Chapter 1 - The Changing Face of Business

Question 1

Business

Answer 1

All profit-seeking activities and enterprises that provide goods and services necessary to an economic system.

Question 2

Profits

Answer 2

Rewards for businesspeople who take the risks involved in blending people, technology, and information to create and market want satisfying goods and services.

Question 3

Not-for-profit

Answer 3

Organizations that have primary objectives of public service over profits.

Question 4

Factors of production

Answer 4

The basic inputs for a successful operation. The 4 factors of production are natural resources, capital, human resources and entrepreneurship.

Question 5

FoP 1: Natural resources

Answer 5

Inputs that are useful in their natural states. This includes land, forests, and minerals.

Question 6

FoP 2: Capital

Answer 6

Technology, tools, information, facilities, machines and equipment.

Question 7

FoP 3: Human resources

Answer 7

Production inputs including anyone who works, including both the physical labour and intellectual inputs contributed by workers.

Question 8

FoP 4: Entrepreneurship

Answer 8

The willingness to take risks to create and operate a business

Question 9

Capitalism (Private Enterprise System)

Answer 9

Capitalism is an economic system that minimizes government interference in economic activity and rewards businesses for their ability to perceive and serve the needs of customers.

Question 10

Competitive differentiation

Answer 10

The unique combination of organizational abilities, products, and approaches sets a company apart from competitors in the minds of consumers.

Question 11

Basic rights in the private enterprise system

Answer 11

1) Right to private property
2) Business owners’ right to after-tax profit
3) Freedom of choice in employment, purchases, and investments
4) Right to fair competition

Question 12

The entrepreneurship alternative

Answer 12

Entrepreneurs are risk-takers who recognize marketplace opportunities and use their skills and capital to seize and profit from those opportunities.

Question 13

Changes in the workforce

Answer 13

• Aging population
• Shrinking labour pool
• Diversity in the workplace
• Changing nature of work
• Need for flexibility and mobility
• Collaboration to innovate

Question 14

Diversity

Answer 14

Blending individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities.

Question 15

Outsourcing

Answer 15

Using outside vendors to produce goods or fulfill services and functions that were previously handled in-house

Question 16

Offshoring

Answer 16

The relocation of businesses to lower-cost locations overseas.

Question 17

Nearshoring

Answer 17

Outsourcing production or services to nations near a firm’s home base.

Question 18

Vision

Answer 18

The ability to perceive marketplace needs and what an organization must do to satisfy those needs.

To thrive in the 21st century, vision is crucial.

Question 19

Critical thinking

Answer 19

The ability to analyze and assess information to find problems or opportunities.

Question 20

Creativity

Answer 20

The capacity to develop novel solutions to organizational challenges.

In business, creativity refers to the ability to see better and different ways of doing business.

Question 21

Ability to lead change

Answer 21

Managers must be aware of both internal and external causes for change, and they must be effective when it comes to helping the organization and its people adapt and move towards common goals.

Question 22

What makes a company admired?

Answer 22

• Solid profits
• Stable growth
• Safe and challenging work environment
• High-quality products
• Strong ethics and social responsibility

Question 23

Business ethics

Answer 23

The standard of conduct and moral values that are involved in distinguishing right from wrong actions in the work environment.

Question 24

Social responsibility

Answer 24

Management philosophy that includes:

• contributing resources to the community
• preserving the natural environment
• developing or participating in nonprofit programs designed to promote the well being of the general