BUS 201 Notes PDF

BUS 201 Notes Chapter 1; Basics Regressive taxes: taxes that increase as the income increases Profit: Revenue minus expense How Government influences business; - As customers; as taxation;provider of incentives and financial assistance; competitor;regulator;provider of services Trade a...

BUS 201 Notes Chapter 1; Basics Regressive taxes: taxes that increase as the income increases Profit: Revenue minus expense How Government influences business; - As customers; as taxation;provider of incentives and financial assistance; competitor;regulator;provider of services Trade associations: are for business who can't afford lobbyists Factors of production: Labour,Capital,Resources,entrepreneurs, and info Demand: The willingness or ability to purchase of buyers Supply: The willingness to supply or provide of sellers Private enterprise: System that allows individuals to pursue with minimal government restrictions; Has four elements; pirate property, freedom of choice, profits, and competition Perfect competition; all firms are small, but a large number of firms Monopolistic competition: few sellers many buyers Oligopoly : handful of large sellers Monopoly: Has only one producers Business: An organization that produces or sells goods or services to make a profit. ○ Impact: Produces most goods and services consumed. Employs a significant portion of the workforce in Canada. Contributes taxes to the government at all levels. Profit: What remains after a business’s expenses have been subtracted from its revenues, rewarding owners for their investment risks. Not-for-profit organizations: Use funds from government grants or sales to provide services to the public (e.g., charities, educational institutions, hospitals). Economic system: Allocates a nation’s resources among its citizens based on ownership and control of factors of production. Factors of Production: ○ Labour: Human workforce involved in production. ○ Capital: Financial resources needed to start and operate a business. ○ Entrepreneurs: Individuals who create and run businesses, taking risks and seizing opportunities. ○ Natural resources: Physical resources like land, water, minerals, and trees. ○ Information: Knowledge and expertise of workers, along with economic data. Types of Economic Systems: ○ Command economy: Centralized government control of production (e.g., socialism, communism). Communism: Government ownership of major industries (e.g., North Korea, Cuba).  Socialism: Government control of select major industries. ○ Market economy: Individuals control production and allocation through supply and demand. Capitalism: Emphasizes private ownership and entrepreneurship. Mixed market economies: Blend of command and market features. Government Influence on Business Government roles: ○ As a Customer: Purchases products/services (e.g., office supplies, infrastructure). ○ As a Competitor: Competes through Crown corporations (e.g., Hydro-Québec). ○ As Regulator: Oversees business activities to promote competition and protect consumers. ○ As a Taxation Agent: Imposes and collects taxes at various government levels. ○ As a Provider of Incentives: Offers programs to stimulate economic development. ○ As a Provider of Essential Services: Supplies infrastructure and services (e.g., highways, postal service). How Businesses Influence Government: ○ Utilize lobbyists (represent interests with officials) and trade associations. Market Dynamics Market: Exchange process between buyers and sellers of goods/services. Demand: Willingness and ability of buyers to purchase. Supply: Willingness and ability of producers to offer goods/services. Laws of Demand and Supply: ○ Law of Demand: Buyers demand more at lower prices. ○ Law of Supply: Producers supply more at higher prices. Demand and Supply Schedule: Assess relationships between varying levels of demand and supply. Market Price (Equilibrium Price): Price where quantity demanded equals quantity supplied. Surplus: Occurs when quantity supplied exceeds quantity demanded. Competition Types Private Enterprise System: Characterized by private property rights, freedom of choice, profits, and competition. Degrees of Competition:  ○ Perfect Competition: Many small firms produce identical products; no influence on price. ○ Monopolistic Competition: Many firms supply similar yet distinct products; some price influence. ○ Oligopoly: Few large firms can influence prices. ○ Monopoly: Single producer sets product prices. Chapter 2; Business Environment External environment: Everything outside an organization that may affect it External environment factors; economic,tech,political legal, social issues, global environment , ethics social responsibility, business environment Organizational boundary: separates the organization that may affect it Economics Environment: the conditions of the economic system in which an organization operates Aggregate output: measures if a economic system is growing Business cycle: the growth and contraction, the ups and downs in an economy; has 4 features: peak,trough,recession,recovery GDP: Value of goods and services produced by a national economy through dometic factors of production(Entrepreneurs,Labour,Capital,resources,Info) GNP: outdated system like GDP except it counts things not made in domestic production Productivity: a measure of economic growth that compares how much a system produces with the resources needed to make it Balance of Trade: economic value of all products a country exports minus imports Inflation: the amount of money injected into an economy is greater than the increase in actual output Deflation: opposite of inflation, not enough money is ejected into the economy vs the increase of actual output Fiscal Policies: the collection and spending of government resources Monetary policies: focus on controlling the size of a nation's money supply High interest rates: makes money harder to barrow = reduce in spending Low interest rates: make money easy to borrow= increase in spending Political and legal environment: reflects the relationship between business and government Socio Cultural environment: includes consumers beliefs,values of society in which companies operate in Business process management: moving away from organizing around departments and moving towards organizing process