business multiple choice

Service Business

Provides services that aren't physical products (e.g., hair salons, banks).

Merchandising Business

Buys finished products and resells them for profit (e.g., Walmart, Best Buy).

Manufacturing Business

Uses raw materials to produce finished goods (e.g., Toyota, General Mills).

Non-Profit Organization

Exists to serve a social cause, not to make profit (e.g., Red Cross, Habitat for Humanity).

Online Business

Operates mainly through the internet (e.g., Amazon, Shopify stores).

Brick-and-Mortar Business

Has a physical location for sales (e.g., local grocery store, mall shop).

Sole Proprietorship

One person owns and operates the business with full control and unlimited liability.

Partnership

Two or more people share ownership and responsibilities.

Corporation

A separate legal entity offering limited liability with profits taxed twice.

Franchise

A franchisee pays to operate using a larger brand’s name and systems.

Cooperative

Owned by a group of individuals for mutual benefit with democratic decision-making.

Natural Resources

Materials found in nature used in production (e.g., oil, water, minerals).

Human Resources

People’s labour, skills, and knowledge utilized in production.

Capital Resources

Equipment, machinery, tools, and money used in production.

Entrepreneurship

The drive and risk-taking to combine resources and create businesses.

Wages

Pay based on hourly work.

Salary

A fixed annual amount divided into pay periods.

Commission

Earnings based on sales made (e.g., real estate agents).

Bonuses

Additional pay based on performance or results.

Benefits

Non-wage perks such as vacation pay, dental plans, and health insurance.

Assets

What the business owns (e.g., cash, equipment, accounts receivable).

Liabilities

What the business owes (e.g., loans, accounts payable).

Owner’s Equity (OE)

The value left after liabilities are subtracted from assets.

Revenue

Money earned from business operations.

Expenses

Costs involved in earning revenue.

Drawings

When the owner takes money out for personal use.

Balance Sheet

A snapshot of financial position at a point in time.

Income Statement

Shows profit or loss over a period, with the formula: Revenue – Expenses = Net Income or Net Loss.

Recruitment

Attracting and selecting suitable candidates for a job.

Onboarding and Training

Teaching new employees job-specific tasks.

Performance Appraisals

Reviewing employee contributions and setting goals.

Compensation and Benefits

Providing wages, bonuses, and benefits to employees.

Termination

Ends employment, which can be voluntary or involuntary.

Progressive Tax System

Higher income results in higher tax rate.

Tax Calculation

Tax = Income in bracket × Rate.

Savings Account

Low risk and return, easy access to funds.

GICs (Guaranteed Investment Certificates)

Low risk, locked in for a set term.

Bonds

Loans to governments or companies, moderate risk and returns.

Stocks

Ownership in a company, higher risk with potential high reward.

Mutual Funds

Group investment managed by professionals, varies in risk.

Chequing Account

For daily use like spending and withdrawals.

TFSA (Tax-Free Savings Account)

Earn income/gains without paying tax on it.

RRSP (Registered Retirement Savings Plan)

Tax-deferred savings for retirement.

Down Payment

Minimum of 5% required for home purchases in Canada.

Equity

The portion of the home you own (home value – mortgage).

Capital Appreciation

Increase in home value over time.

Fixed Rate Mortgage

Interest rate stays the same for the term of the loan.

Variable Rate Mortgage

Interest rate can change with the market conditions.

Open Mortgage

Can be paid off early without penalty.

Closed Mortgage

Has penalties for early repayment.

Amortization Period

Total time to pay off the mortgage (e.g., 25 years).