Business: Unit 1

What are the five steps in the decision making model?

1. Define the decision to be made. 2. Identify the alternatives. 3. Evaluate the alternatives. 4. Make a decisions and take action. 5. Evaluate the decision.

What is a service business?

A business that generates profit by doing something for other businesses or consumers.

What is a manufacturing business?

A business that generates profit by producing products from raw materials or component parts (semi processed) and then selling them to distributors/retailers.

What is a retail business?

A business that generates profits by selling things. Usually buys items from a manufacturer and then sells them to the consumer.

What is a corporation?

A business that has many shareholders, one vote per share, and a board of directors.

What is a sole proprietorship?

A business that has only one owner who is responsible for everything.

What is a crown corporation?

A business that is owned and operated by the municipal, the provincial, or the federal government.

What are cooperatives?

A business that is owned by members who each have one vote regardless of the number of shares and has a board of directors.

What is a partnership?

A business with two or more owners and has a written partnership agreement.

What is a general partner?

A general partner has the same legal responsibilities (such as unlimited liability) as a sole proprietor.

What is a business?

A group, company, or organization that creates income by selling or offering a service or product.

What is a limited partner?

A limited partner's responsibility is limited to the amount the person invested (meaning creditors cannot come after personal assets).

What is an entrepreneur?

A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

For workers, what is part of the quality of life?

Adequate incomes, raises, benefits packages, health services, recreational and educational programs.

What are some examples of natural resources?

Agriculture, fishing, trapping, mining, water, fuel, energy, logging, and forestry.

What are some examples of companies the have had privatization?

Air Canada and Petro Canada.

What is a non profit business?

An organization that has a purpose other than profit and it may still be interested in raising funds but it will be for a specific goal.

What is a for profit business?

An organization that produces or sells goods or services to satisfy the needs, wants, and demands of consumers for the purpose of making a profit.

What is a marketplace?

Any location where producers and consumers come together.

What are services?

Assistance provided, usually in return for payment, to satisfy needs/wants of people or business.

What are some examples of physiological needs?

Breathing, food, water, shelter, clothing, and sleep.

How long do business cycles take?

Business cycles often take 8-10 years.

Why might a business ignore the last step in the decision making model?

Businesses may forget or based on a good amount of profit from the product they may choose not to bother.

What is the private sector?

Businesses that are individually owned and operated and the primary purpose is usually to make a profit.

What is the public sector?

Businesses that are owned by federal, provincial, or municipal governments (employers).

What are producers?

Businesses that make goods or provide services.

What is competition?

Businesses which to charge less to attract more consumers but in order to charge less, they need to be more efficient which can lead to jobs cuts.

What are the four groups income can be generated for?

Businesses, employees, government(s), and communities.

What are some examples of service businesses?

Cable companies, airlines, theatres, and movers.

What are some examples of crown corporations?

Canada post, VIA Rail Canada, and CBC.

What conditions impact the supply of good and services?

Change in numbers of producers, changes in price, changes in technology, changing expectations for the future, and changing production costs.

What conditions create demand of goods and services?

Changing consumer income, changing consumer tastes, changing expectations for the future, and changes in population.

What are some examples of esteem?

Confidence, achievement, respect of others, and the need to be a unique individual.

What is the job market influenced by?

Consumer demand, business cycles, technological improvements, and competition.

What does the expression "a change in expectations of future conditions" mean?

Consumers and businesses usually try to predict how future costs and sales will be to determine how to adapt to changes of goods and services.

What are expenses?

Cost that are incurred in running a business.

What are the disadvantages of a cooperative?

Decision-making process could be difficult.

What are some examples of retail businesses?

Department stores, electronic shops, and grocery stores.

How does taxation work in a partnership?

Each partner files an individual income tax that includes their earnings from the business.

What are public servants?

Employees of the various levels of government.

What are some examples of human resources?

Farmers, factory workers, construction workers, website designers, teachers, nurses, and pilots.

What are capital resources?

Financial resources (money, stocks, bonds) and machinery equipment, tools, trucks, factories, buildings, and other long lived assets.

What are the two classifications of a business?

For profit and non profit.

What are some examples of love and belonging (social)?

Friendship, family, intimacy, and sense of connection.

What are the two types of partnerships?

General partners and limited partners.

What are the five impacts of business?

Generation of jobs, generation of income, standard of living, quality of life, and the changing community.

Who is Abraham Maslow?

He was a famous psychologist who studied human behaviour and discovered that behaviour is motivated by various needs.

What are some examples of safety and security?

