KNES 304 Final Exam Study Guide
businesses - Answer Organizations created to provide a service or product and
charging a higher price than the cost of production. The difference between the cost
and the price is the profit.
constitutional monarchy - Answer Part of the British Commonwealth with allegiance to
the queen of England. In Canada the crown is the foundation of the executive and
judicial branches of government.
constitutional republic - Answer Form of government in which the executive branch is
elected and the judicial branch is appointed by the chief executive, as in the United
States.
governmental unit - Answer Generic term that describes a government group at any
level: national, state, county, or city. It can be used to refer to one large unit such as the
state or subdivisions within the unit such as departments.
gross domestic national product - Answer The sum of total goods and services
manufactured or provided by all businesses, nonprofits, and government entities in a
country.
-leisure services are the largest segment of the gross national product in the USA
marketing approach - Answer Approach in which businesses focus on the customer
because the transaction between the business and the customer provides the business
its lifeblood.
transparency - Answer Being clear and open with information.
leisure services are provided by 3 sectors of the economy: - Answer 1. Nonprofit sector
2. Public sector
3. Private sector
private sector (commercial sector) - Answer -first sector to provide leisure services
-largest sector/fastest growing sector
-has delivery systems called businesses, which are organizations created to provide a
service or product. they charge a higher price than the cost of producing that product
or service, and the difference between the cost and the price is the profit
-customers become more important than the employees. money is the purpose.
-focus on customers who are willing and able to pay for services.
-businesses will act in the best interest of the business, focusing on the customer and
, helping it make a profit, which is acting on their own best interest.
challenges of managing private sector - Answer -marketing approach
-rules: must comply to government regulations
-economic turndown
-private (wages & salaries are kept secret to other employees)
-self-supporting
-profit margins
-competition is a constant threat
skills required for managing private sector - Answer -economics
-business accounting
-finance
-marketing
-organizational leadership
Nonprofit Sector - Answer -organizations chartered or permitted to provide services by
the national gov. in Canada and the state & federal gov. in the U.S.
-chartered by the individual states, but some are nationally chartered (Boy Scouts)
-exempt from paying federal taxes (tax exemption). in order to receive exempt status, a
social club must be organized for pleasure, recreation, and other similar purposes
-cannot discriminate people
-charitable organizations
-strive for excess revenue over expenditures so that they can reinvest in their
organization
-face survival issues
-non profits that don't do charitable work charge fees for their leisure services. need to
keep members happy so they continue to pay the fees.
-compete against businesses and gov. units for clients
-some nonprofits exist because people want their leisure services needs met in different
ways
-20% of nonprofit sectors deliver leisure services
businesses - Answer Organizations created to provide a service or product and
charging a higher price than the cost of production. The difference between the cost
and the price is the profit.
constitutional monarchy - Answer Part of the British Commonwealth with allegiance to
the queen of England. In Canada the crown is the foundation of the executive and
judicial branches of government.
constitutional republic - Answer Form of government in which the executive branch is
elected and the judicial branch is appointed by the chief executive, as in the United
States.
governmental unit - Answer Generic term that describes a government group at any
level: national, state, county, or city. It can be used to refer to one large unit such as the
state or subdivisions within the unit such as departments.
gross domestic national product - Answer The sum of total goods and services
manufactured or provided by all businesses, nonprofits, and government entities in a
country.
-leisure services are the largest segment of the gross national product in the USA
marketing approach - Answer Approach in which businesses focus on the customer
because the transaction between the business and the customer provides the business
its lifeblood.
transparency - Answer Being clear and open with information.
leisure services are provided by 3 sectors of the economy: - Answer 1. Nonprofit sector
2. Public sector
3. Private sector
private sector (commercial sector) - Answer -first sector to provide leisure services
-largest sector/fastest growing sector
-has delivery systems called businesses, which are organizations created to provide a
service or product. they charge a higher price than the cost of producing that product
or service, and the difference between the cost and the price is the profit
-customers become more important than the employees. money is the purpose.
-focus on customers who are willing and able to pay for services.
-businesses will act in the best interest of the business, focusing on the customer and
, helping it make a profit, which is acting on their own best interest.
challenges of managing private sector - Answer -marketing approach
-rules: must comply to government regulations
-economic turndown
-private (wages & salaries are kept secret to other employees)
-self-supporting
-profit margins
-competition is a constant threat
skills required for managing private sector - Answer -economics
-business accounting
-finance
-marketing
-organizational leadership
Nonprofit Sector - Answer -organizations chartered or permitted to provide services by
the national gov. in Canada and the state & federal gov. in the U.S.
-chartered by the individual states, but some are nationally chartered (Boy Scouts)
-exempt from paying federal taxes (tax exemption). in order to receive exempt status, a
social club must be organized for pleasure, recreation, and other similar purposes
-cannot discriminate people
-charitable organizations
-strive for excess revenue over expenditures so that they can reinvest in their
organization
-face survival issues
-non profits that don't do charitable work charge fees for their leisure services. need to
keep members happy so they continue to pay the fees.
-compete against businesses and gov. units for clients
-some nonprofits exist because people want their leisure services needs met in different
ways
-20% of nonprofit sectors deliver leisure services
