Business Exam Review

Grade 10

What are For-Profit Businesses? Examples?

they produce or sell goods/services for the purpose of making a profit (legit anything)

What are Non-Profit Businesses? Examples?

they support social causes like education, healthcre, and charity as they reinvest all earnings into their mission giving them no profit (red cross, hospitals, schools, and charities)

What is profit?

income left after costs and expenses are paid

What is revenue?

the money recieved from selling your good or service

What are expenses?

the payments invlved in running a business and the assests that get “used up” while operating it

What is the equation for normal business income?

Profit/Loss = Revenue - Expenses

What is Sole Proprietorship?

owned by one person

What is partnership?

owned by two or mroe parties

What is a corportation?

an artificial person created by law and owned by shareholders

What is Co-Operative?

owned by it’s workers or members who buy from the business

What is a Franchise?

a business model where a business (franchisor) licenses another (franchisee) to use its name, operating procedure, etc. under an above form of ownership

What is a consumer?

a person who uses the product or service

What is a customer?

a person who purchases the good/service

What are needs?

basic necessities for survival like food, clothing, and shelter

What are wants?

something that adds comfort or pleasure to consumer’s lives

What does obsolete mean? Example?

when a product/service is no longer wanted/needed by consumers (dvds)

What are the factors of production?

natural, human, and capital resources

What are natural resources? Examples?

raw materials (wood, coal, oil, minerals)

What are human resources?

human effort

What are capital resources? Examples?

liquid and non-liquid (land, equipment, machinery, veichles)

What is Indirect Competition?

between products/services not related to each other

What is Direct Competition?

between products that are very similar to each other

What is the difference between goods and services?

goods are tangible and services are intangible

What is demand? (law of demand)

the quantity of a good or service that consumers are willing and able to buy at a particular price

law of deman: as the price of a good or service increases, consumer demand for that quantity decreases

What is supply? (law of supply)

the quantity of good or service that businesses are willing and able to provide within the range or prices that people would be willing to pay

law of supply: an increase in the price of a good or service will lead to an increase in the quantity suppliers are willing to produce and sell

In Inventory, what is sell?

things businesses sell

In Inventory, what is non-sell?

things businesses own for business or personal use but don’t sell

What are Board of Directors?

• they manage and oversee the activities of a company or organization

• make decisions about how the business will exist and operate

What is Limited Liability?

only responsible for the funds they each invested in the initial business

What is unlimited liability?

responsible for all of teh business’s debts and liabilities

What is a franchisor?

lisences the right to “borrow” their brand

What is a franchiee?

“borrows” the brand from a franchisor

What is debt financing?

borrowing money from a lender that must be repaid with interest over time

What is equity financing?

selling a portion of business ownership ot investors in exchange for capital

What is the purpose of Corporate Social Responsibility?

to ensure businesses operate ethically, sustainably, and in a wau that positively impacts society

What are business ethics?

they reflect societies values and those of employers and consumers

What are ethics?

rules guiding right vs wrong and encouraging good behavior

What is ethical behavior?

acting according to personal and social standards of right and good

What are values?

they guide decisions on right vs wrong (trust, respect, responsibility)

What are morals?

rules defining good vs bad (stealing is wrong because it harms others)

What is ethical dilemma?

a tough choice between right and wrong

What is whistle-blowing?

reporting illegal or unethical business actions

What is the code of ethics?

guides employee behavior in specific situations

What is domestic transaction?

the selling of items produced in the same country

What is international transaction?

the selling of items produced in other countries (foreign trade)

What is globilization?

process of countries becoming more connected and working together through trade, technology, and culture

What are the advantages of globilization?

cheaper goods, more variety, new jobs, and shared technology

What are the disadvantages of globilization?

lost jobs, hurts envionrment, corporate dominance, and foreign reliance

What is human resources?

they are responsible for coordinating all activities involving the comapny’s employees

What is hourly wage?

payed hourly (most common payment for part itme employers)

What is minimun wage?

the lowest hourly wage an employer can legally give

What is overtime pay?

given to employees for working more on regular work days and on holidays

What is salary?

a fixed amount that an employee will make on a regular schedule (wekly, bi-weekly…)

What is commision?

on top of salary, worker will earn this to encourage them to sell/work more harder

What is straight commision?

certain companies will pay employees according to how many sales they make

What is incentile bonus?

bonuses for employees reaching a particular goal or sales quote

What is a headhunter?

an external recruiter hired by companies to find highly qualified candidates for executive senior or specialized roles

Types of workers

unskiled labour, skilled labour, semiskilled labour, and professional labour

What is a employee turnover?

when employees leave the firm voluntarily either for another job or to retire

What are the manager functions?

planning, organizing, leading, and controlling

What is the planning manager function?

process of setting realistic goals for a business (short term and long term)

What is the organizing manager function?

arranging people a tasks to carry out the business plans

What is the leading manager function?

involves activities such as leading teams and managing conflict and stress (motivating, encouraging, etc.)

