Unit one Flashcards
what is a business
an organization that produces or sells goods or sources to satisfy the needs, wants and demands of consumers
what is a profit
Revenue-expenses
what is an expense
spending needed to run a business
what does solvency mean
able to pay your debts and meet you financial obligations
what are the 5 types of business
- service
- retail business
- manufacturing business
- not for profit
- crown corporations
what is a service business
generates money by doing something for other businesses or consumers
what is a retail business
generates money by selling things, usually they buy from a producer and sell to a consumer (future shop)
what is a not for profit business
an organization that does not make a profit from the operations of its business
what is a crown corporation
business owned by the federal.provincial government. they try to make money, but if they don’t, taxes cover shortfalls
who are the 2 main players in business
producers and consumers
what does SMB stand for?
small or medium business
a marketplace
a market place is any location where producers and consumers come together to engage in the buying or selling of goods
businesses are in control when…
they have higher pricing power. They can charge higher prices and raise prices when the costs go up.
consumers have control when…
make choices that take power away. they vote with their feet
characteristics of entrepreneurs
- self confidence
- innovative
- ability to work alone
- able to manage others
