1E03 Flashcards
1
Q
Resources
A
General terms that incorporates Human Resources, natural resources, and financial resources
2
Q
Management
A
Process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources
3
Q
Planning
A
Anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives
4
Q
Organizing
A
Designing the structure of the organization and bearing conditions and systems in which everyone and everything work together to achieve the organization’s goals and objectives
5
Q
Leading
A
Creating a vision for the organization and communicating, guiding, training, coaching, and motivating others to work effectively to achieve the organization’s goals and objectives
6
Q
Controlling
A
Establishing clear standards to determine whether or not an organization’ is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not
7
Q
Vision
A
A broad explanation of why the organization exists and where it is trying to head
8
Q
Values
A
Set of fundamental beliefs that guide a business in the decisions it makes
9
Q
Mission Statement
A
An outline of fundamental purposes of an organization
10
Q
Goals
A
The broad, long-term accomplishments an organization is trying to attain
11
Q
Objectives
A
Specific, measurable, short term statements detailing how to achieve the organization’s goals
12
Q
SWOT Analysis
A
A planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats
13
Q
Strategic Planning
A
Process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals
14
Q
Tactical Planning
A
Process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done
15
Q
Operational Planning
A
Process of setting work standards and schedules necessary to implement the company’s tactical objectives
16
Q
Contingency Planning
A
Process of preparing alternative courses of action that may be used if the primary plans do not achieve the organization’s objectives
17
Q
Crisis Planning
A
Involves reacting to sudden changes in the environment
18
Q
Decision Making
A
Choosing among two or more alternatives
19
Q
Problem Solving
A
Process of solving the everyday problems that occur. Problem solving is less formal less than decision making usually calls for quicker action
20
Q
Brainstorming
A
Generating as many solutions to a problem as possible in a short period of time with no censoring of ideas
21
Q
PMI
A
Creative thinking strategy that lists all of the pluses, minuses and interesting points for a solution in separate columns
22
Q
Organization Chart
A
A visual device that shows relationships among people and divides the organization’s work; it shows who is accountable for the completion of specific work and who reports to whom
23
Q
Top Management
A
Highest level of management, consisting of the president and other key company executives, who develop strategic plans
24
Q
Middle Management
A
The level of management that includes general managers, division managers, and branch and plant managers, who are responsible for tactical planning and controlling
25
Supervisory Management
Managers who are directly responsible for supervising workers and evaluating their daily performance
26
Technical Skills
Involves the ability to perform tasks in a specific discipline or department
27
Human Relation Skills
Involves communication and motivation; they enable makers to work through and with people
28
Conceptual Skills
Involves the ability to picture the organization as a whole and the relationships among its various parts
29
Staffing
A management function that includes, hiring, motivating, and retaining the best people available to accomplish the company's objectives
30
Transparency
Presentation of the company's facts and figures in a way that is clear, accessible, and apparent to all stakeholders
31
Autocratic Leadership
Involves making managerial decisions without consulting others
32
Participative Leadership
Consists of managers and employees working together to make decisions
33
Free-rein Leadership
Involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those tasks
34
Transformational Leadership
Occurs when leaders can influence others to follow them in working to achieve a desired outcome or goal
35
Transactional Leadership
Leader is given the power to assign tasks and their completion leads to rewards and reinforcement
36
Knowledge Management
Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm
37
External Customers
Dealers, who buy products to see to others, and ultimate customers, who buy products for their own personal use
38
Internal Customers
Individuals and units within the firm that receive services from other individuals or units
39
Research and Development
Work directed toward the innovation, introduction, and improvement of products and processes
40
Production
The creation of finished goods and services using factors of production; land, labour, capital, entrepreneurship, and knowledge
41
Production Management
Term used to describe all of the activities that managers do to help their firms create goods
42
Operations Management
Specialized area in management that converts or transforms resources into goods and services
43
Facility Location
Process of selecting a geographic location for a company's operations
44
Telecommunicating
Working from home on a computer
45
Facility Layout
