Final Review Flashcards
EQ
Emotional Intelligence, focused on soft skills, developing self awareness + control, empathize and see variety of perspectives
Intrapreneurship
Doing entrepreneurial work like designing new products within a corporation
Sustainability
Business practices that are SUSTAINABLE, and leave a positive impact on the world or environment
Balance of Trade
Relationship between importing and exporting
Trade Surplus
When exports exceed imports
Trade Defecit
When imports exceed exports
Comparative Advantage (Theory)
Countries should produce what they can efficiently and purchase what they cannot
Contract Manufacturing
Find foreign manufacturer to make your product with your brand and name attached (A.K.A Outsourcing)
Corporation
A business that is considered separate legal entity from owners and has many shareholders
Crown Corporation
A publicly owned company
Embargo
Ban on import of a product
Exporting
Sale of good to another country
Foreign Direct Investment
Buying a property or business and operating in another country
Foreign Subsidiary
Where the owner / franchisor sells rights to use business names and products for sale / service in another country (
Free Market Economy
Market determines what G&S to produce and who gets them
Free Trade
When there are no barriers to trade between countries
Importing
Purchase of goods from another country
Import Quota
Limit of quantity of products that country imports
Joint Venture
When two / more companies team up for a major business venture
Licensing
When a domestic company (licensor) allows a foreign one (licensee) to make its products in exchange for a fee / royalty
Multinational Corporations
Companies that manufacture and sell their products in many countries
Mixed Economy
Economy where government has a say in the allocation of resources in the market
Non-Tariff Barriers
Rules that hinder free trade
Partnership
A business created by two or more people
Privatization
Sale of a crown corp.
Small Business
Business that is
- Independently owned and operated
- Not dominant in it’s field
- Employs 1-99 Employees
Sole Proprietorship
Business owned by single person
Strategic Alliance
Two or more companies that work together to build and maintain their competitive advantage
Tariffs
Taxes on imported products
Trade Protectionism
Limits the amount of export by the use of government regulation
Benchmark Interest Rate
Rate at which Bank of Canada loans money to financial institutions
Business Cycles
Natural rises and falls in economic activity
Recovery, Expansions, Peak, Contraction
Consumer Price Index
Compares change in prices for “basket” of commonly purchased goods
Depression
A severe form of recession with a prolonged period of reduced economic activity
Deregulation
Removal of laws and regulations to support competition
Economies of Scale
Advantage of having a larger amount of goods produced, which decreases cost per good sold
Environmental Scan
Looking at the business environment to see factors growth and success
Factors of Production
Land, Labour, Capital, Entrepreneurship
Fiscal Policy
Spending policy of Govt. / Changes in tax rates
Gross Domestic Product
Total value of goods and services produced inside the country in a year
GPD per Capita
GDP over population
Inflation
Rise in price of goods and services over time
Macroeconomics
study of economy as a whole, looking through lens of entire countries
Microeconomics
Study of decisions made by individuals and businesses
Monetary Policy
Management of money supply and interest rate by bank of Canada
National Debt
Accumulation of national deficits over time
Recession
Period of two or more consecutive quarters of decline in GDP
Stakeholders
Individuals / Entities that have a stake in what an organization does
Switching costs
Monetary and Psychological impact of switching from one product to another
Triple Bottom Line Reporting
Reporting that focuses on 3 of people,planet,profits
Unemployment Rate
Measure of % of people who are unemployed out of the labour force
Corporate Philantropy
when companies donate money / skill to support various causes
Corporate Social Responsibility
How a company steps up to aid society
Ethical Dilemna
A problem with a difficult choice with potentially no desirable options
Ethics
Guiding principles that help us navigate decision making in a given situation or context
Fair Trade
Ensures producers in developing countries are paid fair prices for their produce
Laws
Established rules and regulations that companies must abide by
Social Audit
Evaluating progress toward social goals
Sustainable Development
Whether or not business operations support needs for the future without negative consequences
Whistleblowers
People that report unethical behavior
Balanced Scorecard Approach
A method of control that looks at both financial and non-financial measures through the assessment of financial, customers, business processes, and learning & growth.
Contingency Plans
Plans that occur when the original plan does not pan oiut
Goals
Targets or accomplishments that align with visions and mission
Autocratic Leadership
Management tells employees what to do without consultation
Democratic Leadership
Management makes decisions with consultation of others
Laissez-Faire Leadership
Managers set targets, employees are free to work towards their targets how they see best
Conceptual Skills
Analytic Skills, seeing the big picture and critical thinking
Technical Skills
Knowledge and ability to perform tasks in specific discipline
Human Skills
Ability to communicate and maintain relationship, interpersonal skills
Maslow’s Hierarchy of needs
Considers motivations of employees
- Physiological needs
- Safety
- Love/Belonging
- Self Esteem
- Self Actualization
Mission Statement
Statement outlining current purpose, including what they do and who they do it for
Organizational Chart
Outlines the structure and flow of power within a company, includes employees and their functions
Star Model
Identifies five considerations in organizational design — strategy, structure, processes, rewards, and people.
