Business Fundamentals Flashcards

Flashcards for review based on lecture notes.

Needs

Essential for survival, such as oxygen, food, water, protection, and healthcare.

Wants

Extras that we would enjoy having but are not required to live, like smartphones or vacations.

Goods

An item that can be seen or touched.

Merchandising/Retailers

Term for businesses that sell goods.

Service

Assistance provided by a business.

Business

An organization that produces or sells goods or services to satisfy the needs, wants, and demands of consumers

For Profit

Goal is to make a profit by supplying goods or services to meet consumer demands

Non-Profit

Organization that does not seek profit as a primary motive but instead raises funds for a specific goal and operates for the good of the community.

Not For Profit

Organization that does not seek profit but the money is used to improve services offered; its purpose is to meet specific needs of members.

Profit

Income that is left after all costs and expenses are paid.

Expenses

Expenditures involved in running a business.

Costs

The amount of money required for each stage of production (raw materials).

Producer

Make goods or provide services that consumers need or want

Consumer

Purchase goods or services from producers

Marketplace

Where producers and consumers come together to buy and sell

Natural Resources

Materials that come from the earth, water, or air.

Human Resources

The people who work to create the goods and services (labor).

Capital Resources

Company assets including buildings, factories, equipment, and money.

Entrepreneurship

Bringing together the other 3 factors of production; they are risk-takers and organizers

Demand

The quantity of goods or services consumers are willing and able to purchase at a given price.

Supply

The quantity of goods or services suppliers are willing to produce at a given price.

Inventory

The goods in inventory or even supplies on hand; it is the quantity of goods and materials kept on hand.

Substitute Goods

Goods that can be used in place of one another.

Complementary goods

Goods that complement one another

Sole Proprietorship

A business owned by one person who is known as the proprietor

Partnership

Two or more individuals share the costs and responsibilities of owning and operating the business.

Corporations

A business granted legal status with rights, privileges, and liabilities that are distinct from those of the people who work for the business.

Co-Operatives

Owned by the workers or members who buy the product/services of the business; motivated by service and not profit.

Franchise

The franchiser licenses the rights to its name, operating procedure, designs, and business expertise to another business called the franchisee.

E-commerce ('electronic commerce')

A marketplace where consumers and sellers meet without face-to-face contact.

Joint Venture

Can match the skills and expertise of two different individuals or businesses to generate more benefits for both parties.

Strategic Alliances

Occur when two or more businesses agree to commit particular resources to achieve a common set of objectives; alliance partners remain separate and entirely independent of each other.

Mergers

Two or more companies join together; one of the businesses usually wants to purchase a controlling interest in the other company, or both businesses have combined interests.

Offshoring

Relocates some of a company’s operations to another country; usually this happens to take advantage of lower labor costs, to be closer to large and emerging buyer markets, and to have access to skilled workforces.

Multinational Corporations

A business enterprise that conducts business in another country or several different countries.

Ethics

Rules that help us tell the difference between right and wrong.

Values

Tell us what is important; they help us make decisions about right and wrong.

Morals

Are rules we use to decide what is good or bad.

Code of Ethics

A document that explains specifically how employees should respond in certain situations.

Whistle Blowing

When an employee informs officials or the public about an illegal or ethical violation.

Ethical Dilemma

A moral problem with a choice between potential right or wrong.

Discrimination

Is denying a qualified individual an interview, job, or promotion based on his or her religion, gender, sexual orientation, or physical disabilities.

Gender discrimination

Is treating an employee differently based on their sex (male or female).

Glass Ceiling

invisible barriers that may affect the career path of senior leaders in corporate positions.

Harassment

Is behavior that is threatening, disturbing, or makes others uncomfortable.

Environmental Protection Act

laws and regulations to prevent future environmental disasters (air, land, water).

Kyoto Protocol

An agreement to reduce greenhouse gases in the atmosphere

Employment Standards Act

Sets out mandatory minimum conditions of employment.

Pay Equity

Prohibits an employer from paying employees of one sex differently than employees of the other sex who perform the same work.

Privacy Laws

Requires businesses to explain what information is required from employees and why.

Domestic Transaction

The selling of items produced in the same country.

International Transaction

The selling of items produced in other countries.

Global Economy

Participating in international transactions (the creating, shipping, and services across national borders).

Global Product

Standardized item that is offered in the same form in all the countries in which it is sold.

Social Costs

Costs of doing business internationally (offshoring, outsourcing, human rights or labor abuses, environmental degradation).

Outsourcing

The practice of hiring service providers from countries where labor costs are lower to complete some/all of the steps in the production process.

Environmental Degradation

Occurs when nature’s resources such as trees, habitat, earth, water and air are being consumed faster than nature can replenish them.

Tariffs

A form of tax on certain types of imports; each country's own rules for dealing with imports, generally in place to protect the domestic industry; the subject of international negotiations.

Non-Tariff Barriers

Standards for the quality of imported goods that are set so high that foreign competitors cannot enter the market.

Landed Cost

The actual cost for an imported purchased item, composed of the vendor cost, transportation charges, duties, taxes, broker fees, and any other charges; determines whether a foreign purchase is a better deal than a domestic producer.

Direct Exporting

Deals directly with the importer and does not use an intermediary

Indirect Exporting

The goods move from the exporter to an intermediary and then on to the importer.

Trade Agreement

Made between countries in order to reduce trade barriers; mainly deals with importing and exporting products and states which tariff each country will drop or reduce.

Culture

The sum of a country’s way of life, beliefs, and customs; it influences how things are bought and sold and sets the boundaries of what can and cannot be done.

Price

The cost of a good or service, influenced by production expenses like wages, taxes, and raw materials.

Proximity

Neighboring countries - easy to trade. Proximity refers to how close one place is to another and how that affects business and trade.

Preference

Based on reputation and specialization. It refers to consumers choosing products from certain countries because of their reputation for quality. Even when similar goods are available domestically, people may prefer foreign specialties

Promotion

The process of making consumers aware of a product or service.

Offshore Outsourcing

Producing all or parts of a good in countries with lower labour costs.

Imports

Products that come into a country

Exports

Products that exit the country