Physical arrangement of resources in the production process
46
Materials Requirement Planning (MRP)
Computer based operations management system that uses sales forecasts to ensure that needed parts and materials are available at the right place and time
47
Enterprise Resource Planning (ERP)
A computer application that enables a firm to manage all of its operations on the basis of a single, integrated set of corporate data
48
Purchasing
Function that searches for quality material resources, finds the best suppliers, and negotiates for the best price for goods and services
49
Just-in-time (JIT) Inventory Control
Minimum of inventory on the premises and delivers parts, supplies, and other needs are delivered just in time for use on the assembly line
50
Quality
Consistently producing what the customer wants while reducing errors before and after delivery to the customer
51
Six Sigma Quality
Quality measure that allows only 3.4 detects per million events
52
Statistical Quality Control
Process some managers use to continually monitor all phases of the production process and assure quality is built into the product from the beginning
53
Statistical Process Control
Process of testing statistical samples of product components at each stage of the production process and plotting these results on a graph. Any variances from quality standards are recognized and be corrected if beyond the set standards
54
ISO 9000
Common name given to quality management and assurance standards
55
ISO 14000
A collection of the best practices for managing an organization's impact on the environment
56
Logistics
Activities that focus on getting the right amount of the right product or services to the right place and the right time for the lowest possible price
57
Supply Chain
Sequence of firms that perform activities required to create and deliver a good or service to consumers or industrial users
58
Supply Chain Management
Integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to customers
59
Form Utility
Value added by the creation of finished goods and services
60
Process Manufacturing
Part of the production process that physically or chemically changes materials
61
Assembly Process
Part of production process that puts together components
62
Continuous process
Production process in which long production runs turn out finished goods over time
63
Intermittent Process
Production process in which the production run is short and the machines are changed frequently to make different products
64
Flexible Manufacturing
Designing machines to do multiple tasks so that they can produce a variety of products
65
Lean Manufacturing
Production of goods using less of everything compared to mass production
66
Mass Customization
Tailoring products to meet the needs of individual customers
67
Computer Aided Design (CAD)
The use of computers in the design of products
68
Computer- Aided Manufacturing (CAM)
The use of computed in the manufacturing of products
69
Computer- Integrated Manufacturing (CIM)
Uniting of computer-aided design with computer aided manufacturing
70
Program Evaluation and Review Technique
Method for analyzing the tasks involved in competing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total task
71
Critical Path
In a PERT network, the sequence of tasks that takes the longest time to complete
72
Gantt Chart
Bar graph showing production managers what projects are underway and what stage they are in at any given time
73
Human Resource Management
The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals
74
Job Analysis
A study of what is done by employees who hold various job titles
75
Job Description
A summary of the objectives of the job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other function
76
Job Specifications
Written summary of the minimum qualifications required of workers to do a particular job
77
Recruitment
Set of activities for obtaining the right number of qualified people at the right time
78
Selection
The process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interests of the individuals and organization
79
Contingent Workers
Workers who do not have full-time, regular employment
80
Training and Development
All attempts to improve productivity by increasing an employee's ability to perform. Training focuses on short-term skills, where as development focuses on the long-term abilities
81
Orientation
Activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, values, and objectives of the firm
82
On-the-Job Training
Training at the workplace that let the employee learn by doing or by watching others for awhile and then imitating them
83
Apprentice Programs
Training programs during which a learner works alongside an experienced employee to master the skills and procedures of a craft
84
Off-the-Job Training
Internal or external programs away from the workplace that develop any of a variety of skills or foster personal development
85
Online Training
Training programs in which employees complete classes via the internet
86
Vestibule Training
Training done in schools where employees are taught on equipment similar to that used on the job
87
Job Stimulation
Use of equipment that duplicates job conditions and tasks so that trainees can learn skills before attempting them on the job
