midterm Flashcards
(143 cards)
1
Q
what is a business?
A
activities where producers provide tangible goods and services in the hopes of gaining a profit
2
Q
what is profit?
A
difference between avenues and cost. also called bottom line
3
Q
what is loss
A
opposite of profit
4
Q
what is an entrepreneur?
A
person who takes a risk to start a business. they are their own boss
5
Q
what is the standard or living?
A
availability, quantity and quality of goods and services available
6
Q
what is quality of life?
A
overall wellbeing a person has
7
Q
what is the history of business in Canada?
A
8
Q
what is mercantilism?
A
getting raw materials from colonies, bringing it back to the motherland and transform it into a product. sold in colony and motherland. France and Quebec: top hat with beaver fur
9
Q
what is a profit business?
A
-primary goal to increase profits
-based on increasing revenues and decreasing expenses
-reasons why business exists is to make profit
10
Q
what is a non profit business?
A
business-like establishment
-primary goal is not profit
-contributing to the community
-theres still employees, who earn salaries
-reasons they exist is not to make profit but to contribute to the community
11
Q
what are the 4 factors of production?
A
-natural resources: crude from being transformed (wood, rivers, oil)
-capital (tools, equipment that allow us to build tools and services of business)
-entrepreneurship (without entrepreneurs, our economy would never grow)
-Human Resources (labour, constructions and factory workers)
12
Q
what are the PESTLE components?
A
P: political/legal. laws and philosophies of political parties
E: economic. health of the economy
S: socio-cultural. norms, customers and values
T: technological. availability and development of technology
environmental: nature and conditions of environment
13
Q
what is the political part of the PESTLE?
A
political/legal:
-elected government policies
-laws governing society
-political stability
conservative governments better for businesses cause they dont tax as much
14
Q
what is the economic part of PESTLE?
A
-state of the economy (recession)
-economic indicators (unemployment, inflation, GDP)
-personal income and debt
15
Q
what is the socio-cultural part of PESTLE?
A
-diversity
-aging population
-ehtics and values
ex: coffee culture in Italy vs America
16
Q
what is the technological part of PESTLE?
A
-internet and e-commerce
-technological changes ti businesses
-availability of technology in a specific market place
17
Q
what is the environmental part of PESTLE?
A
-availability of resources
-environmental changes
-ex: global warming could affect fishing business
18
Q
how do we stay competitive in a business environment?
A
-build long term relationships with customers
-focus on costumer satisfaction
-focus on cost-benefit ratio: speed-to-market, workforce advantage
19
Q
what is the point of porter’s 5 forces?
A
allows us to determine whether or not an industry is an attractive one for us to go into
20
Q
what are porter’s 5 forces?
A
-bargaining power of supplier
-threats of new entrants
-industry competition
-threat of substitution
-bargaining power of buyer
21
Q
what is the bargaining power of supplier?
A
if supplier can easily change price of product youre selling and you cant go anywhere else, then bargain power is high
22
Q
what is threat of new entrants?
A
how easy it is to start a business in that market
23
Q
what is industry competition?
A
how much competition do we have
24
Q
what is threat of substitution?
A
indirect competition of two products that are different but satisfy the same needs (ex: orange crush and Coca Cola)
25
what is bargaining power of buyer?
if consumer can dictate price of products and quality
26
what is the economy?
financial system of how resources flow through society from production to distribution to consumption.
27
what is economics?
looks at scarcity and choice. study of choices we make in the way in which we allocate resources
28
what are macroeconomics?
focuses on the big picture, countries, provinces, the global economy and how those factors interact. Pestle is macroeconomics
29
what are microeconomics?
focuses on individuals and businesses and the decisions that they make
30
what are economic indicators?
-information about economic activity
-analyze past performances and predict future ones
31
give examples of economic indicators?
-unemployment
-inflation
-gross domestic product
32
what is the economic year divided into?
quarters (divided by 4)
33
what is the GDP?
total value of all goods and services produced in an economy at a particular moment in time
34
what are unemployment rates?
