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a product or service that consumers no longer want because it has become outdated or has been replaced by a new and improved product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
what is a corporation?
a type of business owned by but existing separately from its shareholders.
what are co-operatives?
a business owned by the people, or members, who buy the products or use the services that the business offers.
what are franchises?
in a franchise operation, one business, the FRANCHISOR, licenses the rights of its business to another, the FRANCHISEE.
what is unlimited liability?
they are liable for all business debts if the business can’t pay its liabilities.
what is limited liability?
where a person’s financial liability is limited to a fixed sum, most commonly the value of a person’s investment in a company or partnership.
what is supply?
the quantity of a good or service that businesses are willing and able to provide within a range of prices that people would be willing to pay
what is demand?
the quantity of goods or service that consumers are willing and able to buy at a particular price
what is shortage?
occurs when there is excess demand where quantity demanded is greater than quantity supplied.
what is surplus?
occurs when there is excess supply where quantity supplied is greater than quantity demanded.
what is quantity supplied?
as prices increase, producers will increase the quantity of goods they provide.
what is quantity demanded?
as the price of a good increases, quantity demanded decreases.
what is equilibrium?
it’s where supply and demand are balanced. the optimal price for both supplier and consumer
what is price?
determined by supply and demand (as well as the cost of producing or providing good/service).
what is ethical dilemma?
a moral problem with a choice between potential right and wrong.
what is ethical behaviour?
conduct that conforms to ethics
- individual beliefs and social standards about what is right and good
- values, morals
what is a code of conduct?
a document that explains specifically how employees should respond in certain situations. helps different people approach problems the same way.
what are some ethical dilemmas in businesses?
- expense reporting
- pay discrepancies
- workplace harassment
- time theft
- tax fraud
what is a whistleblower?
when an employee informs officials/public about an illegal or ethical violation. they make their allegations internally or externally.
what are the 6 types of fraud?
- accounting fraud
- bank fraud
- consumer fraud
- contract fraud
- telemarketing fraud
- stock market fraud
what is domestic transaction?
the selling of items produced in the same country
what is international transaction?
the selling of items produced in other countries. these items contribute to the global economy.
what is a trade surplus?
where a country earns more from exports than it pays for imports.
what is a trade deficit?
where a country pays more for imports than it earns from exports.
what is a balance of trade?
a relationship between the value of imports and the value of exports. countries try to import the same total value of products that they export.
what is offshoring?
the practice of hiring service providers from countries where labour costs are lower to complete some or all of the steps in the production process.
what are the 5 p’s of international business?
- preference
- promotion
- product
- price
- proximity
what are the costs of international trade?
- offshore outsourcing
- human rights or labour abuses
- environmental degradation
benefits of international trade?
- access to markets
- cheaper labour
- increased quality of goods
- access to resources
what are the common mistakes businesses make when they go internationally?
- currency exchange rates
- shipment methods
- tariffs
- production standards
- ethical standards
- lack of research
