Grade 10 Business - Exam Prep

THE ROLE AND IMPACT OF BUSINESS

Competition

Direct Competition: Businesses offering the same product/service to the same target market

Example: McDonald's vs Burger King

Indirect Competition: Different products/services satisfying the same consumer need

Example: Netflix vs movie theaters (both provide entertainment)

Needs vs Wants

Needs: Essential for survival (food, shelter, clothing)

Wants: Desired but not essential (luxury cars, designer clothes)

Maslow's Hierarchy of Needs (Pyramid)

Physiological (bottom): Food, water, sleep

Safety: Security, employment, health

Love/Belonging: Friendship, family, intimacy

Esteem: Self-respect, recognition, achievement

Self-Actualization (top): Creativity, problem-solving, reaching potential

Trend vs Fad

Trend: Long-term change in consumer behavior (online shopping)

Fad: Short-term popular craze (fidget spinners)

Goods vs Services

Goods: Tangible products you can touch (cars, phones)

Services: Intangible activities performed for others (haircuts, banking)

Product Life Cycle (PLC)

Introduction: New product, low sales, high costs

Growth: Sales increase rapidly, profits rise

Maturity: Sales peak, competition increases

Decline: Sales fall, profits decrease

Business Ownership Types

Sole Proprietorship

One owner

Unlimited liability

Easy to start

Owner keeps all profits

Partnership

2+ owners sharing profits/losses

Unlimited liability (general partners)

Shared decision-making

Corporation

Private: Shares not publicly traded, limited shareholders

Public: Shares traded on stock exchange, unlimited shareholders

Limited liability for shareholders

Separate legal entity

Cooperative

Owned and operated by members

Democratic control (one member, one vote)

Profits shared among members

Franchise

Franchisor: Company granting franchise rights

Franchisee: Individual buying franchise rights

Proven business model, ongoing support

Liability

Unlimited Liability: Personal assets at risk for business debts

Limited Liability: Personal assets protected, only investment at risk

Business Ethics & Responsibility

Ethics: Moral principles guiding business decisions

Social Responsibility: Business obligation to benefit society

Globalization: Worldwide integration of markets and businesses

Marcus's 3 P's (The Profit)

People: Right team, leadership, employee engagement

Process: Efficient operations, systems, workflows

Product: Quality offering that meets customer needs

ENTREPRENEURSHIP

What is an Entrepreneur?

Person who starts and operates a business venture

Takes financial risks for profit