Business Essentials- Chapter 1

Front 1

What is a Business?

Back 1

A business in an Organization that seeks to earn Profits by providing goods and services.

Front 2

What is Profit?

Back 2

Profit is what remains after a business's expenses are subtracted from its sales revenues.

Front 3

what is an Economic System?

Back 3

an Economic System is the way in which a nation allocates its resources among its citizens

Front 4

what are the 5 factors of production?

Back 4

the factors of production are the resources used to produce goods and services , they are Labour, capitol, entrepreneures, natural resources, and information technologies

Front 5

What is Labour?

Back 5

Labour is the mental and physical training and talents of people; sometimes called human resources.

Front 6

What is Capital

Back 6

The funds needed to operate an enterprise

Front 7

who is an entrepreneur?

Back 7

An individual who organizes and manages labour, capitol, and natural resources to produce goods and services to earn a profit, but who also runs the risk of failure.

Front 8

what are Natural Resources?

Back 8

they are items used in the production of goods and services in their natural state.

Front 9

what are information resources?

Back 9

information such as market forecasts, economic data, and specialized knowledge of employees that is useful to a business and that helps it achieve its goals.

Front 10

what is a command Economy?

Back 10

it is an economic system in which government controls all or most factors of production, and makes all or most production decisions.

Front 11

What is a Market Economy?

Back 11

it is an economic system in which individuals control all or most factors of production and make all or most production decisions.

Front 12

Communism

Back 12

A type of Command economy in which the government owns and operates all industries.

Front 13

What is Socialism?

Back 13

a kind of command economy in which the government owns and operates the main industries , while individuals own and operate less crucial industries

Front 14

Define "market"

Back 14

it is an exchange process between buyers and sellers of a particular good or service

Front 15

what is the input market?

Back 15

firms buy resources that they need in the production of goods and services

Front 16

what is the output market?

Back 16

firms supply goods and services in response to demand on the part of consumers.

Front 17

What is Capitalism?

Back 17

an economic system in which markets decide what when and for whom to produce goods.

Front 18

What is a mixed market economy?

Back 18

an economic system with elements of both a command economy and a market economy, the most common economic system used today in most nation's economy.

Front 19

What is Nationlization?

Back 19

the transfer of activities from private firms to the government.

Front 20

what is deregulation?

Back 20

a reduction in the number of laws affecting business activity

Front 21

How do governments influence businesses?

Back 21

the government influences businesses by acting as a customer, competitor, regulator, taxation agent, and as a provider of incentives and financial assitance.

Front 22

Canadian radio television and telecommunication commission

Back 22

regulates and supervises all aspects of the canadian broadcasting system

Front 23

Canadian Wheat Board

Back 23

regulates the price farmers recieve for their wheat

Front 24

Hazardous Products Act

Back 24

regulates banned products and products that can be sold but must be labelled hazardous

Front 25

Tobacco Act

Back 25

Prohibits cigarette advertising on billboards and in retail stores, and assigns financial penalties to violators

Front 26

Weights and Measures Act

Back 26

Sets Standards of accuracy for weighing and measuring devices.

Front 27

Textile Labelling Act

Back 27

Regulates the labelling, sale, importation, and advertising of consumer textile articles

Front 28

Food and Drug Act

Back 28

Prohibits the sale of food unfit for human consumption and regulates food advertising.

Front 29

Canada Water Act

Back 29

Controls water quality in fresh and marine waters of Canada

Front 30

Fisheries Act

Back 30

Regulates discharge of harmful substances into water

Front 31

Enviromental Contaminants Act

Back 31

establishes regulations for airborne substances that are a danger to human health or to the environment

Front 32

Revenue Taxes

Back 32

Taxes whose main purpose is to fund government services and programs.

Front 33

Progressive Revenue Taxes

Back 33

Taxes levied at a higher rate on higher income taxpayers and at a lower rate on lower income taxpayers

Front 34

Regressive revenue Taxes

Back 34

Taxes that cause poorer people a higher percentafe of income than richer people pay.

