Final Exam - Unit 1 and 2 Flashcards

1
Q

What is a Business?

A

A business is an organization that produces or sells goods and services to meet the needs, wants, and demands of consumers for the purpose of making a profit or not.

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2
Q

What are the 3 types of businesses?

A

1) Service business - Generates a profit by doing something for other businesses or consumers. Like movie theathres and airlines.
2) Retail business - Generates a profit by selling things, usually bought from a manufacturer and then sold. Like grocery or department stores.
3) Manufacturing business - Generates a profit by producing products from raw materials for component parts and then selling it to retailers. Like car or appliance manufacturers.

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3
Q

Define “The Role of the Consumer”

A

The role of the consumer is what goods and services they want, when they want it, and how much they are willing to pay for it.

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4
Q

What is marketplace?

A

Market place is where the buying and selling of products take place, made up of producers and consumers.

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5
Q

Define products, goods, and services.

A

1) Products - Are goods and services that are provided by a business.
2) Goods - Are things that are made to be sold, they are tangible.
3) Services - Is the action of doing something for someone.

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6
Q

Whats the difference between producers and consumers?

A

1) Producers are businesses that produces goods or provides services.
2) Consumers are people who buy and use products or services.

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7
Q

What is competition and obsolete products?

A

1) Competition is when producers make products that meet the same needs of the same consumers.
2) Obsolete products are products that consumers no longer want or need.

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8
Q

What is purchasing power and consumer purchasing power?

A

1) Purchasing power - Producers have this when they can charger higher prices and raise prices when costs go up.
2) Consumer purchasing power - Consumers have this when they can choose where they will buy their goods and services and how much they are willing to pay for it.

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9
Q

What are wants vs. needs?

A

1) Needs are goods and services that are required for survival. (Food, water, and shelter)
2) Wants and goods and services that enhance a persons life. (Designer clothes, vacations, and tvs.)

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9
Q

What are fads vs. trends?

A

1) Trends - Is a general direction that society moves in and consistently follows for a long time.
2) Fads - Is a short term craze that becomes popular and unpopular that people follow and drop quickly.

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10
Q

What is the Maslows’s Hierarchy of Needs?

A

1) Psyhcological needs - Basic needs of survival (Food, water, and shelter.)
2) Safety needs - Goods and services that satisfy your need for safety (Locks, and security.)
3) Self belonging/love needs - Goods and services that makes you feel love and accepted by others. (Designer clothes and dating.)
4) Esteem needs - Goods and services that make you feel respected by others. (Job status, and higher education.)
5) Self accutilization needs - Gives you inner peace and a sense of fulfilment, expecting nothing in return (Donating and charity.)

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11
Q

Define supply and demands

A

1) Supply - The quantity of goods and services that sellers are willing to provide for consumers.
2) Demand - The quantity of goods and services that the market is willing to buy.

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12
Q

What is the law of demand? List three factors that can impact demand.

A

The law of demand states that as the price of a good or service increases consumer demand decreases, and vice versa.
- Changes, in price, population, and prefrence.

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13
Q

What is the law of supply? List three factors that can impact supply.

A

The law of supply states that as the price of a good or service increases, the quantity offered also increases.
- Changes in technology, production costs, and environment

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14
Q

What is Ethics and Ethical Behaviour?

A

1) Ethics - Are rules that help us tell the difference between right and wrong.
2) Ethical Behaviour - Is a conduct that conforms ethics, individual behaviour, and social standards about what is right and good.

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15
Q

What are values and morals?

A

1) Values - Tell us what’s important.
2) Morals - Are rules we use to decide what’s good and bad.

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16
Q

What is the Code of Ethics?

A

The Code of Ethics is a document that explains specifically how employees should respond in certain situations.

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17
Q

What is an Ethical Dillema?

A

An ethical dilemma is a moral problem with a choice between potential right and wrong.

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18
Q

What are three of the tests that you could use to help you resolve an ethical dilemma?

A

1) Legality Test - Are your actions legal?
2) Benefit Cost Test - Do the benefits outweigh whoever is impacted?
3) Light of Day Test - What would you do if your actions were shown to the world?

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19
Q

What are the 6 CSR principles?

A

SAFER
1) Safe and healthy work environment.
2) Adopting fair labour prices.
3) Fair advertising
4) Environmental protection
5) Rejecting price discrimination. (Donating to charity)

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20
Q

What is “Fair Trade?”

