Test 1

Question 1

2 sources of wealth

Answer 1

labour and capital

Question 2

sole proprietorship advantages

Answer 2

easy and inexpensive to register
not many regulations
direct control
all profits go to the owner
tax advantages if the business is not doing well

Question 3

sole proprietorship disadvantages

Answer 3

unlimited liability
income is taxable at your personal rate
difficult to raise capital
no continuity

Question 4

general partnership advantages

Answer 4

easy and inexpensive to register
not many regulations
equal share of management, profits
tax advantages if the business is not doing well

Question 5

general partnership disadvantages

Answer 5

unlimited liability
difficult to find a partner
possible conflicts between partners

Question 6

corporation characteristics

Answer 6

like a person
can own property
existence different from shareholder's
may sue or be sued
can sign contracts

Question 7

corporation advantages

Answer 7

limited liability
ownership is transferable
continuity
easier to raise capital

Question 8

corporation disadvantages

Answer 8

closely regulated
costly to start up
lot of documentation
conflit between shareholders

Question 9

what is a shareholder?

Answer 9

own the corporation through shares
one share = one vote
elect the director

Question 10

4 corporate officers

Answer 10

CEO - executive
CFO - financial
COO - operating
Secretary

Question 11

CEO

Answer 11

ultimate responsibility, reports to board of directors

Question 12

CFO

Answer 12

financial matters, decisions

Question 13

COO

Answer 13

day-to-day affairs

Question 14

Secretary

Answer 14

keeps affairs, documents, records

Question 15

private vs. public corporation

Answer 15

private : often family owned

public: secondary market (stock market)

Question 16

cooperation characteristics

Answer 16

legal entity
owned by members (1 member = 1 vote)
shared needs, shared goals

Question 17

crown corporations examples

Answer 17

Via Rail
Canada Post
Hydro-Québec

Question 18

types of competition

Answer 18

monopoly - none
oligopoly - barely
monopolistic (open) - some
perfect - very

Question 19

internal environment (5)

Answer 19

human ressources
accounting and finance
operations
sales and marketing
management

Question 20

free market = ?

Answer 20

capitalism

Question 21

planned economy = ?

Answer 21

communism

Question 22

free market characteristics

Answer 22

labour and capital for wealth
production and distribution by individuals
prices by supply and demand

Question 23

planned economy characteristics

Answer 23

government-owned
classless
loyalty to leader and government

Question 24

four phases of the business cycle

Answer 24

expansion
peak
contraction
trough

Question 25

recession definition

Answer 25

GDP decline for 2/4

Question 26

depression definition

Answer 26

long recession

Question 27

GDP definition

Answer 27

the monetary value of all the finished goods and services produced within a country's borders in a specific time period (a year)

Question 28

economic indicators (4)

Answer 28

GDP - gross domestic product CPI - consumer price index PPI - producer price index unemployment rate

Question 29

inflation definition

Answer 29

prices rise - too many dollars trying to buy too few goods

Question 30

deflation definition

Answer 30

prices drop - too few dollars trying to buy too many goods

Question 31

start from scratch advantages

Answer 31

choice of market, products, location | no previous bad decisions

Question 32

start from scratch disadvantages

Answer 32

no preestablished clientele harder to get credit time consuming logistics of suppliers, employees

Question 33

SWOT analysis

Answer 33

strengths weaknesses opportunities threats

Question 34

4 ps of marketing

Answer 34

product place price promotion

Question 35

2 types of markets

Answer 35

B2C | B2B

Question 36

pricing - price skimming

Answer 36

high price because of development, research

Question 37

pricing - penetration price

Answer 37

low price to attract

Question 38

pricing - discounting

Answer 38

price cutting, promotions, rewards program

Question 39

pricing - bundling

Answer 39

selling two products as a unit

Question 40

types of distribution channels

Answer 40

``` producer agent wholesaler retailer customer ```

Question 41

promotion - advertising

Answer 41

paid communication

Question 42

promotion - public relations

Answer 42

press conferences, public images

Question 43

promotion - personal selling

Answer 43

face-to-face promotion

Question 44

promotion - sales promotion

Answer 44

contests, samples, price drop