Unit 1 · Businesses, Competition & New Ideas 62 terms
1-1 What Is a Business & Value 9 terms
A group of people working together to achieve a common purpose or goal.
An organization or entity that produces and distributes goods or services.
A person or business that purchases a good or service.
The person who uses a good or service, whether or not they purchased it.
The worth or benefit a product or service provides to customers.
Providing products or services that satisfy customer needs or wants.
The process of earning revenue and profit from the value created for customers.
Money earned from selling goods or services before expenses are deducted.
Money remaining after all business expenses are subtracted from revenue.
1-2 Markets & Competitive Advantage 8 terms
A physical or virtual space where buyers and sellers interact.
The price at which buyers and sellers agree to exchange a product or service.
A market structure in which one seller controls the entire market.
Businesses that compete for the same customers within a market.
The ability of a business to outperform rivals in the same market.
Making a product meaningfully different from competitors' products.
Obstacles that make it difficult for new competitors to enter a market.
Legal protections for creations such as inventions, trademarks, copyrights, and patents.
1-3 PESTEL Factors 4 terms
A framework used to analyze political, economic, social, technological, environmental, and legal factors.
Government financial support provided to encourage specific business activities.
A government requirement that businesses or individuals must follow.
Capable of succeeding or surviving as a business idea.
1-4 Entrepreneurship & New Ideas 9 terms
The degree to which a product effectively solves a validated customer problem.
A person who develops a new business and accepts its risks and potential rewards.
A customer problem, need, or want that may be addressed through a business solution.
The process of gathering information about customers, competitors, and markets.
Research used to determine whether a product or solution can be developed and delivered effectively.
A problem-solving process focused on understanding users, testing ideas, and improving solutions.
An early model or sample of a product used to test ideas and gather feedback.
The simplest version of a product used to test an idea with potential customers.
The process of generating many ideas before evaluating or selecting the best options.
1-5 Core Values, Mission & Vision 6 terms
Defining beliefs and principles that guide decisions and actions.
Capabilities, skills, and expertise that help a business compete successfully.
A description of what a business hopes to become or achieve in the future.
A statement describing a business's purpose, customers, and primary activities.
A business that seeks profit while also achieving social objectives.
An organization that pursues a mission rather than distributing profits to owners.
1-6 Business Ethics 6 terms
Standards and principles that guide responsible business behavior.
A reward or motivation that encourages a particular action or behavior.
A formal set of expectations and guidelines for ethical behavior within an organization.
A situation in which a person or business must choose between competing ethical considerations.
People inside a business who are affected by its decisions, such as employees, managers, and owners.
People or groups outside a business who are affected by its decisions, such as customers, suppliers, communities, and government agencies.
1-7 Business Organization & Structure 15 terms
A business owned and operated by one person.
A business owned by two or more people.
A business structure that offers owners liability protection and flexible management.
A business legally separate from its owners that can raise capital by selling shares.
The way a business arranges roles, responsibilities, authority, and communication.
A group elected to oversee a corporation and represent shareholders' interests.
The top executive responsible for leading a company and overseeing overall strategy and performance.
Hiring an outside company or individual to perform work that could otherwise be done internally.
Activities focused on persuading customers to purchase goods or services.
Activities used to understand customers, promote products, and deliver value to a target market.
The department responsible for creating and improving products, services, and processes.
The department responsible for producing and delivering goods or services efficiently.
The department responsible for managing money, budgets, financing, and financial planning.
The department responsible for recording, organizing, and reporting financial information.
The department responsible for recruiting, training, supporting, and managing employees.
1-8 Supply Chain & Production 5 terms
Production methods involving skilled workers creating customized or handcrafted products.
Production methods used to create large quantities of standardized products efficiently.
The network involved in producing and delivering a product or service.
A business that helps move products from producers to retailers or customers.
Facilities used to store and distribute products to retailers or customers.
Unit 2 · Marketing 86 terms
2-1 Marketing to Customers 12 terms
The process of understanding customers and creating, communicating, delivering, and exchanging value.
Information collected about customers, their characteristics, behaviors, and preferences.
