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Eq :emotional quotient/intelligence

Focuses on the strength of certain soft skills, and involves developing greater self-awareness and self-control, and developing the ability to empathize and see a variety of perspectives.

Intrapreneurship

Entrepreneurial activity within a corporate setting, where one is able to help grow their company by being creative to evolve processes or launch new products/services using the company’s existing resources and reputation.

Sustainability

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

Balance of trade

The relationship between importing and exporting.

Favourable balance of trade (trade surplus)

When exports are greater than imports.

Unfavourable balance of trade (trade deficit)

When imports are greater than exports.

Business

An activity that you intend to carry on for profit (e.g., providing goods and services).

Comparative advantage

Countries should sell (export) what they can produce most efficiently, and buy (import) when they cannot.

Contract manufacturing

Involves finding a foreign manufacturer to make your product and then have your own brand name or trademark attached. Also known as outsourcing.

Corporation

An incorporated business that’s considered a separate legal entity apart from its owners. Shareholders of the corporation are not personally liable for debts or acts of the corporation.

Crown corporation

A company owned by the federal or provincial government (also referred to as publicly owned).

Embargo

A ban on the import or export of specific products.

Exporting

The sale of goods and services to another country.

Foreign direct investment (FDI)

Buying permanent property (or a business) and operating in a foreign country.

Foreign subsidiary

A company that is owned by a parent company located in another country.

Franchising

Where someone with a business concept (the franchisor) sells the rights to use the business name and to sell a product or service to another party (known as the franchisee).

Free market economy

Where the market determines what goods and services to produce and who gets them.

Free trade

Where goods and services can be traded between countries without any political or economic obstruction.

Importing

The purchase of goods and services from another country.

Import quota

A limit on the quantity of products that a country imports.

Joint venture

Two or more companies that form a partnership to take on a major project.

Licensing

When a domestic company (known as the licensor) allows a foreign company (known as the licensee) to make its product in exchange for a fee (typically a royalty).

Multinational corporations

Manufacture and market their products in many different countries where they also have a physical presence.

Mixed economy

An economic system where some allocation of resources are made by the market, and some are made by the various levels of government that play an active role in the economy.

Non-tariff barriers

Hinder trade and include regulations such as restrictive standards that detail exactly how a product must be sold in a country.

Partnership

A business created with two or more people who can share knowledge and resources in launching the business.

Privatization

The sale of a publicly-owned corporation.

Small business

An organization that is independently owned and operated, is not dominant in its field, and meets certain standards of size (typically 1 to 99 employees).

Sole proprietorship

A business owned and operated by one person, and exists once you start selling a product or service.

Strategic alliance

Two or more companies that form a long-term partnership to support each other in building competitive market advantages.

Tariffs

Taxes on imports, which raise the price of imported products.

Trade protectionism

Limits the import of goods and services through the use of government regulations.

Benchmark interest rate

The rate at which the Bank of Canada loans money to Canada’s financial institutions.

Business cycles

The rise and fall in economic activity over time, and each cycle can vary in terms of time and severity. The cycles include expansionary, peak, contraction, trough, and recovery.

Consumer Price Index (CPI)

A price index that compares the change in prices for a basket of commonly purchased goods, including items such as food, housing, clothing, transportation, and recreation.

Depression

A severe form of a recession characterized with a longer period of declining economic activity.

Deregulation

Removal of some laws and regulations which can allow for more competition.

Economies of scale

Advantages of having the cost of production spread over a larger number of units produced, so the cost of production per unit declines as the number of units produced increases.

Environmental scan

An assessment of the business environment to see what factors could impact the growth and success of a business in achieving its organizational goals.

Factors of production

Land, labour, capital, entrepreneurship, and knowledge.

Fiscal policy

How the government keeps the economy stable through increases and decreases in both taxes and government spending.

Gross Domestic Product (GDP)

The total value of final goods and services produced within a country in a year.

GDP per capita

The GDP per person in a country.

Inflation

The rise in the price of goods and services over time.

Macroeconomics

Studies what can impact an economy as a whole, including employment levels, interest rates, inflation, and GDP.

Microeconomics

Studies the decisions made by individuals and businesses within the economy.

Monetary policy

Management of the money supply and interest rates.

National debt

The accumulation of government deficits over time.

PEST

An acronym to review the Political, Economic, Social, and Technological factors that could impact how an organization achieves its goal.

Porter’s five forces

To help you assess the competitive landscape reviewing current competitors, potential competitors, substitutes, bargaining power of suppliers, and bargaining power of customers.

Recession

A period where there are two or more consecutive quarters of a decline in GDP.

Stakeholders

Individuals or entities that have an interest or stake in what an organization does. Stakeholders can include customers, suppliers, employees, competitors, government, and unions.

Switching costs

The monetary and psychological costs to change from one product/supplier to another.

SWOT

An assessment of the Strengths, Weaknesses, Opportunities, and Threats for an organization.

