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Intro to Business > Forms of Business Ownership > Flashcards

Forms of Business Ownership Flashcards

1
Q

Sole Proprietorship

A

A business is owned by one person, referred to as a “proprietor”

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2
Q

Partnership

A

A business with two or more partners who share responsibilities and profits/losses

  1. General - unlimited liability
  2. Limited liability
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3
Q

Franchise

A

A franchisee buys a license to operate a ready-made business from a franchisor

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4
Q

Corporation

A

A type of business owned by, but existing separate from tis shareholders. It includes a board of directors elected by shareholders

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5
Q

Types of Corporations

A
  1. Private (exclusive to employees and close members)
  2. Public - traded on the stock exchange so anyone can be a shareholder
  3. Crown - owned by federal government
  4. Municipal - owned by local government
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6
Q

Cooperative

A

A business owned by the people and members who are customers of the product/service. Established to share resources and run by board of directors

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7
Q

1st Measure of Business Success

A

Profit - selling goods/services for more than the required production cost (fixed and variable expenses)

Profit = Revenue - Expenses

Return on Sales = (Profit / Revenue) x 100%

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8
Q

2nd Measure of Business Success

A

Social Responsibility: helping out the community

  • Donating to charity
  • Sponsoring public service announcements
  • Work experience or apprenticeship programs to students
  • Increasing importance as a measure
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9
Q

3rd Measure of Business Success

A

Employee satisfaction: better chance of success if employees are happy

  • Good salaries
  • Medical/dental benefits
  • Vacation packages
  • Recognition of performance

Leads to increased productivity

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10
Q

4th Measure of Business Success

A

Personal satisfaction: love of what they do, not seeking large profits

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11
Q

Ethics

A

Rules that help differentiate between right and wrong to encourage the right thing

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12
Q

Values

A

Personal or company beliefs of what is important

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13
Q

Ethical Dilemma

A

Difficult choice where benefits must be weighed against an unethical action

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14
Q

Code of Conduct

A

A document explaining how employees should respond and act in different scenarios

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15
Q

Whistle blowing

A

Decision of an employee to inform authorities or the public about legal or ethical violation by their company

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16
Q

Fraud

A

Crime of actively lying and/or pretending for personal or financial gain

17
Q

How did Ben and Jerry’s represent the 1st measure of business success

A

Expanded to sell ice cream to restaurants. They then started packaging and distributing to local stores

18
Q

How did Ben and Jerry’s represent social responsibility?

A
  • Only using vermont milk
  • Public stock offering
  • Ben and Jerry’s foundation
  • Paired with non-profit organizations (ex. Goodwill)
  • Rainforest ice cream and brazilian nuts
  • 1% for peace campaign
  • ‘An unnecessary war’ letter
19
Q

How did Ben and Jerry’s maintain employee satisfaction?

A
  • Hired people with similar values
  • Gave employees shares of the business
  • Increased wages
20
Q

How did Ben and Jerry’s represent personal satisfaction?

A
  • Incorporated Ben’s personal values and principles into the business
  • Started with the goal of making ice cream, not making money
  • Working with like minded people
21
Q

What was Ben trying to demonstrate p congress?

A

He was presenting the idea of reattributing 15% of the national defence budget to peace activities and social service programs.

22
Q

What values are embedded in the Pirate Creed?

A
  • Fairness / Equality
  • Respect
  • Loyalty
  • Justice
  • Survival of the fittest
  • Responsibility
23
Q

1st business ethic

A

Integrity - standing up for what you believe is right

24
Q

2nd business ethic

A

Loyalty - being committed to certain people or groups

25
Q

3rd business ethic

A

Honesty - telling the truth

26
Q

4th business ethic

A

Responsibility - taking care of all aspects of your job

27
Q

5th business ethic

A

Empathy - understanding other people’s point of view

28
Q

6th business ethic

A

Confidentiality - keeping others’ personal information private

29
Q

7th business ethic

A

Respect - considering the feelings and viewpoints of others before you act

30
Q

Golden rule of business

A

Treat others as you would like to be treated

31
Q

Competition Act

A

Prohibits:

  • False or misleading advertising
  • Advertising bargains without having them in stock
  • Placing to prices and selling at the higher price
32
Q

Consumer Protection Act

A

Cooling off period - consumers can cancel agreements within 10 days

Misrepresentation - customer can withdraw from a contract within a year if they were mislead or lied to

Delivery of goods: deliveries must happen within 30 days of promised date and they cannot be charged for things they did not order

33
Q

Peak - Business Cycle

A

Highest everything

34
Q

CPI

A

(Cost of basket in year t / cost of basket in base year) x 100%

35
Q

Contraction

A
  • Higher interest rates lead to lower demand

- Decreasing employment

36
Q

Trough

A

Lowest everything

37
Q

Expansion

A
  • Increasing demand and employment levels
  • Increased spending
  • Higher investment

Intro to Business (3 decks)

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