around team structures Acquisition: one firm buys another Meger: 2 firms merge together Horizontal merger: 2 business in same industry merger Vertical merger: Merger between supplier and customer Poison Pill: Tactic to make a hostile takeover less appealing Divesture: A company sells part of it to another corporation Strategic alliance: joint venture in something Subsidiary: PArent companies; a company owned by another Q’s: What's the primary reason for firms to outsource; Focus on core competencies What's the first step in implementing business process management: Identify goals What's a spin off; setting up a division as a new company Why do companies form strategic alliances: to lower cost spread risk and learn from partners experiences External environment :consists of everything outside an organization that might affect it Organizational boundary: separates the organization from its environment. - Organizations have multiple environments. Economic environment; the conditions of the economic system in which an organization operates. - During periods of rising unemployment, people are less likely to make unnecessary purchases, and they may delay the purchase of a new car or new furniture.  Aggregate Output and the Standard of Living - Aggregate output: the total quantity of goods and services produced by an economic system during a given period. When output grows more quickly than the population: - Output per capita (the quantity of goods and services per person) goes up, - And the system provides relatively more of the goods and services that people want. - People living in an economic system benefit from a higher standard of living: the total quantity and quality of goods and services they can purchase with the currency used in their economic system. The business Cycle: The growth (and contraction) pattern of short-term ups and downs in an economy - Four recognizable phases: peak, recession, trough, and recovery Gross domestic product (GDP): Total value of all goods and services produced within a given period by a national economy through domestic factors of production. Gross National Product (GNP): Total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located. GDP per capita: Gross domestic product per person. Real GDP: GDP calculated to account for changes in currency values and price changes. Purchasing Power Parity: Principle that exchange rates are set so that the prices of similar products in different countries are about the same. Productivity: Measure of economic growth that compares how much a system produces with the resources needed to produce it. Balance of Trade: The total of a country’s exports (sales to other countries) minus its imports (purchases from other countries). National Debt: The total amount of money that a country owes its creditors. Budget Deficits: The result of the government spending more in one year than it takes in during that year. Consumer Price Index (CPI): Measure of the prices of typical products purchased by consumers living in urban areas. Inflation: Occurrence of widespread price increases throughout an economic system. Deflation: A period of generally falling prices. Unemployment: The level of joblessness among people actively seeking work in an economic system. Fiscal policies: Policies whereby governments collect and spend revenues. Monetary policies: Policies whereby the government controls the size of the nation’s money supply. Research and development (R&D)Activities necessary to provide new products, services, and processes. Political–legal environment: Conditions reflecting the relationship between business and government, usually in the form of government regulation. Sociocultural environment:Conditions including the customs, values, attitudes, and demographic characteristics of the society in which an organization operates.  Outsourcing: Strategy of paying suppliers and distributors to perform certain business processes or provide needed materials or services. Business process management: An approach by which firms move away from department-oriented organization toward process-oriented team structures that cut across old departmental boundaries. Acquisition: The purchase of a company by another, larger firm that absorbs the smaller company into its operations. Merger: The union of two companies to form a single new business. Poison pill: A defense that management adopts to make a firm less attractive to an actual or potential hostile suitor in a takeover attempt. Divestiture: Occurs when a company sells part of its existing business operations to another company. Spinoff: Strategy of setting up one or more corporate units as new, independent corporations. Strategic alliance: An enterprise in which two or more persons or companies temporarily join forces to undertake a project. Chapter 3: Ethics Managerial ethics: behavior towards employees, organization and other economic agents Ethic norms: utility,rights,justice,caring How to show ethics in business: Top management is committed to values and standards, have a written code of ethics, provides ethics training Corporate social responsibility: the way business balances commitments to important people and its external environment: can be shown through good business practices and community initiative: Fair trade organizations: Group of people trying to get people of developing countries get paid fairly Organizational stakeholders: People who have stakes in an organizations: employees, customers, investors, suppliers, and local community Responsibility towards consumers; - consumerism : movement trying to increase consumer rights - Unfair pricing and ethics in marketing Responsibility towards employees: Treat them well no discriminations Responsibility towards investors: proper financial management, no misrepresentation of finances, chequer kiting, and insider trading Responsibility towards local community: charitable donations Responsibility towards environment: no extra pollution Approaches to social responsibility: - Obstructionist stance- now willing to be it - Defensive- Doing bare minimum - Accommodative: Being responsible - Proactive: Doing things to be responsible Social audit: analysis of funds used for social responsibility Small business have social responsibility and ethics as well Ethics: Individual