-important cause if more people are working, that means they have money
-if more people are unemployed, the government needs to intervene more and offer securities to people who dont have a job
35
what is inflation?
price of goods and services going up. if keeps going up, I cant keep up and I wont be able to buy
36
what are fiscal policies?
-influencing the economy through taxation and spending
-put forth by the government
-budget surplus (taxed more than we spent)
-budget deficient (spending greater than revenues)
-debt (if gov keeps overspending accumulation turns into debt)
37
who puts fiscal policies in place?
government in power. pay taxes and the government uses them as their salary. taxes allow for government programs to exist
38
who puts monetary policies in place?
bank of canada. all banks must report back to the bank of canada
39
what are monetary policies?
-decisions made regarding money supply and interest rates
-put forth by the bank of canada
-money supply (M1, M2, M3)
-open market operations
-reserve equipment
40
which M is the most liquid?
M1
41
what is reserve equipment?
stipulates how much each bank needs to keep in order to give cash to customers if needed
42
what is capitalism?
-free market system (choice of what want to buy and sell) based on private ownership and economic freedom
43
who developed capitalism?
Adam smith
44
what are the fundamental rights of capitalism?
-right to own a business and keep profits
-right to private property (can own factors of production)
-right to free choice
-right to fair competition
45
is Quebec a capitalist province?
-not really: aviation industry: bombardier dominates and is controlled by government
-lots of policies and laws against anglos
-higher taxes (no right to keep profits)
46
what is socialism?
-oppoosite of capitalism
-gov is involved and controls key industries
-crown corporations: corporations owned by the state
-very high taxes and redistribution of wealth
47
what is communism?
-clear link between political and economic
-with communism, all businesses are owned and controlled by government
-government should redistribute everything and make everything equal
-not really any perfect examples of communism
-cant chose what business you wanna go into
-regardless of what youre producing al things produced are equal
-everyone payed the same
48
what is a mixed market?
-a bit of socialism with a bit of capitalism
-no such thing as 100% capitalist country
-in the case of Quebec its a mix between capitalism and socialism
49
what are the four degrees of competition?
-pure competition
-oligopoly
-monopolistic competition
-monopoly
50
what is pure competition?
-selling nearly identical product
-competition based on price
-no single consumer controls the market
51
what is oligopoly?
-few sellers
-breaking into the market very difficult
-very little price competition
-very few sellers with very large and powerful sellers
52
what is monopolistic competition?
-many sellers all different sizes
-differentiate based on quality, branding, price
53
what is a monopoly?
-single producer
-controls market and price
-no competition
54
what is the law of demand?
-people will be willing and able to buy more of a product if the price is lower
55
what is the law of supply?
suppliers will be willing and able to produce more of a product if the price is higher
56
what is gross domestic product?
-total value of goods and services produced economy
-indication if economic growth and stability
57
what are te types of GDP?
-GDP per capita
-real GDP
both times account for something or else would be unfair (ex: comparing to china)
58
what is GDP per capita?
GDP per person (tells us how productive we are per person)
59
what is real GDP?
based on crisis, takes into account things like inflation
60
what are unemployment levels?
-unemployment rate: percentage of people in the labour force who are actively seeking work but cannot find a job
-participation rate
-labour force
61
what is the labour force?
unemployed people+employed people
62
who's considered unemployment?
people who dont have a job but who also are looking for a job
63
do we want unemployment rate to be zero?
no, cause we want some people free in case we want to start a business
64
what is the unemployment rate?
(number of people unemployed/labour force)x100
65
what are the types of unemployment?
-seasonal unemployment
-frictional unemployment
-structural unemployment
-cyclical unemployment
66
what is seasonal unemployment?
ex: seasonal
67
what is frictional unemployment?
-takes time to find a job suitable for you. shift in your life. takes some time to find your first real job (example)
68
what is structural unemployment?
industries no longer necessary, industry disappears and jobs do too.
example: typewriter specialist
69
what is cyclical unemployment?
job loss due to recession
70
what is a recession?
economy shrinking for more than 2 consecutive quarters
71
what is inflation?
