Unit 1
Name the 5 forms of business ownership
1. SOLE PROPRIETORSHIP
2. PARTNERSHIP
3. CORPORATION
4. CO-OPERATIVE
5. FRANCHISE
What are the 4 factors of production
Land: fuel and energy, logging and forestry, water, agriculture, mining, fishing and trapping
Labour: the human input into the production process
Capital: man made physical goods used to produce others goods and services. Liquid capital (easy to spend).
Management: planning, organizing, leading and controlling
Fixed vs Variable expenses
Fixed: Costs that occur each period and the amounts do not change from one period to the next (e.g. mortgage payment)
Variable: Costs that occur each period and the amounts change from one period to the next (e.g. groceries)
What is an entrepreneur?
An Entrepreneur is a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.
Name the 4 functions of management.
1. Planning
2. Organizing
3. Leading
4. Controlling
What is the difference between needs and wants
A need is something that we require in order to live.
Wants are things that would be nice to have, but we could live without.
What are the 5 steps of the production process?
Creating the design for the products
Sourcing raw materials
Processing the raw materials
Manufacturing and quality control
Marketing
Gross vs Net income
Gross income: total amount of money received by a person before any deductions.
Net Income: total gross income minus the compulsory payroll deductions. Net Income = Gross Income - Deductions
Name some characteristics of an entrepreneur.
Risk taker
Perceptive
Curious
Imaginative
Persistent
Goal-setting
Hardworking
Flexible
Independent
Who are stakeholders?
Employees
Suppliers
Communities
Investors
Creditors
Owners
What is the law of supply and demand?
The law of supply and demand defines the effect that the availability of a particular product and the desire for that product has on price.
What are some of the functions of human resources?
Analyze the market
Determining the new employees
Looking for the right employee
Handling applications and interviews
Health and safety
Job training
Keeping good employees
Departure, dismissals and retirements
Handling compensations
Disposable vs Discretionary Income
Disposable: Money left over after all mandatory government deductions have been subtracted from your pay
Discretionary: The amount of money that is left over after all necessities (rent, food etc.) have been paid.
Describe an invention
a product or process that does something that has never been done before.
Accounting equation
Assets - Liabilities = Owner's Equity
What are some examples of forms of ethics
A document that explains specifically how employees should respond in different situations (codes of conduct in workplaces) or principles in religions.
Name of some careers in business
Accounting
Entrepreneurship
Finance
Human Resources
Marketing & Sales
International Business
Management
Saving vs Investing
Saving:
Earn interest (simple & compound)
Safe
Loses purchasing power (inflation)
You can withdraw the money in a savings account quickly at any time.
Investing:
Saving to earn income long-term (through interest, dividends, etc)
Higher rate of return
No guarantees on returns (risky)
Can give your savings an extra ‘boost’.
Tailored to you.
Describe an innovation
using new technologies, materials, or processes to improve on existing products, or the way that products are produced or distributed.
Income statement equation
Net Income = Revenue - Expenses
What are some of the benefits of CSR
Winning business
Enhanced relationship with stakeholders
Attracting, retaining and maintaining workers
Media interest and good reputation
Access to funding opportunities
Enhancing your influence in the industry
Differentiating yourself from the competitor
Saving money on energy and operating cost
Increase in customer retention
Name and explain the 4Ps and 2Cs of marketing?
Product: Good or service being offered by a company
Price: cost consumers pay for a product or service
Place: where the product is sold and how it is delivered to the market (channels of distribution) Channels of distribution include: direct, indirect, specialty
4. Promotion: includes advertising, public relations and promotional strategy
2C's:
Competition: Who else is already in the market?
Consumers: Who would we assume would buy our product?
Consumer profile consists of: demographics, psychographics, geographics and behavioural variables.
Simple vs Compound Interest
Simple:
Earned on the principal (initial investment) amount.
FORMULA: I = P x R x T
Compound:
Earned on principal plus interest.
FORMULA: A = P (1 + i)n
An autocratic leader is authoritarian and prefers to have complete control over decisions and situations.
A democratic leader provides opportunities for employees to contribute to the decision-making process
Laissez-faire leadership is based on freedom for employees to do what they were hired to do.
How to complete a balance sheet with proper formatting.
Headings: Who? What? When?
Dollar signs ($)
To start each column
Grand Totals
Single Underline
To indicate subtotal (addition or subtraction)
Double Underline
Grand Totals
Grand totals must be on the same row
Assets on left
Liabilities & Owner’s Equity on right
Left Side = Right Side