standards or moral values regarding what is right and wrong or good and bad. Business ethics: Ethical or unethical behaviors by a manager or employee of a business. Managerial ethics: Standards of behavior that guide individual managers in their work. Conflict of interest: Occurs when an activity benefits the employee at the expense of the employer. Ethics Training and Written Codes of Ethics: Providing ethics training and adopting written codes of ethics are methods companies use to encourage ethical behavior among employees. Corporate social responsibility (CSR): The idea that a business should balance its commitments to individuals and groups directly affected by the organization’s activities. Fair-trade movement: A movement designed to help workers in developing countries receive fair payments for their work. Organizational stakeholders Groups, individuals, and organizations directly affected by an organization’s practices and who, therefore, have a stake in its performance. Consumerism: A social movement that seeks to protect and expand the rights of consumers in their dealings with businesses. Whistle-blower: An individual who calls attention to unethical, illegal, or socially irresponsible practices within a business or other organization. Insider trading: The use of confidential information to gain from the purchase or sale of stock. Pollution: The introduction of harmful substances into the environment. Approaches to Social Responsibility - Obstructionist Stance: Avoiding social responsibility actions. - Defensive Stance: Acting responsibly only when required by law. - Accommodative Stance: Accepting responsibility and taking action when requested. - Proactive Stance: Actively seeking to contribute positively to society. Social audit: A systematic analysis of how a firm is using funds earmarked for social responsibility goals and the effectiveness of these expenditures. Sustainable development: Activities that meet current needs without putting future generations at a disadvantage in meeting their needs. Chapter 4: Types of Business Small business: OWner led business with less than 100 employees New venture: A new business Entrepreneurship: Identifying opportunity and accessing resources to capitalize off if it Entrepreneurship characteristic: resourceful, care for customers, want to be there own boss Entrepreneurial process: (Influenced by social,economic,political,tech factors in the broader environment ) - Identify opportunity; idea generation, screening:does it add value to the customer, the idea is competitive, is marketable and financially viable - Develop the opportunity( new ventures have 3 main entries: anew product, buying a franchise or competing with another firm - Access resources: By bootstrapping doing more with less, through financial resources like debt or equity or collateral; Intrapreneurs: people who create something within an existing firm Equity financing: personal savings,love money,private investors, venture capitals Debt financing: banks crowdfunding Other resources: Business development bank of Canada, incubator- facilities who help business, internet, crowdfunding - Build the right team Q’s: Firsts Step in judging ethics: get the facts Kew differences between entra and inra euners: intras don't need resources as they have firms resources Common source of ideas for new ventures: Work experience Most common way to get personal loan for a new venture: borrowing against life insurance Entrepreneurship Small business: An independently owned and managed business that does not dominate its market. New venture: A recently formed organization that provides goods/services for sale. Entrepreneurship: Identifying opportunities and accessing resources to capitalize on them. Entrepreneur: A businessperson who accepts risks and opportunities in starting a business. Intrapreneurs: Individuals who create something new within an existing organization. Private sector: Companies not owned or controlled by the government. Sales forecast: An estimate of product/service purchases over a specific period. Franchise: An arrangement allowing a franchisee to sell a franchiser's product. Business plan: Document summarizing a business strategy and its implementation. Bootstrapping: Doing more with less. Collateral: Assets used to secure a loan, subject to seizure if unpaid. Incubators: Facilities supporting small businesses during early growth phases. Sole Proprietorship: A business owned and operated by one individual.  Advantages: Simple to establish, complete control for the owner, profits taxed once. Disadvantages: Unlimited personal liability, limited capital, and dependent on the owner’s continuity. - Partnership: A business owned by two or more individuals. Advantages: More capital, shared responsibilities, combined skills and knowledge. Disadvantages: Unlimited liability for general partners, potential conflicts, shared profits. - Corporation: A legal entity separate from its owners, owned by shareholders. Advantages: Limited liability, easier capital raising, perpetual existence. Disadvantages: Complex setup, subject to double taxation, more regulatory requirements. - Cooperative: Business owned and operated for mutual benefit by a group of individuals. Advantages: Democratic control, limited liability, profits shared among members. Disadvantages: Limited capital, slower decision-making, less individual performance incentive. Chapter 5: Globalization Globalization: The process by which the world economy is becoming a single interdependent system. Distinctions of wealth: High,middle,low The three marketplaces: NA, Europe, Asia Pacific BRICS: Brazil,Russia,India,China,South Africs Barriers to trade: PESTLE - Political legal: Beef between countries - Economic: Inflation - Sociocultural: Language Quota: restricts amount of importance of a product’ Embargo: Complete ban of a product or a country's exports Tariff: a tax on imported goods Subsidy: Gov payment to domestic industry to help compete with foreign firms Protescisim: Protecting domestic business at the expense of free markets Business practice laws: Laws on how business is practiced Cartel: an association created to control supply and price of a commedit, OPEC Dumping: Selling a product for less abroad than in the producing nation Globalization and