Book Notes - Chapters 1, 17, 2, 5, 3 Flashcards
(181 cards)
1
Q
Transfer Payments
A
Payments made by the federal gov’t to provinces and territories to deliver req’d services (education, health) and to equalize wealth across Canada
2
Q
Three Levels of Gov’t
A
Federal
Provincial/Territorial
Municipal
3
Q
Patent
A
Form of protection by the gov’t for inventions: right to manufacture, use and sell for 20yrs
4
Q
Copyright
A
Form of protection by the gov’t for: art, music, literature & other intellectual property. Protects for the lifetime of the creator + 50 years thereafter.
5
Q
Trademark
A
Legally exclusive design, name or other distinctive mark that is used to identify products
6
Q
Bankruptcy
A
Legal procedure by which individuals/businesses fail to meet financial obligations are re-leaved of some, if not all debt.
7
Q
Deregulation
A
The removal of rules and regulations governing business competition
8
Q
Tort
A
A civil or private act that harms other people or their property (Physical injury, emotional distress, invasion of privacy or defamation)
9
Q
Consumerism
A
A movement that seeks to increase the rights and powers of buyers in relation to sellers
10
Q
Express Warranties
A
Specific statements of fact, promises about a product by a seller
11
Q
Implied Warranties
A
Not written or oral: example, individual purchases vehicle and next day transmission falls out. This would be covered under Implied Warranties.
12
Q
Product Liability
A
Responsibility of manufacturers and sellers for defects in the products they make/sell
13
Q
Strict Liability
A
Concept in product liability laws under which manufacturer/seller is liable for personal injury or property damage caused by defective products that did not meet industry standards
14
Q
Cartel
A
Agreement between enterprises to lessen competition
15
Q
Monopoly
A
No competition - benefits of a free market are lost
16
Q
Income Taxes
A
Taxes based on the income received by businesses and individuals
17
Q
Property Taxes
A
Taxes imposed on personal property based on assessed value
18
Q
Payroll Taxes
A
Income taxes collected by the employer and remitted to the government. Usually a form of deduction from the employees pay
19
Q
Sales Tax
A
Taxes levied on goods and services when they are sold - calc as % of price
20
Q
Excise Tax
A
Taxes that are imposed on specific items, such as: Gas, Tobacco and Alcohol
21
Q
Economics
A
Study of how a society uses scarce resources to produce and distribute goods and services
22
Q
Microeconomics
A
The sub area of Economics that focuses on an individual parts of the economy such as households or businesses
23
Q
Macroeconomics
A
The sub area of Economics that focuses on the economy as a whole by looking at aggregate data for large groups of people companies or products
24
Q
Factors of production
A
Resources used to create goods and services including natural resources labor Capital entrepreneurship and knowledge
25
Labor
Economic contributions of people
26
Capital
The input such as tools, Machinery, equipment, and buildings, used produce goods and services to the customer
27
Entrepreneurs
People who combine the inputs of Natural Resources, labor, and capital to produce goods or services with the intention of making a profit or accomplish a thing a non-for-profit goal
28
Entrepreneurial thinking
Thinking like an entrepreneur even by those who work in a company
29
Knowledge
The combined talents and skills of the workforce
30
Circular flow
The movement of inputs and outputs among households, businesses, and governments; a way of showing how the sectors of the economy interact
31
Economic system
The combination of policies, laws, and choices made by a nation's government to establish the systems that determine what goods and services are produced and how they are allocated
32
Market economy
An economic system based on the competition in the marketplace and private ownership of the factors of production, resources, also known as the private enterprise system or capitalism
33
Command economy
An economic system characterized by government ownership of virtually all resources and economic decision making by central government planning, also known as planned economy and Central planning
34
Socialism
A social and economic system in which the basic Industries are owned either by the government or by the private sector under strong government control
35
Mixed economies
Economies that combine several economic systems, for example, and economy in which the government owns certain industries but the private sector owns others
36
Market structure
The number of suppliers in a market
37
Perfect (pure) competition
A market structure in which a large number of small businesses sell similar products, buyers and sellers have good information, and businesses can be easily open or closed
38
Monopolistic competition
A market structure in which many businesses offer products that are close substitutes and in which entry is relatively easy
39
Oligopoly
A market structure in which a few companies produce most or all of the output, and in which large Capital requirements or other factors limit the number of companies
40
Pure Monopoly
A market structure in which a single Company accounts for all industry sales and in which there are barriers to entry
41
Barriers to entry
Factors, such as technological or legal conditions, which prevent new companies from competing equally with a monopoly
42
Demand
The quantity of a good or service that people are willing to buy at various prices
43
Demand curve
A graph showing the quantity of a good or service that people are willing to buy at various prices
44
Supply
The quantity of a good or service that businesses will make available at various prices
45
Supply curve
A graph showing the quantity of a good or service that a business will make available at various prices
