Midterm 1 Flashcards
(137 cards)
1
Q
What is a business?
A
An organization that seeks to profit by providing goods and/or services to satisfy society’s needs
2
Q
What are goods?
A
Physical, tangible products that we can see and touch
3
Q
What are services?
A
Intangible offerings that we experience or use
4
Q
What is standard of living?
A
The amount of products available, the wealth of the nation, and lifestyle opportunities
5
Q
What is quality of life?
A
General level of human well-being and happiness including access to healthcare, education and food
6
Q
What is risk?
A
The chance that an investment actual return will be different than expected.
7
Q
What are the 5 factors that affect the business environment?
A
- Political
- Economic and Competitive
- Social
- Technology
- International
8
Q
What does the Federal Government have authority over?
A
-Money and Banking
-Trade Regulations
-External Relations
-Defense
-Criminal Law
-Employment Insurance
-Copyrights
-Transportation
9
Q
What does the Provincial Government have authority over?
A
- Administration of labour laws
- Education
- Health and welfare
- Protection of property and civil rights
- Natural Resources
- Environment
10
Q
What does the Municipal Government have authority over?
A
- Deliver services such as:
- Water
- Sewer
- Waste Collection - Encourages Development
11
Q
What are patents?
A
It gives an inventor the exclusive right to manufacture, use and sell an invention for 20 years
12
Q
What are trademarks?
A
a design, name, or other distinctive mark that is sued to identify producss
13
Q
What is Consumerism?
A
reflects the struggle for power between buyers and sellers. Movement seeking to increase rights and power
14
Q
What is bankruptcy?
A
The legal act by which individuals or businesses that cannot meet their financial obligations are relieved of some, if not all, of their debt
15
Q
What is Deregulation?
A
The removal of rules and regulations governing business competition.
16
Q
What is Excise taxes?
A
Taxes imposed on specific items like gasoline, alcohol, and tobacco
17
Q
What is a Mixed Economy?
A
An economic system where most land business are privately owned but with various levels of government involvement
18
Q
What is a Command Economy?
A
An economic system where the government decides what goods and services are being produced, how they are produced.
19
Q
What is a recession?
A
Two or more consecutive three-month periods (quarters) of a decline in a country’s GDP - leads to a depression
20
Q
What is GDP?
A
Gross Domestic Product - Total dollar value of all goods and services produces during a one-year period.
21
Q
What is purchasing power?
A
The value of what money can buy
22
Q
What is inflation?
A
The value of money goes down
23
Q
What is deflation?
A
The value of money goes up
24
Q
What is Demand-Pull Inflation?
A
When demand for G&S is greater than supply
25
What is Cost-Push Inflation?
Inflation triggered by increases in production costs
26
What are Information Systems?
Technology that helps classify, handle, arrange, manage (and more) information
27
What are the 4 stages of a Business life cycle?
1. Inception
2. Growth
3. Maturation
4. Decline
28
What does SWOT stand for?
Strength
Weakness
Opportunity
Threats
29
What does PEST(EL) stand for
Political
Economic
Social
Technological
Environmental
Legal
30
What are Porter's Five Forces?
1. Risk of new entry by potential competitors
2. Degree of rivalry among existing competitors
3. The bargaining power of buyers
4. The bargaining power of suppliers
5. The threat of substitute products.
31
What does "Pro forma" mean?
Projected - essentially "where do we think we're going?"
32
What is the pathway for Corporate-Level Strategy?
-Vision
-Mission
-Business Level Strategy
33
What is Free Trade?
The movement of goods and services among nations without political or economic trade barriers
34
What is a Balance of Trade?
The difference between the value of a country's exports and the value of its imports during a certain time
35
What is a Trade Surplus?
A favourable balance of trade that occurs when a country exports more than it imports
36
What is a Trade Deficit?
An unfavourable balance of trade that occurs when a country imports more than it exports
37
What is a Balance of Payments?
The difference between money coming into the country and money leaving the country
38
What is a currency exchange rate?
The value of one currency in relation to another
39
What is Licensing?
The legal process allowing a company to use a manufacturing process, franchise, trademark, patent, etc.
40
What is Contract Manufacturing?
A FOREIGN company manufacturers private label goods under a domestic company's brand
41
What are Joint Ventures?
Two or more businesses combine for a specific project or business venture
42
What are the 4 factors fostering global trade?
- Antidumping Laws
- World Trade Organization (WTO)
- World Bank
- International Money Fund (IMF)
43
What is an Economic Community?
