Intro to Business Management
role of small business
98% of all business in Canada are small business main source of job creation leaders in innovation and technology
The most important difference between command economies and market economies is______ A) access to human rights B) who controls the factors of production C) the government in power D) freedom of the press
who controls the factors of production
Which of the following represents one of the fundamental customer rights listed in the text? A) Right to low prices B) Right to be heard C) Right to return all products D) Right to a money back guarantee
Right to be heard
The BRICS nations are major players in global trade and they are gaining more power and stature every year. Brazil, Russia, India and China have all grown in importance in recent years for different reasons. Which country was recently admitted to join this group of nations? A) Singapore B) South Africa C) South Korea D) Slovakia
South Africa
Effective goal setting is helped by comparing the outcomes to the SMART guideline. What does SMART stand for? A) Specific, Measurable, Achievable, Realistic, and Time-framed B) Simple, Mature, Achievable, Responsible and Time-Framed C) Simple, Maximized, Achievable, Reliable and Time-Framed D) Specific, Mature, Aggressive, Realistic and Time-Framed
Specific, Measurable, Achievable, Realistic, and Time-framed
The entrepreneurial process is like a journey which is influenced by social, economic, political, and technological factors. The three key elements in the process are: A) The product, the promotions and the place or location of the venture B) The entrepreneur, the size of the market and the scale of the business C) The market, the capital investment and the growth potential D) The entrepreneur, the opportunity, and the resources
The entrepreneur, the opportunity, and the resources
inside directors
members of the board who are employees of the company
outside directors
members of the board who are not employees on a day-to-day basis
Business Process Management
moving away from department-oriented organizations toward process-oriented teams
Businesses that take an _____________ to social responsibility do as little as possible to solve social or environmental problems. When they cross the ethical or legal line that separates acceptable from unacceptable practices, their typical response is to deny or cover up their actions. A) accommodative B) defensive C) proactive D) obstructionist
obstructionist
Inflation
occurs when there is widespread price increases in an economic system
Cooperatives
organization formed to benefit its owners reduced prices and distribution of surpluses
Small Business
owner-managed business with fewer than 100 employees
business cycle
pattern of short term ups and downs (expansions and contractions) in an economy.
Nascent Entrepreneurs
people who start a business from scratch
Strategic Goals
performance objectives that a firm plans to achieve
CEO
person responsible for the firms overall performance
Entrepreneur
person who recognizes and seizes opportunities
comparative
a country can produce certain items more efficiently (cheaper) than it can other items.
Absolute Advantage
a country can produce something more efficiently than any other country.
technology
all the ways a company creates value for its customers knowledge, work methods, physical equipment, etc.
National Debt
amount of money that a government owes its creditors increases by the amount of the budget deficit
Organizing
determining how to use existing resources to implement the plan arranging jobs in a structure to create an efficient task system
Tactical planning is concerned with: A) finding the optimal solution for an emergency situation. B) developing specific short-run strategies about what needs to be done, who will do it, and how it will be accomplished. C) devising alternative courses of action to be used if the original plan does not work out. D) setting long-run goals that will dictate the strategic plan of the organization.
developing specific short-run strategies about what needs to be done, who will do it, and how it will be accomplished.
Areas of Social Responsibility
right to safe products right to be informed about all relevant aspects of the product right to be heard right to choose what they want to buy right to be educated about purchases right to courteous service
Divestitures and Spinoffs
selling part of existing business or setting it up as a new corporation
If U2 is playing to a sold-out concert this Friday night but tickets are still in high demand, concert-goers are likely to buy tickets from 'scalpers' at prices considerably higher than the original price. This situation can be described as a: A) shortage; in which quantity demanded exceeds quantity supplied. B) surplus; in which quantity demanded exceeds quantity supplied. C) shortage; in which quantity supplied exceeds quantity demanded. D) surplus; in which quantity supplied exceeds quantity demanded.
shortage; in which quantity demanded exceeds quantity supplied.
