1. Fashion B: Standard 08.0101-14 Business Ownership and Basic Economics
Created by: Kris Caldwell, Timpanogos High School
(There is a powerpoint created by “Fashion Marketing” for this standard as well)

2. Business Industry Segments:
Primary Market the industry segment that includes businesses that grow and produce the raw materials that become fashion apparel or accessories
Secondary Market the industry segment that includes businesses that transform raw materials into fashion in the merchandise production phase
Tertiary Market the industry segment that includes retail businesses such as stores

3. Types of Business Organization
Retailing the selling of products to customers
Sole Proprietorship a business owned and operated by one person
Partnership a business created through a legal agreement between two or more people who are jointly responsible for the success or failure of the business
Corporation a business that is chartered by a state and legally apart from the owner or owners

4. Fashion Risks
Risk the possibility that a loss can occur as the result of a business decision or activity
Risk Management a strategy to offset business risks
Types of Risks:
Economic Risks: Changes in overall business conditions
Human Risks: Caused by human mistakes, including customers, employees, or the work environment
Natural Risks: Caused by natural things, like weather.

5. Global Economy
Globalization the increasing integration of the world economy
Imports goods that come into a country from foreign sources or goods that a country buys from other countries
Exports goods that a country sends to a foreign source or goods that a country sells to other countries
Balance of trade the relationship between a country’s imports and exports

6. Supply and Demand
The law of supply and demand affects pricing in the fashion industry
Supply: the quantity of product offered for sale at all possible prices
Demand: the consumer’s willingness and ability to buy and/or use products
Profit: the money a business makes after all costs and expenses are paid
Trade Quotas: restrictions on the quantity of a particular good or service that a country is allowed to sell or trade