MGT100 – UofT questions with
complete solutions
Business - correct answer ✔✔All profit-seeking activities and enterprises that provide goods
and service necessary to an economic system
Profits - correct answer ✔✔rewards for business people who take the risk involved in offering
goods and services to customers
Not-For-Profit Organizations - correct answer ✔✔Organizations whose primary aim are public
service, not returning a profit to their owners
Factors of Production - correct answer ✔✔5 basic inputs for effective economic operation:
natural resources, capital, human resources, and entrepreneurship
Natural resources - correct answer ✔✔All production inputs that are useful in their natural
states
Capital - correct answer ✔✔Production inputs consisting of technology, tools, information,
physical facilities
Human Resources - correct answer ✔✔Production inputs consisting of anyone who works
(including both intellectual and physical inputs)
Entrepreneurship - correct answer ✔✔willingness to take risks to create and operate a business
,Private enterprise system AKA Capitalism - correct answer ✔✔economic system that rewards
firms for their ability to identify and serve the needs and demands of customers
Adam Smith - correct answer ✔✔Father of Capitalism; First described the concept of capitalism
in The Wealth of Nations (1776); Believed Economy is best regulated by the "invisible hand"
Invisible Hand - correct answer ✔✔Battle among businesses for consumer acceptance;
competition among firms -> consumers receiving the best possible products/prices because less
efficient producers would be eliminated eventually
Competition - correct answer ✔✔The battle among businesses for consumer acceptance
Competitive differentiation - correct answer ✔✔unique combination of organization abilities,
products, and approaches that sets one company apart from competitors in the minds of
customers
Private Property - correct answer ✔✔Basic freedom under Capitalism; the right to
own/use/buy/sell/hand down land, buildings. machinery, equipment, patents, individual
possessions, and various intangible kinds of property
Entrepreneur - correct answer ✔✔Person who seeks a profitable opportunity and takes the
necessary risks to set up and operate a business; Leads to innovation; Important to large firms
(they can buy small companies with innovative ideas)
Colonial Period (1750s-1800s) - correct answer ✔✔Rural & Agriculturual Period; Colonists
depended Europe for manufactured items and financial help for new industries. British inevstors
provide money for development in N.A.; Fur/fish/old stock large timber for Ship/House building
Industrial Revolution (1750s) - correct answer ✔✔Began in England (1750); Large-scale
production + machinery using; specialization of labor; railroads opened up the West
, Age of Industrial Entrepreneurs (1870s) - correct answer ✔✔Alexander Graham Bell started
short-distance telephone service between office buildings and warehouses (Bell Canada Inc.); Eli
Whitney introduced interchangeable parts (leads to mass production);Market transformation
created new demand for manufactured goods
Production Era (1920s) - correct answer ✔✔Specialization of work + labor-intensive factories
became common; Businesses focused on internal > external; Marketing was rare & little
attention paid to what consumer wanted/needed
Marketing Era (1930s) - correct answer ✔✔Great Depression era; People's income dropped and
no longer can sell everything they produced. After WWII, demand increased; businesses also
starts thinking about what consumers wanted/needed
Consumer orientation - correct answer ✔✔business philosophy that focuses first on consumers'
unmet wants/needs, then designs products to meet those needs
Branding - correct answer ✔✔process of creating in consumers' minds an identity for a good,
service, or company; major marketing tool in contemporary business
Relationship Era - correct answer ✔✔Firms are starting to find ways to promote long-term
customer loyalty; doing so reduces advertising and sales costs; through carefully managing
every interaction
Transaction management - correct answer ✔✔building and promoting products in the hope
that enough customers will buy them to cover costs and earn profits
Social Era - correct answer ✔✔business era in which firms seek ways to connect and interact
with customers using technology
complete solutions
Business - correct answer ✔✔All profit-seeking activities and enterprises that provide goods
and service necessary to an economic system
Profits - correct answer ✔✔rewards for business people who take the risk involved in offering
goods and services to customers
Not-For-Profit Organizations - correct answer ✔✔Organizations whose primary aim are public
service, not returning a profit to their owners
Factors of Production - correct answer ✔✔5 basic inputs for effective economic operation:
natural resources, capital, human resources, and entrepreneurship
Natural resources - correct answer ✔✔All production inputs that are useful in their natural
states
Capital - correct answer ✔✔Production inputs consisting of technology, tools, information,
physical facilities
Human Resources - correct answer ✔✔Production inputs consisting of anyone who works
(including both intellectual and physical inputs)
Entrepreneurship - correct answer ✔✔willingness to take risks to create and operate a business
,Private enterprise system AKA Capitalism - correct answer ✔✔economic system that rewards
firms for their ability to identify and serve the needs and demands of customers
Adam Smith - correct answer ✔✔Father of Capitalism; First described the concept of capitalism
in The Wealth of Nations (1776); Believed Economy is best regulated by the "invisible hand"
Invisible Hand - correct answer ✔✔Battle among businesses for consumer acceptance;
competition among firms -> consumers receiving the best possible products/prices because less
efficient producers would be eliminated eventually
Competition - correct answer ✔✔The battle among businesses for consumer acceptance
Competitive differentiation - correct answer ✔✔unique combination of organization abilities,
products, and approaches that sets one company apart from competitors in the minds of
customers
Private Property - correct answer ✔✔Basic freedom under Capitalism; the right to
own/use/buy/sell/hand down land, buildings. machinery, equipment, patents, individual
possessions, and various intangible kinds of property
Entrepreneur - correct answer ✔✔Person who seeks a profitable opportunity and takes the
necessary risks to set up and operate a business; Leads to innovation; Important to large firms
(they can buy small companies with innovative ideas)
Colonial Period (1750s-1800s) - correct answer ✔✔Rural & Agriculturual Period; Colonists
depended Europe for manufactured items and financial help for new industries. British inevstors
provide money for development in N.A.; Fur/fish/old stock large timber for Ship/House building
Industrial Revolution (1750s) - correct answer ✔✔Began in England (1750); Large-scale
production + machinery using; specialization of labor; railroads opened up the West
, Age of Industrial Entrepreneurs (1870s) - correct answer ✔✔Alexander Graham Bell started
short-distance telephone service between office buildings and warehouses (Bell Canada Inc.); Eli
Whitney introduced interchangeable parts (leads to mass production);Market transformation
created new demand for manufactured goods
Production Era (1920s) - correct answer ✔✔Specialization of work + labor-intensive factories
became common; Businesses focused on internal > external; Marketing was rare & little
attention paid to what consumer wanted/needed
Marketing Era (1930s) - correct answer ✔✔Great Depression era; People's income dropped and
no longer can sell everything they produced. After WWII, demand increased; businesses also
starts thinking about what consumers wanted/needed
Consumer orientation - correct answer ✔✔business philosophy that focuses first on consumers'
unmet wants/needs, then designs products to meet those needs
Branding - correct answer ✔✔process of creating in consumers' minds an identity for a good,
service, or company; major marketing tool in contemporary business
Relationship Era - correct answer ✔✔Firms are starting to find ways to promote long-term
customer loyalty; doing so reduces advertising and sales costs; through carefully managing
every interaction
Transaction management - correct answer ✔✔building and promoting products in the hope
that enough customers will buy them to cover costs and earn profits
Social Era - correct answer ✔✔business era in which firms seek ways to connect and interact
with customers using technology
