Business Ownership
Name 3 types of business ownerships
Partnerships, corporations, franchises, cooperatives, solo proprietorship, limited liability
What does "Capital" mean in a public business?
An economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or provide their services to the economy that they are based in.
The government has declared your business product unsafe. What is the effect on your supply and demand?
Your demand will go down
What is Fair trade?
Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade
What is a benefit of having a joint venture?
When allowing a company into a country it increases their productivity, grows their business faster and generates a greater profit.
What is the difference between service and retail?
A service business is a company that performs tasks to help benefit their customers, and a retail business sells products/services to customers for their use or pleasure.
Who owns crown businesses?
Whatever federal government they operate under but it still operates like an individually owned company.
Name 2 factors that impact supply and demand.
Improved procedures, keeping or creating a market, and increasing overall company sales are the factors that impact supply.
What are accessibility issues. Give one example.
businesses should think about how they can help people with accessibility issues, like braille on signs, ramps for wheelchairs as well as automatic doors and more
What is the difference between international business and domestic business. Give an example of each.
International business is not limited to a single country but domestic is. Canadian Tire, Nike
What is the difference between a for profit business and a not for profit business? Give an example for each.
The difference between a for profit and not for profit business is that for profit businesses goals are to make money through their operations and they are more concerned with their own interests rather than the publics. While a not for profit business is a business that does not earn profit for its owners, all of the money received goes right back to the business. For Profit - airlines, construction, restaurants. Not for profit - sports club, charity organizations.
How does a manufacturing company differentiate from a crown company?
Manufacturing is the production of goods with equipment, labour, machines, tools, chemically, ore biologically. A crown company is a corporation that is owned by the federal or provincial government, though it acts like an independent company.
What is the difference between a need and a want? Give two examples for each.
A need is something you need to survive but a want is something you want but you can survive without it.
What is environmental responsibility?
A business’s responsibility to not damage natural environments and use biodegradable materials and recycle
What is a Foreign Subsidiary?
It exists when the original company grows its business to another country. The original company sometimes sets financial targets, examples of financial targets setting a budget, reducing the debt, and an emergency fund. An emergency fund is when you save up money and don’t use it at all and you set it aside to pay for expenses that just come randomly.
What do equity, capital, and stock mean?
Equity is an ownership of assets that can have debts and/or other liabilities attached to them. Capital is any economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their product(s). Stock is a security that gives stockholders a share of ownership in a company or business.
Name 2 pros and 2 cons of a retail business.
Pros: More opportunities for franchising.
More variety for where you want to take your business
Cons: Some people see retail stores as vulnerable targets for burglary so window repair costs and stolen merchandise.
If you franchise with your business franchisees can have a bad service and create a bad rep for your business.
Why might a movie theater charge a lower admission price for the first show on weekday afternoons than they do for a weeknight or weekend show?
There is more demand on weeknights and weekends meaning that you can charge higher prices for those tickets.
Why is it important for businesses to act ethically? Give one example of unethical business practices and how it effects the workplace.
It’s good because being honest in business builds trust, loyal customers, good talent and trust-worthy partners. misleading customers, discrimination, poor working conditions.
Describe a Strategic Alliance.
A strategic alliance is when two or more separate businesses agree upon a set of terms to share separate resources, that they may not be capable of acquiring themselves. They usually fall short of legal partnership.
Name an advantage and disadvantage for two types of business ownerships.
Advantages of being in a partnership is the work can be divided evenly. More Insurance amongst the two of you.
Disadvantages: financial risk if your business doesn't succeed the all the money lost comes out of your pockets
Advantages for corporations the owners benefit from limited liability,financing and grants are easier to access.
Disadvantages for corporations are that if you have a large number of investors then decisions can take a while to be made, and you can also lose investors easily if decisions that are strongly opposed are voted for.
What type of business is known to have the most unethical business practices?
Manufacturers and Retail businesses are the most known types of businesses that practice unethical business.
Many manufacturer businesses are known to keep their employees in unsafe working conditions & exploiting them to their own gain even using human trafficking as means to keep their business running
Ex. Fast fashion, Nestle, Google
Many retail businesses such as Amazon have been accused of offering counterfeit or plagiarized products. Retail businesses also are known to have unethical labour practices. Walmart is an example of this using illegal immigrants as workers. And underpaying many of their employees.
How can identifying your needs versus your wants affect your budgeting decisions? Give one example of a situation where this might affect your spending choices.
Identifying needs vs wants is important for budgeting because it helps you prioritize important expenses over unnecessary ones. By focusing on what you really need, you can avoid overspending and make better financial decisions, making sure you have enough for important things.
Why is it important to maintain safety int he workplace? Give two examples of what safety in the workplace looks like.
It is important because it reduces the risk of injuries and illness or even death to the workers on the job. protective equipment, proper handling of chemicals, prioritize safety and prevention
What is global sourcing? What is the impact on the economy if companies use too much or too little global sourcing?
Global sourcing is a “procurement strategy” when a company purchases things and services from businesses all around the world. They do this because they want to save their money that the company originally earned. They use the cheap items to save their money so they don’t have to waste all their money on expensive things for the company. Global sourcing can help businesses go into great skills because technology may not be available in their home country. Another example for global sourcing is “business process outsourcing”. A whole bunch of companies have set up all of their call centers in Asian countries, India, and the Philippines. They do this so that they can benefit from the availability of low costing and skilled labor.