46
Equilibrium
The point at which quantity demanded equals quantity supplied
47
Economic growth
An increase in a nation's output of goods and services
48
Gross domestic product, GDP
The total market value of all final goods and services produced by a country regardless of where the factors of production are located
49
Business Cycles
How are changes in the level of economic activity
50
Recession
A decline in GDP that last for at least two consecutive quarters
51
Full employment
The condition when all people who want to work and can work have jobs
52
Unemployment rate
The percentage of the total labor force that is actively looking for work but is not actually working
53
Frictional unemployment
Short term unemployment that is not related to the business cycle
54
Structural unemployment
Unemployment that is caused by a mismatch between available jobs and the skill of available workers in an industry or region, not related to the business cycle
55
Cyclical unemployment
Unemployment that occurs when a downturn in the business cycle reduces the demand for labor throughout the economy
56
Seasonal unemployment
Unemployment that occurs during specific seasons in certain industries
57
Inflation
The situation in which the average of all prices of goods and services is rising
58
Purchasing power
The value of what money can buy
59
Demand-pull inflation
Inflation that occurs when the demand for goods and services is greater than the supply
60
Cost-push inflation
Inflation that occurs when increases in production costs push up the prices of final goods and services
61
Consumer Price Index CPI
An index of the prices of a shopping basket of goods and services purchased by consumers
62
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
63
Bank of Canada
Canada Central Bank, whose objective is the economic and financial well-being of Canada by creating a sound balance of growth, employment, and price stability
64
Monetary policy
The measures taken by the Bank of Canada to regulate the amount of money in circulation to influence the economy
65
Contractionary policy
The use of monetary policy by the Bank of Canada to tighten the money supply by selling government securities or raising interest rates
66
Expansionary policy
The use of monetary policy by the Bank of Canada to increase the growth of the money supply
67
Fiscal policy
The government's use of Taxation and spending to affect the economy
68
Federal budget deficit
The condition that occurs when the federal government spends more for programs than it collects in taxes
69
National debt
The accumulated total of all the federal government's annual budget deficits
70
Crowding out
The situation that occurs when government spending replaces spending by the private sector
71
Bonds
Securities that represent long-term debt obligations liabilities issued by corporations and governments
72
Relationship management
The practice of building, maintaining, and enhancing interactions with customers and other parties to develop long-term satisfaction through mutually beneficial Partnerships
73
Strategic Alliance
A Cooperative agreement between companies, sometimes called a strategic partnership
74
Ethics
A set of moral standards for judging whether something is right or wrong
75
Component lifestyle
A lifestyle made up of a complex set of Interest, needs and choices
76
Demography
The study of people's Vital Statistics, such as their age, gender, race and ethnicity, and location
77
Generation Z
Canadians born from the late 1990s onward
78
Generation Y
Canadians born between 1977 and 1997
79
Generation X
Canadians born between 1964 and 1977
80
Baby boomers
Canadians born between 1946 and 1964
81
Multiculturalism
The fundamental belief that all citizens are equal regardless of their racial or ethnic background
82
Social responsibility
The concern of businesses for the welfare of society as a whole, consists of obligations Beyond those required by law or contracts
83
Neoliberalism
A set of economic policies that believes that the economy ( and therefore social policy) should be market-driven not government driven
84
Stakeholders
Individuals, groups, or organizations to whom a business has a responsibility, employees, customers, suppliers, investors, and the General Public
85
Social investing
The practice of limiting Investments to Securities of companies that act in accordance with the investors beliefs about ethical and social responsibility
86
Corporate philanthropy
The practice of charitable giving by corporations, includes contributing cash, donating equipment and products, and supporting the volunteer efforts of company employees
87
Corporate governance
The way in which an organization is governed, directed, and administered
88
Utilitarianism
A philosophy that focuses on the consequences of an action to determine whether it is right or wrong and holds that an action that affects the majority adversely is morally wrong
89
Canadian Charter of Rights and Freedoms
Legislation that guarantees the rights and freedoms of Canadians
90
Justice
What is considered Fair according to the prevailing standards of society, in the 21st century, and equitable distribution of the burdens and rewards that Society has to offer
91
Preconventional ethics
A stage in the ethical development of individuals in which people behave in a childlike Manner and make ethical decisions in a calculating, self-centered, selfish way, based on the possibility of immediate punishment or reward, also known as self-centered ethics
92
Conventional ethics
The second stage in the ethical development of individuals in which people move from an egocentric Viewpoint to consider the expressions of an organization or Society, also known as social ethics
93
Post conventional ethics