Simon would like to buy a Valentines gift for his girl friend as a sign of his affection. To his dismay he discovers that roses cost $75 a dozen. Luckily, he can buy chocolates for $20. According to Porter's Five Forces Model, chocolates are a less costly _________. A) option B) substitute C) replacement D) complement
substitute
organizational boundary.
that which separates the organization from its environment.
Friendly Takeover
the acquired company welcomes the acquisition, (needs cash or other benefits)
Hostile Takeover
the acquiring company buys enough of the other company's stock to take control a poison pill is a defense tactic that management can adopt to make a firm less attractive
When Henry Ford adopted the assembly line to mass produce the Model-T in 1913, he decided to pay his workers a relatively high wage because he believed that workers should be able to afford to buy what they make. This is consistent with the idea of _______________. A) communism B) input and output markets C) socialism D) privatization
input and output markets
If a CEO sells most of his shares in the company a few days before disastrous results are made public, he is likely guilty of ___________. A) collusion B) misrepresentation of finances C) insider trading D) profiteering
insider trading
shareholders
investors who buy shares of ownership in a company may share in profits through dividends
frictional unemployment
is the time period between jobs when a worker is searching for, or transitioning from one job to another.
Unemployment
level of joblessness among people actively seeking work in an economic system
The federal government manages the Canadian economic system through two sets of policies: fiscal and monetary. Fiscal Policy refers to: A) the control of the money supply B) the control of interest rates C) the government's approach to its spending and taxation D) the effective management and control of the national debt
the government's approach to its spending and taxation
Consumer price index
tool used to measure inflation
standard of living
total quantity and quality of goods and services that a countries citizens can purchase with the currency used in their economic system.
aggregate output
total quantity of goods and services produced by an economic system during a given period measure of economic growth
gross national product
total value of all foods and services produced by a national economy within a given period regardless of where the factors of production are located.
gross domestic product
total value of all goods and services produced with a given period by national economy through domestic factors of production.
If total exports from Canada in a given year amount to $360 billion and the total imports amount to $372 billion. Canada is said to be in a _________ position. A) trade deficit B) balance of payments C) trade surplus D) balance of trade
trade deficit
strategic alliances
two or more companies temporarily join forces often called a joint venture
partnership
two or more people agree to combine their financial, managerial, and technical abilities to run a business frequently used by professionals Two basic types general parters and limited
structural unemployment
unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
balance of trade
value of all exported products minus imported products
Economic Enviroment
conditions of the economic system in which an organization operates.
Strategic Management
process of aligning the organization with its external environment
new venture
recently formed organization, opened within the last 12 months, that sells goods or services
Deflation
a period of generally falling prices
productivity
standard of living improves through increases in productivity measure of economic growth that compares the output of an economic system with the resources that are needed to produce the output
Sole Proprietorships
Advantages freedom simplicity low start-up costs tax benefits Disadvantages unlimited liability lack of continuity difficult to raise money reliance on one individual
The political basis for the free market economy is called ____________ which allows private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive. A) Marxism B) Capitalism C) Consumerism D) Socialism
Capitalism
_________have voting rights and receive a vote for each share that they own. They are considered owners of the company although the extent of ownership depends on the number of shares they possess. A) Preferred Capitalists B) Bondholders C) Common stockholders D) Derivative titleholders
Common stockholders
______________ is a movement dedicated to protecting the rights of consumers in their dealings with businesses. A) Fair trade B) Consumerism C) Stealth justice D) Stakeholder revolt
Consumerism
The first section of a business plan is the: A) Company Description B) Market analysis C) Executive Summary D) Operating Plan
Executive Summary
Types of Corporations
Public Corporation shares are widely held and available for sale to the general public initial public offering (IPO): the sale of shares for the first time to the general investing public Private Corporation shares held by a few shareholders (not widely available)
____________ are people that create something new within the context of a large organization. A) Venture Capitalists B) Angels C) Intrapreneurs D) Nascent Investors
Intrapreneurs
The Theory of _____________ was identified by Michael Porter to help explain why some countries are so strong in certain industries. He describes the importance of factor conditions (i.e. land and labour), the level of demand in the home market, the strength of supporting industries in the nation, and the level of rivalry among firms in a market. A) Absolute Advantage B) National Competitive Advantage C) Competitive Advantage D) National Subsidy
National Competitive Advantage
The total amount of money that a country owes its creditors. A) National Deficit B) Purchasing Power Parity Index C) National Debt D) Gross Domestic Product
National Debt
The markets for laundry detergents, soft drinks and cars are all dominated by just a few producers. In terms of competition these markets are described by the term: A) perfect competition B) monopoly C) oligopoly D) pure competition
Oligopoly
An organization's core competencies refers to: A) The company's strategies to increase market share B) The company's product offerings which achieve the highest profit levels C) The training programs used to increase employee productivity D) The skills and resources with which they compete best and create the most value for owners.