88
Management Development
Process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time
89
Networking
Process of establishing and maintaining contacts with key managers in and outside the organization and using those contacts to weave strong relationships that serve as informal developmental systems
90
Mentor
Experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor
91
Performance Appraisal
Evaluation that measures employees performance against established standards in order to make decisions about promotions, compensation, training, or termination
92
Fringe Benefits
Sick pay leave, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages
93
Cafeteria-style Benefits
Benefit plans that allow employees to choose which benefits they want up to a certain dollar amount
94
Flextime Plan
Work schedule that gives employees some freedom to choose when to work, as long as jeu work the required number of hours
95
Core Time
In a Flextime plan, the period when all employees are expected to be at their job stations
96
Compressed Workweek
Work schedule that allows an employee to work a full number of hours per week but in fewer days
97
Job- Sharing
Lets two or more part-time employees share one full-time job
98
Pay Equity
Equal pay for work of equal value
99
Gender Wage Gap
Difference in wages earned by men and wages earned by women
100
Employee Equity
Employment activities designed to increase employment opportunities for four groups (women, Aboriginal people, persons with disabilities, and members of visible minorities) given past discrimination
101
Reverse Discrimination
Discriminating against members of a dominant or majority group usually as a result of policies designed to correct previous discrimination against minority or disadvantaged groups
102
Labour Union
An employee organization whose main goal is representing its members in employee-management negotiation of job-related issues
103
Craft Union
Organization of skilled specialists in a particular craft or trade; typically local or regional
104
Industrial Union
Consists of unskilled and skilled workers in mass-production industries such as automobile manufacturing and mining
105
Independent Local Organization
Union that is not formally connected or affiliated with any other labour organization
106
Directly Chartered Union
Union that is directly affiliated to labour congress
107
National Union
Union that only represents workers in Canada
108
International Union
Union that represents workers in the United States and Canada
109
Unionization Rate (Union Density)
Measure of the percentage of employed individuals who are union members
110
Coverage Rate
Measure of the percentage of employed individuals (including both union and non-unionized members) who are covered by a collective agreement
111
Labour Relations Board (LRB)
Organization created by the federal or provincial government to enforce labour legislation
112
Collective Bargaining
Process whereby union and management representatives negotiate a contract for workers
113
Certification
Formal process whereby a union is recognized by the LRB as the bargaining agent for a group of employees
114
Decertification
Process by which workers can take away a union's right to represent them
115
Negotiated Labour-Management Agreement (Labour Contract)
Agreement that sets the tone and clarifies the terms and conditions under which management and labour agree to function over a period of time
116
Union Security Clause
Provision in a negotiated labour-management agreement that stipulates that employees who benefit from a union must either officially join or at least pay dues to the union
117
Closed Shop Agreement
Clause in a negotiated labour-management agreement that specifies workers need to be members of a union before being hired
118
Agency Shop (Rand formula) Agreement
Clause in negotiated labour-management agreement that says employees may hire non-union workers; employees are not required to join the union but must pay the union dues
119
Union Shop Agreement
Clause in a negotiated labour-management agreement that says workers who do not have to be members of a union to be hired, but must agree to join the union within a prescribed period
120
Open Shop Agreement
Clause in a negotiated labour-management agreement that states employees are free to join or not the join the union and to pay or not to pay union dues
121
Checkoff
A contract clause requiring the employee to deduct union dues from employees' pay and remit them to a union
122
Grievance
Charge by employees that management is not abiding by or fulfilling the terms of the negotiated labour-management agreement
123
Shop Stewards
Union officials who work permanently in an organization and represent employee interests on a daily basis
124
Bargaining Zone
Range of options between the initial and final; offer that each party will consider before negotiations dissolve or reach an impasse
125
Conciliation
Use of a government-appointed third party to explore a labour-management dispute
126
Mediation
The use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the dispute
127
Arbitration
An agreement to bring in an impartial third party (a single arbitrator or panel of arbitrators) to render a binding decision in a labour dispute