The third stage in the ethical development of individuals in which people adhere to the ethical standards of amateur addled and are less concerned about how others view their behavior then about how they will judge themselves in the long run, also known as principled ethics
94
Code of ethics
A set of guidelines prepared by a company to provide its employees with the knowledge of what the company expects in terms of their responsibilities and behavior toward fellow employees, customers and suppliers
95
Whistleblower
An employee, a former employee, or any other member of an organization who reports misconduct by others in the organization to those who have the power to take corrective action
96
Strategic giving
The practice of tying philanthropy closely to the corporate Mission or goals and targeting donations to Regions where a company operates
97
Money
Anything that is acceptable as payment for goods and services
98
Currency
Bank notes and coins used as a medium of Exchange
99
Demand deposits
Money kept in checking accounts that can be withdrawn by depositors on demand
100
Time deposits
Money invested for a specific time
101
Term deposits
Deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand
102
Open market operations
The purchase or sale of Canadian government securities by the Bank of Canada to stimulate or slow down the economy
103
Bank rate
The interest rate that the Bank of Canada charges on one day loans to financial institutions
104
Target for the overnight rate
The signal to the major participants in the money market as to what the Bank of Canada is aiming for when participants borrow and lend one-day funds to each other
105
Four pillars of the Canadian Financial system
The country's Banks, trust companies, insurance companies, and investment dealers
106
Financial intermediation
Process in which financial institutions act as intermediaries between the suppliers and demanders of funds
107
Chartered Banks
Profit oriented financial institutions that accept deposits, make business and Consumer loans, invest in government and corporate Securities, and provide other Financial Services
108
Trust Company
A financial institution that conducts the same activities as a bank but can also administer Estates, trust, pension plans, and agency contracts
109
Credit unions and caisses populaires
Not-for-profit, member-owned Financial corporatives
110
Pension funds
Large pools of money set aside by corporations, unions, and government for later use in payment retirement benefits to their employees or members
111
Canada Deposit Insurance Corporation cdic
A federal Crown Corporation created in 1967 to provide Deposit Insurance and contribute to the stability of Canada's Financial system
112
Securities
Investment certificates issued by corporations or governments that represent either Equity or debt
113
Common shares
The most widely form of ownership with the right of owner (shareholder) to vote on important corporate decisions
114
Dividends
Prophets of the company that are distributed to the shareholders
115
Preferred shares
Shares that unlike common shares, have a specified fixed dividend but typically not a voice in management
116
Bonds
Securities that represent a long-term debt obligations, liabilities issued by corporations or governments
117
Interest
A fixed amount of money paid by the issuer of a bond to the bondholder on a regular schedule, typically every 6 months, stated as the coupon rate
118
Principal
The amount Borrowed by the issuer of a bond, also called per value
119
High-yield, junk bonds
High risk, High return bonds
120
Secured bonds
Corporate bonds for which specific assets have been pledged as collateral
121
Mortgage bonds
Corporate bonds that are secured by property, such as land, equipment, or buildings
122
Debentures
Unsecured bonds that are backed only by the reputation of the issuer and its promise to pay the principal and interest when due
123
Convertible bonds
Corporate bonds that are issued with an option that allows the bondholder to convert them into common shares
124
Bond ratings
Letter grades assigned to bond issues to indicate their quality or level of risk, assigned by rating agencies such as Moody's and Standard and Poor's (S&P)
125
Mutual fund
Financial Service Company that pulls its investors funds to buy a selection of Securities that meet its stated investment goals
126
Exchange traded fund ETF
A basket of marketable Securities in a category, such as an industry sector, and investment objective, or a geographical area, or that track an index, similar to mutual funds but trade like shares
127
Futures contracts
Legally binding obligations to buy or sell specified quantities of Commodities or financial instruments at an agreed on price at a future date
128
Options
Contracts that title holders to buy or sell specified quantities of common shares or other financial instruments on a set price during a specified time
129
Institutional investors
Investment confessionals where paid to manage other people's money
130
Investment bankers
Companies that act as intermediaries, buying Securities from corporations and governments and reselling them to the public
131
Underwriting
The process of buying Securities from corporations and governments and reselling them to the public, with the aim of reselling at a higher price, the main activity of investment bankers
132
Stock broker
A person whose license to buy and sell Securities on behalf of clients
133
Primary Market
The Securities Market where new Securities are sold to the public, usually with the help of investment bankers
134
Secondary Market
The Securities Market were sold, already issued, Securities are bought and sold, or traded, amongst investors
135
Broker markets or organized stock exchanges
Organizations on whose premises Securities are resold by using an auction-style trading system
136
Dealer markets
