unit 2 Flashcards
(46 cards)
Economies of Scale
Economies of scale refer to the cost advantages that businesses gain by increasing their production volume
Budget
A budget is a plan that helps you manage your money. It shows you how much money you have, how much money you need to spend on different things, and how much money you can save or use for other goals.
Variable Costs vs. Fixed Costs
VARIABLE: Expenses that change directly with the level of production or sales activity
FIXED: Expenses that remain the same regardless of the level of production or sales activity
Profit Equation
total revenue - total expenses
Corporate Citizens
Corporate citizenship is how a company exercises its rights, obligations, privileges, and overall corporate responsibility within our local and global environments
Price Fixing
Price fixing is an illegal agreement between competitors to set prices at a specific level
Unemployment Rate
the amount of people who are eligible to get jobs but don’t have any
- if the rate is 5% (high) the availability of labour is high
Cartels
a collection of independent businesses or organizations that collude to manipulate the price of a product or service
ex. OPEC - controls 35% of oil production and has 66% of the worlds oil reserve
Inflation
Inflation is the rate of increase in prices over a given period of time
Monopoly
a situation in which a single company or group owns all or nearly all of the market for a given type of product or service
Marketing Boards
organization set up by a government to regulate the buying and selling of a certain commodity within a specified area.
Caveat Emptor
a buyers responsibility for due diligence before purchase
- “let the buyer be aware”
Departmentalization
is a method of organizing work and responsibilities within a company by creating separate departments for specific functions or activities
Labour Market
the supply and demand for labour
Unskilled Labour vs. Skilled Labour
unskilled doesn’t require education / low education level
skilled requires higher level of education or training
Compensation
monetary payment given to an individual in exchange for their services
Minimum Wage
is the lowest hourly rate an employer can legally pay an employee
Commission
a fee paid to an agent or employee for transacting a piece of business or performing a service
Piecework
any type of employment in which a worker is paid a fixed piece rate for each unit produced or action performed, regardless of time
Stock Option
a benefit in the form of an option given by a company to an employee to buy stock in the company at a discount or at a stated fixed price.
Royalty
payments made to an owner for the right to use their intellectual property, such as patents, trademarks, or copyrights, or for the use of their assets like franchises or natural resources
Employee Turnover
the rate at which employees leave a company and are replaced, encompassing both voluntary resignations and involuntary terminations (firings or layoffs)
Salary
a fixed amount of money or compensation paid to an employee by an employer in return for work performed
Incentive
something that encourages a person or organization to do or achieve something.
