BBI 201 Exam

Two popular brands contributing to one product.

What is co-branding?

More than one company's brand, e.g. Microsoft and General Electric.

What is joint venture co-branding? Give an example.

Products under the same company paired together, e.g. Starbucks + Spotify.

What is same company co-branding? Give an example.

Certain parts contained in branded products, e.g. Dell computer + Intel processor chip.

What is ingredient branding? Give an example.

Create new products, lessen individual expenses, enhance current products.

Name 3 reasons to co-brand.

Shared reputation, less individual profit, disputes.

Name 3 reasons why companies may not want to co-brand.

Quantity the market is willing to buy.

Define 'demand'.

When the price increases, consumer demand decreases.

What is the 'Law of Demand'?

Quantity that sellers are willing to sell.

Define 'supply'.

Price increases, quantity increases.

What is the 'Law of Supply'?

When the demand line and supply line meet.

What is the 'Equilibrium Point'?

Achieving goals and objectives set by the business.

What is Business Success?

Profit = Sales - Costs - Expenses.

How is profit calculated?

Cost that changes depending on the quantity produced. Examples: electricity, wages, food items.

Define and give two examples of variable costs.

Cost that does not change depending on the quantity produced. Examples: rent on a factory, salary.

Define and give two examples of fixed costs.

Profit = Sales - Costs - Expenses. Profit = $425 - $200 - $90 = $135.

Did the company in the given scenario have a profit or loss? How much? (Show your work)

Profit = Sales - Costs - Expenses. Profit = $70,000 - $18,500 - $26,300 - $12,250 = $12,950.

Did the company in the given scenario have a profit or loss? How much? (Show your work)

Profit, social responsibility, employee satisfaction, personal satisfaction.

What are the 4 ways to measure a company's success?

A good or service necessary for survival. Examples: Shelter, Clothes.

What is a need? Give 2 examples.

Something not necessary for survival, used for pleasure. Examples: Second phone, Another car.

What is a want? Give 2 examples.

Beliefs about what is important in life. Examples: Education, Honesty.

What are values? Give 2 examples.

Something worked towards achieving.

What is a goal?

Income and Price, Status, Current Trends, Customs and Habits, Safety, Promotion.

What are the 6 main factors in determining what consumers buy?

Can the consumer afford it? Is it a reasonable price?

What is Income and Price?

Trying to get the best thing of anything.

What is Status?

Popularity + peer pressure to get influential things.

What is Current Trends?

Things that are done out of expectation (custom) and things you do routinely (habits).

What are Customs and Habits?

Higher standards based on quality and safety of product.

What is Safety?

Designed to influence consumer spending and create a desire for products or services.

What is Promotion?

a. Manufacturing - makes a product to sell
b. Retail - buys goods and resells them
c. Service - provides a service (something that is intangible - it is done for you but that you cannot touch)

What are the 3 types of businesses?

Business owned by one person
i. One advantage - all profits go to them
ii. One disadvantage - deal with losses alone

What is a sole proprietorship?

A business owned by two or more people
i. One advantage (general partnership) - Ownership and contributions are all equal unless discussed otherwise
ii. One disadvantage (general partnership) - Liabilities are all equal unless discussed otherwise

What is a partnership?

A type of business whose ownership is divided into many parts (shares/stocks), if you buy a share, you become an owner of the business
i. What is a private corporation?
Only a few people can buy shares
Four Seasons Hotels
ii. What is a public corporation?
Stocks are made available by selling shares on the stock exchange
Bell Canada
iii. What is a Crown corporation?
Owned by the government
Canada Post
iv. What is a municipal corporation?
Owned by towns and cities to provide services to their citizens
Durham Transit
v. One advantage - Easier access to capital
vi. One disadvantage - Double taxation

What is a corporation?

A type of business that is owned by the people who buy the products or services, and is run by a board of directors, where each member has one vote, and profits are distributed based on how much a member spends
i. One advantage - Equal voting rights
ii. One disadvantage - Equal voting rights regardless of investment

What is a co-operative?

A type of business where a person buys the right to use the name and sell the products or services of an existing business

What is a franchise?

Someone who buys/acquires certain factors from another business in the form of a license

Who is a franchisee?

Someone who lends their information for a franchisee to sell things under their name

What is a franchisor?

Multiple locations can open up under the name of your business

One advantage of franchising?

Reputation can be at risk

One disadvantage of franchising?

Borrowing money to run your business

What is debt financing?

Using money from your savings or investors (people willing to invest in exchange for a share of the profits, rather than having the loan repaid)

What is equity financing?

a. Natural Resources - raw materials used in production, b. Human Resources - human effort expended in production, c. Capital Resources - man-made physical resources used in production

List and explain the 3 types of resources in an economic system

the way government and businesses work together to provide goods and services to consumers

What is an economic system?

A system in which the government owns almost all resources and businesses

What is a pure command economy?

A system in which the actions of buyers and sellers direct the economic system

What is a pure market economy?

A system which is a combination of elements from pure command and pure market

What is a mixed economy?

different levels of government provide services to citizens; purpose is generally not to make a profit

What is the public sector? Give one example.

Businesses are individually owned and operated; their primary purpose is to make money

What is the private sector? Give one example.

PUBLIC-PRIVATE PARTNERSHIP, Involves the government and private businesses working together and pooling their resources

What is a P3?

This occurs when publicly owned businesses (i.e. Those owned by the government) are sold to the private sector

What is privatisation?

