Entrepreneurship (Cengage/Mindtap Review) Mid Term

Entrepreneurship (Cengage/Mindtap Review) Mid Term

Entrepreneurship

• is the process of running a business of one’s own

• An entrepreneur is a person who own, operate, and take the risk of a business venture

Profit

is the difference between the revenues earned by a business and the costs of operating the business

Ex. If I purchase a purse for $20 and I sell it to a consumer for 30$, my profit is $10

Gross profit is the value that remains after the cost of sales, or cost of goods sold, has been deducted from sales revenue

Multiple Choice

You own a bike that you payed $300 for. You upgraded some of the parts on the bike and you sold it to a customer for $450, What is your profit?

• $100

• $150

• $300

• $50

Supply V. Demand

• Supply is the quantity of a good or service a producer is willing to produce at different prices

• Demand is the quantity of a good or service that consumers are willing to buy at a given price

Equilibrium Price

is the point at which the supply and demand curves meet

Multiple Choice

What is the quantity of a good or service a producer is willing to produce at different prices

• Demand

• Supply

Marketing Mix

Marketing

• is planning, pricing, promoting, distributing, and selling and is used by a company to place its products in the hands of potential customers

• Marketing Mix is a blending of the product, price, distribution, and promotion used to reach a target market

4 P's of Marketing

• Product

• Place

• Price

• Promotion

Open Ended

What is an example of a product?

Open Ended

What is an example of a place?

Open Ended

What is an example of a price?

Open Ended

What is an example of a promotion?

Types of Ownerships

Types of Ownership

• Sole proprietorship- A business owned by one person

• Partnership- A business owned by two or more people

• Corporation- A business that has the legal rights of a person but is independent of its owners