Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
35 Cards in this Set
- Front
- Back
|
What is a business? |
An organized effort, to provide something that people need and want, and are willing to pay for. |
|
|
Why does a business exist? |
A business exists in order to satisfy those customer needs, and to also to make a profit with a definitons. (Use this as a def of business also) |
|
|
Name all five characteristics of a business |
-BUSINESSES ARE "ORGANISED EFFORTS" -BUSINESS PROVIDES THING THAT PEOPLE NEED AND WANT -A BUSINESS MUST TRY TO SATISFY CUSTUMER NEEDS -A BUSINESS GENERATES REVENUE FROM SALES -BUSINESSES TRY TO MAKE A PROFIT |
|
|
What does it mean by: BUSINESSES ARE "ORGANISED EFFORTS"? |
Business dont just happen. Businesses are created as the result of time, effort, and energy of the people who start them and run them. For example imagine if you have skills to tutor students in calculus. You might first begin by discussing the idea with your peers, then you put out the word of your availability by possibility creating a poster with your phonenumber and etc. And you would also take the bus or drive to the student. The point is you are consuming time and energy and effort. |
|
|
What does it mean by: "BUSINESS PROVIDES THING THAT PEOPLE NEED AND WANT"? |
A business must provide something that people want, it must satisfy a need. For example like above example, you assumed that people in your neighborhood wanted a high mark in calculus so you chose to tutor as your business. |
|
|
What does it mean by: "A BUSINESS MUST TRY TO SATISFY CUSTOMER NEEDS" |
A business cannot exist under there are people who need or want and are willing to pay for the things that business produce. As in customers. For example if there isn't enough high school student that want to improve their calculus grade, your efforts will go to waste. |
|
|
Define Customers |
The people who need or want, and are willing to pay for, the things that a business provides. |
|
|
|
The key issue with revenue is that a customor decides that the product is worth paying for, and the customer agrees and intends to pay, and evntually does. For example, when a barber cuts your hair they expect payment, when a restaurant serves you a meal, they expect payment. But all these things they provide also have expenses. |
|
|
What is Revenue? |
The money that flows into a business every time it sells a product or service to a customer |
|
|
What is Expenses? |
The money that a business spends, to provide customers with products |
|
|
What does it mean by: "BUSINESSES TRY TO MAKE A PROFIT" |
In our definition of business: A business exist inorder to make a profit. Profit is the positive benefit of a business. -Profit is essentially the motivation of starting a business. - When a business owner creates and runs a business the desire to realise some benefit is commonly referred to as the "profit motive" or the desire to make money For example you wanting to make money from tutoring because you maybe want to pay your tuition. Also not all businesses are succesful you could even have a loss. |
|
|
Define Profit: |
The positive benefit from running a business. -Revenue - Expenses = Profit |
|
|
Define The Profit Motive: |
The idea that people will give up their time, energy, and money only if there is some incentive for them to do so. If there is no pay-back for their self-sacrifice and risk, rational people will save their time and money. |
|
|
Define Loss: |
When the revenues that a business generates are not sufficient to cover all of the costs and expenses involved in running the business. |
|
|
Define "Not for profit organisation" and give an example |
An organisation that may provide products or services, and may collect revenues , but it is not intended for profit. Ex: Universities |
|
|
Give some examples of Not for profit organisations, and explain how they differ from businesses. |
-If you were to be doing your tutoring for free, then you would be satisfying a customers need you won't be running a business. -A church is an "organised effort" but it isn't for making profit, some may even charge for their services, because its core motivation isn't to make profit. -A university is also not a business, it may collect collect money and is an organised effort that provide services and giving people what they need and want like education its motive isn't to make profit, and if they do have a surplus of money they would use it for next year. -The difference is the profit of a business owner belongs to the business owner where he can spend it on whatever he wants. |
|
|
What do people need and want? |
-Understanding this and able to answer it, is the fundamental reason a business exist. We want products basically |
|
|
Define Product: |
Things that result from human or mechanical effort or as the result of a natural process. |
|
|
Are products always business made items? |
No. Products could be any want, like wanting your street to be clean, school, and etc |
|
|
Define Public Sector Organisation. Also give an example |
An organisation that is owned by the goverment. Examples: Canada post (Which provides postal services), The canadian broadcasting corporation (Which runs TV and Radio Network), and canadian heritage which runs many museums. |
|
|
Define "Goods", and give an example. |
Products which are tangible, that is they can held and touched. (Clock,radio,soap and shampoo, etc) |
|
|
Define "Services" and give an example |
Products which are intangible, we cannot see or touch a service, but we benefit from the experience of recieving the service. (Computer repair, house moving services, and etc) |
|
|
What do business provides with above definitions? |
Business provide good and services. |
|
|
What are provided by the goverment? Give an example: |
Goverment almost exclusively provides services. (Safe street, secure city, medical care, and etc) |
|
|
Which philosopher thought the profit motive was a bad thing? |
Karl Marx |
|
|
Why did Karl Marx thought the profit motive was a bad thing? |
-Marx's interest was the relationship between a business owners, and the people for worked for the business -Marx referred to the people that start and own a business as "capitalist", and people who work for a business as laborers -He said profit was a expression of the capitalist exploiting the laboreres (Ex a laborer makes $10 an hour making boots, but the boots sell for $40 worth per hour) |
|
|
What did Marx propose as the solution? |
The goverment should own all business activity so that no one citizen could become rich exploiting another. |
|
|
Define Marxism: |
The economic and political theories developed by Karl Marx. Marx argued that the owners of the means of productions are a class of people who grow wealthy by exploiting the labor of others |
|
|
What philosopher defended the profit motive? |
Adam Smith |
|
|
What did Adam Smith believe? |
That if humans are rational, then they will divert their time, energy and money into some enterprise only if there is some payback for their self sacrifice and risk. If there is no profit then a rational person would conserve their resources for personal use. Often referred to as liberalism |
|
|
Define Liberalism |
An economic and political theory that espouses that people should be left to pursue their own self-interest, without government interference liberalism assumes that people will make the choice to co-operate with others, because it is in their own interest to do so. |
|
|
How is starting a business in Canada like? |
They are quicker, cheaper, and easier to start a business in Canada than in virtually every country on Earth. |
|
|
Risk & Return: Why is running a business so difficult? |
-Understanding the purpose of a business and its desired outcome is the easy part but most business actually fail. Its because business owners take risk for their pursuit of profit as a reward. |
|
|
Why do businesses fail? Give an example. |
-Many businesses fail because it is a human endeavour, the owners and managers of a business must try and discover what people need and want. If you building a product like a car you must anticipate what people need and want for 3 years now. For example GM. The CEO at like 2009 Rick Wagoner, failed big time, but it wasn't because he was dumb, he had all the credential, a harward degree and so won. They failed because of the above reason and had a massive lost. |
|
|
What is a 6th key characteristic that you would add to a business? |
"Willing to undertake Risks" |
