Business Fundamentals
Competition
The rivalry between businesses trying to attract customers and sell more products or services.
Franchisee
A person who runs a franchisee operation and is under contract; or licensing agreement, with the franchisor.
Legal Tender
Coins and paper money, as defined by the Government of Canada, that must be accepted as payment for goods and services.
Savings plan
Putting money aside in a regular way to reach a financial goal.
Ethical Dilemma
A moral problem with a choice between potential right and wrong answers.
Goods vs. Services
Goods:
Physical items you can buy, such as food, clothes, and toys.
Services:
Intangible activities or benefits provided to customers, such as consulting, repair work, teaching, etc.
Public Corporation
A corporation with many shareholders, whose shares can be bought and sold on a stock exchange.
Gross Income
The total amount of money received from one’s employer, before any deductions.
Diversification
Spreading out the risk of investment by choosing several different types.
2 C's of marketing
Competition
Consumer
Consumer Purchasing Power
The ability of consumers to buy goods and services based on their income and the prices of those goods and services.
Sole Proprietorship
A business directly owned by one person who receives all profits and is responsible for all responsibilities for liabilities.
Discretionary Income
The portion of one's disposable income that is not already committed to paying for necessities and can be used to buy things for pleasure, satisfaction, and comfort.
2 Types of savings plans
RRSP
RESP
Code of Ethics
A document that describes specifically how a company’s employees should respond to different situations.
Law of Demand
The principle stating that as the price of a product decreases, the quantity demanded by consumers increases, and vice versa.
entrepreneurial characteristics
Creativity
Strong Leader
Charasmatic
Adaptable
Variable Expenses
An expense that differs each time and is usually difficult to estimate in advance; for example, food, clothing, and entertainment.
Compound Interest
Interest calculated on the amount saved or borrowed plus any interest already accumulated.
AIDA Model
Attention
Interest
Desire
Action
Co-operative
A business owned and run by a group of people who work together and share the profits.
5 Forms of Business ownership
Sole proprietorship
Partnerships
Corporation
Cooperative
Franchise
Start-up Budget
A budget that shows the costs needed to open a business.
Investing
Using savings to earn extra income.
4 P's of Marketing
The four elements of a food marketing campaign: product, price, place, and promotion. When all four are present it is called the marketing mix.