chapter 1-5 enterprise Flashcards
SME
small and medium sized business
-less than 250 people
-turnover less than £50m
primary sector
industries that are involved with the extraction or production of raw materials
secondary sector
industry that produces finished product from raw materials
tertiary sector
service sector of an economy
business plan
a document that contains the objectives of a business, marketing plan, operation plans, and financial plans
monopoly
-pure monopoly has 100% market share
-EU and UK consider anything with over 25% market share to be a monopoly
oligopoly
many businesses but only a few dominate
-differentiated products with strong brand identity
monopolistic competition
large number or small businesses
-some differentiation
-weak brand identity
-few barriers to entry
-low control over prices
perfect competition
large number of similarly sized businesses
-price takers
-homogenous goods
-equal technology and all customers have the same information
cartel
when businesses in an oligopoly collude together to raise prises together
price maker
a firm with the power to set prices without worrying about competitors prices
critical mass
a market segment is big enough to make the productions of a products worthwhile
market equilibrium
when the demand and supply curve intersect
normal goods
consumer products such as food and clothing
have a direct correlation between demand and supply
YED between 0 and 1
inferior goods
they have a negative income elasticity
YED < 0
luxury goods
they are more sensitive to changes in income
YED > 1
sample
small group that represents a wider market
the consumer rights act
-all goods must be satisfactory quality
-fit for purpose
-match description
services must be
-reasonable price
-within reasonable time
-reasonable care and skill
ombudsman
they will investigate a dispute and make a final decision
the competition and markets authority
set up to make sure that the market works for the consumer and investigate monopolies
