Business Exam Flashcards
1
Q
What is a need
A
A need is something essential to life, food water shelter
2
Q
What is a want
A
Something that is not essential to life, increases quality of life or makes life more enjoyable
3
Q
What is a good
A
A tangible item that you can sell in exchange for money, stock/inventory etc (eg, makeup, clothes, food, technology, furniture)
4
Q
What is a service
A
Not tangible, something that requires skill level, personal labour (eg, hairstylist, doctor, masseuse, plumber, accountant)
5
Q
What is a luxury good?
A
Something not essential, expensive high quality
6
Q
What is an essential good
A
Absoloutly nessescary for life food water shelter
7
Q
What is a not for profit organization
A
Provide g/a to benefit a community (not always) all money earned from activities/donations gets invested back in to fund business.
8
Q
What is a nonprofit organization
A
A organization purely made to benefit public good/raise money for it. Objective is to earn profit. Has paid employees unlike a NFPO
9
Q
What is an economic resource
A
Factors of production, the inputs into making a good/service
10
Q
What are the 3 economic resources
A
1.Human Resources (Labour that goes into making it)
2. Natural resources(materials that come from earth,air,water)
3. Capital resources(man made things used to create the product)
11
Q
What are the 6 factors that influence buying?
A
- Income & price
- Customs & habits
- Safety
- Promotion
- Trends
- Status (conspicuous consumption)
12
Q
What is conspicuous consumption?
A
Bragging about purchases to fit in with a group or impress others
13
Q
What is a public sector?
A
A government owned and controlled business (eg, schools, hospitals, public utilities)
14
Q
What is a private sector?
A
A private sector is a business owned and controlled by an individual, group, or business entities. (Eg, retail, real estate, Fast food like mcds)
15
Q
What is privatization?
A
When public companies are sold to private sectors
16
Q
What are 2 reasons privatization occurs
A
- Government shuts it down and only relies on private sectors
- Government sells assests to private companies
17
Q
What is P3 and what are the advantages of it?
A
P3 is when public and private companies come together to share resources and enter business together.
- Share responsibilities/risks
- Handle bigger projects
- Private benefits from influence of public
18
Q
What are the 5 forms of ownership
A
Sole proprietorship, partnership, corporation, franchise, cooperative
19
Q
What is a sole proprietorship?
A
A business owned by one person
20
Q
What is a partnership and the 2 different types of partnerships?
A
A partnership is a business owned by 2 or more people who share the profits and responsibilities.
- General partnership (full control unlimited liabilities)
- Limited partnership (Almost no control, limited liabilities)
21
Q
What are the 4 types of corporations?
A
- Public corporation
2.Private corpoation - Crown corporation (Things for Canada eg Canada post)
- Municipal
22
Q
What does obsolete mean?
A
Unpopular in the future, no longer in use or popular
23
Q
What is supply?
A
Quantity of a g/s
24
Q
What is demand?
A
Consumers desire for g/s
25
If the supply goes up what happened to demand?
Demand goes down and price goes up
26
If demand goes up what happened to supply and price
Supply goes down and price goes down
27
What are the 5 traits of a successful business person, explain them.
1. Desire for control
2. Vision & Passion
3. Perseverance
4. Teamwork
5. Risk taking
28
What is ethics?
Ethics is the study of right and wrong. Ethics explains the behaviour of individuals based on morals and values.
29
What are the 6 steps to making an ethical decision?
1. Identify the issue
2. List important facts
3. List who is affected
4. Explain what each affected person would want you to do
5. List 3 alternatives (best case, worst case, how each person is affected etc)
6. Take action
30
What are the 6 different ethical corporate laws?
1. Health and safety
2. Anti-discrimination
3. Harassment
4.Environment responsibility
5. Accessibility
6. Labour laws
31
What does CSR stand for?
Corporate social responsibility
32
What is CSR?
CSR values being socially responsible to customers, employees, shareholders, and community. They are people that fund charities, football games, community events etc
33
What are the 6 principals of the CSR?
1. Safe & healthy work environment
2. Protect the environment
3. Fair labour practices
4. Truthful advertisements
5. Donating to charity
6. Avoid price discrimination
34
What are the 5 P’s of international business?
