Role and Classification of a Business
Name the 3 main classifications of a Business.
Industry Sector, Legal Structure, Size
The main activity in which a business is involved.
Prime Function.
Which type of market has the lowest number of firms and highest control over prices.
Monopoly
Mention the 4 stages of the economic cycle.
Prosperity
Recession
Depression
Recovery
A statistic that reflects an increase in the price of goods and services.
How would an industry that exploits natural resources be classified?
Primary Industry
Can a Prime Function of a Business change over the time?
Yes
The total value of goods and services produced by all people in the workforce in a country over a financial year.
Gross Domestic Product
In which stage of the economy cycle do consumers borrow too much money?
Prosperity
An index that keeps track of the price of a basket of goods bought by a typical consumer.
Consumer Price Index (CPI)
How would an industry that provides services to the economy be classified? (Contact with the final consumer)
Tertiary Industry
The segment of the market on which the business concentrates its marketing effort.
Target Market
What happens to the demand when the price of a good/service increases?
The demand decreases
After how many months of GDP decline is a country considered to be in recession?
Two quarters (six months) in a row.
What is the formula for the balance of trade?
Easiest and cheapest type of Legal Structure in which one person owns and runs the business but is personally responsible for debts.?
Sole Trader
Sets out the main purpose and goal of the business.
Mission Statement
Refers to the sensitivity of the demand to a change in price.
Elasticity
TRUE OR FALSE: The recovery stage of the economic cycle is characterized by:
High rates of unemployment
Low wages
Reduced consumer spending
Banks charge an ___________ to businesses or their best clients when they borrow money.
Interest Rate
How much the Company its worth in terms of the number of shares multiplied by its share price...
Market Capitalization
Which is the target market of Fisher Price.
The direct users: babies, toddlers, and preschoolers, specifically children aged 0 to 5 years old.
Primary decision-makers and purchasers: Parents, Grandparents and Gift-givers.
Mention the main external factors influencing business.
Political
Economic
Social
Technological
Ethical
Which are the two ways the government can help when there is a recession in the economy?
Fiscal Policy: spending more and lowering taxes
Monetary policy: changing interest rates
Mention one economic cost of unemployment and one social cost.
ECONOMIC
SOCIAL