Measurable customer traits such as age, income, education, and location.
Customer values, interests, attitudes, motivations, and lifestyles.
Dividing a market into smaller groups with similar characteristics.
The specific customer group a business wants to reach.
A description of the traits, preferences, and behaviors of likely customers.
The average cost of gaining a new customer.
The total value a customer is expected to generate during their relationship with a business.
A recommendation from an existing customer that leads to a new customer.
An unauthorized release or exposure of sensitive information.
The fraudulent use of another person's personal information.
2-2 Consumer Behavior 14 terms
The study of how people make purchasing decisions.
Individual characteristics such as age, income, occupation, and lifestyle that influence purchasing decisions.
Motivations, perceptions, beliefs, attitudes, and emotions that influence consumer behavior.
Social influences such as family, peers, culture, and social groups.
Temporary conditions or circumstances that affect purchasing decisions.
Recurring behaviors and habits consumers demonstrate when making purchases.
The study of how thoughts, emotions, and perceptions influence purchasing decisions.
People place greater value on products that appear limited or difficult to obtain.
People are more likely to follow recommendations from experts or trusted authorities.
People are influenced by the actions and opinions of others.
People are more likely to be persuaded by individuals they like or relate to.
People often feel obligated to return favors or acts of generosity.
People tend to act in ways that align with their previous commitments.
People are influenced by those they perceive as part of their group or identity.
2-3 Market Research 18 terms
Collecting and analyzing information about customers, competitors, and markets.
Numerical data that can be measured and analyzed.
Descriptive data such as opinions, experiences, or explanations.
The extent to which a proposed idea can realistically be developed and implemented.
The likelihood that a business idea can be successful and sustainable.
Original information collected directly from customers or other sources.
Existing information collected and published by others.
Testable assumptions about customers, products, or markets.
The process of collecting evidence to determine whether a hypothesis is supported.
A set of questions used to collect data from many respondents.
A small group discussion used to collect opinions about a product or idea.
A structured test used to measure the impact of a variable or decision.
A method of comparing two alternatives to determine which performs better.
A chart, graph, or visual display of data.
A graph that uses bars to compare quantities across categories.
A bar chart that shows totals while also displaying subcategory contributions.
A graph that shows how data changes over time.
A circular chart showing parts of a whole.
2-4 Product 12 terms
A good or service offered to customers.
The process of creating, improving, and refining products.
The process of generating and developing new ideas.
The process of testing whether a product idea solves a customer problem.
The degree to which a product satisfies strong market demand and customer needs.
A clear statement of the value a product offers customers.
The collection of associations, perceptions, and expectations customers have about a business or product.
The stages a product passes through from introduction to decline.
The first stage of the product life cycle when a product enters the market.
The stage when sales increase rapidly and market acceptance grows.
The stage when sales growth slows and competition intensifies.
The stage when sales and demand decrease.
2-5 Price & Pricing Strategies 13 terms
A plan for setting prices to meet business goals.
The value customers believe a product provides.
The average cost of producing one unit of a product.
The profit earned on each unit sold.
Setting price based on production costs plus desired profit.
Setting price based on competitor prices.
Setting price based on perceived customer value.
Setting a low initial price to gain market share quickly.
The ability of a business to raise prices without significantly reducing demand.
The responsiveness of customer demand to changes in price.
An illegal agreement between competitors to coordinate prices or market behavior.
Charging excessively high prices during emergencies or shortages.
Charging different prices to different customers for the same product.
2-6 Place & Channels 6 terms
How a product reaches customers.
The path a product follows from producer to customer.
Selling directly from business to customer.
Selling through intermediaries such as wholesalers or retailers.
Transactions in which one business sells to another business.
Transactions in which businesses sell directly to individual consumers.
2-7 Promotion 11 terms
Communication used to inform, persuade, or remind customers.
A coordinated set of promotional messages and activities.
The combination of promotional tools used to communicate with customers.
Paid promotional messages delivered through various media channels.
Direct interaction between a salesperson and a customer to encourage a purchase.
A persuasive presentation designed to convince a customer to buy.
