Business test 1# Flashcards
Definition of a Business?
Important classification is the business is for-profit or Non-Profit
What is for- profit
- sells goods or service
-satisfy needs/ wants
What is non-profit
-purpose (not-profit)
-May still be interesed in raising funds
What does profit mean?
Income that is left after all cost/expensives paid
What does cost mean?
the amount of money required for each stage of production
What does service mean?
-assistance provided
(usally in return for payment to satisfy needs/wants of people or businness.)
What does goods mean?
items that have value and can be seen or touched.
what are the 3 of business + definitions
- Service
Generates profit by doing something for other businesses or consumers. - Retail
Generates profits by selling things. - Manufacturing
Generates profit by producing products from raw materials or component parts (semi-processed) and then selling them to distributors/retailers.
What is the public and private sector
Public sectors:Federal, Provincial and Municipal governments (“employers”)
private sectors: Businesses are individually owned and operated.
what is CROWN CORPORATIONS
vs PRIVATIZATION
crown corporations is owned by municipal, provincial or federal government vs Privatization When a publicly (government) owned business or industry is sold to the private sector.
What are the 6 reasons why “we buy”
1.INCOME & PRICE
2. STATUS
3. CURRENT TRENDS
4. CUSTOMS & HABITS
5. SAFETY
6. PROMOTION
what are the 5 situation influences
1.time(when)
2.Physical & Social Surrounding (where)
3. Terms and Conditions of Purchase (how)
4. Objective of Purchase (why)
5.States and Moods
What are the 4 different types of economies systemes?
1.Traditional economy
2.Command economy
3.Market economy
4.Mixed Economy
What are the 4 different types of competitives market structures?
1.Perfect competition
2.Monopolistic Competition
3.Monopoly Competition
4.Oligopoly Competition
What are the 5 Maslow’s hierarchy of needs?
level 1.Physiological Needs
level 2.Safety and Security
level 3.Love and belonging
level 4.Self-esteem
level 5.Self-actualization
What’s the difference between Need and Wants?
Need- Necessary for survival
Want- Is something not necessary for survival but add pleasure or comfort to life
Who is Abraham Maslow?
Maslow was a famous psychologist who studied human behaviour and discovered that behaviour is motivated by various “needs”.
4 Factors that affect demand?
Change in consumer income
Change in consumer tastes
Change in future expectations
Change in population
what is the difference between demand and supply?
DEMAND: the quantity of a good or service that consumers are willing and able to buy at a particular price
SUPPLY: quantity of a good or service that businesses are willing and able to provide within a range of prices that people would be willing to pay
whats the law of supply?
As price increases supply increases
As price decreases supply decreases
whats the law of demand?
If price decreases consumers buy more so demand increases
If price increases consumers buy less so demand lowers
5 Factors that affect supply?
Number of producers
Changes in price
Changes in technology
Changing expectations for the future
Changing production costs
what is Equilibrium?
Equilibrium: when supply and demand are equal
This is the goal of the economy
what are the definition of an Perfect competition?
It refers to the market in which there are man firms selling a certain homogenous (identical) product. The price is determined by the market forces of supply and demand.
what are the definition of an Monopolistic competition?
occurs in markets when there are multiple similar products that are not perfect substitutes to one another.
what are the definition of an Monopoly competition?
A market structure that consists of a single seller or producer and no close substitutes, and creates barriers for competitors to enter the marketplace.
what are the definition of an Oligopoly competition?
A market structure with a small number of firms, non can keep the others from having heavy significant influence.
whats the difference between consumers vs producers?
-Producers create, or produce, goods and provide services
-consumers buy those goods and services with money.
what is traditional economy?
In a traditional economy, elders answer the economic questions based on traditions.
what is command economy?
The government in a command economy owns all the resources and means of the production and will determine how the products will be produced and distributed.
what is market economy?
Economic decisions and the pricing of goods and services are guided by the interactions of a country’s citizens and businnesses.
What is mixed economies?
There are no pure command or pure market economies.
What happens when a price of an product is too high?
Supply is excessing
What happens when a price of an product is too low?
excess demand
