Chapters 2-5 Flashcards
(30 cards)
difference between direct and indirect competition
- direct competition: competition between products that are very similar (ie/ McDonald’s and Burger King)
- indirect competition: competition between products or services that are not directly related to each other (ie/ Subway and McDonald’s)
disposable vs. discressionary income
- disposable income: money that goes towards necessities such as rent and food after taxes
- discretionary income: money that an individual can spend to their wants, save, or invest
monopoly
monopoly: when one company controls, dominates, and owns all or nearly all the market for a type of product/service (ie/ almost 90% of searches happen on Google)
oligopoly
oligopoly: when a few companies share in the consumer market, and a particular market is controlled by a small group of firms (ie/ Apple, Samsung, and Huawei own a combined market of over 50 percent of the entire global market)
what is e-commerce
- refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions
- e-Commerce is often used to refer to the sale of physical goods online, but it can also describe any kind of commercial transaction that is facilitated through the internet
benefits of e-commerce for organizations
- expands the marketplace
- decreases cost
- excessive inventories and delivery delays can be minimised
- enables companies to interact closely with customers
- reduced paper transactions and transportation costs
benefits of e-commerce for customers
- they can shop or perform transactions 24 hours a day
- more choices
- digital products, quick delivery
- customers can interact with each other
- locate product information quickly
benefits of e-commerce for society
- more individuals can work from home
- less travelling for work, school, or shopping
what is the difference between equity and debt financing?
- debt financing: borrowing money in the form of a loan that will be paid back with interest
- equity financing: selling part ownership of a company to get funding for the business
what is e-sports
- a form of competition using video games
- takes the form of organized, multiplayer video game competitions, particularly between professional players and team
what is an entrepreneur?
- a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so
- an entrepreneur is someone who starts their own business, and attempt to bring their product to market
what is CSR
corporate social responsibility is the duty of a company’s management to:
- work in the best interests of the society it relies on for its resources
- to advance the welfare of society
- to act as a good global citizen through its policies
various methods of CSR
- making charitable donations
- treating employees ethically
- being environmentally conscious
- ensuring safe working environments
- sponsoring local sports teams
- creating and promoting diverse workplaces
the pros of CSR
- can be used as a marketing tool
- dissuades governments from implementing regulations that could interfere with business
- helps companies attract and retain excellent employees
the cons of CSR
- costs money, detracts from profits
- uses employees’ time and energy
- can distract customers from problems a company creates
ethics and ethical behaviour
rules guiding right vs. wrong, encouraging good behaviour and acting according to personal and social standards of right and good
values
guide decisions on right vs. wrong (ie/ trust, responsibility, respect)
morals
rules defining good vs. bad (ie/ stealing is wrong)
ethical dilemma
a tough choice between right and wrong
whistleblower
- someone who tells their boss about the wrong actions committed by their coworkers, such as stealing money from the company
- reporting illegal or unethical business actions
what is the difference between a domestic and international transaction?
- a domestic transaction is the selling of items produced in the same country
- an international transaction is the selling of items produced in other countries
what is globalization
- the increasing interconnectedness and interdependence of nations through the floor of goods, services, capital, information, people, and ideas
- when a company works worldwide, for example having a headquarters in Ireland, manufacturing plants in Singapore, an IT department in Canada, etc.
what is a trade barrier and the types
a trade barrier involves protectionism, the theory of shielding domestic industries from foreign competition
- tarrifs
- trade embargoes
- trade sanctions
- trade quotas
tarrifs
the most common trade barriers, are taxes or duties put on imported products or services; they raise the cost of imports, so that locally manufactured products are less expensive and more appealing to consumers
