Buisness test Flashcards
Production Function
Involves the factor of production. I.e Economic resources that are required to make a product, the product process, and productivity
What are the 5 factors of production
- Land
- Labour
- Capital
- Information-Technology
- Entrepreneurship
What is the definition of LAND
Land = Raw material
Any goods that are used for the manufacturing of other goods
What is the definition of LABOUR
The physical and mental work needed to make and produce any goods or services
What is the definition of CAPITAL
Money invested in the business
What is the definition of INFORMATION-TECHNOLOGY
The use of information and communication technology has an impact on production, marketing, accounting, and human resources
What is the definition of ENTREPRENEURSHIP
The people who bring together all of the factors in production to form their own business
What is accounting?
The process of recording, analyzing, and interoperating the economic activities of a business
What is marketing?
The sum of all the activities involved in the planning, pricing, promotion, distributing, and selling of goods and services to satisfy consumers needs and wants
What are human resources
Involves the activities relating to company employees, relationships, labour, employability schools, careers in business and workplace rights
Management
Involves the activities relating to the planning, organizations, controlling leadership styles, teamwork and ethical behaviour of those who have responsibilities for a business
Whats a need
A need is something you can not live without, you need it to survive.
Examples= Water, Food, Clothes, Hygiene, Education, Shelter
Whats a want
A want is something you desire to have, you do not need it to survive
Examples= Designer clothes, Electronics, Social Foods (restaurants)
What are TYPES OF BUSINESSES
- Service= performs a task (plumber)
- Manufacturing = makes a product (Hershey)
- Retail= Buys and sells products (shoppers drug mart)
- Not for profit= meets the needs of a community
- Non profit= charity motion, they are trying to raise as much money as possible
Maslows Hierarchy of needs
- Psychological needs
- Security needs
- Love and belonging
- Esteem
- Self-actualization
Whats a Psychological need
Psychological needs are the most basic need for a human being. You can simply not live without them.
Examples= Food, Water, Shelter, Health Care, etc
Whats a security needs
Security needs are the feeling of security and safety.
Examples= Steady employment, security cameras, insurance, ect.
Love and belonging
Love and belonging needs are the need for feeling, accepted, loves, and the feeling of belonging.
Examples= Friendship, affection, being social, community, religious groups.
Esteem needs
The need for social recognition, social esteem, and personal worth. Craving the feeling of being better than everyone else. Examples= Having FOMO, buying things because they are trendy and look cool.
Self-actualizing
The need for personal growth, self-awareness, and less concern about other opinions. Example= Doing things for yourself, not because others think it’s cool.
What are the types of businesses
- Service
- Manufacturing
- Retail
- Non-profit
- Not for profit
Whats a service
Service is when someone performs a task
Whats a manufacturer
When someone makes a product
Whats Retail
When someone sells you a certain product
Not For Profit
Not for profit organizations does not make profits for their owner, all of the money made either goes into keeping the organization running, or it will get donated. More for the community, giving back to the community.
Non Profit
Non-profit organizations are charities where money is raised to make a certain goal. They try and reach for a certain amount of money, but it will not benefit the business or the members of the business. It benefits people outside of the business.
Whats a Fad
In a fad, you have your intro, you have your growth, but there is no maturity stage. It just goes directly in a decline. (think of a graph)
What’s a trend
A trend is different than a fad because it has more of a lasting effect on the marketplace
What’s a consumer
A consumer is a person who uses the product (consumes it)
What’s the role of a consumer
- Companys that attract more consumers can make more sales and more profit
- Consumers also decide when a product will no longer be produced. When no one wants it anymore, it becomes obsolete.
- Consumers influence the price
- Companies used to have pricing power (they could charge all they want, but now with competitors, they should have the better price to be able to make more sales.
Whats a Customer
A person or organization that buys goods or services from a store or business.