-average price of goods and services are increasing
72
what is hyperinflation?
50 percent or more per month of inflation
73
what does printing more money do?
hyperinflation
74
how do we measure inflation?
-consumer price index. if prices go up, we are experiencing inflation
-GDP deflator: difference between nominal and real GDP
75
what are exchange rates?
value of the Canadian dollar in relation to other currencies
this affects imports and export market
76
what happens when the Canadian dollar is lower value?
makes our products look less expensive to the Americans, so that they can buy them
77
what are the types of business ownership?
-sole proprietorship
-partnership
-corporation
-cooperative
78
what is sole proprietorship?
-legally youre one entity
-single owner or married couple owning a business
-business is an extension of you
79
what is partnership?
agreement between 2 or more people. come together and decide to co own a business
80
what is a corporation?
-business is completely separate entity from you as a person
81
what is a cooperative?
-you buy into a cooperative (like a membership)
-owned and run by group of people
-memebrship gives you one vote for decisisons for cooperative
82
what are the advantages and disadvantages of sole proprietorship?
83
what are the types of partnerships? what do they each do?
-general partnership
-limited partnership
-limited liability partnership
84
what are the advantages and disadvantages of a general partnership?
85
What are the advantages and disadvantages of a limited partnership?
86
What are the advantages and disadvantages of LLP?
87
what is the most common type of business in canada?
corporation
88
what are the types of corporations?
-private corporation
-public corporation
89
what are private corporations?
not publicly traded
90
what are public corporations?
anyone can buy shares in the stock market for it
91
what are crown corporations?
government owned organisation that provides services to Canadians that no other firm can provide
92
What is the corporation structure?
93
What are the advantages and disadvantages of a corporation
94
What are the advantages and disadvantages of a cooperative?
95
what are not for profit corporations?
corporation that does not seek to earn a profit and differs in several fundamental respects from general corporations
96
what is franchising?
licensing agreement under one party (franchisor) that allows another party (franchisee) to use their name, operation method, etc.
97
what are the two franchising arrangements?
-distributorship
-business format franchise
98
what is a distributorship?
franchisor makes products, then they go to franchisee
99
what is a business format franchise?
pay to use name, trademark and distribute it
100
101
What are the elements of a franchise
102
What are the franchising advantages?
103
what are the motivations for starting a business?
-independence
-flexibility (schedules)
-challenge (challenging opportunity)
-greater financial success
-survival (ex: KFC)
104
what are the typical characteristics of an entrepreneur?
-vision (see problems as opportunity)
-self-reliance
-energy
-confidence
-tolerance for uncertainty
-tolerance for failure
105
what are common entrepreneurs myths?
-entreprneeurs are born, not made
-entrepreneurs are gamblers
-money is the key to entrepreneurial success
-you have to be young to be an entrepreneur
-you must have a degree to be an entrepreneur
106
what is a small business?
-less than 100 employees
-98 percent of businesses in canada are small
-main source of job creation
-crucial to economy
107
what a family business?
type of small business:
-any business where two or more family members are involved I its management and the majority of ownership or control lies within a family
-oldest form of business ownership
-succession planning (can lead to feuds, nepotism, etc.)
108
what are the opportunities for a small business?
-focus on niche market
-personalized customer service (sense of community)
-lower overhead cost (rent, electricity)
109
what are the threats for a small business?
-high risk of failure
-lack of knowledge and experience
-lack of financial capital (large businesses can overtake smaller ones)
-coping with regulations
110
what are the funding resources for small businesses?
-personal resources (using your own money)
-loans (borrowing money, bank or financial lender)
-angel investors
-venture capitalist firms
111
what are angel investors?
an individual who invests in a start up with high growth potential in exchange for stocks (no managing)
112
what is venture capitalist firm?
a company that invests in start ups with high growth potential in exchange for stocks
113
what are the impacts of small businesses?
