Business And Marketing KOSSA terms Review 1 Flashcards
Economic services
Intangible like a haircut
Economic resources
Needed to operate a business: land, labor, capital, entrepreneurship
Economy
The way a nation makes economic choices about what, how, and for whom goods are produced
Time utility
Having the product at a time/day convenient for the customer
Place utility
Having a product where customers can but it
Possession utility
Offering several ways to possess the product
Information utility
Giving customer information about product
Supply
Amount of goods producers are willing to make and sell
Demand
Customers willingness and ability to buy products. Higher demand typically higher price
Price
The value placed on a product by the customer
Capitalism
Private ownership of businesses and marketplace competition
Socialism
Increased government involvement. Government runs key industries and try to provide employment
Communism
The government runs everything
Market economy
Government lets the market answer what gets produced how and for whom
Command economy
Government controls the factors of production
Mixed economy
A mix of both market and command economy principles
Inflation
Rising prices of products
Unemployment rate
How many people are working/ unemployed
Gross domestic product
How many products are being made in our country
Regulator
Making laws to protect the safety, health, and wellness of individuals and protect freedoms
Provider of services
Military, roads, bridges, police, education, libraries
Supporter of businesses
Small business administration, establishing trade alliances, consumer of services
Competitor
Government owns the US post office, Amtrak, and TVA
Economic risks
Changes in business condition - competition, government regulations, inflation, recession
Human risks
Theft, breakage, injury, incompetence
Natural risks
Tornadoes, fires, hurricanes, lightening, floods
Risk prevention and control
Employee training, safe working conditions, prevention of theft
Transferring the risk
Having insurance, warranties from manufacturer
Risk retention
Keeping small risks, uncontrollable risks
Risk avoidance
Anticipate risks in advance- market research, don’t make bad investments/purchases for business
Competition
Struggle between companies for customers
Price competition
Focuses on the sale price of the product
Economic goods
Something tangible like a car
