Midterm 1 Review Flashcards
1
Q
risk
A
the chance of loss, the degree of probability of loss, and the amount of probable loss (ex, time or money)
2
Q
Standard of Living
A
The amount of goods and services people can but with the money they have
3
Q
Quality of Life
A
The general well-being of a society in terms of its political freedom, natural environment, education, healthcare, safety, amount of leisure and rewards that add to the satisfaction and joy that other goods and services provide
4
Q
Stakeholders
A
All the people who stand to gain or lose by the policies and activities of a business
5
Q
Offshoring
A
Sourcing part of the purchased inputs outside of the country
6
Q
Outsourcing
A
Assigning various functions such as accounting, production, security, maintenance and legal work to outside organizations
7
Q
Insourcing
A
Assigning various functions that could go to an outside organization to employees in the company
8
Q
Non-Profit Organization
A
An organization whose goals do not include making a personal profit for its owners or organizers
9
Q
Business Environment
A
The surrounding factors that either help or hinder the development of business
includes: economic, legal, social, competitive, geographic and technological
10
Q
Regulations
A
Restrictions that provincial and federal laws place on businesses with respect to the conduct of their activities
11
Q
Productivity
A
The amount of output that is generated given the amount of input
12
Q
E-commerce
A
The buying and selling of goods and services over the internet
13
Q
E-business
A
Any information system or application that empowers business processes
14
Q
Database
A
An electronic storage file for information
15
Q
Identity Theft
A
Obtaining an individuals’ personal information, such as SIN and credit card numbers for illegal purposes
16
Q
Crowdsourcing
A
Using the expertise of a large group of people to solve a business problem
17
Q
Empowerment
A
Giving front-line employees the responsibility, authority and freedom to respond quickly to customer requests
18
Q
Demography
A
The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender and income
19
Q
Baby Boomers
A
Born in the period of 1946-1964
20
Q
Generation Y (Millennials)
A
Born in the period of 1977-1994
21
Q
Generation Z
A
Born in the period from 1995 onward
22
Q
Climate Change
A
The movement of the temperature of the planet up or down over time
23
Q
Greening
A
The trend toward saving energy and producing products that cause less harm to the environment
24
Q
Sustainability
A
Development that meets the needs of present and future generations
25
Consumer Market (B2C)
Products that are bought for personal use
26
Business Market (B2B)
Products that are purchased for resale, daily operations or use in the manufacturing of other products
27
Legal Environment
- Tax laws
- Contract laws
- Elimination of corruption
28
Technological Environment
- Information and tech
- Databases
- Internet
29
Economic Enviornment
- Income and expenditures
- Currency shifts
- Economic systems
30
Global Environment
- Environmental changes
- International factors
- Global markets/competition
31
Competitive Environment
- Components of competition
- Customer driven
- Organization structure
32
Social Environment
- Diversity
- Demographic changes
- Family changes
33
Macroeconomics
Looking at the operation of a nation's economy as a whole
34
Microeconomics
Looking at the behaviour of people and organizations in particular markets
35
Resource Development
The study of how to increase resources and the creation of the conditions that will make better use of those resources
36
Invisible Hand
A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all
37
Capitalism
An economic system in which all or most of the factors of production and distribution are privately owned and operated for a profit
38
Socialism
An economic system based on the premise that some if not most basic businesses should be owned by the government so that profits ca be evenly distributed among the people
39
Communism
An economic and political system in which the state (government) makes all economic decisions and owns almost all of the major factors of production
40
Free-Market Economy
An economy in which the market largely determines what goods and services are produced, who gets them and how the economy grows
41
Command Economy
An economy in which the government largely determines what goods and services are produced, who gets them and how the economy grows
42
Mixed Economy
Economic systems in which some allocation of resources is made by the market and some by the government
43
Gross Domestic Product (GDP)
The total value of goods and services produced in a country in a given year
44
Unemployment Rate
The percentage of the labour force that actively seeks work but cannot find it
45
Inflation
A general rise in prices of goods and services over time
46
Disinflation
A situation in which price increases are slowing (inflation rate is decreasing)
47
Deflation
A situation in which prices are declining
48
Stagflation
A situation in which the economy is slowing but prices are going up regardless
49
Consumer Price Index (CPI)
A monthly statistic that measures the pace of inflation or deflation
50
Human Development Index (HDI)
A measure of a country's progress that includes wealth, health and education
51
Business/Economic Cycles
The periodic rises and falls that occur in economies over time
52
Boom
A period that brings jobs, growth and economic prosperity
53
Recession
2 or more consecutive quarters of decline in the GDP
54
Depression
A severe recession
55
Recovery
When the economy stabilizes and starts to grow
56
Frictional Unemployment
People that quit and haven't found jobs yet
57
Structural Unemployment
Unemployment caused by company restructuring, a mismatch between the skills of employees or the location of jobs
58
Cyclical Unemployment
Due to a downturn in the economy
59
Seasonal Unemployment
Demand for labour varies over the year
60
How to Improve Productivity
- Promote investment in equipment and machinery
- Invest in education and skills of people
- Open the economy to trade and investment
61
Free Trade
The movement of goods and services among nations without political or economic barriers
62
Balance of Trade
A nation's ratio of exports to imports
63
Trade Surplus
A favourable balance of trade
| Exports > Imports
64
Trade Deficit
An unfavourable balance of trade
| Exports < Imports
65
Balance of Payments
The difference between money coming in vs going out plus money flows from other factors such as tourism, foreign aid, military expenditures and foreign investments
66
Licensing
A global strategy in which a firm (licensor) allows a foreign company (licensee) to produce its product in exchange for a fee/royalty
67
Contract Manufacturing