Organization of countries formed to promote the free movement of resources and products among member nations AKA economic integration
44
What are the goals of economic communities?
1. Reduce Trade Barriers
2. Increase Flow of International Trade
3. Promote peaceful relationships between countries
4. Provide increased prosperity for the citizens of each member country
45
What are some political barriers to International Trade?
- Nationalism
- Mistrust
46
What are some economic barriers to International Trade?
-Infrastructure
47
What are some natural barriers to International Trade?
- Language Differences
- Cultural Differences
- Legal and Regulatory Differences
48
What are Tariffs?
A tax imposed on imported goods
49
What are Protective Tariffs?
Make imports less attractive to buyers than domestic products
50
What is an Import Quota?
Limit on the quantity of a certain good that can be imported
51
What is an Embargo?
A complete ban on imports or exports of a product
52
What are Exchange Controls?
Laws that require a company earning foreign exchange from its exports to sell the foreign exchange to a control agency
53
What are Customs Regulations?
Regulations on products that are different from generally accepted international standards
54
What is a Sole Proprietorship?
One, Sole, Owner
55
What is a Partnership?
Two, or more, owners
56
What is a Corporation?
A business that is it's own legal entity
57
What are the type of partnerships?
- General
- Limited
- Limited Liability
58
What are the type of corporations?
- Public -- Shares are widely held and available to the general public
- Private -- Shareholders are limited, do not trade on recognized stock exchange
- Crown -- Government-owned
59
(From top-to-bottom) What are the levels of Corporate Governance?
1. Owner/Stockholders
2. Board of Directors
3. Officers
4. Managers
5. Employees
60
What is a Cooperative?
Formed by a community to reduce costs and gain economic power. All profits are distributed to the member-owners in proportion to their contributions.
61
What is a merger?
2 companies coming together
62
What is an Acquisition?
1 company buying out another company and running it.
63
What is an entrepreneur?
A person with vision, drive, and creativity who are willing to take a risk
64
What is a classic entrepreneur?
A person who accepts the associated risk and starts a single company
65
What is a Multipreneur?
Someone who starts a series of companies
66
What is an Intrepreneur?
Someone who doesn't start their own business, but treats their job like they own the business
67
What are the 3 areas Entrepreneurial opportunities come from?
1. Online
2. Population/Demographic
3. Physcial
68
What are the aspects of a small business?
1. Not a dominant company
2. Locally Based
3. Independently Managed
4. Owned by an individual or a small group
69
What is the main advantage of a small business?
Able to react more quickly to changing market forces
70
What are the two main disadvantages for staying a small business?
-Limited managerial skills may impact growth
- High Failure rate
71
What are the two forms of financing?
1. Debt
2. Equity
72
What are the 3 types of investors?
1. Angel Investors
2. Venture Capital
3. Crowdfunding
73
What is an angel investor?
A private investor who provides early-stage financing for start up businesses in exchange for ownership
74
What is a venture capital investment?
Money invested in high growth companies that have significant potential
75
What is a franchise?
a form of business based on an arrangement between a franchisor and a franchisee
76
4 Factors that causes business closures
1. Economic Factors
2. Financial Causes
3. Lack of experience
4. Personal Reasons
77
What are the 4 functions of Management?
1. Planning
2. Organizing
3. Leading/Motivating
4. Controlling/Evaluating
78
What is an Autocratic leadership style?
Directive with little input from subordinates
79
What is the Participative leadership style?
Share decision making and encourage discussion of issues and altenatives
80
What is the Laissez-faire leadership style?
Leader provides basic vision, the necessary resources for the team and acts as an advisor
81
What is Legitimate Power?
The process of directing, guiding, and motivating others towards the achievement of organizational goals
82
What is Reward power?
Power that is derived from an individual's control over rewards
83
What is coercive power?
Power that is derived from an individual's ability to threaten negative outcomes
84
What is Expert Power?
Power that is derived from an individual's extensive knowledge in one or more areas
85
What is Referent Power?
Power that is derived from an individual's personal charisma and the respect or admiration the individual inspires
86
What are the steps of planning?
Establishing organizational goals and deciding how to accomplish them
87
What is strategic planning?
Creating long-range (1-5 years) broad goals
88
What is tactical planning?
Implementing strategies to lead to the long-range goal. Tactical plans typically have a shorter time frame of (<1 year)
89
What is operational planning?
The process of creating specific standards that are used in specific functional areas. Helps lead to tactical goal.
90
What is contingency planning?
Plans that identify alternative courses of action for crisis situations
91
What are the 3 aspects of organizing?
