Glossary of Terms

Instead of being evaluated by one person, how would you like to be evaluated by several people—not only those above you in the organization but those below and beside you? The approach is called 360-degree feedback, and the purpose is to ensure that employees (mostly managers) get feedback from all directions—from supervisors, reporting subordinates, coworkers, and even customers.

A nation has an absolute advantage if, (1) it’s the only source of a particular product, or, (2) it can make more of a product using fewer resources than other countries.

Academic integrity is a commitment to acting with honesty, trust, fairness, respect, and responsibility in academic work and studies.

Accessibility is the practice of making information, activities, and/or environments sensible, meaningful, and usable for as many people as possible.

Accounting is the organizational function that is focused on recording, keeping, analyzing and communicating financial information.

Advertising is paid, non-personal communication designed to create an awareness of a product or company.

Assets: the business resources from which it expects to gain some future benefit.

An audit involves an examination and verification of records and supporting documents.

Directive leaders who prefer to make decisions and solve problems on their own with little input from subordinates.

Balance of payments is the difference, over a period of time, between the total flow of money coming into a country and the total flow of money going out.

Calculate the balance of trade by subtracting the value of its imports from the value of its exports. If a country sells more products than it buys, it has a favourable balance, called a trade surplus. If it buys more than it sells, it has an unfavourable balance, or a trade deficit.

Balance Sheet = Show assets and liabilities, the amount invested in the business.

The Bank of Canada is a special type of Crown corporation that is owned by the federal government, but has considerable independence to carry out its responsibilities and therefore operates separately from the political process.

Benchmarking involves comparisons to other organizations’ practices and processes with the objective of learning and improvement in both efficiency and effectiveness.

Benefits— compensation other than salaries, hourly wages, or financial incentives.

Big data refers to datasets that are so large and complex that traditional data-processing methods cannot handle them. Its defining characteristics are volume, velocity, variety, veracity, and value (the 5Vs).

A boycott is a nonviolent, organized protest where people refuse to buy products or services, or participate in activities, to express disapproval.

Brand strategy is "The entire experience your prospects and customers have with your company, product or service. Your brand strategy defines what you stand for, a promise you make, and the personality you convey."

Breakeven analysis: to break even (have no profit or loss), the total sales revenue must exactly equal all the expenses (both variable and fixed). 

Lavish or undisclosed gifts designed to influence decision-making cross the line into bribery.

A budget is a financial plan that estimates how much money you'll make and spend over a specific period of time. It can be used by individuals, families, businesses, and governments.

A budget audit provides information about where the organization is with respect to what was planned or budgeted for, whereas a performance audit might try to determine whether the figures reported are a reflection of actual performance.

A business is an organization that strives for a profit by providing goods and services desired by its customers.

The business cycle is the regular economic pattern of upturns and downturns in demand and output within the economy that tend to repeat themselves every three to five years or may last much longer.

A business environment analysis is a systematic process that evaluates the internal and external factors impacting a business.

Business etiquette is a type of social and business behaviour that team members (whether at school or work) are expected to exhibit. It includes how people communicate, dress, and conduct themselves in meetings and social events.

Business information refers to collective data related to a company and its operations, including statistical information, raw analytical data, customer feedback, and sales numbers.

Business law refers to rules, statutes, codes, and regulations established to provide a legal framework within which business may be conducted.

Business participants are the people who participate in conducting the work of the business. These always include the employees and managers, but often include suppliers, customers, and shareholders.

Business risk refers to the potential for a company to experience financial losses or other challenges that could impact its ability to achieve its objectives. These risks arise from uncertainties in the internal and external environment in which the business operates.

CAD refers to the use of computer software to create, modify, analyze, or optimize a design.

CAM refers to the use of computer software and hardware to control and automate manufacturing processes.

The Canadian Charter of Rights and Freedoms is a binding legal document that protects the basic human rights of all Canadians, such as fundamental freedoms, democratic rights, mobility rights, legal rights, equality rights, and language rights.

The Canadian Human Rights Act extends the law to ensure equal opportunity to individuals who may be victims of discriminatory practices based on a set of prohibited grounds (e.g., gender, disability, or religion).

The capacity requirements of the production facility is the maximum number of goods that it can produce over a given time under normal working conditions.

capital budget, which considers the company's long-range plans and outlines the expected financial needs for significant capital purchases such as real estate, manufacturing equipment, plant expansions, or technology.

Capitalism is an economic system that promotes the creation and ownership of capital and wealth.

Carroll’s Pyramid is a well-respected resource for situating corporate social responsibility. In this model, the focus is on managers—not owners—as the principals involved in the company's relationships with its stakeholders.

The cash flow statement reports cash inflows and outflows, and it will identify the amount of cash the company currently holds, which is also reported in the balance sheet.

Centralized decision making is done at the top level of management which makes decision making consistent, but can make lower-level managers feel under-utilized and impedes the development of decision-making skills in these managers.

CIM represents a comprehensive approach to manufacturing where CAD, CAM, and other business and manufacturing processes are integrated using computer systems.

Circular business models offer an alternative that shifts the focus from selling products to providing and preserving value, whether through traditional sales or innovative circular services and activities, such as repair or resale. 

The circular economy represents a paradigm shift from the traditional linear model of "take-make-dispose" to a regenerative approach that emphasizes the restoration and regeneration of products, materials and energy. It challenges conventional metrics of value creation and encourages manufacturers to design products and business models with durability, repairability and recyclability in mind.

The circular flow model is simply a way of depicting how money circulates through the economy from individuals to firms in the form of labor and buying goods and services.

A citation style dictates the information necessary for a citation and how the information is ordered, as well as punctuation and other formatting. Popular citation styles such as APA and MLA provide guidelines to authors in how to format documents for professionalism, for crediting other people's words and ideas via citations and references to avoid plagiarism, and for describing other people using inclusive, bias-free language.