1. Product
2. Price
3. Proximity (place)
4. Promotion
5. Preference
35
What is a domestic transaction?
When the production and sale of a product takes place in the same country.
36
What is an international transaction?
When the production of a product takes place in a different country than the sale.
37
What is an import and give examples of things that get imported to Canada.
An import goods that flow into the country. Some of these include, raw materials, processed materials, semi-finished goods, manufactured products.
38
What is an export?
An export is goods flowing out of the country
39
What is balance of trades?
The relationship between a countries total amount of imports and exports
40
When does a surplus occur?
When a countries exports are greater than imports.
Exports>imports
41
When does a trade deficit occur?
When a country has more imports than exports.
Imports>exports
42
When an exporter deals directly with an importer is called?
Direct exporting
43
Dealing with an intermediary than the importer is called
Indirect exporting
44
Typically what businesses use indirect and direct exporting and why?
Established businesses use direct importing as they have the resources to build offices in forgein countries.
Newer businesses use indirect exporting as they do not have to resources to go abroad.
45
Who is Canadas top trading partner and why?
United States
1. Same language
2. Close in proximity (cheap shipping)
3. Same language
4. Same trends and tv shows
5. X10 the population
46
What’s the formula for deficit?
Imports - exports
47
What’s the formula for surplus
Export - import
48
What is absolute advantage?
Absolute advantage is a g/s that can only be provided in Canada. Canada can produce it and price it better than any other country. Countries pay to have it shipped to their countries.
49
What’s comparative advantage?
Specializing in one thing over the other.
For example better at production g clothing rather than food.
50
What are the trade barriers?
Tarifs, NonTarifs, excise tax, embargo, quotas, landing cost
51
What is tarrif?
A Tarif is a tax out in place by one country for importing goods into another country.
Eg( custom duties, tax on certain types of imports, $6 for 100kg)
52
What is a nontarrif?
Standards for imports goods/services. Usually set very high so that foreign conksbies cannot enter market.
Eg, Canada only excepts 51% milk bc they value real milk
53
What is an embargo
A country completely stopping imports of a certain product.
Reasons for this include to preserve employees jobs, safety etc
54
What is a quotas?
Limits set by government on quantity of certain goods can be imported during period of time.
Eg only 500,000 metric tons of steel per year
55
What is landed cost?
The total cost of delivering a good to your door step. Includes, manufacturing fees, delivery fees, vendors, transportation, duties, taxes, broker fees etc.
56
What is prohibited restricted goods and what are some of Canadas?
Countries that ban certain goods in their country.
Canada prohibits narcotics, some weapons, some second hand vehicles and obscene print material.
57
What is custom duties?
Countries that import goods charge a custom duty on goods.
Eg going to US for 48 hours, you are allowed $800 worth of items
58
What is an exsice tax?
Tax on manufacture, sale or consumption of products within country.
59
What are the 8 trade agreements?
FTA, NAFTA, CUSMA, GATT, EFTA, CAFTA, APEC, G7
60
What is FTA?
The free trade agreement. Agreement between 2+ countries to facilitate trade by eliminating trade barriers.
61
What is GATT?
General agreement on Tarifs and trades. Its purpose is to promote international trade by reducing barriers.
62
What is EFTA?
European free trade agreement. Made up of 4 countries. Switzerland, Norway, Liechtenstein, Iceland.
63
CAFTA (-DR)
Central American free trade agreement (Dominican Republic). Made up of 7 countries. (US, Costa Rica, DR, el Salvatore, Guatemala, Honduras, Nicaragua.
64
What is APEC?
Asia-pacific economic cooperation. Their purpose is to promote sustainable economic growth, trade investments, prosperity.
Consists of 21 countries.
65
What is G7
The group of 7. Consists of Canada, US, Japan, Italy, Germany, UK, France. The European nation (EU) is a non-enumerated member.
66
What is NAFTA and purpose?
North American free trade agreement.
Mexico Canada US
67
What are the pros of NAFTA?
GDP of all 3 countries increased
Creates more jobs, population combines,
Eliminates duties and restrictions
68
Issues with NAFTA?
Keeps us dependant on the US
Trade disputes, sustainability
69
What changed in CUSMA?