128
Strike
A union strategy where workers refuse to go to work
129
Primary Boycott
When a union encourages both its members and the general public not to buy the products of a firm involved in a labour dispute
130
Secondary Boycott
An attempt by labour to convince others to stop doing business with a firm that is the subject of primary boycott
131
Lockout
An attempt by management to put pressure on union workers by temporarily closing the business
132
Injunction
A court order that's directs someone to do something or refrain from doing something
133
Strikebreakers
Replacement workers hired to do the jobs of striking employees until the labour dispute is settled
134
Back-to-work Legislation
A special law passed by the federal or provincial government that orders an end to a labour-management dispute in an industry the government decided is essential to the operation of the economy
135
Givebacks
Concessions made by members to management; gains from previous labour negotiations are given back to management to help employees remain competitive and thereby save jobs
136
Marketing
Set of business practices designed for and present an organization's products or services in ways that build effective customer relationships
137
Marketing Concept
A three-part business philosophy; 1. customer orientation, 2. a service orientation and 3. a profit orientation
138
Market Orientation
Focusing efforts on; 1. Continuously collecting information about customers' need and competitors' capabilities, 2. Sharing this info throughout the organization and3. Using the info to create value, ensure customer satisfaction, and develop customer relationships
139
Customer- Relationship Management
Process of building long-term customer relationships by delivering customer value and satisfaction
140
Social Media
Commonly given to websites and online tools that allow user to interact with each other in some way- by sharing information, opinions, knowledge and interests
141
Social Media Marketing
Consumer-generated online-marketing efforts to promote brands and companies by which they are fans (non-fans too) and the use of marketer of online tools and platforms to promote their brands or organizations
142
Marketing Mix
The ingredients that go into a marketing program; product, place, price and promotion
143
Product
Any physical good, service, or idea that satisfies a want or a need
144
Test Marketing
The process of testing products among potential users
145
Brand Name
A word, letter, or a group of letters that differentiates one seller's good and service from those of competitors
146
Price
The money or another consideration exchanged for the ownership or use pf a good or service
147
Promotion
All of the techniques sellers use to motivate customers to buy their products
148
Marketing Research
The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions
149
Secondary Data
Information that has already been compiled by others and published in journals and books or made available online
150
Primary Data
Data that you gather yourself (not from secondary sources)
151
Focus Group
A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other issues
152
Observation
Involves watching, either mechanically or in person, how someone behaves
153
Environmental Scanning
The process of identifying the factors that can affect marketing success
154
Consumer Market
All individuals or households that want goods and services for personal consumption or use
155
Cause Marketing
Occur when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products
156
Business-to-Business Market (B2B)
All individuals and organization that want goods and services in use in producing other goods and services or to sell, rent, or supply goods to others
157
Market Segmentation
Process of dividing the total market into groups with similar characteristics
158
Geographic Segmentation
Dividing the market by the geographic area
159
Demographic Segmentation
Dividing the market by age, income, and education level
160
Psychographic Segmentation
Dividing the market using the group's values, attitudes, and interests
161
Behavioural Segmentation
Dividing the market based on behaviour with or toward a product
162
Target Marketing
Marketing toward those groups an organization decides it can serve profitability
163
Mass Marketing
Developing products and promotions to please larger groups of people
164
Niche Marketing
Process of finding small but profitable market segments and designing or finding products for them
165
One-to-One Marketing (micro-marketing)
Developing a unique mix of goods and services for each individual customer
166
Product Positioning
Place an offering occupies in customers' minds on important attributes relative to competitive products
167
Positioning Statement
Expresses how a company wants to be perceived by customers
168
Relationship Marketing
Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meets their requirements
169
Consumer Behaviour
When marketing researchers investigate consumer thought processes and behaviour at each stage in a purchase to determine the best way to help the buyer buy
170
Green Marketing
The process of selling products and/or services based on their environmental benefits
171
Greenwashing
