MGMT 100 Study Exam Solution Question Fully Solved.

Business - correct answer Any activity that seeks to provide goods and services to others while operating at a profit Profit - correct answer The amount a business earns above and beyond what it spends for salaries and other expenses. Entreprenuer - correct answer A person who risks time and money to start and manage a business Revenue - correct answer The total amount of money a business takes in during a given period by selling goods and services. Loss - correct answer When a business's expenses are more than its revenues. Risk - correct answer The chance an entrepreneur takes of losing time and money on a business that may not prove profitable Stakeholders - correct answer All the people who stand to gain or lose by the policies and activities of a business Offshoring - correct answer Sourcing part of the purchased inputs outside the country. Outsourcing - correct answer Assigning various functions, such as accounting, security and maintenance, to outside organizations. Non-profit Organization - correct answer An organization whose goals do not making a personal profit for its owners or organizers Factors of production - correct answer The resources used to create wealth; land, labour, capital goods, entrepreneurship, knowledge. Land, labour, capital goods, entrepreneurship, knowledge. - correct answer List the factors of production Business environment - correct answer The surrounding factors that could help or hinder the development of a business Regulations - correct answer Rules or orders made by government to carry out the purposes set out in statutes. Technology - correct answer Inventions or innovations from applied science or engineering research Productivity - correct answer The amount of output that is generated given the amount of input E-Commerce - correct answer The buy and selling of goods and services over the internet. E-business - correct answer Any information system or application that empowers business processes. Database - correct answer An electronic storage file in which information is kept; one use of ___ is to store vast amounts of information about customers Identity Theft - correct answer Obtaining personal information about a person and using that information for illegal purposes Empowerment - correct answer Giving front-line workers the responsibility, authority, and freedom to respond quickly to customer requests Demography - correct answer A statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income. Baby-boom echo - correct answer A demographic group of Canadians that were born in the period from ; the children of the baby boomers. Baby boomers - correct answer A demographic group of Canadians that were born in the period from Goods - correct answer Tangible products such as computers , food, clothing, cars, and appliances. Legal/Regulatory, technology, social, global, economic, competitive - correct answer 6 areas of business environment Services - correct answer Intangible products such as education, health care, insurance, travel and tourism. Economics - correct answer The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals. Macroeconomics - correct answer The part of economic study that looks at the operation of a nation's economy as a whole. Microeconomics - correct answer The part of economic study that looks at the behaviour of people and organizations in particular markets. Resource development - correct answer The study of how to increase resources and the creation of the conditions that will make better use of those resources Invisible Hand - correct answer A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all. Capitalism - correct answer An economic system in which all or most of the factor of production and distribution are privately owned and operated for profit Supply - correct answer The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time Demand - correct answer The quantity of products that people are willing to buy at different prices at a specific time Market Price - correct answer The truce determined by supply and demand Perfect Competition - correct answer The market situation in which there are many sellers in a market and no seller us large enough to dictate the price of a product. (i.e. apples) Monopolistic Competition - correct answer the market situation in which a large number of sellers produce products that are very similar but that are perceived by buyers as different. (candy and t-shirts) Oligopoly - correct answer A form of competition in which just a few sellers dominate the market. (automobiles, tobacco) Monopoly - correct answer A market in which there is only one seller for a product or service (i.e., water, electricity) Socialism - correct answer An economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be evenly distributed among the people. Communism - correct answer An economic and political system in which the state (the gov't) makes all economic decisions and owns almost all the major factors of production Free-market economy - correct answer An economy in which the market largely determines what foods and services are produced, who gets them, and how the economy grows. Command Economy - correct answer An economy in which the government largely decides what goods and services are produced, who gets them, and how the economy will grow. Mixed Economies - correct answer economic systems in which some allocation of resources is made by the market and some by the government Gross Domestic Product (GDP) - correct answer The total value of goods and services produced in a country in a given year Standard of living - correct answer The amount of goods and services people can buy with the money they have Quality of life - correct answer The general well-being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time, and everything else that leads to satisfaction and joy. Productivity - correct answer The total output of goods and services in a given period of time divided by the total hours of labour required to provide them Unemployment rate - correct answer The percentage of the labour force that actively seeks work but is unable to find work at a given time. Inflation - correct answer A general rise in the prices of goods and services over time Disinflation - correct answer A situation in which price increases are slowing (the inflation rate is declining) Deflation - correct answer A situation in which prices are declining Stagflation - correct answer A situation in which the economy is slowing but prices are going up regardless. Consumer Price Index (CPI) - correct answer Monthly statistic that measures the pace of inflation or deflation. Business Cycles - correct answer The periodic rises and falls that occur in economics over time 1. Economic boom 2.Recession 3.Depression (optional) 4. Recovery - stability - correct answer 4 phases of long-term business cycles Recession - correct answer Two or more consecutive quarters of decline in the GDP Depression - correct answer A severe recession Exporting - correct answer Selling goods and services to another country Importing - correct answer Buying goods and services from another country Free Trade - correct answer The movement of goods and services among nations without political or economic obstruction Comparative advantage theory - correct answer Theory that states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently Absolute advantage theory - correct answer The advantage that exists when country has the ability to produce a particular good or service using fewer resources (therefore at a lower cost) than another country. Balance of trade - correct answer A nation's ratio of exports to imports Trade deficit - correct answer (unfavourable balance of trade) occurs when the value of a country's imports exceeds that of its exports Balance of payments - correct answer the difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment. Licensing - correct answer A global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty) Exporting, licensing, franchising, contract manufacturing, international joint ventures/strategic alliances, foreign direct investment. - correct answer 6 strategies for reaching global markets Contract manufacturing - correct answer A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; also called outsourcing. Joint Venture - correct answer A partnership in which two ore more companies (often from different countries) join to undertake a major project or to form a new company. Strategic Alliance - correct answer a long-term partnership between two or more companies established to help each company build competitive market advantages Foreign Direct Investment - correct answer The buying of permanent property and businesses in foreign nations. Foreign subsidiary - correct answer A company owned in a foreign country by the parent company. Multinational Corporation - correct answer An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management Culture - correct answer A set of values, beliefs, rules, and institutions held by a specific group of people. Ethnocentricity - correct answer An attitude that one's own culture is superior to all others. Exchange Rate - correct answer The value of one nation's currency relative to the currencies of other countries. Devaluation - correct answer Lowering the value of a nation's currency relative to other currencies. Countertrading - correct answer A complex form of bartering in which several countries may be involved, each trading goods for goods or services for services. Trade Protectionism - correct answer The use of government regulations to limit the import of goods and services Dumping - correct answer Selling products in a foreign country at lower prices than those charged in the producing country. Import Quota - correct answer A limit on the number of products in certain categories that a nation can import Embargo - correct answer A complete ban on the import or export of a certain product or the stopping of all trade with a particular country General Agreement on Tariffs and Trade (GATT) - correct answer A 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions World Trade Organization - correct answer The international organization that replaced the GATT, and was assigned the duty to mediate trade disputes among nations. International Monetary Fund (IMF) - correct answer An international bank that makes short-term loans to countries experiencing problems with their balance of trade. World Bank - correct answer An autonomous United Nations agency that borrows money from the more prosperous countries and lends it to less-developed countries to develop their infrastructure. Producer's cartels - correct answer Organizations of commodity-producing countries that are formed to stabilize or increase prices to optimize overall profits in the long run. Common Market (trading bloc) - correct answer A regional group of countries that have a common ext