There is now a 3rd party to help settle disputes
Allows more exports of American commodities
Farmers gave up 3.6% of market, gov will compensate for it.
If one country wants to get more partners in a non-free trade market, all 3 countries must agree.
70
What are the 3 names for CUSMA?
CUSMA, USMCA, T-MEC
71
What me the formula for currency exchange?
C= a x b
C = money after exchange
A = money you have
B= exchange rate
72
Change 1,500 USD make it EUROS
Exchange work 0.7618
1,500 x 0.7618
= 1,142.70 EUR
73
What is free trade market
When the government does not interfere with trades and does not put trade barriers on trades
74
What is the WTO?
World trade organization, they are a globally international organization that deals with the rules of trades between nations
75
What is WBO?
World bank organization. They provide loans to the governments of middle-low class countries. They have 189 countries apart of this organization.
76
What is IMF?
International money fund. They work to science sustainable growth and prosperity. There are 190 countries apart of this organization.
77
Who focuses on financial stability?
IMF, WTO, WBO
The IMF focused on financial stability
78
Who focuses on long-term economic develoment and poverty reduction?
WBO
79
What are the 6 factors of production?
1. Natural resources
2. Raw materials
3. Capital (liquid+nonliquid)
4. Labour (physical and mental)
5. Information
6. Management
80
What are the 4 steps of the production process?
1. Purchase
2. Processing
3. Quality control
4. Grading
81
What is grading?
Graded products are checked for the size and quality and are compared with fixed standards for each product.
Eg eggs, fruits, veggies, gasoline, meat, grains
82
What are 4 ways to improve productivity?
1. Training
2. Capital Investments
3. Invest in technology
4. New inventory systems
83
For your g/s to meet certain standards like if your organization, suppliers, supply chain etc have decent working conditions, good business ethics and fair wages is the definition for…
Ethical sourcing
84
What is JIT?
Just in time is an inventory management method. It means to recieve supplies only as they they are needed. The main objective is to reduce inventory.
85
What are pros of JIT?
-cost efficient production
-improved productivity
-prevents over production
86
What are some CONS of JIT?
-order issues; if it doesn’t come on time
-time pressure
-if something is defected or breaks there are no backups
87
What is kaizen?
Kaizen is change for the better. It is continuous improvement.
88
What are the 7 steps of the kaizen cycle?
1. Involve employee
2. Identify problem
3. create a Solution
4. Test solution
5. Analyze soloution
6. Standardize and adopt
7. Repeat cycle
89
What is jidoka?
Jidoka is a manufacturing concept that means machine can stop themself when they catch a defect or problem.
90
What is planned obsolescence?
Intentional design of products to have limited lifespan.
91
What is perceived obsolescence?
Creating something that will go out of style/unpopular in the future. Creating it with the intend of perceiving it out of style. Eg Apple makes new laptops every year.
92
What is a supply chain?
A supply chain is how things are made and delivered to you.
93
What are the 5 functions of a manager
Planning, controlling, organizing, directing, staffing
94
Describe the 3 leadership styles
1. Autocratic- do x
2. Laissez-faire- do x or y as u see fit
3. Democratic- which is better x or y?
95
What are the 3 levels of management?
Upper management
Middle management
Lower management
96
What does the upper management do?
Upper management sets long term goals like products, markets, business organization. They have jobs like CEO
97
What does middle management do?
Middle management interprets plans and sets actions, they have jobs like plant managers.
98
What does lower level management do?
Lower level management implements plans. They have jobs like shift manager, team leader
99
What does a purchasing mgr do?
Negotiates with the supplies for a delivery of raw materials and other equipment.
100
What does a productions mgr do?
Processes raw materials to end products, arranges maintenance, shift scheduling etc
101
What does a marketing and distribution mgr do?
Sale strategies, ensure that products are sold
102
What does a research and devoloment mgr do?
R&D MGRS think of new products and develop new ways to produce products
103
What do finance managers do?
Usually accountants, sets budgets for businesses, keeps track of spendings
104
What is a double loss?
When an employee is sick and is unable to work, employers loose out of productivity and financial costs like temporary staff and overtime pay.
105
What is sick pay?
Sick pay is a policy created by employers to pay employees when they are sick or injured an unable to work. The purpose of this is so that they can recover without loss of income.
