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190 Cards in this Set
- Front
- Back
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Define: Business |
An organization that strives for a profit by providing goods and services desired by its customers |
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Define: Goods |
Tangible items manufactured bybusinesses, such as tablets. |
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Define: Services |
Intangible offerings that cant be touched or stored. (Such as hospitals, governments, lawyers, restaurants) |
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Standard of Living |
Measurement of outputs of products (private and public) that people can buy with the money they have. |
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Quality of Life |
General level of human happiness. |
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Risk |
The chance that an investments actual return will be different than expected. Potential for losing resources (i.e.time, money) or be unable to accomplish organizational goals. |
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Revenue |
The money a company earns from providing services or selling goods to a customer |
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Costs |
Expenses for rent, salaries, supplies,transportation and many other items that a business incurs from creating and selling goods and services |
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Profit |
The money left over after all expenses are paid |
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What is: A Not for Profit Organization? |
An organization that typically exists to achieve a social goal or goals as opposed to the usual business goal of profit |
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List: What does the federal government have authority over |
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List: the responsibilities of provincial and territorial governments |
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List: the responsibilities of municipal governments |
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List: the government's other roles |
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Patent |
Gives an inventor the exclusive right tomanufacture, use and sell an invention for 20 years. |
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What is the requirement to get a patent? |
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Trademark |
A design, name,or other distinctive mark that is used to identify products. Creates uniqueness in a product. |
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Copyright |
A form of protection established by the government for creators of art, music, literature or other intellectual property. Creator has exclusive use during lifetime, and 50 years thereafter. |
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Bankruptcy |
The legal act by which individuals or businesses that cannot meet their financial obligations are relieved of some, if not all, of their debt. |
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Deregulation |
Theremoval of rules and regulations governing business competition |
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Consumerism |
Reflectsthe struggle for power between buyers and sellers. Movement seeking to increaserights and power. |
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Product Liability |
The responsibility of manufacturers and sellers for defects in the products they make and sell. |
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Cartel |
An agreement between enterprises to lessen competition. |
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Monopoly |
A situation in which there is no competition and the benefits of the free market are lost |
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Income Tax |
Based on income of businesses and individuals |
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Property Tax |
Imposed on real and personal property, and based on an assessment |
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Payroll taxes |
Collected by the employer and remitted to the federal government (Deductions) |
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Sales Taxes |
Levied on goods and services when they are sold (percentage of the price) |
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Excise Taxes |
Taxes imposed on specific items like gasoline, alcohol and tobacco |
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List: The future of politics and government's roles |
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What is: Management of Information Systems |
A discipline that involves the management of people, process and technology around the care of information. |
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What does Management of Information Systems Typically Involve? |
Handling, classifying, arranging, managing and having the mastery to structure information through systems and technology. |
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List: Factors to Success |
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What is: SWOT Analysis |
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What is: PESTEL Analysis |
A situational analysis
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What are: Porter's Five Forces |
Forces that shape competition within an industry.