Refers to how money is made within the community; as money keeps changing hands, it affects a business or consumer in some way (you earn money or spend money)

Explain the following: a. Generation of wealth

Consumer demand, business cycles, technology, competition

What influences the job market?

Money received or expected to be received

What is income?

Sales, interest, investments

What are the sources of income?

Taxes

How do businesses generate income for the government?

Expansion, peak, recession, trough

What are the four stages of the business cycle?

Demand, production, job opportunities increase

What happens during the expansion/recovery stage of the business cycle?

Prosperity, investment, price increase

What happens during the peak stage of the business cycle?

Overproduction, layoffs, spending decline

What happens during the recession stage of the business cycle?

Low economic activity, high unemployment, low sales/profits

What happens during the trough stage of the business cycle?

A roller coaster

What shape does the business cycle resemble?

The quality and kinds of goods/services a person can afford

What is a standard of living?

Overall well-being and happiness

What is quality of life?

Workplaces that provide opportunities for employees.

What are high quality work environments?

Minimum wages, Benefit plans, Workplace safety standards

Name 3 things we have because of the labour movement.

Mandatory for business to provide health and safety programs for all employees, given to them by their higher ups. Can be shown through the TRIP acronym. Training: emergencies, hazardous materials, machines, job specific training, WHMIS (workplace hazardous materials information system). Reaction: report injuries to supervisor, attend to injury immediately, report to WSIB (workplace safety and insurance board). Inspection: companies do regular inspections to ensure health and safety regulations are being followed. Prevention: the Ontario Occupational Health and Safety Act specifies regulations companies must follow to ensure employee safety.

Explain how businesses and/or the community are impacted by safety in the Workplace.

Employers recognize healthy employees are more productive. Employee stress has become a major concern for employers. Longer hours, increased workloads, people are stressed. They find it difficult to balance work and home responsibilities. Loss of productivity. Pay extra worker to come in. Loss of work time. Many companies are providing the following to lower stress: redistributing workloads, more frequent breaks, on-site daycare, exercise programs.

Explain how businesses and/or the community are impacted by healthy workplaces.

Protection of the environment has become a high social priority. How can a business harm the environment? Water pollution & contamination, Land / Soil pollution & contamination, Air Pollution, Waste of natural resources. Manufacturers are the largest contributors to environmental pollution. A business that takes action to reduce or eliminate operations that pollute in the environment are considered a SOCIALLY RESPONSIBLE business. The government passes laws to ensure companies take actions to protect the environment. If they're broken, heavy fines can be faced.

Explain how businesses and/or the community are impacted by environmental concerns.

recycling, filters, tech, donations

How do businesses help the environment?

residential, business, nature, others

How can a community choose to use their land?

govt. claiming private property for community welfare

What is expropriation?

rush hours, delays, pollution

What are the transportation problems faced by communities?

increased prices, pressure on retailers to pass costs to consumers

What are the effects of increasing energy costs?

desire for control, vision, etc.

What are the personal factors affecting business success?

Strong tie to business to grow it

What is passion in business?

Willingness to persist and overcome obstacles

What is perseverance in business?

Ability to work with others and get them to work together

What is teamwork in business?

Rarely profitable or competitive

What is a marginal business?

Agreement between companies to sell at fixed price, illegal in Canada

What is price fixing and is it illegal?

Number of able-to-work people working or looking for work

What is the labour force?

Percentage of able-to-work people without jobs

What is the unemployment rate?

General increase in prices and fall in purchasing value of money

What is inflation?

Forces them to cut back on necessities

How does inflation hurt low income families?

Increases costs of goods and services needed to run the business

How does inflation hurt businesses?

To pay for education, healthcare, police, transportation, legal system

Why does the government collect taxes?

the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth

What is competition in business terms?

the portion of a market controlled by one company

What is market share?

One pie represents the market and the different pieces represent each brand in competition, the market share is based on how big a piece you have.

Explain market share using a pie analogy.

between 2 similar products, 2 brands of shampoo (dove and pantene)

What is direct competition? Give one example.

Between 2 unrelated products, Dinner or a movie

What is indirect competition? Give one example.

Quality and dependability - improve the quality to attract more customers, Price - charge less for a similar product, Design - every product has a design element (clothing, cars, packaging, etc.), Features - materials, scent, size, flavour, etc., Benefits to consumer - can the product do more or perform better than another product

Name 5 ways that products compete.

Convenience - speed, location, guarantees (delivery times), Level of service - extra service available or fewer services offered for a lower cost, Selection, WIDE - a large number of different brands or types of merchandise, DEEP - a lot of different sizes, colours or one specific product, Reputation - good reviews, word-of-mouth, Price - the deciding factor when the other elements are the same

Name 5 ways that services compete.

Some services sell products (ex. hair salons sell hair products). Stores that sell products offer "value-added service" or something extra (ex. home delivery, free parking)

What is the product/service mix?

Why other companies are doing so well

What is the competitive market?

The type of consumer that might buy their product

What is the consumer market?

Income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.

What is disposable income?

Everything associated with a product should carry the name, slogan and/or logo (incl. packaging, company letter, websites, promotions, etc.). It should always be consistent (same style of writing, same colours, etc.).

What is the importance of consistency in branding?

A slogan can be used with a short, catchy tune to help consumers remember.

What is a jingle?

When the image from one product is transferred to other products made by the same company.

What is brand extension?

Product, Price, Promotion, Place.

What are the 4 P's of marketing?