Short-term incentives used to encourage purchases.
Promotional communication sent directly to targeted customers.
Activities used to build and maintain a positive public image.
Promotion using online tools such as websites, social media, email, and search.
Large and complex data sets used to identify patterns and support decision-making.
Unit 3 · Business & Personal Finance Management 115 terms
3-1 Saving for Future Purchases 20 terms
Setting aside money for future use.
Money received from work, investments, or other sources.
The cost of borrowing money or the reward for saving money.
The percentage charged for borrowing money or earned on savings over a period of time.
A system that automatically transfers money into savings on a regular schedule.
The desire to receive immediate rewards rather than waiting for greater future benefits.
Making an unplanned purchase without careful consideration.
The tendency to increase spending as income rises.
The system through which goods and services are produced, distributed, and consumed.
A general increase in prices over time that reduces purchasing power.
The amount of money needed to maintain a particular standard of living.
The quantity of goods and services that money can buy.
A financial institution that provides checking accounts, savings accounts, and loans.
A member-owned financial cooperative that provides banking services.
A bank account designed for frequent deposits, withdrawals, and payments.
A deposit account that earns interest while allowing access to funds.
A savings account that typically offers higher interest rates and limited transaction privileges.
A time deposit that pays interest for leaving money on deposit for a specified period.
An account that allows users to send, receive, and store money electronically through a mobile device.
A digital currency secured by cryptography and typically operating on decentralized networks.
3-2 Borrowing, Credit & Debt 12 terms
Money borrowed that must be repaid, usually with interest.
A loan backed by collateral.
Property pledged to secure a loan.
A loan not backed by collateral.
Financial services provided outside traditional banks, such as payday lenders and check-cashing businesses.
A lender's evaluation of how likely a borrower is to repay.
Failure to repay a loan as agreed.
A record of borrowing and repayment history.
Organizations that collect and maintain information about consumers' credit histories.
A numerical rating used by lenders to evaluate a borrower's creditworthiness.
An upfront payment made when purchasing an asset using borrowed funds.
Services that help individuals organize, reduce, and repay debt responsibly.
3-3 Accounting & Financial Management 8 terms
The process of recording, summarizing, and communicating financial information.
Reports that summarize a business's financial performance and position.
A common set of accounting rules and standards used in financial reporting.
The department responsible for recording, organizing, and reporting financial information.
Accountants who provide financial information to help managers make business decisions.
Accountants who prepare financial reports for external users.
The department responsible for managing money, financing, and financial planning.
A professional who provides guidance on financial planning and investments.
3-4 Business Expenses 12 terms
Initial costs needed to begin operating a business.
Costs that occur only once and are not expected to repeat regularly.
Costs that occur when a business is first created or launched.
Expenses that occur repeatedly over time.
A cost that can be directly traced to producing a specific product or service.
A cost that supports operations but cannot be directly traced to a specific product.
A regular cost of running a business.
A cost that stays mostly the same regardless of output.
A cost that changes with production or sales volume.
The direct cost of producing goods sold.
The direct costs associated with generating sales revenue.
Insurance that provides benefits to employees injured on the job.
3-5 Financial Capital 15 terms
Obtaining money needed to start, operate, or grow a business.
Money used to fund business activities.
Starting and growing a business using personal funds and internally generated cash.
The point at which total revenue equals total costs.
Raising money by borrowing.
A debt investment in which an investor lends money to an organization.
Raising money by selling ownership.
A share of ownership in a corporation.
Payments made to shareholders from a corporation's profits.
Markets where investors buy and sell previously issued securities.
An increase in the value of an investment when sold for more than its purchase price.
The percentage gain or loss earned on an investment.
An individual's willingness and ability to accept investment risk.
A document outlining a business's goals, strategy, operations, and financial projections.
A presentation designed to persuade investors or stakeholders to support a business idea.
3-6 The Income Statement 14 terms
A financial statement showing revenue, expenses, and profit or loss over a period of time.
Sales revenue minus cost of goods sold.
Expenses related to managing and operating a business that are not directly tied to production or sales.
Costs incurred to market, promote, and sell products or services.
