2. usmeni Flashcards
How are terms economics and economy different?
ECONOMY - relationship btwn production, trade and supply of money in a particular country or region (e.g The economy is in recession.)
ECONOMICS - science that studies economies and develops possible models for their functioning (e.g He stufied economics at the university.)
What is considered to be the starting point of economics? (when, who, what book, metaphor)
Father of economics is considered to be Adam Smith.
Birth of science
is 1776 when
his book ,The Wealth of Nations’ was published.
In this book he used the phrase: ,the invisible hand’ saying that each individual works for his own selfish interest, by doing this he contributes to the public interests.
NAME AND EXPLAIN THE 3 BASIC ECONOMIC QUESTIONS.
1) WHAT to produce? - What goods, services?
2)HOW to produce it? - What technology? What materials? What location?
3)WHO to produce it for? - Who is the target consumer?
What is entrepreneurship and what roles can be played in entrepreneurship?
Goal of entrepreneurship is to combine all the factors of production in order to maximize the profit.
There are several roles:
- ENTREPRENEUR -has initial capital, makes decisions, takes risks
-MANAGER -handles the business without taking the risk(not his/her capital)
-OWNER-has capital, doesn’t handle business
Name the advantages of small entrepreneurship.
- Invention implies the creation of something that did not exist before, that is, something new and original, such as new categories of products, materials or processes.
- Innovations represent the application of a new or significantly improved product (good or service) or a new way of organizing business. What is an innovation for one, may not be an innovation for another organization that may already be applying that product/service, process or business model. Innovations can refer to products, production processes and managerial innovations.
- dependence of large companies on small companies
- creation of new jobs, self-employment
What does social entrepreneurship mean?
What is management and what skills should a manager have?
Management is the process of efficient use of human and material resources to achieve the company’s goals
Skills are divided into three groups:
1) technical - professional knowledge, regarding the technological process
2) social – the ability to communicate inside and outside the company
3) conceptual - looking at the company as a whole, creating a vision and strategy
What leadership (managerial)styles are there and how are they different?
a) autocratic:
-all decisions are made at the top
-subordinates do not offer ideas and superiors do not ask for opinions
-there is no trust
-the flow of information is downward
-motivation by fear and punishment
b) advisory (consultative):
-general policy is conducted at the top, but part of the decision-making is at lower levels
-freedom of speech, ideas are sought, often used; trust is considerable
-the flow of information is downward and upward
-motivation mostly by rewards, rarely punishments
c) democratic (participatory):
-decisions are made at all levels
-subordinates are fully involved in decision-making, trust is complete
-the flow of information is downward, upward and lateral
-motivation is rewards
What activities does marketing include?
defining customers’ needs
- defining best strategy for the product
- efficient distribution of the product
- informing the customer of the product and convincing/persuading them it is right for them
- defining prices
- ensuring product guarantees, …
Name and briefly describe four elements of marketing mix.
PRODUCT - includes: assortment, quality, characteristics, style, brand, packaging…
Assortment is a set of all lines or groups of related products and items. Brand is the name, symbol, slogan; anything that differentiates that product from its competition and
makes it unique.
PRICE - includes: price policy, discounts, reductions, delivery conditions, payment conditions… The role of price depends on several factors: production costs are internal, and demand and competition are external. Prices can be unique (the same for all customers) and differentiated (different for certain groups of customers depending on the time of purchase, place, quantity, payment terms)e.g., loyalty cards, club membership, VIP customers…)
PLACE - This instrument includes distribution and sales on the market. The task of the supplier is to bring the product to the market, sell it and make a profit. There is a difference between direct sales (directly to consumers, e.g.,when they sell their own goods) and indirect or intermediary sales (sales to stores, and they then to the customer, e.g., in retail chains).
