101 - 103 Flashcards
What is a business plan?
A business plan makes clear the objectives of the business and how the business intends to achieve these objectives.
What is a market?
A market is any place where buyers and sellers meet to exchange goods/services.
What does competition refer to?
Competition refers to the number of businesses in a market.
What is a competitive market?
A competitive market is one where numerous producers compete to provide goods and services consumers want and need.
What is mass marketing?
Mass marketing is where a business sells to the whole market and markets the product to all consumers in the same way.
What is a niche market?
A niche market targets a smaller segment of a larger market where customers have specific needs and wants.
What is market size?
Market size is the total number of sales, by value or volume, in a market as a whole.
What is market share?
Market share measures the sales of a firm relative to the total sales in the market.
What is market segmentation?
Market segmentation is the process of subdividing a market into identifiable subgroups with similar needs, wants, or characteristics.
What is a monopoly?
A monopoly is a single or dominant business within a market, often with high barriers to entry and price-making ability.
What is an oligopoly?
An oligopoly is a market dominated by a few large companies, engaging in non-price competition and having high barriers to entry.
What is monopolistic competition?
Monopolistic competition involves many relatively small businesses with few barriers to entry and similar products with some differentiation.
What is perfect competition?
Perfect competition is a market with many small firms producing virtually identical products at similar prices.
What is consumer protection?
Consumer protection laws prevent harm such as goods not being fit for purpose or not of merchantable quality.
What is demand?
Demand is the quantity of goods/services that consumers are willing and able to buy at a given price, at a given time.
What is supply?
Supply is the quantity of goods/services that producers are willing and able to supply to the market at a given price, at a given time.
What is market equilibrium?
Market equilibrium is the price where quantity demanded is equal to quantity supplied.
What is price elasticity of demand?
Price elasticity of demand measures the sensitivity of demand to a change in price.
What is price elastic?
Price elastic means price elasticity is greater than one, where quantity demand rises or falls by a larger percentage than the price change.
What is price inelastic?
Price inelastic means price elasticity value is between 0 and 1, where a change in price results in a smaller percentage change in quantity demanded.
What is income elasticity of demand?
Income elasticity of demand measures the responsiveness of demand to a change in income.
What is income elastic?
Income elastic means income elasticity is greater than one, where quantity demand rises or falls by a larger percentage than the income change.
What is income inelastic?
Income inelastic means income elasticity is between 0 and 1, where quantity demand rises or falls by a smaller percentage than the income change.
What are inferior goods?
Inferior goods are products that have negative income elasticity; as incomes decrease, demand increases and vice versa.
What are normal goods?
Normal goods are products that have positive income elasticity; as incomes increase, demand increases and vice versa.
What are luxury goods?
Luxury goods are goods for which demand increases significantly when incomes increase, and vice versa.
