Factors Affecting Demand in Economics

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What do entrepreneurs need to focus on to avoid losses in their business?

Ignoring the estimated capital

Making adjustments based on estimated capital (correct)

Relying solely on the product's uniqueness

Expanding the business too quickly

What is essential to win over other markets according to the text?

Ignoring the competition

Offering lower prices than competitors

A combination of strength and confidence (correct)

Mimicking the products of competitors

What aspect can easily attract customers to gain more profits?

Uniqueness of the products (correct)

Lowering the production costs

Increasing the number of competitors

Decreasing product quality

What are the three processes mentioned in creating a new venture?

Entrepreneurial mind frame, Entrepreneurial heart flame, and Entrepreneurial gut game Signup and view all the answers

What is the Unique Selling Proposition (USP) used for?

Summarizing why a consumer should buy a company's product or use its service Signup and view all the answers

Why is Value Proposition (VP) important for entrepreneurs?

To convince a customer to purchase a particular product or service by adding value to their lives Signup and view all the answers

What type of partnership aims to protect innocent partners from the malpractice and wrongdoings of other partners?

Limited Liability Partnership (LLP) Signup and view all the answers

In a stock corporation, what percentage of the authorized capital must be paid as incorporation?

25% Signup and view all the answers

Which type of partnership has unlimited liability for its partners?

General Partnership (GP) Signup and view all the answers

What is the maximum number of persons allowed to own issued stocks in a close corporation?

20 Signup and view all the answers

What is a business arrangement where two or more parties agree to pool their resources for a specific task called?

Joint Venture (JV) Signup and view all the answers

Which type of corporation is organized to carry out purposes other than generating profits or investors?

Non-stock or Non-profit Corporation Signup and view all the answers

Which of the following is considered a substitute good?

A good that can be used in place of another good Signup and view all the answers

What is the relationship between complementary goods and demand?

A change in the availability of complementary goods will affect the demand for the original good Signup and view all the answers

How does consumer information affect demand?

New information available to consumers can result in a change in the quantity demanded of a good, even if the price does not change Signup and view all the answers

How do consumer expectations of future prices affect demand?

If consumers expect prices to increase, they will buy the good before the price increase Signup and view all the answers

What is the relationship between the number of consumers in the market and demand?

An increase in the number of consumers will increase the demand for the good Signup and view all the answers

What is the relationship between supply and the Law of Supply?

Supply refers to the quantity of a good or service that producers are willing to sell at different prices, while the Law of Supply describes the relationship between price and quantity supplied Signup and view all the answers

What is the primary purpose of SWOT Analysis for entrepreneurs?

To identify the strengths, weaknesses, opportunities, and threats related to a potential business idea Signup and view all the answers

Which of the following is an example of an internal weakness for a business?

Lack of experienced personnel Signup and view all the answers

What is the first criterion to examine when evaluating the feasibility of a business idea?

Customer Signup and view all the answers

What does the 'T' in SWOT Analysis stand for?

Threats Signup and view all the answers

Which of the following is an example of an external opportunity for a business?

A new government regulation that benefits the industry Signup and view all the answers

Why is timing an important consideration when evaluating a business idea?

To account for changing customer preferences and trends Signup and view all the answers

What is the primary purpose of a Unique Selling Proposition (USP)?

To explain why customers should buy a particular product or service Signup and view all the answers

What is the relationship between Value Proposition and Unique Selling Proposition?

They are two separate but related frameworks used in business Signup and view all the answers

What is the primary focus when understanding the target market?

Identifying the buyers with common needs and characteristics Signup and view all the answers

Which of the following is NOT mentioned as a commonly used method for segmenting markets?

Pricing segmentation Signup and view all the answers

What is the purpose of target marketing, according to the text?

To focus marketing efforts and resources on a specific market segment Signup and view all the answers

What should be the primary consideration when choosing a product for a target market?

The product should be affordable, efficient, and effective in reaching potential clients Signup and view all the answers