Fundamentals (Unit 2) Flashcards
Define bear market
a market in which prices are falling, encouraging selling.
define bull market
a market in which share prices are rising, encouraging buying.
Define share holder
A person who owns stocks
What are the factors of production
Natural human capital
Define natural resources
Raw materials extracted from the earth
Define human resources
Labor or knowledge to transform raw materials into goods or services
Define capital resources
Tools, equipment, or anything that can assist in the production of goods or services
Define economic resources
Goods and services that are provided to individuals or businesses to produce goods and services for consumers
What are economic systems
A way of dealing with the selection, production, distribution and consumption of goods and services
In most cases, it takes a culmination of what three things to create the goods and services that businesses provide
All three economic resources
What happens if there isn’t enough of an economic resource? (i.e. oil)
The price of it increases and alternatives must be found
What are the two types of economic systems
Command economy and free market economy
What does it mean when people say that businesses are interdependent
They rely on the goods and services from a variety of businesses to satisfy the customers needs and wants
What two economic systems determine
What should be produced for who these things should be produced and how they should be produced (TRIANGLE)
What is the law of demand
When demand is high prices low a.k.a. the kung fu law
What is quantity demand
The quantity of goods and services that consumers are willing and able to buy at a particular price [a specific point on the demand)
What is the demand curve
The line on the graph
What four things create demand
Consumers, ample supply, price and accessibility
How are consumers part of creating demand
They are aware of or interested in the goods or services businesses do this by advertisement
How is ample supply part of creating demand
They need to make sure they have enough
How is price part of creating demand
In these be reasonable and competitive
How is accessibility part of creating demand
The product must be accessible
What four things affect demand
Change in consumers incomes, change and consumers tastes, change what we expected future, change in population
What is supply
The quantity of goods or services that businesses are willing and able to provide within a range of prices that people are willing to pay
What is the law of supply
as supply increases price increases(superman law)
Conditions affect supply
A change in the number of producers, price of related goods, change in technology, changed expectation, change in cost of production
What is an equilibrium
It occurs at the price in which quantity demanded equals quantity supplied
Define Shortage
It occurs when quantity demanded exceeds quantity supplied
What is surplus
Occurs when quantity supplied exceeds quantity demanded
How is price determined
By supply and demand as well as the cost of producing or providing the good or service
define ethics
They are rules that help us determine the difference between right and wrong, they are standards of conduct that side he believes people should follow, they encourage us to do the right thing but they vary from person to person and situation to situation and culture to culture
What is ethical behavior
Conduct that confirms to ethics, individual beliefs and social standards about what is right and good
What is values
It tells us what is important to help us make decisions about right and wrong it is related to ethical behavior
What are morals
Rules be used to decide what is good or bad again this is related to ethical behavior
What is the difference between values and morals
Morals are rules and values is what is important to us
What is the code of ethics
A document that explains specifically how employees should respond in certain situations
Can businesses still at unethically without breaking these laws
Yes
Why are business ethics important to organization
Because profitability is not just about making money in the short-term but about building relationships with society to ensure money in the long term
What is ethical dilemma
A situation where difficult trace must be made between two or more options, it is a moral problem with the choice between potential right and wrong
What are some questions consider when dealing with an ethical dilemma
Who will be helped by what you do, who will be hurt by what you do, what are the benefits and problems of each decision, will the decisions survive the test of time
What are some examples of ethical dilemmas
Discrimination, pollution control, employee rights, etc
What is whistleblowing
When an employee in forms officials or the public about an illegal or ethical violation
How can whistleblowers make their allegations
Internally or externally
What is fraud
The crime of lying and pretending
How did some businesses commit fraud
By misleading consumers and trying to trick them into buying something in order to maximize the profits
What is the competition act of Canada
Bands the type of fraud and the deception of businesses practices
What are the different types of fraud
Accounting, bank, consumer, contract, insurance, mail, pure amid, stock market, telemarketing, and welfare
What are the roles of marketing
Salad of business makes and manage a business is brands
What are the parts to managing a business is brands
Research, development, sales, distribution, advertising and promotion
What are the two c’s of marketing
Competitive market and consumer market
What is competitive market
Other businesses that compete with us for consumer dollars
What are the two types of competition
Direct and indirect
What is direct competition Titian
Other sellers of product similar to ours
What is in direct competition
Other spending needs that may draw consumers away from our products
What is consumer market
Character people who buy our products
What are demographics
Include age, gender, family lifecycle, income and ethnicity and culture
What factors are considered in consumer market
Demographics and lifestyle
What are the four p’s
Product price place and promotion
What are the two types of marketing research
Secondary data and primary data
What is secondary data
Information that others have collected
What is primary data
Current information that researchers collect and analyze for a specific person and it typically comes from and use her or target market
What is a target market
Specific group that business has decided to aim it’s marketing efforts and ultimately it’s merchandise
What is the product lifecycle
Introduction, growth, maturity, decline
Explain the introduction stage
AKA the launch, consumers don’t even know it exists so businesses need to inform the consumer about Pollux features and ability, package, design and branded identification early adopters are most of you to buy this but this is a very expensive stage if the product fails company loses money
Define growth
Early adaptors trying product and others are seeing it and want to try it as well in the competition grows and they want to improve it and sell it as their own, then advertising starts and though survive on the top of the growth cycle but only if you survive
Define maturity
The growth is flat and new consumers replace those Aleve, all costs have been paid for, appetizing case product alive in the consumers minds and companies expand their brand
What is decline stage
The sales decrease in businesses research the markets to find out why, and they make changes
Give exampled of life cycles
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What are the two reasons businesses develop products and services
Because it can’t end because they see a need
What are the different types of channels of distribution
Vending machine, online, markets, retail stores, catalogs, comarketing
What are the different methods of transportation
Ship, Truck, train, plane, pipeline`
What are the three components to a brand
Brand-name, logo and trademark, slogan
What is investing
To use money to earn more money, to use your money to purchase stocks in a company or to buy property… It’s in order to make a future profit
Define consumer
People who bought the product or service
What are stocks
Chair of the value of the company bought or sold or traded as an investment
Define liquidity
the availability of liquid assets to a market or company.
liquid assets; cash.
a high volume of activity in a market.
Define producer
a person, company, or country that makes, grows, or supplies goods or commodities for sale.,
Define marketplace
the arena of competitive or commercial dealings; the world of trade.
Define shares
Having a portion of the company
Book value
accounting value) of each share of stock. Book value is a company’s net asset value, which is calculated by total assets minus intangible assets and liabilities.
Define brokerage
the business or service of acting as a broker
Define dividends
a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
Define collectables
an item valued and sought by collectors.
Define levels of risk
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