BSM 100 Week 1 + 2

106 flashcards

Constitution Act: Defines powers that can be exercised by different levels of government, authorizes agencies to regulate acts
Regulations: Restrictions that provincial and federal laws place on businesses
Low taxes and regulations=: Encourage entrepreneurship
ROI: Return on Investment
Passing laws enabling businesspeople to write court enforceable contracts:: Encourages entrepreneurship
Economic environment: Acts/regulations on ownership, Income, expenditures, resources, effecting cost of running businesses
Allowing private ownership/not requiring firms: Enables easier exchange of goods and services, encourages entrepreneurship
Movement of country's currency relative to other countries important to:: countries generating business activity from exports like canada
Lower CAD compared to USD makes: Exports cheaper, more attractive to US market
Technological environment: Technological aspects impacting businesses operaations
Creative destruction: Process of change ex. techs reducing cost but reducing jobs
E-Commerce: Buying and selling of goods online
B2B (e-commerce): business to business sales
B2C (e-commerce): Business to consumer sales
E-Business: Any information system empowering business process
PIPEDA: Personal Information Protection and Electronic Documents Act - federal rules about how private sector organizations may collect, use, or disclose personal information in course of commercial activities
Competitive environment: Customers always able to chose another option
Factor driving competition 1: Entry to market, bargaining power, rivalries and substitutions
Barriers to entry: Capital requirment, product identity, distribution access, switching costs
Powerful buyers: Are few in numbers, there are low switching costs, or product represents significant share of buyer's total costs
Powerful suppliers: When product is critical to buyer and has built up switching costs
Competitive pressure depends on: rate of idustry growh
Slow growth setting causes: Heated competitionf or any possible gains in market share
High fixed costs cause: competitive pressure for firms to fill production capacity
Empowerment: Giving workers authority to make descisions to best serve customers and produce products
Social environment: Environment of demographics impacting businesses
Demography: Statistical study of human population with regard to size, density, and characteristics
Canadian birth rates have been declining since _____: 1960s
Gen Z is soon to be the _______: Largest consumer group in world
Global environment: Surrounds all other environment, negotiation of free trade among nations
Greening: Saving energy and producing products causing less harm to environment
Sustainability: economic viability, environmental protection, social equity
World trade causes ____________: Increased standard of living, outsourcing
Acceptable unemployment rate: 7%
Unemployment causes ___________________: Lower purchasing power
Inflation is posive for _______: People holding assets like gold who can sell for increased level, businesses that will make more money, create more projects causing employment
Market: Mechanism bringing buyers and sellers together and assists them in negotiation of product exchange
Fixed incomes: People on disability, retired
Target inflation rate: 2%
_____________ can control inflation: Central banks and government
How governments control inflation: Adjusting tax policy
How central banks control inflation: Increasing interest rate, mortgage to reduce money people have
business: Any activity that seeks to provide goods and services while operating at a profit
Entrepreneur: Person who risks time and money to start and manage a business
Profit=: revenue-expenses
Loss: When expenses exeed revenue
Profit: Money earned above and beyond what was spent
revenue: total money recieved in given period
risk: Chance that time and money spent on a business may not be valuable
Good: Tangible products
Services: Intangible products
Captured value (by business): money made off consumer
gap in market: niche where need is unmet by current offerings
market in gap: whether or not public is interested in being created to fill gap
Land: Natural resources Factor of production to start a business
Entreprenership: Factor of production to start a business risk taking
Capital: Factor of production to start a business. Machines, tools buildings, not money
Labour: Worker Factor of production to start a business
Knowledge: info Factor of production to start a business
Non-profit organization: Organizations whose goals do not include making a personal profit for its owners or organizations
Quality of life: General well being of society ex. political freedom, health care, education
Direct taxes: Taxes paid that are a portion of your income
indirect taxes: Taxes paid with each purcheses
Money paid to businesses=: moeny paid to government in taxes (incentive for governments to encourage business growth)
Stakeholder: Someone who has something to gain or lose from a business (investors, governments, customers)
Offshoring: Obtaining raw materials to produce product from alternate country where they are cheaper
Outsourcing: Contracting with other companies to do some or all functions of a firm
Insourcing: When company has functions that could be outsourced
Supply: Quantity of products manufacturers or owners are willing to sell at different prices over specific time
Demand: Quantity of products people are willing and able to buy at specific prices over a specific time
Equilibrium point: When quantity demand and supply are equal, turns into market price
Surplus: Supply exceeding demand, indicating prices should lower
Shortage: Supply is less than demand, indicating prices should raise
Perfect competition: Many sellers, no one large enough to influence price, buyers see products identical
Monopolistic competition: Many sellers, profucts percieved as different, relies on product differentiation
Product differentiation: Creation of real or percieved product differences
Oligopoly: Few sellers, simillar prices (cuts would be matches), relies on product differentiation
Brand proliferation: Many brands offered by same supplier
Monopoly: One seller dominates, regulated in instances of utilities
Self-interest motive (Adam Smith Concept): Desire individuals have to increase their own happiness
Invisible hand (Adam Smith Concept): People trying to improve own lives inadvertantly helps economy growth
67.8% of Canadian networth: Controlled by riches 20% percent
Economic System: Countries set of social customs, political institutions, economic practices
Traditional economy: Traditional division of labour, resistance to change
Market economy: Private ownership of economic resources, individuals free to shop and provide labour , reliant on markets
command economy: Natural resources and capital controlled bhy covernment, reliant on central planning
Mixed economy: Combines 3 other economies
Modern mixed economies: Combines market and government prescence in economic decisions
Public sector: Part of mixed economy dominated by government activity and ownership of production resources
private sector: Part of mixed economy dominated by market, private ownership of production resources
Traditional mixed economies: Mixed economy including traditional with modern
Traditional economy benefits: Stability, emphasis on spirituality, cultural aspects
Traditional economy limitations: Lack of innovation, autonomy, constrained economic growth, potential
Market economy benefits: Supply and demand, competition encourages innovation
Consumer sovereignty: Decision of what to produce guided by demands of consumers
Market economy limitations: Inequality, pollution
Command Economy: Equitable income distribution, planners can promote economic growth by devoting more resources to capital products
Command Economy limitations: Requires many resources, corruption risk, waste and inneficiency without drive of profits
Mixed economy limitations: Conflicts in sectors
Busines Environment: Surrounding factors that help or hinder business development
Legal environment: Laws and acts that regulate businesses
Social entrepreneur: Entrepreneur using business principles to start and manage non profit organization
Social enterprises: Organization including central social or ethical mission while generating income for employees via commercial activity
Primary stakeholder: without their support business would not exist
secondary stakeholder: their influence is non essential to the survival of the business
Bankruptcy: Liquidation of business debtors assets and end of commercial entitys operations