BUSINESS Exam Study Guide 2022 with complete solutions

Law of Supply - ANSWER When price increases, supply increases Law of Demand - ANSWER When price decreases, demand increases Insolvent - ANSWER When a business cannot pay its debt Franchiser - ANSWER a business t ...

Law of Supply - ANSWER When price increases, supply increases Law of Demand - ANSWER When price decreases, demand increases Insolvent - ANSWER When a business cannot pay its debt Franchiser - ANSWER a business that licenses it's name, operating produces, and business expertise to another business Franchisee - ANSWER A person who buys a license to operate a ready-made business Unlimited Liability - ANSWER When a business owner is responsible for all debts and losses Limited Liability - ANSWER When a business owner does not lose personal investments put into a company Dividend - ANSWER When a company makes a profit and sends shareholders a little bit of money Shareholder - ANSWER A person that owns a share in a corporation, aka a stock Barriers to Entry - ANSWER Factors that prevent competitors form being profitable in a given market Early Adoptoers - ANSWER A person who likes to be the first to try a product Launch - ANSWER When a business's product first enters the market place Cash Cow - ANSWER A product that has been in the maturity stage for a longer period of time Obsolete - ANSWER When a product isn't being sold at all. An example would be typewriters Marketing - ANSWER All the activities involved in getting goods and services from the business that produce them to the consumers who wish to purchase Conspicuous Comsumption - ANSWER when a person buys something to impress others Lifestyle Advertising - ANSWER When a company try to convince you that their product will make your life better Knockoff - ANSWER A cheaper version of an existing product. Usually a fad product Competitive Edge - ANSWER An obvious advantage over other products Channels of Distribution - ANSWER The paths of ownership or control that goods follow as they pass from the producer or manufacturer to the consumer Push Strategy - ANSWER A marketing strategy whose objective is to sell products to the retailer Pull Strategy - ANSWER A marketing strategy whose main objective is to increase consumer demand Shelf Allowance - ANSWER When a company pays a store to allow their product onto a specific spot ion the store Brand Extension - ANSWER When a company extends the logo and brand name from an existing product to another one Brand Identity - ANSWER Invention/Innovation - ANSWER ____________An original idea that someone creates ____________When someone revamps/changes something about an existing product Intellectual Property - ANSWER inventions and ideas are examples of... Patent - ANSWER A temporary protection of an invention that prevents others from stealing the idea Copyright - ANSWER A protection against people stealing a product idea and lasts 50 years Net Income (profit) - ANSWER When a company makes enough money to pay off expenses and have money left over Revenue - ANSWER The total amount of money a business makes Variable Cost/Expense - ANSWER A cost that changes frequently. Ex: Gas Fixed Cost/Expense - ANSWER A cost that doesn't change often. Ex: Rent Asset - ANSWER Anything that has value to a business Liability - ANSWER Any debts a business has Owner's Equity - ANSWER the value of a business to an owner Accounting Equation - ANSWER Assets = Liabilities + Shareholder Equity Entrepreneur - ANSWER a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so. Employee Layoff - ANSWER The rate at which employees are fired Severance Package - ANSWER The final paycheck of an employee after they are laid off Pension - ANSWER when a retired citizen is still being payed a regular salary by the government Corrective Interview - ANSWER when an employee is slacking off so the employer schedules an interview to discuss how they need to fix themselves and shape up Exit Interview - ANSWER when an employee is leaving a company and the employer and the employee discuss their reasons for leaving Employee Turnover - ANSWER The rate at which employees voluntarily leave the firm/workplace for another job or to retire Perk - ANSWER A benefit that goes past the normal compensation Comptroller - ANSWER A finance manager and is often an accountant Seniority - ANSWER Orientation - ANSWER The time where new employees get to know the workplace and other employees Headhunter - ANSWER a person who identifies and approaches suitable candidates employed elsewhere to fill business positions Outplacement Counselling - ANSWER when an employee is fired and the employer has an interview with them to try and help them get a new job Labour Market - ANSWER Where employers search and meet potential employees Need - ANSWER an item that is necessary for survival Want - ANSWER an item that is no necessary for survival, but adds pleasure and comfort to life Essential Good - ANSWER A tangible thing that is needed for survival Luxury Good - ANSWER A tangible item that is not necessary for survival Service - ANSWER is intangible that has value Tangible - ANSWER something you can touch and feel. Intangible - ANSWER something you can't touch 3 types of Businesses - ANSWER -Manufacturing -Retail -Service 4 types of ownership - ANSWER -sole proprietorship -partnership -corporation -co-operation 3 types of Trademark's - ANSWER -ordinary mark -distinguishing guise -certification mark 3 Characteristics of an Entrepreneur - ANSWER -Risk taker -perceptive -confident Advertising - ANSWER Paid, positive attention by a company that wants to promote there product Publicity - ANSWER can be positive or negative and can't be controlled. it is generated by the public, it could be over social media, reviews, etc 2 ways Businesses can increase profit - ANSWER -cutting back on employees -reduce prices by a tad (remember, as prices decrease, demand increases) 4 ways Business success is measured - ANSWER -good profit -employee satisfaction -personal satisfaction -social responsibility Health and Wellness Programs - ANSWER programs that will improve the overall happiness of employees so they are more productive 4 categories of labour - ANSWER -unskilled -semiskilled -skilled -professional It is good for a business when employees are happy because... - ANSWER It's better for a business to have happy employees because when employees are in a positive attitude