Questions and Answers
What is a business?
An organization that provides goods and services to others who want or need them.
What is a need?
Goods or services that are required for survival.
What is a want?
Goods or services that are desired but not necessary for survival.
How do needs evolve?
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What are some parallels between needs and wants?
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What is a producer?
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What is a manufacturer?
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What is a supplier?
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What is a consumer?
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What is a customer?
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What is a fad?
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What is a trend?
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What are the three different types of interdependence?
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What is Maslow's Hierarchy of Needs?
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What are the 5 levels of needs?
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What are physiological needs?
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What are safety needs?
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What are belongingness and love needs?
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What are esteem needs?
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What are self-actualization needs?
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What are the basics to understanding Maslow's theory?
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Why is understanding this theory essential to running an effective business?
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What is demand?
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What is the law of demand?
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What are 8 conditions that create demand?
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What is supply?
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What is the law of supply?
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What are 5 factors that affect supply?
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Study Notes
Definition of Business
- A business is an organization that provides goods and services to meet the needs and wants of others.
Needs vs Wants
- Needs: Essential goods or services required for survival, including food, water, clothing, shelter, and healthcare.
- Wants: Goods or services that are desired but not essential for survival.
Evolution of Needs
- Goods can evolve into needs as society changes, becoming essential for acquiring necessary resources.
Parallels Between Needs and Wants
- Junk food may be a want for those who can afford healthy options but can be considered a need for those with limited resources.
Key Business Entities
- Producer: An entity that creates products.
- Manufacturer: A company that specifically produces goods.
- Supplier: Provides customers with goods.
- Consumer: The individual who uses the goods.
- Customer: The buyer or acquirer of the goods.
Fads and Trends
- Fad: A craze quickly adopted and abandoned by the public.
- Trend: A long-term direction that society moves toward.
Interdependence in Business
- Businesses rely on customers, customers depend on businesses, and businesses depend on one another.
Maslow's Hierarchy of Needs
- A psychological theory categorizing human needs into five levels, arranged in a hierarchy.
Levels of Needs
- Physiological Needs: Basic survival needs like food and water.
- Safety Needs: Security and safety requirements.
- Belongingness and Love Needs: Relationships with family, friends, and intimate partners.
- Esteem Needs: Confidence, prestige, and accomplishments.
- Self-Actualization Needs: Realizing personal potential, including creative activities.
Understanding Maslow's Theory
- Involves five levels arranged in hierarchy; satisfaction of lower levels must occur before progressing to higher levels.
Importance of Maslow's Theory in Business
- Understanding this theory aids in marketing strategies and effectively appealing to customer needs and desires.
Demand
- Defined as the quantity of a good or service that consumers are willing and able to buy at a specific price.
Law of Demand
- When prices increase, demand decreases. Conversely, when prices decrease, demand increases.
Conditions Creating Demand
- Factors include awareness through advertising, adequate supply, prices of complements and substitutes, accessibility, changes in consumer income and tastes, expectations about future conditions, and population changes.
Supply
- The quantity of a good or service that a business is willing and able to provide at various price levels.
Law of Supply
- Higher prices generally lead to an increase in supply as businesses aim to maximize profits.
Factors Affecting Supply
- Changes in the number of producers, advancements in technology, expectations for future conditions, and costs of production can significantly influence supply levels.
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Description
This quiz covers key concepts in Business Unit 1 for Grade 10. It provides definitions for essential terms such as 'business', 'need', and 'want'. Test your knowledge and understanding of these foundational concepts in business.