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Draw: Porter's Five Forces Model |
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Core competency |
A strength that a company has (can do very well) Ex: MSI makes great gaming laptops |
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Competitive Advantage |
Distinctive advantage that customers value Ex: Starbucks makes buying coffee an experience |
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Sustainable competitive advantage |
An advantage that a company can continue to exploit over time. |
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List: Potential Stakeholders in a business Critical ones first |
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Pro-forma financial statement |
A projected financial statements of future values. |
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Ratio analysis |
Help to answer many questions concerning the company's cash flows, liquidity, funding, return on investments, payback, net investment and net annual return |
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Cost/Benefit analysis |
Compare the costs and benefits of a particular decision |
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List: Corporate level strategy |
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What is: The Future of Analyzing Business |
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Economics |
The study of how society uses resources to produce and distribute goods and services. |
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Microeconomics |
Focuses on individual parts of the economy, such as households and businesses. |
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Macroeconomics |
Focuses on the economy as a whole by looking at aggregate data for large groups of people, companies or products. |
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List: The Factors of Production |
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What is: An Economic System |
The combination of policies, laws and to establish the systems that determine what goods and services are produced and how they are allocated. |
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Market Economics |
Based on competition in the marketplace and private ownership of the factors of production (resources) |
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Command Economy |
The government owns virtually all resources and controls all markets. |
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Socialism |
Owned by the government or by the private sector under strong government control. |
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Mixed Economics |
Use several economic systems |
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List: Types of Economic Systems |
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List: Market Structures |
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Describe the following in terms of: # of Firms, Competitiveness, Barrier to entry
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Economic Growth |
an increase in a nation’s output of goodsand services |
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Gross Domestic Product (GDP) |
thetotal market value of all final goods and services produced within a nation’sborder in a year |
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Gross National Product (GNP) |
Total market value of all final goods andservices produced by a country regardless of where the factors of productionare located |
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Draw: The business cycle |
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List: The Key Economic Indicators |
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Inflation |
The average of all prices and goods and services is rising |
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List: Types of Inflation |
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List: Types of Unemployment |
Business Cycle: BC
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Consumer Price Index (CPI) |
Index of prices of a basket of goods and services purchased by consumers. |
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Producer Price Index (PPI) |
An index of the prices paid by producers and wholesalers for various commodities, such as raw materials, partially finished goods and finished products. |
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Monetary Policy (Bank of Canada) |
The measures taken by the BoC to regulate the amount of money in circulation to influence the economy. |
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Contractionary Policy |
Use of monetary policy by the BoC to tighten the money supply by selling government securities or raising interest rates. |
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Expansionary Policy |
Use of monetary policy by the BoC to increase the growth of money supply. |
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Fiscal Policy |
Government's use of taxation and spending to affect the economy. |
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What is: The Future of Economics |
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How much of our trade is with the US? |
75% |
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Why do countries trade? |
No one can produce all the products that people want and need. Nations who cannot produce what they want and need will want to trade with countries that have a surplus. |
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Free Trade |
The movement of goods and services among nations without political or economic trade barriers. |
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Why do companies want to go global? |
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Exports |
Goods and services made in one country and sold to others |
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Imports |
Goods and services that are bought from other countries |
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Balance of Trade |
The difference between the value of a country'sexportsand the value of its importsduringa certain time |
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Trade Surplus |
A favourablebalance of trade that occurs when a country exports more than it imports |
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Trade Deficit |
An unfavourablebalance of trade that occurs when a country imports more than it exports |
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Balance of Payments |
The difference between money coming into thecountry and money leaving the country |
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Absolute Advantage |
A country can produce and sell products at a lower cost A country is the only provider of a product. |
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Comparative Advantage |
The concept that a country should specialize in the products that it can produce most readily and cheaply, and trade these for goods that foreign countries can produce most readily and cheaply. |
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Joint Venture |
Twoor more businesses combine for a specific project or business venture |
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Direct Foreign Investment |
Activeownership of a foreign company/manufacturing/marketing facility |
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Floating Exchange Rates |
A system in which prices of currencies move up and down based on the demand for and supply of the various currencies. |
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Devaluation |
A lowering of the value of a nation's currency relative to other currencies. |
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Protectionism |
The policy of protecting home industries from outside competition by establishing artificial barriers such as tariffs and quotas. |
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Dumping |
The practice of charging a lower price for a product in foreign markets than in the company's home market. |
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What is: The World Trade Organization (WTO) |
An organization established by the Uruguay Round in 1994 to oversee international trade, reduce trade barriers and resolve disputes among member nations. |
