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