Exam 1 Vocab Flashcards
Franchise
Contractual agreement between parent company and franchisee
Ex. Parent Company - Tim Hortons, Franchisee - individual stores
Channel Management
Strategies to manage the distribution channels that get goods/services from producers to consumers.
Goal: satisfy customer wants/needs - provide good customer service
Sole Proprietorship
- Owner assumes all risk
- Individual owns the busniess personally
Corporation
Owned by stockholders - limits losses/risks to the amount each individual owner invested
Partnership
Divides risk between 2-3 parties
Channel of Distribution
Pathway through which goods/services move from producers to consumers involving various intermediaries such as wholesalers and retailers.
Channel members
Individuals that participate in the distribution process
Manufacturers
- Start of the distribution channel
- Companies that produce goods
Wholesalers
Intermediaries that purchase large quantities from manufacturers and sell them in smaller amounts to retailers or other businesses.
Distributors
Role of distributing products to various retailers or directly to consumers, often providing additional services like storage and logistics.
Retailers
Businesses that sell products directly to consumers(stores, online shops, and other outlets).
Agents/Brokers
Individuals or firms that facilitate sales between producers and buyers without taking ownership of the goods.
Customers
End users of products or services who complete the channel.
Horizontal Channel Integration
Combining w/businesses at the same level of the distribution chain
Vertical Channel Integration
Combining w/businesses at different levels of the distribution chain
Tort
Private wrongdoing that potentially harms another person or entity.
Plaintiff
Individual or entity that initiates a lawsuit in a civil court, claiming to have been harmed by a tort and seeking damages or relief from the defendant.
Duty of Care
Basic principle that expects all individuals and
businesses to exhibit socially responsible behavior by using caution to prevent harm and by watching out
for one another.
Doctrine of sovereign immunity
Universally accepted principle that each nation has the right to manage its own government and develop its own laws.
Memorandum
Written message/document in a business
Channel Conflict
Occurs when channel members compete among themselves for customers. Can by minimized by having each channel sell different products, so they are not directly competing among themselves for business.
Jargon
a specialized language known only to a certain group of people; a term
Opportunity cost
Benefit lost when you decide to use resources for one purpose rather than for another
Limited-line businesses
Specialize in the products that they offer for sale. Usually carry an excellent assortment of those goods
