Factors Affecting Demand in Economics
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Factors Affecting Demand in Economics

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Questions and Answers

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?

    <p>Entrepreneurial mind frame, Entrepreneurial heart flame, and Entrepreneurial gut game</p> Signup and view all the answers

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

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

    Why is Value Proposition (VP) important for entrepreneurs?

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

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

    <p>Limited Liability Partnership (LLP)</p> Signup and view all the answers

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

    <p>25%</p> Signup and view all the answers

    Which type of partnership has unlimited liability for its partners?

    <p>General Partnership (GP)</p> Signup and view all the answers

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

    <p>20</p> 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?

    <p>Joint Venture (JV)</p> Signup and view all the answers

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

    <p>Non-stock or Non-profit Corporation</p> Signup and view all the answers

    Which of the following is considered a substitute good?

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

    What is the relationship between complementary goods and demand?

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

    How does consumer information affect demand?

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

    How do consumer expectations of future prices affect demand?

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

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

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

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

    <p>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</p> Signup and view all the answers

    What is the primary purpose of SWOT Analysis for entrepreneurs?

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

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

    <p>Lack of experienced personnel</p> Signup and view all the answers

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

    <p>Customer</p> Signup and view all the answers

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

    <p>Threats</p> Signup and view all the answers

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

    <p>A new government regulation that benefits the industry</p> Signup and view all the answers

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

    <p>To account for changing customer preferences and trends</p> Signup and view all the answers

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

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

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

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

    What is the primary focus when understanding the target market?

    <p>Identifying the buyers with common needs and characteristics</p> Signup and view all the answers

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

    <p>Pricing segmentation</p> Signup and view all the answers

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

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

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

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

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