Whats Supply
Represents willingness to sell at a certain price
Relationship between price and the quality supplied (amount of a good available)
Whats Demand
Represents willingness and ability to buy at a certain price
Relationship between price and quantity demanded
(the quantity of goods or services that the consumers are willing and able to buy at a particular price
Supply Curve
The higher the price of the product, the more the producer will supply
Positive relationship with price, the curve is upward sloping
Demand Curve
- Inverse relationship- Price is down- consumer buy will increase
- The higher the price of the product, the fewer consumers will demand
- Negative relationship with price, the curve is downward sloping
Law of demand
Usually, consumers are more likely to increase demand, if the price is lower (more people are more likely to buy something if it’s on sale)
Law of Supply
Usually, as prices increase, producers will increase the number of goods they supply
4 C’s of Demand
- Changing consumer income (people might not be able to afford certain products anymore)
- Changing consumer taste (people might not like certain things they liked a year ago)
- Changing expectations for the future (for the future, the new age might prefer cleaner products. At the beginning of the pandemic, people started buying toilet paper, water because they didn’t know what was going to happen with the future)
- Change in populations (older populations demand more than younger ones)
5 C’s of Supply
- Change in number of producers
- Change in price (if price decreases, they might stop making it)
- Change in technology (can reduce costs of production and people supplying)
- Change in production cost
- Change in future expectations (prediction in taste/demands of consumers. What they think is trendy they might choose to produce more of because there will be more of a demand)
Whats a good
An item that can be seen and touched.
Examples= Fast food, cars, clothing, etc
Whats a service
A business that provides a service to satisfy the needs and wants of consumers.
Examples= Pedicure, barbershop, salon, etc
Substitute goods
A good/service that can be used instead of another good or service, which causes a change in demand.
Examples= Milk—- Almond Milk
Rice—- Cauliflower Rice
Complementary goods
Goods that are used together or related goods where the use of one increases the use of other
What are Values
Values are abstract ideas that shape individuals think and behaviour- a moral compass
People that shape you are family, friends, and religion
What is Ethics
The study of moral obligation the distinction between what’s right and wrong
Types of misconducts or unethical behavior
-Pressure
-Fear
-Greed
-
Common causes of unethical behavior
- Pressure
- Fear (fear of being fired)
- Greed
- Convenience (easy steal, your gonna steal, kinda right in front of you)
Common Misconduct In Organization
- Misrepresenting hours worked
- Employee lying to supervisors
- Management lying to employees, customers, vendors, or the public
- Misuse of organizational assets
- Lying on reports/falsifying records
- Sexual harassment
- Stealing/theft
- Accepting or giving bribes or kickbacks
- Withholding needed information from employees, customers, vendors, or the public.
Causes of ethical behavior
- Following boss’s directives
- Being overly aggressive business/financial objectives
- Helping the organization survive
- Meeting schedule pressures
- Be a team player
- Rationalizing that others do it
- Resisting competitive threats
- Advancing your own career (what’s it gonna take for you to move up in the company)
Whistleblower, why don’t they snitch
- Didn’t believe the action would be taken
- Feared retaliation from mgmt
- Didn’t trust the confidentiality
- Feared not being a team player
- Feared retaliation from co-workers
- Didn’t know who to contact
- Nobody cared, why should I?
Ethical tips
- Develop a code of ethics
- Communicate code and break it into culture top-down
- Treat ethics as a process
- Create an open line of communication
- Set goof examples
- Educated employees
- Value forgiveness
What is a code of ethics
A code of ethics is a guide of principles designed to help professionals conduct business honestly and with integrity
What is fraud
Fraud is a crime of lying or pretending. Some businesses mislead consumers and trick them into buying their product or service.
What is embezzlement
Theft or misappropriation of funds placed in one’s trust or belonging to one’s employer.
Whats insider trading
When you tell someone something about your business that is unreleased to the public. An example would be stocks
What is Fair trade
The practice of helping producers in developing countries bypass the middlemen so they can sell their products for a fair profit.
What is TransFair Canada
TransFair Canada is a national non-profit certification and public education organization promoting Fairtrade certified products in Canada to improve the livelihood of developing world farmers and workers.
Different areas of CSR
- Corporate governance and transparency
- Human rights
- Labour
- Social environment (community links, social action, and cooperation for development
- Environmental impact
Types of Fair Trade products
- banana
- coffee beans
- sugar
- tea
- cotton
- honey
- oranges
Companies in Canada that offer fair trade products
- Ben and Jerrys
- Bridehead (second cup)
- House of Mandela wines
- Kicking horse coffee
- En’Tyce cosmetics
Whats a profit
A profit is the money left over after all of the expenses
Whats an Expense
Expenses are the money spent to keep the business running.