106
What’s a wellness program, give 3 examples.
Wellness programs are initiatives set by employers to promote mental health and well being of employees. They do this through activities , resources, support systems and policies.
3 examples of this are fitness classes, nutrition guidance and mental health support programs.
107
What law governs health and safety in the work place?
OSHA - occupational safety and health act.
108
What precautions should be taken in the workplace?
Using your PPE.
109
What is PPE?
Person protective equipment. Equipment that your employers gives you to provide a safe workplace.
110
What is WHMIS?
Workplace hazardous material information system. WHMIS provides information about safe use of hazardous materials and equipment in the workplace.
111
What are the 4P’s and 2 C’s?
product price place promotion
customer competition 
112
What are two ways to measure the impact of marketing?
Sales and consumer reaction to brand
113
What is brand equity? 
Brand equity is the value of your brand on the market place 
114
What are the five stages of the product lifecycle?
Intro, growth, maturity, decline, decision point 
115
Describe the introduction phase 
Product gets launched first few people buy your product 
116
Describe the growth phase
Word gets out sales increase in competitors Enter the game.
117
Describe the maturity phase
Constant sales, at a peak, competitors, brand equity is at its highest, most profit made 
118
Describe the decline phase
Sales decrease inevitably
119
Describe the decision point phase
Decide how to get back in the game, new, marketing, deals, discounts, reposition brand
120
What is a FADS?
FADS is a product that is extremely popular for a very short amount of time
121
What is a niche?
A niche is a very specific type of market and it has very few competitors
122
What is seasonal?
Seasonal is when products are very popular only during a certain season. E.g. candy canes during winter.
123
Name the five different types of product lifecycle graphs
Seasonal/fashion, FAD, boom, revival, bust
124
What is an elevator pitch?
A short description of of product/pitch
125
What are the five types of survey questions? Close ended
Multiple-choice, category(what is your gender, male, female,) numerical (answer must be a number)
Likert scale, ordinal (ranks importance 1-5)
126
What are the three channels of distribution? Describe each. 
Direct, indirect, specialty
Direct: businesses that make the product sell directly to consumers
Indirect: businesses that make the product sell to an intermediary, who sells to consumers adds to cost.
Specialty: consumers that buy products not from a retail store EG vending machines.
127
What is intensive distribution?
Intensive distribution is a form of target market coverage. It means that your marketing is everywhere.
128
What is selective distribution?
Selective distribution is a form of target market coverage. It means that your marketing is in specialty retailers 
129
What is exclusive distribution
Exclusive distribution is a form of target market coverage, and it means that your marketing is very limited 
130
Define marketing research
Marketing research is the collection of information relevant to marketing 
131
What is consumer research?
Consumer research tells us what type of products customers want, and how successful they will be
132
What is market research?
Market research identifies what groups of people would purchase this product 
133
Motivation research
Motivation research tells us why consumers would purchase our product based on emotional and rational components 
134
What is pricing research?
Pricing research determines how competitive the price can be
135
What is competitive research?
Competitive research identifies what our competitors are doing and what their weak spots are 
136
What is product research?
Product research determines details of products, and what impact it has on the market 
137
What does advertising research?
Advertising research identifies the most impactful way to get a message about a product across to the consumer
138
What is secondary data?
Secondary data is information collected from other sources
139
What is primary data?
Primary data is information that you have collected yourself. This can be through surveys or interviews.
140
What are the two functions designers use when creating products? 
Form and function
Form determines the shape colours patterns, materials used
Function determines what the product is used for
141
What is integrated marketing?
Using various ways to share a consistent message about a brand
142
What is entrepreneurship?
Starting and running your own business 
143
What are some characteristics of an entrepreneur?
Risk taker, perceptive, curious, imaginative, persistent, goalsetting, hard-working, self-confident, flexible, and independent 
144
What is the difference between an invention and an innovation? 
Inventions are a completely new creation. Innovations are changes to something that already exists like an iPhone. 
145
What is idea driven and market driven
Idea driven is when entrepreneurs start with the idea first market driven is when entrepreneurs look for consumer base first
146
What are three benefits of a saving plan?
Earning interest keeping money, safe insured against loss 
147
Define interest
Interest is something you receive overtime for letting others borrow your money 
148
What is the difference between simple interest and compound interest?
