INTRO TO BUSINESS UNIT 1 REVIEW

_____ Is the activity of making profit by producing and selling consumers goods and services in exchange for money.

• Business

• Charity

• Hobby

• Donation

What are the three reasons why a business exists? 1. ______ 2. ______3______

• 1. Help People 2. Make Profit, 3. Solve problems & Create value

• 1. Reduce competition, 2. Avoid taxes, 3. Increase unemployment

• 1. Destroy resources, 2. Cause pollution, 3. Limit growth

• 1. Increase government control, 2. Reduce innovation, 3. Limit trade

What are the two things that a business can offer?

• Goods and Services

• Money and Time

• Land and Labor

• Ideas and Technology

What are 5 examples of a good?

• Examples: Car, Book, Phone, Chair, Bread

• Examples: Water, Air, Sunlight, Wind, Heat

• Examples: Honesty, Kindness, Bravery, Wisdom, Patience

• Examples: Running, Jumping, Swimming, Dancing, Singing

What are 5 examples of a service?

• Examples: Haircut, Teaching, Car repair, Banking, Cleaning

• Examples: Apple, Banana, Carrot, Orange, Grape

• Examples: Table, Chair, Bed, Sofa, Desk

• Examples: Mountain, River, Lake, Ocean, Desert

What is a consumer?

• A person who purchases goods and services for personal use.

• A person who only produces goods.

• A person who sells goods to retailers.

• A person who manages a factory.

What is the profit equation for a business?

• Profit = Revenue - Expenses

• Profit = Expenses - Revenue

• Profit = Revenue + Expenses

• Profit = Revenue x Expenses

What are the three main types of business ownership?

• Sole Proprietorship, Partnership, Corporation

• Franchise, Cooperative, Nonprofit

• Limited Liability Company, Trust, Joint Venture

• Holding Company, Subsidiary, Affiliate

What is the money required upfront to start a business called?

• Launch Money

• Capital

• Investment

• Start up Fund

Which type of business ownership has the least amount of start up costs?

• Sole proprietorship

• Partnership

• Corporation

• Franchise