Entrepreneurship 2&3 Midterm

henry ford
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Terms in this set (80)
Loss- expenses are greater than incomeMark down- to lower the price of a product by percent amount"You have old shirts that you sell for $75 but you want to mark them down by 33%. What would the new price of the shirts be?"75 x .33 = 24.75 75-24.75 = $50.25markupto raise the price of an itemNJ sales tax6.625%Profit- money made from sales & service and goodssimple intrestInterest = Principal x Rate x TimeBoard of Directors- elected by the shareholder.responsible for deciding and maintaining the future of the businessBusiness Broker- a person or company that buys and sells business for a livingCorporation- business with legal rights owned by many people (shareholders). Corporations have limited liabilityFranchise- legal rights to use the name of a business / sells it productsFranchisor- the person who is selling their business for franchisinggoodwillthe loyalty build with you customersInitial franchise fee- one time fee you pay to the franchisor for the naming rights of the franchisePartnershipa business that is owned by two or more peopleRoyalty Feea fee that you must pay the fanichor to use their name and product (8%)share of stockA single unit of ownership of a businessSole ProprietorshipA business owned by one personStart up costs- the cost associated with starting a business - building, equipment, patron, supplies, legal fees, inventory etc.Valuator- a person or company that is used to determined the value of a businesscapitalmoney/total value of a businesscommand economygovernment has control over what is produced and who can produce itdemandservice or product that meet the needs and wants of customersEntrepreneurthe person who is responsible for running and maintaining a businessexportingto make a product and ship/sell it in another countryformthe apperance in which a product takes a final shapeimportingbuying products from another countrylaborhuman capital that is required to run a business/ make productslandall natural resourcesMarket Economy- individuals decide what is produced and how much is produced, and what companies produce itmonopolyone company controls entire market/industryneedthings you have to have in order to surviveOpportunity Costs- the value of the best next alternativeplacemaking products available in places that people can get thempossesionwhen item changes hands, people get itpromotionhow information is shared with the public (sales, discounts, etc)public gooda good or service that benefits everyone (vaccines, military, etc)shortagedemand exceeds supply, customer unlimited wants and needssubsidiespayments by the government to produce certain goods and products or to relocate the business in an enterprise zoneSupply- how much of a good or service a producer is willing and able to produce at a certain price pointsurplussupply exceeds demandtimegetting products to the customers when they need and want themUSDAU.S. Department of Agriculture( inspect meat and poultry plants)variable costscosts that can change month to month, no consistentwantthings that you think you needfinancemanage the financial aspects of the businessBusiness Ethics- doing the right thing in the business worldCasualty Insurance- protects you against lawsuitscontrollable riskrisks that you can control by taking preventive measureseconomic riskrisks caused by changes in business conditions (economy, covid, inflation, etc)Emotional Buying Decisions -buying items based on desires and emotionsethicsmoral choices and valueshuman riskrisks caused by customers and employees (theft, bad reputation, etc)Life Insurance- protects against financial losses caused by policy holder deathnatrual riskrisk caused by nature ( storms, weather)Needs Assessment- determining the needs and wants of the customerNeeds Satisfying- satisfying needs of customer when they know exactly what they wantPersonal Selling- persuading the customer to buy somethingProblem Resolutionsatisfying the needs and wants of the customer when they don't know what they wantProperty Insurance- insurance that protects against damages to propertyPure Risk- chance of loss, with no chance of gain (things that won't gain value)Rational Buying Decisionsbuying based on needs and logicSpeculative Risk ]- chance of loss, with chance of gain (stock market)Juvenile- usually girls, steals for excitement / thrill, working in groupsProfessional- knows all the tricks of trade, steal for profitVagrant- steals for needs, food and clothingkleptomaniacsteals compulsivelyamateursteals for desire, steals on impulsenarcoticsteals money for addictionsuncontrollable riskrisks that have no control over (weather)