MGMT 2150 QUIZ 1 STUDY GUIDE
What benefits does a business bring to society? - Answers - offering valuable goods
and services, providing employment and improving quality of life
What negative impacts can a business have on society? - Answers - health and safety
risks in the work environment, environmental damage, social disruption through traffic
damaging small businesses etc.
What are the 5 factors of the business environment? - Answers - economic, competitive,
global, social, technology
Economic factors - Answers - economic slowdowns or upturns will impact revenue,
hiring, etc.
Competitive factors - Answers - high levels of competition force companies to focus on
new strategies, products, marketing and infrastructure
Global factors - Answers - competition comes from other countries such as China
whose economy and manufacturing look very different than our own
technology factors - Answers - change manufacturing, distribution and marketing
strategies
Social factors - Answers - demographics of consumers and employees will influence
business operation protocols, what a business does and makes, employment
opportunities, etc.
economy - Answers - the way in which people deal with the creation and distribution of
wealth
capitalism - Answers - an economic system in which individuals own and operate the
majority of businesses that provide goods and services
free-market economy - Answers - an economic system in which businesses and
individuals decide what to produce and buy, and the market determines prices and
quantities sold
invisible hand - Answers - a term created by Adam Smith to describe how an individual's
personal gin benefits others and a country's economy
mixed economy - Answers - an economic system where most land and businesses are
privately owned but with various levels of government involvement
, What type of economy is the Canadian economy? - Answers - mixed economy
command economy - Answers - an economic system where the government decides
what goods and services will be produced, how they will be produced, for whom they
will be available and who owns and controls the major factors of production
What are two types of command economies? - Answers - socialism and communism
socialism - Answers - an economic system where the key industries are owned and
operated by the government
communism - Answers - an economic system where all property and profits are owned
by the government, which decides what goods and services will be produced
What are the two most common types of economy in the world today? - Answers -
socialist and mixed
Perfect (pure) competition - Answers - the market situation in which there are many
buyers and a product and no single buyer or seller is powerful enough to affect the price
of that product
equilibrium (market) price - Answers - the price at which quantity demanded is equal to
quantity supplied
monopolistic competition - Answers - a market situation in which there are many buyers
along with a relatively large number of sellers that differentiate their products from the
products of competitors
law of supply - Answers - as the price increases, the quantity supplied increases
law of demand - Answers - as the price decreases, the quantity demanded increases
true or false: in a situation of perfect competition, buyers and sellers must accept the
going price - Answers - true
What is a real world example of a market that shows monopolistic competition? -
Answers - clothing
product differentiation - Answers - the process of developing and promoting differences
between one's products and all competitive products
oligopoly - Answers - a market or industry in which there are few sellers
game theory - Answers - used to model the interaction between two or more businesses
to determine what will happen if one or more companies take specific actions with
regards to changing prices or introducing new products or services
What benefits does a business bring to society? - Answers - offering valuable goods
and services, providing employment and improving quality of life
What negative impacts can a business have on society? - Answers - health and safety
risks in the work environment, environmental damage, social disruption through traffic
damaging small businesses etc.
What are the 5 factors of the business environment? - Answers - economic, competitive,
global, social, technology
Economic factors - Answers - economic slowdowns or upturns will impact revenue,
hiring, etc.
Competitive factors - Answers - high levels of competition force companies to focus on
new strategies, products, marketing and infrastructure
Global factors - Answers - competition comes from other countries such as China
whose economy and manufacturing look very different than our own
technology factors - Answers - change manufacturing, distribution and marketing
strategies
Social factors - Answers - demographics of consumers and employees will influence
business operation protocols, what a business does and makes, employment
opportunities, etc.
economy - Answers - the way in which people deal with the creation and distribution of
wealth
capitalism - Answers - an economic system in which individuals own and operate the
majority of businesses that provide goods and services
free-market economy - Answers - an economic system in which businesses and
individuals decide what to produce and buy, and the market determines prices and
quantities sold
invisible hand - Answers - a term created by Adam Smith to describe how an individual's
personal gin benefits others and a country's economy
mixed economy - Answers - an economic system where most land and businesses are
privately owned but with various levels of government involvement
, What type of economy is the Canadian economy? - Answers - mixed economy
command economy - Answers - an economic system where the government decides
what goods and services will be produced, how they will be produced, for whom they
will be available and who owns and controls the major factors of production
What are two types of command economies? - Answers - socialism and communism
socialism - Answers - an economic system where the key industries are owned and
operated by the government
communism - Answers - an economic system where all property and profits are owned
by the government, which decides what goods and services will be produced
What are the two most common types of economy in the world today? - Answers -
socialist and mixed
Perfect (pure) competition - Answers - the market situation in which there are many
buyers and a product and no single buyer or seller is powerful enough to affect the price
of that product
equilibrium (market) price - Answers - the price at which quantity demanded is equal to
quantity supplied
monopolistic competition - Answers - a market situation in which there are many buyers
along with a relatively large number of sellers that differentiate their products from the
products of competitors
law of supply - Answers - as the price increases, the quantity supplied increases
law of demand - Answers - as the price decreases, the quantity demanded increases
true or false: in a situation of perfect competition, buyers and sellers must accept the
going price - Answers - true
What is a real world example of a market that shows monopolistic competition? -
Answers - clothing
product differentiation - Answers - the process of developing and promoting differences
between one's products and all competitive products
oligopoly - Answers - a market or industry in which there are few sellers
game theory - Answers - used to model the interaction between two or more businesses
to determine what will happen if one or more companies take specific actions with
regards to changing prices or introducing new products or services
