Test #1 Flashcards
What is a Free Enterprise?
A free Enterprise is a system of business, in which individuals decide what to produce, how to produce it, and at what price to sell it
(they have the liberty to do what they want and what they don’t want, price, marketing,where)
What is a Business?
A Business is an the action to get profits, to produce and sell, the goods and services that satisfy society’s needs
(it the doing part)
What a successful business must have?
- Be organized
- Satisfy needs
- Earn a profit
What are the resouces you need to be organized?
- Material: if you make some cake you will need sugar, butter.
- Human: making sure that you have enough employer.
- Finance: to maintained the business to pays employer.
- Information: understanding the law and politics, the markets your in
What is a E-Business?
A E-Business is to produce and sell for a profit, the goods and services that satisfy society’s needs on internet
(buy some product online, ex: amazon)
determined the terme profit:
Profit is what remains after all business expenses have been deducted from sales revenue
Revenue – Expenses = Profit
determined the terme loss:
A loss is when a firm’s expenses are greater than its sales revenue (your company will not survive)
What is scarcity?
Scarcity: limited resources (money, time, you don’t have access to every thigh etc.)
1.what is the study of the decisions made by individuals and businesses.
2.what is the study of the national economy and the global economy.
Microeconomics
(small)
Macroeconomics
(big)
Factors of Production: the resource that are necessary to make or give the product
There are 4 such factors:
- Land and natural resources (wood, air, water)
- Labour (offering the service, making sure that the compagni is going good)
- Capital
- Entrepreneurship (creating a new product, a new service)
What are the Types of Economic Systems ?
Capitalism: (they want to own everything: my business, my money)
Socialism: (the government decide what is doing what, ex:the quebec health system)
Communism: (the people decide what are best for them)
Mixed Economy: (the best of every types of economic systems)
what some advantages and some disadvantages of being a sole proprietorship ?
Advantages:
no special taxes
flexibility of being your own boss
retention of all profits
Disadvantage:
you are the responsible
business die with you
difficulty hiring employees
what is a Partnership?
A voluntary association of two or more persons to act as co-owners of a business for profit
what is a General Partner?
- General Partner is a person who assumes full or shared responsibility for operating a business
What is a Limited Partner?
A person who invests money in a business but who has no management responsibility or liability for losses beyond their investment in the partnership
What are the advantages and the disadvantages of a corporation?
Advantages:
Less responsability (liability)
specialized management
Disadvantages:
Double taxation
Difficulty and expense of formation
What is a Merger?
when 2 business joined together and change the name
Small business is ?
an independent business having fewer than 500 employees
What are the advantages and the disadvantages of a small business?
Advantages:
-Personal relationships with customers and employees
-Ability to adapt to change
Disadvantages:
Risk of failure
Limited potential
What are the three basic purposes of a business plan ?
- Communication
- Management
3.Planning
Define the terme Management?
something we are all engage in, the decision we made to get the job done to achive our goals
What is Managers?
Taking all decision: who is doing what, what resources we us this is the thinking work
Who are the Staffing?
employee you will need to produce good or service
What mean Downsizing?
It a negative aspect: when a business need to fire people because they don’t do a good job or because the economy is not going good we cannot kip every employee
