Exam Review Flashcards
What is a fiscal year
12 consecutive months, they do not need to be starting in January
What is gross income
The amount of salary before deductions are made
What is net profit
Profit left after deductions are made
What is an innovation
Improving or adding on to something that already exists
What is invention
Creating something new
What is a need
Things you must have in order to stay alive for example air, food and shelter
What is a want
Things that are extra in your life. You don’t need them to survive but they make your life more pleasant
What is a fad
A craze people take up quickly and then drop it just as quickly
What is budgeting
A plant that has developed to help track finances and set financial goals. It is set for certain period of time
What is variable expenses
Expenses that occur that vary each month (or not at all)
What are fixed expenses
Expenses that occur monthly and don’t vary
What is credit
Money that a bank or business will allow a person to use and then pay back in the future
What is debt
An amount of money that you owe to the person, bank, company, etc.
Define ethics
Rules to help us tell the difference between right and wrong, standards of conduct that society believes people should follow, they encourage us to do the right thing, they always very
What is an entrepreneur
Someone who ventures off on their own and start a new business
What are channels of distribution
How businesses get the product to consumers
What is a consumer
People who buy products or services for businesses
What are exports
Sending products off to other places [normally other countries]
What are imports
Bringing products into a country
What are the 4P’s of marketing
Product, price, place, promotion
What is a target market
A specific group that the business has decided to aim it’s marketing efforts and ultimately it’s merchandise
What is domestic trade
Trading with in the country
What is international trade
Trading outside the country
What is the stages of traditional life cycles
Intro, growth, maturity, decline
What are different types of nontraditional lifecycles
Fads, niche, seasonal
What is a logo
A special symbol that is associated with the product
What is a bear market
When the prices are extremely low
What is the bull market
And prices are extremely high
What are different types of logos
Symbol or icon, WordMark or letter Mark, Combination mark or emblem
What is a slogan
Short catchy phrase is usually attached to the company’s name and logo
what Is demand
The quantity of goods or services that consumers are willing and able to buy a particular price (specific point on the graph)
What is the law of demand
Usually consumers will increase the demand of a good or service as price decreases
What is supply
Quantity of a good or service that businesses are willing and able to provide within a range of prices that people will be willing to pay
What is the law of supply
As prices increase, producers will increase the quantity of goods they provide
What is a shareholder
Someone who owns a portion of the business
What is accounting
The process of recording, analyzing and interpreting the financial economic activities of a business
What are the two types of accounting
Management and financial
What is net worth/persons equity
The assets after all liabilities are deducted
What is the liquidy
How fast something can be turned into cash
What is marketing
Getting a product or service known
What are the different types of businesses
Partnership, franchise, cooperation, corporation, sole proprietorship, Nonprofit organization
What’s the difference between a cooperation and Corporation`
A corporation is a company or group of people authorized to act as a single entity. A cooperation is a business owned by the worker’s remember to buy the products or use the services of the business offers
What are the three different leadership styles
Democratic, autocratic and laisse-faire
What are the five peas of international business
Product, price, proximity, preference, corrosion
What are tariffs
A form of tax on certain types of imports
What is a surplus
When the business has more money because it’s sold more than needed to take
What is a deficit
When a business has not sold enough and is the financial problems
What is the north American free trade agreement
Free trade amongst North America
What is a patent
Registration of inventors legal right of ownership for their invention. I prevent others from using the invention without permission
What is copyright
Exclusive right to publish, produce, sell or distribute an original work of literature, art, music, software, design etc.
Define marketplace
the arena of competitive or commercial dealings; the world of trade
Define Capital
wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
What is balance of trade
he difference in value between a country’s imports and exports
What is disposable income
income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.
What is discretionary income
income remaining after deduction of taxes, other mandatory charges, and expenditure on necessary items
What is dividend
a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves)
What is a bond
security thing that holds companies/people together on an agreement
Define management
the process of dealing with or controlling things or people.
What is net loss
The result that occurs when expenses exceed the income or total revenue produced for a given period of time
What is unlimited liability
Unlimited liability is not capped at a maximum amount and exists regardless of the amount of investment each owner has personally made. If the business is unable to meet any financial obligations or settle any outstanding liabilities, the owner’s personal assets can be seized to satisfy the debts.
What is limited liability
Limited liability is where a person’s financial liability is limited to a fixed sum, most commonly the value of a person’s investment in a company or partnership. If a company with limited liability is sued, then the plaintiffs are suing the company, not its owners or investors
What is legal tender
coins or banknotes that must be accepted if offered in payment of a debt
What is obsolete
no longer produced or used; out of date
What is offshore outsourcing
using other countries labour or resources
What are producers
a person, company, or country that makes, grows, or supplies goods or commodities for sale
What is a rate of return
The gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost. Gains on investments are considered to be any income received from the security plus realized capital gains.
What is RRSP
Registered Retirement Savings Plan (RRSP) is a type of Canadian account for holding savings and investment assets.
What is RESP
Registered Education Savings Plan, or RESP, is an investment vehicle used by parents to save for their children’s post-secondary education in Canada. The principal advantages of RESPs are the access to the Canada Education Savings Grant (CESG) and a source of tax-deferred income
What is a savings plan
A type of personal savings system in which the plan contributor automatically deposits a fixed amount of funds at specified intervals into their investment account
What is a mutual fund
an investment program funded by shareholders that trades in diversified holdings and is professionally managed
What are the social costs of doing international business
Social costs include offshore outsourcing, human rights or labour abuses, and environmental degradation
What is the bank of canada
the country’s central bank.
What are the 3 C’s of credit
Character: From your credit history, a lender may decide whether you possess the honesty and reliability to repay a debt.
Capital: A lender will want to know if you have valuable assets such as real estate, personal property, investments, or savings with which to repay debt if income is unavailable.
Capacity: This refers to your ability to repay the debt. The lender will look to see if you have been working regularly in an occupation that is likely to provide enough income to support your credit use.
What are the advantages and disadvantages of credit
Credit is convenient. You do not need to carry a lot of money with you. You may save money, because you can take advantage of sales.
Credit can help if you need money for emergencies, such as unemployment, illness, death, or property loss.
Credit is handy for making purchases through the mail, telephone, and Internet.
Disadvantage- Credit usually costs more than paying cash. Interest and other charges may be added to the purchase price., You may buy more than you can afford., Credit ties up future income. When you use credit, you owe money that must be paid back from future income
What are the 4 main functions of management
Planning, Organizing, Leading & Controlling
What is the difference between a mutual fun and savings fund
Mutual funds, on the other hand, are a type of investment. With a mutual fund, an investment firm will pool your money with other investors’ and then invest the money in stocks, bonds and other securities. Each investor owns a certain number of shares in the mutual fund, which are redeemable at any time. savings are when you save
What are different types of investing money
savings and mutual
List some entrepreneurial characteristics
passion, creativity, determination
List entreprenural skills
Creative thinking, innovative thinking,
