Term
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Definition
| an organization that produced or sells goods or services in an effort to make a profit |
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| What remains after a business's expenses have been subtracted from its revenues |
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Term
| Not-for-profit Organizations |
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Definition
- An organization that provides goods and services to customers but does not seek to make a profit while doing so
ex. Charities, educational institutions, hospitals, labour unions, government agencies |
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Term
| Five Factors of Production |
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Definition
1. Labour
2. Capital
3. Entrepreneurs
4. Natural Resources
5. Information |
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Definition
FACTOR OF PRODUCTION
aka. Human Resources
- Mental and physical capabilities of people |
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Definition
FACTOR OF PRODUCTION
- the funds that are needed to start a business and to keep it operating and growing
- Major sources: personal investment by owners, sale of stock to investors, profits from sales and funds borrowed from banks/lending institutions |
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FACTOR OF PRODUCTION
- people who accept the opportunities and risks involved in creating and operating businesses |
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FACTOR OF PRODUCTION
- all physical resources including land, water, mineral deposits, and trees |
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Definition
FACTOR OF PRODUCTION
- specialized knowledge and expertise of people who work in businesses
- also information found in market forecasts and other forms of economic data
- Can be shared without diminishing |
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Term
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Definition
| - The way in which a nation allocates its resources among its citizens |
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Definition
An economic system in which government controls all or most factors of production and makes all or most production decisions
eg. Socialism & Capitalism |
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Definition
| An economic system in which individuals control all or most factors of production and make all or most production decisions |
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Definition
A COMMAND ECONOMY
- Karl Marx, 19th Century German economist
- Government owns and operates all sources of production
- Contributions & benefits are all in accordance to ability & need |
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Definition
A COMMAND ECONOMY
- Government owns and operates only selected major industries
- Smaller businesses may be privately owned but a large amount of the population works for the government |
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Definition
| An exchange process between buyers and sellers of a particular good or service |
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Definition
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Definition
| Business to Business Transactions |
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Definition
| Firms buy resources that they need in the production of goods and services |
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Definition
| An economic system in which markets decide what, when, and for whom to produce |
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Definition
| An economic system with elements of both a command economy and a market economy; in practice, typical of most nations' economies |
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Definition
| The transfer of activities from the government to the private sector. |
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Definition
- a reduction in the number of laws effecting business activity
- a trend in the 1990s |
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Term
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Definition
- Government buys products and services from business firms
ex. office supplies, office buildings, computers, battleships, helicopters, highways, water treatment plants, management/engineering services
- Many businesses depend on gov't purchasing |
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Term
| Government as a Competitor |
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Definition
- Competes with businesses through Crown corporations (which are accountable to a minister of parliament)
eg. Hydro-Quebec and Canada Post
- Crown corporations exist at provincial & federal levels |
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Term
| Government as a Regulator |
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Definition
- Federal & provincial
- Regulate business activity through administrative boards, tribunals & commissions
- Promotes competition, protects consumers, achieves social goals & protects environment |
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Definition
-Regulated the price of wheat and prohibited farmers from selling to US elevators
- All wheat had to be sold through the Wheat Board
- Changed in 2011 when Conservative Gov't introduced legislation to allow farmers to sell their wheat without going thru Wheat Board |
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Term
| Canadian Radio-television and Telecommunications Commission |
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Definition
- Issues & renews broadcast licenses
- Conflict with Netflix over Canadian content
- Netflix argued that the CRTC did not have jurisdiction over online media
- Some argue the CRTC is obsolete with the amount of media consumed online |
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Definition
Prohibits a variety of business practices that lesson competitions
ex. Prevents large companies with lots of resources from slashing prices and driving smaller businesses out of the market
See table 1.1 on page 10 |
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Definition
- Prohibits cigarette advertising on bill boards and in stores
- Legislation to protect consumers |
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Term
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Definition
- sets standards of accuracy for weighing and measuring devices
- Legislation to protect consumers |
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Term
| Canada Consumer Product Safety Act |
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Definition
- Replaced "Hazardous Products Act"
- Requires poisonous, flammable, explosive or corrosive products to be appropriately labeled |
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Definition
- Levied by government to fund services & programs
ie. income tax --> funds libraries, construction, schools etc. |
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Term
| Progressive Revenue Taxes |
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Definition
| - Levied at a higher rate on higher-income tax payers and at a lower rate on lower-income tax payers. |
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Term
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Definition
- Levied at the same rate regardless of person's income.
ie. Sales tax |
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Term
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Definition
- Taxes on controlled items like alcohol, tobacco, gasoline etc.
