Chapter 1 Flashcards
Business
An organization that strives for a profit by providing goods and services desired by its customers
Goods
Tangible items manufactured by businesses
Services
Intangible offering of businesses that can’t be touched or stored
Standard of living
A country’s output of goods and services that people can buy with the money they have
Quality of life
the general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time
Risk
the potential for losing resources, most commonly time and money, or otherwise not being able to accomplish an organization’s goals
Revenue
The money a company earns from providing services or selling goods to customers
Costs
Expenses incurred in creating and selling goods and services
Profit
the money left over after all expenses are paid
Not-for-profit organization
An organization that exists to achieve some goal other than the usual business goal of profit
Transfer payment
Payments made to the provinces and territories by the federal government to help to deliver required services such as health and education, and to help equalize the wealth across Canada
Patent
A form of protection (limited monopoly) established by the government for inventors; it gives an inventor the exclusive right to manufacture, use, and sell an invention for 20 years
Copyright
A form of protection established by the government for creators of works of art, music, literature, or other intellectual property; it gives the creator the exclusive right to use, produce, and sell the creation during the lifetime of the creator and extends these rights to the creator’s estate for 50 years thereafter
Trademark
the legally exclusive design, name, or other distinctive mark that a manufacturer uses to identify its goods in the marketplace
Bankruptcy
The legal procedure by which individuals or businesses that cannot meet their financial obligations are relieved of some, if not all, of their debt
Deregulation
The removal of rules and regulations governing business competition
Tort
A civil or private act that harms other people or their property
Consumerism
A movement that seeks to increase the rights and powers of buyers vis-a-vis sellers
Product liability
The responsibility of manufacturers and sellers for defects in the products they make and sell
Strict liability
A concept in product-liability laws under which a manufacturer or seller is liable for any personal injury or property damage caused by defective products or packaging that does not meet industry standards
Cartel
An agreement between enterprises to lessen competition
Monopoly
A situation where there is no competition and the benefits of a free market are lost
Income taxes
Taxes that are based on the income received by businesses and individuals
Property taxes
Taxes that are imposed on real and personal property based on the assessed value of the property
Payroll taxes
Income taxes that are collected by the employer and remitted to the federal government, usually in the form of a deduction from the employee’s pay
Sales taxes
Taxes that are levied on goods and services when they are sold; calculated as a percentage of the price
Excise taxes
Taxes that are imposed on specific items such as gasoline, alcoholic beverages, and tobacco