When businesses try to make themselves or their products or services look green or socially responsible without the action to back it up
172
Ethnic Marketing
Combinations of the marketing mix that reflect the unique attitudes, race or ancestry, communication preferences, and lifestyles of ethnic Canadians
173
Value
Quality at a fair price
174
Total Product Offer (Value Package)
Everything that customer evaluate when deciding whether or not to purchase something
175
Product Line
Group of products that are physically similar or intended for a similar market
176
Product Mix
The combination of product lines offered by a company
177
Product Differentiation
Creation of real or perceived product difference
178
Bundling
Grouping two or more goods and/or services for a single price
179
Brand
A name, symbol, or design that identifies the goods or services of one seller or group of sellers, and distinguishes them from the goods or services of competitors
180
Brand Equity
Value of the brand name and associated symbols
181
Brand Loyalty
Degree to which customers are satisfied, enjoy the brand, and are committed to further purchase
182
Brand Manager
A manager who has direct responsibility for one brand or one product line called a product manager in some firms
183
Product Life Cycle
A theoretical model of what happens to sales and profits for a product class over time the four stages of the cycle are introduction, growth, maturity, and decline
184
Target Costing
Designing a product so that it satisfies customers and meets the profit margins desired by the firm
185
Competition-Based Pricing
Strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors' prices
186
Price Leadership
Strategy by which one or more dominant firms set the pricing practices that all competitors in an industry then follow
187
Break-Even Analysis
Process used to determine profitability at various levels of sales. Can be determined by the total fixed costs divided by the price of one unit minus the variable cost of one unit
188
Total Fixed Costs
All expenses that remain the same no matter how many products are being made or sold
189
Variable Costs
Costs that change according to the level of production
190
Skimming Price Strategy
Strategy in which a new product is priced high to make optimum profit when there's little competition
191
Penetration Price Strategy
Strategy in which the product is priced low to attract many customers and discourage competitors
192
Everyday Low Pricing (EDLP)
Setting prices lower than competitors and then not having any special sales
193
High-Low Pricing Strategy
Set prices that are higher than EDLP store, but have many special sales where the prices are lower than its competitors
194
Psychological Pricing
Pricing goods and services at price points that make the product appear less expensive than it is
195
Marketing Intermediaries
Organizations that assist in moving goods and services from producers to business and consumer users
196
Channel of Distribution
A set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path from producers to consumers
197
Agents/Brokers
Marketing intermediaries that bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods
198
Wholesaler
A marketing intermediary that sells to other organization
199
Retailer
An organization that sells to ultimate consumers
200
Telemarketing
The sale of goods or services over the telephone
201
Direct Selling
Selling to customers in their homes or where they work
202
Promotion Mix
Combination of promotional tools an organization uses
203
Integrated Marketing Communication
A technique that combines all of the promotional tools into one comprehensive and unified promotional strategy
204
Advertising
Paid, non-personal communication through various media by organization and individuals who are in some way identified in the advertising message
205
Personal Selling
Face to face presentation and promotion of goods and services
206
Public Relations (PR)
Function that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance
207
Publicity
Any information about an individual, product, or organization that is distributed to the public through the media and that is not paid for or controlled by the seller
208
Sales Promotion
The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities
209
Direct Marketing
Any activity that directly links manufacturers or intermediaries with the ultimate consumer
210
Word-Of-Mouth Promotion
A promotional tool that involves telling other people of products or services that they have purchased
211
Viral Marketing
Any strategy that encourages people to pass on a marketing message to others, creating exponential growth in the messages influence as the message reaches out tho thousands to millions of potential customers
212
Blog
An online diary that looks like a web page but it is easier to create and update by posting test, photos, or links to other sites
213
Podcasting
A means of distributing multimedia digital files on the internet for downloading to a portable media player
214
Push Strategy
Promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise
215
Pull Strategy
Promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they will request the products from retailers
216
Finance