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World Bank |
An international bank that offers low-interest loans as well as advice and information to developing nations. |
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International Monetary Fund (IMF) |
An international organization, founded in 1945, that promotes trade, makes short term loans to member nations, and acts as a lender of last resort for troubled nations. |
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List: Some International Economic Communities |
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What are: The barriers to trade |
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Tariff |
A tax imposed on imported goods |
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Protective Tariffs |
Make imports less attractive to buyers than domestic products |
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Import quota |
Limit on the quantity of a certain good that can be imported |
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Embargo |
A complete ban on imports or exports of a product |
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Exchange controls |
Laws that require a company earning foreign exchange from its exports to sell the foreign exchange to a control agency. |
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Customs Regulations |
Regulations on products that are different from generally accepted national standards |
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Entrepreneur |
People with vision, drive and creativity who are willing to take the risk of starting and managing a new business to make a profit or to challenge the scope and direction of an existing company. |
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List: Types of Entrepreneurs |
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What is: A small business |
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List: Advantages to Small Business |
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List: Disadvantages to Small Business |
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List: 2 types of financing |
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List: 2 types of investors |
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List: Areas of entrepreneurial opportunity |
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List: 3 Basic forms of ownership |
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Sole Proprietorship: Advantages/Disadvantages |
Advantages Ease of start, be your own boss, direct control, pride of ownership, retain profit, no corporate taxation Disadvantages Unlimited liability, limited financial resources, management difficulties, overwhelming time commitment, trouble finding qualified employees, slow growth, limited lifespan |
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General Partnership |
A partnership in which all partners share in the management and profit each can act on behalf of the company and has unlimited liability for all its business obligations. |
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Limited Partnership |
A partnership with one or more general partners who have unlimited liability, and one or more limited partners whose liability is limited to the amount of their investment. |
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General Partners |
Partners who have unlimited liability for all of the company's business obligations, and who control its obligations |
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Limited Liability Partnership (LLP) |
A partnership in which each partner is protected from responsibility for the acts of other partners, and each partner's liability is limited to harm resulting from that party's own actions. |
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Partnerships: Advantages/Disadvantages |
Advantages More access to capital, shared management expertise, longer survival, shared risk, no corporate taxation. Disadvantages Unlimited liability, division of profits, potential disagreements among partners, difficult in exiting/dissolving. |
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Ccorporation |
A legal entity with an existence and life separate from its owners, who are not personally liable for the entity's debts. |
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Public Corporation |
Shares are widely held and available to the general public |
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Private Corporation |
A corporation whose number of shareholders is limited; normally restricts the transfer of shares to third parties, and shares do not trade on a recognized stock exchange. |
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Crown Corporation |
Government-owned corporation |
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List: hierarchy of corporate governance |
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Corporation Advantages/Disadvantages |
Advantages Limited liability, ability to attract financing, size may be larger due to increased resources, unlimited life, ease of transfer of ownership, ease of attracting employees, separation of ownership from management Disadvantages Cost/complexity of formation, double taxation of profits, size may become too inflexible for new ideas, termination difficult, stockholder and board conflict, more government restrictions |
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Cooperative |
A legal entity formed by people with similar interests, such as suppliers or customers to reduce costs and gain economic power |
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How are cooperatives different? |
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Joint Ventures |
Two or more companies form an alliance and agree to contribute resources to pursue a particular business project, sometimes for a specified time. |
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Franchises |
A form of business based on a business arrangement between a franchisor, which supplies the product concept band the franchisee, who sells the goods or services of the franchisor in a certain geographic area. |
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Franchises: Advantage/Disadvantage |
Advantages Ease of start/end, be your own boss, direct control, pride of ownership, retain profit, no corporate taxation Disadvantages Unlimited liability, limited financial resources, management difficulties, overwhelming time commitment, trouble finding qualified employees, limited growth, limited lifespan |
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Mergers |
Combination of two or more companies to form a new company, which often takes on a new corporate identity |
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Acquisitions |
The purchase of a company by another company or by an investor group |
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List: Types of takeovers |
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Management |
The process of guiding and directing the development maintenance, and allocation of resources to attain organizational goals. |
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Leadership |
The relationship between a leader and the followers who want real changes, resulting in outcomes that reflect their shared purposes |
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List: Managerial Process |
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Efficiency |
Using the least amount of resources to accomplish the organization's goals |
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Effectivness |
The ability to produce the desired results or goods |
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List: functions of management |
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Planning |
Process of deciding what needs to be done to achieve organizational objectives, identifying when and how it will be done, and determining by whom it should be done. |
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List: Types of planning |
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Strategic planning |
Creating long-term (one to five years) broad goals for the organization, and determining what resources will be needed to accomplish those goals.
