Introduction to Business (BEP201)

Vocabulary practice flashcards generated from BEP201 Intro to Business lecture slides covering core concepts, business structures, classification, sectors, and international trade.

Business (Firm or Enterprise)

An organization set up to produce and/or sell goods or services to satisfy the needs and wants of consumers, usually with the purpose of making a profit.

For-Profit Business

A business that produces or sells goods and services for the primary purpose of making a profit.

Non-Profit Business

A business that does not seek to make a profit, but instead raises funds for a specific goal.

Revenues

Income earned through the sales of goods and services.

Expenses

Costs incurred in order to generate revenues.

Profit

The financial gain calculated as Revenues minus Expenses ($\text{Profit} = \text{Revenue} - \text{Expenses}$).

Sole Proprietorship

A business form where one owner gains all the benefits of the business and assumes all the risk and liability.

Partnership

A business structure owned and operated by two or more people who share risk, skills, profits, decision making, and liability.

Public Corporation

A publicly traded business entity offering perpetual existence and reduced personal failure risk, but subject to higher admin costs, double taxation, and mandatory government scrutiny.

Corporation

A distinct legal and financial entity created by filing government documents that separates its assets and liabilities completely from the individuals who own or run it.

Limited Liability

A corporate feature where owners are legally liable only for the amount of money they invest in the company.

Shareholders

People or companies that own stocks and govern a corporation.

Board of Directors

A group elected by shareholders to make big-picture decisions and appoint executive leaders.

Not-For-Profit Corporation

An entity formed for religious, charitable, literary, artistic, scientific, or educational purposes that operates with separate legal entity status and special tax privileges.

Co-Operative

A business owned and operated by its customers for their own benefit.

Consumer Co-op

A type of co-operative that provides products and services to its members.

Producer Co-op

A type of co-operative that processes and markets goods or services produced by its members to its members.

Worker Co-op

A type of co-operative where employees are both members and co-op owners.

Multi-Stakeholder Co-op

A type of co-operative designed to serve more than one stakeholder group.

Crown Corporation

A company owned by the province or federal government, structured and operated like an independent private company to serve a public policy or commercial goal.

Micro Business

A business that employs fewer than 5 to 10 employees.

Small Business

A business that typically employs between 1 and 99 employees.

Medium-Sized Business

A business that employs between 100 and 499 employees.

Large Business

A business that employs 500 or more employees.

Goods

Tangible products that can be seen or touched and can be stored in a warehouse or taken home after purchase.

Services

An activity or advice that happens in the moment and cannot be stored or returned.

Customer

A person or organization that purchases a product or service, but might not be the end-user.

Consumer

A person or organization that uses a product or service (the end-user), but might not have purchased it.

Goods and Services Tax (GST)

A federal value-added tax of $5\%$ in Canada applied to most supplies of goods and services bought or sold across the country.

Distribution Channel

The network of primary industries, businesses, intermediaries, and digital platforms that a good or service passes through on its way from the producer to the final consumer.

Primary Industries

Sectors of the economy that extract, harvest, or produce raw materials directly from the earth and nature, accounting for about $20\%$ of Canada's economy.

Manufacturing Industries

The sector of the economy that turns raw materials and components into finished physical goods, accounting for over $10\%$ of Canada's economy.

Service Industries

Economic sector encompassing non-tangible offerings like banking, retail, and health, accounting for $70\%$ of the Canadian economy worth over \\$1.74\text{ trillion} annually.

Licensing Agreement

An arrangement giving another company permission to use a product, service, brand, or patent for a fee or royalty.

Franchising

Granting a person the right to own a business and use the parent company's name, services, products, and marketing.

Joint Venture

An arrangement where two businesses (e.g., one in Canada and one foreign) come together to form a new company.

Branch Plant

An arrangement where a foreign company permits a branch of its business to operate as an independent company in Canada.

Free Trade

Trade policy that allows nations to specialize, leading to greater productivity overall.

Fair Trade

An initiative by organizations to eliminate unfair business practices such as corruption, child labour, poor working conditions, and environmental degradation.

Protectionism

Government policies implementing barriers like tariffs, import quotas, and regulations to shield domestic industries from foreign competition.

Tariff

A tax imposed by a government on goods and services imported from other countries to restrict imports and protect domestic industries.