chapter 1

Question 1

goods VS services

Answer 1

Goods = tangible products such as computers, food, clothing, cars, and appliances

Services = tangible products such as computers, food, clothing, cars, and appliances

Question 2

whats An entrepreneur

Answer 2

A person who risks time and money to start and manage a business.

Question 3

what is Revenue? period.

Answer 3

the total amount of money received during a given period for goods sold and services rendered and from other financial sources.

Question 4

what is Profit

Answer 4

the amount of money a business earns above and beyond what it spends on salaries and other expenses.

Question 5

loss

Answer 5

occurs when a business’s expenses are more than its revenues
*Most business failures are due to poor management or problems associated with cash flow.

Question 6

what is Risk (COL)

Answer 6

refers to the chance of loss, the degree of probability of loss, and the amount of possible loss.

Question 7

what is The standard of living

Answer 7

refers to the amount of goods and services people can buy with the money they have.

Question 8

what is Quality Of Life (PF,NE,E,H,C,S)

Answer 8

General well-being of a society based on political freedom, natural environment, education, health care, and safety.

Question 9

who is Onex

Answer 9

The largest private employer in Canada is Onex, an investment manager with its headquarters in Toronto. In 2019, they were listed in the Fortune Global 500 as having employed at least 217,000 people.

• A country’s businesses are part of an economic system that contributes to the standard of living and quality of life for everyone in the country.

Question 10

Stakeholders

Answer 10

are all of the people who stand to gain or lose from the policies and activities of a business

A stakeholder is a person, group or organization with a vested interest, or stake, in the decision-making and activities of a business, organization or project.

Stakeholders can be members of the organization they have a stake in, or they can have no official affiliation.

Question 11

Primary stakeholders

Answer 11

those who without their participation the business would not exist. E.x rogers to maple leaves.

Media stakeholders: Two telecommunications conglomerates, Bell and Rogers, paid CAD$1.32 billion to acquire a 75 percent share of Maple Leaf Sports & Entertainment.

Question 12

Secondary stakeholders:

Answer 12

Those whose influence is not essential to the survival of a business. E.x stockholders.

Question 13

Offshoring

Answer 13

sourcing part of the purchased inputs outside of the country
Ex.car parts are being made in other countries.
- Interest in offshoring arises because it may signify changes in international trading

Question 14

Outsourcing

Answer 14

means contracting with other companies to do some or all of the functions of a firm, such as production or accounting
E.x child labor.
- Interest in outsourcing arises because it may foretell changes in industrial structure.

Question 15

Insourcing

Answer 15

the initiative to return jobs to companies exist in various industries, such as the automotive sector, where Ford Motor Company advanced workers to higher pay scales and as a result, hired more entry-level employees.

Question 16

Business Principals in Non-Profit Organizations:

Answer 16

Seek economic gains because revenue is needed to operate, but such gains are used to meet their social or educational goals rather than for personal or shareholder profit.

Question 17

Social entrepreneurs:

Answer 17

people who use business principles to start and manage non-profit organizations and help address social issues.

Question 18

who is Muhammad Yunus

Answer 18

won the Nobel Prize for starting the Grameen Bank, a microlending organization that provides small loans to entrepreneurs too poor to qualify for traditional loans.

Question 19

Social Enterprises:

Answer 19

Ventures established by social entrepreneurs and which act as vehicles for addressing social and/or environmental needs

*Non-profit organizations in Canada contribute to 189 billion in GDP (gross domestic product.

Question 20

Entrepreneurship Vs Working For Someone Else.

Answer 20

Entrepreneurs: assume entrepreneurial risk, do not receive benefits such as vacation pay and time off.

Working for someone: else means you avoid facing the entrepreneurial risk and you can get benefits.

E.x Ron Joyce, an investor in Time Hortons, Wendys, and Burger King, he franchised Time Hortons.

Question 21

Creation Of wealth - Factors of production
(LL-CEK)

Answer 21

Land (or natural resources):
Land and other natural resources are used to make homes, cars, and other products.

Labour (workers):
People have always been an important resource in producing goods and services, but many people are now being replaced by technology.

Capital:
This includes machines, tools, buildings, or whatever else is used in the production of goods. It does not include money. Money is used to buy factors of production but is not always considered to be a factor by itself.

Entrepreneurship.
All the resources in the world have little value unless entrepreneurs are willing to take the risk of starting businesses to use those resources.

Knowledge:
Of what needs to be produced and responding to desired goods. This is the most important factor despite being dismayed in the conversation for many years.

Question 22

Demonstrate why understanding laws and regulations at all levels of government is critical to business success.

Answer 22

The goal of government law and regulation of business is to maintain the integrity and stability of business, thereby protecting the employees’s rights, environment and hold corporations accountable for the amount of power they have excercised in a business-driven society.

In reality, Businesses due to their profit making attitude do need some amount of control otherwise tend to get out of hand because of their new found freedom and their future actions affect the industry as a whole. Their attitude towards customer changes specially the ones who cannot pay more to purchase their products. Their arrogancy towards the less priviledged is a cause of concern because these businesses in absence of any control from state put their profit motives first before any social and environmental concerns. This attitude largely affects quality of the products too as the government is only supposed to act when a specific complain is received. Taking advantage of such situations, a low quality product may be passed off to customers at a low price, specially the under priviledged ones who are forced to buy because of their inability to pay a higher price.

Question 23

Describe how the Bank of Canada influences monetary policy.

