Term
|
Definition
| the money a business spends producing its goods and services and generally running the business |
|
|
Term
|
Definition
| the money a business earns selling its products and services |
|
|
Term
|
Definition
the mental and physical training and talents of people
Sometimes called human resources |
|
|
Term
|
Definition
| the funds needed to operate on enterprise |
|
|
Term
|
Definition
| items used in the production of goods and services in their natural state, including land, water, mineral deposits, and trees |
|
|
Term
|
Definition
| information such as market forecasts, economic data, and specialized knowledge of employees that is useful to a business and that helps it achieves its goals |
|
|
Term
|
Definition
| an economic system in which government controls all or most factors of production and makes all or most production decisions |
|
|
Term
|
Definition
| a type of command economy in which the government owns and operates all industries |
|
|
Term
|
Definition
| a kind of command economy in which the government owns and operates the main industries, while individuals own and operate less crucial industries |
|
|
Term
|
Definition
| an economic system in which individuals control all or most factors of production and make all or most product decisions |
|
|
Term
|
Definition
| a mechanism for exchange between the buyers and sellers of a particular good or service |
|
|
Term
|
Definition
| a kind of market economy offering private ownership of the factors of production and of profits from business activity |
|
|
Term
|
Definition
| an economic system with elements of both command and market economy; in practice, typical of most nations’ economies |
|
|
Term
|
Definition
| the transfer of activities from the government to the public sector |
|
|
Term
|
Definition
| a reduction in the number of laws affecting business activity |
|
|
Term
|
Definition
| are levied by governments primarily to provide revenue to fund various services and programs |
|
|
Term
| progressive revenue taxes |
|
Definition
| taxes levied at a higher rate on higher-income taxpayers and at a lower rate on lower-income taxpayers |
|
|
Term
|
Definition
| taxes levied to control certain activities that legislators believe should be controlled |
|
|
Term
|
Definition
| the willingness and ability of buyers to purchase a product or service |
|
|
Term
|
Definition
| the willingness and ability of producers to offer a good or service for sale |
|
|
Term
| demand and supply schedule |
|
Definition
| assessment of the relationship between different levels of demand and supply at different price levels |
|
|
Term
| market price/equilibrium price |
|
Definition
| profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal |
|
|
Term
|
Definition
| situation in which quantity supplied exceeds quantity demanded |
|
|
Term
|
Definition
| situation in which quantity demanded exceeds quantity supplied |
|
|
Term
|
Definition
| an economic system characterized by private property rights, freedom of choice, profits, and competition |
|
|
Term
| 4 element of private enterprise |
|
Definition
o Private property of rights – ownership of the resources used to create wealth is in the hands of individuals
o Freedom of choice – you can sell your labour to any employer you choose
o Profits – the lure of profits leads some people to abandon security of working and to assume the risks of entrepreneurship
o Competition – profit motivates individuals to start businesses, competition motivates them to operate those businesses efficiently |
|
|
Term
|
Definition
| the vying among businesses in a particular market or industry to best satisfy consumer demands and earn profits |
|
|
Term
|
Definition
| everything outside an organization’s boundaries that might affect it |
|
|
Term
|
Definition
| conditions of the economic system in which an organization operates |
|
|
Term
| 3 key goals of canadian economic system |
|
Definition
| economic growth, economic stability, and full employment |
|
|
Term
|
Definition
| pattern of short-term ups and downs (expansions and contractions) in an economy |
|
|
Term
|
Definition
| GDP measured in current dollars or will all components valued at current prices |
|
|
Term
|
Definition
| principle that exchange rates are set so that the prices of similar products in different countries are about the same |
|
|
Term
|
Definition
| the result of the government spending more in one year than it takes in during that year |
|
|
Term
|
Definition
| condition in an economic system in which the amount of money available and the quantity of goods/services produced are growing at about the same rate |
|
|
Term
|
Definition
| measure of the prices of typical products purchased by consumers living in urban areas |
|
|
Term
|
Definition
| people are out of working temporarily while looking for a new job |
|
|
Term
|
Definition
| people are out of work because of the seasonal nature of their jobs |
|
|
Term
|
Definition
| people are out of work because of a downturn in their business cycle |
|
|
Term
|
Definition
| people are unemployed because they lack the skills needed to perform available jobs |
|
|
Term
|
Definition
| policies by means of which governments collect and spend revenues |
|
|
Term
|
Definition
| policies by means of which the government controls the size of the nation’s money supply |
|
|
Term
|
Definition
| government policy, embracing both fiscal and monetary policies, whose goal is to smooth out fluctuations in output and unemployment and to stabilize prices |
|
|
Term
| 3 most serious issues facing Canadian businesses are |
|
Definition
| taxation, the value of the Canadian dollar, and the need for an educated/skilled workforce |
|
|
Term
|
Definition
| skills and resources with which an organization competes best and creates the most value for owners |
|
|
Term
|
Definition
| strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services |
|
|
Term
| 3 common criteria used to determine when a new firm comes into existence |
|
Definition
o When it was formed
o Whether it was incorporated
o And if it sold good and/or services |
|
|
Term
|
Definition
| the process of identifying an opportunity in the marketplace and accessing the resources need to capitalize on it |