Health, employment, property, family and social stability.

What is profit?

Income that is left after all costs and expenses are paid.

What is the relative measure for an individual's standard of living?

It varies based on personal values and goals.

What are goods?

Items that have monetary value and can be seen and touched. (Tangible)

What are raw materials?

Items used in the manufacturing of other goods and are often the items gathered from extractive industries.

What is information?

Knowledge and data about new technology, customers, competitors, political conditions, and sources of supply.

What are the advantages of a cooperative?

Less expensive goods/services, and is easily set up.

What are the advantages of a corporation?

Limited liability and transfer of ownership is simple.

What are some examples of a marketplace?

Malls, farmer's market, and restaurants.

What are natural resources?

Materials supplied by nature from which everything in the world is made (primary or extractive industry).

What are some examples of self actualization?

Morality, creativity, spontaneity, acceptance, experience, purpose, meaning, and inner potential.

What are the advantages of a partnership?

More capital, easier to finance, and the responsibilities are shared.

What are the 6 factors of production?

Natural resources, raw materials, human resources, management, capital resources, and information.

What are some cons of ignoring the last step in the business making model?

Not evaluating the decision could lead to the product not working effectively and time, money, and customers being lost due to the lack of producing useful goods or services.

What are the disadvantages of a partnership?

Partnership disagreements and general partners have unlimited liability.

What are consumers?

People who use the goods or services provided by businesses.

What are the 5 steps in the hierarchy of needs?

Physiological, safety, social, esteem, and self actualization.

What are the types of corporations?

Private, public, crown, and municipal.

What are the three types of businesses?

Service, retail, and manufacturing.

What are the five types of business ownership?

Sole proprietorships, partnerships, corporations, cooperatives, and franchises.

What are technological improvements?

Technology can increase the efficiency of operations resulting in job loss as technology replaces workers.

What are costs?

The amount of money required for each stage of production.

What are business cycles?

The cycle that businesses occur over time measured by the level of real output as the economy has its ups and downs.

What are the two ways privatization may occur?

The government may stop providing the service, allowing the private sector to fill in the gap or the government may sell their assets to a private buyer.

What is management?

The individuals who make strategic decisions for organizations, including the allocation of the factors of productions such as capital and human resources.

Define the factors of production.

The inputs needed for the creation of goods and services.

What are human resources?

The people who work to create the goods and services.

What happens if there isn't enough of an economic resource?

The price of the goods and services increase, while alternatives must be found for the resource.

What are the two sectors of business?

The private sector and the public sector.

What are the pros of the public sector?

The purpose is to provide services to meet the needs of society and the services are more affordable.

What is the standard of living?

The way a person lives, as measured by kinds and quality of goods and services they can afford.

What are the disadvantages of a sole proprietorship?

There is unlimited liability, financing may be difficult, and the owner may not be familiar with all aspects of business yet.

What are the pros of the private sector?

They are usually more efficient, have a profit motive, and competitive drive innovation.

How does taxation work for a sole proprietorship?

They do not pay income tax on its net income, so the owner must add the net income of the business to his/her personal income and then pay tax on the total.

What are the cons of the private sector?

They may be more concerned with profit than with providing high quality service at an affordable rate.

What are the cons of the public sector?

They may create artificially low prices and are often slow/inefficient.

What are the disadvantages of a corporation?

Timely/costly startup and people who own only a few shares don't have a lost of influence on how the company is run.

What is the purpose of a crown corporation?

To provide services to the public.

Why do government owned businesses/industries switch sectors?

To save the government money or because the private sector may be better suited.

What are some expenses of a business?

Wages, office supplies, and telephone bills.

What are some needs for all members of our society?

Water, food, shelter, clothing, health care, transportation, education, grocery stores, and government.

For communities, what is part of the quality of life?

Wealth, jobs, income, convenience, fair prices, charities, and pollution (air, traffic, noise).

What is privatization?

When a publicly (government) owned business or industry is sold to the private sector.

What is the changing community?

When businesses or residents move causing a business to take the wealth, income and jobs with them or causing a business to be abandoned for one closer to dwellings.

What is consumer demand?

When consumers demand more of a good or service, businesses will need more human capital to produce/market/sell that good or service and vice versa.

What is unlimited liability?

When creditors are able to come after your personal assets due to the business.

Can one business be more than one type of business?

Yes, a manufacturing business can also be retailers if they sell directly to the consumer.

What are the advantages of a sole proprietorship?

You get to be your own boss, easy to start and end, and all the profits go to the owner.