Final Exam Flashcards
What is a Business?
A business is an organization that produces or sells goods and services to meet the needs, wants, and demands of consumers for the purpose of making a profit or not.
What are the 3 types of businesses?
1) Service business - Generates a profit by doing something for other businesses or consumers. Like movie theathres and airlines.
2) Retail business - Generates a profit by selling things, usually bought from a manufacturer and then sold. Like grocery or department stores.
3) Manufacturing business - Generates a profit by producing products from raw materials for component parts and then selling it to retailers. Like car or appliance manufacturers.
Define “The Role of the Consumer”
The role of the consumer is what goods and services they want, when they want it, and how much they are willing to pay for it.
What is marketplace?
Market place is where the buying and selling of products take place, made up of producers and consumers.
Define products, goods, and services.
1) Products - Are goods and services that are provided by a business.
2) Goods - Are things that are made to be sold, they are tangible.
3) Services - Is the action of doing something for someone.
Whats the difference between producers and consumers?
1) Producers are businesses that produces goods or provides services.
2) Consumers are people who buy and use products or services.
What is competition and obsolete products?
1) Competition is when producers make products that meet the same needs of the same consumers.
2) Obsolete products are products that consumers no longer want or need.
What is purchasing power and consumer purchasing power?
1) Purchasing power - Producers have this when they can charger higher prices and raise prices when costs go up.
2) Consumer purchasing power - Consumers have this when they can choose where they will buy their goods and services and how much they are willing to pay for it.
What are wants vs. needs?
1) Needs are goods and services that are required for survival. (Food, water, and shelter)
2) Wants and goods and services that enhance a persons life. (Designer clothes, vacations, and tvs.)
What are fads vs. trends?
1) Trends - Is a general direction that society moves in and consistently follows for a long time.
2) Fads - Is a short term craze that becomes popular and unpopular that people follow and drop quickly.
What is the Maslows’s Hierarchy of Needs?
1) Psyhcological needs - Basic needs of survival (Food, water, and shelter.)
2) Safety needs - Goods and services that satisfy your need for safety (Locks, and security.)
3) Self belonging/love needs - Goods and services that makes you feel love and accepted by others. (Designer clothes and dating.)
4) Esteem needs - Goods and services that make you feel respected by others. (Job status, and higher education.)
5) Self accutilization needs - Gives you inner peace and a sense of fulfilment, expecting nothing in return (Donating and charity.)
Define supply and demands
1) Supply - The quantity of goods and services that sellers are willing to provide for consumers.
2) Demand - The quantity of goods and services that the market is willing to buy.
What is the law of demand? List three factors that can impact demand.
The law of demand states that as the price of a good or service increases consumer demand decreases, and vice versa.
- Changes, in price, population, and prefrence.
What is the law of supply? List three factors that can impact supply.
The law of supply states that as the price of a good or service increases, the quantity offered also increases.
- Changes in technology, production costs, and environment
What is Ethics and Ethical Behaviour?
1) Ethics - Are rules that help us tell the difference between right and wrong.
2) Ethical Behabiour - Is a conduct that conforms ethics, induvidual behabiour, and social standards about what is right and good.