Function in a business that acquires funds for the firm and manages them within the firm
217
Financial Management
Job of managing a firm's resources to meet its goals and objectives
218
Financial Managers
Managers who examine the financial data prepared by accountants and recommend strategies for improving the financial performance of the firm
219
Short-Term Forecast
Forecast that predicts revenues, costs, and expenses for a period of one year or less
220
Cash-Flow Forecast
Forecast that predicts the cash inflows and outflows in future periods. usually months or quarters
221
Long-Term Forecast
Forecast that predicts revenues, costs, and expenses for a period longer than one year, and sometimes as far as five or ten years into the future
222
Budget
A financial plan that set forth management's expectations, and, on the basis of those expectations, allocates the use of specific resources throughout the firm
223
Capital Budget
A budget that highlights a firm's spending plans for major asset purchases that often require large sums of money, like property, buildings, and equipment
224
Cash Budget
A budget that estimates a firm's cash inflows and outflows during a particular period (e.g monthly or quarterly)
225
Operating (Mastering) Budget
Budget that ties together all of a firm's other budgets and summarizes the business's proposed financial activities
226
Capital Expenditures
Major investments in either tangible long-term assets, such as land, buildings, and equipment, or intangible assets, such as, patents, trademarks, or copyrights
227
Debt Financing
Funds raised through various forms of borrowing that must be repaid
228
Equity Financing
Funds raised from operations within the firm or through the sale of ownership in the firm
229
Short-Term Financing
Borrowed funds that are needed for one year or less
230
Long-Term Financing
Borrowed funds that are needed for a period longer than one year
231
Trade Credit
The practice of buying goods and services now and paying for them later
232
Promissory Note
A written contract with a promise to pay
233
Secured Loan
A loan backed by collateral, something valuable such as property
234
Unsecured Loan
A loan that does not require any collateral
235
Line of Credit
A given amount of unsecured funds a bank will lend to a business
236
Revolving Credit Agreement
A line of credit that is guaranteed but usually comes with a fee
237
Commercial Finance Companies
Organizations that make short-term loans to borrowers who offer tangible assets as collateral
238
Credit Profile
A borrower's financial track record in the form of borrowing history
239
4 C's of Credit
A businesses creditworthiness is determined by its character, capacity, capital and conditions
240
Factoring
The process of selling accounts receivable for cash
241
Commercial Paper
Unsecured promissory notes of $100,000 and up that mature (come due) in 270 says or less
242
Term-Loan Payment
A promissory note that requires the borrower to repay the loan in specified instalments
243
Risk/Return Trade-Off
The principle that the greater the risk a lender takes in making a loan, the higher the interest rate required
244
Bond
A corporate certificate indicating that an investor has lent money to a firm or to a government
245
Maturity Date
The exact date the issuer of a bond must pay the principal to the bondholder
246
Interest
The payment the bond issuer makes to the bondholders for the use of the borrowed money
247
Debenture Bonds (Unsecured bonds)
Bonds that are not secured (not backed up its any collateral such as, equipment)
248
Mortgage Bonds
Bonds that are secured (backed up with collateral such as land)
249
Sinking Fund
A reserve account in which the issuer of a bond periodically retires some part of the bond principal prior to the maturity so that enough capital will be accumulated by the maturity date to pay off the bond
250
Stocks (Shares)
Shares of ownership in a company
251
Initial Public Offering (IPO)
The first public offering of a corporation's stock
252
Stock Certificate
Evidence of stock ownership that specifies the name of the company, the number of shares it represents, and the type of stock being issued
253
Dividends
Part of a firm's profits that may be distributed to shareholders as either cash payments or additional shares of stock
254
Common Stock
The most basic form of ownership in a firm; it confers voting rights and the right to share in the firm's profits through dividends, if offered by the firm's board of directors
255
Preferred Stock
Stock that gives the owners preference in the payment of dividends and an earlier claim on assets than common shareholders if the company is forced out of a business and its assets are sold
256
Venture Capital
Money that is invested in are or emerging companies that are perceived as having great profit potential
257
Leverage
Raising the needed funds through borrowing to increase a firm's rate of return
258
Cost of Capital
The rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders
259
Money
Anything that people generally accept as payment for goods and services
260
Barter
The direct trading of goods and services for other goods and services
261
Money Supply
Amount of money the Bank of Canada makes available for people to buy goods and services