International Trade Globalization: The process by which the world economy is becoming a single interdependent system. Import: A product made or grown abroad but sold domestically. Export: A product made or grown domestically but shipped and sold abroad. BRICS: A group of five important and powerful emerging markets: Brazil, Russia, India, China, and South Africa. Trade Regulations and Policies Quota: A restriction by one nation on the total number of products of a certain type that can be imported from another nation. Embargo: A government order forbidding the exportation or importation of a particular product. Tariff: A tax levied on imported products. Subsidy: A government payment to help domestic businesses compete with foreign firms. Protectionism: Protecting domestic businesses at the expense of free-market competition. Local-content laws: Laws requiring that products sold in a particular country be at least partly made in that country. Business Practices Business practice law: Laws or regulations governing business practices in specific countries. Cartel: An association of producers whose purpose is to control the supply of and prices for a given product. Dumping: Selling a product for less abroad than in the producing nation. Barriers to International Trade Social and Cultural Barriers: ○ Differences in language, customs, and consumer preferences. ○ Cultural misunderstandings affecting negotiations and relationships. Political Barriers: ○ Impact of political stability and government policies on operations. ○ Nationalism and protectionism leading to tariffs and quotas. Legal Barriers: ○ Varying laws and regulations creating compliance challenges. ○ Differences in intellectual property rights enforcement. Economic Barriers:  ○ Influence of economic conditions (inflation, currency fluctuations). ○ Impact of trade agreements and economic partnerships. Major World Marketplaces World Bank Income Classifications: 1. High-Income Countries: ○ Per capita income > US$12,536. ○ Includes: Canada, US, most of Europe, Australia, Japan, South Korea, Israel, Kuwait, UAE, Singapore, Cayman Islands. 2. Upper-Middle-Income Countries: ○ Per capita income between US$4,046 and US$12,535. ○ Includes: China, Colombia, Lebanon, Indonesia, Libya, Argentina, South Africa. 3. Low-Middle-Income Countries: ○ Per capita income between US$1,036 and US$4,045. ○ Includes: Ukraine, Philippines, Algeria, Bolivia, Pakistan, Vietnam. 4. Low-Income Countries (Developing Countries): ○ Per capita income ≤ US$1,035. ○ Includes: Malawi, Yemen, Haiti, Togo, Afghanistan. ○ Characteristics: Low literacy rates, weak infrastructure, unstable governments. Chapter 6: Managers Managers: People who plan, organize,lead and control the operations of an organization Manager process: Planning, organizing,leading and controlling Planning: Determining the firm's goal and developing a strategy 1. Goals are established 2. Identify gaps between desired and actual position 3. Develop plan 4. Implement plan 5. Asses plans effectiveness Organizing: mobilizing the resources and people Controlling: process of monitoring firms performance Levels of management: - Top, Ceo, president; responsible for overall success, develop policies, make the big decisions and deal with other firm - Middle:Implement Top management's decision: Division manager - First line: hands on, supervisor, supervisor and train employees Areas of management: - Hr operations: Responsible for creating system of goods and services - Information: Designing and implementing various systems that deal with info - Marketing: Responsible of getting products and services to customers - Financial: Plan and oversee financial resources Management Skills: Technical, Hr, thinking abstract, time management, decision making recognizing and defining the decision- organizational politics, intuition, elevation of commitment Corporate culture: the values and beliefs and norms of a company Managing the culture: managers must first understand it than transmit the values Managers Definition: Individuals who plan, organize, lead, and control organizational operations. Management Definition: The process of managing resources (financial, physical, human, information) to achieve goals. Key Management Functions 1. Planning: ○ Determining business needs and best strategies. ○ Five Steps: 1. Establish organization goals (e.g., airline seat occupancy). 2. Identify gaps between desired and actual positions. 3. Develop plans to achieve objectives. 4. Implement the plans. 5. Assess effectiveness of the plan. 2. Organizing: ○ Mobilizing necessary resources to complete tasks. 3. Leading (Directing): ○ Guiding and motivating employees to meet objectives. 4. Controlling: ○ Monitoring performance and taking corrective actions if needed. Levels of Managers Top Managers: Responsible for overall performance and long-term planning. Middle Managers: Implement decisions made by top managers. First-Line Managers: Supervise employee work. Types of Managers Information Managers: Design and implement systems for gathering and processing information. Marketing Managers: Handle product development, pricing, promotion, and distribution.  Financial Managers: Oversee financial resources and management. Human Resource Managers: Responsible for hiring, training, and employee relations. Operations Managers: Manage systems for creating goods/services and ensure quality control. Skills Required for Managers Technical Skills: Specialized task performance. Human Relations Skills: Understanding and interacting with people. Conceptual Skills: Abstract thinking and situational analysis. Time Management Skills: Effective use of time. Decision-Making Skills: Problem definition and course of action selection. Strategic Management Definition: Aligning an organization effectively with its environment. Goals: Objectives a business plans to achieve. Strategy: Organizational plans for implementing decisions. SMART Goals: Specific, Measurable, Achievable, Results-oriented, Time-framed. Vision and Mission Vision (Purpose): Why an organization exists and its aspirations. Mission Statement: How the organization will achieve its purpose. Strategic Planning Components Strategy Formulation: Broad program for meeting goals. Strategic Goals: Long-term goals from the mission statement. SWOT Analysis: Identifying strengths, weaknesses, opportunities, threats. Strategic Plans: Decisions on resource allocations and priorities. Tactical Plans: Short-range plans for specific aspects of strategic plans. Operational Plans: Short-term performance targets. Types of Strategies Corporate-Level Strategy: Identifies businesses and their interrelations. Business-Level (Competitive) Strategy: Competing in specific product/service lines. Functional Strategies: Actions each department will take to contribute to overall goals. Competitive Strategy: Establishing a profitable and sustainable position. Corporate Culture Definition: Shared experiences, stories, beliefs, and norms within a firm. Chapter 8: HR Human resources management: set of organizational activities directed at attracting, developing and meaning an effective workforce is important as the world changes Human capital: reflects the investment in HRM Human resources planning: - Job analysis - Forecasting demand and supply; ie number of employees at a specific date and how many people in job market for hiring - Recruiting: hiring people Selecting human resources: 1. Application forms, interviews, tests etc 2. Develop the HR: New employee training 3. Management development programs: Designed to enhance conceptual, analysis and problem solving for employees Networking: informal interactions among managers to discuss problems, solutions and opportunities Evaluating employee performance: - Performance appraisal; assess how well employees are doing their job; methods - Simple ranking: forced distributions like top 10 percent, averages etc - Incident method: how well they did or didn't do at a specific thing Compensation and benefits Wages, salary per year, some companies use pay surveys, job evaluation Incentive programs Team and group incentives Profit sharing plans, profits achieve a certain levels are shared Gainsharing plans- people get paid if they reduce costs through greater efficiency Benefits: - mandated protection plans: assist employees when there income is threatened or reduced by illness, disability, unemployment or retirement  - Paid time off - Wellness programs Equal opportunity regulations: Protect people from unfair or inappropriate discrimination Bina fide occupational requirement: is like when a gym hires a women to manage womens locker room Comparable worth: aims at paying people equal for equal worth Pension plans: Public and private, depends on employees contributions Db are are guaranteed amounts, DC varies on how much employee contributes, employers like this more Labor union: A group of people who work together to achieve shared job related goals like higher pays, better conditions etc Labour relations: the overall process of dealing with unionized employees Collective bargaining: union heads bargain for all employees of an union Canada labor code: Obvious what it is; varies province to province - Standard horus - Safety - Industrial relation regulations Union security: Closed shop: employees can hire only union members Union shop: employers can hire non employees but they must join union after 30 days Open shop: employers can hire non and union employees Types of unions: Craft: organized by craft or trade Independant: Local unions not formally affiliated with any labor organization Local union: basic union of a geographical area Common Contract issues: Compensation, hours, codions etc Unions try to minimize management's rights When bargaining fails a strike amy happen Management tactical response could be a lockout Conciliation: 3rd party clarifies issues separating them Mediation: 3rd party advises next steps Arbitration: 3rd party decides what will happen  Human Resource Management (HRM): Set of organizational activities directed at attracting, developing, and maintaining an effective workforce. Human Capital: The organization’s investment in having an effective workforce. Talent Management: Using employee skills to facilitate organizational success. Job Description: A list of the objectives, responsibilities, and key tasks of a job; the conditions under which it will be done; its relationship to other positions; and the skills needed to perform it. Job Specification: A list of the specific skills, education, and experience needed to perform a job. Employee Information Systems (Skills Inventories): Systems that contain information on each employee’s education, skills, work experience, and career aspirations. Recruiting: The phase in the staffing of a company in which the firm seeks to develop a pool of interested qualified applicants for a position. Assessment Centre: Provider of a series of exercises in which management candidates perform realistic management tasks while being observed by appraisers. Behaviour-Based Interviewing: An approach to improving interview validity by asking questions that focus the interview much more on behaviour than on what a person says. On-the-Job Training: Development programs in which employees gain new skills while performing them at work. Off-the-Job Training: Development programs in which employees learn new skills at a location away from the normal work site. Orientation: The process of introducing new employees to the company’s policies and programs, the co-workers and supervisors they will interact with, and the nature of their job. Management Development Programs: Development programs in which managers’ conceptual, analytical, and problem-solving skills are enhanced. Networking: Informal interactions among managers, both inside and outside the office, for the purpose of discussing mutual problems, solutions, and opportunities.  