Week 1 Flash Cards

What is a business model?
A business model is a clear, simple outline of how the business intends to generate revenue.
What are four ways that business can benefit society?
Business can benefit society by offering valuable goods and services, providing employment, paying taxes, and contributing to national growth, stability, and security.
Do all companies have an R&D function? Explain your answer.
No. Many companies simply resell products that other firms make or continue to make the same goods or perform the same services year after year.
How is the role of a financial manager different from the role of an accountant?
A financial manager is responsible for planning, while an accountant is responsible for monitoring and reporting.
What is professionalism?
Professionalism is the quality of performing at a high level and conducting oneself with purpose and pride. True professionals exhibit seven distinct traits: striving to excel, being dependable and accountable, being a team player, communicating effectively, demonstrating a sense of etiquette, making ethical decisions, and maintaining a positive outlook.
Why is the economic concept of scarcity a crucial concept for businesspeople to understand?
The economic concept of scarcity is a crucial concept for businesspeople to understand because scarcity creates competition for resources and forces trade-offs on the part of every participant in the economy. First, businesses and industries compete with each other for the resources they need, including materials, employees and customers. Second, given this universal scarcity of resources, businesses are constantly forced to make trade-offs, such as deciding how much money to spend on advertising a new product versus how much to spend on the materials used to make it, or deciding how many employees to have in sales versus customer support.