Business Unit 1 deck 2

• Define unlimited liability

  When there is no separation between the business assets and the owner's personal assets.
• Define turn key operation

  When everything is provided by the franchise.
• What is whistle-blowing?

  When an employee informs officials or the public about an illegal or ethical violation.
• What is a trend?

  A general direction in society that may last for a long time.
• What is a need?

  Something that is essential for survival
• What is a want?

  Something that is NOT essential for survival but adds comfort or pleasure to your life.
• Define interdependence

  Businesses rely on each other.
• Define duty to accommodate

  An employer's obligation to ensure accessibility for all employees.
• Define glass ceiling

  Refers to an invisible barrier preventing people, women or minorities from reaching senior positions in a company.
• What is revenue?

  The amount fo money gained from the sale of products or services
• What are morals?

  Rules we use to decide what is good or bad.
• What is fraud?

  A crime of lying or pretending.
• Define fad

  A craze that people take up quickly but also tend to drop as quickly.
• What are ethics?

  Rules that help tell the difference between right and wrong.
• What is a depression?

  Occurs when economic activity is very low and unemployment is very high.
• What is an inflation?

  Refers to the rise, over time, in the price of goods/services.
• What is a stock?

  A small piece of ownership in a corporation.
• What is insider trading?

  Buying or selling shares of a company based on confidential information.
• What do consumers have?

  Consumers have needs and wants that need to be satisfied.
• What are 3 reasons why businesses exist?

  -To make a profit

  -Providing goods or services

  -Satisfy consumer needs and wants
• Business needs you and you need business. Explain.

  Businesses need me to buy their goods and services, work for them, and make a profit. I need businesses to satisfy my needs and wants, provide me with a job, and to get goods and services.
• Define proxy

  When someone votes on behalf of another at a shareholder meeting.
• Define obsolete

  No longer want or need for a product.
• Define entrepreneur

  Someone who starts their own business based on an idea of theirs.
• Define equilibrium price

  It is the point where the supplier and the consumer agree to sell and purchase the product at a certain price.
• What is a franchise agreement?

  Outline of a business agreement between the franchisor and the franchisee to operate a franchise.
• Define conspicuous consumption

  The purchase of goods or services to display one's wealth to gain status or a reputation in society. (Designer clothes, jewelry, luxury cars)
• What are the factors that affect supply?

  -Change in number of producers

  -Price of related goods

  -Change in technology

  -Change in expectations

  -Change in cost of production
• What are the factors that affect why we buy?

  -income and price

  -status

  -current trends

  -customs and habits

  -safety

  -promotion
• What is the difference between the manufacturing and the service industry?

  Manufacturers produce goods and the service industry provides services.
• What is Maslow's hierarchy of needs?

  It is a pyramid with the types of different needs of a person. The types are physiological, safe and security, love and belonging, self-esteem, and self actualization.
• What are the 5 forms of business ownership?

  -Sole proprietorship

  -Partnership

  -Corporate

  -Cooperative

  -Franchise
• What is sole proprietorship?

  Owned and operated by one person.
• What is partnership?

  Owned and operated by two or more people.
• What is corporate?

  A corporation is a large company or group or people that are incorporated.
• What is cooperative?

  Owned and run by its members.
• What is a franchise?

  A franchise is a joint venture between a franchisor and a franchisee.
• What are the advantages and disadvantages of a sole proprietorship?

  Advantages: easy and inexpensive to form, all profits go to you, tax advantages.

  Disadvantages: unlimited liability, lack of continuity, difficulty raising capital.
• What are the advantages and disadvantages of a partnership?

  Advantages: easy to start up, equal share in management, profit, and assets, start up costs would be shared equally.

  Disadvantages: unlimited liability, hard to find a suitable partner, disagreements.
• What are the advantages and disadvantages of corporate?

  Advantages: limited liability, continuous existence, easier to raise capital.+

  Disadvantages: more expensive, closely regulated, possible conflict between shareholders and directors.