Definitions
Define demand and supply
The quantity of goods and services that consumers are willing to buy at a given price (demand), and the quantity of a product or service that a business is willing and able to provide (supply).
Two Examples of Needs
Food/Shelter/Clothing/Water etc
A ___________ is owned by and governed by its shareholders/stockholders.
Corporation
What type of market structure has many firms producing identical products?
Perfect Competition
Define Price Positioning.
A market strategy that involves setting the price of a product or service in relation to the prices of similar products or services offered by competitors.
Define Point of Equilibrium
The point where supply and demand meet- the price at which the quantity demanded is equal to the quantity supplied.
An electrician is a part of which sector of industry?
Manufacturing
Law firms are usually an example of what business structure?
Partnership
One Example of Monopoly Competition in Canada
Canada Post, electricity providers etc
As the discretionary buying power ________, the demands for goods and services increases.
As the discretionary buying power increases, the demands for goods and services increases.
Define Primary Industries
Businesses that develop and exploit natural resources.
A person's discretionary income increases, what's going to happen to their demand for non-essential goods and services?
It will increase.
Sole-Proprietorship example.
Independent babysitters, photographers, small business owners etc.
Airlines are an example of what market structure?
Oligopoly
List the 5 Factors Affecting Demand.
Price, personal/household income, advertising and promotion, fads and trends, and new technology.
Define Monopolistic Market
A market structure characterized by many firms.
What occurs when there is less supply and more demand.
A shortage
Shareholders can be people or _______.
Companies
What type of market structure guarantees the lowest prices for its consumers?
Perfect Competition
The service sector makes up about __% of the GDP in Canada.
70%
What is the term used if production costs change or there are advances in technology , resulting in an increase or decrease in supply which affects prices.
Supply Shifts
List 3 things to be included in a partnership agreement.
Firm's name & address, partner's name & address, date partnership formed, nature of business, duties/time of partners, amount of capital contributed by each partner, salaries for partners, rate of interest paid on partner's capital account balances, sharing net income/loss, exit procedure, and procedure after death or bankruptcy.
What do the Board of Directors do?
Sets the vision for the company and appoints the senior management.
Firms compete based off of brand loyalty is the market outcome of what market structure?
Monopolistic Competition
List 2 advantages and 2 disadvantages of a Sole Proprietorship.
Advantages: easy/inexpensive to establish, work for yourself, and the owner has all control.
Disadvantages: unlimited liability, difficulty to raise money, hard to sell, and long working hours.