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Tactical Planning |
The process of beginning to implement a strategic plan by addressing issues of coordination and allocation of resources to different parts of the organization; has a shorter time frame (less than one year) and more specific objectives than strategic planning. |
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Operational Planning |
The process of creating specific standards, methods, policies, and procedures that are used in specific functional areas of the organization; helps guide and control the implementation of tactical plans. |
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Contingency Planning |
Plans that identify alternative courses of action for very unusual or crisis situations; typically stipulate the chain of command, standard operating procedures, and communication channels the organization will use during an emergency. |
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Mission |
An organization’s purpose and reason for existing; its long-term goals |
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Mission Statement |
A clear, concise articulationof how the company intends to achieve its vision;How it differentiated itself and the keys to success |
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List: Process of Organizing |
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List: Categories of Managerial Skills |
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List: Steps to leading/motivating |
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List: Types of power |
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Legitimate Power |
The process of directing, guiding, an motivating others toward the achievement of organizational goals. |
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Reward Power |
Power that is derived from an individual’s control over rewards. |
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Coercive Power |
Power that is derived from an individual’s ability to threaten negative outcomes. |
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Expert Power |
Power that is derived from an individual's extensive knowledge in one or more areas |
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Referent Power |
Power that is derived from an individual's personal charisma and the respect or admiration the individual inspires |
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List: Leadership styles |
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Autocratic |
Directive with little input from subordinates |
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Participative |
Share decision making and encourage discussion of issues and alternatives |
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List: Types of Participative Leadership |
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Free-rein |
All authority and control to subordinates |
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Corporate Culture |
The set of attitudes, values, and standards of behaviour that distinguishes one organization from another. |
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Employee Empowerment |
The process of giving employees increased autonomy and discretion to make decisions and control over the resources needed to implement those decisions. |
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List: the control process |
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List: 2 types of decisions |
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List: 5 Types of departmentalization |
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Chain of command |
The line of authority Extends from one level to the next Top to bottom Makes clear who reports to whom |
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Span of Control |
The number of employees a manager directly supervises |
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Narrow vs Wide Span of Control Advantages |
Narrow
Wide
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Narrow vs Wide Span of Control Disadvantages |
Narrow
Wide
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Centralization |
The degree to which formal authority is concentrated in one area or level of organization |
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Decentralization |
The process of pushing decision-making authority down the organizational hierarchy |
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Centralization and Decentralization Advantages |
Centralization
Decentralization
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Centralization and Decentralization Disadvantages |
Centralization
Decentralization
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Flat vs Tall Organizations |
Flat
Tall
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Line position |
All positions in the organization directly concerned with producing goods and services and that are directly connected from top to bottom. |
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Staff Position |
Individuals who provide administrative and support services that the line employees need to achieve the firm’s goals. |
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Teams |
Using a team-based structure can increase individual and group motivation andperformance. |
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Work Groups |
share resources and coordinate efforts to help members better perform theirindividual jobs |
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Work Teams |
Similar to work groups but also require the pooling of knowledge, skills, abilities, and resources to achieve a common goal |
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Motivation |
the drive to satisfy a need, ultimately comes from within an individual. |
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Intrinsic rewards |
personalsatisfaction felt when performance is good and goals are achieved Pride,sense of achievement |
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Extrinsic Rewards |
outsiderecognition of good work Salaryincrease, promotion, grades |
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Scientific Management |
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Hawthorne Studies |
Discoveryof psychological factors in motivation
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Hawthorne Effect |
The phenomenon that employees performbetter when they feel singled out for attention or feel that management isconcerned about their welfare. |
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List: Maslow's Hierarchy of Needs |
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ERG Theory |
A theory of motivation developed by Clayton Alderfer that better supports empirical research than Maslow's hierarchy of needs theory; three components of the model are existence, relatedness and growth |
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Draw: Alderfer's ERG Theory |
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List: Theories X and Y |
Theory X
Theory Y
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Theory Z |
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List: 3 Theories of motivation |
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