Front 35

Restrictive Taxes

Back 35

Taxes levied to control certain activities that legislators believe should be controlled.

Front 36

Lobbyist

Back 36

a person hired by a company or an industry to represent its interests with government officials

Front 37

Trade Associations

Back 37

An organization dedicated to promoting the interests and assisting the members of a particular industry

Front 38

Market

Back 38

An exhange process between Buyers and sellers of a particular good or service

Front 39

Demand

Back 39

The willingness and ability of buyers to purchase a product or service

Front 40

Law of Demand

Back 40

the principle that buyers will purchase more of a product as price drops

Front 41

law of Supply

Back 41

The principle that producers will offer more of a product as a price rises

Front 42

Demand and supply schedule

Back 42

Assessment of the relationships between different levels of demand and supply at different price levels

Front 43

Demand Curve

Back 43

Graph showing how many units of a product will be demanded (bought) at different prices

Front 44

Supply Curve

Back 44

Graph sowing how many units of a product will be supplied at different prices

Front 45

Market Price (Equilibrium price)

Back 45

Profit Maximizing price at which the quantity of goods demanded and the quantity and the quantity supplied will be equal

Front 46

Surplus

Back 46

situation in which quantity supplied exceeds quantity Demanded

Front 47

Shortage

Back 47

situation in which quantity Demanded exceeds quantity supplied

Front 48

Private Enterprise

Back 48

An Economic system characterized by private property rights , freedom of choice, profit and competition

Front 49

Private Property

Back 49

ownership of the resources used to create wealth is in the hands of individuals

Front 50

Freedom of Choice

Back 50

You can sell your labour to any employer you choose, you can also choose which products to buy and producers can usually choose whom to hire and what to produce

Front 51

Profits

Back 51

the lure of profits and freedom, leads some people to abandon the security of working for someone else and to assume the risks of enterpreneurship

Front 52

Competition

Back 52

the vying amond businesses in a particular market or industry to best satisfy consumer demands and earn profits

Front 53

Perfect competition

Back 53

A market or industry characterized by a very large number of small firms producting an identical product so that none of the firms has any ability to influence price.

Front 54

Monopolistic Competition

Back 54

A market or industry characterized by a large number of firms supplying products that are similar but distinctive enough from one another to give firms some ability to influence price.

Front 55

Oligopoly

Back 55

a market or industry characterized by a small number of very large firms that have the power to influence the price of their products and or resources.

Front 56

Monopoly

Back 56

a market or Industry with only one producer, who can set the price of its products and or resources

Front 57

Natural Monopoly

Back 57

A market or industry in which having only one producer is most efficient because it can meet all consumer's demand for the product

Front 58

Industrial Revolution

Back 58

A major change in goods that began in England in the Mid Eighteenth Century and was characterized by a shift to the factory system, mass production, and specialization of labour

Front 59

Factory System

Back 59

A process in which all the machinery, materials , and workers required to produce a good in large quantites are bought in one place

Front 60

Mass Production

Back 60

The manufacture of products of uniform quality in large quantities

Front 61

Specialzation

Back 61

The breaking down of complex operations into simple tasks that are easily learned and performed

Front 62

Entrepreneurial Era

Back 62

the period during the last half of the nineteenth century when businesses operated with very little governement, regulation and businesses made large profits, often at the expense of consumers.

Front 63

Production Era

Back 63

the period during the early twntieth century when businesses focused almost exclusivly on improving prodictivity and manufacturing methods.

Front 64

Sales Era

Back 64

The period during the 1930s and 1940s when businesses focused on sales forces advertising , and keeping products readily available

Front 65

Marketing Era

Back 65

the period during the 1950s and 1960s when businesses began to identify and meet consumer wants in order to make a profit

Front 66

Finance Era

Back 66

The period during the 1980s when there were many mergers and much buying and selling of business enterprises

Front 67

Global Era

Back 67

the period during the late twentieth and early twenty first century when a truly global economy emerged