unit 1 Flashcards
what is a producer?
provide businesses that make goods or services.
what is a consumer?
people who use the goods or services provided by businesses.
what is a marketplace?
any location where producers and consumers come together.
ex: malls, farmer’s market, restaurant
what is a trend?
a general direction in society that may last for a long time
- major impact on consumer buying habits
- safe and more predictable investment
- businesses prefer to invest in trends
ex: crowdfunding, iPhones, self-checkouts
what is a fad?
a craze that people take up very quickly and then drop as quickly. consumers don’t have a long term commitment to fads and it’s more risky for a business
ex: fidget spinners, silly bands, rainbow loom
what is an obsolete?
a product or service that consumers no longer want because it has become outdated or has been replaced by a new and improved product
what are wants?
things that are more extra in your life. you don’t need them to survive but they make your life more pleasant.
ex: phones, cars, designer clothes
what are needs?
things you must have in order to stay alive.
ex: food, water, shelter, clothes
what is Maslow’s Hierarchy of Needs?
a theory of human motivation. he developed a hierarchy of needs. once lower needs are met, people move onto the next needs.
- needs are their motivators
How do advertisers use Maslow to help create ads?
they try to make ads that will convince people that the product will fulfill various levels of the needs people feel they need to have.
label the Maslow pyramid:
top to bottom (small to big)
level 5: self actualization level 4:esteem needs level 3: belongingness and love needs level 2: safety needs level 1: biological and physiological needs
example of physiological needs:
- oxygen
- water
- food
- sleep
example of safety needs:
- free from abuse
- security
- law
example of love needs:
- acceptance
- dating
- sense of love
example of esteem needs:
- status
- responsibility
- reputation
example of self actualization needs:
- personal growth
- fulfilment
- self aware
Sole Proprietor adv and disadv:
adv:
- be your own boss
- easy to start and end
- profits go to the owner
disadv:
- unlimited liability
- financing may be difficult
- owner may not be familiar with all aspects of business
Partnership adv and disadv:
adv:
- more capital and financing
- shared responsibilities
disadv:
- unlimited liability in general partnerships
- partner disagreements
Corporation adv and disadv:
adv:
- limited liability
- transfer of ownership is simple
disadv:
- timely and costly start-up
- people who own only a few shares do not have much influence on how the company is run
Co-operatives adv and disadv:
adv:
- less expensive goods/services
- easily set up
disadv:
- decision-making process could be difficult
Franchise adv and disadv:
adv:
- brand recognition
- less expensive cost of products
- uniform quality of products
- support from franchisor (ready made business)
disadv:
- expensive to purchase
- monthly & advertising fees
- little/no control over menu and prices
what are the three different types of corporations?
- private
- public
- crown
what is a sole proprietor?
a sole proprietorship is a business owned by one person.
- unlimited liability
what is a partnership?
a business with two or more partners who share the responsibilities and profits/losses.
types:
- general (most common) – unlimited liability
- limited – limited liability
