Business Studies & Economics Comprehensive Review

Vocabulary practice flashcards covering business ownership, communication, economics, corporate finance, market structures, contracts, banking, and office systems based on the lecture review.

Sole proprietorship

A business owned and operated by one person who makes decisions and receives the profits, but is also responsible for all debts.

General partnership

A business owned by two or more people where partners share profits, responsibilities, decision making, and liability or debts.

Limited Partnership

A partnership with at least one general partner and one or more limited partners; limited partners only risk the money they invest, while general partners carry more responsibility and liability.

Limited Liability Partnership

A business structure common amongst professional businesses where partners generally receive protection from certain liabilities caused by the actions of other partners.

Corporation

A business that is legally separate from its owners (called shareholders); it owns property, contracts, money, and debts independently of its owners.

Co-operative (Co-op)

A business owned and controlled by its members, who work to meet a shared goal and have a say in how the company operates.

Joint Venture

A business arrangement where two or more people or businesses work together on a specific project, opportunity, or business activity, sharing resources, responsibilities, and profits according to an agreement.

Downward Communication

Communication flowing from top to bottom, where information moves from higher-level employees to lower-level employees.

Upward Communication

Communication flowing from bottom to top, where information moves from lower-level employees to higher-level employees.

Lateral Communication

Communication where information flows between employees or departments at the same organizational level.

Diagonal Communication

Communication across levels and departments between people who do not have a direct reporting relationship.

Industrial Materials

Raw or processed materials that become part of the finished product.

Industrial Equipment

Large, long-lasting machines or tools used to produce goods or provide services.

Industrial Parts

Components that become part of a larger product or machine.

Industrial Supplies

Items used to operate or maintain a business that do not become part of the final product.

Noneconomic Need

Something you must have that does not require money to obtain.

Economic Need

Something you must have to survive or function that requires money or resources.

Economic Want

Something you would like to have that you do not need to survive and obtain through spending money.

Noneconomic Want

Something you would like to have or experience that does not require money.

Debt Financing

Raising money by borrowing it and repaying it with interest.

Franchising

An arrangement that allows someone to operate using another company's established brand and business system.

Monopoly

A market structure where one business controls the supply of a particular product or service, making it the dominant or only seller with very few or no close competitors.

Natural Monopoly

A market where one company can provide a good or service more efficiently because the industry has very high infrastructure costs.

Geographic Monopoly

A monopoly where a business has little or no competition because of its location or because the market is too small for competitors.

Technological Monopoly

A monopoly where a company has control because it possesses superior technology, knowledge, or innovation that competitors do not have.

Authoritarian Decision Making

A style where the leader makes the decision alone and tells employees what to do, with little employee input.

Democratic Decision Making

A style where the leader asks employees for their opinions and input before making a decision.

Laissez-Faire Decision Making

A style where the leader gives employees a lot of freedom to make their own decisions with little supervision.

Ethnocentrism

The belief that your own culture, values, customs, or way of life is better or more correct than those of other cultures.

Standing Committee

A permanent or ongoing committee within an organization that continues to exist and handles recurring responsibilities.

Ad hoc Committee

A committee created specifically to deal with a specific problem or issue.

Audit Committee

A committee common in corporations that oversees financial reporting, internal controls, and auditing.

Consumer Credit

Personal debt used by individuals to buy goods and services without needing to provide collateral.

Revolving Credit

Credit where a borrower has a credit limit and can borrow, repay, and borrow again as long as they stay within the limit.

Installment Credit

Credit where a borrower receives a specific amount and repays it in fixed, scheduled payments over a set period.

Secured Credit

Credit where the loan is backed by collateral (something valuable the lender can claim if the borrower does not repay).

Unsecured Credit

Credit where no collateral is required and the lender relies primarily on the borrower's creditworthiness.

Consideration

Something of value exchanged between parties in a contract, usually consisting of money, goods, services, or a promise to do something.

Breach of Contract

The failure of one party to fulfill a contractual obligation.

Intellectual Property

Legal protection for creations of the mind, such as inventions, logos, artistic works, and brand names.

Reconciling Bank Statements

The process of comparing a business's own accounting records with the bank's records to identify and explain differences in balances.

Due Bill

A bill or amount of money that must be paid to the government.

Discount Broker

A broker who executes trades for a lower fee but provides little or no personalized investment advice.

Full-service Broker

A broker who provides personalized advice, research, financial planning, and investment management, usually for higher fees.

Certificate of Deposit (CD)

A lending investment where money is lent to a bank for a fixed period in exchange for a usually fixed interest rate; known in Canada as a GIC.

Treasury Bill (T-Bill)

A short-term loan made to a government, usually lasting less than one year.

Working Capital

The money and resources available for day-to-day operations, calculated as: $\text{Working Capital} = \text{Current Assets} - \text{Current Liabilities}$.

Cash Conversion Cycle (CCC)

A metric measuring how long it takes a business to turn money spent on inventory into cash collected from customers.

Human Capital

The knowledge, skills, experience, and abilities of employees that create value for a business.

Venture Capital

Money invested in new or high-growth businesses, usually provided by specialized investors.

Transaction Processing System (TPS)

An information system that records and processes everyday business transactions.

Enterprise Resource Planning (ERP)

An integrated system designed to manage and combine various business functions into a single system.

Intranet

A private internal network used exclusively by an organization.

Extranet

A private network that grants authorized outsiders limited access to company information.

Scarcity

The fundamental economic condition where resources are limited while wants and needs are unlimited.

Opportunity Cost

The next best alternative you give up when making a choice.

Price Fixing

An agreement among competitors on prices instead of competing against one another; generally illegal.

Predatory Pricing

Temporarily setting prices extremely low to drive competitors out of the market, potentially violating competition law.

Price Gouging

Charging extremely high prices during emergencies.

Yielding Conflict Response Mode

A conflict-response style where an individual gives in to the other person's wants or position to maintain the relationship or avoid further conflict.

Quality Circle

A small group of employees who meet regularly to identify problems and suggest ways to improve quality, efficiency, or workplace processes.

Gross Profit

The profit earned on sales before subtracting operating expenses, defined as: $\text{Gross profit} = \text{Sales revenue} - \text{COGS}$.

Check Register

A record used to track money entering and leaving a bank account, detailing dates, descriptions, cheque numbers, credits, debits, and remaining balances.

Overdraft Fee

A bank charge incurred when spending or withdrawing more money than is available in an account.

Groupware

Software that enables people to work together, communicate, and collaborate on shared tasks or projects, often from different locations.

Pilferage

The theft of small amounts of goods or money, frequently committed by employees or customers.

Inside Address

The recipient's address written in a formal business letter indicating who the letter is sent to, their title, company, and location.

Credit Union

A member-owned financial institution that provides financial services such as accounts and loans, owned collectively by the members who hold shares.

Horseplay

Rough, playful, or joking physical behaviour in the workplace that can create a risk of injury or accidents.

Public Employment Agency

A government-run organization that assists individuals in finding employment and helps employers find workers.

Law of Demand

The economic principle that when price increases, quantity demanded decreases; when price decreases, quantity demanded increases, assuming other factors remain constant.

Law of Supply

The economic principle that when price increases, quantity supplied increases; when price decreases, quantity supplied decreases, assuming other factors remain constant.

Seller's Market

A market condition in which demand exceeds supply, giving sellers an advantage because multiple buyers compete for limited products.

Buyer's Market

A market condition where supply exceeds demand, granting buyers greater negotiating power.