132 terms

ethical behavior

behaviour that conforms to a society's accepted principles of right and wrong. eg. fair wages and working condition both in and out of the business.

Sustainability

Business practices that leave a positive impact on the environment to protect the world for future generations.

Digital Literacy

comfortability with digital tools and manipulating volumes of data through spreadsheets and coding.

Entrepreneurial Activities

managing uncertainty and taking risks.

social intelligence

ability to understand and navigate social situations

EQ

Emotional Quotient/intelligence. focuses on the strength of soft skills and evolving self-awareness and control

Importance of a strong understanding of business as a financial leader.

gain trust as a business partner
able to help the entire organization meet its goals to drive value.
catalyst to change and focuses on innovation.

Why is business activity difficult in Canada?

Large land mass.
lack of infrastructure.
spread out population.

Mixed Economy

some allocation of resources are made by the market and some are made by the various levels of government.

Crown Corporation

A type of business owned by the provincial/federal government

Privatization

the sale of a publicly owned corporation. usually a source of cash for the government.

small business

an independently owned business that usually has the owner as its manager. 1-99 employees.

Sole Proprietorship

a business owned and managed by a single individual.

Partnership

a business organization owned by two or more persons who share knowledge and resources in launching the business.

corporation

separate legal entity separate from its owners. Shareholders are not liable to the debts of the corporation.

shareholders: customers, employees, suppliers, banks, unions, government.

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Why do small businesses fail?

lack of planning, lack of customers, unable to maintain employees and good records, and lack of financial support.

Money – Not enough, lack of planning
Decisions – Under/over pricing, lack of record keeping which impacts decision-making
Lack of knowledge – Not understanding business (industry/market, business cycles, costs of doing business)

How are shareholders impacted by globalization.

customers - increased options and connectivity around the world increases.

employees-increased connectivity with customers, clients, and business partners.

owner - expanded reach for customers as connectivity increases.

small businesses benefit from foreign markets.

Importing

buying products from another country

Exporting

selling products to another country

Balance of trade

the relationship between a nation's imports and exports

favourable balance of trade (trade surplus)

exports>imports

unfavourable balance of trade (trade deficit)

imports>exports

Free Trade

trade between countries without political/economic obstructions

Comparative advantage

Countries export what they can produce effectively and import what they cannot.

Free Market Economy

the market determines what goods and services to produce and who gets them without government intervention.

trade protectionism

the use of government regulations to limit the import of goods and services

Tariffs

Taxes on imported goods

import quota

a limit on the amount of a good that can be imported

Embargo

an official ban on trade or other commercial activity with a particular country.

non-tariff barriers

restrictive standards that detail exactly how a product must be sold in a country.

multinational corporation

An organization that manufactures and markets products in many different countries and has physical presence in those countries.

Strategies to enter the global markets

Licensing, exporting, franchising, contract manufacturing, joint venture, strategic alliance, foreign direct investment

Licensing

when a domestic company (licensor) gives a foreign company (licensee) rights to make its product in exchange for a fee.

franchising

when someone with a business concept (franchisor) sells the rights to use the businesses name and to sell its good or service to another party (franchisee).

contract manufacturing/outsourcing

finding A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; part of the broad category of outsourcing.

Joint venture

when two or more companies create a partnership to take on a major project.

Strategic Alliance

When two or more companies form a partnership to build up their competitive market advantage.

Foreign Direct Investment

purchasing property or business and operating in a foreign country

foreign subsidairy

a company owned in a foreign country by another company, called the parent company

BRICS

Brazil, Russia, India, China, South Africa

Environmental Scan

an analysis of outside influences that may have an impact on an organization

stakeholders

individuals or entities that have an interest or stake in what they do.

PEST

an acronym to review the political, environmental, social, and technological factors that impact how an organization reaches its goals.

political environment

laws, taxes, and trade regulations managed by the government that impacts a business.

factors of production

land, labor, capital, entrepreneurship, knowledge

deregulations

removal of some laws and regulations which can allow for more competition

fiscal policy

A government policy keeping the economy stable through increases and decreases in both taxes and government spending.

Types of taxes

income tax (tax on $ earned @ job)

property tax (tax on real estate)

sales tax (tax on goods/services)

federal tax

provincial tax

microeconomics

the study of individuals and businesses within the economy.

Macroeconomics

the study of economy-wide phenomena, including inflation, unemployment, and economic growth

unemployment rate

the percentage of the labor force that is unemployed

business cycle

the rise and fall of economic activity over time

trough -> recovery -> expansion -> peak -> contraction

Trough

lowest point of economics activity

Recovery

a rise in business activity after a recession or depression. increased demand for goods and services

Expansion

A period of economic growth as measured by a rise in real GDP

Peak

the height of an economic expansion, when real GDP stops rising

contraction

a period of economic decline marked by falling real GDP. Results in recession or depression.

monetary policy

Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.

Inflation

an increase in the price of goods and services.

Consumer Price Index

The key measure of inflation by comparing the change in prices for a basket of commonly purchased goods.

benchmark interest rate

rate at which it loans money to Canada's major financial institutions.

Gross Domestic Product (GDP)

A measurement of the total goods and services produced within a country.

GDP per capita

GDP divided by population

social environment

demographics (age, education, income, diversity), attitudes, and values.

Triple Bottom Line Reporting

A business strategy that includes social, economic, and environmental criteria.

Technological Environment

forces that create new technologies, creating new product and market opportunities

Porter's Five Forces

current and potential competitors, suppliers, bargaining power of suppliers and customers.

SWOT analysis

strengths, weaknesses, opportunities, threats

How can Businesses "do good"

consider why they exist, how and who they operate with, who they associate with, and what they believe in.

legality vs ethics

Laws - established rules and regulations within a jurisdiction that govern actions. If laws are disobeyed there is a serious penalty.

Ethics - guiding principles that are not enforced by the government. rather an internal feeling/understanding.

Ethics

the principles of right and wrong that guide an individual or entity in making decisions

ethical dilemma

a situation where a difficult choice has to be made with little to no good outcome.

CSR (Corporate Social Responsibility)

A business's concern for the welfare of society.

Business case for social responsibility

- being responsible is a competitive advantage.

- builds a positive image and internal organizational culture for a

company, attracting customers, and employees.

- increases brand power

corporate philanthropy

donating money or time and skills to various causes

Fair Trade

trade in which fair prices are paid to producers in developing countries.

sustainable development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Internal Stakeholders

employees, owners, board of directors

External Stakeholders

customers, investors, environment

social audit

Evaluation of how well a firm is meeting its ethics and social responsibility goals

Core functions of management

Planning, Controlling, Leading, Organizing

Star Model

strategy, structure, processes, rewards, people.

organizing function of management.

Leadership traits

drive, leadership motivation, honesty and integrity, self-confidence, cognitive ability, knowledge of the business

Maslow's Hierarchy of Needs

(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection, (level 4) Self Esteem, (level 5) Self Actualization

SMART goals

Specific

Measurable

The M in Smart goals is