1. What is a business?
    An organization that sells good or services for a profit
  2. What roles do businesses play?
    • Produces goods and services used my Canadians
    • Employs
    • Pays profit to shareholders/owners
    • Supports charities
    • Provides community leadership
  3. What is profit?
    Anything that remains after the cost of production is taken from the revenues.
  4. Name 5 factors of production
    Labour/Human Resources, Capital, Entrepeneur, Natural/Physical Resources, Information Resources
  5. What are labour/human resources?
    The mental and physical training and talents of people
  6. What is capital?
    The funds needed to start and operate an enterprise
  7. What is an entrepeneur?
    People who accept the risks and opportunities associated with starting and operating a business
  8. What are natural/physical resources?
    Items used in the production of goods and services in their natural state.
  9. What are information resources?
    information such as market forecasts, economic date, and specialized knowledge of employees that is useful to a business, helping it achieve its goals
  10. What do economic systems do?
    Allocate a nation's resources among its citizens
  11. What are the 3 types of Economic Systems?
    Command Economy (Communism/Socialism), Market Economy(Input Market/Output Market), Mixed Market Economy(a trend towards deregulization/privatization)
  12. How does the government influence businesses?
    As a buyer, competitor, regulator, taxation agent, provider of incentives/financial assistance, and as a provider of essential service)
  13. How do businesses influence government?
    As a lobbyist, with trade associations, and advertising
  14. Define market
    Exchange process between buyers and sellers
  15. Define Demand
    Willingness/ability of buyers to purchase a product or service
  16. Define supply
    Willingness/ability of sellers to offer a product or service for sale
  17. Define Law of Demand
    Purchasers will purchase more of a product as the price drops
  18. Define Law of Supply
    Producers will offer more of a product as the price rises
  19. Define Equilibrium or Market Price
    The point at which the supply curve intersects the demand curve
  20. Surplus
    More supply than demand
  21. Define Shortage
    More demand than suppy
  22. What do Private Enterprises allow individuals to do? Which book is it based off of?
    Pursue their own interests with minimal government restriction. "The Wealth of Nations"
  23. What 4 key elements does Private Enterprise require?
    Private Property, Freedom of Choice, Profits, Competition
  24. What are the four degrees of competition?
    • Pure or perfect competition
    • Monopolistic Competition
    • Oligopoly
    • Monopoly/Natural Monopoly
  25. Early Years...
    1400-1700. Commercial fishing, fur trading, mercantilism.
  26. Industrial Revolution...
    1700s. Factory system & "Cotton Ginny"; specialization of labour
  27. Entrepeneurial Era...
    Late 1800s. Steam power, immense wealth, collusion and first anti-combines legislation (1889)
  28. Production Era...
    Early 1900s. Assembly lines, technical efficiency, productivity gaines, selling stock, professional managers.
  29. Sales and Marketing Era...
    1930-1970. Creating consumer demand, market research
  30. Finance Era...
    1980s. Decade of greed. Hostile takeovers and corporate raiders, asset stripping
  31. Global/Internet Era
    1990s/Present. Emergence of true, global economy. Rapid information technology, internet use.
Card Set
The Business System