A foreign country's production of private=-label goods to which a domestic company then attaches its brand name or trademark: Also called outsourcing
68
Joint Venture
A partnership in which 2 or more companies (often from different countries) join to undertake a major project
69
Strategic Alliance
A long-term partnership between 2 or more companies established to help each company build competitive market advantages
70
Foreign Direct Investment (FDI)
The buying of permanent property and businesses in foreign nations
71
Foreign Subsidary
A company owned in a foreign country by the parent company
72
Multinational Corporation
An organization that manufactures and markets products in many different countries and has multinational stock ownership and management
73
Culture
The set of values, beliefs, rules and institutions held by a specific group of people
74
Ethnocentricity
An attitude that one's own culture is superior to all others
75
Exchange Rate
The value of one nation's currency in relation to the currency of other countries
76
Devaluation
Lowering the value of a nation's currency relative to other countries
77
Countertrading
A complex form of bartering in which several countries may be involved, each trading goods for goods and services for services
78
Trade Protectionism
The use of government regulations to limit the imports of goods and services
79
Dumping
Selling products in a foreign country for a lower price then in the producing country
80
Tariff
A tax imposed on imports
81
Import Quota
A limit on the number of products in a certain category that a nation can import
82
Embargo
A complete ban on the import or export of a certain product or the stopping of all trade with a particular country
83
General Agreement on Tariffs and Trade (GATT)
A 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions
84
World Trade Organization (WTO)
An international organization that replaced the GATT and was assigned the duty to mediate trade disputes among nations
85
International Monetary Fund (IMF)
An international bank that makes short-term loans to countries experiencing problems with their balance of trade
86
World Bank
An autonomous United Nations agency that borrows money from the more prosperous countries and lends its to less developed countries to develop their infrastructure
87
Producers' Cartel
Organizations of commodity-producing countries that are formed to stabilize or increase prices to optimize overall profits in the long-run
88
Common Market (Trading Bloc)
A regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange
89
North American Free Trade Agreement (NAFTA)
An agreement that created a free-trade area among Canada, USA and Mexico
90
Strategies for Reaching Global Markets
| from least to most amount of commitment/risk
- Licensing
- Exporting
- Franchising
- Contract Manufacturing
- International Joint Ventures/Strategic Alliances
- Foreign Direct Investments
91
National Policy
Government directive that placed high tariffs on imports from the US to protect Canadian manufacturing which had higher costs
92
Crown Corporations
Companies that are owned by the federal or provincial government
93
Privatization
The process of governments selling crown corporations
94
Deregulation
Government withdrawal of certain laws and regulations that seem to hinder competition
95
Marketing Boards
Organizations that control the supply or pricing of certain agricultural products in Canada
96
Fiscal Policy
The federal government's effort to keep the economy stable by increasing or decreasing taxes and government spending
97
National (Federal) Debt
The accumulation of government surpluses and deficits over time
98
Deficit
Occurs when a government spends more than it collects in taxes over a period of time (fiscal year)
99
Surplus
An excess of revenues over expenditures
100
Federal Budget
A comprehensive report that reveals government financial policies for the coming year
101
Monetary Policy
The management of money supply and interest rates
102
Transfer Payments
Direct payments from governments to other governments or individuals
103
Equalization
A federal government program for reducing fiscal disparities among provinces
104
Industrial Policy
A comprehensive, coordinated government plan to guide and revitalize the economy
105
Ethics
Standard of moral behaviour; that is, behaviour that is accepted by society as right vs wrong
106
Compliance-Based Ethics
Ethical standards that emphasize preventing unlawful behaviour by increasing control and penalizing wrongdoers
107
Integrity-Based Ethics
Ethical standards that define the organizations' guiding values, create an environment that supports ethically sound behaviour and stress a shared accountability among employess
108
Whistleblowers
People who report illegal or unethical behaviour
109
Corporate Social Responsibility (CSR)
A business' concern for the welfare of society
110
Corporate Philanthropy
Dimension of CSR that includes charitable donations
111
Corporate Social Initiatives
Dimension of CSR that includes enhanced forms of corporate philanthropy that are more directly related to the company's competancies
112
Corporate Responsibility
Dimension of CSR that refers to the position a firm takes on social and political issues
113
Insider Trading
An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends
114
Social Audit
A systematic evaluation of an organization's progress toward implementing programs that are socially responsible and responsive
115
Triple Bottom Line (TBL, 3BL or People, Planet, Profit)
A framework for measuring and reporting corporate performance against economic, social and environmental parameters
116
Sustainable Development
Implementing a process that integrates environmental, economic and social considerations into decision making
117
Customer's 4 Basic Rights
- The right to be safe
- The right to be informed
- The right to choose
- The right to be heard
118
3 Questions in a Potentially Unethical Circumstance
- Is it legal?
- Is it balanced?
- How will it make me feel?
119
6 Steps when setting up a corporate ethics code
1. Adopt and support an explicit code of conduct
2. Employees must understand expectations start at the top and all employees are expected to act accordingly
3. Everyone must undergo ethics training
4. An ethics office must be set up
5. Outsiders must be told the ethics code
6. Ethics code must be enforced
120
6 Categories of Government Activities that can Affect Business
- Crown corporations
- Laws & regulations
- Taxation & financial policies
- Government expenditures
- Purchasing policies
- Service
121
Forces that Affect Trading in Global Markets
- Socioculture
- Economic & financial
- Legal
122
Factors of Production
- Land
- Labour
- Capital
- Entrepreneurship
- Knowledge
123
Organizational Ethics
Learned by observing the actions of others