Coincident indicators show the state of the economy today.

The process of negotiating with an employer as a unified entity is known as collective bargaining.

Communicate, both orally and in writing. Whether you’re talking informally or making a formal presentation, you must express yourself clearly and concisely.

Communalism is a political and economic system that aims to eliminate class struggles by having the public own the means of production, such as factories and mines. In a communist society, there is no private property or currency, and wealth is shared equally or based on need. Communism is not the same as a planned economy, but communism is often associated with centrally planned economies.

Comparative advantage, which exists when a country can produce a product at a lower opportunity cost compared to another nation.

In addition to salary and wages, compensation packages often include other financial incentives, such as bonuses and profit-sharing plans, as well as benefits, such as medical insurance, vacation time, sick leave, and retirement accounts.

A competitor analysis in business involves examining similar brands in the same industry to gain insight into other companies offerings, brands, sales, and marketing approaches. 

Compound interest refers to the effect of earning interest on your interest.

With compressed workweeks, rather than work eight hours a day for five days a week, you might elect to earn a three-day weekend by working ten hours a day for four days a week.

Conceptual skills — the ability to reason abstractly and analyze complex situations.

Conflicts of interest occur when individuals must choose between taking actions that promote their personal interests over the interests of others or taking actions that don’t.

Conflicts of loyalty can arise when individuals in leadership positions prioritize personal gains over their professional obligations, leading to ethical and legal repercussions.

Leaders who encourage discussion about issues and then require that all parties involved agree to the final decision.

Leaders who confer with subordinates before making a decision but retain the final decision-making authority.

The consumer buying process involves five steps: Need recognition, Information search, Evaluation of Alternatives, Purchase or No Purchase Decision, Post-purchase Evaluation.

The CPI measures the rate of inflation by determining price changes of a hypothetical basket of goods, such as food, housing, clothing, medical care, appliances, automobiles, and so forth, bought by a typical household.

Contingency and Crisis Planning are plans for what actions to take when things go wrong.

Contingent workers are hired to supplement a company’s permanent workforce.

Controlling involves ensuring that performance does not deviate from standards.

The set of attitudes, values, and standards that distinguishes one organization from another.

Corporate social responsibility is a business model by which companies make a concerted effort to operate in ways that enhance rather than degrade society and the environment.

Corporation—When a business is incorporated ownership shares are created, which produce a taxation and legal distance between the company and its shareholders.

Cost of goods sold: the total cost of the goods that a business has sold.

Costs are expenses including rent, salaries, supplies, transportation, and many other expenses a company incurs from creating and selling goods and services.

In Canada, a credit rating is a numerical score that reflects an individual's or business's creditworthiness, based on their financial behavior and credit history. Every time you use a credit card or borrow money, such as from a bank, your spending and debt habits are recorded.

Credits do the reverse of debits, they decrease asset or expense accounts and increase liability, revenue or equity accounts.

The cultural environment is the set of factors that shape the way people interact with each other and their physical and social environment.

Cultural norms are the standards we live by. They are the shared expectations and rules that guide behavior of people within social groups.

Structuring the company based on the needs of the customers.

Customer rights: the right to safe products, the right to be informed about a product, the right to choose what to buy, and the right to be heard.

Retaining customers is the purpose of customer-relationship management—a marketing strategy that focuses on using information about current customers to nurture and maintain strong relationships with them.

Customers buy the products and/or services from the business. Customers are extremely important to the business. In fact, they are participants, stakeholders, and an external environmental influence.

Data mining involves extracting valuable patterns and relationships from large datasets. Businesses use techniques like clustering, classification, and predictive modeling to derive actionable insights.

Data security is paramount to protect sensitive information from breaches, unauthorized access, and cyberattacks.

Debits increase asset or expense accounts and decrease liability, revenue or equity accounts.

Debt financing, on the other hand, does not require giving up a portion of ownership.

Debt ratios look at how much borrowing a company has done in order to finance the operations of the business. The more borrowing, the more risk a company has taken on, and so the less likely it would be for new lenders to approve loan applications.

Decentralized decision making is spread throughout the organization. Since the responsibilities and decision-making are given to various people holding different positions in an organization, top management can work towards the growth and long-term vision of the company.

Decision-making is the action or process of thinking through possible options and selecting one. 

Drawing on your decision-making skills is often a process in which you must define a problem, analyze possible solutions, and select the best outcome.

Deflation is downward pressure upon the level of economic activity. It is a period of falling demand and prices. It is usually accompanied by reduce output and rising unemployment.

Delegating is the process of entrusting work to subordinates, letting go, trusting – this is challenging for many managers to do; however, it is a necessary skill to learn.

Demand is the quantity of a product that buyers are willing to purchase at various prices.

Leaders who encourage discussion about issues and then require that all parties involved agree to the final decision.

Departmentalization is grouping specialized jobs into meaningful units.

Digital currencies are currencies that are only accessible with computers or mobile phones because they only exist in electronic form.

Discrimination occurs when a person is treated unfairly on the basis of a characteristic unrelated to ability.

Diversity is the presence, in an organization or a community, of a wide range of people with different backgrounds, abilities and attributes including ethnicity, race, colour, religion, age, gender and sexual orientation.

A divisional organizational structure is a type of organizational structure where a company is divided into independent divisions that operate like their own companies within the larger organization. Each division has its own resources, teams, and responsibilities. 

In double-entry accounting, every transaction is recorded with a debit and credit in two or more accounts, which categorize different types of financial activities in a company’s general ledger.

Dumping is the practice of selling exported goods below the price that producers would normally charge in their home markets (and often below the cost of producing the goods).

Economic corporate responsibility refers to the practice of making financial decisions based on a commitment to doing good.

