Economics
What are shopping goods?
Goods that consumers compare on quality, price, and style before making a purchase.What are shopping goods?
What is a sole proprietorship?
A business owned and operated by a single individual.
Compare flat and hierarchical management structures.
A flat structure has few or no levels of middle management, while a hierarchical structure has multiple levels of management.
What is the primary role of a manager in a business?
To plan, organize, and coordinate resources to achieve business goals.
North Korea, the government
Define durable goods and provide an example.
Goods that are not purchased frequently and last for a long time, such as cell phones or expensive sneakers.
Define partnership in a business context.
A business structure where two or more individuals share ownership and responsibilities
Give an example of a business that uses a flat management structure.
Many startups and tech companies use flat structures to promote collaboration.
Name a type of consumer good that may be considered unsought.
Funeral services or life insurance.
What are Sanctions and Embargoes?
Geopolitical tensions can lead to trade restrictions such as sanctions and embargoes that impact economic growth and supply chains.
The US sanctions on Russia following the invasion of Ukraine are a recent example.
What are unsought goods?
Goods that consumers do not think about regularly and may not know about, such as life insurance.
What does LLC stand for and what is one benefit of this structure?
Limited Liability Company; it provides personal liability protection to its owners.
What is one benefit of a hierarchical management structure?
Clear lines of authority and responsibility among employees.
Give an example of a specialty good.
Luxury watches, fancy cheese, or high-end electronics.
What is capitalism?
Unrestricted free market trade. No government influence or oversight.
Explain the difference between specialty goods and shopping goods.
Speciality Goods are high end luxury items, shopping goods are items consumers are price shopping around to find the best price with the most features.
Identify and explain one advantage of a corporation.
Limited liability for shareholders, meaning they are not personally responsible for the company's debts.
How does management differ from leadership?
Management focuses on organizing and coordinating resources, while leadership is about inspiring and motivating people.
What is a key characteristic of a durable good?
It is designed to last for several years without needing to be replaced.
What is a traditional economic system? What would be an example?
An economic system is a system where customs, traditions, and beliefs shape economic decisions and activities. It's often found in rural and less developed areas where people rely on subsistence farming, hunting, fishing, and gathering to meet their basic needs.
The Amish would be an example.
What type of good is Mrs. Ott's daily Starbucks habit? Why?
A specialty good (luxury item).
What is liability in terms of business ownership?
The legal responsibility of a business to pay debts and obligations.
Explain why both management and leadership are essential in a business.
Management ensures tasks are completed efficiently, while leadership fosters a positive environment and drives change.
Discuss the importance of understanding business structures for an entrepreneur.
It helps in making informed decisions about liability, taxation, and management styles.
What are two ways global events impact local economies.
1. Supply Chain Disruptions
2. Commodity Price Fluctuations
3. Tourism and Hospitality
4. Currency Fluctuations