Name: Aaminah Ahmed

Teacher: Mr. J. Graham

Date Due: Jan. 15. 2021

BBI2O Course Glossary

Business Glossary Words:
Term: Definition: Module:
An organization that produces 1
Business or sells goods or
provides services to satisfy the
needs, wants, and demands of
consumers/customers for
making profits.

Demand
Is the quantity of a product or
service that consumers are
willing to buy

Want An item that people don't need

survive but they buy it for
comfort or luxury

Entrepreneur
People who take a risk and start
a business to solve a problem or
to take advantage of an
opportunity. And they are very
hardworking and confident.

Natural Resources One of the economic resources,

which are natural

consumer
They can benefit from the
competition between business in
several ways. Or from the goods
or service.
Supply Is the quantity or amount of a
good and service that
businesses want and able

to provide within a range of

prices that people are willing to
pay.

Service Have monetary value because

people are willing to pay for
them. Which can
help people in their daily life

Co-branding
Having two or more businesses
or bands at the same place.

Human resources Another one of the Economic

resources.

Producer
Is a person, company, or country
that makes, grows, or supplies
goods for sale that is where the
items are produced from first.

Need An item that is necessary to

survive such as food, clothing,
and shelter.

Obsolete Products that are no longer in

use.

Profit
The income that is left after all
costs and expenses are paid.

Capital resources
One of the Economic resources.
Term Definition: Module:

Conspicuous Consumption Desire to flaunt purchases to 2

impress other.

Domain name
A catchy and simple Internet
Address. That can attract people.

E-commerce A new kind of marketplace or

business It stands for “electronic
commerce”

Lifestyle advertising
Shows attractive, healthy,
successful, people using the
product or service that is being
promoted.so people will by it.

Website Actual physical space in which

business needs to operate
Electronically. And consumers
can see things.

Peer pressure
To be strongly influenced into
something you don’t want to do.
Just because others are doing it.

Habits They are formed over time and

done repetitively, often with
very little thought.
CSA
Canadian Standard Association.

Interception rate Contact time

Values Is based on what you believe is

important in life.

Closely related to values.

Goals Something you work to achieve
and strongly want.

Consumer decision making Where consumers identify their

needs, and make purchase
decisions.

Web site hits

Measures the number of people
who visit the web site.

Term Definition: Module:

Cooperative 3
It is a business owned by the
people, or members, who buy
the products or use the services
that are there to be bought or
are offered.

Corporation It is a type of business whose

ownership is

divided into many small parts.

Crown Corporation

Is a business operated by the

provincial or federal
government?
Dividend
It is the amount of the dividend
paid for each share.

Limited Liability It is when a person is

responsible for paying back their
amount that they invested in
partnership.

Partnership It is a business operated by two

or more individuals who want to
share the costs and
responsibilities of running a
business.

Partnership Agreement It is where the terms of the

partnership are recorded.

Private Corporation
Only a few people control all the
shares and the business

Public Corporation It raises money by making

shares available to thousands of

people through selling stocks on
the stock exchange.

Shares (Stocks)
Individuals who buy the shares
become owners of the company.

Sole Proprietorship It is a business owned by

one person. No partnership.

Unlimited Liability It is if the business does bad, the

owner may lose his or her home
and other personal belongings.

Terms: Definition: Module:

Debt financing You can borrow money to run 4

your business.
Equity financing
You can use money from your
savings or from investors.

Forecasting It is a prediction of estimate of

future events like financial
trends.

Franchise
It is a booming business concept
that allows entrepreneurs to be
in business for themselves but
not by themselves.

Franchisee
They buy a license to operate a
readymade business and is
often provided with a fully
operational facility.

Franchiser Operating one business.

Gross domestic product

It is the total dollar value of all
goods and services produced in
a country for one year.

Manufacturing business It is like a General Motors of

Canada, produces a product
from materials and provides this
product to retailers who then
sell it to consumers.

Retail Business
It buys goods and resells them
to consumers to satisfy
consumer needs and wants.

Revenue It is the amount of money you

will gain from the sale of the
product or a service
Service Business It tries to satisfy the needs and
wants of consumers by
providing a service.