Mentoring: Having a more experienced manager sponsor and teach a less experienced manager. Performance Appraisal: A formal program for evaluating how well an employee is performing a job; helps managers determine how effective they are in recruiting and selecting employees. Compensation: What a firm offers its employees in return for their labour. Wages: Dollars paid based on the number of hours worked. Salary: Dollars paid at regular intervals in return for doing a job, regardless of the amount of time or output involved. Piece-Rate Incentive Plan: A compensation system in which an organization pays an employee a certain amount of money for every unit produced. Protection Plans: A plan that protects employees when their income is threatened or reduced by illness, disability, death, unemployment, or retirement. Profit-Sharing Plans: An incentive program in which employees receive a bonus depending on the firm’s profits. Gainsharing Plans: An incentive program in which employees receive a bonus if the firm’s costs are reduced because of their greater efficiency and/or productivity. Benefits: What a firm offers its workers other than wages and salaries in return for their labour. Equal Employment Opportunity Regulations: Regulations to protect people from unfair or inappropriate discrimination in the workplace. Cafeteria-Style Benefit Plans: A flexible approach to providing benefits in which employees are allocated a certain sum to cover benefits and can “spend” this allocation on the specific benefits they prefer. Bona Fide Occupational Requirement: An overriding characteristic of the job based on which an employer may choose one applicant over another. Comparable Worth: A legal concept that aims to pay equal wages for work of equal value. Sexual Harassment: Requests for sexual favours, unwelcome sexual advances, or verbal or physical conduct of a sexual nature that creates an intimidating or hostile environment for a given employee. Workforce Diversity: The range of workers’ attitudes, values, beliefs, and behaviours that differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics. Knowledge Workers: Workers who are experts in specific fields, such as computer technology and engineering, and who add value because of what they know, rather than how long they have worked or the job they do. Labour Union: A group of individuals who work together to achieve shared job-related goals. Labour Relations: The overall process of dealing with employees who are represented by a union. Collective Bargaining: The process through which union leaders and management personnel negotiate common terms and conditions of employment for those workers represented by the union.  Canada Labour Code: Legislation that applies to the labour practices of firms operating under the legislative authority of Parliament. Bargaining Unit: Individuals grouped together for purposes of collective bargaining. Certification Vote: A vote supervised by a government representative to determine whether a union will be certified as the sole bargaining agent for the unit. Decertification: The process by which employees legally terminate their union’s right to represent them. Closed Shop: A union–employer relationship in which the employer can hire only union members. Union Shop: A union–employer relationship in which the employer can hire non-unionized workers, but they must join the union within a certain period. Agency Shop: A union–employer relationship in which all employees for whom the union bargains must pay dues, but they are not required to join the union. Open Shop: A union–employer relationship in which the employer may hire union or non-union workers. Compensation: Common issues include immediate and future wage increases, often negotiated through cost-of-living adjustments (COLA). Benefits: Commonly negotiated issues include insurance, retirement benefits, paid holidays, working conditions, and supplementary health care costs. Job Security: Contracts may use seniority to determine which employees keep their jobs in case of workforce reductions. Other Union Issues: Include details on working hours, overtime, rest periods, and allowable union activities. Management Rights: Management seeks control over hiring policies, work assignments, and other policies. Strike: A tactic of labor unions where members temporarily walk off the job to win concessions from management. Mediation: A method of settling a contract dispute in which a neutral third party suggests resolutions. Arbitration: A method of settling a contract dispute in which a neutral third party imposes a binding resolution. Lockout: A tactic of management where employees are denied access to the workplace to pressure them regarding contract negotiations. Conciliation: A method of settling a contract dispute in which a neutral third party helps clarify issues.  Chapter 10: Charts PERT Chart: Production schedule specifying the sequence and critical path for performing the steps in a project. Gantt Chart: Scheduling tool that diagrams steps to be performed and specifies the time required to complete each step. Chapter 11; Accounting cycle: 1. Analyze transaction documents 2. Record transactions in a journal 3. Transfer journal to ledger, 4, do a trial balances 5. Prepare financial statements 6. Analyze the statements Accounting: A comprehensive system for collecting, analyzing, and communicating financial information. Bookkeeping: The process of recording accounting transactions.  Related earning: net profit - dividend payments to shareholders Controller:The individual who manages all the firm’s accounting activities. Financial Accounting System: The process whereby interested groups are kept informed about the financial condition of a firm. Accounting Information System (AIS): An organized procedure for identifying, measuring, recording, and retaining financial information for use in accounting statements and management reports. Managerial (or Management) Accounting: Internal procedures that alert managers to problems and aid them in planning and decision-making. Chartered Professional Accountant (CPA): The designation used to unify the accounting profession in Canada. Chartered Accountant (CA, now referred to as CPA, CA): An individual who has met certain experience and education requirements and passed a licensing examination; acts as an outside accountant for other firms. Certified General Accountant (CGA, now referred to as CPA, CGA): An individual who has completed an education program and passed a national exam; works in private industry or a CGA firm. Certified Management Accountant (CMA, now referred to as CPA, CMA): An individual who has completed a university degree, passed a national examination, and completed a strategic leadership program; works in industry and focuses on internal management accounting. Audit: An accountant’s examination of a company’s financial records to determine if it used proper procedures to prepare its financial reports. International