MGMT 2150 QUIZ 1 STUDY GUIDE
Why study Business? - Answers - 1. For help in choosing a career
2. To be a successful employee
3. To improve your management skills
4. To start your own business
5. To become a better informed consumer and investor
Business - Answers - an organization that seeks profit by offering products to satisfy
societies needs
Goods - Answers - tangible products
Services - Answers - intangible products
How can a business become successful - Answers - 1. material
2. human
3. financial
4. information al
Marketing and Sales - Answers - market and sell the products that consumers want
Accounting and Finance - Answers - keep track of money
production and operations - Answers - create the goods or deliver the services that
customers want
human resources - Answers - recruit, train and develop employees
benefits to society from businesses - Answers - 1. offering valuable goods and services
2. providing employment 3. improving quality of life
ways companies offer variety - Answers - 1. increasing quality,
2. increasing choice
3. increasing convenience
4. increasing health and safety
5. increasing value for money
How do businesses improve the quality of life? - Answers - paying taxes, charities,
community development, contributing to economic growth
Health and Safety risks - Answers - working in production environment
, Environmental damage risks - Answers - production involves consumption of natural
resources - if businesses do not make them sustainable it can cause irreversible
damage to the land, air and water - causing harm to the public
social disruption risks - Answers - customer activity can cause crowded schools and
traction and may change culture of a community in unwanted ways
Five factors that determine the success or failure of a business - Answers - 1. economic
2. competitive
3. global
4. technology
5. social
Economic factor - Answers - size and health of the economy - there are economic
slowdowns and upturns
slowdowns - Answers - unemployment rate increase - consumer spending decreases
for discretionary items - government receives less tax revenue
upturns - Answers - unemployment rate decreases - consumer spending increases for
discretionary items - government receives more tax revenue
competitive factor - Answers - business owners must figure out what makes their
business successful - competition forces a company to focus on strategies such as cost
cutting, development of new products, and or increased marketing and branding efforts
global factors - Answers - similar to competitive - what makes canada unique? and how
can Canadian businesses not only compete with each other, but with the rest of the
world
technological factors - Answers - influences communication with customers and
businesses must keep up with the latest products
social factors - Answers - changes in the demographics of the population.
- age
- gender
- ethnicity
- family composition
Types of Economic Systems - Answers - 1. capitalism
2. socialism
3. communism
4. mixed
5. free-market
6. invisible hand
7. laissez-faire capitalism
Why study Business? - Answers - 1. For help in choosing a career
2. To be a successful employee
3. To improve your management skills
4. To start your own business
5. To become a better informed consumer and investor
Business - Answers - an organization that seeks profit by offering products to satisfy
societies needs
Goods - Answers - tangible products
Services - Answers - intangible products
How can a business become successful - Answers - 1. material
2. human
3. financial
4. information al
Marketing and Sales - Answers - market and sell the products that consumers want
Accounting and Finance - Answers - keep track of money
production and operations - Answers - create the goods or deliver the services that
customers want
human resources - Answers - recruit, train and develop employees
benefits to society from businesses - Answers - 1. offering valuable goods and services
2. providing employment 3. improving quality of life
ways companies offer variety - Answers - 1. increasing quality,
2. increasing choice
3. increasing convenience
4. increasing health and safety
5. increasing value for money
How do businesses improve the quality of life? - Answers - paying taxes, charities,
community development, contributing to economic growth
Health and Safety risks - Answers - working in production environment
, Environmental damage risks - Answers - production involves consumption of natural
resources - if businesses do not make them sustainable it can cause irreversible
damage to the land, air and water - causing harm to the public
social disruption risks - Answers - customer activity can cause crowded schools and
traction and may change culture of a community in unwanted ways
Five factors that determine the success or failure of a business - Answers - 1. economic
2. competitive
3. global
4. technology
5. social
Economic factor - Answers - size and health of the economy - there are economic
slowdowns and upturns
slowdowns - Answers - unemployment rate increase - consumer spending decreases
for discretionary items - government receives less tax revenue
upturns - Answers - unemployment rate decreases - consumer spending increases for
discretionary items - government receives more tax revenue
competitive factor - Answers - business owners must figure out what makes their
business successful - competition forces a company to focus on strategies such as cost
cutting, development of new products, and or increased marketing and branding efforts
global factors - Answers - similar to competitive - what makes canada unique? and how
can Canadian businesses not only compete with each other, but with the rest of the
world
technological factors - Answers - influences communication with customers and
businesses must keep up with the latest products
social factors - Answers - changes in the demographics of the population.
- age
- gender
- ethnicity
- family composition
Types of Economic Systems - Answers - 1. capitalism
2. socialism
3. communism
4. mixed
5. free-market
6. invisible hand
7. laissez-faire capitalism