Terms: Definition: Module:

Assets An economic resource. 5

Business cycle A business cycle has 4

phases:
Trough

Recovery

Peak

Recession

Economic system It is the way government and

business work together

Gentrification Urban renewal programs have

improved many downtown
cores.

Monopoly Is a business that is the only

supplier of a good or service to
consumers.

Privatization A business owned by

government are sold to private
sectors.

Private sector Businesses that are individually

owned or operated.

Public sector Different levels of government

that provides services to
Canadians.
Pure command economy The Government owns the
natural resources.

Pure market economy An action of buyers and sellers

of goods and services direct the
economic system.

Recession Recession leads to when the

worker layoffs and decline in
consumers spending. Also, when
the business cycle enters the
trough phase.

Standard of living
The way a person lives
according to the kinds and
quality of goods and services a
person can afford.

Terms: Definition: Module:

Budget 6
A budget is a plan for wise
spending and saving based on
income (sales) and expenses.

Economies of scale Economies of scale, which

means the more products you
can make using the same
factory, the cheaper

each product becomes.

Fixed costs Expenses that do not change

with quantity.

Inflation When the price of many

products rises.
Labour force All those working looking for
work.

Marketing boards
They control the distribution,
manufacturing, and processing
of the product.

Price fixing Trying to maintain prices

at a certain level by agreement

between competing sellers.

Profit equation
Profit that can be
calculated using this
equation. Profit=
Selling Price-

Cost of goods sold- Expenses

Supply quota
The amount of good that
producers can supply.

Unemployment rate
Measures the number of able-
to-work people who don’t have
jobs as a percentage of the
labour force.

Variable costs The cost changes with the

quantity.

Terms: Definition: Module:

competitive edge Obvious advantages over the 7

competition.

direct competition Similar products

discretionary income
The income you have that is not
committed to paying for
necessities, such as food,
clothing, and shelter.

disposable income Income used to pay basic

necessities

indirect competition
When products or services are
not directly related to each
other. Different products

market segment
A part of the overall market that
has similar characteristics.

market share
Is the percentage that one
business’s product takes of the
total dollar spent by consumers
on similar products.

productivity
Company that uses the same
resources to produce more or
better products or services or
produces the same number of
goods which could be with less
resources.

Business that provide services

service sector
mostly.

Terms: Definition: Module:

Commission 8
Commission is most of the time
quite small, and is in addition to
salary or hourly wages.
Compensation This is affected by supply and
demand

Discrimination
It is to deny someone an
interview, a job, or a promotion
because of religion, gender, or
physical disability.

Employee turnover
It is a rate at which employees
leave the firm voluntarily either
for another job or to retire.

Harassment
This occurs when specific people
or groups are made to feel
threatened or uncomfortable.

Labour market This is where employers meet

employees.

Layoff
It is when companies dismiss
employees to cut back expenses.

Minimum wage This is the lowest hourly wage

an employer can pay an
employee.

Pension It gives employee income

once he or she no longer works

for the company.

Piecework
It is something that is being
calculated on the amount of a
product that an employee can
make.
Professional
It is highly trained people with
specific occupations, such as
accountants and electricians.

Salary
A salary is a fixed amount of
money that employees receive
on a regular schedule, such as
weekly monthly.

Semi-skilled labour This means that some jobs fall

into instructions.

Severance package
This is a package that often
contains a final payment, which
is usually depends on the
amount of time the employee
has worked for the business.

Skilled labour
This means that employees
require training an educational
institution or through previous
employment.

Unskilled labour
This means that a little training
is required to do the job.

Terms: Definition: Module:

Accountability 9
Employees who handle or have
access to cash and they are also
responsible for it and if anything
happens must explain.
Accounting Is the process of recording,
analyzing, and interpreting the
economic activities of a
business?

Accounts payable Purchasing inventory and

supplies on credit.

Accounts receivable
Debts owed by customers, etc.

Annual report A comprehensive report on a

company's activities throughout
the preceding year.

Balance sheet Is a financial statement that

shows the financial position of a
business on a single, specific
date?

Bookkeeping A method of recording all

transactions for a business in a
specific format.

Capital assets They are all assets that business

keeps for a long time.

Current assets
Are the things a business owns
that disappear quickly, usually
in less than 1 year.