Economic development refers to the process through which a region, country, or community improves the well-being of its citizens by increasing income, reducing poverty, creating jobs, and expanding access to healthcare and education.

An economic indicators are the monthly statistics that provide information on the country's economic performance. There are different types of indicators which are all subject to considerable error, so it is unwise to draw any conclusions from just one month's data.

Economics is the study of how individuals, businesses, governments and nations allocate their limited resources to satisfy their unlimited wants and needs.

Effectiveness is the ability to produce a desired result.

Efficiency is using the least possible amount of resources to get work done, whereas effectiveness is the ability to produce a desired result.

Efficiency ratios tell you how well your assets are being managed.

An extreme form of quota is the embargo, which, for economic or political reasons, bans the import or export of certain goods to or from a specific country.

Employability skills are the skills you need to enter, stay in, and progress in the world of work—whether you work on your own or as part of a team.

The Employment Equity Act of 1986 identifies specific populations which are protected from discrimination (women, visible minorities, indigenous peoples, and people with disabilities).

Employment-related legislation covers the following subjects: employment standards, human rights, federal and provincial privacy, occupational health and safety, workers' compensation, and labour regulations legislation.

The process of giving employees increased autonomy and discretion to make decisions, as well as control over the resources needed to implement those decisions.

ERP is a broader, integrated system that manages and automates a company’s core business processes across multiple departments, including finance, HR, manufacturing, supply chain, sales, and customer relationship management (CRM). It often incorporates MRP as a module.

Equity is a process that ensures everyone has access to the same opportunities.

Equity financing carries no repayment obligation and provides extra working capital that can be used to grow a business.

The equity theory of motivation is the idea that what an individual receives for their work has a direct effect on their motivation.

ESG stands for Environmental, Social, and Governance. It refers to a set of standards used by businesses to evaluate and address their impact on the world, beyond just financial performance.

Creating an ethical business environment involves adherence to laws and regulations, strong corporate governance, and proactive efforts to ensure the well-being of employees, customers, and the community.

Ethical dilemmas are situations in which it is difficult for an individual to make decisions either because the right course of action is unclear or carries some potential negative consequences for the person or people involved.

Ethical issues are the difficult social questions that involve some level of controversy over what is the right thing to do.

An ethical lapse is a mistake or error in judgment that produces a harmful outcome. It is a failure to follow proper ethical principles.

An ethical lapse in honesty and integrity occurs when an individual, organization, or company fails to uphold fundamental ethical principles, such as truthfulness, transparency, and adherence to moral standards. It typically involves actions or decisions that prioritize self-interest, convenience, or profit over fairness, accountability, and ethical responsibility.

Businesses have ethical responsibilities to ensure fair practices and treat customers, employees, and stakeholders with respect.

Ethics is the philosophical discipline concerned with what is morally good and bad, and morally right and wrong

Today, the European Union (EU) is a unique economic and political union between 27 countries that have eliminated trade barriers among themselves.

Currencies are traded in the foreign exchange market. Like any other market, when something is exchanged there is a price. In the foreign exchange market, a currency is being bought and sold, and the price of that currency is given in some other currency. That price is expressed as an exchange rate.

Vroom argues that an employee will be motivated to exert a high level of effort to obtain a reward under three conditions – the employee: believes that his or her efforts will result in acceptable performance, believes that acceptable performance will lead to the desired reward, and values the reward.

Exporting is selling domestic products to foreign customers.

Extrinsic motivation. This is when motivation comes from external factors; in other words, a person needs an incentive to be, stay, or become motivated.

The facility layout is the physical arrangement of resources.

The resources used to create goods and services.

A FICO credit score is a tool used by many lenders to determine if a person qualifies for a credit card, mortgage, or other loan.

Managers have what is known as a fiduciary responsibility to owners: they’re responsible for safeguarding the company’s assets and handling its funds in a trustworthy manner.

Financial accountants furnish information to individuals and groups both inside and outside the organization in order to help them assess its financial performance.

The financial budget plans the use of assets and liabilities and results in a projcted balance sheet.

Financial controllers are responsible for updating financial controls and overseeing all the accounting activities in an organization.

Financial controls are procedures and policies that monitor and manage financial resources to prevent errors, fraud, and optimize allocation.

The financial functional area of a business is responsible for managing the company’s financial resources, including budgeting, accounting, financial reporting, cash flow management, and investment decisions. Its role is to ensure the financial stability and growth of the organization by optimizing financial performance and minimizing risks.

Financial management involves the strategic planning and budgeting of short- and long-term funds for current and future needs. In most companies the finance department comprises two divisions: accounting and financial management.

A financial manager oversees the financial operations of a company. Many financial managers have backgrounds in accounting, banking, business management, economics, or finance. In most organizations, financial managers hold mid to upper-level roles requiring multiple years of experience. They can work in the private or public sectors.

Financial planning—the ongoing process of managing your personal finances in order to meet goals that you’ve set for yourself or your family

The financial planning life cycle of a typical individual’s life has three stages, each of which is characterized by different life events. Stage 1: Focus on building wealth, Stage 2: Focus on preserving and increasing wealth, and Stage 3: Focus on living on one's saved wealth after retirement.

First-line managers (also referred to as customer-facing or front-line) coordinate activities, supervise employees, report to middle-managers, and are involved in day-to-day operations.

Fiscal policy is a government towards its raising of revenue and its level of public spending.

Employers who provide for flextime set guidelines that allow employees to designate starting and quitting times.

Forecasts predict revenue, costs and expenses for a specific future period. Short-term forecasts would include predictions for the upcoming year, while long-term forecasts would include predictions for a period longer than one year into the future.

Foreign direct investment (FDI) refers to the formal establishment of business operations on foreign soil—the building of factories, sales offices, and distribution networks to serve local markets in a nation other than the company’s home country.

