Entrepreneurship Section 4

Front 1

What is the extractive industry?

Back 1

The extractive industry physically takes resources from the earth, such as metals, minerals, oil, and so on.

Front 2

What is the manufacturing industry?

Back 2

The manufacturing industry takes the raw extracted materials or other manufactured materials and transforms them into new tangible, physical products.

Front 3

What is the wholesaling industry?

Back 3

The wholesaling industry is the group of businesses that purchase a product from a manufacturer or another wholesaler and resell the product without transforming it.

Front 4

What is the retailing industry?

Back 4

The retailing industry is the group of businesses that sell products to end consumers. The consumers might be individuals or businesses.

Front 5

What is the service industry?

Back 5

The service industry is the group of businesses that provide services, instead of products.

Front 6

What is the subcontracting industry?

Back 6

The subcontracting industry is made up of people and businesses that sign a contract agreeing to do part or all of another person's or company's contract.

Front 7

What is the cottage industry?

Back 7

The cottage industry is the group of businesses that are home-based. This means the product or service is created or provided in a person's home.

Front 8

What are durable goods?

Back 8

Durable goods are products that last for a long time, such as a computer, shovel, watch, or couch.

Front 9

What are nondurable goods?

Back 9

Nondurable goods are products that are used up or worn out quickly, like food, pencils, or newspapers.

Front 10

What is the difference between durable and nondurable goods?

Back 10

The difference is products that last for a long time vs. products that are used up or worn out quickly, like pencils, newspaper, food, or amazon kindle's.

Front 11

What are the four main types of consumer goods?

Back 11

Convenience goods, shopping goods, specialty goods and unsought goods.

Front 12

what are convenience goods?

Back 12

Convenience goods are goods that consumers don't want to spend much time and effort on. They are widely available, easy to find, and not usually expensive to buy. They are usually nondurable goods that need to be frequently replaced.

Front 13

What are shopping goods?

Back 13

Shopping goods are products that consumers will spend more time deciding on. When choosing shopping goods, people compare things like quality, price, style, and other characteristics.

Front 14

What are impulse goods?

Back 14

mpulse goods are not necessities, and people do not always keep a supply of them available. They are things that people see in a store and decide to buy in the moment.

Front 15

What are staple goods?

Back 15

Staple goods are considered by consumers as necessary to everyday life. When people run out of staple goods, they buy more of them. Staple goods include things like milk, bread, and toilet paper.

Front 16

What are specialty goods?

Back 16

Specialty goods are items that the consumer considers special and luxurious. The consumer is willing to seek out this unique product and probably pay more for it.

Front 17

What are unsought goods?

Back 17

Unsought goods are things that people sometimes need but don't usually think about buying.

Front 18

What is direct distribution?

Back 18

Direct distribution is when a product is sold from the manufacturer to the end consumer, with no wholesale or retail companies in between.

Front 19

What is indirect distribution?

Back 19

Indirect distribution is when a product goes through other companies, such as wholesale and retail companies, before reaching the consumer.

Front 20

4. What is the difference between direct and indirect distribution?

Back 20

The difference is a product sold from a manufacturer to the end consumer, with no wholesale or retail companies in between, vs. a product going through other companies, such as wholesale and retail companies, before reaching the consumer.

Front 21

What is a distribution chain or distribution channel?

Back 21

The set of companies a product goes through on the way to the consumer is called the distribution channel, or the distribution chain.

Front 22

What is economic utility?

Back 22

Economic utility is the ability of a product or service to satisfy a consumer.

Front 23

What is form utility?

Back 23

Form utility is the value added to a product by changing the product's physical form to make it more satisfying to the consumer.

Front 24

What is place utility?

Back 24

Place utility is the value added to a product or service by making it available in a location where the consumer can easily find it.

Front 25

What is time utility?

Back 25

Time utility is the value added to a product or service by making it available when the consumer wants it.

Front 26

What is possession utility?

Back 26

Possession utility is the value added to a product by transferring ownership over to the consumer.

Front 27

What is information utility?

Back 27

Information utility is the value added to a product or service by providing the consumer with useful information.

Front 28

What are economies of scale?

Back 28

Economies of scale are ways that a company can lower the cost per unit by selling more units overall.

Front 29

What are three main ways to improve a company's economies of scale?

Back 29

Purchasing/Buying in bulk (Buying in bulk is buying materials in large quantities. This can help a company increase its economies of scale, because many products are less expensive per unit when you buy more of them at a time.), Labor, and Organization.

Front 30

What are diseconomies of scale?

Back 30

Diseconomies of scale are when costs per unit increase as a company sells more units.

Front 31

What is a market?

Back 31

Market is a system that allows people or companies to buy and sell products and services.

Front 32

What is market saturation?

Back 32

Market saturation is when the amount of a product in the market has reached the point where demand and sales are no longer increasing, and this is not likely to change unless the market changes in some way.

Front 33

What are the four stages of the product life cycle?

Back 33

Introduction, Growth, Maturity, and Saturation and decline.

Front 34

What does Lani's company do?

Back 34

Lani’s company, Simple Sugars, manufactures and sells handmade all natural body, facial, and foot scrubs.

Front 35

Where does Lani sell her products?

Back 35

Lain sells the majority of her products on a website, www.simplesugarscrub.com. She also has her products in a few spas and other specialty stores in her area. In addition, she also sells them at local markets and craft fairs during the holiday season.

Front 36

Who legally owns Lani's company, and why?

Back 36

Lani’s mom legally owns Lani’s company because Lani isn’t 18 years old ye and it all has to go under her mom’s name.

Front 37

What does Lani say are the two hardest things about being an entrepreneur?

Back 37

Lani says the two hardest things about being an entrepreneur are keeping up with the work and when people don’t take her seriously because of her age.