Flashcards in Chapter 1 Deck (37):
model of the external environment. An acronym for the Political, Economic, Social, Technological and International environments that interact with business.
An organization that strives for a profit by providing goods and services desired by its customers
tangible items manufactured by businesses
intangible offerings of businesses that can't be touched or stored.
standard of living
a country's output of goods and services that people can buy with the money they have.
quality of life
The general level of human happiness based on such things as life expectancy, educational standards, health, sanitation and leisure time.
the potential for losing resources, most commonly time and money, or otherwise not being able to accomplish an organization's goals.
the money a company earns from providing services or selling goods to customers.
expenses incurred in creating and selling goods and services.
the money left over after all expenses are paid.
Not for profit organization
an organization that exists to achieve some goal other than the usual business goal of profit.
payments made to the provinces and territories by the federal government to help to deliver required services such as health and education, and to help equalize the wealth across Canada.
a form of protection (limited monopoly) established by the government for inventors; it gives an inventor the exclusive right to manufacture, use, and sell an invention for 20 years.
a form of protection established by the government for creators of works of art, music, literature, or other intellectual property; it gives the creator the exclusive right to use, produce, and sell the creation during the lifetime of the creator and extends these rights to the creator's estates for 50 years thereafter.
the legally exclusive design, name, or other distinctive mark that a manufacturer uses to identify its goods in the marketplace.
the legal procedure by which individuals or businesses that cannot meet their financial obligations are relieved of some, if not all, of their debt.
the removal of rules and regulations governing business competition.
a civil or private act that harms other people or their property. The harm might involve physical injury, emotional distress, invasion of privacy or defamation (injuring a person's character by publication of false statements).
a movement that seeks to increase the rights and powers of buyers vis-à-vis sellers. (often resulting in consumer protection laws)
the responsibility of manufacturers and sellers for defects in the products they make and sell.
a concept in product-liability laws under which a manufacturer or seller is liable for any personal injury or property damage caused by defective products or packaging that does not meet industry standards.
an agreement between enterprises to lessen competition.
a situation where there is no competition and the benefits of a free market are lost.
taxes that are based on the income received by businesses and individuals.
taxes that are impose on real and personal property based on the assessed value of the property.
income taxes that are collected by the employer and remitted to the federal government, usually in the form of a deduction from the employee's pay.
taxes that are levied on goods and services when they are sold; calculated as a percentage of the price.
taxes that are imposed on specific items such as gasoline, alcoholic beverages and tobacco.
What is in the world of business?
Businesses, not-for-profit organizations (social causes or charity work), governments.
Federal government's role
The Federal government has the authority for money and banking, trade regulation, external relations, defence, criminal law, employment insurance, copyrights, and transportation.
The Federal government's labour code
regulates employment standards in industries such as banking, marine shipping, ferry and port service, air transportation, railway and road transportation.
Responsibilities of the provinces or territories
administration of labour laws (minimum wages, vacations, statutory holidays, overtime), education, health and welfare, protection of property and civil rights, natural resources and the environment.
deliver such services as water, sewer, waste collection; encourage economic development; and use bylaws to regulate.
tax agents, regulators (laws), providers of essential services (national defence and transportation) and providers of incentives used to simulate the economy (student loans), but they are also customers and competitors.
Canadian laws protect
patents, copyrights, and trademarks and provide mechanisms for bankruptcy and insolvency. Tort law provides a means for someone or a business to correct harm done to them. Consumers are protected by warranties, product-liability law, and the Competition Act.
Most common taxes paid by businesses
income taxes, property taxes (assessed on real property), payroll taxes, sales taxes, excise taxes.