Define each term using the textbook and or slides

1. Needs:Must have in order to stay alive.

2. Wants:Extra’s, you don’t need them to survive but
they make your life more pleasant.
3. consumer:Person or business that buys and uses
food, clothing, or anything grown, made, or
provided by producers.
4. trends:A general direction in society that may last for a
long time.
Ex: Clothing Trends, Using Apps, online shopping etc.
5. fads:A craze that people take up quickly and then drop
just as quickly
Ex: Hula Hoops, pet rocks, pokemon cards etc.
6. business:Production and sale of goods and services to
consumers.
7. good:Any item that you can purchase, possess, and use is
good.
8. services:Helpful acts performed in exchange for
pay.
9. interdependence:Interdependence in a business setting means that
consumers and producers depend on each other.

10. producer:Make goods or provide services, and

consumers buy and use them.

11. manufacturer:Company or business that produces

the goods.

12. business environment:Business environment is the sum total of all

external and internal factors that influence a business.
13. business-to-business:Goods that businesses purchase from
producers are called business-to-business goods, and the consumer, which
in this case is a business, is called a business-to-business consumer.
14. market:A market exists wherever buyers (consumers) &
sellers (producers) come together to do business.

15. demand:Quantity of a good the consumer is

willing to purchase at a certain price.

16. production:Basic function of any business is producing goods and

services.

17. factors of production:The production process has many factors called

factors of production.

18. land:When land is defined as a factor of production, it refers to the

natural resources used to produce goods and services.

19. capital:Capital is the money used to start a business and to keep it

running. Capital includes the value of machinery and equipment required to
produce goods and services.

20. labor:Labour is the human element and includes all mental and
physical work that people put into producing goods and services.

21. information: Knowledge obtained from investigation, study, or

instruction.

22. Entrepreneurship:It is the activity of people who

bring together all the factors of production to start a business.

23. marketing:Marketing can be defined as all the business activities used

to plan, price, promote, and distribute goods or services to satisfy
consumer needs and wants.

24. human resources:Human resources are the people aspect of a

business—in other words,the owners, managers, and employees.
25. management:Management can be defined as the planning, organizing,
and controlling of all business activities.

26. Finance:All businesses need to keep accurate records of the money

coming in and going out.Managing money is referred to as finance.

27. Maslow’s Hierarchy of Needs Please List and explain 5 of

Maslow’s Hierarchy of Needs.
Answer:From the bottom of the hierarchy upwards, the needs are:
physiological (food and clothing), safety (job security), love and
belonging needs (friendship), esteem, and self-actualization.

28. Functions of Business? List and Explain.

Answer:Core business functions are five key areas that you must
execute in addition to your primary function. They are human
resources, finance, marketing, sales, and strategy. These are
universal functions, which means that they are necessary for the
success of any business.
29. List and Explain Factors of Production. Provide an example using
a company of your choice.
Answer:

The factors of production used by Apple Inc. are:

1. Land:
- Apple has manufacturing facilities, offices, and retail stores located
around the world, requiring physical land and real estate.
- The company also relies on natural resources like rare earth minerals
for the production of its electronic devices.

2. Labor:
- Apple employs a large workforce of engineers, designers, software
developers, manufacturing workers, retail staff, and administrative
personnel.
- The company relies on the skills, knowledge, and expertise of its
employees to develop, produce, and market its products.

3. Capital:
- Apple has invested heavily in capital assets such as state-of-the-art
manufacturing equipment, research and development facilities, and
advanced technology infrastructure.
- The company also utilizes financial capital in the form of investments,
cash reserves, and access to credit to fund its operations and expansion.

4. Entrepreneurship:
- Apple's leadership, particularly co-founders Steve Jobs and Steve
Wozniak, as well as current CEO Tim Cook, have demonstrated strong
entrepreneurial skills.
- They have made strategic decisions, taken calculated risks, and driven
innovation to maintain Apple's position as a leading technology company.

By combining these four factors of production - land, labor, capital, and

entrepreneurship - Apple has been able to design, manufacture, and
market its iconic products, such as the iPhone, iPad, and Mac computers,
to consumers worldwide.

Chapter 2
Please Define each term using the textbook and or slides

1. sole proprietorship:A sole proprietorship is a business owned and

operated by one person. The owner is responsible for all operations of the
business and assumes all the risks.