|
|
Term
|
Definition
| the part of the economy that is made up companies and organizations that are not owned or controlled by the government |
|
|
Term
|
Definition
| an estimate of how much of a product or service will be purchased by prospective customers over a specific period |
|
|
Term
|
Definition
| a document that describes the entrepreneur’s proposed business venture; explains why it is an opportunity; and outlines its marketing plan, its operational and financial details, and its managers’ skill and abilities |
|
|
Term
|
Definition
money that is borrowed
o Borrow is obliged to repay the full amount of the loan in addition to interest charges on the debt |
|
|
Term
|
Definition
| money that the entrepreneur (or others) invests in a business in return for an ownership interest |
|
|
Term
|
Definition
| assets that a borrower uses to secure a loan or other credit, and that are subject to seizure by the lender if the loan isn’t repaid according to the specified repayment terms |
|
|
Term
| the most common sources of equity financing include |
|
Definition
| personal savings, love money, private investors, venture capitalists |
|
|
Term
| reasons for succeeding in small business |
|
Definition
- Hard work, drive and dedication
- Market demand for the product or service
- Managerial competence
- Luck |
|
|
Term
| reasons for failure in small business |
|
Definition
- Managerial incompetence or inexperience
- Neglect
- Weak control systems
- Insufficient capital |
|
|
Term
|
Definition
| personal liability for all debts of the business |
|
|
Term
|
Definition
| a type of partnership in which all partners are jointly liable for the obligations of the business |
|
|
Term
|
Definition
| a type of partnership with at least one general partner and one or more limited partners. Limited partners cannot participate in day to day management of the business or they risk the loss of their limited liability status |
|
|
Term
|
Definition
| partners who are actively involved in managing the firm and have unlimited liability |
|
|
Term
|
Definition
| partners who don’t participate actively in the business and whose liability is limited to the amount they invested in the partnership |
|
|
Term
|
Definition
| persons who own shares in a corporation |
|
|
Term
|
Definition
a group of individuals elected by a firm’s shareholders and charged with overseeing, and taking legal responsibility for the corporation’s actions
o Chooses president and other officers
o Sets policies |
|
|
Term
|
Definition
| members of a corporation’s board of directors who are also full-time employees of the corporation |
|
|
Term
|
Definition
| members of a corporation’s board of directors who are not also employees of the corporation |
|
|
Term
|
Definition
| the person responsible for the firm’s overall performance |
|
|
Term
|
Definition
| a business whose shares are widely held and available for sale to the general public |
|
|
Term
|
Definition
| a business whose shares are held by a small group of individuals and is not usually available for sale to the general public |
|
|
Term
|
Definition
| an acquisitions in which the management of the acquired company welcomes the firm’s buyout by another company |
|
|
Term
|
Definition
| an acquisition in which the management of the acquired company fights the firm’s buyout by another company |
|
|
Term
| national competitive advantage 4 conditions |
|
Definition
o Factor conditions – factors of production
o Demand conditions – reflect a large domestic consumer base that promotes strong demand for innovative products
o Related and supporting industries – include strong local or regional suppliers and/or industrial customers
o Strategies, structures and rivalries – firms and industries that stress cost reduction, product quality, higher productivity and innovative new products |
|
|
Term
|
Definition
| country exports more than it imports |
|
|
Term
|
Definition
| when a country imports more than it exports |
|
|
Term
|
Definition
| The difference between money flowing in to and out of a country as a result of trade and other transactions |
|
|
Term
|
Definition
| the value of any country’s currency relative that to another country remains constant |
|
|
Term
|
Definition
| norm, value of one’s country currency relative to that of another varies with market conditions |
|
|
Term
|
Definition
| - A foreign individual or organization, who agrees to represent an exporter’s interests in foreign markets |
|
|
Term
|
Definition
| - An arrangement by an owner of a process or product to allow another business to produce, distribute, or market it for a fee or royalty |
|
|
Term
|
Definition
| - A location that an export firm establishes in a foreign country in order to sell its product more effectively |
|
|
Term
|
Definition
| - An enterprise in which 2 or more persons or companies temporarily join forces to undertake a particular project |
|
|
Term
| foreign direct investment |
|
Definition
| - Buying or establishing tangible assets in another country |
|
|
Term
|
Definition
| a restriction by one nation on the total number of products of a certain type that can be imported from another nation |
|
|
Term
|
Definition
| a government order forbidding exportation and/or importation of a particular product |
|
|
Term
|
Definition
| a tax levied on important product |
|
|
Term
|
Definition
| imposed strictly to raise money for the government |
|
|
Term
|
Definition
| meant to discourage the importation of particular product |
|
|
Term
|
Definition
| a government payment to help domestic business compete with foreign firms |
|
|
Term
|
Definition
| protecting domestic business at the expense of free market competition |
|
|
Term
|
Definition
| any association of producers whose purpose is to control the supply and price of a given product |
|
|
Term
|
Definition
| selling a product for less abroad that in the producing nation; illegal in Canada |
|
|
Term
|
Definition
| - Agreement among major western European nations to eliminate or make uniform most trade barriers affecting group members |
|
|
Term
|
Definition
| - Agreement to gradually eliminate tariffs and other trade barriers among US, Canada and Mexico |
|
|
