definitions Flashcards
Profit
income ($) left after costs and expenses are paid.
Profit Formula
Profit (or loss) = revenue - expenses
Solvent/Solvency
The business is solvent when debts are paid and financial obligations are met.
Profit vs non-profit organiziations
Non-Profit Organizations
1. Primary motive is to raise funds for a specific goal so as to help people in a community.
2. Only charities and charitable organizations are called non-profits.
Profit organizations
1. Charges fees for goods and services.
2. Uses surplus (extra) funds to improve its goods and services (but does not distribute profits to members)
small and medium-sized businesses
- Employ fewer than 500 people each.
- Account for over one million businesses in Canada.
- Provide jobs for more than 60 percent of the Canadian workforce.
5 types of business ownership
sole proprietorship, partnership, cooperative, corporation, franchise
decision-making process
- Determine what decision has to be made.
- Identify the alternatives.
- Evaluate the advantages and disadvantages of each alternative.
- Make a decision and take action.
- Evaluate the decision.
Businesses pricing power v. consumers’ purchasing power
Producer v. consumer
economist
marketplace
obsolete
types of economic resources
interdependent/interdependence
law of supply