Values
Fundamental Beliefs of company that guide decision making
Vision
Long term road map of company, describes where company wants to be in the future
Angel Investors
Individuals that invest in early stage business in return for R.O.I and some control
Venture Capitalists
Individuals / Companies that invest in established businesses and get a R.O.I
Business Model
Shows how you deliver value to customers through product/service and how you capture value (earn revenue)
Crowdfunding
Raising capital from people online
Incubators
Supportive environments that not only provide working space but also advice/support to grow ideas and how to manage a business. This can include coaching, management and operations assistance, networking opportunities, and access to financing.
Intrapreneurship
When one is able to launch new products or services within a company
Value Proposition
The benefits customers can expect from using the products and services of an organization., E.G. My purchase from our company
Business Models
Captures how you deliver value to customers (value proposition) through your products and services and also capture value as a company (earn money through revenue streams)
Copyright
Legislation which provides an exclusive right to make, reproduce, publish, or perform artistic works, where other who want to use have to buy / gain permission. They exist for lifetime of creator + 50 years after their death, after which the copyright expires
Direct Channel
When a company has its own stores (physical or online) and salespeople
Fixed Costs
costs that stay the same even if production increases
Freemium
A business model where products are offered for free, but then allow customer to purchase additional features through in app purchases
Indirect Channel
When a company’s product is offered through an intermediary
Intangible Resources
Assets that a company owns that are not physical in nature
Patents
Protections that cover new invention / improvements to existing inventions, gives inventor right to stop others from making, using or selling invention for the period of the patent (usually 20 years)
Recurring revenue streams
Revenue streams that are on going payments, such as monthly subscriptions
Tangible resources
Assets that a company owns that are physical in nature
Transactional Revenue Streams
Revenue steams that are one time payments
Value Proposition
Benefits customers can expect from using the products and services of an organization
Variable Costs
Costs that will change if production increases (e.g. Raw Material)
Advertising
Media communication used to promote a brand or sell a product (e.g. Radio/TV, print, digital ads)
Brand
Name Symbol or Design that distinguishes company and its products from their competition
Brand Equity
Overall value for a bran, strengthened by awareness and customer loyalty
Break-Even Analysis
Helps evaluate profitability of a product by calculating break even point, when sales cover expenses completely
B2B
Business-2-Business, when companies sell to other companies who may or may not be end users
B2C
Business-2-Customer, when companies sell directly to customers who are usually end users
Buzz Marketing
Encourages consumers to try products and publicly share their reviews
Concept Testing
process of sharing a product idea with potential customers to obtain feedback
Crowdsourcing
When you mobilize the ideas and perspectives of individual customers to help design a product
Customer Relationship Management
Systems that capture data to support interactions and encourage engagement with customers to build long-term relationship
Direct marketing
promotional activities that link a producer directly with its customers, such as telemarketing, mail, or emails
Distribution Channel
How products move from producer to consumer
Intermediaries
individuals or organisations in the middle of distribution channels which help move products from business -> consumer
Market
customers with wants and needs that have both and interest and resources to make a purchase
Market Research
Process of collecting info to understand customers and satisfy their needs with products
Primary Research
gathering info directly, use of surveys, interviews, observation
Secondary Research
Examines info and stats already available (e.g. publishes surveys, research studies, existing company records)
Market segmentation
Process of dividing a total market into customer segments that have similar char / needs
Marketing
Process of creating, communicating and delivering product offerings that have value
Marketing Mix (4Ps)
How a company can create interest and influence demand for product through Product, Price, Place, Promotion
Mass Marketing
When company attempts to reach a wider audience with a single product offering
Penetration Pricing
Setting low initial price to build customer base / enter competitive market
Price Skimming
Setting high initial price to optimize profit when there is less competition
Personal Selling
face-to-face promotional activities between buyer and seller
Product Differentiation
Promote how your product is unique
Product Life Cycle
Looks at sales over four states, intro, growth, maturity and decline
Product Line
group of similar products sold by a company
Product mix
Combination of all product lines from a company
Promotion Mix
Activities a companies can use to motivate to take action and buy (stuff you do to market)
Public Relations
Activities that drive a positive image and generate publicity
Relationship Marketing
Aims to develop long-term relationships with customers to foster loyalty and interaction
Sales Promotion
Techniques that can motivate a customer to buy, which include incentives like coupons, rebates or free samples
Target Market
A customer segment that is sizable, reachable and profitable
Test Marketing
launch and test product on small scale to get customer feedback
Activity Based Management
Reviewing processes to remove non-value adding activities to save time and money
Computer-Aided Design
Software that can help design products through 2d / 3d modelling and developing diagrams for products and their components
Computer-Aided Manufacturing
Use of technology that can take designs and inform equipment on how to manufacture them
