idea that most countries around the world depend on other for either wants or needs.
selling your product.
What is the most effective way of marketing?
What way of marketing is renewed and coming back?
Which 2 ways of marketing died out because of the internet?
magazines and newspaper.
4 "p's" of marketing:
What is "place" asking?
where am I going to advertise?
What is "product" asking?
what am I going to sell?
What is "price" asking?
how much my product costs?
What is "promotion" asking?
how am I going to advertise?
how I get my product to market, where I sell it.
What affects the consumer?
huge cost of distribution.
Why does this affect the consumer?
it makes the price of the product higher.
Which country was first a free market economy and later a republic?
Before 1917, Russia was __________.
free market economy.
1917, what happens to Russia that gets rid of free market economy?
Communist revolution. Lenin takes control of the government and of the economy.
After Lenin takes control, what type of economy does Russia become?
Until 1990, Russia will be controlled by the ____________.
1990, _______ seizes power and Russia becomes a _______.
Boris Yeltsin, republic.
1991, what happens to Russia's economy?
4 types of business organizations:
1. sole proprietor.
1 owner of a business.
Advantages to sole proprietor?
pride of ownership, set hours, get all profit.
Disadvantages to sole proprietor?
all of YOUR money, only YOUR skills, YOU make all decisions, advantages can become disadvantages.
Example of sole proprietor?
locally owned shop.
more than 1 owner.
Advantages to partnership?
more money, someone else's skills (or more skills), shared liability, someone to help with hours and decisions.
Disadvantages to partnership?
shared profit, must get along, how long the partnership lasts depends on the health of partner.
Example of partnership?
legal entity (person) and made to sell stock.
Advantages to corporation?
you have professionals running, no liability.
Disadvantages to corporation?
no pride of ownership, double taxation, decisions are much slower.
Example of corporation?
3 types of corporations:
owning everything at one level, illegal.
owning all phases of production.
corporations buys another corporation in a completely different industry.
Example of horizontal corporation?
John David Rockefeller owned 97% of refining capability.
Example of vertical corporation?
Andrew Carnegie owned US steel phases.
Example of conglomerate corporation?
RJ Reynolds tobacco company owning quaker oats.
CEO (chief executive officer)-
runs day-to-day business.
CFO (chief financial officer)-
Board of directors-
work with long term policy.
corporation pays tax and stock holder pays tax.
where you pay someone else to use their name and product.
Advantages to franchise?
home office pays for advertisements, no shopping for supplies, pride of ownership.
Disadvantages to franchise?
expensive, being watched by home office, must buy their product from home office, must abide by contract made with home office.
Example of franchise?
Mcdonalds. Also most successful.