Answer 23

During the outbreak of Covid-19 pandemic, Canadian central government adopt many monetary policy instruments to stimulate liquidity in the economy. * Change overnight interest rate. One day changes in bank’ s interest rate does not have affect on borrowing cost of consumers and businesses. But a sudden change in overnight interest rate can affect the borrowing cost of consumers a d businesses. In order to curb the crisis, on March 2020, bank lowered interest rate to 0.25%. but it has no much impact in spending in the economy. Nowadays, many countries followed a zero level of interest rate but it creates distortion among financial institutions. Open market operations. Another important monetary policy instruments used by the Canadian govt is the open market operations. Canadian govt buy different types securities like corporate bonds, banker’s acceptance, Canada mortgage bonds etc in order to inject liquidity into the economy. When govt buying security in exchange for money, then, money supply will increase. Fall in reserve requirements is the another instrument used by the Canadian govt. They adopt quantitative easing method. It necessitate the banks to buy at least $5 billion of Canadian bond. Buying of govt bonds helps in lowering borrowing cost for a long period. This will turn investment to increase. Hence, in aggregate demand and income in the economy.

Question 24

6 elements of the business environment (LETCGS)

Answer 24

It comprises of forces that provide opportunities, but at the same time also pose threats to company. Six components of macro environment are

Legal Environment
Economic environment
Technological environment:
Competitive environment
Social environment
Global environment:

Question 25

Legal Environment

Answer 25

Governments can do a lot to lessen the risk of starting and running a business through the laws (also known as Acts) that their elected officials pass.

• Tax, contract laws, elimination of corruption
• Governments can lessen risk by passing laws through officials.
• Should protect consumers and businesses

Question 26

Economic environment

Answer 26

The economic environment affects both businesses and consumers.
The economic environment looks at income, expenditures, and resources that affect the cost of running a business.

• Income and expenditures
• Currency shifts
• Economic systems

Currency movements are especially important for businesses that have businesses who primarily outsource or rely on exports,
EXAMPLE
Canada was negatively impacted by the flailing u.s economy in 2007 when the Canadian dollar surpassed the /u.s dollar and the province lost tens of thousands of manufacturing jobs as manufacturers shifted operations overseas. Flagship owners such as G.M closed factories and scaled down production.

Question 27

Technological environment: FEP

Answer 27

• Info on tech, databases, the internet.
  EXAMPLE:
  Amazon uses Drones for order deliveries which have also replaced satellites for quicker data gathering, mapping, and scanning.

Efficiency;
means producing the most amount of goods and services using the least amount of resources.

Productivity:
is the amount of output you receive from given input. E.x number of hours worked. High rates of productivity results in unemployment,.

Freelance employees:
work part-time, can work online and do not have to even be in same country, this is reducing money spent on recruiting and training.

Question 28

Competitive environment D+S

Answer 28

Companies must be supplying high quality and good value at competitive prices

• Proactive rather than reactive ethics
• Quality and service orientation
• Customer and stakeholder, and stakeholder orientation
• Organization structures
• consumer-driven

Delight: is a term from total quality management

Stakeholders: include customer, employees, investors, suppliers, dealers, and the community; the goal of business is to please stakeholders.

Question 29

Social environment: PS

Answer 29

• Diversity
• Family changes

Demography: is the statistical study of the human population with regard to its size, density, and other chara teristices such as age, race, gender, and income.

The canadian population is growing through major changes that are dramatically affecting hown people live, where they live, what they buy, and how they spend their time.

Population shifts : PS
are causing firms to more retired workers than ever, the canadian population has been aging for decades, the portion of population that is young continues to decrease because of decline of birth rate and longer life-spans of people.

Question 30

Global environment:

Answer 30

Globalization and world trade. changing porducts to suit a countrys trends

• Lenovo bought IBM Personal computer unit.
• Everything is now made in China
• Workers may be from other countries.

Question 31

Goods and service sectors in canada (what we are producing)

Answer 31

*Progress in service industries, innovation, agriculture and manufacturing industries

Efficiency of large farms has put many out of business due to increased competition of technologically advanced farms meaning Canadian agriculture workers have become more productive, this does cause elimination of many jobs though. We can also seen this in the manufacturing industry.

Canada is a service providing sector from steel, railroads, and machinery.

Question 32

Intellectual Capital

Answer 32

the valuation of employees knowledge, skills, and flexibility, used to create new products, new customers and profits.

Question 33

Humanistic management

Answer 33

consequence of thinking exclusively in terms of productivity

a philosophy of management that emphasizes the interests of the employee in the manager-employee partnership

Question 33

The capitalist economy: LE

Answer 33

an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society

relies heavily on ethics,
for example the faltering of the economy (2008-2009) was primarily caused from SUBPRIME mortgage scandal in the U.S from mortgage lenders who did not research investments causing unpaid debts costing people their homes and decreasing the value of a home and also made it difficult for buyers to get loans.

Question 34

The Growth of Electronic commerce (EC)(B2B) (B2C)

Answer 34

E-commerce: (EC)
is the buying and selling of goods and services online. There are two major types of e-commerce

Business to business (B2B):
consists of selling goods and services from one business to another

Business-consumer (B2C)
E-business: refers to any information system or application that empowers business processes (ex. Business software).

Question 35

The ecological environment (part of GE) CGS

Answer 35

1. Climate change: the movement of the temperature of the plant up or down overtime.
2. Greening: saving energy and producing products that cause less harm to the environment
3. Sustainability: social perspectives of sustainability focus upon the quality of human life over time while economic views on sustainability emphasize a steady state economy