Financial Reporting Standards (IFRS): Standard accounting rules developed by the International Accounting Standards Board (IASB) and used by publicly accountable enterprises and private government enterprises. Accounting Standards for Private Enterprises (ASPE): Standard accounting rules that can be used by private businesses in Canada in preparing financial reports. Forensic Accountant: Accountants who track down hidden funds in business firms. Private Accountant: An accountant hired as a salaried employee to deal with a company’s day-to-day accounting needs. Accounts Payable: unpaid bills to suppliers Management Consulting Services: Specialized accounting services to help managers resolve a variety of problems in finance, production scheduling, and other areas. Accounting Equation: Assets = Liabilities + Owners’ equity; Asset: Anything of economic value owned by a firm or individual. Liability: Any debt owed by a firm or individual to others. Owners’ Equity: Any positive difference between a firm’s assets and its liabilities; what would remain for a firm’s owners if the company were liquidated, and all its assets were sold. Owners liability: assets - liabilities  Financial Statements: Any of several types of broad reports regarding a company’s financial status; most often used in reference to balance sheets, income statements, and/or statements of cash flows. Balance Sheet: A type of financial statement that summarizes a firm’s financial position on a particular date in terms of its assets, liabilities, and owners’ equity. Current Assets: Cash and other assets that can be converted into cash within a year. Liquidity: The ease and speed with which an asset can be converted to cash; cash is said to be perfectly liquid. Fixed Assets: Assets that have long-term use or value to the firm, such as land, buildings, and machinery. Depreciation: Accounting method for distributing the cost of an asset over its useful life. Intangible Assets: Non-physical assets, such as a patent or trademark, that have economic value in the form of expected benefit. Goodwill: The amount paid for an existing business beyond the value of its other assets. Current Liabilities: Debt that must be paid within one year. Accounts Payable: Amounts due from the firm to its suppliers for goods and/or services purchased on credit; a form of current liability. Long-Term Liabilities: Any debts owed by the firm that are not due for at least one year. Operating Expenses: cost to operate business Paid-In Capital: Any additional money invested in the firm by the owners. Retained Earnings: A company’s net profits less any dividend payments to shareholders. Income Statement (Profit-and-Loss Statement): A type of financial statement that describes a firm’s revenues and expenses and indicates whether the firm has earned a profit or suffered a loss during a given period. Revenues: Any monies received by a firm as a result of selling a good or service or from other sources such as interest, rent, and licensing fees. Revenue Recognition: The formal recording and reporting of revenues in the financial statements. Matching Principle: Expenses should be matched with revenues to determine net income for an accounting period. Cost of Goods Sold: All expenses directly involved in producing or selling a good or service during a given time period. Gross Profit (Gross Margin): A firm’s revenues (gross sales) less its cost of goods sold. Operating Expenses: Costs incurred by a firm other than those included in the cost of goods sold. Operating Income: Compares the gross profit from business operations against operating expenses.  Management Consulting Services: helps personal finances to corporate mergers Net Income (Net Profit or Net Earnings): A firm’s gross profit less its operating expenses and income taxes. Statement of Cash Flows: A financial statement that describes a firm’s generation and use of cash during a given period. Budget:A detailed statement of estimated receipts and expenditures for a future period of time. Chapter 12: Marketing: An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing concept: The idea that the whole firm is directed toward serving present and potential customers at a profit. Value: Benefit/ cost Utility: The power of a product to satisfy a human want; something of value. Consumer goods: Physical products purchased by consumers for personal use. Industrial goods: Physical products purchased by companies to produce other products. Services: Products with non-physical features, such as information, expertise, or an activity that can be purchased. Relationship marketing: A marketing strategy that emphasizes building lasting relationships with customers and suppliers. Customer relationship management (CRM): Organized methods that a firm uses to build better information connections with clients so that stronger company–client relationships are developed. Marketing plan: Detailed strategy for focusing marketing efforts on consumers’ needs and wants. Marketing objectives: The things marketing intends to accomplish in its marketing plan. Marketing strategy: All the marketing programs and activities that will be used to achieve the marketing goals. Marketing mix: A combination of product, pricing, promotion, and place (distribution) strategies used to market products. Product: Good, service, or idea that is marketed to fill consumers’ needs and wants. Product differentiation: Creation of a product feature or product image that differs enough from existing products to attract customers. Pricing: The process of determining the best price at which to sell a product. Place (distribution): The part of the marketing mix concerned with getting products from producers to consumers.  