On a semiannual or annual basis, they also conduct formal performance appraisals to discuss and evaluate employees’ work performance.

A free market economy is an economic system where the laws of supply and demand determine prices, and the government has limited or no involvement

Free market system is defined as an economy operating by free competition.

The opposite end of the continuum from the autocratic style, is free-rein or laissez-faire(French for “leave it alone”) leadership. Managers who use this style turn over all authority and control to subordinates.

The FTSE4Good Index Series is designed to measure the performance of companies demonstrating specific Environmental, Social and Governance (ESG) practices. 

Functional areas in a business refer to different departments or sections that perform specific tasks, such as human resources, operations, accounting, and finance.

fundamental accounting equation: Assets = Liabilities + Owner’s Equity

A Gantt chart, named after the designer, Henry Gantt, is an easy-to-use graphical tool that helps operations managers determine the status of projects.

In preparing financial statements, financial accountants adhere to a set of standards or guidelines, known as Generally Accepted Accounting Principles (GAAP). GAAP is used mainly by companies headquartered in the U.S., while most other countries follow the international financial reporting standards (IFRS).

Structuring the company so that responses to customers in their geographical areas can be done more effectively. 

A gift intended to maintain goodwill or celebrate a partnership might be ethical if it’s modest and transparent.

Globalization is the process of increasing economic and social integration between countries, and the increased flow of goods, services, and people across borders.

Goods are tangible items manufactured by businesses, such as laptops. 

Your GPA score (Grade Point Average) is a cumulation of the grades across the courses throughout your program. To graduate your institution will have a minimum GPA score you must achieve, and should you wish to further your education in the future your GPA score may factor into whether or not you will be accepted for enrollment at specific colleges or universities. 

The grapevine represents the informal communication network within an organization. It is a natural part of corporate culture, where employees share information unofficially through casual conversations, rumors, or personal interactions.

Greenwashing refers to the practice of misleading consumers or stakeholders into believing that a company, product, or initiative is more environmentally friendly or sustainable than it actually is.

Gross domestic product (GDP) is defined as the market value of all goods and services produced by the economy in a given year.

Gross national product is the value of all products and services produced by citizens of a country both domestically and internationally minus income earned by foreign residents.

The difference between sales and cost of goods sold is your gross profit, also known as gross margin.

In Canada, workplace health and safety are governed by several key pieces of legislation designed to protect workers and ensure safe working environments: Canada Labour Code, provincial and territorial health and safety legislation, occupational health and safety regulations, and workers' compensation legislation.

Herzberg’s two-factor theory. Note that motivation factors (such as promotion opportunities) relate to the nature of the work itself and the way the employee performs it. Hygiene factors (such as physical working conditions) relate to the environment in which it’s performed.

If an applicant progresses satisfactorily through all the selection steps, a decision to hire the person is made. Usually for higher-level jobs or jobs within unionized environments, the decision will be based on the test scores (if applicable) and the interview scores each candidate obtained.

Hiring externally gives you an opportunity to bring fresh ideas and skills into the company.

Hiring internally sends a positive signal to employees that they can move up in the company—a strong motivation tool and a reward for good performance.

HR forecasting is the process of predicting how a company's staffing needs change with time so that it can remain prepared to operate successfully. Organizations use HR forecasting to decide to hire more people, reduce their staffing or adjust how they divide responsibilities.

Human resource (HR) management is the process of hiring, developing, motivating, and evaluating employees to achieve organizational goals.

human resource management (HRM) consists of all actions that an organization takes to attract, develop, and retain quality employees.

The Human Resources (HR) functional area is an organizational function that is about searching for, selecting, training, and maintaining workers.

Inclusion, diversity, equity, and accessibility (IDEA) are a set of practices that aim to ensure that people from a variety of backgrounds are represented and can thrive. 

Importing is buying products overseas and reselling them in one’s own country.

Inclusion refers to taking into account differences among individuals and groups when designing something (e.g., policy, program, curriculum, building, shared space) to avoid creating barriers.

In addition to complying with equal employment opportunity laws, many companies make special efforts to create an inclusive workforce by recruiting employees who are underrepresented in the workforce according to sex, race, or some other characteristic.

Income Statement = Shows sales, expenses, and whether or not a profit was made.

Understanding of the four stages of the industry life cycle include expansion, peak, contraction, and trough (discussed in the chapter on economics) and industry dynamics informs management's investment decisions and risk management strategies. External factors that affect a business are often analyzed through a PEST analysis.

Inflation is a sustained rise in the average prices of goods within an economy. It can also be explained as the fall in the purchasing power of money, since it is usual for wages to move ahead at least as fast as the price level.

Information management encompasses the collection, storage, organization, and distribution of information to optimize business operations and decision-making.

Effective information sharing enhances collaboration and decision-making within and between organizations.

Information technology is the organizational function that aims to understand the information and data needs of the company in terms of obtaining, analyzing, and protecting information.

During initial screening, an applicant completes an application form and/or submits a résumé, and has a brief interview of 30 minutes or less.

Inputs are the elements which goes into producing a good or service such as labor, raw materials, capital, land, entrepreneurship etc.

Retailers are marketing intermediaries that sell products to the eventual consumer.

The internal business environment in business refers to the elements within the organization that influence its operations and decision-making. It encompasses factors like the company’s culture, management practices, employees, and work processes.

Because of high domestic labour costs, many U.S. companies manufacture their products in countries where labour costs are lower. This arrangement is called international contract manufacturing, a form of outsourcing.

Under an international franchise agreement, a company (the franchiser) grants a foreign company (the franchisee) the right to use its brand name and to sell its products or services. The franchisee is responsible for all operations but agrees to operate according to a business model established by the franchiser. The franchisee pays royalties to the franchiser. In turn, the franchiser usually provides advertising, training, and new-product assistance.

