structure Define key terms: Liability: Nonprofit corporations are organized to do charity, education, religious, literary, or scientific work. Because their work benefits the public, nonprofits can receive tax-exempt status, meaning they don't pay state or federal income taxes on any profits it makes. Unlimited liability: business owners who are legally liable for any debt their business might accrue Sole Proprietorship: An unincorporated business that has just one owner who pays personal income tax on profits earned from the business Partnership: a formal agreement by two or more parties to manage a business and share its profit Corporation: a legal entity that is separate and distinct from its owners. LLC: a corporate structure that protects its owner from being personally pursued for repayment of the company's liabilities or debts Nonprofit corporation: Franchise: a joint venture between a franchisor and a franchisee. Management: people who are in charge of running a business -Planning: creating goals and objectives and figuring out how to meet them -Organizing: getting resources arranged in an orderly and functional way to accomplish goals and objectives. This includes training and organizing people -Leading: Providing direction and vision. Influencing and guiding others so they can carry out their assigned tasks -Controlling: keepings things on track and making sure goals are met. Managers keep track of the budget, the schedule, and the quality of the products or service they provide. It also means monitoring customer satisfaction. Organizational Chart: Shows how the firm is structured and who is in charge of whom Leadership: The ability to influence others to reach a goal. Leadership Qualities/Characteristics: to show leadership qualities such as honesty, competence, self-confidence, communication skills, problem-solving skills, and dependability. Leadership Styles: autocratic, democratic, free-rein -Autocratic: Gives detailed direction, Expectations are clear, Makes decisions on his/her own -Democratic: Communicates with employees to discuss problems and solutions, Communicates about decisions made, Encourages new ideas -Free Rein/Laissez-faire: Little direction given to employees, Delegates work, Concentrates on broader decision making