chapter 1 Flashcards
what are goods ?
tangible “products” → touch and see
what are services ?
intangible “product” → ie. car insurance, feeling of a good vacation
what is a business ?
any activity that seeks to provide goods and services to others while operating at a profit:
what is the equation for a successful ( or not ) business ?
Revenue - cost = profit (+) OR loss (-)
*loss is a business is normal for the first couple months however after a certain time it becomes a loss ( to the higher extent )
What is success ?
business is finding a need ( or want ) for some goods or services and filling that need
* clients above all *
what is a entrepreneur and serial entrepreneur ?
person who risks time and money to start and manage a business
serial entrepreneur : launch multiple business
What is profit ?
the amount of money a business earns above and beyond what it spends for salaries and other expenses
not all business make a profit which is why starting one is RISKY
what is a “ standard of living “
refers to the amount of goods and services people can buy with the money they have
what is “quality of life “
refers to the general well being of a society
what is a stake holder
those who stand to loose or gain ( own the business )
what is a share holder ?
someone that has an interest in the company ( own a piece )
what are all the parts in a typical Canadian business ? what’s do they want ?
Customers → want value
Employees → want security
Stockholders → want returns
Suppliers → want to be paid
Dealers → want support
Bankers → want return
Community groups → want equity ( sustainability )
Governments → want compliance
what are the 3 types of commerce transactions /
B2C, B2B, G2C
What is Offsourcing, Offshoring and insourcing ?
Outsourcing : contracting with other companies to do some or all of the functions of a firm such as production or accounting
*paying one company instead of ie. 3 employees
Insourcing: assigning various functions ( that were outsourced ) to employees of the company
*having those ie. 3 employees
Offshoring : entails sourcing part of the purchased inputs outside of the country
*paying a company for outsourcing OUTSIDE of the country the is business in
What is a social entrepreneurs ?
people who use business principles to start and manage non-profit organizations and help countries with their social issues ( ie. microlending )
what are the two ways to succeed in business ?
Work within a company and rise to the top
The advantage of working for others is that somebody else assumes the entrepreneurial risk and provides you with benefits
2 ) start your own business
When you consider Canada’s wealthiest citizens, you will find that they arrived at their wealth as a result of this entrepreneurial spirit
what are the 5 factors of production ?
- Land (natural resources)
- Labour (workers)
- Capital (physical assets not money)
- Entrepreneurship
- Knowledge
what is a business environment and what are the 7 environments ?
Consists of the surrounding factors that either help or hinder the development of the business
1) the legal environment
2) the economic environment
3) the technological environment
4) the social environment
5) the competitive environment
6) global environment
7) ecological environment
1 ) Legal And Regulatory Environment :
-Regulations : laws and rules ( made by politicians )
-Affects how the business operates
-Exist to protect both the consumer and the business
-Start a business if the risk of losing their money is not too great
-Freedom of ownership
-Contract laws
-Elimination of corruption
-Governments can do a lot to lessen the risk of starting and running a business through laws
2 ) Economic Environment
-Relates to income, expenditures ( money spent on business ) that affects the cost of running it
-Business review the results of major economic indicators such as consumer spending, employment levels, and productivity
-Tradable currency
-Minimum taxes and regulation
-Imports and exports
-Employment levels and productivity
-Foreign exchange : movement of a country’s currency relative to other currencies
-Degree of entrepreneurship - the government owns most businesses and
there is little incentive for people to work hard or create a
profit
3 ) Technological Environment
-Technology refers to invention and innovations from applied science or engineering research ( bar codes, database etc. )
-The use and applications of tech AFFECTS productivity
-Productivity : amount of output you generate given the amount of input
-Effectiveness : producing the desired result
-Efficiency : producing goods and services using the least amount of services
what an e business ?
Refers to a wide range of business activities on the web from simple posting of product photos to B2B marketplaces
what’s e commerce ?
- refers to the websites that allow transactions so that customers can buy product online
- Generally is considered a subset of e-business
- A consequence of millions of people using web-based content is the rise in risks associated with personal security ( identity theft )
what is social media marketing ?
social networking is used to connect and communicate with current and potential customers ( youtube, facebook etc. )