An international licensing agreement allows a foreign company (the licensee) to sell the products of a producer (the licensor) or to use its intellectual property (such as patents, trademarks, copyrights) in exchange for what is known as royalty fees.

The IMF loans money to countries with troubled economies

The International Monetary Fund (IMF) is governed by and accountable to its 191 member countries and has three critical missions: furthering international monetary cooperation, encouraging the expansion of trade and economic growth, and discouraging policies that would harm prosperity.

Interpersonal skills, also known as relational skills — the ability to get along with and motivate other people — are critical for managers in mid-level positions.

Intrinsic motivation. This is when motivation comes from within; in other words, a person has it within themselves to be, stay, or become motivated

The task of striking a balance between two threats to productivity: not enough inventory and carrying too much inventory. The process of striking this balance is called inventory control, and companies now regularly rely on a variety of inventory-control methods.

Investing is what someone does when they buy something in hopes that it will grow in value over time.

Involuntary termination is when an employer ends an employee's employment without the employee's consent. It can happen for a number of reasons, including: poor performance, unprofessional behavior, policy violations, economic factors, and organizational changes

ISO refers to the International Organization for Standardization; the 31000 part refers to a family of standards for risk management. As well as being an umbrella term for a bunch of different standards, ISO 31000 also refers to a singular standard, specifically known as ISO 31000:2018. 

A job analysis identifies the tasks, responsibilities, and skills that a job entails, as well as the knowledge and abilities needed to perform it.

A job description, which lists the duties and responsibilities of a position

Job enlargement—the policy of enhancing a job by adding tasks at similar skill levels.

Job enrichment is the practice of adding tasks that increase both responsibility and opportunity for growth.

The practice of job rotation allows employees to rotate from one job to another on a systematic basis, often but not necessarily cycling back to their original tasks.

Under job sharing, two people share one full-time position, splitting the salary and benefits of the position as each handles half the job.

Organizing activities into clusters of related tasks that can be handled by certain individuals or groups is called job specialization.

A job specification, which lists the qualifications—skills, knowledge, and abilities— needed to perform the job

A joint venture involves two or more companies forming a new, independent legal entity to pursue a specific business objective or project. The companies share ownership, profits, risks, and governance in the newly created entity.

With just-in-time (JIT) production: the manufacturer arranges for materials to arrive at production facilities just in time to enter the manufacturing process.

Labelling not only identifies the product but also provides information on the package contents: who made it and where or what risks are associated with it (such as being unsuitable for small children).

Lagging indicators show the health of the economy in the recent past.

The law of supply and demand is an economic theory that explains how the relationship between supply and demand determines prices. When supply is greater than demand, prices fall, and when demand is greater than supply, prices rise.

The relatively consistent way that individuals in leadership positions attempt to influence the behaviour of others.

Leading is providing focus and direction to others and motivating them to achieve organizational goals.

Leading indicators give a prediction of future events.

Learning Styles refers to the different methods of learning or understanding new information, the way a person takes in, understands, expresses and remembers information. There are 4 predominant learning styles: Visual, Auditory, Read/Write, and Kinaesthetic.

Legal compliance refers to conducting a business within the boundaries of all the legal regulations of that industry. 

Businesses have legal responsibilities to comply with laws and regulations at the local, national, and international levels.

Liabilities: the business debts that it owes to outside individuals or organizations.

Lifelong learning is the ongoing, voluntary, and self-motivated pursuit of knowledge for either personal or professional reasons.

Liquidity ratios tell you how well positioned a company is to pay its bills in the near term. Liquidity refers to how quickly an asset can be turned into cash. For example, share of stock is substantially more liquid than a building or a machine.

Long-term financing refers to borrowing or issuing equity shares for more than one year.

When costs and expenditures are greater than revenue.

M-1 is the narrowest measure, and it includes the most liquid forms of money — the forms, such as cash and chequing account funds, that are spent immediately.

M-2 includes everything in M-1 plus near-cash items invested for the short term — savings accounts, time deposits and money market mutual funds.

The macro-environment refers to the broader condition of an economy as opposed to specific markets.

Macroeconomics looks at the decisions of countries and governments.

Products are customized to meet the needs of the buyers who order them. This process, is called a make-to-order strategy.

The main objective of managerial accounting is to assist the management of a company in efficiently performing its functions: planning, organizing, directing, and controlling.

Managers are designated leaders according to the organizational structure but may need to use negative consequences or coercion to achieve change.

Market research is the process of gathering, analyzing, and interpreting information about a market, product, service, and customers. It helps companies understand their customers, competitors, and industry, and make strategic decisions about marketing and selling.

Market segments are groups of potential customers with common characteristics that influence their buying decisions. You can use a number of characteristics to segment a market including demographic, geographic, behavioral, and psychographic.

Marketing plays a crucial role in a business by helping to identify, create, and satisfy customer needs and wants through the promotion of products or services. It is defined as "Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."

The marketing concept is a business philosophy where the organization's goals are achieved by identifying customer needs and delivering value more effectively than competitors.

The marketing mix is the combination of four factors, known as the "4 Ps" of marketing. The 4 Ps are designed to serve the target market and include product, price, promotion, and place. 

A marketing strategy consists of two major elements: the organization must determine its target market and then develop a marketing mix to meet the needs of that market.

According to Maslow’s theory, the idea is that we need to satisfy lower-level needs before we move to the other levels; once we have satisfied said need(s), we move on to the next level as the previous one no longer satisfies us.

Mass customization combines the advantages of customized products with those of mass production. This approach requires that a company interact with the customer to find out exactly what the customer wants and then manufacture the good, using efficient production methods to hold down costs.

Mass production (or make-to-stock strategy), the practice of producing high volumes of identical goods at a cost low enough to price them for large numbers of customers.