Current liabilities Business pay off some debts,

such as invoices for
merchandise inventory, very
quickly.

Expenses
The cost required for something;
the money spent on something.

Fiscal year It is a business year.

Income statement
Is a financial statement that
shows a business’s profitability
over a stated period?

Invoice Bills for goods and services

either bought by or sold to the
business.

Liabilities The debts of a business.

Net income
The amount of left over after
the expenses are deducted from
a gross profit.

Owner's equity The third element of the balance

sheet.

Revenue
Income, especially when of a
company or organization and of
a substantial nature.

The Accounting Equation

This shows that everything is
financed by the shareholders
money or buy borrowing.

Transaction
A transaction occurs when
something that has value is
exchanged for something else
that has value. For example,
credit card transaction.

Terms: Definition: Module:

Advertising Advertising is the paid-for 10
promotion of a business’s goods
and services over a variety o
media to a target market of
consumers.

Brand Extension
When the image created for
one product is transferred to
the other products made by the
same company.

Brand Name
A brand name is a word or
phrase that a business uses to
distinguish its products from
the competitor’s products.

Cash Cows Business that can use income

generated by their mature
products.

Demographics Demographic is the study of

obvious characteristics that
categorize human

beings

Fad
A fad is a product that is very
popular for a very short period.

Focus Group
A focus group is a company-
arranged meeting of potential
consumers.

Form Form is what the product looks

like.
Function Function is what the product is
designed to do.
And it's benefit.

Image The way consumers see

the business or the products

that the business makes or sells.

Jingle
A jingle is a short, catchy tune
that uses the slogan and is easily
remembered by the consumer.

Knockoff
Many fad marketers, especially
imitators who create a cheaper
version of the fad.

Launch The product enters the

marketplace through a product
introduction.

Logo**
When many products combine
their name with a special symbol
that is associated with the
products.

Marketing
Marketing is the term used to
describe all activities involved in
getting goods and services from
the businesses that produce
them to the consumers who
wish to purchase them.
Niche
A section of the market in which
they dominate and into which
there are less competitors.

Premiums
Premiums are giveaways,
something a consumer gets free
with the purchase of a product.

Primary Data Primary data is current

information that researchers
collect and

analyze for a specific purpose.

Product Life Cycle

The traditional product has a life
cycle that has stages.

Publicity
Publicity is media's information
about a business that the
business doesn’t pay for.

Sales Pitch
A sales pitch is a scripted sales
presentation that shows all
possible consumer responses.

Secondary Data
Secondary data is information
that others have collected.

Slogans A slogan is a short, attractive

phrase that is always attached
to the company’s name and
logo.
Wholesalers
Wholesalers buy goods from
producers or importers and
resell the goods to retailers.

Terms: Definition: Module:

Budget 11
A budget is a plan for spending
accordingly and saving based
on income and expenses.

Comparison Shopping Before buying anything, smart

consumers compare to other
products.

Gross Pay It is the total amount of

money earned.

Guarantee
A guarantee is the
manufacturers or dealers
promise, usually in writing, that
a product is of a certain quality.

Money Management Money Management refers

to the daily financial activities

connected to using your limited
income to satisfy all your needs
and wants.

National Brands National brands appear on

virtually any product.

Net Pay The amount of money received

after deduction.
No-Name Brands
No-Name Brands are when
goods are sold in plain
packaging that doesn’t identify
the manufacturer.

Private Brands Private Brands are

manufactured by other
companies, but are sold as the
store’s brand name.

Terms: Definition: Module:

Ask Price 12
Is the lowest selling price that
another investor is willing to
accept for that stock?

Bear Market When the offers to sell rise the

orders to buy, prices will
decrease.

Bid Price
Bid price Is the highest price
anyone is currently willing to pay
for a product.

Blue Chip Company When companies with long

records of regular dividend
payments, stable growth
patterns, and active trading of
their shares.

Bond Bond Is a definite promise to

repay borrowed money on a
certain future date, along with
interest.
Bull Market When the demand for prices of
stocks are high.

Common Stock The most stock available.

Compound Interest Is calculated on the amount

saved plus any interest already
earned.

CSB Canada saving bond

Face Value Is the amount that appears on

the front of the bond that the
government promises to pay you
at maturity.

