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UM / Psychology / PSY 110 / What are the two types of business?

What are the two types of business?

What are the two types of business?


School: University of Miami
Department: Psychology
Course: Introduction to Psychology
Professor: Charles carver
Term: Fall 2016
Tags: business
Cost: 25
Name: Business 200
Description: Notes of one week of class. Material for exam #1.
Uploaded: 01/22/2016
4 Pages 49 Views 1 Unlocks

Introduction to Business

What are the two types of business?

Chapter 1

Business Any profit seeking organization that provides good and services  designed to satisfy the customers’ need  

∙ Adding value to satisfy customers every company in the chain where  a products passes through adds values for the next costumers and for  the ultimate costumer  

∙ Revenue  money that a company brings in through the sale of goods  and services  

o Price that the product it is sold for

∙ Profit  money left over after all the costs involved in doing business  have been deducted from the revenue  Don't forget about the age old question of How to get the message across?

o Symbol of pi= R-C  

∙ Competitive advantage  some aspect of a product or company that  makes it more appealing to its target  

o Example: Nike, Apple

It is a study of how society uses its resources to produce and distribute goods and services. what is it?

∙ Two types of business  We also discuss several other topics like What is a controlled group in an experiment?

o Good producing business  companies that create a value by  making “things”, most of which are tangible  

o Service business  

∙ Barrier to entry  Any resource or capability a company must have  before it can start competing in a given market  

o Difficult to get into that business  

∙ Multiple environment  

o Important things that a business person has to be aware of  ∙ Stakeholders  internal and external groups affected by a company’s  decisions and activities  

o Example  employers, owner of company, manager  

o Chair holder  owner of acuity and firm  

What is taylor rule’s equation?

∙ Disruptive technologies  those that fundamentally change the nature  of an industry, can be powerful enough to create or destroy entire  companies  

o Example: Kodak  Don't forget about the age old question of How do we spend money?

∙ Functional areas  

o Research and development  conceiving and designing new  products (R&D)

o Informational technology (IT) systems that promote  

communication and information usage through the company or  that allow companies to offer new services to their customers  o Manufacturing, production or operations  area where the  company makes whatever it makes or does whatever it does

∙ Marketing

o Everything that is evolved from knowing what the consumer  wants to (research on the consumer) and getting it to the  

consumer, production is not marketing We also discuss several other topics like What causes a solute to be dissolved?

o Is involved with logistic, advertising, branding (logos),  

distribution channel (sell it online, website)  

∙ Finance and accouting  

o Reports to the CFO  

o Ensuring that the company has the funds it needs to operate  o Monitoring and controlling how those funds are spent  

o Drafting reports for company management and outside audience such as investor and government regulators  

∙ Human resources  responsible for recruiting, hiring, developing and  supporting employees  


∙ Economy  study of how society uses it resources to produce and  distribute goods and services  

o Sum of all the economic activity within a given region  

∙ Natural resources

∙ Macro economy  big, looks at the overall big picture, inflation  ∙ Micro  small, looks at the individual, firm, industry  We also discuss several other topics like Define homeostasis.

∙ economy does not grow at a consistent pace  

∙ Factor of production  inputs, capital and labor  things that are used in production to produce outputs

o capital  physical inputs, money  If you want to learn more check out How did the atomic bomb affect society?

o labor  human efforts  

o Technology  how you organize capital (can also be consider a  factor)  

∙ China is a capitalist country even though they call themselves  communist  

∙ Chart  

o Quantity  x axis  

o Price  y axis  

o Higher price the item has a low demand  

o Shift in curve (goes up) is an increase in demand  

 Demand can increase due to good economy in the society,  trend and popularity of the product, consumer think price  is going to go up in the future  

 Normal good  income increase you consume more of  


 Inferior good  income decreases  

o Equilibrium  system at rest  point where the two lines meet

o Supply curve goes down  increase in supply (supply increases  it’s decreasing)  

 Cost of input going down can cause this  

o One curve will move and another one will not  demand goes up  supply stays the same, supply changes demand stays the same  o Equilibrium price goes down, quantity goes up  

o Increase in equilibrium price goes up  decrease in quantity of  demand  

∙ Macroeconomics  

o Growth domestic product over a period of time (Chart)  Straight line  potential GDP  

 Deflation  prices are falling

 Inflation  price rise  

 GDP grows about 3% per year, population grow is 1%  per capita 2%  

o The hill of economy  

 Peak of the business side  economy activities are good   Recession  two or more quarter of negative GDP grow   Trough  

 Recovery  

 Expansion  economy is going up  

∙ Fiscal policy  economic policy implemented by the president (head of  the executive branch) and congress (legislative branch)

o Government spending (road, infrastructure, education, health  care)  

o Taxes  

o Relates to macroeconomics  

∙ Monetary policy  control by the federal reserve, they control price  level and stable economic growth **

o FED funds rate  

o Low interest rate stimulate the economy  Fed have been trying  to do this for years  

∙ Taylor Rule’s equation  

o Pi  inflation, is equal to 2%  

o Greek letter alpha and beta  positive coefficients  

o If inflation is greater than target they are going to raise what the  equation equals to  

o Output grater than potential  slows things down  

o Output less than potential  they are going to speed thing up  o Agro demand  can be affected by stock market crashes  consumers stop spending money  

∙ Market structure  

o Monopoly

o Perfect competition  many buyers and sellers, reentry and exit,  homogeneous products (same products are being produced),  zero profit  

o Monopolistic competition  close to perfect competition but there are differences  

o Oligopoly  a firm, BMW

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