What is the controlling manager function?

method used to increase, maintain, or decrease the resources allocated (employee discipline, budgeting, and performence appraisals)

What is autocratic leadership?

takes control of the situation and doesn’t allow employee participating in decision making (works when decisions need to be made fast)

What is laissez-faire leadership?

leaves employees alone to do their job (appropriate when employees are mature and have years of experience)

What is democratic leadership?

provides opportunities for employee contributions to the decision making process (employee provides inputs, information, and creativity to the department’s goals)

What are the types of advertising methods form cheapest to expensive?

1. mailing

2. newspaper

3. magazine

4. telemarketing

5. national search engine optimization

6. pay per click marketing

7. web content marketing campaign

8. national email amrketing

9. tv advertising

What is advertising?

paying to put a message in front of an audience to get them to buy a product, use a service, or remember a brand

How do we compare different mediums using cost?

traditional = more expensive to buy the space and you pay abig upfront fee

digital = more cheaper since you pay a tiny amount every time someone clicks on your ad

How do we compare different mediums using selectivity?

high = you can choose who to show your ads to (specific target)

low = everyone sees it (waste of money)

How do we compare different mediums using frequency?

high = runs over and over again so people can repeadetly see it

low = only runs on the day you pay for it/once (newspaper/magazine)

What is “lead time” and what advertising forms require the most of it?

• amount of time required to create the ad before it can run

longest = national magazines and television

shortest = national pay per click marketing and email marketing

What is A.I.D.A?

an acronym mapping out the steps an advertisement must take a consumer through

What does the first A stand for in A.I.D.A?

attention = grab the consumer’s eye

What does I stand for in A.I.D.A?

interest = keep them engaged by sharing information/details

What does D stand for in A.I.D.A?

desire = make them want the product or service

What does the last A stand for in A.I.D.A?

action = prompt them to buy it or visit a store

How does advertising differ from promotion?

pormotion is short term and advertising is long term

What is branding?

the process of creating a specific identity and image for a company in the consumer’s mind

Why is branding improtant?

builds recognition, creates trust, supports advertising, and drives customer loyalty

What are brand elements and what’s the most important one?

1. brand identity = visible elements like logo, ofiicial colour palette, and typography (fonts)

2. brand voice = the core beliefs, mission, and ethics that the company stands for

3. brand values = how the cmpany actually treats people through it’s service and product quality

Most improtant branding element = consistency (across all branding builds trust)

What is primary research?

research you collect yourself directly from people

What is secondary research?

research that already exists and is collected by others

What is qualitative research?

focuses on opinions, feelings, motivations, and experiences

What is quantitative research?

focuses on numbers, statistics, and measureable data

What is exploratory research?

used to describe a manner or customer group

What is casual research?

used to determine cause and effect relationships

What are the 4 p’s of marketing?

product, price, place, and promotion

What are the 2 c’s of marketing?

customer and competition

What is the product life cycle?

the process a product goes through from the time it is intoruced to the market until removed/replaced

What happens in the introduction stage of the product lfie cycle?

product/service is launched into the marketplace

What happens in the growth stage of the product lfie cycle?

if introduction is successful, then sales will grow

What happens in the maturity stage of the product lfie cycle?

sales reach their highest point and growth begins to slow down

What happens in the decline stage of the product lfie cycle?

sales decrease because the product fails to get new customers

What happens in the decision point stage of the product lfie cycle?

try to make it popular again or target a new market agency

What is a target market?

the segment that the market wants to attract most

What are assets?

things that the cmpany owes (cash, AR, inventory, equipment, buildings, land, supplies, etc.)

What are liabilities?

obligations of the company, amounts owned to others (loans, AP, taxes, salaries, interest, etc.)

What is Owner’s Equity?

a source of the company’s assets