GICs

Guaranteed investment
certificates

Interest
Interest Is the money you receive
over time for letting others
borrow your money. It increases
as time goes by.

Investing Investing is committing money in

order

Maturity Date Is when the bond becomes

due and is paid.

Mutual Fund
Mutual fund Is a pool of money
from any investors that is set up
and managed by an investment
company to buy and sell
securities of other corporations.
Preferred Stock Has certain advantages over
common stock.

Principal
Is That amount you deposit.

Rate of Return (Yield) When the interest is expressed as

a percentage of the original
investment.

RESP
Registered education saving plan.

RRSP Registered retirement saving

plan.

Saving Saving is putting money aside for

future use.

Stock Exchange
Are not-for-profit organizations
owned and operated by their
member companies?

Simple Interested Is calculated only on the

principal.

Term Deposit
Is a saving plan in which you
deposit a fixed sum of money for
a specific length of time or term
at a fixed rate of interest.

Withdrawal Is the act of taking money from

your account?

Terms: Definition: Module:

ABMs 13
Are computer terminals that
allows customers to deposit or
withdraw funds, pay billeted
from one account to another,
and check their account
balances.

Cancelled Cheque
A cancelled cheque is a cheque
that has been cashed and paid
by the financial institution.

Chartered Banks
Canadian Banks are known as
Chartered Banks.

Credit Unions
Credit Unions are formed by
groups of people members who
agree to pool and share their
resources.

Drawee The drawee is your financial

institution.

Drawer
The drawer is the person from
whose account the money will
be taken. Who gives the money.

Joint Account It is an account that can be

opened in the name of two or
more people.

NSF cheque
not sufficient funds cheque.

Payee The payee is the name of

 the person or business to whom
the cheque is written.

Passbook
The financial institution may
give you a passbook to keep in
notice of account transactions

PIN The PIN is a confidential

electronics signature, like your
signature on your signature
card.

Postdating
Postdating a cheque means
putting a date on the cheque
that is later than the actual date
from which the cheque is
written.

Trust Companies Trust Companies are used to

manage and invest the funds
entrusted to them by
consumers.

Signature card
Signature card is something you
fill out to provide a sample of
the signature you will use when
you deposit and withdraw
money, write cheques, and
engage in

other financial transactions.

Terms: Definition: Module:

Charge Account It is a contract between a 14
consumer and a retailer for sales
in the retailer's stores.

Collateral
Is something of value that the
lender can take and sell if the
loan is not repaid on time.

Credit
The privilege of using someone
else's money for a period.

Credit Application
Is an information form that a
borrower must complete before
being granted a loan, charge
account, or credit card?

Credit Bureau
Is a business that gathers credit
information on all borrowers in a
region for selling that
information

Creditor
Is any person or business that
grants a loan or sells on credit?

Credit Rating Is an indication of the level of

risk that consumers, businesses,
or government?
will pose if credit is granted to
them.

Creditworthiness
The borrower’s ability to assume
and pay back credit.
Consolidation Loan Something that combines

all debts into one consumer

loan.

Debtor Is any person or business that

buys on credit and receives a
loan?

It is a special kind of short-term

Demand Loan loan with flexible terms of
repayment.

Installment Credit
Is a credit plan that requires a
purchaser to make a down
payment and fixed regular
payments, with finance charges
added to the purchase price?

Layaway Plan
When the sets the product aside
the customer makes equal
payments for a set of numbers
of weeks or months until the
prices have been paid full.

Lease
Is an agreement to rent
something, such as a car or
computer system, for a period at
an agreed price.

Mortgage
A legal document in which the
purchaser pledges the property
as collateral for the loan.

Mortgage Loan Is a long-term credit plan for

buying property?
Principal The amount of money
borrowed.

Three Cs of Credit
Character, Capacity, and Capital.

Term Loan
Is a form of installment credit in
which the borrower agrees to
make fixed monthly payments
over a set period?

Terms: Definition: Module:

Enterprising People 15
Enterprising people are who
Bring entrepreneurial
characteristics to the workplace
or to other organizations.

Intrapreneurship Entrepreneurial spirit within

a business or an organization.

Venture Venture Is a business enterprise

involving some risk, in
expectation of gain.