AFM 132 Midterm Study Package PDF

 Unit 1: The Future of Work The Future of Work: Looking Ahead to 2030 Tasks and job responsibilities are shifting due to technological innovations leading to job loss concerns Consider the rate at which technology has been changing and adopted E.g. USB vs...

 Unit 1: The Future of Work The Future of Work: Looking Ahead to 2030 Tasks and job responsibilities are shifting due to technological innovations leading to job loss concerns Consider the rate at which technology has been changing and adopted E.g. USB vs Google Drive, cell phone vs telephone ○ Changes occurring due to evolving needs and desires ○ New technology is quickly adopted causing routine and repetitive tasks to be phased out ○ People still add value by developing the right technical and soft skills Impact of the Business Environment International Business ○ Competition for Customers Locally and globally with the prevalence of e-commerce platforms ○ Business Decisions Where to source raw materials, talent, and locate facilities ○ Employment How and where you work is shaped by technology that enables us to interact with global colleagues ○ Developing a Global Mindset The University of Waterloo equips students with the skills to understand diverse markets, adapt to unique business practices, and meet a company's target market needs through: Taking international studies courses Experience from co-op, summer, or volunteer International exchanges Ethics and CSR ○ Ethical Behaviour Companies that extend their values and expectations (e.g. fair wages, quality working conditions) with those they’re associated with (e.g. suppliers) ○ Sustainability Companies that leave a positive impact on the environment to protect the world for future generations ○ Corporate Philanthropy and Community Impact Companies contribute to their communities through philanthropic initiatives. ○ Stance on social or political issues  Can influence potential employees or customers Your Toolkit to Become Futureproof Hone irreplicable technical and soft skills Still expected to learn and understand routine tasks The use of professional judgement and trust is still required Digital Literacy ○ Digital tools and data manipulation skills through coding and spreadsheets. ○ Analyzing data leads to insights that can help a company improve their operations to better serve the needs of its customers ○ To enhance digital literacy, focus on digital tools and data analytics courses Entrepreneurial Abilities ○ Entrepreneurial Mindset To problem solve, take risks, be creative, and manage uncertainty ○ Intrapreneurship Being entrepreneurial within a corporate setting Help the company grow by using its existing resources and reputation to evolve processes and launch new products Social Intelligence ○ The awareness of the skills and knowledge needed to effectively collaborate with others and understand yourself ○ Emotional Quotient (or Emotional Intelligence) Strength of soft skills, development of greater self-awareness, self-control, and the ability to empathize and see a variety of perspectives  Unit 1: Practice Questions Short Answer Questions 1. How does the rapid adoption of new technologies create opportunities and challenges for both products and services in the near future, as well as for individuals in their careers? 2. Technical and soft skills help you become more resilient, adaptable, and future-proof and can give you the ability to understand the changes transforming business, anticipate future developments, and capitalize on new opportunities Explain in detail why it is important for a business to be future-proof and what steps it can take to ensure that they are prepared for the rapidly changing world. Multiple Choice Questions 1. Which of the following does an international business need to consider? a. Who is the competition (locally and globally) b. Where to source raw materials c. How employees can interact d. All of the above 2. Soon, the workforce will not need any employees with technical and soft skills. a. True b. False 3. Sustainability considers: a. Maximizing short-term profits b. Reducing operational costs c. Leaving a positive impact on the environment d. Expanding market share  Unit 2: Overview of Business Understanding Business as a Financial Leader Chief Financial Officer (CFO) ○ Responsible for: Financial reporting, control, compliance, PLUS operations, human resources, information technology (e.g. digitization, cybersecurity) ○ More emphasis on how well you understand business (help better decision-making to adapt to changing business environment): Understanding the changes and interpreting trends Anticipate future developments Capitalize on new opportunities Expected to help focus on activities that align with the company’s strategy to drive value, innovation and growth and promote change ○ Having digital literacy, an entrepreneurial mindset, and social intelligence can help improve communication and problem-solving Introduction to Business Business: An activity that you intend to carry on for profit History of Business in Canada ○ Challenges: Large land, low & spread out population, and lack of infrastructure from coast to coast. ○ Government decisions to regulate trade and commerce such as: High tariffs to make Canadian goods affordable and encourage trading in Canada Built railway to improve connectivity across the country Mixed Economy ○ Some allocation of resources by the market and some by various levels of government Crown Corporation ○ Company-owned/operated by the federal or provincial government (e.g. CBC) Privatization ○ Reducing the role of government by the sale of a crown corporation (ex. Air Canada) ○ Reduces government debt, brings in large amounts of money, and increases competition Competition leads to innovation, improving efficiencies and reducing costs for consumers Small Businesses in Canada ○ Independently owned/operated, not dominant in its field, and typically 1 - 99 employees ○ Important to the Canadian economy 98% of employer businesses are small businesses  70% of the workforce works for small businesses Forms of Business Ownership Sole Proprietorship Partnership Corporation Definition Owned and operated Has a partnership agreement Separate legal entity by one person (which addresses the nature with an unlimited of the business, financial number of owners contributions of each partner, how profits are shared, how decisions will be made, how disputes will be resolved, what happens when a partner wants to leave, and how to end the partnership) Advantages - Easy to set up - Easy to form - Limited liability - Lower start-up - Shared start-up costs (and - Business continuity costs resources) (indefinite life) - Freedom/control for - Shared management because ownership owners - Less regulatory is transferable - Less regulatory requirements - Greater access to requirements - Income and expenses are financing - Income and reported on a personal tax - Possible tax expenses are return advantages reported on a personal tax return Disadvantages - Unlimited liability - Unlimited liability - Higher start-up - Business continuity - Conflict between partners costs (to (definite life) - Business continuity incorporate) - Raising funds (definite life) - Greater regulatory requirements (complexity in managing records) Learning from Failure: Why Small Businesses Fail Not all “exits” of business are failures, they could include retirement or changes in ownership Businesses easier to start tend to have the least growth potential and greater failure rates ○ Due to easy entry: greater competition, larger supply in the marketplace, and lower prices Businesses harder to start are more likely to be successful and generate profit ○ Due to hard entry: lower supply, allows them to charge higher prices  ○ Usually where expertise or significant investments are required (ex. Medical practices) Critical Elements of Business Management ○ Planning Researching and having a business plan or strategy ○ Understanding your Customers Considering their background, interests, and behaviours Can inform you how to design your product or service offering and marketing initiatives ○ Managing Your Employees Recruiting, onboarding, talent development, compensation, and performance appraisals ○ Maintaining Good Records Ensuring all business transactions are recorded Helps make informed decisions ○ Financing Your Business Obtaining cash to start and maintain the business, budgeting, and knowing how to obtain more funds Impact of Globalization on Stakeholders Consumers ○ Benefit when the world is more connected as there are more options available Employees ○ Global connections with customers, clients or partners ○ More options for global sourcing of resources and marketing Business Owners ○ Internet access, technology, and increased connectivity have expanded the reach of businesses ○ Small businesses should consider how to appeal to foreign markets  ○ Larger companies may outsource Participation in Global Market ○ Global market participation may involve international customers or suppliers, rather than setting up global locations. Why We Trade Challenging to be Self-Sufficient ○ Every country has different resources, environmental conditions, populations, knowledge, and expertise Importing vs Exporting ○ Importing: Purchase of goods and services from another country More options to satisfy our wants and needs ○ Exporting: Sale of goods and services to another country Countries produce beyond their ability to consume and sell the excess Balance of Trade ○ Relationship between importing and exporting ○ Favourable (trade surplus: exports > imports) vs. unfavourable (trade deficit: imports > exports) Free Trade ○ Trading without political or economic obstruction in a mutually beneficial manner ○ Challenges Each country wants to maximize revenues and protect workers Some countries have more resources than others leading to greater bargaining power ○ Comparative Advantage Countries export what they produce most effectively and import what they cannot Trade barriers prevent this to protect domestic businesses The theory of comparative advantage prevented by government from protecting domestic businesses and industries ○ Free Market Economy The market (supply/demand) determines what goods and services to produce and who gets them without government intervention What Supports Trade? Trade Agreements ○ CETA (Canadian-European Union Comprehensive Economic Trade Agreement): Removed 98% of tariffs, making the EU Canada’s second-largest trading partner after the US. What it means for Canada: For consumers: European items are cheaper in the Canadian marketplace For business: dairy producers are concerned, may not be able to compete with Europe’s significant dairy market ○ NAFTA (North American Free Trade Agreement): free trade between Canada, Mexico, and the US.  ○ Allow all 3 countries to reduce trade tariffs with each other while maintaining independent trade agreements with other countries Promoted fair competition, improved working conditions Resulted in employment losses ○ CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership): A free agreement between Canada and 10 other countries in the Asia Pacific. Allows Canada to become more independent. Trade war: restrict imports in an attempt to boost domestic businesses. Consider the impacts: ○ Competition ○ Price ○ Demand ○ Production ○ Innovation Barriers to Trade ○ Trade Protectionism: Limits imports of goods/services through government regulations ○ Tariffs: Taxes on imports to make domestic products appear more competitively priced (protective tariff) ○ Import Quota: Limit on the quantity of products that a country imports ○ Embargo: Ban on the import or export of specific products for political/cultural purposes ○ Non-Tariff Barriers: Regulations and restrictive standards that detail how products must be sold. Such as health & safety standards and labelling standards. Entering Global Markets: Canada’s Perspectives Pro: expand customer base, additional profit potential Con: costs and risks Canadian Exports ○ Sell directly to foreign customers vs sell through an intermediary (e.g. foreign distributors) ○ Small businesses react faster to changes in the marketplace to meet the needs of consumers, provide more tailored and customized attention ○ Multinational corporations manufacture their products in countries where they also have a physical presence. (E.g. Lululemon, Four Season, and Blackberry) Canadian Imports ○ Directly purchase from foreign suppliers or indirectly through an intermediary (e.g. foreign distributors) ○ Many companies import their materials to produce their goods  ○ Imports into Canada are monitored by the Canada Border Service Agency (CBSA) to keep Canadians safe. These goods must meet certain conditions imposed by the federal/provincial government Strategies to Enter Global Markets Licensing Exporting Franchising Contract Joint Strategic Foreign Manufacturing Venture Alliance Direct Investment -> LEAST amount of commitment, control, risk, and profit potential to MOST -> Licensing: ○ When a domestic company (licensor) allows a foreign company (licensee) to make its products for a fee (e.g. percentage of profits) ○ Benefits: Ability to generate additional revenue, costs to promote paid by licensee which exposes product in a new market ○ Problems: Don’t get the profits if there is remarkable growth, risk of losing trade secrets, and hard-to-control quality Exporting: ○ Selling products to another country ○ Coordination is required with shipping, taxes, etc, but huge market potential with a low cost ○ Hard to find global customers without a home base in other countries Franchising: ○ Someone (franchisor) sells the rights to use the business name and to sell a product/service (to a franchisee) ○ More control can dictate standards and can earn more revenue through franchising fees, start-up fees, and consulting ○ E.g. Tim Hortons, Booster Juice, and BeaverTails Contract Manufacturing (Outsourcing): ○ Foreign manufacturers who make your product and attach your brand/trademark ○ Can test new markets, but still need to develop/execute sale and promotional strategies ○ Provide cost savings, but also have to consider quality, public image, access to talent, and employment standards ○ A business that should never be outsourced Core human resource functions: control over the quality of new hires and training Core accounting functions: ensure proper financial management and decision-making Joint Venture: ○ Two or more companies form a partnership to take on a major project  ○ Benefits: Shared resources, expertise (can understand local market/customs, connections, and laws if with a foreign company), and market access where goods are locally produced ○ Drawbacks: Too large to efficiently function and exploitation of trade secrets Strategic Alliance: ○ Two or more companies form a long-term partnership to support each other in building market advantages ○ Does not involve sharing costs, risks, or profits - more of a relationship than a partnership Foreign Direct Investment: ○ Buying property and operating in a foreign country ○ Typically becomes a foreign subsidiary, a company located in another country owned by the parent company ○ Challenges: Has to follow legal and regulatory regulations of both the parent and foreign country, assets could be taken over by foreign government if political unrest (expropriation) ○ Canada’s FDIs are in the finance and insurance industry Why do local governments encourage foreign