Chapter 1
What are wants vs. needs?
Wants: something you desire
Needs: necessities or essentials
What are the 3 sectors of business?
primary, secondary, and tertiary
What are two types of business organizations
sole traders, joint venture, partnership, private limited company, public limited company, franchizes
What is the definition of business objectives?
Definition: business objectives are the specific goals a company aims to achieve
Which VES teacher is originally from Ohio?
Mr Riegert
What is opportunity cost?
Opportunity cost is the next best thing you give up when you make a choice.
Name 2 examples for each business sector.
answers will vary
What is a sole trader and give an advantage and disadvantage
Definition: A business owned and run by one person.
Advantages:
Easy and inexpensive to set up
Full control over decision-making
Keeps all profits
Disadvantages:
Unlimited liability (personal assets at risk)
Harder to raise capital
Long working hours and full responsibility
name two common business objectives
Business survival
Profit
Returns to shareholders
Growth of the business
Market share
Service to the community
Which VES teacher was in a clown show in elementary school?
Ms Bradley
Name 2 pros and 2 cons of specialization
Pros: Greater efficiency and productivity, Lower cost of production, Time is saved, Workers become ‘experts', Production level increases = mass production
Cons: Boredom for workers, Kills motivation, Workers lose flexibility, Invest in training workers for specific skills, Bottleneck production
What is the difference between the public and private sector? What are two examples for each.
public is owned by the govt, private is owned by citizens
What is the difference between limited and unlimited liability?
Unlimited: The business owner is personally responsible for all debts of the business.
Limited:
The owner’s responsibility for business debts is limited to the amount they invested in the company.
name 3 reasons why business objectives might change
Economic conditions (e.g., recession vs. boom)
Business growth stage (startup vs. established company)
Technological advancements
Competitive pressures
Legal and environmental changes
Which VES teacher was Nikolo in the elementary school last year?
Name the factors of production and explain what they are
Land, Labor, Capital, Enterprise
Name 2 of the top 5 industries in the tertiary sector
retail industry, waste disposal, public health, professional services, mass media
What is the difference between a PLC and Ltd?
PLC: A large company whose shares are traded on the stock exchange.
Ltd: A company owned by shareholders, but shares are not publicly traded.
What are stakeholders? What is the difference between internal and external stakeholders? Give two examples each.
Stakeholders are individuals or groups with an interest in a business’s activities.
Types of Stakeholders:
Internal: Owners, employees, managers
External: Customers, suppliers, government, community, creditors, shareholders
Which VES teacher is good at finding 4 leaf clovers?
Ms Hook
What is added value and what are 3 examples of it
Added value is when a business takes something and makes it better so they can sell it for more money.
Creating a brand
Advertizing
Providing customized service
Providing additional features
Convenience
Name the top 3 countries that lead in the tertiary sector
USA, China, Japan
What is a franchise and name two advantages and two disadvantages
Definition: A business model where an individual (franchisee) buys rights to operate under an established brand.
Advantages for Franchisee:
Lower risk with an established brand
Training and support from franchisor
Easier to get financing
Disadvantages for Franchisee:
High initial fees and ongoing royalties
Less control over operations
Dependent on the franchisor's success
What are conflicts between stakeholders? Name and explain two examles of conflicts between stakeholders.
Different stakeholders may have conflicting interests, such as:
Employees vs. Owners: Higher wages for employees vs. higher profits for owners.
Customers vs. Shareholders: Lower prices for customers vs. higher profit margins for shareholders.
Government vs. Business: Stricter regulations vs. lower compliance costs.
Which VES has their scuba license?
Mr Popluhar