A software tool called material requirements planning (MRP), relies on sales forecasts and ordering lead times for materials to calculate the quantity of each component part needed for production and then determine when they should be ordered or made.

Corporate Social Responsibility (CSR) is typically measured through a combination of quantitative and qualitative metrics that assess how well a company is meeting its social, environmental, and ethical obligations. Different organizations use various frameworks, tools, and reporting standards to evaluate CSR performance.

The micro-environment may be defined as including groups and organizations that have a direct relationship with the business.

Microeconomics is the study of individuals and business decisions.

Middle-level managers allocate resources, oversee first-line managers, report to top-level managers and develop and implement activities.

Employers must obey laws governing minimum wage and overtime pay. A minimum wage is set by the provincial government.

A mixed economy is an economic system where some resources are planned for by the government, while citizens control others. The world's dominant economic organization is a mixed economy.

A mixed market economy is defined as an economic system blending elements of a market economy with elements of a planned economy, markets with state interventionism, or private enterprise with public enterprise.

Monetary policy is concerned with the money supply, rates of interest, exchange rates and the amount of credit available in order to control the level of spending within the economy.

Money is anything that is acceptable as payment for goods and services. It affects our lives in many ways.

Monopolistic competition occurs when an industry has many firms offering products that are similar but not identical. Unlike a monopoly, these firms have little power to curtail supply or raise prices to increase profits.

A monopoly is a market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.

A company that operates in many countries is called a multinational corporation (MNC).

A nation's deficit is when a government spends more money than it receives in revenue over a period of time.

National debt is the liabilities of the government sector. Historically, government deficits have occurred much more often than surpluses since government typically spends more than it takes in.

The difference between gross profit and operating expenses is your net income or profit, which is the proverbial “bottom line.”

The non-profit or voluntary sector includes non-governmental, non-profit organizations that receive support from individual citizens, government, and businesses.

An organization that exists to achieve some goal other than gaining profit.

Oligopoly means few sellers. In such an oligopolistic market, each seller supplies a large portion of all the products sold in the marketplace.

The operating budget helps plan future revenue and expenses and results in a projected income statement.

Operating expenses: the costs of operating a business except for the costs of things that were sold.

Operational planning generally assumes the existence of organization-wide or sub-unit goals and objectives and specifies ways to achieve them.

Operations is the organizational function that is focused on producing the goods and/or services of the business.

Operations management is a vital component of any business, encompassing the practices, techniques, and tools that organizations use to produce and deliver goods and services efficiently and effectively.

Operations managers manage the process that transforms inputs into outputs. Their responsibilities can be grouped as follows: production planning, production control., and quality control.

Opportunity cost indicates what must be given up to obtain something that is desired.

Businesses use organizational charts to depict the reporting structure within the organization.

Organizing is the second management function and it is the process of coordinating and allocating a firm's resources in order to carry out its plans.

An orientation program introduces a new employee to the company's people, policies, and procedures.

Output is the finished product coming from a production process.

Outsourcing in business refers to the practice of contracting out certain business functions, tasks, or processes to external vendors or service providers, rather than handling them in-house.

Owner’s equity: the investment in the business.

Packaging can influence a consumer’s decision to buy a product or pass it up. Packaging gives customers a glimpse of the product, and it should be designed to attract their attention, with consideration given to color choice, style of lettering, and many other details.

Leaders who share decision making with group members and encourage discussion of issues and alternatives; includes democratic, consensual, and consultative styles.

Partnership— A partnership is similar to a sole proprietorship, but instead of one proprietor there are two or more.

The impact of disputes can be lessened if the partners have executed a well-planned partnership agreement that specifies everyone’s rights and responsibilities.

Perceived Risks are based on feelings, fears, or assumptions and may lack concrete evidence. They often result from misinformation, cognitive biases, or heightened awareness.

Perfect competition exists when there are many consumers buying a standardized product from numerous small businesses. Because no seller is big enough or influential enough to affect price, sellers and buyers accept the going price.

A personal budget (for an individual) or household budget (for a group sharing a household) is a plan for the coordination of income and expenses.

Personal credit is a measure of an individual’s creditworthiness, represented by a credit score. It serves as a determining factor for lenders when assessing loan applications and setting interest rates.

Your “personal debt” is how much money you owe to other people, businesses, banks, credit card companies, and other creditors.

Personal finance is the application of financial principles to the monetary decisions that you make either for your individual benefit or for that of your family.

Personal risk tolerance refers to an individual's ability or willingness to accept uncertainty and potential loss in pursuit of a goal. It plays a critical role in decision-making, particularly in areas like investments, career choices, and lifestyle decisions.

Personal selling refers to one-on-one communication with customers or potential customers.

PERT (which stands for Program Evaluation and Review Technique) charts are designed to diagram the activities required to produce a good, specify the time required to perform each activity in the process, and organize activities in the most efficient sequence. It also identifies a critical path: the sequence of activities that will entail the greatest amount of time.

PEST is the term used for an external environment scan, whereby a business collects and analyzes data on the political, economic, social, and technological aspects of the business environment in which the business operates.

Pet peeves are the thing that annoy you, often things other people do that bother you.

Philanthropic responsibility is a business's commitment to improving society through charitable activities, community support, and social initiatives. It's a key aspect of corporate social responsibility (CSR), and it emphasizes that businesses should not only focus on profit-making.

Many large corporations support various charities, an activity called philanthropy.

Picketing is a labor tactic where workers gather outside a workplace to protest and persuade others to take industrial action.

Place" is the third of the "4Ps" of marketing and refers to where and how a company sells its products to consumers. The goal is to reach the target audience and meet sales targets.

Planned economy is a system where the state determines production levels and regulates prices. In a centrally planned economy, the state uses advanced planning mechanisms to determine production levels, rather than supply and demand. 

