A business is an organization that seeks to ______ by providing ______.
earn profit; goods and services
Profit is what remains after a business's ______ have been subtracted from its ______.
Profit is important to business owners because _______________.
it provides motivation for risking time and money
The way in which a nation allocates its resources among its citizens is determined by its _______________.
A(n) ______ is an individual who accepts the opportunities and risks involved in creating and operating businesses.
Both ______ and ______ are considered command economies.
In a _____ economy, B2B and B2C exchanges take place without much government involvement.
_______ are people hired by a company or industry to represent that company's interests with government officials.
Total government expenditures in 2013 were $235.3 billion. This exemplifies which role of the government in the Canadian economy?
Which of the following is designed to promote healthy competition among business firms in Canada?
the Competition Act
The Food and Drugs Act is an example of a piece of legislation that ______.
______ are taxes that cause poorer people to pay a higher percentage of income than richer people do.
regressive revenue taxes
Sales taxes are an example of ___________.
regressive revenue taxes
______ is a mechanism for exchange between buyers and sellers.
The ______ is the principle that buyers will purchase more of a product as its price drops.
law of demand
The equilibrium price is also called the ______.
Market equilibrium is determined by the _________.
intersection of the demand curve and the supply curve
The situation is which quantity supplied exceeds quantity demanded in a market is described as ________.
An economic system characterized by private property rights, freedom of choice, profits, and competition is best described as __________________.
One characteristic of ___________ is that the going price is set exclusively by supply and demand and is accepted by both seller and buyer.
A market or industry characterized by a small number of very large firms that avoid direct price competition is described as _______________.
Canadian agriculture provides a good example of an industry in which there exists ________.
Fast-food restaurants in Canada compete under which kind of competitive conditions?
In Canada, laws such as the Competition Act forbid ______________.
During the 10 years after it was made a Crown corporation, Canada Post raised rates by 41 percent. This behaviour suggests that Canada Post was acting as a(n) _________.
The ______ is everything outside an organization's boundaries that might affect it.
An organizational boundary _____________.
separates the organization from its environment
The _____ environment includes economic conditions, technology, political-legal considerations, social issues, the global environment, issues of ethical and social responsibility, the business environment itself, and emerging challenges and opportunities.
A(n) ______ is the pattern of short-term ups and downs in an economy.
When the economy experiences two or more consecutive quarters of decline in GDP we call this a _______________.
The ______ is the total quantity and quality of goods and services that a country's citizens can purchase with the currency used in its economic system.
standard of living
__________ refers to the total quantity of goods and services produced by an economic system during a given period.
The ______ is the total of a country's exports minus its imports.
balance of trade
A country's ______ is the amount of money the government owes its creditors.
Inflation in Canada is measured by the _______________.
consumer price index
_____________ involves finding ways to use technological innovations to create new products or services that can be sold in the marketplace.
______ is the process of getting a new technology out of the lab and into the marketplace.
Although many people associate technology with ______. it is also a significant factor in the ______ sector.
Laws and regulations imposed on business by the government are part of the ____________ environment of business.
Although Canada is a ________ economy, there is still significant government regulation of business activities.
What is particularly important for multinational firms?
When McDonald's responds to concerns about nutrition and health by adding salads to its menu, they are pursuing opportunities in the ____________ environment.
The __________ environment includes the customs, values, attitudes, and demographic characteristics of the society in which a company operates.
Consumer tastes and preferences are part of the _______________.
When someone purchases a train ticket instead of an airplane ticket to take a trip between two cities, this reflects ______ according to Porter's five forces model.
the threat of substitute products
Intense price competition or elaborate advertising campaigns are examples of concerns addressed in which part of Porter's five forces model?
the rivalry between existing competitors
_________ is the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services.
A strategy of using the internet and word-of-mouth marketing to spread product information is called ________________.
__________ means moving away from organizing around departments and moving toward organizing around process-oriented team structures that cut across old departmental boundaries.
business process management
When two companies combine to form a single larger business, this is called a ____________.
__________ is when a company purchases and absorbs another company.
A _____________ involves two or more enterprises temporarily cooperating in the research, development, manufacture, or marketing of a product.
______ are beliefs about what is right and wrong, or good and bad.
______ vary from person to person, from situation to situation, and from culture to culture.
Ethical and unethical behaviours are determined _________.
partly by the individual and partly by the culture
__________ is a term often used to refer to ethical or unethical behaviours by a manager or an employee of a business.
Corporate social responsibility refers to the way in which a business tries to balance its commitments to __________.