they are usually more productive 4 reasons of Business Failure - ANSWER -Lack of skill -lack of profit -lack of marketing -lack of accounting 3 parts of a competitive image - ANSWER -brand name -logo -slogan niche - ANSWER is when a market is dominated with few competitors and few consumers fad - ANSWER is a product that grows rapidly for a short period of time but then falls just as fast seasonal products - ANSWER are products that goes up in sales only during specific seasons Corporate Social Responsibility - ANSWER A corporation's initiatives to assess and take responsibility for the company's effects on environmental and social well being Why entrepreneurs need business plans - ANSWER It forces the entrepreneurs to think about the business basic rules for an interview - ANSWER piecework - ANSWER pay based on how many product you made hourly wage - ANSWER when you get paid a certain amount of money per hour salary - ANSWER a fixed amount of money earned in a year fee for service - ANSWER when a company names an estimated price is costs to do a job Commission - ANSWER a percentage of money for each product you sell stock options - ANSWER where an employer/business offers a share in their company To sell goods and services and meet the needs, wants, and demands of consumers - ANSWER Purpose of a business The most important factor in consumer decision making - ANSWER price Franchise - ANSWER McDonald's is a... Proxy - ANSWER Profit = selling price - cost of goods - expenses - ANSWER What is the Profit equation Growth - ANSWER When a product gains sales Maturity - ANSWER When a product is selling the most it possibly could Decline - ANSWER When a product loses sales Decision point - ANSWER When a product is so low on sales the company has to either, scrap the product, redesign or re-brand the product target market - ANSWER what age group or gender a product is aimed towards Slogan - ANSWER A short catchy phrase Jingle - ANSWER A short catchy tune (usually the slogan with a beat) Occupational forecasts - ANSWER Predictions on when employees are going to need jobs, get fired, etc 2 duties of a human resources manager - ANSWER -conduct interviews -hire/fire employees Balance Sheet - ANSWER includes assets and liabilities Income statment - ANSWER includes Revenue and expenses Accounts payable - ANSWER Your business's debts needed to be payed off Accounts Receivable - ANSWER A business/person that owes your business money beginning of an equation - ANSWER What does the single underline mean? Ending of an equation - ANSWER What does the double underline mean? Sole proprietorship - ANSWER one business owner Partnership - ANSWER 2 or a couple more business owners Corporation - ANSWER Owned by stockholders Co-operation - ANSWER Owned by the community Be your own boss - ANSWER Benefit of a sole proprietorship You have unlimited liability - ANSWER Disadvantage of a sole proprietorship Shared responsibilitys - ANSWER Advantage of a partnership May have disagreements - ANSWER Disadvantage of a partnership Limited liability - ANSWER Advantage of a corporation Can lose all your investments in shares in seconds - ANSWER Disadvantage of a corporation Less expensive goods/services - ANSWER Advantage of a co-operation Decisions can be harder - ANSWER Disadvantage of a co-operation Crown Corporation - ANSWER A government owned business Essential service - ANSWER An intangible thing needed to live Supply - ANSWER The quantity of a good or service that businesses are willing and able to provide within a range of prices that people would be willing to pay Demand - ANSWER The quantity of a good or service that consumers are willing to pay -Franchise fee -advertising fee -monthly fee -supplies - ANSWER 4 fees of owning a franchise Private corporation - ANSWER A business hat is not traded on the stock market, is owned by a small number of shareholders, and are limited in the number of shareholders that they may have. -Subway -True north sports - ANSWER provide 2 examples of private corporations USA - Bill Gates - $75 billion World - Jeff Bezos - $90.6 billion - ANSWER Who is the richest man in the USA? Who is the richest man in the World? A co-operative is an organization owned by it's members who use its services (a consumer co-operative or a credit union), or by people who work there (a worker co-op), or by those who live there (a housing co-operative) - ANSWER What is a co-operative? Research and development - ANSWER What does R&D stand for? -Unskilled -Semiskilled -Skilled -Proffesional - ANSWER _________ - little training is required _________ - some instruction is required _________ - requires training from an educational institute _________ - highly trained Productivity is important because if an employee is slacking off they wont do as much work so the company is losing out on profits - ANSWER Why is productivity important? Brand name - ANSWER A word or group of words that a business uses to distinguish its products from competitors products Logo or Trademark - ANSWER A special symbol that is associated with the product Co-branding - ANSWER Having two or more businesses under one roof. Municipal corporations - ANSWER businesses in local towns to provide services to local citizens General partnership - ANSWER when both partners have unlimited liability Limited partnership - ANSWER When both partners have limited liabiliy Board of directors - ANSWER Runs a corporation Toronto Stock Exchange - ANSWER What does TSX stand for? -Public -Private -Crown - ANSWER What are the 3 types of corporations? Discrimination - ANSWER When an employer denies a job and/or job interview because of skin tone, religion, sex, etc Harasment - ANSWER When one or more people make you feel uncomfortable be judging/making fun of your sex, skin tone, religion, etc Protected grounds makes is illegal to harass or discriminate an employee or potential employee - ANSWER What are protected grounds? one no matter what - ANSWER How many votes does a member of a co-operative get in an annual meeting? as many votes as shares owned - ANSWER How many votes does a shareholder get in a corporation shareholders annual meeting? Chief Executive Officer - ANSWER What does CEO stand for? Chief Financial Officer - ANSWER What does CFO stand for? to provide essential services to the public - ANSWER What is the purpose of a crown corporation? - ANSWER What is another name for a public corporation?