A

Fair Trade is an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships.

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21
Q

What is International Trade?

A

International trade occurs when goods and services are shipped across borders, for trade in another country.

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22
Q

How is a business considered international?

A

1) If they own a retail or distribution centre in another country.
2) If they export to businesses in another country.
3) If they invest in businesses in another country.

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23
Q

List the five P’s of international business.

A

1) Prefrence
2) Promotion
3) Product
4) Proximity
5) Price

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24
Q

What are two pros and two cons of trade?

A

Pros:
1) Allows us to purchase goods that we can’t grow or manufacture in Canada.
2) More job offerings.

Cons:
1) Dependency on the global market.
2) Job losses.

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25
Q

What is Trade Surplus and Trade Deficit?

A

1) Trade Surplus - When the value of the goods a country exports exceeds the values it imports.
2) Trade Deficit - When the value of the goods a country imports exceeds the value it exports.

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26
Q

What is Free Trade?

A

Free Trade is trade without barriers.

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27
Q

What is CUSMA and who are members?

A

CUSMA is a free trade agreement between Canada, the North America, and Mexico.
NAFTA stands for the “North American Free Trade Agreement.”

28
Q

What are 2 advantages and disadvantages of CUSMA?

A

Advantages:
1) Increased market size.
2) Easier entry for business people.

Disadvantages:
1) Canada’s culture becoming revolutionized.
2) Inavailability of inexpensive culture.

29
Q

What is production?

A

Production is the process of making or manufacturing goods and services from raw materials.

30
Q

What are the 4 factors of production?

A

1) Labor - Physical and mental work
2) Land - Natural resources
3) Capital - Money invested
4) Entrepreneurship - Directors

31
Q

What is liquid and non-liquid capital?

A

1) Liquid Capital - Cash, stocks, and bonds that can be converted to cash quickly.
2) Non-liquid Capital - Capital like cars and buildings that can’t be converted to cash quickly.

32
Q

What are the 4 stages in the production process; list and describe each?

A

1) Purchasing - Someone is responsible to purchase all the raw materials needed to produce products and services.
2) Processing - All non-service bussineses convert one item into another through processing.
3) Quality Control - Standards that ensure that all products and services conform to a certain level of excellence.
4) Grading - The act of checking products for size and quality against fixed standards in terms of its technical characteristics.

33
Q

What is the concept of productivity?

A

Productivity is the comparsion of resources used with the products and services that result.

34
Q

What makes a product popular and highly desirable by an end consumer?

A
  • Higher quality
  • Higher grading
  • Cheaper than its competitors
  • Meets ISO standards
35
Q

How can a business improve productivity?

A

Train employees, encourage team work, and motivate and provide feedback

36
Q

What is HR?

A

HR is a part of the management teams who fires and hires workers, sets up training programs, and arrange salaries.

37
Q

What are the 6 functions of HR?

A

1) Recruitment - Look for the right employee
2) Selection - Interviewing
3) Training - Teaching employees how to do the job
4) Development - Upgrading the employees performance
5) Assesment - Employees are assesed to see if they need any improvements.
6) Compensation - Money and benefits

38
Q

What is employee turnover?

A

The rate at which employees leave a company for another job

39
Q

List the 8 roles of Human Resources.

A

1) Determine the need for a new employee
2) Look for the right employee
3) Application process
4) Interview process
5) Job training
6) Employee development
7) Keep the good employees
8) Departures, dismissals, and retirement

40
Q

Define the word “Manager”

A

Manager is an induvidual who is in charge of a certain group of tasks and has a group of people who report to them.

41
Q

What are the 3 management levels?

A

1) Top manager - Responsible for the organization as a whole. (CEO/President)
2) Middle manager - Responsible for relatively large departments. (HR manager/Customer Service manager)
3) Lower manager - Responsible for smaller work groups. (Team leaders/Supervisors)

42
Q

What are the 4 main functions of a manager?

A

1) Planning - Involves setting short and long term goals and deciding on how to achieve them
2) Organizing - Involves arranging people and tasks to achieve business goals.
3) Leading - Involves communicating and motivating employees to work hard and guide them towards success.
4) Controlling - Involves setting standards for employees to follow in order to be successfull.

43
Q

What are the 2 types of motivaton?

A

1) External motivation - Involves positive and/or negative methods. (Promotion/fear of losing job.)
2) Internal motivation - Comes from within the person and is usually stronger than external. (Overcoming challenges/earning respect.)

