The Introduction of Business
Accounting
Balance sheets
assets are things that you own with a dollar value.
liabilities are things that you owe like a bill.
owners equity is your net worth after you do assets-liabilities and that will = your net worth which is Owners equity.
income statement
Revenue, Revenue is money earned from preforming a service or selling goods.
Expenses, Expenses is money that is spent.
Net income, Net income mean you have a profit greater than your expenses.
Net Loss, Net loss is when you expenses are greater than your income.
Markiting
Branding
Brand name is a word, or a group of words. to distinguish a businesses product from it's competitors
Logo/Trademark is when a business combines there name with a special symbol i.e.
a Slogan is a short catchy phrase that will catch peoples attention very easily.
Sales
Reaserch
Distribution
Advertising
Promotion
Price
Pricing stratiges involve the following decisions
Reflecting on what a customer is willing to pay for the produce
What the competitors are selling their product for.
What image to project to the customers
Place
place stratiges involve the following decisions.
Where a product is to be distibuted locations stores.
How a product is being distibuted, Online, storefront or both
Direct competition
Very similar products addresing the same need.
Indirect competition
The options are not directly related to eachother
Benifits of compitition
Increased selection
Altreative choices
Better prices
Increased productivity
Product improvments
Technology advansments
The product-service mix
Installation
Delivery
Extended warrenties
Alterations
Advice
Carry outs
Gift wrapping
Lablling
Part of packaging info for the customer to see
Product ingredians
The Marketing Mix
The time and money spent on the Marketing activities reqiured to move a particular product or service from the producer to the consumer.
Product
Place
Promotion
price
The compitition
The consumer
Personal finances
Ways we us are money
Spend
On goods and services
Save
For future use
Invest
To increase value over time
Doante
To help assist others in need
Gamble
Bet on luck for a gain
Big expensive purchases require some big dicision making. For instance, buying a house or car isn't something you rush into.
Money avaliable
Pre-approval from the bank
Bank looks into your finalcial position ( salary, credit rating, assest, cash, work, history, .ect) to see what type of risk you'd be.
Used to determaine how much of a loan you qualify for.
costs (expenses)
Question: What are your monthly cost.
In other words: How much desposable income (take home pay) is left to play your monthly bills such as: food, clothing, taxes, utilitse, ect.
Buyer behaviour
Indaviduals have different wants and needs that influance their buying decisions
For example:
So people might view a home purchase as a burdun, rather then a benifit.
Might prefer to pay rent to avoid having to cut the grass, paying property taxes directly, ect.
Others might prefer to spend their money on the purchase of a home, knowing that at the end of the term, they would have something to show for their efforts and will own versus rent what they have been paying for.
Comparison shopping and product info.
How do you compare big items?
Make a list detalling important "must haves" for you.
Compare your different choices (pros vs cons) in order to decide which choice suits you best.
Service
Somehing that you pay someone else to do for you because you don't have those particular skills or knowlage
I.e real estate agent, mechanic, stock broker, ect
Quality
Question: should you pay more and get high quality. Or should you pay less and get mediocre quality
Warranties and gaurantees
Warranty:provides after sales service on a product for a specified period of time.
Gaurantee: a formal promise or assurance that goods/services are of a sepcific quality.
Payroll - vocabulary
Gross pay
Gross means "big" total pay before deductions
Net pay
"take home" pay actual amount on your paycheque after deductions
Deductions
Mandatory gov't and any voluntary amounts taken off of your gross pay
Salary
Get paid the same amount every pay- not paid for any O/T
Discretionary income
Money left over after all necessities ( I.e food, rent, mortgage, utilities, ect) have been paid.
Hourly rate
Get paid a set amount per hour. if any O/T. you will get paid extra. 1.5 double.
Commission
Get paid a percent amount depending on your sales (how much you sell)
Piecework
Get paid for every item you make. The more you make the more money you get.
Payroll- Government deductions.
