Business Test Unit 1

Front 1

Non-profit

Back 1

A business that does not seek profit as its main purpose. Typically raises funds for causes

Front 2

Supply

Back 2

The higher the price, the higher the quantity supplied. Businesses want to make moeny when they see what's trending. E.G, when customers like donuts more than cupcakes, businesses with increase output for donuts and reduce output for cupcakes.

Front 3

Equilibrium

Back 3

State in which opposing forces or incluences are balanced. In ecnomics, this would be supply and demand.

Front 4

Excess Supply/Demand

Back 4

Supply: Economic surplus, where quantity of something is supplied is more than what is demanded, and price is above balanced level. Demand: Economic shortage, where demand for a product is higher than what's available.

Front 5

Needs

Back 5

We need for survival, e.g. food water and shelter. The most basic.

Front 6

Profit

Back 6

Produces / sells goods and services to satisfy needs / wants of customers to get profit

Front 7

Wants

Back 7

Luxury, enjoyable but not necessary, e.g. phones and swimming pools

Front 8

Demand

Back 8

If all other factors remain equal, the higher the price of a good, the less people will demand that good.

Front 9

Sole Proprietorship

Back 9

Simpliest form of business ownership, business has one owner. All profits go to owner, funds come frm owner, unlimited liability. It goes down, so do they.

Front 10

Co-operative

Back 10

Owned and operated by gorup of people with common interest. Members own control and make decisions. Share ideas but also financial responsibilities.

Front 11

Partnership

Back 11

Owned by 2 or more people, terms of agreement made. Limited liability, however, is an advantage.

Front 12

Corporation (Classification)

Back 12

Legal entity that exists independantly of owners, who are shareholders. Corporate personhood. No liability, different types- Non-Profit, Cown (government runs and owns), Privated (not pubically traded), and Public (stock market!)

Front 13

Franchise

Back 13

1 business (franchiser) licenses its name operating procedure, designs and business expetise to other businesses (franchise). Has limited liabilty, there can be many "branch offs", but limited oppurtunity to input own ideas and proceeds return to company.

Front 14

No Liabilty

Back 14

Investors are not obligated to put additional money into the company if it's needed.

Front 15

Limited Liabilty

Back 15

Both responsible for downfall, however if the company is sued, only invested money is lost. No personal savings.

Front 16

Unlimited liability

Back 16

It goes down, so do they.

Front 17

CSR

Back 17

Coporate Social Responisibilty

Front 18

What is CSR

Back 18

It is exhibited through a business's values, ethics, and contributions it makes to communities. CSR Is driven by a desire to protect customers and to treat employees and shareholders fairly.

Front 19

Values

Back 19

These tell us what is important, and help us make decisions about right and wrong.

Front 20

Consumer responsibility

Back 20

A consumer has different rights and responsibilities that are protected if anything goes wrong when conducting business wth a certain company, such as unfair treatment when buying clothes. Responsibilities include Research and compare products or services before you buy them, Check the qualifications of service providers, Read and follow product instructions, Get what you pay for.

Front 21

Code of ethics

Back 21

Code of ethics include obeying Canadian business laws and writing one, it is how companies communicate their ethical standards.

Front 22

Unethical behaviour

Back 22

an action that falls outside of what is considered morally right or proper for a person, a profession or an industry. Individuals can behave unethically, as can businesses, professionals and politicians.

Front 23

Principles of CSR

Back 23

providing safe, healthy work environments, adopting fair labour policies, protecting environemnt, being truthful in advertisement, avoiding price discrimination, and donating to charity.

Front 24

Laws that govern CSR

Back 24

Workplace safety (Occuptation Health and Safety Act, OHSA, of Ontario defines this), antidiscrimination issues, gender discrimination, and harassment.

Front 25

Ethics

Back 25

Ethics are rules that help us tell difference between right and wrong, extrenerally different.

Front 26

Stakeholder

Back 26

a party that has an interest in a company, and can either affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees and customers.

Front 27

Benefits to international business

Back 27

Proximity to natural resources, more efficient technology, oppurtunities for innovation, favourable tax structure.

Front 28

Exchange Rates

Back 28

The value of one country's dollar compared to another.

Front 29

5 P’s of International Business

Back 29

Price, Product, Proximity, Promotion, Placement.

Front 30

Challenges to International business

Back 30

There are hidden or social costs, human right and labour issues, environmental degradation

Front 31

International Trade

Back 31

Used when some countries cannot get products in their own country, so trade with others so they can both gain what each country specializes in.

Front 32

GATT

Back 32

General Agreement on Tariffs and Trade, siged 1947 by 23 nations. Replaced by WTO in 1995

Front 33

Domestic trade

Back 33

Trade within a country

Front 34

Barriers to Trade

Back 34

Tariffs, costs of exporting and importing, excise tax and currency fluctuations.

Front 35

Tariffs

Back 35

Form of tax on certain types of imports, some countries may raise tariffs to protect Domestic industry

Front 36

International Trade

Back 36

Trade internationally between nations

Front 37

WTO

Back 37

World Trade Organixation unified global trade, was permanent and decreased trade barriers

Front 38

NAFTA

Back 38

North American Free Trade Agreement betwenn Canada, America and Mexico.

Front 39

FTA

Back 39

Free Trade Agreement, countries have these between others.

Front 40

Role of the consumer

Back 40

They have purchasing power, e.g. voting with their feet is looking elsewhere for products or services. They're needed for a compnay to succeed.

Front 41

Price

Back 41

Countries trade with nations that provide a lower price. The cost of producing goods and services varies from country to country. Sometimes it may be more profitable for Canadian businesses to produce products overseas and then ship them here to sell to consumers. Lower foreign wages, taxes, and material costs make it cheaper to produce products abroad rather than domestically.

Front 42

Preference

Back 42

Countries trade with nations that they have traded with before. Some countries are known for certain products and consumers prefer them.

Front 43

Promotion

Back 43

New media such as the Internet, eBay, Facebook, Twitter have made access to international information a lot easier. Therefore, buyers and sellers in different countries can easily find each other. Technology, especially the Internet, makes it easy for businesses to promote their products and services internationally.

Front 44

Product

Back 44

Countries trade with nations that have products they don't have. A country’s natural resources determine what goods and services it produces. Due to our geographical location and seasonal climate, Canada imports crops (such as citrus all year and strawberries in the winter) from other countries. Canada exports products such as timber and grain that we have an abundance of.

Front 45

Proximity

Back 45

Countries trade with their closest neighbours first. The cost of producing goods and services varies from country to country. Sometimes it may be more profitable for Canadian businesses to produce products overseas and then ship them here to sell to consumers. Lower foreign wages, taxes, and material costs make it cheaper to produce products abroad rather than domestically.

Front 46

Excise Tax

Back 46

Paid when purchases are made on a specific good, such as gasoline

Front 47

Marketplace

Back 47

People gathering to sell their own products or services, such as Camden Market in London.

Front 48

Transnational

Back 48

Extending/ operating across national boundaries. This includes companies such as Audi.

Front 49

Global Product

Back 49

Sold internationally, but the same all around the world. E.G, Big Mac.