Business and Goods & Services Overview

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Questions and Answers

What is one of the main reasons behind the formation of BRICS?

To establish a currency union among members

To enhance economic cooperation and development (correct)

To promote military collaboration among member countries

To address cultural exchange issues

Which of the following is a significant disadvantage of the BRICS formation?

Economic disparities among member states (correct)

Shared technological advancements

Increased trade among members

Increased cultural exchange

Which industry has become the fastest growing sector in Canada according to the content?

Agriculture

Service Industries (correct)

Manufacturing

Mining

What does climate change primarily refer to?

Movement of temperature over time Signup and view all the answers

Which of the following elements is NOT included in the modern agricultural industry?

Wood and coal product manufacturing Signup and view all the answers

Which factor of production does not include monetary assets?

Capital Signup and view all the answers

What aspect of the economic environment involves the government's ownership of businesses?

Communism Signup and view all the answers

Which environment's factors include consumer spending and productivity?

Economic Environment Signup and view all the answers

Which type of e-commerce involves transactions between a business and government agencies?

B2G Signup and view all the answers

What is the term for the amount of output generated relative to the input used?

Productivity Signup and view all the answers

Which of the following best describes the legal environment's impact on business?

It sets regulations that govern business operations. Signup and view all the answers

Which of the following is an innovation that belongs to the technological environment?

New software for inventory management Signup and view all the answers

What might hinder entrepreneurship in a bureaucratic environment like Venezuela?

Complex permit requirements Signup and view all the answers

Which of the following best defines goods?

Products that can be touched and seen Signup and view all the answers

What is the primary role of a business?

To provide goods and services while operating at a profit Signup and view all the answers

What does outsourcing refer to?

Contracting other companies to perform certain business functions Signup and view all the answers

Which of the following describes the term 'insourcing'?

Performing functions in-house that could be outsourced Signup and view all the answers

What distinguishes offshoring from outsourcing?

Offshoring involves relocating business functions internationally Signup and view all the answers

Which of the following is a benefit of working for others?

Assumption of all entrepreneurial risks by the employer Signup and view all the answers

What does 'standard of living' refer to?

The amount of goods and services that can be purchased with available money Signup and view all the answers

Which of the following best defines 'stakeholders' in a business context?

Persons or groups who could gain or lose from the business operations Signup and view all the answers

What does G2C stand for in the context of online business interactions?

Government to Customer Signup and view all the answers

Which of the following descriptions best fits E-commerce?

The websites that facilitate transactions for online purchasing Signup and view all the answers

What demographic trend is characterized by an increasing number of older adults in Canada?

The Aging Population Signup and view all the answers

What is a key characteristic of B2B2C business relationships?

It requires two companies partnering to offer services to consumers. Signup and view all the answers

What is one potential risk associated with the rise of E-commerce?

Higher levels of personal security threats Signup and view all the answers

What does the term 'empowerment' refer to in a competitive business environment?

Allowing employees to have decision-making power Signup and view all the answers

Which of the following factors is NOT mentioned as contributing to the increase in the aging population?

Higher birth rates Signup and view all the answers

How does global business expansion affect job creation?

It creates new jobs in both manufacturing and service industries. Signup and view all the answers

Study Notes

Goods & Services

Goods are tangible products, things you can touch and see.
Services are intangible products, like car insurance or the feeling of a good vacation.

Business

A business is any activity that seeks to provide goods and services while operating at a profit.
An entrepreneur is a person who risks time and money to start and manage a business.
Revenue is the amount of money received for goods or services during a period of time.
Profit is the amount of money a business earns after subtracting salaries and other expenses.
Risk is the chance an entrepreneur takes of losing time and money on a business that may not be profitable.
Standard of living refers to the amount of goods and services people can buy with the money they have.
Quality of life refers to the general well-being of a society.

Stakeholders

Stakeholders are those who stand to lose or gain.
Example of stakeholders for Tim Hortons: customers, employees, franchise owners, suppliers, investors, community members, government, and competitors.

