AFM 132 questions with complete solutions

EQ (Emotional Quotient, also know as emotional intelligence) Focuses on the strength of certain soft skills, and involves developing greater self-awareness and self-control, and developing the ability to empathize and see a variety of perspectives. Intrapreneurship Entrepreneurial activity within a corporate setting, where one is able to help grow their company by being creative to evolve processes or launch new products/services using the company's existing resources and reputation. Sustainability Business practices that leave a positive impact on the environment to protect the world for future generations. Balance of trade The relationship between importing and exporting Favourable balance of trade (trade surplus) When exports are greater than imports. Unfavourable balance of trade (trade deficit) When imports are greater than exports. Business An activity that you intend to carry on for profit (e.g., providing goods and services). Comparative advantage Countries should sell (export) what they can produce most efficiently, and buy (import) when they cannot. Contract manufacturing Involves finding a foreign manufacturer to make your product and then have your own brand name or trademark attached. Also known as outsourcing. Corporation An incorporated business that's considered a separate legal entity apart from its owners. Shareholders of the corporation are not personally liable for debts or acts of the corporation. Crown corporation A company owned by the federal or provincial government (also referred to as publicly owned) Embargo A ban on the import or export of specific products. Exporting The sale of goods and services to another country. Foreign direct investment (FDI) Buying permanent property (or a business) and operating in a foreign country.