Business Final

Demand

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

Supply

The quantity of something that producers have available for sale

Law of Demand

as price increases, quantity demanded decreases

Law of Supply

producers offer more of a good as its price increases and less as its price falls

Fad

A product that is very popular for a short time (less than 2 years), then forgotten

Small or Medium Enterprise (SME)

Businesses with less than 500 employees

service business

a business that performs an activity for a fee

Not-for-profit business

an organization that operates for purposes of community

manufacturing business

a business that makes finished goods from raw materials by hand or machinery

Retail

A business that sells goods or services directly to the public.

Sole Proprietorship

A business owned by one person who receives all the profits from the business and takes all the risks

Partnerships

Business organizations in which two or more persons share responsibilities, costs, profits, and losses.

Unlimited liability

The owner is personally and fully responsible for all losses and debts of the business

Partnership Agreement

a written agreement among all owners detailing the rules and procedures that guide ownership and operations

General Partnership

partnership in which partners share equally in both responsibility and unlimited liability

Limited Partnership

partnership in which partners are only liable for their own investments

Corporation

an organization that is authorized by law to carry on activity but treated as though it were a single person and liability is distinct from those who work for the business

Co-operatives

business owned by the people who use it. The motive is service, not profit

Franchises

one business, the franchiser, licenses the rights to its name, operating procedure, design, and business expertise to another business, the franchisee

Franchise agreement

an arrangement for one business to license the rights to its name and procedures to another business or person

Dividend

the portion of profit after taxes that each shareholder receives

Needs

items necessary for survival

wants

things that add comfort and pleasure to your life

goods

monetary value, can be touched

services

Actions or activities that one person performs for another

obsolete products

products that are no longer wanted because people have found a better replacement

obsolete services

services that are no longer wanted because people have found a better replacement

trend

a general direction in which something is developing or changing

marketplace

any location or medium used to conduct an exchange

pricing power

the ability to escape price competition and to justify higher prices and margins without losing market share

consumer purchasing power

When consumers have the power to choose where they will buy goods and services, and how much they will pay for them.

economic resources

the means through which goods and services are produced

economic systems

organized way a society provides for the wants and needs of its people

natural resources

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain

human resources

People who work to produce goods and services

capital resources

The tools, equipment, and buildings that are used to produce goods and services

Interdependence

A relationship between countries in which they rely on one another for resources, goods, or services

equilibrium price

the price that balances quantity supplied and quantity demanded

Ethics

the principles of right and wrong that guide an individual in making decisions AKA morality

Corporate Social Responsibility

Business' responsibility go beyond profit

stakeholder

Individuals or groups who are significantly affected by or can significantly influence a company's decisions

universal destination of goods

the goods of creation are destined for the human race as a whole

common good

The good of the community as a whole.

stewardship

Looking after something so it can be passed on to the next generation

a matter of justice

giving a person what he/she deserves

fraud

deception for financial gain, lying or pretending

duty to report

An obligation to disclose all important information to shareholders, consumers employees etc.

whistleblower

an employee who exposes unethical or illegal conduct within the federal government or one of its contractors

strike

Nonviolent refusal to continue to work until a problem is resolved.

Duty to accommodate

Requirement that an employer must accommodate the employee to the point of "undue hardship"

labour union

an organization of workers that acts to protect workers' rights and interests

ethical dilemna

a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal

forgery

The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.

insider trading

an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends

embezzlement

taking for one's own use in violation of trust; stealing (of money placed in one's care)

private property

property owned by individuals or companies, not by the government or the people as a whole

profit

The financial gain made in a transaction

shareholder

A person who invests in a corporation by buying stock and is a partial owner

pay equity

equal pay for work of equal value

Capital - Factor of Production

The tools, equipment, machinery, and factories used in the production of goods and services

Entrepreneurship - Factor of Production

the process of creating new ideas and planning out how it will be executed

Land - Factor of Production

Use of natural resources, commercial real estate and agricultural land

Labour - Factor of Production

The human input into the production process

Lean production

Maximizing customer value while minimizing waste

Time-Based Management

an approach that recognises the importance of time and seeks to reduce the level of 'unproductive' time within an organisation

Kaizen

Japanese term for continuous improvement

Value Stream Mapping

a graphical way to analyze where value is or is not being added as material flows through a process

Just-in Time

a logistics process in which goods arrive when needed for production, use, or sale rather than sitting in storage

Matrix Organizational Structure

An organizational structure in which employees are assigned to both functional and project managers

Functional Organizational Structure

work is arranged within main business functions such as production, operations, marketing, and human resources

Product Organizational Structure

Split up by product type. Specialized people, but not cost-efficient

Customer Organizational Structure

Organized by specific needs of different customers. Ensures all of the needs of the customer are met

Geographic Organizational Structure

Sorted by geographical region. Ensures the specific demands and differences of each geographical customer are met

Hourly Wages

fixed amount of pay for each hour worked

Salary

A fixed amount of money paid to an employee for each pay period. It does not specify the amount of hours the employee has to work

Salary Plus Commission

person receives base salary plus commission based on dollar amount of their sales. This serves as an incentive to get the employees to work harder

Commission

An amount paid to an employee based on their performance and sales

Incentive Bonus

Additional money or other reward offered as motivation or a reward for excellent performance

Performance-Based Pay

A situation where an individual's performance on the job is the basis for the amount and timing of pay increases

Fee for Service

system in which a bill is generated and a fee is paid every time a provider does something for a patient

Stock Options

certain employees are given the right to buy stock at a future date for a discounted price

Royalty and Licensing Fee

Payment given when you write a book, record or a song or have an idea you can sell

NDAs

a legal document used to protect sensitive (confidential) information from being shared with others

Compensation

something given to make up for something else

Benefits

Compensation in forms other than direct payment

Autocratic Management

The manager makes all decisions and there is little to no consultation with workers

Paternalistic Management

The manager makes the decisions in the best interest of their workers

Democratic Management

employees are involved in decision making and the manager provides less direction

Laissez-faire Management

employees are left to make many of the decisions rather than receiving clear instructions from their seniors

Sourcing

Buying raw materials and supplies needed to produce the final product and operate the facility

Production

The process of creating goods and services

Quality Control

Acceptance or rejection of final product based on specific standards set by the company or government

Product Recalls

The withdrawal from sale by the manufacturer of a defective or contaminated item.

Classification

Separating goods into groups based on size or quantity

Personal/Gross Income

the total amount of income from wages before any payroll deductions

Discretionary Income

the money that remains after paying for taxes and necessities

Net Pay

Amount of income left after taxes and deductions have been taken out.

Net Income

when revenues exceed expenses

Net Loss

The amount by which expenses exceed revenues.

Matching Principle

recognize expenses in the same period as the revenues they help to generate