_______ social responsibility refers to the way in which a business tries to balance its commitments to all organizational stakeholders.
A movement designed to help workers in developing countries receive fair payment for their work is called ___________.
______ is the view that a company's only social responsibility is to make as much money as possible for its shareholders, as long as it doesn't break any laws.
When companies get together to "fix" prices for their own advantage, it is called ___________.
A measure developed to help companies understand, manage, and communicate the social value of their activities for stakeholders is __________.
social return on investment (SROI)
A ______ is an employee who discovers and tries to put an end to a company's unethical, illegal, or socially irresponsible actions by publicizing them.
______ is the use of confidential information to gain from the purchase or sale of stock.
A company with a(n) __________ stance to social responsibility meets all its legal and ethical requirements, and in some cases even goes beyond what is required.
A company with a __________ stance to social responsibility actively seeks opportunities to be socially responsible.
A company with a __________ stance to social responsibility will do everything required of it legally, but nothing more.
A company with an __________ stance to social responsibility will do as little as possible to solve social or environmental problems.
In general, ethical and social responsibility issues impacting small business and larger companies differ mostly in ___________.
Small business owners face many specific _______ that have an immediate (and perhaps profound) effect on their business.
Mean Manufacturing has been cited for not filing the proper paperwork and for polluting beyond the acceptable regulatory limits. Jim, the plant manager of Mean Manufacturing, is looking for ways to alter the paperwork so it will look like less pollution is emitted and the company will not receive any further fines. Jim has taken which stance toward social responsibility?
A ______ is an owner-managed business that does not dominate its market, while a ______ is a recently formed commercial organization that provides goods and/or services for sale.
small business; new venture
________ are people who recognize and seize opportunities and accept the risks associated with creating and operating a new business venture.
______ is the process of identifying an opportunity in the marketplace and accessing the resources needed to capitalize on that opportunity.
People who exhibit entrepreneurial characteristics and create something new within an existing firm are called _____________.
It may surprise you to learn that 97.9 percent of all businesses in Canada are considered _________.
A local dress shop with three employees is considered a ____________.
Small businesses are defined as those with less than ____ employees.
Most new venture ideas come from ______.
events relating to work or everyday life
A(n) ______ is an estimate of how much of a product or a service will be purchased by the prospective customers for a specific period of time.
A(n) ______ is an arrangement that gives the buyer the right to sell the product of the seller (owner).
______ is a financing technique whereby entrepreneurs make do with as few resources as possible and use other people's resources wherever they can.
One benefit to buying an existing business is that _____.
the odds of success are better
Experts recommend buying an existing business because _________________.
it has established relationships with suppliers, it has a proven ability to attract customers, the odds of success are better, and potential buyers have a much clearer picture of what to expect
Sameer is considering buying a franchise. One disadvantage he should be aware of is _________.
there is little room to develop your own ideas
_________ does not explain why small businesses succeed.
lack of control
_________ does not explain why small businesses fail.
access to resources
Four basic factors explain most small business success: hard work, __________, managerial competence, and ___________.
market demand; luck
Four factors contribute to small business failure: __________, neglect, weak control systems, and ___________.
inexperience; insufficient capital
A major disadvantage of sole proprietorship is ______.
General partners have ________, while limited partners have ________.
unlimited liability; limited liability
As partners, Kabir is a(n) ________ because he is actively involved in the day-to-day operation of the business, while Julia is a(n) _________ because she is just an investor.
general partner; limited partner
A ______ is a business whose shares of stock are held by only a few shareholders and are not widely available for purchase.
A ______ is a business whose shares of stock are widely held and available for sale to the general public.
______ is the process by which the world economy is becoming a single interdependent system.
Products that have been made or grown in another country but which are sold and used in Canada are called _________________________.
Products that have been made or grown in in Canada but are shipped and sold abroad are called ___________________.
The three key geographic regions with most of the world's largest economies, biggest corporations, influential financial markets, and highest-income consumers are ___________, ____________, and _____________.
North America; Europe; Pacific Asia
The BRICS group of nations are becoming increasingly important in international business because _____________.
of economic growth and potential for consumer demand
The term BRIC denotes a group of four nations that are increasingly important in global trade:
Brazil, Russia, India, China
Which of the BRIC nations has become one of the world's leading suppliers of sources of energy to other nations?
