Business Fundamentals Flashcards
+ / - of sole proprietorship
+ Easy to start
- Unlimited liability
+ / - of partnership
+ Division of responsibility,
- Unlimited liability
+ / - of corporation or cooperative
+ Limited liability and stock for capital
- Hard to apply
+ / - of franchise
+ Marketing and idea already set up
- Pay fees to open and less freedom
Maslow’s hierarchy of needs
Physiological, safety, love/belonging, esteem, self actualization
Factors influencing consumption
- Income and price
- Status
- Current trends
- Customs and habits
- Safety
- Promotion
Situational influences on consumption
- Time
- Surroundings
- Terms and conditions
- Objective
- Mood
List two + / - of international business
\+ Access to larger markets \+ Access to new resources \+ Cheaper labour - Loss of local jobs - More competition - Social costs (environment and labour abuses)
5 p’s of international business
- Promotion (technology = promotion anywhere)
- Product (access to new goods)
- Price (cheaper production)
- Proximity (close proximity encourages trade)
- Preference (countries specialize in certain goods)
List three barriers to international business
- Tariffs (tax on imports)
- Non tariff barriers (high standards)
- Excise tax (tax on production or sale of certain products)
- Costs of shipping increase landing cost
- Currency fluctuations
List two advantages of CSR
- Increase in sales and consumer loyalty
- More investment
- Employee retention
- Support from community
Comparative vs. absolute advantage
Comparative: Able to produce goods at lower cost
Absolute: Able to produce better goods, more efficiently
6 factors of production
Natural Resources, Raw materials, Labour, Management, Capital
