Business Fundamentals 1-3

Question 1

Why might the demand of a product change so fast overnight?

Answer 1

-Seasonal Factors
-Sales/promotion
-Supply chain issue
-Public/safety concerns

Question 2

How would the price and supply be affected by a product?

Answer 2

The higher the price, the higher the quantity supplied.

Question 3

3 examples to demonstrate how businesses respond to consumers needs and wants

Answer 3

-Product development: apples releases newer and newer phones with features based on consumers feedback
-Personalization: Nike allows customers to design their own shoes with colour, design, materials
-Service/support: Amazon has features like one-click order for convenience

Question 4

Difference between essential goods/services

Answer 4

Goods: goods are physical objects that are supplied that are necessary for living (food, water, clothes etc)
Services: A service supplied for you that you need to live (hospital, government hydro workers etc)

Question 5

What’s a luxury good/service

Answer 5

Goods: tangible object that you don’t need to survive (car, phone, luxury brands)
Services: Services provided for personal enjoyment (movies, sports, spa)

Question 6

What’s demand and supply

Answer 6

Demand: people who can buy the product/how the company makes money
Supply: amount of product

Question 7

2 What factors AFFECT demand

Answer 7

-Price: the cost of a product/service can change depending on the price. Lower prices= increase demand (vice versa)
-Marketing/advertising: effective marketing strategies can create awareness

Question 8

2 things that CREATE demand

Answer 8

Income levels: the amount of money a person will make affects the target market of the product which creates the demand
Consumer taste: Consumer taste rangers and if your product matches a lot of consumers taste, then the demand will go high

Question 9

What if Lifestyle advertising

Answer 9

A type of marketing that focuses on creating a connection between a product or service and the consumers lifestyle

Question 10

How can Lifestyle advertising create unrealistic expectations?

Answer 10

-Selective highlighting: focusing on the best aspects of a product/service and ignoring the downsides
-Exaggerating Benefits: Exaggerating on the benefits and outcomes of a product making it seem more effective than it is

Question 11

5 Factors that influence consumer behaviour?

Answer 11

Psychological, social, cultural, personal, and economic

Question 12

What is conspicuous consumption?

Answer 12

A purchase of a good/service for the specific purpose of displaying one’s wealth

Question 13

4 forms of Business Ownership

Answer 13

Sole Proprietorship, Partnership, Corporation, Co-operative

Question 14

Sole Proprietorship

Answer 14

You are the business and 100% the owner

Question 15

Partnership

Answer 15

2 or more owners of the business

Question 16

Corporation

Answer 16

The business has shareholders

Question 17

Co-operative

Answer 17

Business is owned and controlled by an association of members

Question 18

Pure command Economy

Answer 18

Government dictates the level of production of goods and controls their distribution and prices

Question 19

Pure Market Economy

Answer 19

A system in which economic decisions are made involving little government intervention

Question 20

Mixed Market Economy

Answer 20

An organization with some free market elements with little government intervention

Question 21

Which economy is Canadian

Answer 21

Mixed market economy

Question 22

What is Privatization

Answer 22

The transfer of a Business or service from public to private ownership and control

Question 23

5 ways businesses impact the community

Answer 23

-Local Jobs
-Encourage entrepreneurs
-Increase tax base
-Skill Development
-Increase technology

Question 24

4 stages of business cycle

Answer 24

-Expansion
-Peak
-Recession
-Depression

Question 25

How long does a business cycle last

Answer 25

5 and a half years roughly

Question 26

How does supply and demand affect market prices?

Answer 26

The more supply the more demand
The less supply the less demand
Based off this prices will change on how high demand is

Question 27

Why do governments develop policies and actions that regulate markets and business activities?

Answer 27

So that everything stays legal and runs smoothly

Question 28

Fixed expense

Answer 28

Remain the same regardless of production output

Question 29

Variable cost

Answer 29

May change based on the amount of output produced

Question 30

What is a marketing board?

Answer 30

Is an agency mandated to preform promotion and development of activities to regulate and control the production and marketing of a particular product

Question 31

Equation for profit

Answer 31

Profit= Selling price - Cost price

Question 32

4 aspects that define business success

Answer 32

-Product
-Market
-Money
-People

Question 33

Why is social responsibility important measure of a business success

Answer 33

To promote positive brand recognition, increase customer loyalty and attract too-tier employees

Question 34

The difference between Direct and indirect competition

Answer 34

Indirect- products/services that promote same idea but different
Direct- products/services that promote the exact same idea is the same way

Question 35

3 aspects of à competitive image

Answer 35

-Accessibility, organization, and security