RSM100 - 1: Intro to Commerce & Canadian Business History

A comprehensive set of vocabulary flashcards covering business, economic concepts, market structures, policies, eras in business history, modern trends, and global economic considerations drawn from the notes.

Business

Profit-seeking activities and enterprises that provide goods and services in an economy, which raise living standards through buyer-seller exchange.

Profits

Rewards and incentives for business owners; income earned after costs are covered.

Not-for-profit organizations

Establishments with goals other than profit, operating in public and private sectors and funded by donations; focus on public service.

Public sector

Government-owned or -funded entities such as government agencies, political parties, and unions that serve the public interest.

Private sector

Businesses and organizations operated for profit or charitable purposes, including museums, libraries, and trade associations.

Funding sources (not-for-profit)

Revenue coming from both private donations and public/government sources to support operations.

Natural resources

Production inputs found in nature (land, forests, water, minerals) useful in their natural state.

Capital

Technology, machinery, tools, information, and physical facilities used to produce goods and services; continually acquired and upgraded to stay competitive.

Human resources

People who contribute labor and intellect to an organization, from CEO to self-employed workers.

Entrepreneurship

Willingness to take risks to create or operate a business and bring new opportunities to market.

Private Enterprise System (Capitalism)

An economic system that rewards firms for identifying/serving customer needs with limited government interference; guided by competition.

Invisible hand

Metaphor for the self-regulating nature of the market in capitalism, where competition guides resources to where they are most valued.

Competitive differentiation

A unique combination of abilities, products, and approaches that sets a company apart from competitors in customers’ minds.

Right to private property

The principle that individuals may own, use, sell, buy, and pass down property.

Profit (private enterprise context)

Right to all after-tax profit earned from business activities when revenues exceed costs.

Freedom of choice

Citizen empowerment to select employment, purchases, and investments; maximizes individual wealth in a private enterprise system.

Fair competition

Public rules against practices that reduce competition (e.g., price discrimination, fraud, deceptive advertising).

Entrepreneur (definition)

A risk-taker who starts, owns, and operates a business, using capital and talent to gain profit and drive innovation.

Colonial period (history of business)

Early period focused on agriculture and trade with Indigenous peoples and Europe; dependent on Europe for manufactured goods.

Industrial revolution (history)

Era of factories and mass production using machines and semi-skilled labor to increase efficiency.

Age of industrial entrepreneurs

Period of inventors and innovators who created new production methods and products to raise living standards.

Production era

Era of mass production and assembly lines emphasizing internal processes in firms.

Marketing era

Period focused on understanding consumer needs, branding, and advertising to drive demand.

Relationship era

Era emphasizing technology and social media to build long-term customer loyalty and relationships.

Social era

Business era where firms connect with customers via technology, emphasizing value through relationships.

Consumer orientation

Business philosophy prioritizing satisfying unmet consumer wants and needs.

Branding

Process of creating a distinct identity for a product, service, or company in consumers’ minds.

Brand

Name, term, symbol, or design that identifies products from a specific company.

Strategic alliance

A partnership formed to create a competitive advantage for the participating firms.

First-class workforce

Top-tier employees who form the foundation of a firm’s competitive differentiation.

Outsourcing

Using outside vendors to produce goods or provide services previously done in-house.

Offshoring

Relocating processes to lower-cost locations overseas.

Nearshoring

Outsourcing production or services to locations near the firm’s home base.

Multigenerational workforce

A diverse workforce spanning several generations, presenting both opportunities and challenges.

Diversity in the workforce

Inclusion of varied backgrounds and perspectives to enhance performance and reduce legal risk.

Productivity

Output achieved per unit of input; higher productivity drives economic growth.

GDP (Gross Domestic Product)

Total value of goods and services produced within a country; a measure of economic activity.

GDP per capita

Average economic output per person, used to gauge living standards.

Inflation

Rising overall price levels that reduce purchasing power; caused by demand-pull or cost-push factors.

Core inflation

Inflation measure excluding volatile items like energy and food prices.

CPI (Consumer Price Index)

Index tracking month-to-month changes in prices paid by consumers for a representative basket of goods.

PPI (Producer Price Index)

Index tracking prices received by producers for their goods and services.

Unemployment rate

Percentage of the labor force that is actively seeking work but is unemployed.

Frictional unemployment

Temporary unemployment as people move between jobs or into the workforce.

Seasonal unemployment

Unemployment tied to regular seasonal patterns in certain industries.

Cyclical unemployment

Unemployment caused by economic downturns or business cycles.

Structural unemployment

Long-term mismatch between workers’ skills and job opportunities.

Monetary policy

Government/central bank actions to control money supply and interest rates.

Expansionary monetary policy

Increase money supply and lower interest rates to boost loans, spending, and employment.

Restrictive monetary policy

Reduce money supply and raise interest rates to curb inflation and overheating.

Quantitative easing

Central bank purchases government securities to inject liquidity into the economy.

Bank of Canada

Canada’s central bank; sets policy rates and banking requirements; independent from government.

U.S. Federal Reserve (Fed)

America’s central bank; oversees monetary policy and financial stability.

Fiscal policy

Government use of taxes and spending to influence economic activity.

Budget

Annual plan outlining expected government revenue and expenditures.

Budget deficit

Situation where spending exceeds revenue, leading to borrowing.

National debt

Accumulated amount the government owes to lenders from past deficits.

Budget surplus

Situation where revenue exceeds spending.

Balanced budget

Revenue equals spending; no deficit or surplus.

Debt per person

Average amount of national debt attributable to each citizen.

Global risks

Top global threats such as climate action failure, extreme weather, biodiversity loss, social erosion, and debt crises.

Globalization & business

Firms operate as multinationals across borders; opportunities include larger markets but risks like quality control.

Multinationals

Companies with production and operations in multiple countries.

Economic analyst (career)

Professional who analyzes GDP, inflation, jobs, and markets to forecast trends and advise.

Skills for economists/analysts

Research, data analysis, logical reasoning, problem-solving, and clear reporting.

Outlook for economy

Projected growth around 6% annually, driven mainly by the private sector.