- Levied partially for revenue they provide, but also because legislative bodies believe they should be controlled/regulated |
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Term
| General Motors and Chrysler Bailout |
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Definition
2009
- Canadian gov't bailed GM out of bankruptcy in order to save jobs & keep Canada at a competitive point in global car manufacturing
- Critics argue it was too much money spent and not worth the jobs it kept
- Canada paid US$13.7 billion in loans and share purchases
- Canada still dropped fro 8th to 16th in the world for car production during 1999-2014 |
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Term
| The Canada Business Program |
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Definition
- provides information on gov't programs, services and regulations in order to improve the start-up and survival rates f small and medium-sized businesses
- Encourages businesses to focus on sound business planet and effective use of market research |
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Term
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Definition
| a person hired by a company or an industry to represent its interests with government officials |
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Term
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Definition
| - requires lobbyists to register with the Commissioner of Lobbying so it is clear which individuals are being paid for their lobbying activity. |
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Term
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Definition
| An organization dedicated to promoting the interests and assisting the members of a particular industry |
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Term
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Definition
| The willingness and ability of buyers to purchase a product or service |
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Definition
| The willingness and ability of producers to offer a good or service for sale |
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Term
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Definition
| The principle that buyers will purchase (demand) more of a product as price drops |
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Term
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Definition
| The principle that producers will offer (supply) more of a product as the price rises |
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Term
| Demand and Supply Schedule |
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Definition
| Assessment of the relationships between different levels of demand and supply at different price levels |
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Term
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Definition
| Graph showing how many units of a product will be demanded (bought) at different prices |
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Term
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Definition
| Graph showing how many units of a product will be supplied (offered for sale) at different prices |
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Term
| Market Price (Equilibrium Price) |
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Definition
| Profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal |
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Term
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Definition
| Situation in which quantity supplied exceeds quantity demanded |
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Term
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Definition
| An economic system characterized by private property rights, freedom of choice, profits, and competition |
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Term
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Definition
1. Perfect Competition
2. Monopolistic Competition
3. Oligopoly
4. Monopoly |
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Term
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Definition
- All firms in the industry are small and there are many of them
- Products produced by different firms are virtually identical
- No single firm is powerful enough to influence prices so they are determined by supply and demand
eg. Agriculture in Canada & Wheat |
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Term
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Definition
- Fewer sellers but many buyers
- Businesses may be large or small but small stores can compete successfully with large ones
- Sellers try to make their products seem different than the others which gives control over prices |
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Definition
- Industry with a handful of large sellers
- Competition is fierce because the actions of one firm drastically effects sales of other firms |
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Term
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Definition
| When and industry/market has only one producer who can set the price of its product and/or resources |
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Term
| Eras in Canadian Business History |
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Definition
1. Factory System/Industrial Revolution (factories)
2. Entrepreneurial Era
3. Production Era (moving assembly line)
4. Sales and Marketing Eras (1930s - 60s)
5. Finance Era (1980s)
6. Global Era (90s - 2000s)
7. Internet Era |
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Term
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Definition
| Everything outside an organization's boundaries that might affect it |
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Term
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Definition
| Conditions of the economic system in which an organization operates |
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Definition
| Total quantity of goods and services produced by an economic system during a given period |
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Term
| Phases of the "Business Cycle" |
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Definition
- Economic pattern, short term ups and downs
1. Peak
2. Recession
3. Trough
4. Recovery
* Depression occurs when Trough lasts over 2 years |
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Term
| Gross Domestic Product (GDP) |
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Definition
- The total value of all goods and services produced within a given period by a national economy through domestic factors of production
Canada's GDP 2015 - $1.825 Trillion |
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Term
| Gross National Product (GNP) |
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Definition
| - The total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located |
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Term
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Definition
| Gross domestic product per person |
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Term
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Definition
| GDP calculated to account for changes in currency value & price changes |
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Term
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Definition
| Principle that exchange rates are set so that the prices of similar products in different countries are about the same |
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Term
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Definition
| - Measure of economic growth that compares how much a system produces with the resources (factors of production) needed to produce it |
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Definition
| The total of a country's exports (sales to other countries) minus it's imports (purchases from other countries) |
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Definition
| The total amount of money that a country owes to its creditors |
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Term
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Definition
| The result of the government spending more in one year than it takes in |
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Term
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Definition
| Occurrence of widespread price increases throughout an economic system |
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Term
| Consumer Price Index (CPI) |
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Definition
- Measurement of the prices of typical products purchased by consumers living in urban areas
- Measures the cost of a "basket" of goods and services a typical family buys
- Has changed from 1913 including coal and spirit vinegar to including things like flat screen tvs and laser eye surgery |
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Term
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Definition
| Policies whereby the governments collect and spend revenues |
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Term
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Definition
| Policies whereby the government controls the size of the nations money supply |
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Term
| Research & Development (R&D) |
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Definition
Those activities that are necessary to provide new products, services & processes
Basic (or pure) R&D - improving knowledge in an area without a primary focus on whether any discoveries that might occur are immediately marketable
Applied R&D - focusing specifically on how a technological innovation can be put to use in the making of a product/service that can be sold in the marketplace |
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Term
| Politcial-legal Environment |
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Definition
| Conditions reflecting the relationship between business and government, usually in the form of government regulation |
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Term
| Socio-cultural Environment |
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Definition
| Conditions including the customs, values, attitudes and demographic characteristics of the society in which an organization functions |
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Term
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Definition
| - The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services |
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Term
| Business Process Management |
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Definition
| - An approach by which firms move away from department-oriented organization and toward process-oriented team structures that cut across old department boundaries |
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Definition
- When one firm buys another firm
ie. Hudson's Bay company buying Saks Fifth Ave |
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Term
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Definition
| - Consolidation of two firms, usually more collaborative than Acquisition |
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Term
| "Poison Pill" A defence management adopts to make a firm less attractive to an actual or potential hostile suitor in a takeover attempt |
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Definition
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Definition
| Occurs when a company sells part of its existing business operations to another company |
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Definition
| The strategy of setting up one or more corporate units as new, independent corporations |
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| Strategic Alliance (aka Joint Venture) |
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Definition
| An enterprise in which two or more persons or companies temporarily join forces to undertake a particular project |
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