Securities markets were buy and sell orders are executed through dealers are market makers linked by telecommunications Networks
137
National Association of Securities dealers automated quotation NASDAQ system
The first electronic base stock market and the fastest-growing part of the stock market
138
Over the counter OTC market
A sophisticated telecommunications Network that links dealers and enables them to trade securities
139
Bull markets
Markets in which securities prices are rising
140
Bear markets
Markets in which security prices are falling
141
Global vision
The ability to recognize and react to international business opportunities, be aware of threats foreign competition, and effectively use international distribution networks to obtain raw materials and move finished products to customers
142
Multinational corporations
Corporations that move resources, Goods, services, and skills across National boundaries without regard to the country in which their headquarters are located
143
Exports
Goods and services produced in one country and sold in other countries
144
Imports
Goods and services bought from other countries
145
Balance of trade
The difference between the value of a country's exports in the value of its Imports during a certain time
146
Trade Surplus
A favorable balance of trade that occurs when a country exports more than it Imports
147
Trade deficit
An unfavorable balance of trade that occurs when a country Imports more than it exports
148
Balance of payments
Summary of a country's International financial transaction showing the difference between a country's total payments to and total receipts from other countries
149
Floating exchange rates
A system in which prices of currencies move up and down based on a demand for and supply of the various currencies
150
Devaluation
A lowering of the value of a nation's currency relative to other countries
151
Absolute advantage
The situation when a country can produce and sell a product at a lower cost than any other country or when it is the only country that can provide the product
152
Principle of comparative advantage
The concept that each country should specialize in the products that it can produce most readily and cheaply and trade those products for those that the other countries can produce more readily and cheaply
153
Free trade
The policy of Permitting the people of a country to buy and sell where they please without restrictions
154
Protectionism
The policy of protecting home industries from outside competition by establishing artificial barriers such as tariffs and quotas
155
Preferential tariffs
Tariff that is lower for some Nations than for others
156
Free trade zone
An area where the Nations allow free, or almost free, trade with each other while imposing tariffs on Goods of Nations outside the zone
157
North American Free Trade Agreement, NAFTA
A 1994 agreement creating a free trade zone that includes Canada, Mexico, and the United States
158
Mercosur
Trade agreement between Argentina, Brazil, Paraguay, Uruguay, and Venezuela
159
European Union, EU
Trade agreement among 28 European nations
160
Association of Southeast Asian Nations, ASEAN
A trading Bloc that includes 10 member states: Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Laos, Mayanmar, and Cambodia
161
Exporting
The practice of selling domestically produced Goods to buyers in another country
162
Licensing
The legal process whereby a company agrees to allow another company to use a manufacturing process, trademark, patent, trade secret, or other proprietary knowledge in exchange for the payment of a royalty
163
Contract Manufacturing
The practice in which a foreign company manufactures private-label Goods under domestic company's brand name
164
Joint venture
A business agreement in which two or more businesses agree to pool their resources for a specific project or business venture
165
Direct foreign investment
Active ownership of a foreign company or of manufacturing or marketing facilities in a foreign country
166
Countertrade
A form of international trade in which part or all of the payment for goods or services is in the form of other goods and services
167
Dumping
The practice of charging a lower price for a product in foreign markets than in the company's home market
168
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
169
World Bank
International Bank that offers low interest loans, as well as advice and information, to developing nations
170
International monetary fund, IMF
An international organization, founded in 1945, that promotes trade, make sure term loans to member nations, and acts as a lender-of-last-resort for troubled Nations
171
Nationalism
Sense of national consequence that boost the culture and interests of one country over those of all other countries
172
Infrastructure
The basic institutions and public facilities on which and economies development depends
173
Tariff
A tax imposed on imported goods
174
Protective tariffs
Tariffs are imposed to make Imports less attractive to buyers than domestic products
175
Import quota
A limit on the quantity of a certain good that can be imported, also known as quantitative restraint
176
Embargo
Total ban on Imports or exports of a product
177
Customs regulations
Regulations on products that are different from generally accepted International standards
178
Exchange controls
Laws that require a company earning for an exchange, foreign currency, from its exports to sell the foreign exchange to a control agency, such as a central bank
179
Ethics
A set of moral standards for judging whether something is right or wrong
180
Component lifestyle
Lifestyle made up of a complex set of Interest, needs, and choices
181
Demography
The study of people's Vital Statistics, such as their age, gender, race and ethnicity, and location
