Expenses
Ans Costs involved in running the company, and are resources used with no residual
economic value to recognize
General expenses
Ans Costs such as rent, utilities and supplies used
Gross margin
Ans Calculated by taking revenues less COGS, shows how much is earned by making/selling
...
Ans Emotional Quotient/Emotional Intelligence: strengthening soft skills
Intrapreneurship
Ans entrepreneurial skills within a corporate setting, using existing resources to
evolve/create new products/services
Sustainability
Ans business practices that leave a positive impact on the environment
Balance of trade
Ans the relationship between importing and exporting
Trade surplus
Ans when exports exceed imports
,Trade deficit
Ans when imports exceed exports
Business
Ans an activity that you intend to carry on for profit
Comparative advantage
Ans countries should sell what they can produce most efficiently and buy what they cannot
Contract manufacturing
Ans outsourcing; finding a foreign manufacturer to make your product and have your brand
name/trademark attached
Corporation
Ans an incorporated business that is considered a separate legal entity from its owners
Benefits of a corporation
Ans 1. limited liability
,2. indefinite business continuity
3. greater access to financing
4. possible tax financing
Drawbacks of a corporation
Ans 1. greater start-up costs
2. greater regulatory requirements
3. complex financial records
Crown corporation
Ans a type of business owned by the government, a publicly owned business
Embargo
Ans a ban on the import or export of specific products
FDI: Foreign Direct Investment
Ans buying permanent property and operating in a foreign country
Foreign subsidiary
, Ans a company that is owned by a parent company located in another country
Franchising
Ans franchisor sells the rights to use a business name and to sell a product to another party
Free market economy
Ans where the market determines what goods and services to produce and who gets them
Free trade
Ans where goods and services can be traded between countries without any political or
economic obstruction
Import quota
Ans a limit on the quantity of imports
Joint venture
Ans two or more companies that form a partnership to take on a major project
Licensing
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