ITB

The U.S. workforce is made up of about _ people.

150 million

On average, the percentage of employees' wages spent on benefits is ______.

20-40%

The Small Business Administration considers a business small if it employs fewer than ____ employees?

500

What is Venture Capital?

Is money provided by large investors to finance new products and new businesses that have a good chance to be very profitable

Needs vs. Wants

Needs are things required to live, wants improve comfort and quality of life

Proprietorship, Partnership, and Corporation.

Proprietorship - Owned and runned by one person. Easiest to start and end. Very few legal requirements, gives the owner sole control over all business decisions, owner receives all the profit, owner is responsible for all debts. Partnership - owned by two or more, easy to start, shared responsibility for all business decisions and functions. Shares profits and losses. Corporation - Formed by documents within each state, owned by one or more shareholders and managed by a board of directors. Owners are those who purchase shares of stock. More difficult to start up. More legal requirements.

Tactical management vs. Strategic management - what is the difference?

Tactical Management - a style in which the manager is more directive and controlling. The manager will make the major decisions and stay in close contact with the employees while they work to make sure the work is done well. (new, inexperienced) Strategic Management - when a group of employees are experienced or work well together, a manager does not need to be direct. Employees may enjoy being a part of the decision-making process. A style in which managers are more collaborative and involve employees to work without direct supervision and will seek their input on important decisions.

LEADERSHIP

The ability to movidate individuals and groups to accomplish important goals.

What is the basic economic problem?

The issue of scarcity and how to produce and distribute these products the best. Scarcity means that there is limited good and raw materials. These resources can run out since they're limited.

OPPORTUNITY COST

The value of the next best alternatives that you were not able to choose

HUMAN RELATIONS

The way in which people get along with each other.

BANK STATEMENT

the bank will send you statements (or reports) at regular intervals to report the status of your account.

DIVERSITY

the comprehensive inclusion of people with disabilities in personal characteristics and attributes

NET WORTH

the difference between a person's assets and liabilities

What is FDIC?

the federal agencies that regulate banks and other financial institutions, protecting deposits.

Long-Term Financing vs. Short-Term Financing.

the money needed to pay for the current operating activities of a business is short term long term is money needed for the main resources of a business that will last for many years (ex: land, equipment, buildings, ext.)

WORK ENVIRONMENT

the physical conditions and the psychological atmosphere in which employees work. The physical conditions are the work area, offices, break rooms, storage areas ect.

DEMAND

the quantity of a good or serve that consumers are willing and able to buy

SUPPLY

the quantity of a good or service that businesses are willing and able to provide

MARKET ECONOMY

the resources are owned and controlled by the people of the country

COMPENSATION

the amount of money paid to an employee for work performed

The largest number of U.S. businesses employ _________employees.

1, 6.5 employees fewer than 20 ppl

A competitive advantage that small businesses have over larger businesses is.

Attention to unique customer needs

Mixed, Traditional, Command, and Market Economies

Command Economy - government will decide how much of the resources will be used to produce goods and services for consumers, such as food, school, vehicles, and houses. Market Economy - resources owned and controlled by the people of the country. The marketplace is anywhere that goods and services exchange hands. The government has limited involvement. No one directs consumers to make a particular purchase or tells businesses what they must produce. Traditional Economy - used in countries that are less developed and not yet participating in the global economy. Things are done the way they have always been done before. Consume most of what they produce. Limited individual wealth and limited opportunities to improve their conditions. Mixed Economies - combines elements of the command and market economies. As many countries with traditional economies develop, they often adopt mixed economies.

What is Supply? What is Demand?

D is the quantity of a good or serve that consumers are willing and able to buy S is the quantity of a good or service that businesses are willing and able to provide

Everyone who owns or manages a business is an entrepreneur.

False

White collar worker/Blue collar worker

White collar worker is one whose work is more mental than physical and involves the handling and processing of information. Blue collar worker is one whole job involving a great deal of physical work, including the operation of machinery and equipment or other production activities. (EX construction, farms, delivery, ext)

PROPRIETORSHIP

a business owned and runned by just one person

PARTNERSHIP

a business owned by two or more people who have entered into an agreement. Partnerships are easy to start and both owners are responsible for key business decisions and functions.

CONSUMER

a person who buys and uses goods and services

MISSION STATEMENT

a short, specific written statement of the reason a business exists and what it wants to achieve

BUSINESS PLAN

a written description of the business idea and how it will be carried out, including all major business activities.

GLASS CEILING

an artificial limit placed on minority groups moving into positions of authority and decision making

SMALL BUSINESS

an independent business with fewer than 500 employees. Roughly 26 million US businesses are small businesses

SALARY AND WAGES

are direct payments of money to an employee for work completed

CORE VALUES

are the important principles that will guide decisions and actions in the company

DOWNSIZING

is a planned reduction in the number of employees needed in a firm in order to reduce costs and make the business more efficient

INTERMEDIARIES

businesses involved in selling the goods or services of producers to consumers and other businesses. The most common types of intermediaries are retailers and wholesalers.

FIXED EXPENSE

costs that occur on a regular basis and are for the same amount each time

VARIABLE EXPENSE

involve living costs that differ each time and may not be as easy to estimate

ENTREPRENEUR

is someone who takes a risk in starting a business to earn a profit

DEBIT CARD

or cash card, used for ATM transactions. A debit card is different from a credit card.

MONEY MANAGEMENT

refers to the day to day financial activities associated with using limited income to satisfy your unlimited wants and needs. Getting the most for your money through careful planning, saving, and spending. Make a plan for spending.

OUTSOURCING

removes work form one company and sends it to another company that can complete it at a lower cost. In recent years, many US companies have been outsourced to companies in other countries. You don't have to outsource to another country to be considered outsourcing.

CASH FLOW STATEMENT

reports net wages and other income along with spending for a period of time such as a month

ENDORSEMENT

written evidence that you received payment or that you transferred your right of receiving payment to someone else