Income tax
Anyone who earns income has to pay federal and provincel income tax.
The money goes towards federal expenses such as defense, social programs ( EI, CPP) Canadian debt and to provicial expenses such as health, education, welfare and provicial debt.
CPP: Canadian pension plan
Anyone who works and is over 18 years old contributies to CPP.
Employees (workers) and employers bosses both contribute to CPP.
Pay into it from every paycheque.
When you reitire, become disabled or should your spouse pass away, you can recive CPP.
EI: employment insurance
Pay into it from every paycheque even if you are not yet 18.
If you get laid off, not fired and have worked 420 hours you can collect on EI cheques for awhile.
Types of expenses
How does the government recive the money?
Everytime you get paid, mandetory deductions are subtracted from your paycheque the employer then remits these taxes to the government.
At the end of the year, the government wants to make sure that you have paid the correct amount of taxes from your income bracket, thus, every year, you are expected to file an income tax return by april 30th.
The amount of income tax that you have already paid from your pay will be compared to the amount of tax that would be payable for your situation.
Paycheque formula
Non government deductions
Company pension plan
Take off money to put into a retirment plan (over 65) collect a work pension ( plus government pension- CPP)
Health plan
Take off money to pay for benifits such as, glasses, dental, drug plan, ect
Savings plan
Take off money to put into a savings account (forces you to save)
RRSP
Registered retierment savings plan is a government savings plan.
Life insurance
Deduct money in order for you/your family to recive money when you pass away.
Charitable doanations
Take off moey for charities, I.e, united way, M.A.D.D, ect.
Union dues
Take off money to pay to pay for union dues automatically
Income level factors
Why do some jobs pay more than others?
Education: the more education you have, the greater chances you will earn more money.
Expierence: the more experiance you have, the more valuable you are because you won't take as long to be trained (which is costly time and money)
Personal preformance: Employers don't want to lose good hard working employee's. Competent staff become valuable assets. The better you are, the greater possiablity of reciveing a higher salary.
Uniqueness of abilities: I.e being bilinugal, have a rare skill set or training.
Factors relating to job market
Type of business
some types of businesses pay more then others.
success of the business
How successful a business is will determaine what saleries they can afford to pay.
Economic conditions
If the economy is booming, "money is being made and jobs are plentiful.
A slowdown (recession) in the economy results in layoffs, pay cuts/freezes.
How to bulid wealth
In order to build good wealth you will need.
Good info
Good planning
Need to make good choices
You will also need to learn how to.
Earn money
Budget and save
Save and invest
Control debt
Compound intreast
Is the intreast earned on intreast
Leadership
Role of management
Planing
Forecasting the future
Begins with reaserch
Trends and changes in the business environmet
Organizing
Structure of the organization
Employees positions and responsabilities
Systems and procedures
Controling
Ensuring company goals and objectoves are met.
Profit is the ultimate measure of preformance
If the company meets it's goals (profit)
Management's role is to duplicate it.
If company fails to meet goals
Management's role is to determine why
Positive leaders
Positive leaders use rewards to motivate employees
Independance
Development oppratunities
Acknowledgment
Raises bounses
Lieu time off
Negative leaders
Negative leaders use peilties with there employees
These leaders act domineering and superior with people
Negative penalties Include
Days off without pay
Reprimanding infront of others
Assining unplesent job tasks
Leadership goals
Leadership style is the manner and approch of...
Providing direction
Implementing plans
Motivating People
Most leader us all three styles
One style typically becomes the domanaite one
Managers versus leaders
Managers are people who do things right, while leaders are the ones who do the right thing.
Three different styles of leadership
Autocratic
Tells others what to do
Not open to new ideas
"It's my way or the highway"!
Democratic
All members are involved
Asks before tells
Leader has final say
Supports teamwork
Lassiez-faire
Gives little or no direction nor, motivation to teamwork or members
Advice is offered only if asked
No one seems to be in charge