Grade 10 Business Review

2753 Words12 Pages
18 June 2011

Business Review

Business Fundamentals

Economic Basics
Basic survival needs for individuals are food, clothing, and shelter. A want is something that adds comfort or pleasure to their lives. Strategies to attract consumer interest are to create something new and/or improve, promote the latest trends, or compete with similar businesses.

Demand, Supply, and Price
Demand is the quantity of a good or service that consumers are willing and able to buy at a particular price. Some conditions that create demand are consumer awareness, price, supply, and accessibility.

Law of Demand and its relationship to prices and consumer is defined as the following: * When prices decrease, consumers buy more and the
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The motive for this type of business is service, not profit. An example of a retail co-operative is the Independent Druggists’ Association. * Franchise: In a franchise operation, the Franchiser licenses the rights to its name, operating procedure, etc. to another business, the franchisee. A franchisee basically buys a licence to operate a ready-made business. Some advantages are bargaining power with suppliers and a high success rate. Some disadvantages are big businesses don’t always make a profit, owning a franchise makes it difficult to get out of.

Different types of businesses: * Retail: A business that buys goods and resells them to consumers. * Service: A business that tries to satisfy the needs and wants of consumers by providing a service such as cutting hair. * Manufacturing: produces a product and provides it to retailers, for example General Motors. * Crown: A business owned and operated by the government.

People would choose to start a business because they want to be responsible for decisions and become the boss. If their business is successful, they will likely make more money than working for another person’s business.

Business Ethics and Social Responsibility
Ethics are rules that help us tell the difference between right and wrong. They encourage us to do the right thing. Values tell us what is important. They help us make decisions about right and wrong.

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