Business Fundaments

Question 1

People who buy your product

Aka customers

Answer 1

Consumers

Question 2

One’s income after money is taken off for income tax etc.

Both terms

Answer 2

Net income

Disposable Income

Question 3

The “law” that states the price of a product is affected by how much is available and how much people want the product

Answer 3

The Law of Supply and Demand

Question 4

A.) Term for how badly customers want a product

B.) when it is up what is likely to happen to the price

C.) when it is down what is likely to happen to the price

Answer 4

A.) Demand

B.) up

C.) down

Question 5

What does EI stand for

Answer 5

Employment Insurance

Question 6

When a product is no longer available because it has become outdated

Answer 6

Obsolete

Question 7

Another term for net income

Answer 7

Disposable Income

Question 8

Money taken off your pay for things like income tax, CPP, EI etc

Answer 8

Deductions

Question 9

Businesses relying on each other and relying on customers

Answer 9

Interdependent

Question 10

Business that makes a product

Answer 10

Producer

Question 11

Money made by the company after all expenses have been paid

Answer 11

Profit

Question 12

Businesses that have control over what to charge for a product

Answer 12

Pricing Power

Question 13

How much the price of a product can be increased before people won’t buy it

Answer 13

Elasticity / Elastic

Question 14

5 step procedure to use to help you with some of the more difficult choices you will have to make

Answer 14

Decision Making Model

Question 15

When customers have influence over the types of products sold and what is charged

Answer 15

Consumer purchasing power

Purchasing power

Question 16

A.) Term for how much of a product is available to buy

B.) when it is down what happens to the price

C.) when it is up what happens to the price

Answer 16

A.) Supply

B.) up

C.) down

Question 17

When business expenses are covered but no profit is made

Answer 17

Break Even Point

Question 18

Bills and other items the company has to pay for

Answer 18

Expenses

Question 19

Goods or items that can been seen or touched

Answer 19

Tangible

Question 20

What does CPP stand for

Answer 20

Canada pension plan

Question 21

Type of competition between different brand names of similar items

Answer 21

Direct Competition

Question 22

Type of competition between goods or services that are not similar to each other

Answer 22

Indirect Competition

Question 23

When you rent an apartment, heat, electricity, and water bills are examples of this

Answer 23

Utilities

Question 24

Term for money coming into the business

Answer 24

Revenue

Question 25

Having two or more businesses under one roof, usually to reduce costs

Starbucks and Chapters are examples of this

Answer 25

Co-Branding

Question 26

Company is able to pay it’s debts and meet its financial obligations

Answer 26

Solvent

Question 27

3 Factors of Production

A.) which is also called “labour” they are the people who make the products

B.) which is raw materials to make the products

C.) which includes buildings, equipment, tools, trucks, factories

Answer 27

A.) Human Resource

B.) Natural Resource

C.) Capital Resource

Question 28

Income left after all your bills are paid

Answer 28

Discretionary Income

Question 29

Your Income before money is taken off

Answer 29

Gross Income

Question 30

When something is worth money it is said to have this kind of value

Answer 30

Monetary Value