Study guides · Stuff Every Business Scout Should Know
Practice facts for the American Business merit badge. Not an official Scouting America credential. Grab a snack: this guide is the friendly version, with the answers explained and a groan-worthy joke waiting at the end of most cards.
Knowing Business Scout saves you money, time and the occasional embarrassment.
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Short answer: Digital technologies to market products and services
Digital marketing is marketing products and services using digital technologies.
Groan of the day: Digital marketing clicks with modern customers.
Sources: Business
Short answer: To generate profit by creating value above cost
Private-sector businesses primarily aim to generate profit through the creation and capture of economic value above cost.
Groan of the day: That business plan really made cents!
Sources: Business
Short answer: The owner has unlimited liability
A sole proprietor has unlimited liability for all obligations incurred by the business, including operating costs or judgments.
Groan of the day: Sole proprietors carry a lot on their shoulders, and their ledgers.
Sources: Business
Short answer: Limited liability for owners and members
Corporations are separate legal entities from their shareholders, providing limited liability for owners and members.
Groan of the day: Corporations are good at shielding owners, like a legal umbrella.
Sources: Business
Short answer: It has members, not shareholders
A cooperative has members rather than shareholders, and those members share decision-making authority.
Groan of the day: Co-ops decide together, which is a cooperative effort.
Sources: Business
Short answer: Buying rights to run a business from a larger corporation
A franchise is a system where entrepreneurs purchase rights to open and run a business from a larger corporation.
Groan of the day: Franchising lets you run with a big brand's playbook.
Sources: Business
Short answer: Financial information about economic entities
Accounting measures, processes, and communicates financial information about economic entities such as businesses and corporations.
Groan of the day: Accounting is the language of business, so mind your balance.
Sources: Business
Short answer: Money and investments
Finance deals with the study of money and investments, including assets and liabilities over time under risk.
Groan of the day: Finance folks know how to make every cent count.
Sources: Business
Short answer: Maximize employee productivity and protect the company
HR departments aim to maximize employee productivity and protect the company from future issues.
Groan of the day: HR is all about the people, and the puns.
Sources: Business
Short answer: Transforms raw materials into finished goods on a large scale
Manufacturing is industrial production where raw materials are transformed into finished goods on a large scale.
Groan of the day: Manufacturing really makes things happen.
Sources: Business
Short answer: Developing a potential new service or product
Research and development constitute the first stage of development of a potential new service or product.
Groan of the day: R and D is where ideas get their start.
Sources: Business
Short answer: It reduces incidents, insurance costs, and claims
Comprehensive safety systems reduce incidents, insurance costs, and workers' compensation claims.
Groan of the day: Safety first means fewer owies and lower bills.
Sources: Business
Short answer: Efficient and effective operation of a business
Management is the efficient and effective operation of a business and the study of that subject.
Groan of the day: Managers manage to keep things moving.
Sources: Business
Short answer: Financial resources, capital, and human resources
Managers administer three primary components: financial resources, capital (tangible resources), and human resources.
Groan of the day: Managers juggle money, stuff, and people.
Sources: Business
Short answer: Money businesses raise to operate and grow
When businesses need to raise money, that money is called capital, and it can come from many sources.
Groan of the day: Capital is the fuel that keeps business rolling.
Sources: Business
Short answer: Trademarks
Most businesses have names, logos, and branding that could benefit from trademarking.
Groan of the day: Trademarks keep copycats from copying your cat logo.
Sources: Business
Short answer: Intellectual property from competitors
Businesses protect intellectual property such as patents and copyrights to stay profitable against competitors.
Groan of the day: Patents protect ideas so competitors cannot copy them.
Sources: Business
Short answer: An organization of workers pursuing common goals
A trade union is an organization of workers who come together to achieve common goals like better pay and safety.
Groan of the day: Unions show there is strength in numbers.
Sources: Business
Short answer: Union leaders negotiating labor contracts with employers
Union leadership bargains with employers on behalf of members and negotiates labor contracts, called collective bargaining.
Groan of the day: Collective bargaining means everyone gets a seat at the table.
Sources: Business
Short answer: Minimum wage and working hours rules
Laws can govern minimum wage, working hours, and leave, topics covered by labor standards like the FLSA.
Groan of the day: Fair labor rules keep work fair for everyone.
Sources: Business
Short answer: Worker protection and safety
Laws can govern worker protection and safety, which is the focus of the Occupational Safety and Health Act.
Groan of the day: OSHA helps keep workers safe on the job.
Sources: Business
Short answer: Job protected leave for family and medical reasons
Laws can govern working hours and leave, including family and medical leave protections.
Groan of the day: FMLA gives workers room to care for family.
Sources: Business
Short answer: Employee benefit plans like retirement
ERISA concerns employee benefit plans, and commercial law includes employee benefit plans among its areas.
Groan of the day: ERISA helps protect retirement savings.
Sources: Business
Short answer: Administers and enforces major labor laws
The Department of Labor oversees major laws covering wages, safety, leave, and retirement benefits.
Groan of the day: Labor laws work hard for workers.
Sources: Scouting America: American Business
Short answer: Income statement, balance sheet, and statement of cash flows
The three basic financial statements are the income statement, balance sheet, and statement of cash flows.
Groan of the day: Financial statements tell a company's money story.
Sources: Scouting America: American Business
Short answer: They support better decisions
Each financial statement can help business leaders make better decisions by showing financial information.
Groan of the day: Good statements lead to good decisions.
Sources: Scouting America: American Business
Short answer: They influence the flow of money into or out of business
Changes in interest rates, taxes, and government spending affect the flow of money into or out of business and industry.