Planned system is an economic system in which the elements of an economy (such as labor, capital, and natural resources) are subject to government control and regulation designed to achieve the objectives of a comprehensive plan of economic development.

Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives.

The ability to influence others to behave in a particular way.

Price is the only element of the marketing mix that directly generates revenue for a company. It's also the most flexible element, and it's important to continuously monitor and revise it.

Price stability is the stable level of prices in the economy, which avoids long periods of inflation or deflation and sustains the value of money over time.

Primary data is newly collected information that addresses specific questions.

The private business sector includes goods and services produced and delivered by private individuals or groups as a means of enterprise for profit.

Structuring the company based on processes needed to create the product or service. 

The producer price index (PPI) tracks the average change in prices at the wholesale level (e.g., raw materials, product components that require further processing, and finished goods sold to retailers).

It’s important to remember that when it comes to this first ‘P” of the marketing mix, the term "product" refers to both products and services.

Product division is structuring a company based on its product lines.

A product life cycle is a theoretical model describing a product's sales and profits over the course of its lifetime. During this cycle the product typically goes through four stages: an introductory stage, a growth stage, a maturity stage, and a declining stage.

Production refers to the process of transforming inputs (such as labour, capital, and raw materials) into outputs (goods and services) that a firm wishes to sell.

Effective production planning requires a thorough analysis of market demand, capacity capabilities, and available resources.

Productivity refers to how efficiently goods and services are being produced.

Professionalism is a broad concept that includes a person's attitude, work ethic, and conduct. It also involves being punctual, dressing appropriately, and having a positive attitude.

If Microsoft has money left over after it pays all costs, it has a profit.

Profitability ratios tell you how much profit is made relative to the amount invested (return on investment) or the amount sold (return on sales).

Promotional mix is the means by which a company communicates with its customers and includes advertising, social media, email marketing, personal selling, sales promotion, public relations, and more.

During prosperity, the economy expands, unemployment is low, incomes rise, and consumers buy more products.

The public business sector includes goods and services produced, delivered, and allocated by the government and public sector organizations (publicly controlled government business enterprises).

Public relations (PR) refers to managing how others see and feel about a person, brand, or company

The process of acquiring the materials and services to be used in production is called purchasing (or procurement).

Quality is defined as the degree to which a product or service meets or exceeds customer expectations and adheres to established standards or specifications. It is a multifaceted concept that can be viewed through different lenses, such as product characteristics, customer satisfaction, and continuous improvement.

Quality of life refers to the general level of human happiness based on factors including life expectancy, educational standards, health, sanitation, and leisure time.

A quota imposes limits on the quantity of a good that can be imported over a period of time.

Real Risks are backed by data, evidence, or historical trends. They are measurable and often require proactive mitigation.

Recruiting is the process of identifying suitable candidates and encouraging them to apply for openings in the organization.

References are people who will attest to your skills and abilities. The best references are former or current employers.

Relationship-building roles help team members understand their roles, support them in their roles, and maintain or improve group cohesiveness.

Revenue is the money a company receives by providing services or selling goods to customers.

The potential to lose time and money or otherwise not be able to accomplish an organization's goals.

Risk management is the structured process of identifying potential threats, evaluating their likelihood and impact, and developing strategies to minimize or eliminate their adverse effects.

Risk tolerance in a business context refers to the degree of uncertainty and potential loss an organization is willing to accept to achieve its objectives. It reflects the company's capacity and willingness to take on risks as part of its strategy and decision-making processes.

A sales promotion is a marketing strategy that uses temporary offers or campaigns to increase sales, encourage customer loyalty, or build brand awareness

Scarcity is one of the key concepts of economics. It means that the demand for a good or service is greater than the availability of the good or service. 

Secondary data is information already collected, whether by the company or by others, that pertains to the target market.

Loans that involve some type of collateral are referred to as secured loans or secured credit.

The tool most widely used in making hiring decisions is the selection interview, an in-depth discussion of an applicant’s work experience, skills and abilities, education, and career interests.

Selection is the process of determining which people in the applicant pool possess the qualifications necessary to be successful on the job.

Intangible offerings of business that can't be held, touched, or stored

The SERVQUAL model (Parasuraman et al., 1988) is commonly used in service industries to measure quality across five dimensions: reliability, responsiveness, assurance, empathy, and tangibles. This framework allows businesses to identify specific areas where they can improve to meet or exceed customer expectations.

Sexual harassment occurs when an employee makes “unwelcome sexual advances, requests for sexual favours, and other verbal or physical conduct of a sexual nature” to another employee.

Short-term financing means business financing from short-term sources, which are for less than one year.

Site selection involves measuring the needs of a new project against the merits of potential locations.

Selecting a leadership style based on the maturity and competency level of those who will complete the task.

SMART is an acronym used to guide and set goals: Specific, Measurable, Attainable, Relevant, and Time Based.

Social media marketing is the practice of including social media as part of a company’s marketing program.

Socialism is an economic and political system where the means of production are owned by the public or the state, rather than private individuals. It's based on the idea that shared ownership of resources leads to a more equal society.

Sole proprietorship—A sole proprietorship is quite informal and easily created, which is why it’s the most common structure chosen by new entrepreneurs.

Span of Control can be defined as the total number of direct subordinates that a manager can control or manage.

The SQ4R reading system is designed to help you study your textbook and apply reading and notetaking skills. The letters in SQ4R stand for five steps: survey, question, read, reflect, recite, and review.

Stakeholders are those affected by the business's operations and its decisions. Examples of stakeholders include shareholders, investors, the community, customers, competitors, and governmental agencies.

The standard of living of any country is measured by the output of goods and services people can buy with the money they have.

Statement of Cash Flows = Show how much cash is coming in and going out.