-creating new job
-fuelling innovation
-creating opportunities for women (cause of glass ceiling theory that prevents women from reaching their full potential, so they start their own business)
114
what are the practice models for dentistry?
-sole proprietorship (alone)
-professional corporation: mitigate risks associated to starting your own practice, most dentists way of incorporating business when have professional status
-joint ownership (LLP): 2 or more dentists have dentistry practice but their own liabilities
-cost sharing (just share expenses and cost)
115
what are the pharmacist ownership options?
-independant stores
-franchise (good cause franchises give business training, as pharmacists aren't trained in business
116
what is marketing?
planning and executing the four Ps in order to create an exchange that satisfies both business and consumers
117
what is customer relationship management?
acquiring, growing, and managing our costumers. cheaper to keep a costumer happy than acquire a new one
118
what is consumer behaviour?
-how people act when they buy, use and discard of a product
119
what is segmentation?
-segmenting possible costumers and selecting our target market
-divide up all possible stumpers into meaningful groups that have similar traits
-when you try and make everyone happy, you end up making nobody happy
120
what is the target market?
-group most likely to buy your product that has similar traits, chosen with segmentation
121
122
What is the history of marketing?
123
is marketing advertising?
no! its so much more than that
124
what is advertising?
communication method, one of the components of marketing, but not the whole thing
125
what are the two different types of costumers for a business?
B2B
B2C
126
what are the tow types of values?
-perceived: what we think we get out of a purchase (ex: warmth of a winter coat)
-actual: about of dollars
127
what is costumer satisfaction?
the good or service delivered has a value above costumer expectations
128
what is costumer loyalty?
when costumers choose your product ove and over again
129
what is utility?
ability of goods and services to satisfy costumer wants
130
what are the different types of utilities?
-form utility: turn raw materials into final product (ex: Ikea)
-time utility: products available when we want them
-place utility: available in place where we need them
-ownership utility: transferring ownership from business to client (ex: self-checkout)
131
what are consumer goods?
tangible profits purchased by individuals for their use
132
what are industrial goods?
products purchased by companies to use directly or indirectly to produce other products
133
what are services?
intangible products to serve users' needs
134
what are ideas?
able to cummincate and sell to people:
thoughts or philosophies:
-veganism, religion, communism
135
in the competitive environment, what are the types of competition?
-brand competition (similar products, coke vs Pepsi)
-substitue products (dissimilar products that can meet the same need (juice vs pepsi)
-international competition: when the competition is international
136
what is a marketing plan?
formal document outlining marketing objectives and plan to achieve these objectives. focuses on 4 P's to achieve them
137
what are the steps to a marketing plan?
-consumer market segmentation:
-target market
-target market characteristics (in order to reach them)
138
what are the target market characteristics?
size, profitability, accessibility, limited competition
139
what are the market segmentation categories?
-geographic: based on where people live
-demographics: characteristics of our population (age, gender, income, ethnicity, religion, etc.)
-psychographics: focuses on motivations, attitudes, opinions, brings them together
-behavioural variables: people using products in different ways: (ex: using baking soda to clean or to bake)
140
what is the marketing mix?
-promotion: advertising, communication, how you let ppl know product exists)
-price: setting good price for the product
-product: way the product looks, unique packaging, silhouette, etc.
-place: distribution, where we sell our product
141
what is cognitive dissonance?
discomfort about the purchasing decision made (buyer's regret)
142
what are factors influencing consumer behaviour?
-psychological influences: motivations, attitudes about specific product
-personal influences: lifestyle, personality
-social influences: friends, family for suggestion
-cultural influences: factors due to difference in culture
143
what is the consumer behaviour buying process?
-problem recognition (perceiving a need)
-information search (seeking value, start with internal search)
-evaluation of alternatives (assessing the value, based on evaluation criteria, evoked set)
-purchase decision: buying value (best product for our needs)
-post purchase evaluation: value in consumption, cognitive dissonance