Simple interest is solely based off the principle compound interest is calculated on the principal plus the interest earned
149
List three reasons why people save
Emergency needs short-term goals, long-term goals and future needs
150
What is the formula for simple interest?
I = PRT
151
What is the formula for compound interest?
A= P(1+i)^n
152
What is a creditor and a debtor
Creditor: person that sells loan on credit
Debtor: person that receives loan on credit
153
Name three things people buy with credit
Houses, cars, groceries
154
Provide three examples of credit
Credit cards, charge accounts, installment sale credit, consumer loans
155
Provide three advantages and three disadvantages of credit cards
Three advantages: credit score goes up, instant enjoyment, convenience
Three disadvantages: credit cost, impulse purchases, over buying
156
What is an annual report?
An annual report is a report, published by public companies that displays their financial position
157
What is an income statement?
Financial statements that show a businesses profitability over a period of time, like a movie
158
What does an income statement include for service businesses?
Revenue and expenses
159
What does an income statement include for merchandising/retail business?
Revenue, expenses, cost of good sold
160
What are the four sections on an income statement?
Revenue, expenses, cost of good sold, net profit
161
What is a balance sheet?
A balance sheet displays the financial position of a business on a specific day, like a snapshot
162
What are the three sections of a balance sheet?
Assets, liabilities, owners equity
163
Describe the different types of assets and liabilities
Current assets: assets that can be spent within a year, easily sold for cash
Long-term assets (capital): assets kept for a long time, furniture, equipment, buildings.
Current Liabilities: paid within a year
Long-term liabilities: takes longer than one year to pay
164
What is equity?
Assets left over after deducting liabilities
Formula: total assets- total liabilities
165
What is working capital
Indicates whether a business is able to pay their short-term debts using its short-term assets (the number must be positive)
166
What is current ratio?
Shows how many dollars of liquid assets a business has for every dollar of short-term debt
167
What is an acceptable ratio?
2:1
Low ratio: signifies businesses cannot pay short-term debts on time
High ratio: signifies businesses have too much money tied up into assets
168
What makes a balance sheet balanced
Assets= liabilities + owners equity
169
What is a cash flow statement
Cash flow statements display how much cash is inflowing and out, flowing through business overtime, like a movie
170
What is projected cash flow
Businesses often create projected cash flow to predict how much cash they will receive, and spend in a period of time
171
Name three common sources of cash coming in
A/R, loans, selling equipment, interest from investments
172
Name three common sources of cash going out of a business
Rent, paying employees, A/P, insurance, new equipment
173
How can you tell if a business is successful just by looking at its income statement?
Rate of return on net sales
Net profit/total revenue X 100
This indicates the portion of business sales that are kept as profit
174
What is accounting?
Accounting is a process used by organization that keeps track of the money that comes in and out of a business
175
When a company pays an employee what happens to expenses and cash?
Expenses goes up
Cash goes down
176
What happens when a company purchases a computer?
Cash goes down
Assets go up
This is called a transaction
177
What is a bookkeeper?
A bookkeeper is responsible for recording all transactions
178
Describe service businesses
Requires simplest form of accounting
Do not have inventory, do not sell tangible products
179
Describe retailing/merchandising businesses
Sell, tangible items, have inventory
Buy inventory on credit
Amount of inventory sold is called cost of good sold
180
Describe a manufacturing business
Most complex form of accounting
Three types of inventory and direct labour
181
What are the three types of inventory and direct labour in a manufacturing business?
Raw material inventory
GIP: goods that are partially finished inventory
Finished goods inventory
Direct labour
182
What’s a drawee?
Bank or entity directed to pay money. (Bank)
183
What’s a payee?
The person receiving the money
184
What’s a drawer?
The person or entity writing the check (sending the $$)
185
What is intellectuon property?
Legal rights protection creations of the mind
186
What is a trademark?
Protects name, symbols, logos, slogans
187
What is a patent?
Protects an idea/ invention. Up to 10 years from filing
188
What’s a copyright?
Copyrights protect people from copying your idea. Protect music, art, literature
189
What are the phases of the business life cycle?
1. Peak
2. Recession
3. Trough (depression)
4 . Recovery
5. Expansion
