unit 2 Flashcards
Economies of Scale
Economies of scale refer to the cost advantages that businesses gain by increasing their production volume
Budget
A budget is a plan that helps you manage your money. It shows you how much money you have, how much money you need to spend on different things, and how much money you can save or use for other goals.
Variable Costs vs. Fixed Costs
VARIABLE: Expenses that change directly with the level of production or sales activity
FIXED: Expenses that remain the same regardless of the level of production or sales activity
Profit Equation
total revenue - total expenses
Corporate Citizens
Corporate citizenship is how a company exercises its rights, obligations, privileges, and overall corporate responsibility within our local and global environments
Price Fixing
Price fixing is an illegal agreement between competitors to set prices at a specific level
Unemployment Rate
the amount of people who are eligible to get jobs but don’t have any
- if the rate is 5% (high) the availability of labour is high
Cartels
a collection of independent businesses or organizations that collude to manipulate the price of a product or service
ex. OPEC - controls 35% of oil production and has 66% of the worlds oil reserve
Inflation
Inflation is the rate of increase in prices over a given period of time
Monopoly
a situation in which a single company or group owns all or nearly all of the market for a given type of product or service
Marketing Boards
organization set up by a government to regulate the buying and selling of a certain commodity within a specified area.
Caveat Emptor
a buyers responsibility for due diligence before purchase
- “let the buyer be aware”
Departmentalization
is a method of organizing work and responsibilities within a company by creating separate departments for specific functions or activities
Labour Market
the supply and demand for labour
Unskilled Labour vs. Skilled Labour
unskilled doesn’t require education / low education level
skilled requires higher level of education or training
Compensation
monetary payment given to an individual in exchange for their services
Minimum Wage
is the lowest hourly rate an employer can legally pay an employee
Commission
a fee paid to an agent or employee for transacting a piece of business or performing a service
Piecework
any type of employment in which a worker is paid a fixed piece rate for each unit produced or action performed, regardless of time
Stock Option
a benefit in the form of an option given by a company to an employee to buy stock in the company at a discount or at a stated fixed price.
Royalty
payments made to an owner for the right to use their intellectual property, such as patents, trademarks, or copyrights, or for the use of their assets like franchises or natural resources
Employee Turnover
the rate at which employees leave a company and are replaced, encompassing both voluntary resignations and involuntary terminations (firings or layoffs)
Salary
a fixed amount of money or compensation paid to an employee by an employer in return for work performed
Incentive
something that encourages a person or organization to do or achieve something.
Management
the coordination and administration of tasks to achieve a goal
Sales Quota
a measurable goal sellers are expected to hit in a specific time period
Perks
an advantage or something extra, such as money or goods, that you are given because of your job
Discrimination
not being allowed to work/treated unfairly at work because you’re apart of a minority
Organization Chart
a diagram that outlines how certain activities are directed in order to achieve the goals of an organization
Autocratic Leader vs. Democratic Leader
autocratic tells everyone what to do with no choice - do as their told
democratic lets people vote on a decision in the workplace
Laissez-Faire Leader
letting people do as they choose - work their job freely
What are the five major functions of management for any business?
planning, organizing, directing, controlling, staffing
Describe the three management styles discussed in class?
autocratic, democratic, laissez-faire
How can a management style affect employee productivity?
- can impact productivity because workers all have different motivations and personalities
- not everyone reacts positively to every style of leadership
- each worker will respond differently to different levels of motivation, communication, participation.
Why is it important for a manager to develop teamwork?
- to creating greater efficiency, improved decision making, higher morale and positivity
- also crucial to avoiding duplication of work
- it improves overall creativity, idea generation and motivation
What are the six functions of a human resources manager?
- Determine need for new employees
- Hiring the right individual
- Application and Interviewing
- Job Training
- Keeping good employees
- Departures, Dismissals and Retirements
List at least five rights that an employee has when they get hired?
- Right to not be discriminated against or harassed on specific grounds.
- Minimum wage
- Eating Periods
- Overtime
- Pregnancy/Parental leave
What are the nine holidays that employers must pay employees for?
- New Year’s Day
- Family Day
- Good Friday
- Victoria Day
- Canada Day
- Labour Day
- Thanksgiving Day
- Christmas Day
-Boxing Day
What is the difference between a skill and a characteristic?
SKILL: the ability to do something specific or translate knowledge into action with a high level of expertise
CHARACTERISTIC: a feature, quality or trait that can be used to describe an individual
What are the nine types of compensation discussed in class?
- Hourly Wage
- Salary
- Salary plus Commission
- Straight Commission
- Incentive Bonus
- Performance based pay
- Fee for service
- Royalty or Licensing fees
- Stock options
How does achieving economies of scale make a business more productive?
- the fixed costs are being minimized by being spread out over more units of production
- they are using the same amount of equipment and labour to produce more goods
Describe the four reasons that businesses fail
- Lack of skill or knowledge
- Expanding too quickly
- Lack of capital
- Inability to stay competitive
Outline the ways in which government influences a business
- Taxes
- Antitrust Legislation
- Money Supply
- Control of distribution
- Licensing Permits
- Other Regulations-Caveat Emptor
Explain how economic conditions affect business
- Supply and Demand, labour market conditions and inflation all impact business either positively or negatively
- The business has no control over these factors for the most part
- They can only react or adjust to the conditions in the best way possible for the business
What are the personal factors that can make a business successful?
- Desire for Control
- Vision
- Passion
- Perseverance
- Teamwork
What are the four ways that a business can measure its success?
- Profit
- Social Responsibility
- Employee Satisfaction
- Personal Satisfaction
