Business Concepts Summary
Angel investors - ANSWER Wealthy individuals that invest in early-stage businesses
Balance of trade - ANSWER Relationship between importing and exporting
Balanced scorecard approach - ANSWER Method of control that looks at financial and non-
financial measures
Benchmark interest rate - ANSWER Rate at which the Bank of Canada loans money to
financial institutions
Business - ANSWER Activity carried on for profit
Business cycles - ANSWER Rise and fall in economic activity over time
Business model - ANSWER How a company creates and delivers value to customers
Comparative advantage - ANSWER Countries should sell what they can produce most
efficiently
Consumer Price Index (CPI) - ANSWER Price index that compares the change in prices for
commonly purchased goods
Contingency plans - ANSWER Planned courses of action when original plans don't go as
anticipated
Contract manufacturing - ANSWER Finding a foreign manufacturer to make your product
Corporate philanthropy - ANSWER Company donates money or time/skills to various causes
Corporate Social Responsibility (CSR) - ANSWER Company's commitment to take care of
those around them in society
Corporation - ANSWER Incorporated business considered a separate legal entity
Crowdfunding - ANSWER Raising funds from people online
Crown corporation - ANSWER Company owned by the government
Depression - ANSWER Severe form of a recession characterized by a longer period of
declining economic activity
Deregulation - ANSWER Removal of laws and regulations to allow for more competition
Economies of scale - ANSWER Advantages of having the cost of production spread over a
larger number of units produced
Embargo - ANSWER Ban on the import or export of specific products
Environmental scan - ANSWER Assessment of the business environment to identify factors
that could impact the growth and success of a business
EQ - ANSWER Emotional Quotient, focuses on soft skills
Ethical dilemma - ANSWER Problem where a difficult choice has to be made with no
desirable alternatives
Angel investors - ANSWER Wealthy individuals that invest in early-stage businesses
Balance of trade - ANSWER Relationship between importing and exporting
Balanced scorecard approach - ANSWER Method of control that looks at financial and non-
financial measures
Benchmark interest rate - ANSWER Rate at which the Bank of Canada loans money to
financial institutions
Business - ANSWER Activity carried on for profit
Business cycles - ANSWER Rise and fall in economic activity over time
Business model - ANSWER How a company creates and delivers value to customers
Comparative advantage - ANSWER Countries should sell what they can produce most
efficiently
Consumer Price Index (CPI) - ANSWER Price index that compares the change in prices for
commonly purchased goods
Contingency plans - ANSWER Planned courses of action when original plans don't go as
anticipated
Contract manufacturing - ANSWER Finding a foreign manufacturer to make your product
Corporate philanthropy - ANSWER Company donates money or time/skills to various causes
Corporate Social Responsibility (CSR) - ANSWER Company's commitment to take care of
those around them in society
Corporation - ANSWER Incorporated business considered a separate legal entity
Crowdfunding - ANSWER Raising funds from people online
Crown corporation - ANSWER Company owned by the government
Depression - ANSWER Severe form of a recession characterized by a longer period of
declining economic activity
Deregulation - ANSWER Removal of laws and regulations to allow for more competition
Economies of scale - ANSWER Advantages of having the cost of production spread over a
larger number of units produced
Embargo - ANSWER Ban on the import or export of specific products
Environmental scan - ANSWER Assessment of the business environment to identify factors
that could impact the growth and success of a business
EQ - ANSWER Emotional Quotient, focuses on soft skills
Ethical dilemma - ANSWER Problem where a difficult choice has to be made with no
desirable alternatives
