Business Fundamentals
What happens when the business cycle is at the trough?
Economic activity is at its lowest, high unemployment, the employees are reluctant to spend money because of uncertainty, low sales in the marketplace, business have low to no profits, bankruptcies increase.
What is ethical behaviour?
Ethical behaviour is behaviour that conforms to ethics individual beliefs and social standards about what is right and good.
What are 3 types of non-traditional product life cycles?
Seasonal, fad and niche.
Which is the financial statement that reports the revenues and expenses for a period of time such as a year or a month?
The income statement.
What is GATT?
A general agreement on tariffs and trade.
Name 3 things it takes to start a business
Research, plan, finances.
Why are ethics important?
Ethics are important for getting along with others, living with yourself, and having a good character.
What is a fad?
a fad is something that is very popular for a short period of time.
Which is the financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date?
Balance sheet.
What is a trading bloc?
A group of countries that share the same trading interests.
What happens during the depression?
if the economic situation becomes even worse, a recession could lead to a depression. Unemployment is very high, prices decline, businesses fail, and economic activity is greatly reduced. Ex. The Great Depression of 1929 lasted 10 years and was worldwide. Canada has not experienced this since.
What are morals?
Morals are the rules we use to decide what’s good and what’s bad.
What is a trend?
a trend is something that lasts longer than fad, they can last decades.
Assets are usually reported on the balance sheet at which amount?
Liability.
What is the role of the World Trade Organization (WTO)?
This organization's rolls to deal with the rules of trade between nations.
What factors influence the job market?
By supplying the goods and services needed in the community and they give jobs.
What are some ethical dilemmas facing society and business?
downsizing in staff, pollution control, disposal of toxic waste, depletion and allocation of scarce resources, cost containment, changes in law and technology, employee rights, discrimination against women and minorities and product safety.
What does it mean to have a niche?
they’re very popular and overpower in this specific section of the market and beat all their competition.
Unearned Revenues is what type of account?
Liability.
Why was WTO established?
It was established to replace the earlier GATT Administration.
What are the 3 model economies?
Modern mixed economy, pure market economy and pure command economy
What is whistle-blowing?
Whistle-blowing is the decision of an employee to inform officials or the public about legal or ethical violations.
How can fads either lose or earn money for a business?
If the business sells all their stock in the amount of time the fad ends, the business will make a profit. Other companies can make knockoffs and sell more, causing the company to lose money for spending more than they sold. Because a fad dies quickly it’s important to try and sell them as fast as they can otherwise they won't make a profit.
Accounting entries involve a minimum of how many accounts?
Two.
What characteristics of trade are outlined in a trade agreement?
Tariffs, duty, restrictions on certain products or material and permits people to work across international borders.