262
Overnight Rate
Interest rate at which major financial institutions borrow and lend one-day (or overnight) funds among themselves
263
Prime Rate
Interest rate that banks charge their most creditworthy customers
264
Commercial Bank
Profit-seeking organization that receives deposits from individuals and corporations in the form of checking and savings accounts and then uses some of these funds to make loans
265
Demand Deposit
The technical name for a chequing account; the money in a demand deposit can be withdrawn anytime on demand from the depositor
266
Time Deposit
The technical name for a savings account; the bank can require prior notice before the owner withdraws money from a time deposit
267
Certificate of Deposit
A time deposit account that earns interest to be delivered at the end of the certificate's maturity date; also called a Guaranteed Investment Certificate (GIC)
268
Credit Union
A non-profit, member-owned financial co-operative that offers a full variety of banking services to its members
269
Trust Company
A financial institution that can administer estates, pension plans, and agency contracts, in addition to other activities conducted by banks
270
Non-Banks
Financial organizations that accept no deposits but offer many services provided by regular banks
271
Pension Funds
Amounts of money out aside by corporations, non-profit organizations, or unions to cover part of the financial needs go their members when they retire
272
Electronic Funds Transfer (EFT)
A computerized system that electronically preforms financial transactions such as making purchases, paying bills. and receiving paycheques
273
Debit Card
An electronic funds transfer tool that serves the same function as cheques; it withdraws funds from a checking account
274
Smart Card
An electronic funds transfer tool that is a combination of a credit card, debit card, phone card, driver's license, and more
275
Security
Negotiable financial instrument that represents some type of financial value
276
Stock Exchange
An organization whose members can buy and sell securities for companies and investors
277
Prospectus
A condensed version of economic and financial information that a company must make available to investors before they invest in a security
278
Securities Commission
Government agency that administers provincial securities legislation
279
Stockbroker
Registered representative who works as a market intermediary to buy and sell securities for its clients
280
Diversification
Buying several different investment alternatives to spread the risk of investing
281
Capital Gains
The positive difference between the purchase price of a stock and its sale price
282
Stock Splits
An action by a company that gives shareholder two or more shares of stock for each one that they own
283
Buying Stock On Margin
Purchasing securities by borrowing some of the cost from the borrower
284
Mutual Fund
A organization that buys stocks and bonds and other investments, then sells shares in those pooled securities to the public
285
Exchange- Traded Funds (ETFS)
Collections of stocks share are traded on exchanges but are traded more like individual stocks more than mutual funds
286
Financial Market Infrastructure
A system that facilitates the clearing, setting, or recording of payments, securities, derivatives, or other financial transactions among participating entities; also called a clearing and settlement system
287
Financial Literacy
Having the knowledge, skills, and confidence to make responsible financial decisions
288
Tax Free Savings Account (TFSA)
An investment option into which Canadian residents 18 years of age or older who have a valid SIN number can contribute up to $5,500 annually; the amount contributed as well as the income earned in the account is tax free; even when it is withdrawn
289
Contrarian Approach
Buying stock when everyone is selling or vice versa
290
Term Insurance
Pure insurance protection for a given amount of years
291
Whole Life Insurance
Life insurance that combines pure insurance and savings
292
Variable Life Insurance
A form of whole life insurance that invests the cash value of the policy in stocks or other high-yielding securities
293
Annuity
A contract to make regular payments to a person for life or a fixed period
294
Disability Insurance
Insurance that pays part of the cost of a long-term illness or an accident
295
Umbrella Policy
A broadly based insurance that saves you money because you buy all of your insurance from one company
296
Registered Retirement Savings Plan (RRSP)Q
A federally- regulated, tax-sheltered savings plan designed to encourage Canadians to save for their retirement
297
Retirement Tax Rate
Rate of tax payable on the last dollar earned
298
Will
A document that states how you want your assets distributed, names the executor for your estate, and names the guardian(s) of your chidden (if applicable) when you die
299
Executor
An individual who assembles and values your estate, files your income and other taxes, and distributes assets when you pass away
300
Power of Attorney
A written document in which you appoint someone else to act on your behalf on matters that you specify; this can be made to start immediately, or upon mental incapacity
