Business Chapter 12 & 14

Front 1

Money allows businesses to ___________ and consumers to ______________________________________

Back 1

operate

buy products andservices that meet their needs and wants.

Front 2

Coins and paper money are classified as____________________________and must be accepted as_____________________________

Back 2

legal tender by the government of Canada

payment for goods and services.

Front 3

coins are ____________ and bank notes are issued as ______________

Back 3

minted

paper money

Front 4

Ever changing state-of-the-art security features on Canadian banknotes discourage

Back 4

high-tech counterfeiting

Front 5

counterfeiting

Back 5

The production of fake money

Front 6

features such as unique textures on every note help

Back 6

visually impaired people to make distinctions between denominations

Front 7

Coins and bank notes have no ____________The paper is __________ as are the ___________ to make coins. Both are only important to _________ because ____________________________

Back 7

true value

worthless

metals

consumers

they accept that currency or money has a standard value that allows them to purchase items or invest

Front 8

income

Back 8

money that an individual or business receives from sources,such as wages or sales, interest, and dividends

Front 9

Forms of income

Back 9

salary wages

commission

piecework

profit sharing

Front 10

Employee benefits

Back 10

Other sources of income can include dividends, allowance, interest, gifts, part time jobs, and inheritance.

medical insurance

paid sick days

paid holidays drug

dental plans

Front 11

Gross income

Back 11

The total amount of money received by a person before any deductions.

Front 12

Disposable income

Back 12

Or takehomepay, is the amount of income that is left after deductions of income tax, Canada Pension Plan (CPP), and Employment Insurance (EI).

Front 13

Discretionary Income

Back 13

the amount of money that is left over after all necessities have been paid. Necessities consist of rent or mortgage, food, transportation, insurance, electricity, and so on.

Front 14

Money management

Back 14

the daily financial activities aimed at satisfying a person’s needs and wants within a limited income. Individuals need to carefully plan, save, and spend their money to get the most out of it

Front 15

Why we buy

Back 15

income and price

status

current trends

Custom and habits

promotion

Front 16

Consumer driven

Back 16

that the economy offers consumers a never ending supply of exciting and innovative goods and services

Front 17

Comparison shopping

Back 17

Comparing price, quality, features, and services helps consumers make smart purchase

Front 18

Comparing price and quality

Back 18

Comparison shopping means selecting the least expensive product or service that best meets the consumer’s needs and wants

Front 19

Features

Back 19

The features of goods and services are often the most important requirements for consumers when they purchase these items.

Front 20

Services

Back 20

Services Retail stores often offer services that complement their merchandise. Some of these are free delivery for large purchases or these items

Front 21

Warranties are usually

Back 21

written promises that products comply to high standards.

Front 22

Prices and features of products or services can be compared using

Back 22

catalogues, newspapers, calling stores, or Internet searches

Front 23

Retailers often have clearance (endofseason) sales where

Back 23

seasonal goods are sold below the regular price to clear out old stock and to make room for new items.

Front 24

Promotional Sales happen when

Back 24

goods are sold below regular price to build acceptance for new products or to publicize store openings.

Front 25

These sales can create

Back 25

opportunities to sell future non products to consumers.

Front 26

Secondhand shopping

Back 26

purchasing of goods that have been previously owned by someone else.

Front 27

Buying second hand merchandise supports

Back 27

the three Rs of waste reduce, reuse, and recycle

Front 28

Impulse buying

Back 28

purchasing items on the spur of the moment without considering whether they are needed or wanted

Front 29

Ways to avoid impulse buying

Back 29

include taking your time, visiting many stores, checking the Internet, seeking out the best value, and, most importantly, not rushing.

Front 30

Budget

Back 30

plan for smart spending and savings based on one’s income and expenses.

Front 31

Personal budgeting can be kept

Back 31

daily, weekly, and even monthly.

Front 32

Many people avoid budgeting because they believe______________ even though __________

Back 32

it is too difficult, or it will limit their enjoyment of life

learning to budget can actually help them find money for the things they really want or need.

Front 33

Setting up a personal financial plan requires

Back 33

establishing realistic and achievable shortand longterm goals.

Front 34

Most people need to set aside specific

Back 34

minimum monthly amounts to achieve long financial goals

Front 35

Money management for businesses means

Back 35

they are accountable to the owners and/or shareholders. The primary goal is profit.

Front 36

Types of business income

Back 36

Three forms of business income are revenue , gross income , and net income

Front 37

Business success is determined by its

Back 37

ability to stay within a budget.

