not self explantory stuff Flashcards
Consumer Guarantees Remedies
Replace
Refund
Repair
Fair Trading Act
Protects consumers against:
Misleading and deceptive conduct
Unfair trading practices
False and misleading representation
Consumer Guarantees Acts - Guarantees (5)
Acceptable quality
Replaceable parts
Reasonable price
Fit for purpose
Service is completed in reasonable time
Unlimited Liability
If your business fails and you are sole trader or partnership the bank can take your personal possessions to pay back the debt.
Primary Sector
The economic sector that extracts raw materials/natural resources from the earth.
Secondary Sector
The economic sector that turns raw materials into finished goods.
Tertiary Sector
The economic sector that provides services to the population.
Capital resources
These are man made goods use to produce other goods and services.
machinery, tools, factories,
Economic problem in business
Scarcity of resources but unlimited wants.
how to satisfy unlimited wants with limited means
3 types of expenses
Administrative, Financial, Distribution
Extended Accounting Equation
Assets + Expenses + Drawings = Liabilities + Owners Equity +Income
Owner Equity / Capital
The value of the business investment to the owner
Assets - Liabilities = Owners Equity
Channels of Distribution (4)
The way in which goods will be available to customers.
Examples
Manufacturer -> Consumer
Manufacturer -> Retailer -> Consumer
Manufacturer -> Wholesaler -> Retailer -> Consumer
Manufacturer -> Agent -> Wholesaler -> Retailer -> Consumer
Price Skimming
Setting a high price for a new product initially due to its unique advantage or lack of competition.
Penetration Pricing
Price is set lower than competitors to quickly gain market share.