Statistical process control (SPC) is defined as the use of statistical techniques to control a process or production method. SPC tools and procedures can help you monitor process behavior, discover issues in internal systems, and find solutions for production issues. Statistical process control is often used interchangeably with statistical quality control (SQC).

A strategic alliance is an agreement between two companies (or a company and a nation) to pool resources in order to achieve business goals that benefit both partners.

A strategic HR plan lays out the steps that an organization will take to ensure that it has the right number of employees with the right skills in the right places at the right times.

Strategic marketing planning involves setting goals and objectives, analyzing internal and external business factors, product planning, implementation, and tracking your progress.

Strategic planning involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment.

Stress is a physical, mental, and emotional response to a difficult event. Stress Management offers a range of ways to help you better deal with stress and difficulty in your life. 

A strike is a collective work stoppage by employees in response to an employer to force them to agree to certain terms of employment.

Supply is the quantity of a product that sellers are willing to sell at various prices.

A supply chain refers to the network of individuals, organizations, resources, activities, and technologies involved in the production and distribution of a product or service. It encompasses every stage from sourcing raw materials to delivering the final product or service to the consumer.

Supply chain management (SCM) is the monitoring and optimization of the production and distribution of a company’s products and services. It seeks to improve and make more efficient all processes involved in turning raw materials and components into final products and getting them to the ultimate customer.

SWOT analysis is an examination of the internal and external factors that impact the organization and its strategies. Generally, the internal factors are strengths and weaknesses; the external factors are opportunities and threats.

Tactical planning is intermediate-range (one to three years) planning that is designed to develop relatively concrete and specific means to implement the strategic plan. Middle-level managers often engage in tactical planning.

The target market is the specific group of consumers, with similar needs and wants, toward which a firm directs its marketing efforts. A target market is the group of people who are most likely to buy your product or service.

Tariffs are taxes on imports.

Task-facilitating roles help the team accomplish goals.

A team is a group of people with certain skills who share a common purpose, approach, and performance goals.

Team cohesion is the strength and extent of interpersonal connection existing among the members of a group. It is this interpersonal bond that causes members to participate readily and remain motivated to accomplish the set goals.

Team conflict is the breakdown of interpersonal relationships between members of a team.

Technical skills — the ones you need to perform specific tasks

Telecommuting means that you regularly work from home (or from some other non-work location).

"The 7 Habits of Highly Effective People" written by Stephen R. Covey based on Covey's belief that the way we see the world is entirely based on our own perceptions. In order to change a given situation, we much change ourselves, and in order to change ourselves, we must be able to change our perceptions.

The Equilibrium Price is the price point at which the demand and supply curves intersect.

The four functions of management--planning, organizing, leading and controlling--serve as the pillars that allow organizations to meet their goals.

Time management is the practice of planning and controlling how you use your time to be more productive and efficient. It involves prioritizing tasks, setting deadlines, and avoiding distractions. The goal of time management is to complete important tasks on time while also balancing your personal, professional, and academic responsibilities.

Time management skills are techniques that help you plan and organize your time to complete tasks and achieve goals.

The time value of money, or TVM, means that any amount of money has more value now than it will have in the future.

Top-level managers set objectives, scan the business environment, and plan and make decisions that affect the overall health of the organization.

Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing. It streamlines supply chain management, improves the customer experience, and ensures that employees are up to speed with training.

Trade controls are policies that restrict free trade, and governments continue to control trade.

A country has a trade surplus when it sells more to other countries than it buys from them.

Even with some experience, knowledge, and skills your new employer will still want to provide you with training specific to the technologies, processes, and practices used by the organization.

Transformational leadership is a leadership style that can inspire positive changes in those who follow.

ransparency International reports on corruption and publishes an annual Corruption Perceptions Index that rates the world’s countries. Transparency International annually rates nations according to “perceived corruption" and defines corruption as "the abuse of entrusted power for private gain." A score of 100 would be perfect (corruption free) and anything below 30 establishes that corruption is rampant.

The time value of money, or TVM, means that any amount of money has more value now than it will have in the future.

Statistics Canada tracks unemployment and reports the unemployment rate: the percentage of the labour force who are at least 15 years old that is unemployed and actively seeking work.

A union is a group of workers who join together to negotiate with an employer over pay, benefits, scheduling, and other workplace policies and conditions.

The United Nations' Sustainable Development Goals (SDGs) are a set of 17 goals that aim to achieve peace and prosperity for people and the planet.

Unsecured loans, on the other hand, do not require collateral. Because there is no asset backing the loan, these loans are considered higher risk for the lender, which typically results in higher interest rates. Unsecured loans, such as personal loans or credit card debt, often come with interest rates ranging from 10% to 30%, depending on your credit score and financial history.

USMCA is a free trade agreement between the United States, Mexico, and Canada which replaced the NAFTA free trade agreement.

Utility refers to the inherent usefulness or the ability of a product or service to satisfy a customer's needs and wants. It is often measurable and tied directly to functionality.

Value is the customer’s perception of the benefits they receive compared to the cost or effort required to obtain the product. It is subjective and influenced by factors like branding, emotional appeal, and customer experience.

Visualization converts data into graphical representations, making complex datasets easier to understand and interpret. Popular tools include Tableau, Power BI, and Google Charts.

Voluntary termination is when an employee chooses to leave their job of their own accord, without pressure from their employer. It's also known as voluntary resignation.

A whistleblower is someone who reports waste, fraud, abuse, corruption, or dangers to public health and safety to someone who is in the position to rectify the wrongdoing.

Your work culture is the shared set of values, beliefs and attitudes that guide your organization, and it’s reflected in the way you treat your customers and employees.

Work-life balance generally refers to a balance between your personal and work life.

The World Bank is an important source of economic assistance for poor and developing countries.

The World Trade Organization (WTO) encourages global commerce and lower trade barriers, enforces international rules of trade, and provides a forum for resolving disputes.