Chapter 1 Flashcards
Revenue
amount of money a business takes in before expenses
Loss
When a business’s expenses are more than its revenue
Risk
The chance an entrepreneur takes of losing time and money on a business that may not prove profitable
Stakeholders
people who stand to gain or lose by the policies and activities of a business
Business
Any activity that seeks to provide goods and services to others while operating at a profit
Profit
The amount a business earns above and beyond what it spends on salaries and other expenses
Entrepreneur
A person who risks time and money to start and manage a business
Outsourcing
Assigning various functions, such as accounting, production, security, maintenance, and legal work, to outside organizations.
Non-profit organization
An organization whose goals do not include making a personal profit for its owners or organizers
Quality of life
The general well being of a society in terms of political freedom, a clean natural environment, education, healthcare, safety, free time, and everything else that leads to satisfaction and joy.
Factors of production
The resources used to create wealth: land, labour, capital, entrepreneurship, and knowledge
Business environment
The surrounding factors that either help or hinder the development of business
Regulations
Serve to carry out the purposes of or expand on the on the general laws passed by elected officials
Technology
Everything from phones and copiers to computers, medical imaging devices, personal digital assistants, and the various software programs that make business processes more efficient and productive
Productivity
The amount of output that is generated given the amount of input
E-commerce
The buying and selling of goods and services over the internet
Database
An electronic storage file in which information is kept; one use of databases is to store vast amounts of information about customers
Identity theft
Obtaining personal information about a person and using that information for illegal purposes
Empowerment
Giving front-line workers the responsibility, authority, and freedom to respond quickly to customer requests
Demography
The statistical study of the human population with regards to its size, density, and other characteristics such as age, race, gender and income
Baby-boom echo
A demographic group of Canadians that were born in the period from 1980 to 1995; the children of the baby boomers
Baby boomers
A demographic group of Canadians that were born In the period from 1947 to 1966
Goods
Tangible products such as computers, food, clothing, cars and appliances
Services
Intangible products (products that can’t be held in your hand for example) such as education, healthcare, insurance, recreation, and travel and tourism
Name 5 stakeholders
- Fin. Institutions
- Environmentalists
- Suppliers
- Employees
- Investors
Area of economics concerned with the overall view of the company - rather than individual markets
Macroeconomics
Canada’s Crown Corporation which is in charge of economic surveying for the government
Stats Canada
StatsCan provides information on these three important economic indicators
- Unemployment
- GDP
- Inflation
This survey measured the number of unemployed persons in Canada
Labour force survey
This rate measured the number of employed as a percentage of the population
Employment rate
This rate measured the unemployed as a percentage of the labour force
Unemployment rate
This is the general increase in prices of most essential items over time
Inflation
This index measures inflation
Consumer price index
Demand increases because consumers think that prices will increase
Inflationary psychology
National accounts provides us with this on a quarterly and annual basis
GDP ( Gross domestic product)
National accounts measured the level of business activity which is an indication of this…
Standard of living
This is a short term decline in GDP which indicates a slump in economic activity
Recession
This is a long lived slump in economic activity
Depression
This rate is calculated by dividing the labour force by the total population
Participation rate
This describes a situation when a worker is employed l, but not fully utilizing their skills - or not working full time hours
Underemployed
These people are not actively seeking employment
Hidden unemployed
A type of unemployment that results from a lack of overall spending in the economy
Demand deficient
This is also called “Job search unemployment” (when someone leaves a job in search of a better one)
Frictional unemployment
When people are unemployed because there is not work in their field during a particular time of the the year
Seasonal unemployment
Type of unemployment that results from a mismatching of the demand for and the supply of workers on an occupational or geographical basis
Structural unemployment
When worker see employment insurance as a better alternative to working
Insurance induced unemployment (or sunny corner dream)
This is a type of inflation that occurs when consumers demand more of a product - either because they are making money or they except the price of that product to increase
Demand pull
Type of inflation that results when producers pas additional costs to the consumer - which increase the price of the final product
Cost push inflation
Type of inflation caused by industries raise the prices of their products, even when prices are not increasing in other markets
Structural inflation
Direction flow of money in the economy - from the business sector to households and back again
Circular flow
