Management Chapter 1

Front 1

Business

Back 1

An organization that seeks to earn profits by providing goods and services.

Front 2

Profit

Back 2

What remains (if anything) after a business's expenses are subtracted from its sales revenues.

Front 3

Not-For-Profit

Organization

Back 3

An organization that provides goods and services to customers, but does not seek to make a profit while doing so.

Front 4

Economic System

Back 4

The way in which a nation allocates it resources among its citizens.

Front 5

Factors of Production

Back 5

The resources used to produce goods and services: labour, capital, entrepreneurs, and natural resources.

Front 6

Labour

Back 6

The mental and physical training and talents of people: sometimes called human resources.

Front 7

Capital

Back 7

The funds needed to operate an enterprise.

Front 8

Entrepreneur

Back 8

An individual who organizes and manages labour, capital, and natural resources to produce goods and services to earn a profit, but who also runs the risk of failure.

Front 9

Natural Resources

Back 9

Items used in the production of goods and services in the natural state, including land, water, mineral deposits, and trees.

Front 10

Information Resources

Back 10

Information such as market forecasts, economic data, and specialized knowledge of employees that is useful to a business and that helps it achieve its goals.

Front 11

Command Economy

Back 11

An economic system in which government controls all or most factors of production and makes all or most production decisions.

Front 12

Market Economy

Back 12

An economic system in which individuals control all or most factors of production and make all or most production decisions.

Front 13

Communism

Back 13

A type of command economy in which the government owns and operates all industries.

Front 14

Socialism

Back 14

A kind of command economy in which the government owns and operates the main industries, while individuals own and operate less crucial industries.

Front 15

Market

Back 15

An exchange process between buyers and sellers of a particular good and service.

Front 16

Input Market

Back 16

Firms buy resources that they need in the production of goods and services.

Front 17

Output Market

Back 17

Firms supply goods and services in response to demand on the part of consumers.

Front 18

Capitalism

Back 18

An Economic system in which markets decide what, when, and for whom to produce.

Front 19

Mixed Market Economy

Back 19

An economic system with elements of both a command economy and a market economy: in practice typical of most nations' economies.

Front 20

Privatization

Back 20

The transfer of activities from the government to the private sector.

Front 21

Nationalization

Back 21

The transfer of activities from private firms to the government.

Front 22

Canadian Radio-

Television and

Telecommunications

Commission (CRTC)

Back 22

Regulates and supervises all aspects of the Canadian broadcasting system.

Front 23

Competition Act

Back 23

Prohibits a variety of business practices that lessen competition.

Front 24

Tabacco Act

Back 24

Prohibits cigarette advertising on billboards and in retail stores and assigns financial penalties to violators.

Front 25

Weights and Measures Act

Back 25

Sets standards of accuracy for weighing and measuring devices.

Front 26

Consumer Packaging

and

Labelling Act

Back 26

States labelling requirements for products.

Front 27

Textile Labelling Act

Back 27

Regulates the labelling, sale, importation, and advertising of consumer textile articles.

Front 28

Food and Drug Act

Back 28

Prohibits the sale of food unfit for human consumption and regulates food advertising.

Front 29

Canada Consumer

Product Safety Act

Back 29

Regulates banned products and products that can be sold but must be labelled as hazardous.

Front 30

Canada Water Act

Back 30

Controls water quality in fresh and marine waters of Canada.

Front 31

Fisheries Act

Back 31

Regulates the discharge of harmful substances into water.

Front 32

Environmental

Contaminants Act

Back 32

Establishes regulations for airborne substances that are a danger to human heath or to the environment

Front 33

Revenue Taxes

Back 33

Taxes whose main purpose is to fund government services and programs.

Front 34

Progressive Revenue

Taxes

Back 34

Taxes leveled at a higher rate on higher-income taxpayers and at a lower rate on lower-income taxpayers

Front 35

Regressive Revenue

Taxes

Back 35

Taxes that cause poorer people to pay a higher percentage of their income than richer people pay.

Front 36

Restrictive Taxes

Back 36

Taxes leveled to control certain activities that legislators believe should be controlled.

Front 37

Lobbyist

Back 37

A person hired by a company or an industry to represent its interests with government officials.

Front 38

Trade Association

Back 38

An organization dedicated to promoting the interests and assisting the members of a particular industry.

Front 39

Market

Back 39

An exchange process between buyers and sellers of a particular good or service.

Front 40

Demand

Back 40

The willingness and ability of buyers to purchase a product of service.

Front 41

Supply

Back 41

The willingness and ability of producers to offer a good or service for sale.

Front 42

Law of Demand

Back 42

The principle that buyers will purchase (demand) more of a product as price drops.

Front 43

Law of Supply

Back 43

The principle that producers will offer (supply) more of a product as price rises.

Front 44

Demand and Supply

Schedule

Back 44

Assessment of the relationships between different levels of demand and supply at different price levels.

Front 45

Demand Curve

Back 45

Graph showing how many units of a product will be demanded (bought) at different prices.

Front 46

Supply Curve

Back 46

Graph showing how many units of a product will be supplied (offered for sale) at different prices.

Front 47

Market Price

(Equilibrium Price)

Back 47

Profit-maximizing price at which the quality of goods demanded and the quantity of goods supplied are equal.

Front 48

Surplus

Back 48

A situation in which quantity supplied exceeds quantity demanded.

Front 49

Shortage

Back 49

Situation in which quantity demanded exceeds quantity supplied.

Front 50

Private Enterprise

Back 50

An economic system characterized by private property rights, freedom of choice, profits, and competition.

Front 51

Competition

Back 51

The vying among businesses in a particular market or industry to best satisfy consumer demands and earn profits.

Front 52

Perfect Competition

Back 52

A market or industry characterized by a very large number of small firms producing an identical product so that none of the firms has any ability to influence price.

Front 53

Monopolistic

Competition

Back 53

A market of industry characterized by a large number of firms supplying products that are similar but distinctive enough from one another to give firms some ability to influence price.

Front 54

Oligopoly

Back 54

A market or industry characterized by a small number of very large firms that have the power to influence the price of their product and/or resources

Front 55

Monopoly

Back 55

A market or industry with only one producer, who can set the price of its product and/or resources.

Front 56

Natural Monopoly

Back 56

A market or industry in which having only one producer is most efficient because it can meet all the consumers' demand for the product.