Groan of the day: Interest rates make money move like a tide.
Sources: Scouting America: American Business
Short answer: By selling securities such as shares
Corporations can raise capital by offering securities for sale, such as through an IPO on a stock exchange.
Groan of the day: Selling shares helps a company raise capital.
Sources: Business
Short answer: Taking a bank loan
Other types of capital sourcing include crowdsourcing, venture capital, bank loans, and debentures.
Groan of the day: Bank loans help businesses get a running start.
Sources: Business
Short answer: It helps protect against financial risks
Business insurance helps protect a company from financial risks and losses.
Groan of the day: Insurance is a safety net for business.
Sources: Scouting America: American Business
Short answer: Marketing products based on environmental benefits
Green marketing promotes products and practices with environmental benefits and sustainability in mind.
Groan of the day: Green marketing is about going green and being seen.
Sources: Scouting America: American Business
Short answer: Operating in ways that consider environmental impact
Sustainable business practices consider environmental impact and aim to reduce harm while operating profitably.
Groan of the day: Sustainability means business with a future.
Sources: Scouting America: American Business
Short answer: It guides making the right decisions at work
Ethics helps guide business decision making so leaders make the right choices at work.
Groan of the day: Ethics keeps business on the right track.
Sources: Scouting America: American Business
Short answer: One has a physical storefront and the other operates online
Brick-and-mortar businesses operate from physical locations, while online businesses operate over the internet.
Groan of the day: Brick-and-mortar has walls, online has clicks.
Sources: Scouting America: American Business
Short answer: Accounting, finance, economics, marketing, and management
The five primary areas of business are accounting, finance, economics, marketing, and management.
Groan of the day: Five areas of business make a full picture.
Sources: Scouting America: American Business
Short answer: Creating, communicating, and delivering offerings of value
Marketing is the activity and processes for creating, communicating, delivering, and exchanging offerings that have value.
Groan of the day: Marketing gets the word out about value.
Sources: Business
Short answer: Auxiliary services like logistics, finance, and insurance
Commerce includes trade plus auxiliary services such as communication, marketing, logistics, finance, banking, insurance, and legal services.
Groan of the day: Commerce is trade plus a helpful crew.
Sources: Business
Short answer: Leading the information technology department
The chief information officer leads the IT department, which supports computer systems for enterprise goals.
Groan of the day: The CIO keeps the tech team on track.
Sources: Business
Short answer: Act as middlemen to get goods to consumers
Retailers, wholesalers, and distributors act as middlemen and get goods produced by manufacturers to intended consumers.
Groan of the day: Middlemen keep products moving to you.
Sources: Business
Short answer: Banks, credit unions, and insurance companies
Financial services businesses include banks, brokerage firms, credit unions, insurance companies, and investment companies.
Groan of the day: Financial services help money find its way.
Sources: Business
Short answer: Intangible goods or services for a fee
Service businesses offer intangible goods or services and typically charge for labor or other services provided.
Groan of the day: Service businesses lend a helping hand for a fee.
Sources: Business
Short answer: Corporation pays tax on profit, then owners pay tax on dividends
Double taxation occurs because the corporation pays tax on profit, then owners include dividends in personal income and pay tax again.
Groan of the day: Double taxation means the taxman takes two bites.
Sources: Business
Short answer: Public company governance and disclosure in the U.S.
In the United States, regulations for public companies are primarily implemented and enforced by the SEC.
Groan of the day: The SEC keeps public companies honest.
Sources: Business
Short answer: A sole proprietorship
In a sole proprietorship the owner and business are not legally separate, so creditors can hold the owner liable.
Groan of the day: This owner wears all the hats, and all the debts too.
Sources: Business
Short answer: The shareholders
A privately owned, for-profit corporation is owned by shareholders, who elect a board of directors to direct it.
Groan of the day: Shareholders vote, then the board takes the wheel.
Sources: Business
Short answer: Enough cash flow for expenses
Business finance ensures sufficient cash flow for ongoing and upcoming operational expenses.
Groan of the day: Cash flow keeps the lights on and the coffee brewing.
Sources: Business
Short answer: Helping companies adjust to a fast-moving business environment
HR is crucial because it helps companies adjust to a fast-moving business environment and rising job demand.
Groan of the day: HR finds the right people and keeps them smiling.
Sources: Business
Short answer: Financial, marketing, human resource, and strategic management
Major branches include financial, marketing, human resource, strategic, production, operations, and other management types.
Groan of the day: Managers juggle many branches without dropping the ball.
Sources: Business
Short answer: Another firm by owning enough voting stock
A parent company owns enough voting stock in another firm to control management and operations.
Groan of the day: Parent companies keep an eye on their subsidiaries.
Sources: Business
Short answer: A process where part of the business is owned by the public
Going public through an IPO means part of the business will be owned by members of the public.
Groan of the day: An IPO is a company's coming out party.
Sources: Business
The whole guide on one screen. Screenshot it, print it, stick it on the fridge.
Think of your answer first, then peek.
Digital technologies to market products and services. Digital marketing is marketing products and services using digital technologies.
Developing a potential new service or product. Research and development constitute the first stage of development of a potential new service or product.
Worker protection and safety. Laws can govern worker protection and safety, which is the focus of the Occupational Safety and Health Act.
Marketing products based on environmental benefits. Green marketing promotes products and practices with environmental benefits and sustainability in mind.
Intangible goods or services for a fee. Service businesses offer intangible goods or services and typically charge for labor or other services provided.
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