PROMOTION - represents a continuous communication process of exchanging information, messages between companies and consumers with the aim of creating a favourable attitude about the product and the company in order to gain the trust of customers. Includes: paid advertising(TV, radio), personal sales, sales promotion, publicity, public relations, multiple message
What are economic goods? How are they divided? Name examples.
Economic goods are limited goods that humans must procure to fulfill their needs.
Economic goods are divided into:
a)Products – material, tangible items which need not to be consumed immediately and can be stored(food, appliances, clothes…)
b) Services – intangible goods, cannot be stored, they are tasks for the benefit of the recipient (haircut,tutoring, kitchen design…)
Explain basic problems of economy?
1) SCARCITY à People have unlimited desires. There aren’t enough resources to produce all goods people desire and want to consume.
2) EFFICIENCY à Since the human desires are unlimited it is necessary to use the limited resources in the best possible way.
3) OPPORTUNITY COST à Choosing one good means giving up on the other. The result of choosing one of the alternatives is called opportunity cost. (I.e., if we have €25 and we can afford either a ticket for a concert or a sports match. If we buy the concert ticket we are giving up on the sports match.)
Name and describe the four groups of resources (input).
RESOURCES – inputs, everything that is used for production;
1) natural resources (soil, forest, ore deposits, water, …)
2) labour – human (physical or intellectual)
3) capital – goods that are used to produce another good
(a car can be used for personal use but if we drive a car as a taxi service, the car is capital)
4)entrepreneurship -combination of all of the above
What types of economic systems exist?
a) Traditional economies – present in the past, occupations were inherited, barter (good swapped for good, not for money)
b) Command economies (planned) – economic activities are planned, government makes economic decisions („visible hand”)Ownership is not important but the domination of the state.
c) Market economies – everything is being done by the laws of supply and demand, the role of state hardly notable, market determines all activities
d) Mixed economy – combination of all above. Today systems are mostly arranged this way; many things are left to the market
Što podrazumijeva proces tranzicije? (HR)
Transition - process of going from planned to market economies.
conversion (pretvorba) – from social to state ownership
privatization (privatizacija) – from state to private ownership
What is market? Name types of market (by location, goods, market structure).
MARKET – meeting point of supply and demand where the prices are determined
There are types of market:
- by location: local, regional, national, international
- by goods: oil market, diamond market, stock market,….
-market structure: number of suppliers(monopoly, duopoly, oligopoly)&number of buyers(monopsony, duopsony, oligopsony)
What are supply and demand? Explain their laws.
DEMAND - the willingness of consumers to buy goods considering different prices, at specific place, at specific time
Law of demand:The higher the price, the lower quantity of goods, and reversed.
SUPPLY - the willingness to offer goods considering different prices, at specific place, at specific time
Law of supply:Suppliers are willing to offer more goods for the higher price, and reversed.
What is capital and in what forms does it exist?
CAPITAL - the economic good that creates another economic good. It can be:
- material - assets (buildings, machinery, equipment, vehicles, …even body parts…)
- non-material – copyright, skills, innovation, patent, …
The most common form of capital is the financial form – MONEY.
Other forms of capital:
- ecological (renewable and non-renewable natural resources)
- human capital (knowledge, skills, well-being, motivation, health)
- social capital (creative surroundings, cooperation…)
Nabroji tipove poslovnih organizacija u RH. (HR)
1)DRUŠTVA OSOBA -Poslovne organizacije nastale udruživanjem osoba/članova koji za poslovanje tvrtke odgovaraju cijelom svojom imovinom
a) Komanditna društva – jedan član cijelom imovinom, ostali samo do dogovorenog
iznosa
b) Javna trgovačka društva – svi članovi odgovaraju cijelom imovinom
2)DRUŠTVA KAPITALA -Temelj je povezivanje kapitala, članovi odgovaraju samo uloženim iznosom /kapitalom
a) Društvo s ograničenom odgovornošću – d.o.o.
b) Dioničko društvo – d.d.
c) Jednostavno društvo s ograničenom odgovornošću – j.d.o.o.
