Studied by 78 PeopleA business is an organization that seeks to ______ by providing ______.
Tags & Description
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 ______.
expenses; revenue
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 _______________.
economic system
A(n) ______ is an individual who accepts the opportunities and risks involved in creating and operating businesses.
entrepreneur
Both ______ and ______ are considered command economies.
socialism; communism
In a _____ economy, B2B and B2C exchanges take place without much government involvement.
market
_______ are people hired by a company or industry to represent that company's interests with government officials.
lobbyists
Total government expenditures in 2013 were $235.3 billion. This exemplifies which role of the government in the Canadian economy?
customer
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 ______.
protects consumers
______ 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.
a market
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 price
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 ________.
surplus
An economic system characterized by private property rights, freedom of choice, profits, and competition is best described as __________________.
private enterprise
One characteristic of ___________ is that the going price is set exclusively by supply and demand and is accepted by both seller and buyer.
perfect competition
A market or industry characterized by a small number of very large firms that avoid direct price competition is described as _______________.
an oligopoly
Canadian agriculture provides a good example of an industry in which there exists ________.
perfect competition
Fast-food restaurants in Canada compete under which kind of competitive conditions?
monopolistic competition
In Canada, laws such as the Competition Act forbid ______________.
monopolies
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) _________.
monopoly
The ______ is everything outside an organization's boundaries that might affect it.
external environment
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.
external
A(n) ______ is the pattern of short-term ups and downs in an economy.
business cycle
When the economy experiences two or more consecutive quarters of decline in GDP we call this a _______________.
recession
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.
aggregate output
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.
national debt
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.
applied R&D
______ is the process of getting a new technology out of the lab and into the marketplace.
technology transfer
Although many people associate technology with ______. it is also a significant factor in the ______ sector.
manufacturing; service
Laws and regulations imposed on business by the government are part of the ____________ environment of business.
political-legal
Although Canada is a ________ economy, there is still significant government regulation of business activities.
free market
What is particularly important for multinational firms?
political stability
When McDonald's responds to concerns about nutrition and health by adding salads to its menu, they are pursuing opportunities in the ____________ environment.
socio-cultural
The __________ environment includes the customs, values, attitudes, and demographic characteristics of the society in which a company operates.
socio-cultural
Consumer tastes and preferences are part of the _______________.
socio-cultural environment
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.
outsourcing
A strategy of using the internet and word-of-mouth marketing to spread product information is called ________________.
viral marketing
__________ 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 ____________.
merger
__________ is when a company purchases and absorbs another company.
acquisition
A _____________ involves two or more enterprises temporarily cooperating in the research, development, manufacture, or marketing of a product.
strategic alliance
______ are beliefs about what is right and wrong, or good and bad.
ethics
______ vary from person to person, from situation to situation, and from culture to culture.
ethics
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.
business ethics
Corporate social responsibility refers to the way in which a business tries to balance its commitments to __________.
organizational stakeholders
_______ social responsibility refers to the way in which a business tries to balance its commitments to all organizational stakeholders.
corporate
A movement designed to help workers in developing countries receive fair payment for their work is called ___________.
fair trade
______ 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.
managerial capitalism
When companies get together to "fix" prices for their own advantage, it is called ___________.
collusion
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.
whistle-blower
______ is the use of confidential information to gain from the purchase or sale of stock.
insider trading
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.
accommodative
A company with a __________ stance to social responsibility actively seeks opportunities to be socially responsible.
proactive
A company with a __________ stance to social responsibility will do everything required of it legally, but nothing more.
defensive
A company with an __________ stance to social responsibility will do as little as possible to solve social or environmental problems.
obstructionist
In general, ethical and social responsibility issues impacting small business and larger companies differ mostly in ___________.
scale
Small business owners face many specific _______ that have an immediate (and perhaps profound) effect on their business.
ethical dilemmas
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?
obstructionist stance
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.
entrepreneurs
______ is the process of identifying an opportunity in the marketplace and accessing the resources needed to capitalize on that opportunity.
entrepreneurship
People who exhibit entrepreneurial characteristics and create something new within an existing firm are called _____________.
intrapreneurs
It may surprise you to learn that 97.9 percent of all businesses in Canada are considered _________.
small businesses
A local dress shop with three employees is considered a ____________.
small business
Small businesses are defined as those with less than ____ employees.
100
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.
sales forecast
A(n) ______ is an arrangement that gives the buyer the right to sell the product of the seller (owner).
franchise
______ is a financing technique whereby entrepreneurs make do with as few resources as possible and use other people's resources wherever they can.
bootstrapping
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