1. How many business factors (yếu tố) are there?

 There are four basic factors: land, labor, capital, and entrepreneurship (doanh nghiệp)
What do these factors mean?
 Land: refers a piece of real estate, sources of raw materials needed for production
 Labor (lđ): is the use of mental or physical work to produce goods
 Capital (vốn): means not only wealth (tài sản) but all things that workers use in production
and distribution (phân phối) which are purchased with money
 Entrepreneurship: is the activity of controlling (kiểm soát) and directing (chỉ đạo) the
other three factors
2. What are the advantages and disadvantages of an entrepreneur?
 Advantages:
 Keep all profits (for himself)
 Start/end his business
 Decide to do everything for his business
 Disadvantages: Who holds the bag if the business goes bankrupt (phá sản)?
 Owner of the business/entrepreneur
 Employees (nv) (have to seek work elsewhere)
 Customers (look for another place to buy their products)
 Creditors (chủ nợ): money lenders (lose money)
 Others (friends/relatives)
3. What are the advantages of sole proprietorship, and partnership?
Sole proprietorship
 Advantages:
- Start/set up or end his (current) business
- Decide to do everything for his business
- Keep all profits (not share with anyone)
- Follow very few government (chính phủ) and legal regulations (qui định pháp luật)
- Pay personal income taxes (pay no corporate income taxes)
Partnership (is the same with sole proprietorship)

4. What are the advantages and disadvantages of a corporation?

Corporation (is owned by many shareholders/stock owners)
 Advantages:
- Legal entity (Which is chartered by the state) (thực thể hợp pháp)
- Ownership divided into shares of stocks
- Buying & selling shares without permission from other owners
- Raising capital by selling shares of stock
- Liability of corporation limited to the value of the assets of the company
 Disadvantages:
- Follow legal procedures (thủ tục) (forming a corporation is not easy)
- Taxed twice (corporate income taxes / personal income taxes)
5. What are the 4 types of production?
- Analysis (phân tích): process of separating (tách) a raw material into several parts
(petroleum refining) (tinh chế dầu mỏ)
- Synthesis (tổng hợp): process of putting together 2 or more raw materials into one
finished product (glass (thủy tinh) is made by joining together lime (vôi), soda, potash
(kali) and other chemicals)
- Extraction (khai thác): process of removing (lấy) raw materials from the land, sea, air for
the purpose of production
- Fabrication (chế tạo): process of making products of more value from already
manufactured (đã sx) materials (automobiles)
6. What are the characteristics (đặc điểm) of the intermittent production methods?
- Short production runs (production of that item stops and production of another item
begins)
- Low volume (số lượng thấp) (Only a limited number, perhaps only one, of each
specification (chi tiết) are made)
- Custom-made products (goods are made to customer specifications (yêu cầu))
- Adjustable (có thể điều chỉnh) machines (machinery is adjusted for a specific job/ is
taken apart (tháo rời) or reset for a different job)
- Flexibility (tính linh hoạt) (many designs and styles are possible)
- Increased labor (increased labor is necessary)
- Expensive (one of the reasons that custom-made goods (sp làm theo yêu cầu) are popular
is that they are expensive)
7. What are the characteristics of the continuous production methods?
- Long production runs (This method makes one type of product for a long period of time)
- High volume (The volume must be large)
- Standard (chuẩn) goods (the products must be standardized (tiêu chuẩn hóa)/try to please
average taste)
- Specialized machinery (máy móc chuyên dụng) (the company buys specialized
machinery/ automatic (tự động) machines)
- Standardization (standardization is necessary in order to get the greatest benefit)
- Less labor (assembly line (dây chuyền lắp ráp) fixed the number of employees)
- Less cost per unit (production costs are low thanks to the use of the assembly line)
8. What is the concept of marketing in the past?
 Produce first, sell later
 Two aspects of marketing: sales promotion and distribution
 Sales promotion: advertising and personal selling
 Distribution: transportation/ storage (dự trữ)/ related services (dv liên quan): financing/
standardization/ grading (sự phân loại)/ related risks

9. Explain the concept of modern marketing.

Modern marketing: see if product will sell first, then produce it.
- Marketing decides what customer wants, designs and produces a product that satisfies
customer (hài lòng khách hàng)
- Desire (nhu cầu) of consumers becomes a factor on production decisions
- Production is an engineering problem (vđ kĩ thuật)
- Marketing involves considering human behaviour
10. What is concentrated market/ Saturated market and their solutions?
 Concentrated market (thị trường ứng đọng): situation in which there are very few
customers for the product
 Saturated market (thị trường bão hòa): a market situation in which all the customers
have made their purchases and there are no new customers to be found
 Their solutions:

11. Describe shopping goods/ convenience goods/ retail store/ channel of distribution.

Shopping goods/ or consumer product: requiring more consideration of price and quality

Convenience goods: products that are usually inexpensive/or have a low price and purchased at
the most convenient locations

Are widely distributed (available for sale at many places/locations such as:
vending machines/ convenience stores/ supermarket)

Retail outlet (cửa hàng bán lẻ)/ store: Full service retail store includes: staff service (available
to explain the features of products to customers)

Channels of distribution: trade channel: the route (con đường) or way (cách thức) that product
travels from manufacturer (nhà sx) to the consumer

12. Write down the difference between franchise store and chain store and the similar
thing/ the advantages both stores enjoy from parent company as well as the services (from
parent company)

The difference b/t a franchise and a chain store

- Franchise store: is independently owned/ under a franchise or license from a parent
company/ pays a fee or a certain percentage of the total sales to the parent company
- Chain store: is owned by parent company/ is vertically integrated (parent company
controls warehouses, trucking lines (transporting service)
Similar things:
- The same merchandise from the parent company
- The same name from the parent company
The parent company supplies:
- Promotion
- Distribution
- Products/ supplies
Both distributors can enjoy from the parent company:
- advertising
- distribution
- name recognition

13. What is a discount house?

=>Retail outlet where products/ goods can be reduced because there is less service and
display of goods
=> receiving discounts from wholesalers by purchasing in quantity
=> selling discontinued models (a product that has become either temporarily or permanently
unavailable for purchase)
=> dealing directly with producers without middlemen
=> lower overhead costs (costs of operation)

14. What includes in personal selling?

- Sales person: tries to convince customers to buy products

- When? Concentrated market for a product
- Industrial goods which are difficult to advertise / custom-made products
- Trade-in: an older or used product which is being exchanged for a newer model
-> Sales staff demonstrates products/ negotiates the price/ designates specifications of products

15. What should the producer do to increase sales of products?

=>Find new markets (by expanding its geographical sales area or try to sell its products to a
different segment of the popular)