Quiz #1 Flashcards
What are resources referred to as?
Resources are referred to as factors of the production.
What are the factors of production aka economic resources?
- Land.
- Labour.
- Capital.
- Entrepreneurship.
What are Land resources?
All the raw materials from the earth, sea/oceans, and air.
(Metal, grain, wind power.)
What are Labour resources?
All the physical and cognitive/mental efforts needed to produce goods or services.
(Plumber, architect, hair stylists, computer programmer, etc.)
What are Capital resources?
Any good that is used to make other goods or services.
(Equipment, tools, buildings, machines in a business, roads, etc.
What are Entrepreneurial resources?
A person to assembles and coordinates all the other resources.
(A business owner.)
What’s a good?
An item that can be seen and touched which can be purchased.
(Phones, clothing.)
What’s a service?
When knowledge or skills are provided in return for payment.
(Cutting hair, painting.)
What are producers?
The businesses that make goods or provide services that consumers need or want.
What are customers?
The people who purchase goods and services from producers.
What are consumers?
The people who use goods and services from producers.
What’s a market?
A location where producers and consumers come together to buy and sell their goods and services.
What’s revenue?
The income earned from selling goods or services.
What are expenses?
The costs related to providing and selling the goods or services.
(Rent, heat, salaries, cleaning, cost of merchandise, office supplies, etc.)
What’s profit?
The money left over from sales after the expenses/costs of a business have been paid.
What’s a business?
The production and/or sale of goods and services to satisfy the needs and wants of consumers usually with the purpose of making a profit.
What kinds of businesses are there?
- Local.
- Regional.
- National.
- Global.
What two types of businesses are there?
- For Profit: A business that produces or sells goods and services to satisfy the needs, wants, and demands of consumers for the purpose of making profit.
- Not-For Profit: An organization that operates strictly to help people in a community.
What is Maslow’s Hierarchy of Needs from top (least important) to bottom (most important)?
- Self-Actualization | Personal growth and fulfilment.
- Esteem Needs | Status, responsibility, reputation, respect and confidence.
- Social Needs | Belong to a group, trust and acceptance.
- Safety Needs | Security, structure and stability.
- Physical Needs | Shelter, warmth, food and drink.
What are the six factors of needs and wants?
- Age.
- Economic Times.
- Society.
- Location.
- Marital Status.
- Social Status.
What are the types of business ownership?
- Sole proprietorships - One owner.
- Partnership - Two or more owners.
- Limited Company / Corporation - The corporation is a separate legal entity from its owners. The owners are called shareholders.
- The Cooperative - Business is owned, financed, and controlled by member-patrons, who share risks and benefits.
- Franchises - Can be a combination of any of the above forms.
What does liability mean, as well as the different types of it?
- Liability - Legally responsible.
- Unlimited Liability - There is no separation between the company’s assets and the owner’s personal assets.
- Limited Liability - There is a separation between the company’s assets and the owner’s personal assets.
