INTRODUCTION TO BUSINESS



ANSWER KEY- BASICS OF BUSINESS, ECONOMICS, and ENTREPRENEURSHIP

Scarcity- Unlimited wants and needs, limited resources (money)

Factors of production (4)- Resources it takes to make a product

Natural resources- Raw materials

Human resources- People- employees

Capital resources- Equipment, Machines, Trucks, Etc.

Entrepreneurial resources- Creative, Innovative Ideas “Marketing”

Types of Economy (3):

1. Market economy- Free economy- no government involvement

Supply- Producers, Business that makes or sells the product

Demand- Consumers wanting or needing a product

Equilibrium price- The price a business must sell the product to equal the

total cost.

2. Command economy- Government controlled economy

3. Mixed economy- Business supplies wants, Government supplies needs

What is the difference between market and command economics?

Free economy vs government controlled

Explain why most countries prefer a mixed economy?

Its balance- allows for capitalism but government provides basic needs

How can a change in supply increase a price? A change in demand?

The price of a product will change according to supply (how much you have of a product)

And demand from the consumer.

What is an ECONOMIC INDICATOR & LIST THE 3:

Economic Indicator is a measuring tool to see how healthy our economy is

G GDP- Gross Domestic Product

U Unemployment- how many people are out of a job

I Interest rate/ Inflation rate

Gross Domestic Product (GDP)- (how many products/ services a country produces)

Business cycle- The ups and downs of a business or the economy

[pic]

Explain what standard of living measures.

Average lifestyle/spending habits of a community

Ethics- Morals and values in business and society (doing the right thing)

Social Responsibility- When business’ put safety before profits

(doing the right thing)

3 Government Agencies:

OSHA- Occupational Safety and Health Administration- Protects employees

FDA- Food and Drug Administration- Protects consumers against food and

medication

EPA- Environmental Protection Agency- Protects the public from pollutants

Conflict of interest- When business’ put profits before public safety

“Entrepreneurship and Small Business”

Pg 1A+B from PowerPoint #5, Pg 2 A+B from Internet Research

Definitions:

Entrepreneurship- A business started by someone who notices a need for a product or service.

Entrepreneur- A person who recognizes an opportunity and assumes the risk of the business

Virtual business (dot-com company)- A business that operates on the internet

Risk taker- Someone who likes to take a risk, an entrepreneur

Small business- Independently owned business (less than 500 employees but usually much smaller than this.

Profit- Revenue (money coming in) minus Expenses (money going out)

Small Business Administration (SBA)- A Federal Program that helps small business get started, sometime lending them money.

Learning Objectives

List the advantages and disadvantages of both:

Entrepreneurship-

A) Satisfaction of taking the risk and being successful

Showing expertise and skills

D) Total responsibility for the business

Long hours

Small Business-

A) Being the boss, provide specialized services large companies can’t offer

D) Lack of management skills, lack of financial planning

What is profit? Money left over after all expenses are paid

Revenue – Expenses = Profit

What is a business plan and list several elements necessary for a business plan?

A written description and plan for your business including all aspects of the business.

BUSINESS PLAN-

A detailed game plan for success

ITEMS NEEDED IN PLAN:

Company description, marketing plan, legal plan, management and operation plan, etc.

SHOW ME THE MONEY- INTERNET RESEARCH

GO TO

DO RESEARCH ON TWO OF THE MILLIONAIRES.

MILLIONAIRE #1

EXPLAIN THEIR IDEA/BUSINESS-

WHY ARE THEY SO SUCCESSFUL (WHAT IS THE KEY)?

MILLIONAIRE #2

EXPLAIN THEIRE IDEA/BUSINESS-

WHY ARE THEY SO SUCCESSFUL (WHAT IS THE KEY)?

GO TO -RESEARCH 2 HOT IDEAS or PRODUCTS FROM THIS SITE

IDEA or PRODUCT #1

WHAT IS THE IDEA OR PRODUCT?

WHY ARE THEY SUCCESSFUL?

WHY IS THIS DIFFERENT THAT OTHER PRODUCTS OR IDEAS?

(what separates them from the competition)

HOW COULD THEY BE MORE SUCCESSFUL (YOUR SUGGESTION)?

IDEA or PRODUCT #2

WHAT IS THE IDEA OR PRODUCT?

WHY ARE THEY SUCCESSFUL?

WHY IS THIS DIFFERENT THAT OTHER PRODUCTS OR IDEAS?

(what separates them from the competition)

HOW COULD THEY BE MORE SUCCESSFUL (YOUR SUGGESTION)?

ENTREPRENEUR

“WHO I MOST ADMIRE IN THE BUSINESS OR ENTERTAINMENT WORLD”

RESEARCH INFORMATION ONLINE ABOUT THE PERSON YOUR MOST ADMIRE THAT HAS BEEN SUCCESSFUL CREATING A PRODUCT, IDEA, SERVICE, OR COMPANY.

TELL ME WHO YOUR PERSON IS AND WHAT MAKES THEM SO INNOVATIVE AND SUCCESSFUL (1-2 paragraphs).

ENTREPRENEUR IS A RISK TAKER, CREATIVE, UNIQUE, & SUCCESSFUL.

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