1. Dividing up the tasks - Divison of Labour
2. Grouping (jobs and employees) - Departmentalization
3. Assigning (authority and responsibilities) - Delegation
92
What are the 3 basic categories of Managerial skills?
1. Conceptual - "Big Picture"
2. Technical - specific skills
3. Interpersonal - dealing with people
93
What is the Decision making pathway?
1. Identify the problem
2. Generate Alternatives
3. Evaluate alternatives
4. Implement Solution
94
What is Corporate Culture?
The inner customs, traditions, and values of an organization
95
What is Employee Empowerment?
The process of giving employees increased autonomy and discretion to make decisions and control over the recourses needed to implement those decisions
96
What is Job Design?
Structuring the tasks and activities required to accomplish a business's objectives into specific jobs
97
What is Job specialization?
Separation of all organizational activities into distinct tasks and assignment of tasks to different people
98
What is job rotation?
Systematic shifting of employees from one job to another to facilitate task variety
99
What are the 5 types of Departmentalization?
1. Functional Departmentalization
2. Produce Departmentalization
3. Process Departmentalization
4. Customer Departmentalization
5. Geographic Departmentalization
100
What is centralization?
The degree to which formal authority is concentrated to one area or level within the organization
101
What is de-centralization?
The process of pushing decision-making authority down the organizational hierarchy
102
What is Span of Mangement?
The number of employees a manager directly supervises
103
What is an organizational chart?
A visual representation of the organizational structure
104
What is a Flat organizational structure?
Few layers of management
105
What is a Tall organizational structure?
Many layers of mangement
106
What is Human Resource Management?
All the activities invoved in acquiring, maintaining, and developing to achieve an organization's goals
107
What is Acquisition of Employees?
Planning, job analysis, recruiting, selection, and orientation
108
What is Maintenance of Employees?
Employee relations, compensation, and benefits
109
What is Development of Employees?
Involves training and development and performance appraisal (review)
110
What is workplace diversity?
Difference among the workforce in terms of social background, ethnicity, gender, religion, age, physical or learning abilities, and sexual orientation
111
What is replacement chart?
A list of key employees and their possible replacements within a company
112
What is a skills inventory?
A database containing information on the skills and experience of all current employees.
113
What is Job Analysis?
Identifying the job duties and requirements for an organization
114
What is the Job Description?
The tasks and responsibilities of a particular job
115
What is the Job Specification?
The qualifications required to perform a particular job
116
What is the difference between the internal and external labour market?
Internal - promotions and job transfers within the company
External - qualified job candidates are not already in the company
117
What are the 6 steps to recruit and select employees?
1. Attract candidate pool
2. Screen candidates
3. Interview candidates
4. Compare candidates
5. Check references
6. Make a job offer
118
What is compensation?
The monetary or non-monetary payment employees receive in return for their labour
119
What are Fringe benefits?
Indirect compensation: Pensions, health insurance, vacation, etc.
120
What is Orientation?
The process of acquainting new employees with the organization
121
What is the objective of training?
Improve an employee's skills and abilities
122
What is the objective of development?
Prepare employees for advancement in the organization
123
What are 4 methods of Training and Development?
1. On-the-job training
2. Simulation
3. Classroom teaching
4. Online Training
124
What are the 5 steps of Performance Planning?
1. Performance standards are established
2. Employee works to meet those standards
3. supervisor evaluates the employee's work based on standards
4. Following performance review, reward and job change decisions can be made
5. Rewards are positive feedback
125
What is a Labour Union?
A group of employees that, with numbers, has collective power to fight against injustice and ensure fair treatment
126
What is a strike?
A protest against the working environment. Collective action against employer
127
What percentage of Canada's workforce are unionized?
Around (likely fewer) than 30%
128
What is a labour contract?
A written agreement between labour and management that is in force for a set period of time
129
What are grievance procedures?
A formally established course of action for resolving employee complaints against management
130
What is the Canada Industrial Relations Board (CIRB)?
A federal agency that interprets and administers provisions of labour law to support constructive labour-management relations
131
What is required to form a union?
Employees to express interest in being represented by a union
132
What is collective bargaining?
Process of union representative and employer debate to come to labour agreement for wages, benefits, and working conditions
133
What are Labour's goals in collective bargaining?
High pay and Secure Jobs
134
What are Management's goals in collective bargaining?
Quality workforce, controlled cost, and flexibility
135
What is mediation?
When a neutral third party is introduced to help the negotiating parties talk through it
136
What is arbitration?
When a neutral third party is introduced to formulate a final decision (may be binding or non-binding)
137