Front 38

The two types of business budgets are

Back 38

startup budgets and operating budgets

Front 39

Budgets often involve

Back 39

a variety of different departments, such as production, marketing, human resources, and finance.

Front 40

Saving

Back 40

Putting money aside for future use

Front 41

Investing

Back 41

Saving to earn extra income

Front 42

For most consumers its a good idea to

Back 42

Combine both savings and investing in their financial plan

Front 43

Saving plan ensure

Back 43

That a certain amount of money is put aside on a regular basis to reach a financial goal.

Front 44

Why people save

Back 44

Emergency needs, short and long term goals, security, future needs

Front 45

Plans offered by financial institutions can offer

Back 45

Interest, safety, and insure against loss.

Front 46

Deposit

Back 46

Sum placed in an account at a financial institution

Front 47

Interest is paid to

Back 47

the account holder for the use of the money. Interest is also paid by the person borrowing the money.

Front 48

Rate of return

Back 48

interest expressed as a percent original investment. It is also called yield

Front 49

Liquidity

Back 49

ability to convert an asset or investment into cash quickly and easily.

Front 50

Saving accounts are the safiest way to

Back 50

Save and earn some interest or return on your money

Front 51

Term deposits and guaranteed investment certificates (GICs) are

Back 51

savings plans in which a fixed sum of money is deposited over a specific length to time.

Front 52

Registered retirement savings plans (rrsp)

Back 52

to encourage people to save for retirement.

Front 53

Register education savibg plans

Back 53

long term savings plan to help finance a child’s education

Front 54

Retrictions of resp

Back 54

-income earned is tax free until the child attends an approved secondary school full time.

-The amount is limited to $42 000 (new legislation $50 000).

-The Canadian Education Savings Grant (CESG) is up to $400 per child per year.

Front 55

Diversify investments

Back 55

spreading their investments across several types.

Front 56

Canada savings bond (CSB)

Back 56

a loan made by an individual to the government of Canada

Front 57

Maturity date

Back 57

The government will repay the principal plus interest

Front 58

Businesses sometimes need money to increase

Back 58

production, expand operations, or introduce new products.

Front 59

Businesses sell securities corporate bonds and shares of stock

Back 59

raise the necessary funds

Front 60

Bond

Back 60

promise to repay borrowed money on a certain future date along with interest

Front 61

When a person buys stocks they become

Back 61

Shareholders

Front 62

Bull market

Back 62

the demand and price for most stocks is high.

Front 63

Bear market

Back 63

demand and price for most stocks is low

Front 64

Common stock represent

Back 64

general ownership in a corporation, carries voting privileges, and includes a right to share in its profits

Front 65

Common stock is always ________it can be bought or sold at any _______ on the _______

Back 65

liquid

any time

open market.

Front 66

Common stocks

Back 66

Do not have fixed divends

Front 67

Preferred stocks has

Back 67

Fixed rate dividends

Front 68

In preferred stocks shareholders have

Back 68

No priveleges and stock prices tend to be more stable

Front 69

Blue chip companies

Back 69

such as Weston and Imperial Oil are characterized by a long record of regular dividend payments, stable 8 growth, and active trading.

Front 70

Three main reasons why businesses invest

Back 70

1. Businesses can invest excess cash (usually at a low risk but highly liquid) until it is needed

2. Excess cash can be invested to generate income.

3. Business can invest strategically by purchasing another business.

Front 71

Mutuals funds

Back 71

are pools of money from many investors that are set up and managed by an investment company to buy and sell securities from other corporations.

Front 72

Real estate

Back 72

land and anything attached to it. Besides buying a home as a form of investment in real estate, some people buy income property.

Front 73

Collectibles

Back 73

items of personal interest to a collector. A collectible may increase in value over time due to the scarcity of the item or the demand in the market.

Front 74

Stockbrokers and investement dealers are

Back 74

licensed financial experts who advise buyers on which stocks to buy and sell and when to complete these transactions.

Front 75

Online investing

Back 75

the buying and selling of stocks on the Internet, is growing in popularity due to convenience and low associated costs.

Front 76

Bid price

Back 76

highest price anyone is currently willing to pay for a stock

Front 77

Ask price

Back 77

The lowest selling price that another investor is willing to accept for the stock.

Front 78

Bid price and ask price both

Back 78

Make up a stock quotation

Front 79

Operating budget

Back 79

Budget done monthly, yearly, or project basis that clearly sets put the on-going revenues and expenses

Front 80

Start-up budget

Back 80

Budget that shows the costs needed to open a business