Profit earned from normal business operations before interest and taxes.
The cost of borrowing money.
Income earned before taxes are deducted.
The amount remaining after all expenses, interest, and taxes are deducted from revenue.
The percentage of revenue remaining after cost of goods sold is subtracted.
The percentage of revenue remaining after operating expenses are deducted.
The percentage of revenue that remains as profit after all expenses.
A formula used to calculate the percentage increase or decrease between two values.
An estimate of future revenue, expenses, and profit.
A financial plan that estimates future income and expenses.
3-7 The Balance Sheet & Net Worth 25 terms
A statement showing assets, liabilities, and equity at a point in time.
Assets minus liabilities.
The owner's claim on business assets after liabilities are subtracted.
Assets = Liabilities + Owners' Equity.
Ability to meet short-term obligations.
Assets expected to be converted into cash or used within one year.
Money immediately available for business use.
Investments expected to be converted into cash within one year.
Money owed to a business by customers.
Goods held for sale or used in production.
Assets expected to benefit the business for more than one year.
Long-term assets used in business operations, such as buildings and equipment.
Investments intended to be held for more than one year.
Nonphysical assets such as patents, trademarks, copyrights, and goodwill.
Amounts a business owes to others.
Obligations that must be paid within one year.
Money owed by a business to suppliers or creditors.
Debt that must be repaid within one year.
The portion of long-term debt due within the next year.
Expenses incurred but not yet paid.
Obligations not due within one year.
Loans used to purchase real estate and secured by the property.
Profits kept in the business rather than distributed to owners.
Current assets minus current liabilities.
A legal process for dealing with debts when an individual or business cannot repay obligations.
3-8 The Cash Flow Statement 3 terms
A statement showing cash inflows and outflows.
Money coming into a business.
Money leaving a business.
3-9 Ethics & Financial Reporting 6 terms
Using money in a way that is unauthorized or inappropriate.
The theft or misappropriation of money entrusted to someone's care.
The illegal avoidance of paying taxes owed.
Offering, giving, receiving, or soliciting something of value to influence a decision.
The practice of openly and honestly communicating information.
Intentional deception for financial gain.
Unit 4 · Leading & Measuring Success 32 terms
4-1 Leading & Managing for Success 12 terms
The process of planning, organizing, leading, and evaluating resources to achieve organizational goals.
The management function of setting goals and determining how to achieve them.
The management function of arranging resources and tasks to accomplish goals.
The management function of motivating, guiding, and influencing others.
The management function of assessing performance and making improvements.
The exchange of information between individuals or groups.
Methods businesses use to pay and reward employees.
A compensation system in which employees are paid for each hour worked.
A fixed amount of compensation paid to an employee each year.
Compensation based on a percentage of sales or performance.
A compensation system based on the number of units produced or tasks completed.
A compensation system in which employees receive a portion of company profits.
4-2 Evaluating Performance & KPIs 9 terms
A measurable indicator used to track progress toward a business goal.
A KPI measuring how satisfied customers are with a product, service, or business.
Information measuring a business's ability to keep existing customers.
The total dollar value of products or services sold during a period.
The percentage of total industry sales earned by a business.
The expense incurred to transport products to customers.
A KPI measuring the percentage of orders fulfilled correctly.
A KPI measuring the percentage of deliveries completed by the promised date.
A standard used for comparison.
4-3 Strategy & Decision Making 6 terms
A long-term plan designed to achieve organizational goals and create competitive advantage.
Specific actions used to implement a broader strategy.
A structured approach to evaluating alternatives before making a decision.
Standards used to evaluate and compare possible options.
A decision-making model that stands for Problem, Alternatives, Criteria, Evaluate, and Decide.
A measure of profitability calculated by comparing gains to the cost of an investment.
4-4 Applying Strategic Analysis Frameworks 5 terms
A structured tool used to analyze situations and guide decision making.
A framework for analyzing industry competition and attractiveness.
The intensity of competition among existing businesses.
The cost or difficulty a customer faces when changing from one product or provider to another.
A framework identifying strengths, weaknesses, opportunities, and threats.