______ competitiveness is the ability of a country to generate more wealth than its competitors in world markets.
The ability to produce some products more efficiently than others is called ________________.
Canada has a comparative advantage in ___________.
The ability to produce something more efficiently than any other country is called _____________.
Saudi oil, Brazilian coffee beans, and Canadian timber are close examples of a country having an _______________.
If a country has a trade surplus, it means that it has ______.
favourable balance of trade
When the value of a country's imports exceeds the value of its exports, it is said to have ___________.
a trade deficit
The ______ rate is the rate at which the currency of one nation can be exchanged for that of another.
When a country can produce something that is cheaper or of higher quality than any other country it has an ____________ advantage.
An ______ is a foreign individual or organization that agrees to represent an exporter's interests in foreign markets.
When a company gives an individual in a foreign country the exclusive right to manufacture or market their products in that area in return for a royalty payment it is called _____________.
a licensing arrangement
BFL Canada, of Montreal, is Canada's largest privately owned and operated commercial insurance broker. To increase its sales, the company formed a ______ with an American insurance broker, Lockton Companies LLC of Kansas City, Missouri, whereby each company could provide greater coverage for its clients and yet remain an independent company.
A ______ involves buying or establishing tangible assets in another country.
foreign direct investment
The first question to ask when deciding whether to "go international" should be __________.
"Is there international demand for the product?"
A ______ is a restriction by one nation on the total number of products of a certain type that can be imported from another nation, while a) ______ is a government order forbidding exportation and/or importation of a particular productor even all products of a particular country.
______ require that products sold in a particular country be at least partly made in that country.
local content laws
Challenges to doing business internationally because of language barriers, different beliefs about what is considered ethical, or unfamiliar local traditions are examples of ___________.
social and cultural differences
What was designed to eliminate trade barriers by encouraging nations to protect domestic industries within agreed-upon limits and to engage in multilateral negotiations?
The General Agreement on Tariffs and Trade (GATT)
The organization through which member nations negotiate trading agreements and resolve disputes about trade policies and practices is called ________________.
the World Trade Organization (WTO)
The largest free marketplace in the world, which produces nearly one-quarter of the total global wealth, is ________________.
the European Union (EU)
______ is the process of planning, organizing, leading, and controlling an enterprise's financial, physical, human, and information resources to achieve the organization's goals.
______ is achieving the greatest level of output with a given amount of input, while ______ is achieving the organizational goals that have been set.
______ is the process of determining the firm's goals and developing a strategy for achieving them.
______ is the process of monitoring a firm's performance and making adjustments to make sure it is meeting its goals.
______ involves mobilizing the resources required to complete a particular task.
______ are those managers responsible for a firm's overall performance and effectiveness and for developing long-range plans for the company.
______ managers are responsible for the production systems that create goods and services.
______ managers hire employees, train them, evaluate their performance, decide how they should be compensated, and deal with labour unions.
______ managers are responsible for designing and implementing various systems to gather, process, and disseminate information.
______ involves the interactions between managers and their subordinates as they both work to meet the firm's objectives.
Top managers depend most on _____ skills, while ______ skills are important at all levels of management.
conceptual; human relations
The leading causes of wasted time at work include _____________.
paperwork, the telephone, email, and meetings
_______ help managers define problems or opportunities and select the best course of action.
In 2007, QTL Inc., a biomedical company based in Vancouver, was trying to maximize shareholder value. It was considering a number of options, including selling parts of the company. The stage that best describes the stage of decision making of the company is ______.
The ability to think in the abstract, diagnose and analyze various situations, and see beyond the present situation require managers to develop ___________.
_________ refer to the actions that people take as they try to get what they want.
When a manager makes a decision and remains committed to its implementation in spite of clear evidence that it was a bad decision, ____________ has occurred.
escalation of commitment
______ is/are shorter-range plan(s) concerned with implementing specific aspects of the company's ______.
tactical plans; strategic plans
______ are plans setting short-term targets for daily, weekly, or monthly performance.
A ______ is a statement of how a company will achieve its purpose.
___________ is used to identify and analyze organizational strengths and weaknesses and environmental opportunities and threats as part of strategy formulation.
______ is a long-term goal derived directly from the firm's mission statement.