Business exam review

For-profit business

An organization that aims to earn profit

Non-profit business

Organized by collective money

Economic resourses

inputs used in the production of goods and services, including land, labor, and capital

SMART goals

Provides a sense of priority and urgancy

Human capital

Attributes of an employee (prior education, skills, intelligence, health, loyalty and puntuality)

Outsourcing

Business strikes deal with a third party in the same country to carry out specific task

Laissez-faire leader

A leadership style characterized by minimal direct supervision and a hands-off approach, allowing employees to make decisions and work independently

4 P’s in marketing

Product, Price, Place, Promotion

Liquidity

The ability of an asset to be quickly converted into cash without significantly affecting its value

Producers

People making the product or service

Consumers

People buying the product or service

Money

Form of curency used for exchange

Business plan

Plan for businesses future objectives and strategies to achieve those goals

Law of supply and demand

Markets ability to produce goods and services based on consumer demand and supplier availability

Market equilibrian

When the supply in the market is equal to the demand

Human resources

The process of finding, evaluating, hiring and firing employees

Components of a print ad

Attention, interest, desire and action

Franchise

An agreement or license between two legally independent parties

Forms of compensation

Various methods used to reward employees for their works including salary, wages, bonuses, benefits and non-monetary rewards

Marketing

Process of planning and preparing goods and services from creation to sale

Celebrity marketing

Uses a celebrities fame and image to promote a product

Database marketing

Uses customer data to create a targeted market campaign

Viral marketing

Customers share information about a company throught the internet

Green marketing

Products are ecofriendly or have a positive impact on the planet

Jingle marketing

Company uses a short song or tune in thier advertisments

guerilla marketing

Low cost marketing strategies that are unconventional

Direct competition

Products are virtually identical

Indirect competition

Different products but could substitute eachother

Goods

Physical tangible objects able to purchase

Service

Intangible activities bought through interaction

Sole propriership

Business owned and operated by a single individual

Partnership

Two or more individuals share ownership and operation of business

Corporation

Treated as a person in its own rights legally separated from the owners

Primary industries

Businesses that exploit natural resources

Secondary industries

Transforms raw materials into finished goods

Tertiary industries

Service sector of industries

International business

Canadians doing business abraod through other countries

New economy

The shift of the economy changing from mainly manufacturing to a service industry