Computer-Integrated Manufacturing
Integration of CAD and CIM software
Critical Path
The sequence of tasks that would take the longest to complete, any delays here delay the entire project
Enterprise Resource Planning
Software that manages key functions of company through shared info database
Gantt Chart
A planning tool that measures progress and can show what tasked are being worked on and what stage they’re in
JIT inventory management
Where supplies are ordered and delivered just-in-time to go into the production line
Lean Manufacturing
Looks how a company can produce products ASAP, using the least amount of materials, effort, space, tool and equipment
Made-to-order
Where company solicits individual orders and makes specified products
Mass Customization
Tailoring a large volume of products to meet needs of many customers
Operations Management
How a company creates goods and services through effective management of their resources and processes
Mass Production
Manufacture large volume of similar goods in efficient manner
Productivity
Examines the efficiency of operations to transform inputs into outputs
Program Evaluation and Review Technique
Planning tool that considers tasks and relationship between tasks, estimating times for each sequence
Quality
Meeting certain standards and/or being free of deficiencies
Supply Chain Management
Managing logistics for a product from sourcing its raw materials -> sending product to customers
Total Quality Mangement
Continues process to improve product quality and customer satisfaction
Apprenticeship programs
Training where new staff work with experienced employees to master skills
Bonus Plan
Additional Money or gifts for good performance
Cafeteria style (flexible) benefits plans
Where Employees can choose from a select set of benefits to best suit their needs (up to specific dollar amounts)
Coaching
One on One discussions to support emerging leaders
Commission plans
Pay based on % of sales
Compensation
Remuneration provided in exchange for services
Compressed workweek
working required hours over reduced days to have longer weekend
Contingent workers
Short Term workers that fill temp needs or work on specific projects
Employee Lifecycle
How employees progress through a company (Recruitment, On-boarding, Development, Retention, Off-boarding)
Recruitment
attracting and choosing the best people that fit the needs of your company
Onboarding
Providing orientation to new employees
Development
Helping employees grow both personally and professionaly
Retention
Motivating employees to keep employee satisfaction high
Offboarding
Managing employee departures
Flextime Plans
Employees have more flexible hours, as long as they are within core times
Fringe benefits
Optional benefits that employers can give
Hourly Wage
Pay based on hours of work
Job description
Describes responsibilities, skills needed, working conditions, and connection with other roles for a specified job
Job rotation
Training future leaders by giving them exposure to different positions
Job simulations
training where equipment duplicates working conditions
Off-The-Job Training
employees learn off-site (away from office) through external conferences
On-The-Job Training
Learning by doing or watching others do
Online Training
Learning that can be accessed online
Pay Equity
Equal pay for equal value, pay based on neutral performance factors
Performance Appraisals
Measure actual performance against standards to make decisions
Profit Sharing
Bonus awarded to team if company reaches its targets
Salary
Fixed amount of salary per year
Stock Option
opportunity for employee to purchase stock at preferred price
Telework
Employees that work from home
Turnover rate
% of employees that leave company each year
Understudy positions
Emerging leaders support leaders with work, learning from them and slowly taking on more of the higher ups work
Bonds
Loans issued by company that must by paid (grants IOU) where you must pay principal and interest and specified date
Common shares
shares that allow shareholder to become part owner, giving them voting rights
Compound Interest
Principle where interest also earns interest
Covenants
conditions that must be maintained for a loan, if broken the lender can demand loan be paid back instantly
Interest
% charge on principal amount, can be specific or variable
Principal
Original borrow amount of loan
Secured loan
loan backed by assets that are put up as collateral
Term
Time period for loan, under 1 year = short term, over = long term
Unsecured loan
Loan not backed by collateral, only given to customers with strong financial history
Financial Literacy
Having knowledge and skills to make informed financial decisions
IPO
Initial Public Offering, first time a company sells its shares
Line of Credit
Access to a pre-approved pool of money
Preferred shares
Shares that have no voting rights, but have priority over dividends and claim to liquidated assets before common shareholders
Prospectus
Document made available to investors that sums details about shares, business and finances
Term Loan
Amount borrowed and paid off at fixed intervals
Time value of money
Money is worth more in the future
Undercapitilization
when company does not have enough money to support its operations
Accounting
Process of recording, summarizing, and analyzing financial transactions to report to decision makers
Financial Accounting
accounting prepared for stakeholders outside company
Managerial Accounting
Accounting for decision makers inside company
Annual Report
report that discusses F/S, and talks about past year and future plans
Private Accountants
Work within single organization
Public
Provide services to several organizations for a fee
Inventory turnover Ration
COGS / Average Inventory
Contributed Surplus
Earnings outside operations
Debt to Asset Ratio
Total Liabilities / Total Assets
Debt to Equity Ratio
Total Liabilities / Owners Equity
Current Ratio
Current Assets / Current Liabilities
Quick Ratio
(Cash + Short Term Investments + A/R) / Current Liabilities
Earnings Per Share
Net Income / Average # of Common Shares
Return of Sales
Net Income / Net Sales
Return on Equity
Net Income / Average Owners Equity