The skills and resources with which they compete best and create the most value for owners.
The mandate of the _______________ is to encourage trade by helping members to resolve disagreements, promote free trade agreements, and encourage fair trade practices. A) North American Free Trade Agreement B) International Monetary Fund C) United Nations D) World Trade Organization
World Trade Organization
cyclical
as workers losing their jobs due to business cycle fluctuations in output, i.e. the normal up and down movements in the economy as it cycles through booms and recessions over time
A ___________ is an organization that is owned and controlled by the people who use it - producers, consumers and workers with similar needs who pool their resources for mutual benefit. A) private corporation B) joint venture C) co-operative D) public corporation
co-operative
All managers require human relations, conceptual, time management, and decision-making skills, but top managers depend most on ______________. A) human relations skills B) conceptual skills C) time management skills D) decision-making skills
conceptual skills
economic stability
condition when the amount of money available and the quantity of goods and services produced are growing at about the same rate
international firm
conducts much of its business abroad basically, a domestic firm with international operations
When Jasmine analyzes monthly sales figures for her flower shop, and uses this information to determine the optimal variety of flowers to order for next month, she is involved in the _________ function of the management process. A) leading B) planning C) controlling D) organizing
controlling
multinational firm
controls assets, factories, mines, sales offices, and affiliates in two or more foreign countries planning and decision making are geared to international markets
Intrapreneurs
create something new within an existing large organization
external enviroment
everything outside an organizations boundaries that might affect it.
Environmental protection laws, interest rates, societal values, and the emergence of new technologies can significantly impact the profitability of a firm. These types of issues can not be controlled by a business as they are considered to exist in the ________. A) external environment B) internal environment C) organization's boundaries D) global context
external environment
An example of CSR in action is the ___________ movement, which was motivated by concerns that workers in developing countries who produce commodities like coffee were not receiving adequate payment for their products. A) fair trade B) consumerism C) ethical dilemma D) managerial environmentalism
fair trade
Among the options of international organizational structure, __________ is the most risky, but also yields the greatest profit potential. A) strategic alliances B) exporting/importing C) licensing arrangements D) foreign direct investment
foreign direct investment
nominal gdp
gap measured in current dollars or with all components valued at current prices.
Board of Directors
governing body; responsible for shareholder interests appoint management, set policy, make major decisions
real gdp
gross domestic product calculated for changes in currency value and price changes.
gdp per capita
gross domestic product per person
leading
guiding and motivating subordinates to meet objectives managers have various responsibilities with regard to their employees
When one company buys a competitor in the same industry it is known as ____________. A) horizontal integration B) diversification C) vertical integration D) lateral divestment
horizontal integration
Acquisitions and Mergers
horizontal, vertical or conglomerate mergers friendly or hostile takeovers
threats to economic stability
inflation deflation unemployment