Triple bottom line reporting

Where a company reports on their performance with social, environmental, and economic factors. This is also known as reporting around people, planet, and profit.

Unemployment rate

Measured as the percentage of people who are unemployed out of the total labour force (those actively seeking work or working).

Corporate philanthropy

When a company donates money or time/skills to various causes.

Corporate Social Responsibility (CSR)

How a company steps up to take care of those around them in society.

Ethical dilemma

A problem where a difficult choice has to be made with potentially no desirable alternatives.

Ethics

Guiding principles that help us navigate decision-making in a given situation or context.

Fair trade

Ensures producers in developing countries are paid a fair price for the goods that we purchase from them.

Laws

Established rules and regulations within a jurisdiction that govern actions.

Social audit

Evaluating and reporting on how a company is progressing towards their social responsibility priorities.

Sustainable development

Whether business operations and processes can support the needs for current and future generations without negative consequences.

Triple Bottom Line (TBL)

A framework that can be used by organizations to voluntarily report their progress on social, economic, and environmental results for a reporting period.

Whistleblowers

People that step up to report illegal or unethical behaviour.

Balanced scorecard approach

A method of control that looks at both financial and non-financial measures through the assessment of financial, customers, business processes, and learning & growth.

Contingency plans

Planned courses of action to take when your original plans don’t go as anticipated.

Goals

Targets or accomplishments a business wants to achieve that should align with the vision and mission.

Autocratic leadership

Involves making decisions without consulting others.

Democratic leadership

Involves managers and employees working together to share perspectives to make informed decisions.

Laissez-faire leadership

How managers can set goals/targets that employees are free to do what it takes to accomplish.

Conceptual skills

Considers whether an employee can see the big picture through their analytical and critical thinking skills.

Human skills

Interpersonal skills required to interact with internal/external stakeholders and maintain and develop relationships.

Technical skills

The knowledge and ability to perform tasks within a specific discipline.

Maslow’s hierarchy of needs

This considers motivation of employees to fulfill their needs in the following order physiological, safety, love/belonging, esteem, and self-actualization.

Mission statement

Describes the current purpose for an organization and what the company does, essentially how it currently works towards achieving its longer-term vision.

Organizational chart

Provides a great glimpse of how people are organized, detailing the number of employees and various functions, and showing positions and relationships (who’s accountable to who).

Values

Set of fundamental beliefs that guide decision making.

Vision

Describes why an organization exists and where it wants to be by articulating an attractive future. It essentially provides a roadmap for an organization.

Angel investors

Wealthy individuals that typically invest in early-stage businesses. As they invest money into a business, they’ll want some sort of control in how the business is run and to get a return on their investment.

Business model

Captures how you create and deliver value to customers (the value proposition) through your products/services and also capture value as a company (earn money through revenue streams).

Crowdfunding

Raising funds (capital) from people online.

Incubators

Supportive environments that not only provide working space but also advice/support to grow ideas and how to manage a business. This can include coaching, management and operations assistance, networking opportunities, and access to financing.

Intrapreneurship

Where one is able to be creative to launch new products/services or evolve processes using the company’s existing resources and reputation.

Value proposition

The benefits customers can expect from using the products and services of an organization.

Venture capitalists

Individuals or companies that invest in businesses that are already established and will expect a return on their investment.

Business model

Captures how you create and deliver value to customers (the value proposition) through your products/services and also capture value as a company (earn money through revenue streams). (Osterwalder & Pigneur, 2010, p. 14)

Copyright

Legislation which provides an exclusive right to make, reproduce, publish, or perform artistic works, where others who would want to use the work have to buy it or get permission to use it. Copyright exists in Canada for the lifetime of the creator plus 50 years following their death, after which the work becomes part of the public domain where anyone can use it. (Government of Canada, 2016)

Direct channel

When a company has its own stores (whether a physical or online presence) and salespeople.

Fixed costs

Costs that stay the same even if production increases (e.g., salaries, rent).

Freemium

A business model (with the name derived from combining "free" and "premium") where apps are first offered for free, but then provide customers with the ability to download additional premium features through in-app purchases. (Ovans, 2015)

Indirect channel

When a company’s products/services are provided through an intermediary, such as a retailer.

Intangible resources

Assets that a company owns that are not physical in nature.

Patents

Protections that cover new inventions or improvements to existing inventions, and gives the inventor the right to stop others from making, using, or selling the invention for the period of the patent which is typically 20 years. (Government of Canada, 2018)

Recurring revenue streams

Revenue streams that are ongoing payments, such as monthly subscriptions.

Tangible resources

Assets that a company owns that are physical in nature.

Transactional revenue streams

Revenue streams that are one-time payments, such as a one-time payment to purchase a device.

Value proposition

The benefits customers can expect from using the products and services of an organization. (Osterwalder & Pigneur, 2010, p. 22)

Variable costs

Costs that will change if production increases (e.g., additional raw materials to produce additional units).