FINAL EXAM REVIEW! Semester I Business Principles

Answer: You give me the Word Economic system in the United Stated.

The Correct Word: Free enterprise

Question: The heart of a successful business!

The Answer is…. The EMPLOYEES!!!

QUESTION! What is the establishment that supplies goods and services in exchange for some form of payment?

The Answer is….. BUSINESS!

QUESTION: What is the term that means the desire to work hard and be creative to earn a higher profit?

Answer! PROFIT MOTIVE!!!

Question What determines the market price of a product or service?

The Answer is…. Supply Demand Competition

Name 3 major types of business ownership!

3 Major types of Business Ownership Sole Proprietorship Partnership Corporation

Describe characteristics of a Sole Proprietorship

Sole Proprietorship Owned by one person Small firms such as jewelry stores, restaurants Many U.S. businesses are in this group Personal property is not legally considered separate. Has complete responsibility for all business decisions

What provides consumers with lower prices, better quality and more variety of products

Competition!!! Competition is Gooooood!

A person who has the skill, knowledge and resources to start and run a business!

Answer! Entrepreneur!

The guidelines on how a business should treat the employees and society.

ANSWER! Business Ethics!!!!

The guidelines by which a person lives their lives and the way they behave.

Answer! Personal Ethics!

™

ANSWER! Trade Mark symbol

What is a corporation?

Corporation Business owned by a number of people Operated under special permission from the state. Acts as a single individual on behalf of its owners. People become owners by purchasing shares of stock.

What is a partnership?

Partnership Business owned and managed by one or more persons who share risks and rewards. Must have written agreement Partners share profits or losses Unlimited liability for the debts Income is taxed only once.

Define the term “legal entity”

Legal Entity Legally exists separate from its owners. IBM Texaco General Motors

What is a franchise?

Franchise Contractual agreement to sell a company’s products or services in a designated geographic area. Taco Bell, Blockbuster, Franchisee invests money and pays franchisor an annual fee or a share of profits.

What is a non-profit organization?

Nonprofit Organizations Type of business that focuses on providing a service rather than making a profit. American Red Cross Meals on Wheels Private hospitals Schools

LIST THE TYPES OF BUSINESSES (categories)

Types of Businesses One way to group is by the different kinds of products they provide: Manufacturers Retailers Service businesses

What are the 3 types of business ownership??

3 types are…. Sole proprietor Partnership Corporation

Describe a the characteristics of a manufacturer.

Manufacturers Business Make finished products out of processed goods that require no further processing. Products are ready for the market. Bakery makes bread out of flour

Gives the inventor the sole right to make, use or sell an item.

Patent!! A patent is good for how many years? 17 to 20 years.

Walmart, Best Buy, Target!

RETAILERS! They get stuff from the manufacturer and sell it to us!

What is a wholesaler?

Wholesaler Also called a distributor Buys goods from manufacturers in huge quantities and resells them in smaller quantities to customers (usually other companies).

What is a retailer?

Retailer Purchases goods from a wholesaler and resells them to the consumer, or the final buyer of the goods. Examples: Service stations, auto dealers,

What is a Service Business

Service Businesses Business provides services rather than goods. Products of a skill or an activity such as hair styling or car repair. Employs about ¾ of the workforce and are rapidly increasing in numbers.

What is the quickest way to become a business owner!

Buy a share of Stock General ownership in a corporation and a right to share in its profits.

What am I? When a business controls what is sold in the marketplace. They also control the prices. They can also stop other businesses from opening.

MONOPOLY!~

What am I? federal and state laws that regulates the conduct and organization of business corporations, promote fair competition for the benefit of consumers.

ANSWER! Anti-trust Laws!

What am I? has legal standing in the eyes of law. A legal entity has legal capacity to enter into agreements or contracts, assume obligations, incur and pay debts, sue and be sued in its own right, and to be held responsible for its actions.

Who am I?

CONSUMER! Buys goods and services

What am I? Price of a single item sold.

Unit Price

What am I? The cost of money!

INTEREST!

What am I? Wealth in the form of money or assets, taken as a sign of the financial strength

Capital!

What am I? Total of an individual earnings during a period of time (usually 1 year) salary or wages, profits realized, interest, and rental income.

What am I? Official measure of how much goods consumers have bought

Retail Sales

What’s the Difference? ?? ?? General increase in prices General decrease in prices

The Answer is! Inflation Deflation General rise of prices.. Things are costing more Packages are getting smaller the prices stays the same Prices are dropping on some goods and services. Doesn’t happen often

Who am I? Small business Owned by one family

Answer!

What am I? The amount of money paid per hour for doing work.

Wage!

What am I? The cost of having to hire, fire and retrain new employees. The number of employees hired to replace those who left or were fired during a 12 month period.

TURNOVER!

Who am I? Mr. Marty Mills Mrs. Ann Shaw Mrs. Meredith Bordas Mr. Justin Cheatham

Management Mr. Mills is the CEO!

10 BONUS POINTS IF YOU GET THIS NEXT QUESTION RIGHT!

Test TIME!