Promotion: The aspect of the marketing mix concerned with the most effective techniques for communicating information about products. Market segmentation: The process of dividing a market into categories of customer types or “segments.” Demographic and Geographic Segmentations Target market: A group of people who have similar wants and needs and can be expected to show interest in the same products. Product positioning: The process of fixing, adapting, and communicating the nature of a product to appeal to the selected target market. Demographic variables: Characteristics of populations that may be considered in developing a segmentation strategy. Research Process: 1. Problem recognition 2. Info seek 3. Evaluate alternatives 4. Purchase decision 5. Post purchase evaluation Geo-demographic variables: A combination of geographic and demographic traits used in developing a segmentation strategy. Geographic variables: Geographic units that may be considered in developing a segmentation strategy. Psychographic variables: Consumer characteristics, such as lifestyles, opinions, interests, and attitudes that may be considered in developing a segmentation strategy. Behavioural variables: Behavioural considerations, such as benefits sought, loyalty status, usage rate, user status, and occasion for use that may be used in developing a segmentation strategy. Marketing research: The study of what customers need and want and how best to meet those needs and wants. Observation: A market research technique involving viewing or otherwise monitoring consumer buying patterns. Survey: A market research technique based on questioning a representative sample of consumers about purchasing attitudes and practices. Focus group: A market research technique involving a small group of people brought together and allowed to discuss selected issues in depth. Experimentation: A market research technique in which the reactions of similar people are compared under different circumstances. Consumer behaviour: The study of the decision process by which people buy and consume products. Industrial market: An organizational market consisting of firms that buy goods that are either converted into products or used during production. Reseller market: An organizational market consisting of intermediaries that buy and resell finished goods. Institutional market: An organizational market consisting of nongovernmental buyers of goods and services such as hospitals, religious organizations, museums, and charitable organizations. Bonus - political legal, social affects on business Cooperative, partnerships, venture capitalist, advantages of investing in corporate,balance of trade, exporting, chapter 1,2,11 Read horizontal,vertical,conglomerate merger Read risk return ratio Read about managers and their tasks Read about CSR Read Factors of production 1. Ryan works for a company that proudly states that it now meets all the minimum legal requirements in each of the individual countries in which it operates. With regards to its approach to corporate social responsibility, the company could be said to have: ○ a. a proactive stance ○ b. a defensive stance ○ c. an obstructionist stance ○ d. an accommodative stance ○ e. elements of each of the other answers listed Defensive 2. What is a "natural" monopoly? ○ a. A situation where one company can most efficiently supply all the product or services that is needed by consumers. ○ b. One that occurs without any business firm trying to achieve this—that is, it just happens because the business does everything right. ○ c. One where government grants monopoly powers to a specific business firm. ○ d. One that occurs when a firm has control over a particular natural resource. ○ e. There is no such thing as a natural monopoly. Where a company can most efficiently 3. Financial managers' role in the firm: ○ a. Is to plan and monitor cash flows and make financial decisions. ○ b. Is so important that they are often called operations managers. ○ c. Focuses solely on profit maximization. ○ d. Includes all of the other answers listed. ○ e. Is much like that of a bookkeeper. Mintor Cash Flow 4. Which of the following are internal users of financial information for a public corporation? ○ a. Management only ○ b. Management and employees ○ c. Management and shareholders  ○ d. Management, employees, and shareholders ○ e. Management, employees, shareholders, and government regulators Management and Employees 5. What is the purpose of tariffs on imports? ○ a. Maintaining domestic competitiveness ○ b. Decreasing exports ○ c. Increasing imports ○ d. Promoting free trade ○ e. None of the other answers are correct Maintaining domestic competitiveness 6. Last week, Jon’s Bike Shop had sales revenue of $5,000, salaries of $1,500, rent was $1,000, and the cost of goods sold was $1,500. What was the profit for the week? ○ a. $1,000 ○ b. $2,000 ○ c. $2,500 ○ d. $3,500 ○ e. $5,000 1k Image 2: 8. When a manager develops a new product strategy that aligns with the overall corporate strategy, this manager is primarily using which skill? ○ a. Conceptual skills ○ b. Communication skills ○ c. Technical skills ○ d. Leadership skills ○ e. None of the provided answers are correct Conceputal 9. Business-to-business (B2B) markets are different than consumer markets; within this context, which of the following is not a true statement? ○ a. B2B customers often buy in larger quantities. ○ b. It is often challenging for the seller to identify prospective customers. ○ c. B2B customers often take longer to make a purchasing decision. ○ d. None of the other answers are correct, meaning all statements are true. ○ e. Price is used for promotion to business customers. Price used for promotion  10. Taylor is purchasing her first home in Kelowna. She is a young professional, likes to socialize, and loves the outdoors. Her lifestyle impacts what stage(s) of the Consumer Purchase Decision-Making Process? a. Need recognition b. Information search c. All the listed stages are impacted d. Evaluation of alternatives e. There is not enough information to answer this question Need Recognition 11. Ralph is trying to decide what new laptop to buy. He is wavering between an Apple MacBook and a Google Chromebook and is comparing the features and how to fit it with his intended usage of the laptop. Given this description, we can conclude Ralph is currently in what stage of decision-making? a. Need recognition b. Information search c. Evaluation of alternatives d. Purchase e. Post-purchase behavior Evaluation of alternatives 12. The Pepsi / Coca Cola (soft drink) market in North America where a few large firms have the power to influence industry prices could be described as: a. Imperfect competition b. A natural monopoly c. Oligopolistic competition d. Public goods e. Command economy Oligopolistic MC donalds and pepsi merge together is an example of what: Conglomerate