2. unlimited liability:The responsibility for paying all the debts, or

liabilities, of the business on your own is called unlimited liability.

3. partnership:A partnership is a form of business organization in which

two or more people own and operate the business together.

4. corporation:A corporation is a legal entity that exists independently of

its owners,who are called shareholders.
5. shareholders:Shareholders, the people who buy shares in a company,
are all part owners of the company.
6. private corporation:A private corporation can have up to 50
shareholders. Its shares are not offered to the public. A single person
who incorporates may have only one shareholder: him- or herself.

7. public corporation:A public corporation does not have

restrictions on its number of shareholders.Its shares can be sold to the
general public.These shares are bought and sold (traded) on stock
exchanges, such as the Toronto Stock Exchange and the Vancouver Stock
Exchange.
8. Crown corporation:Crown corporations are owned by federal,
provincial, or municipal governments. The function of Crown corporations is
usually to provide a special service to the public.

9. non-profit corporation:Non-profit corporations are not organized to

make a profit. Their purpose is to undertake fundraising, to do research, or
to lobby for a particular cause in order to help people.

10. limited liability:One of the main advantages for those who share
ownership in a corporation is that they are only liable for the company’s
debts to the extent of their financial involvement. This is called limited
liability.

11. co-operative:Co-operatives, also called co-ops, are businesses owned

and operated by a group of people with a strong common interest. The
start-up costs are shared among the members of the co-operative.
Members own and control the business and make all business decisions.

12. franchise:Franchising is one of the fastest-growing forms of business

ownership. A franchisor sells to another person (the franchisee) the rights
to use the business name and to sell a product or service in a given
territory.Franchises are available in many different business sectors.
A franchise agreement is the written contract between the franchise
seller and buyer. Franchise agreements generally permit the franchisee to
use the franchisor’s name, products, and packaging.

13. small business:A small business is one that is independently

operated, not dominant in its field, and meets certain size limits in terms of
employees and annual sales. In all sectors other than manufacturing, a
small business is defined as one that has fewer than 50 employees. In the
manufacturing sector, a small business is one that has fewer than 100
employees.
Please mention at least 2-3 advantages and disadvantages in your
own words. Use Page 32 as reference

Advantages Disadvantages
Sole Proprietorship 1)Owner makes all the 1)Owner has
decisions and is his or responsibility for all
her own boss. debts.
2)Owner keeps all the 2)Costs and time
profits. commitment can be
3)All financial high.
information can be kept 3)Funding can be
secret. difficult to obtain.
Partnership 1)Partners co-own the 1)Partners have
business. unlimited personal
2)They share liability for all the other
responsibilities. partners.
3)They may have 2)They may have
greater financial conflicts.
resources than a sole 3)Partnerships are
proprietor. more difficult to close
down than sole
proprietorships.
Corporation 1)The owners are 1)Corporations have
shareholders. They more complicated
have limited liability for structures than sole
the debts of the proprietorships or
corporation and share partnerships.
the profits.
2)Usually shareholders 2)Employees who are
do not operate the not owners may not be
company.They hire committed to the
employees to do so. business.
3)Corporations can
usually raise funds 3)Corporations must
more easily than sole publish annual
proprietors or partners. reports,which could
 give away important
secrets to competitors.
Franchise 1)Franchisees buy a 1)Franchises can be
business with a good expensive to buy.
reputation.
2)Franchisees may
2)Franchisors supply have to follow a lot of
training and financial rules laid down by the
knowledge. franchisors.
3)Franchisors usually 3)If a franchisor’s
provide business fails, so will
packaging,advertising, the franchisee’s
and equipment to the business.
franchisee.
Cooperative 1)Members own and 1)Because each
control the business. member only has one
2)They share the vote, members may
financial risk. not want to invest
3)Members share the money for expansion.
start-up costs and the 2)Because of the
running of the number of
business. members,making
decisions can be
difficult.
3)Members can have
conflicts.

Revenue:A state's annual income from which public expenses are met.
Expenses:The cost required for something; the money spent on
something.
Profit:A profit is an amount of money that you gain when you are paid
more for something than it cost you to make, get, or do it.
Law of Demand:The relationship between the quantity demanded by
consumers of a particular product and the price.
Law of Supply:The relationship between the quantity supplied of a
particular product and the price.