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62 Cards in this Set
- Front
- Back
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how does government influence business within the canadian economy? |
customer, competitor, regulator, taxation agent, provider of incentive, essential services |
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how does a taxation agent influence canadian businesses |
imposing taxes reduces the amount and individual has to put back into the economy. |
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how does providing an incentive influence canadian businesses? |
by encouraging industries to invest in areas the government would like to see grow by offering tax reductions, loans or grants |
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how does essential services influence canadian businesses? |
these are services that are not suitable for the private sector ex) money printing |
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what is a market? |
it represents the relationship between the demand for a product and the supply of the same, both influence price |
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what is demand? |
desire to purchase a product in relation to its percieved value |
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what is supply? |
desire of a supplier of a product/service to provide these goods for sale purposes |
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what is law of demand? |
when prices drop consumers will buy more |
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what is law of supply? |
producers will generate more products as the price increases
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the benefits of private enterprise? |
private property, freedom of choice, competition and profits |
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what is a demand curve? |
graph showing how many units of products will be bought at different prices |
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what is a suppy curve? |
graph showing how may units of a product will be offered for sale at different prices |
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what is market price? (equilibrium price) |
profit maximizing price at which the quantity of goods demanded and quantity of good supplied are equal |
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name the degrees of competition? |
perfect, monopolistic, oligopoly, monopoly, natural monopoly |
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what is perfect competition? |
when no firm is large enough to influence the market place. |
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what is monopolistic competition? |
a number of similar firms that are distinctive enough to influence the market place to some extent |
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what is oligopoly competition? |
small number of large firms with the ability to influence prices |
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what is a monopoly competition? |
only one producer who sets the price as they see fit |
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what is natural monopoly competition? |
one company serving the needs of the public more efficiently and is allowed by government. ex) BC HYDRO |
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economic growth is based upon these |
business cycle, standard of living, gross domestic product, gross national product, per capita GDP, real (GDP), purchasing power parity |
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what is a business cycle |
the change experiences within an economy over a given period of time |
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what is standard of living? |
overall well-being of a country society and each individual discretionary income. |
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what is gross domestic product? |
value of goods and services produced in canada during a one year period |
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what is gross national product? |
value of all goods and services produces by a country |
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what is per capita gdp? |
the GDP divided by the population of the country |
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what is real (gdp) |
GDP adjusted for inflation |
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what is purchasing power parity? |
it reflects global purchasing power by adjusting for inflation and currency values. |
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what is productivity? |
the level of resources to produce a given product |
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what is balance of trade? |
exports minus imports |
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what is a budget deficit? |
the amount of money the government spends in excess to what it receives/earns |
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what is national debt? |
the amount of money canada owes it creditors |
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what is economic stability? |
the desire to balance the relationship between money supply, goods/services and labor |
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what is inflation |
increases of prices and the affect of buying power of the consumer |
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what is deflation? |
the reduction of prices due to lack of customers |
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what is an economic recession? |
when the economy is characterized by reduced spending by consumers and industry, increasing unemployment, failing income/production |
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what is an economic depression? |
severe long term downturn in the economy |
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what is frictional unemployment |
individuals out of work but high probability of finding one |
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what is seasonal unemployment? |
people our of work due to seasonal aspect ex) ski instructor |
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what is cyclical unemployment? |
job loss as a result of economic change in a industry ex. telecommunications |
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what is fiscal policies? |
represents how government collects and spends its money, ex) GST tax, designed to reduce national debt |
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what is monetary polices |
government manipulates the availability of money encouraging you to spend or not spend ex) intrest rates |
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what is a political-legal environment? |
firms must insure that countries they deal in have political environment that is contusive to their business and legal system |
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what is socio-cultural environment? |
when operating in other countries, businesses should respect and understand the countries values. |
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what are michael e porters 5 competitive forces? |
threat of new entrants, competitive rivalry, threat of substitute, power of buyers, power of suppliers |
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what is threat of new entrants? what is competitive rivalry? what is threat of substitute? what is power of buyers? what is power of suppliers? |
1) opening a pizza shop as oppose to automotive plant 2) coke vs. pepsi 3) products: margarine vs butter 4) what extent do customers dictate prices 5) if you require electricity to operate your business, there is likely one supplier |
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what are the emerging challenges and opportunities in the business environment? |
outsourcing, viral marketing, business process management |
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what is outsourcing |
areas handled by other firms that saves cost and lets company concentrate on its core business |
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what is viral marketing? |
people spread information about your product on the internet |
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what is business process management? |
companies identify what they need to do to inrease their effectiveness and allocate resources to achieve it |
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what are the redrawing corporate boundaries? |
acquisition, merger, strategic alliance, joint venture, friendly takeover, hostile takeover, poison pill. |
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what is acquisition? |
one business ''buying'' another |
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what is a merger? |
two or more companies join to become a new business |
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what is a horizontal merger? vertical merger? conglomerate merger? |
1) joining of two or more direct competitors into a new business. 2) companies that had a buyer supplier relationship 3) two companies that are in unrelated fields merging together |
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what is strategic alliance? |
two companies joining together to benefit eachother. ex) mcdonalds and coke |
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what is joint venture? |
two or more companies form a new company to work on a given project |
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what is a friendly takeover? hostile takeover? |
1) company welcomes the interest of another to acquire them 2) when management does not welcome the attempt of another to acquire them. |
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what is a poison pill? |
the use of any method/technique that would take away the interest of another company |
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what is a divestiture? |
selling part of your company to focus on what you do best |
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what is a spin-off? |
a company forming separate businesses into one new corporation on the belief it will increase their value. |
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parent/subsidiary companies? |
1 company owns all or parts of another company |
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institutional ownership? |
control of enormous resources of individuals thus becoming a significant player ex. mutual funds |
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employee stock ownership plans? (ESOP) |
EMPLOYEES OWN STOCK WITHIN THE CORPORATION IN WHICH THEY WORK. |