44
Q

What is marketing?

A

Marketing is a term used to describe all the activities involved in getting goods and services from the producers to the consumers.

45
Q

What are the 4 requirements for marketing?

A

1) 2 or more companies with unsatisfied needs.
2) A way to satisfy those needs.
3) A way for the parties to communicate.
4) Something to exchange.

46
Q

Define the 2 C’s of marketing.

A

1) Competition - When 2 or more businesses offer the same products or services to the same target market.
2) Consumers - The people who buy and use the products and services.

47
Q

What is market share and market segment?

A

1) Market share - The percentage of the market that a company has.
2) Market segment - The overall part of a market that has similar characteristics.

48
Q

What is the difference between internal and external hiring?

A

1) Internal hiring - Means hiring someone who already works at the job to fill in the opening.
2) External hiring - Means hiring someone completely new for the job.

49
Q

What is demographics?

A

Demographics is the study of obvious characteristics of human beings. Businesses use this to target specific consumers. (Age, gender, etc.)

50
Q

Describe the 4 P’s of marketing.

A

1) Product - The item or service that’s being sold.
2) Price - How much the item or service costs.
3) Place - Where and how the item is being sold.
4) Promotion - How you tell customers about the item or service.

51
Q

What are the 3 channels of distrbution?

A

1) Direct - Selling directly to the customer.
2) Indirect - Having one or more boundaries in order to get to the customer. (Costco or Walmart)
3) Specialty - A form of indirect distribution without retailers or wholesalers.

52
Q

What 3 things are part of a brand?

A

1) Brand name
2) Brand logo/trademark
3) Slogan

53
Q

Identify the stages of the product life cycle, and one product that belongs in each.

A

1) Introduction - The product just enters the market. (Synthetic meat)
2) Growth - The product enters the market, people try it, and sales increase. (Electric cars)
3) Maturity - Growth is flat, but the product must be continuously advertised. (Coke)
4) Decline - The product fails to attract new customers to replace those that have left. (Landlines)
5) Decision Point - Make the decision to reformulate, repackage, or reintroduce. (Cereals)

54
Q

Define 3 types of non-traditional product life cycles:

A

1) Fads - Products that are popular for a very short period of time. (Fidget spinners)
2) Niches - Products that have a very short growth stage, and a steady maturity stage. (High end hair products)
3) Seasonal - Products that are only popular during certain periods. (School supplies)

55
Q

What is advertising?

A

A paid for promotion of a businesses products and services over a wide variety of media to target consumers.

56
Q

List the 4 rules for creating good advertising.

A

1) Attract attention
2) Build desire
3) Gain interest
4) Get action

57
Q

What do accountants do?

A

Record and analyze economic or financial activities of a business.

58
Q

What are transactions?

A

Recorded activities of a business that involves money.

59
Q

What is bookeeping?

A

Recording of all transactions in a specific format. Involves 2 changes.

60
Q

What is networth?

A

Value of everything you own after all debts are paid.

61
Q

What are assets and liabilites?

A

1) Assets - Something that has value and is owned by a person.
2) Liabilities - Debts or amount owed to others.

62
Q

What is cost principle?

A

Always recoding asset at the actual amount it costs the business.

63
Q

List and describe the 5 reasons why accounting is important. BAFTA

A

1) Budgeting - Bussines need to decide how to budget their finances.
2) Accountability - Ensures that bussineses are responsible for their cash flow.
3) Financial statment - A report that summarizes the financial position of a business.
4) Taxation - Records must be kept and taken in order to pay taxes.
5) Annual report - Useful info is given to others in the form of a report.

64
Q

What is a balance sheet?

A

A balance sheet is a snapshot that shows how a business is doing on a specific day. Does not include profit, but includes assets, liabilities, and equity.

65
Q

What are the 5 steps to prepare a balance sheet?

A

1) Fill in the statement heading. (Who, what, when?)
2) List the assets. Must provide future economic benefit, cost principle, or depreciation.
3) List the liabilities.
4) Calculate owner’s equity.
5) Put it all together.

66
Q

What is an income statement?

A

An income statement is a financial statement that shows a businesses profit or loss over a stated period of time.

67
Q

What are the 4 steps to create an income statement?

A

1) Fill out the statement heading. (Who, what, when?)
2) List out the revenue in alphabetical order.
3) List out the expenses in alphabetical order.
4) Calculate net income or net loss.