Term
| What are the 3 main segments in the fashion industry? |
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Definition
| Primary market, secondary market, tertiary market. |
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Term
| What segment of the fashion industry grows and produces the raw materials to make clothing? |
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Definition
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Term
| What segment of the fashion industry makes clothes? |
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Definition
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Term
| What segment of the fashion industry includes retail business such as stores? |
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Definition
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Term
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Definition
| Any material that can be made into fabric. |
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Term
| What segment of the fashion industry do clothing manufacturers, wholesalers and product development teams belong to? |
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Definition
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Term
| What is a sole proprietorship? |
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Definition
| A business owned by one person. |
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Term
| Which business type allows the one owner to decide everything themselves? |
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Definition
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Term
| What is a risk of being a sole proprietor? |
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Definition
| You own the company and are solely responsible to all bills. |
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Term
| How is the business profit of a sole proprietorship taxed? |
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Definition
| As the owners personal income. |
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Term
| What business type is created by an agreement between 2 or more people? |
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Definition
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Term
| How is a partnership taxed? |
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Definition
| As the personal income of it's partners. |
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Term
| What type of business is legally chartered and acts as a seperate entity? |
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Definition
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Term
| Which business type can sell shares to stockholders? |
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Definition
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Term
| Who handles the policy decisions and management of a corporation? |
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Definition
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Term
| Who pays the taxes for a corporation? |
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Definition
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Term
| What is meant by the term "risk?" |
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Definition
| The possiblility that something will go wrong and cause a loss of sales or profit to a company. |
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Term
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Definition
| A plan to avoid risks and deal with them effectively if they occur. |
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Term
| What are the three sources of risk? |
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Definition
| Economic, human and natural. |
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Term
| Risks that occur from changes in business conditions are what souce of risk? |
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Definition
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Term
| What are some examples of natural risks? |
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Definition
| Tornado, hurricane, snow storm. |
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Term
| What type of risk can be avoided by having a safe environment? |
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Definition
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Term
| When is a risk considered to be a pure risk? |
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Definition
| There is no possibility of gain. |
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Term
| When is a risk a speculative risk? |
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Definition
| When gains or losses are possible as a result of the risk. |
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Term
| What is an uncontrollable risk? |
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Definition
| A risk that can't be prevented, like bad weather. |
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Term
| What is a controllable risk? |
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Definition
| A risk that can be forseen and prevented or reduced, like theft. |
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Term
| Insurance can be purchaed for what types of risks? |
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Definition
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Term
| What is global competition? |
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Definition
| The concept that businesses all over the world can compete for the same customers' business. |
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Term
| Goods that come in to a country from other countries are called? |
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Definition
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Term
| Goods that a country sells to other countries are called? |
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Definition
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Term
| What is the balance of trade? |
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Definition
| The relationship between a countries exports and imports. |
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Term
| What is a negative balance of trade? |
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Definition
| More imports than exports. |
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Term
| How does a trade surplus happen? |
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Definition
| A country sells more goods than it buys. |
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Term
| What is the goal of a free trade agreement? |
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Definition
| Reducing tariffs and fees to increase business between countries. |
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Term
| What is one example of a free trade agreement? |
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Definition
| NAFTA- the North American Free Trade Agreement. |
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Term
| What is the World Trade Organization? |
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Definition
| The WTO prmotes and enforces trade laws. |
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Term
| What is supply and demand? |
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Definition
| Supply is the amount of product available and demand is the number of people who want to buy the product. |
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Term
| When there is a high supply of a product what happens to prices? |
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Definition
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Term
| When there is not enough of a product to meet the demand, there is a ? |
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Definition
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Term
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Definition
| A restriction on the amount of a product that can be brought into one country from another. |
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