Sole proprietorship: A business owned by a single person What is meant by unlimited liability? – Law doesn’t differentiate between the person owning the business and the business. 2. Partnership: A business that is operated by two or more partners who share costs and responsibility. What are general partners? – Active partners that are involved in the business (also have unlimited liability) What are limited/silent partners? – “limited” (silent) partners are investors and not involved in the business. They have limited liability. Nat Is meant o Eliminate loyalty – Having limited responsibility responsible for the debts of the business Not personally 3. Corporations: – Provincial/ federal, highly regulated, name must include: Incorporation(Len), Corporation(Corp.), or Limited(Ltd) What is meant by being highly regulated? – The responsibility of following many rules and also not taking advantage of investors Can a corporation be small? – Yes, a corporation doesn’t have to be a huge business. What is a share/stockholder? – Share/stockholder is an investor who puts money into nonage of a percentage/part of the corporation.
Would you be able to sue a corporation? Why? – Yes, since the corporation is itself an asset When someone sues the corporation, the corporation is sued. What are the differences between a private and a public corporation? – up to 50 shareholders and the shares are not affected (Private)… – Unlimited number of shareholders and shares may be traded publicly in stock exchange or by brokers (Public) Are all public corporations traded on the TTS (Toronto Stock Exchange)? Brokers may also be a way that public corporations are traded. What is a Crown Corporation? – Owned by the government body COOPERATIVE – Through 4.
What is a cooperative? – Owned and operated by the workers or members who buy en products FRANCHISE or use ten services TN ten Dustless offers. 5. What are a franchise, a franchiser, and a franchisee? FRANCHISER: Seller of the franchise. FRANCHISEE: buyer of the franchise FRANCHISE: the rights to a business’s name, operating procedures, designs, and business expertise are licensed to another individual What are 5 things that may be included in a franchise agreement? Paying the franchise fee Agreeing to pay a monthly percentage fee plus national/local advertising costs.
Purchasing all supplies from the franchiser Participating in franchiser standards training More Business Basics Learning I will be able to define profit, revenue and expenses and explain the relationship among these terms. I will be able to define goods and services and give examples of businesses selling goods and services. I will be able to define and give examples of the industrial classifications in Canada. Profit: Another term for profit is earnings, or income Revenues: Expenses: Profit= Revenues – Expenses If expenses are greater than revenues, the business has a loss. Profits are used to: 1 .
Provide better goods 2. Improve services 3. Gives the owner money to spend on needs and wants GOODS vs.. SERVICES Goods: An item that can be seen and touched -Five businesses that sell goods include: 1. Walter 2. Mike 3. Food Basic Services: assistance provided to consumers/customers -Five businesses that sell services include: 1. Police station 2. Sank 3. CB Three Types of Industrial Activity in Canada Primary Industry: Six natural resource industries (extractive industries) Ex: 1 . Agriculture 2. Fishing 3. Mining Secondary Industry: Converts raw materials into products 1.
Telecommunication 2. Steel production 3. Construction Tertiary industries: Service industries 1. Education 2. Transportation services (YURT, ETC, etc. ) 3. Restaurants Industry also used to classify businesses that share a common method of generating profits, such as the “Automobile industry’, or the “Cattle industry’. Introduction to Economics I will be able to define and explain the basic economic system used in Canada. Text Book: pages 22-27 (reference) Economics: is the study of choices made to satisfy unlimited wants and needs with limited resources.
An economic system is a collection of institutions, laws and activities that provide a framework for economic decision making. Three Key Economic Questions Economic systems have to answer three major economic questions: What goods and services should be produced? How should these be produced? For whom should these be produced? Economic systems allow countries to make the most of the resources they have. Three Economic Resources Economic resources, aka factors of production, are the basic components used in goods and services made available to consumers.
Natural resources Materials that come from the earth, water, or air Most are non-renewable, or take a long time to renew Human Resources (HER) Also called labor Entrepreneurship People who work to create the goods and services Most businesses have an HER department Capital Resources I en Dullness, equipment, ventricles, Tactless uses Usually last a long time and require a large initial investment Interdependence Countries and companies specialize in producing certain goods and services and then rely on each other to trade for them Almost all businesses have some dependence on other businesses.
Business Ethics Text Book: Pages 75-85 (reference) 1. Define Ethics: Standards or principles of good behavior, ethics are the rules we use to decide what is good and what is bad 2. Define code of ethics, and explain the importance of it to a business: Document outlining organization’s value principles: policy on sexual harassment, workforce, diversity, conflict of interest, confidentiality. Explains how employees should respond in different situation Establishes course of action for unethical behavior by employees Need to establish a procedure for reporting unethical behavior 3.
Define Ethical Dilemma. Give Examples. A situation where there is a difficult choice between two or more options that offers the potential for personal or organizational benefit or both, but maybe unethical: not clear what is right or wrong. Legal behavior is not necessarily ethical behavior E. X: downsizing of staff, disposal of toxic waste, product safety 4. Define Whistle- Blowing. Whistle-Blowing is the decision of an employee to inform officials or the public about a legal or ethical violation. . If you’re an employee, why might it be difficult to ‘step up to the plate’ and blow the whistle on unethical business activities? 5. What is Fraud? Provide examples. Fraud: is the crime of lying or pretending E. X: Bribery, insurance fraud, false advertising, etc. 6. In table 3. 1 on page 84, there are ten examples of unethical behavior. Define the allowing terms and the consequences of that unethical behavior. Embezzlement: Discrimination: Environmental Violations: 1.
Define demand: The quantity of a good or service that consumers are willing and able to buy at a particular price Law AT Demand. Lower price= greater Conditions: Consumer awareness/interest Easy access Reasonable/ competitive price 2. Define supply: mean the quantity of a good or service that producers are willing and able to offer at a particular price Law of Supply: higher price= higher supply Cost of producing the good/ service Price consumers will pay for the good/service Changes in technology