Studied by 4 peopleneeds vs. wants
needs: something that is necessary to live
wants: something that isn’t necessary to live but would be nice to own
business
an organization or enterprising entity engaged in commercial, industrial, or professional activities
profit
the amount gained by selling a good
competition
when two or more businesses offer similar products in the same market
market research
the gathering of information about potential consumers (ex. needs and preferences)
consumer
they pay something to consume goods and services that were produced
scarcity
the demand for a good/service is greater than the availability of that good/service
supply
the quantity of a product of service that a business has to offer
demand
the consumer’s willingness to buy a product or service at a given time or overtime
equilibrium
the state where the market supply and demand balance are equal and as a result, prices become stable
business cycle
a cycle of economic activity that consists of recession, recovery, growth, and decline
sole proprietorship
a type of business where someone owns a unincorporated business by themselves
partnership
a type of business where two or more people share ownership and responsibilities
corporation
a type of business where many shareholders own the business and they select multiple directors to help with the business
demographics
statistical data relating to the population and particular groups within it.
psychographics
the study of consumers based on their activities, interests, and opinions
geographics
a marketing strategy that presents potential customers with targeted messaging based on their geographic location
buying behaviors
the way that people behave when they buy things, such as what they buy, where and when they shop, and how much they spend
checking account
a bank account used for everyday deposits and withdrawals
steps to write a check
put the date
write who the check is for
write the payment amount in numbers and words
write a memo
sign the check
check register
a journal is where you can track your cash/check transactions during an accounting period
scholarships/grant/loan
a payment of money to aid someone while they’re paying off something
internships
an opportunity to network with new people and sharpen your skills before entering a workforce
w-9 form
an IRS form that lets your employer know how much money to withhold from your paycheck for federal taxes
i-9 form
a form to identify and verify the employment authorization of individuals for employment in the US
types of credit
revolving credit, installment credit, and open credit
getting/keeping credit
make payments on time
credit history
it’s your credit activity (ex. paying your bills, how many credit cards you use, what types of credit, and how much debt you have)
loans
a sum of money someone gets and that person agrees to pay that money back overtime
mortgage
a secured sum of money that is paid overtime
down payment
the cash that the buyer pays upfront in a real estate transaction the other large purchases
credit fraud
an unauthorized taking of another's credit card information for the purpose of charging purchases to the account or removing funds from it.
bankruptcy
people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan
identity theft
when someone steals your personal information to commit fraud
spam
unwanted, unsolicited digital communication sent out in bulk.
phishing
a technique for attempting to acquire sensitive data
stocks
a form of security that indicates the holder has proportionate ownership in the issuing corporation and is sold predominantly on stock exchanges
investing
an asset or item acquired with the goal of generating income or appreciation
rule of 72
a calculation that estimates the number of years it takes to double your money at a specified rate of return
PYF
(pay yourself first) prioritizing your long-term financial well-being before paying anything else
risk vs rewards
the prospective reward an investor can earn for every dollar they risk on an investment
smart goals
specific, measurable, attainable, and relevant
delayed gratification
the act of resisting an impulse to take an immediately available reward in the hope of obtaining a more-valued reward in the future
opportunity cost
the loss of potential gain from other alternatives when one alternative is chosen.
cash flow
the movement of cash into or out of a business, project, or financial product
SARA
(Safety Analysis Risk Assessment) is a comprehensive review of how safe conditions in the facility are, including an assessment of any workplace procedures and security measures in place.
variable expenses
expenses that change from month to month (ex. dining out)
fixed expenses
expenses that cost the same amount each month (ex. rent)
period expenses
expenses that are paid across a period of time
Note
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