General
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats
What is finance?
Finance is defined as the management of money and includes activities such as investing, borrowing, lending, budgeting, saving, and forecasting.
What is a heuristic?
Mental shortcut that relies on immediately available examples that come to a person’s mind.
Increased profits
Increased market share
Increased economies of scale
Increased power and status of owners and directors
Reducing risk of being a takeover target
What does CSR stand for?
Corporate Social Responsibility
What are the 4 Ps of Marketing?
Price, Product, Place, Promotion
What are the 3 types of finance?
Corporate finance
Personal finance
Government finance
What is availability bias?
The availability of recent information and examples tends to over-influence people’s decision making; we overestimate the frequency / likelihood of an event when it is easier to recall.
What is internal growth?
Expansion of a business by means of opening new branches, shops, or factories (also known as organic growth).
What are the three components of the Triple Bottom Line?
Planet (Environmental), People (Social), Profit (Economic)
What does STEEPLE stand for?
Social, Technological, Economic, Ecological, Political, Legal, Ethical
What are the 3 functions of money?
1. Medium of exchange
2. Store of value
3. Unit of account
What is an example of social conformity / herd mentality?
i.e fashion trends
What is external growth?
Business expansion achieved by means of merging with or taking over another business, from either the same or different industry.
How can businesses be ecologically sustainable?
Reducing waste at all levels of the organization
Using less energy and sourcing energy from renewable sources
Reducing water use
Reducing the use of non-renewable resources in production
Designing products that use recycled materials or allow materials to be recycled at the end of a long and useful life
Designing products that use less harmful energy sources (i.e electric cars)
What is a PI?
Performance Indicator
Liquidity: how easily an asset’s value can be “used” (cash is the most liquid form of financial value)
What is choice architecture?
The theory that the decisions we make are heavily influenced by the ways in which the choices are presented to us.
What are the 3 types of external growth?
Horizontal, Vertical, Conglomerate.
How can businesses be socially sustainable?
Designing production systems that are safe and healthy for employees
Designing work and workplaces to allow for social interaction (good workplace culture)
Creating jobs in low-income areas, supporting marginalized communities (i.e hiring racialized or queer employees, being aware of unconscious biases, etc)
What does DECA stand for?
Distributive Education Clubs of America
What is the fundamental accounting equation?
Assets - Liabilities = Owner’s Equity
What is status quo bias and provide an example
When consumers are faced with a large set of choices, they generally prefer to maintain the status quo by doing nothing.
I.e renewing the same subscriptions, sticking to the same phone plan without researching better ones, etc
What is a franchise?
A business that uses the name, logo, and trading systems of an existing successful business. Note that they are separately able to decide which legal structure to adopt.
What is a social audit?
An independent report on the impact a business has on society. This can cover pollution levels, health and safety records, sources of supplies, customer satisfaction, and contribution to the community.