Offshoring & Outsourcing

Offshoring refers to sourcing part of purchased inputs outside of the country or contracting with other companies to do some or all of a firm's functions, such as production or accounting, outside of the country.
Outsourcing means contracting with other companies to do some or all of a firm's functions, such as production or accounting, regardless of location.
Insourcing is the situation where a company has functions that could be outsourced but chooses to keep them in-house.
Nearshoring is the process of outsourcing work to a company or individual located near your own.

Non-Profit Organizations

A non-profit organization's goals do not include making a personal profit for its owners or organizers.

Entrepreneurship vs. Working for Others

Working for others provides the benefit of having someone else assume the entrepreneurial risk and provide benefits.
Canada's wealthiest citizens often achieved their wealth by being entrepreneurs.

Five Factors of Production

Land (natural resources)
Labour (workers)
Capital (physical assets not money)
Entrepreneurship
Knowledge

Business Environment

Legal environment
Economic environment
Technological environment
Competitive environment
Social environment

Legal Environment

Regulations are laws and rules made by politicians that affect how businesses can operate.
Governments can help lessen the risks associated with starting and running a business through laws.

Economic Environment

The Economic environment considers income, expenditures, and resources that affect the cost of running a business.
Businesses review major economic indicators, such as consumer spending, employment levels, and productivity.
Movements in a country's currency relative to other currencies (foreign exchange) also affect the economic environment.
Entrepreneurship is another aspect of the economic environment.

Technological Environment

Technology refers to inventions or innovations from applied science or engineering research.
Productivity is the amount of output generated given the amount of input.

E-Commerce

B2C (Business-to-Consumer) is the regular business that companies do online with individual customers.
B2B (Business-to-Business) is business doing business with other businesses, like suppliers of materials to a manufacturer.
B2G (Business-to-Government) is the business that companies do with government agencies and departments to supply goods and services.
G2C (Government-to-Citizen) refers to the business that government does online with people, such as renewing licenses or applying for permits.
B2B2C describes business relationships in which two companies partner to offer services to consumers.
E-business refers to a wide range of business activities on the web, from simple posting of product photos to B2B marketplaces.
E-commerce refers to the websites that allow transactions so that customers can buy products online.

Social Media Marketing is the use of social media platforms such as Facebook, Twitter, Instagram, TikTok, LinkedIn, Pinterest, and YouTube, to interact with customers.
Social Media Marketing benefits are engaging with customers and increasing traffic to websites.

Competitive Environment

The degree to which a business needs to consider the competitive environment depends on the amount of competition it faces.
Empowerment is a competitive advantage.

Demography is the statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income.
Example: The Aging Population - More people are living longer due to better technology/medical knowledge, better health habits, nutrition, exercise, and reduction in the number of smokers.
Example: Increased Diversity - Canada has a strong multicultural population.
Migration - Is migration a blessing or a problem or both?

Global Business Environment

As businesses expand to serve global markets, new jobs are created in both manufacturing and service industries.
Global trade also means global competition.
Rapid changes create a need for continuous learning.

BRICS

BRICS stands for Brazil, Russia, India, China, and South Africa.
The BRICS countries are a group of emerging economies with large and rapidly growing populations that account for a significant share of the world's GDP.
Advantages: huge market potential, access to resources, political influence.
Disadvantages: economic volatility, infrastructure challenges, political instability.

Ecological Environment

Climate change is the movement of the temperature of the planet up or down over time.
The issue now is global warming.

Evolution of Business

Agricultural - The modern farming industry has become so efficient that the number of farms has dropped.
Goods - Includes the manufacturing, construction, utilities, agriculture, forestry, fishing, mining, quarrying, and the oil and gas industries.
Manufacturing - Includes food, beverage, clothing, chemical, machinery, wood, and petroleum and coal products manufacturing.
Service Industries - Services are intangible products (i.e., products that cannot be held in your hand), such as education, healthcare, insurance, recreation, and travel and tourism.

Chapter 1 Summary

Business profit/risk assumption
Stakeholder roles
Role of entrepreneurship in wealth creation
Elements of business environment
Rise of the service sector

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Description

This quiz covers key concepts related to goods and services, businesses, and stakeholders. Understand the differences between tangible products and intangible services, as well as the roles of entrepreneurs and the financial aspects of running a business. Explore the various stakeholders involved and their impact on a business's success.