investment? Why would critics argue against foreign investment in Canada? ○ Encourage because: Bring jobs to the local community Bring additional revenue to the local community (e.g. use of local service, local taxes, etc.) Bring new knowledge and technology to the local community ○ Critics: FDIs in Canada generate profit that will go to their home country Jobs in these organizations are not always ones of innovation These businesses are profit-driven and don’t necessarily make decisions that would be the best for Canada or the local community Future Opportunities and Challenges Canada can look at tapping into emerging markets which have large populations and a growing middle-class ○ BRICS - Brazil, Russia, India, China, and South Africa You will often find products designed in one country, manufactured in another, and sourced in many others Business is all about building and cultivating relationships with others  Unit 2: Practice Questions Multiple Choice 1. Which of the following is an advantage of owning a corporation? a. Unlimited liability b. Indefinite life c. Greater regulatory requirements d. Freedom and control for owners 2. What are some key skills that will help accounting and finance professionals innovate and solve problems they may encounter? a. Digital literacy b. An entrepreneurial mindset c. Social Intelligence d. All of the above 3. Businesses that are harder to start are more likely to be successful and generate significant profit. This leads to competition, lowers supply, and charges lower prices. a. True b. False 4. Which of the following strategies to enter global markets requires the most amount of commitment, control, and risk? a. Foreign direct investment b. Franchising c. Contract manufacturing d. Licensing 5. An understanding of a general overview of business can help accounting and finance professionals, except a. Understand the changes transforming their industry b. Anticipate future developments c. Continuously adapt their skills and knowledge d. Capitalize on new opportunities 6. What is a mixed economy? a. A system entirely controlled by the government b. Some allocation of resources by the market and some by various levels of government c. Only exist in theory and are not practical in real-world economies d. None of the above 7. Which of the following is a characteristic of a small business? a. Has greater than 100 employees b. Dominant in its field c. Is independently owned and operated d. Is a crown corporation 8. Robin wants to start his own business. He wants the freedom and control of operating the business by himself and wants to keep the profits all to himself. He also does not have much capital and cannot commit a huge amount of money to start-up costs. The form of business ownership that would best suit Robin’s situation is: a. Sole Proprietorship b. General Partnership c. Limited partnership d. Corporation 9. Which of the following are the causes of small business failure? a. Inappropriately pricing (under/overpricing) goods or services b. Not understanding business cycles c. Not allowing for setbacks and accounting for unexpected expenses d. All of the above 10. How has globalization affected consumers? a. It has not affected consumers in any shape or form b. It has allowed for greater options in the market c. It allows them to better maintain good records to make informed decisions d. It has allowed them to better plan their purchases 11. Which of the following statements is not a reason why we trade? a. Due to comparative advantage, countries can produce beyond their ability to consume and sell excess to others b. Countries can earn more money and boost their economy by trading, even though they can produce everything their people want and need c. Countries cannot produce all of the products and services their people want and need d. Both A and C 12. What is the balance of trade? a. The relationship between imports and exports b. When goods and services can be traded between countries without any political or economic obstruction c. It does not exist  d. When there is fair competition 13. Which of the following is not a barrier to trade? a. Non-tariff barriers b. Embargos c. Injunction d. Import quotas 14. What has allowed businesses to reach beyond their city? a. Internet access b. Technology c. Increased connectivity d. All of the above 15. All of the following represent common causes for small business failure, EXCEPT: a. Setting up a Sole Proprietorship over a Corporation or Partnership b. Having too much capital and carelessly spending c. Not understanding prices and Pricing d. Unorganized record keeping  Unit 3: Scanning the Business Environment Background and Tools Environmental Scan: Assessing the Business Environment ○ What could impact the growth/success of an organization ○ Factors: political, economic, competitive, social, technological. Should analyze these domestically and globally. These factors can influence its relationship with its stakeholders Stakeholders: Individuals/entities that have an interest or stake in what organizations do ○ E.g. Customers, suppliers, banks, government, unions Tools for an Environmental Scan: PEST, Porter’s 5 Forces, and SWOT PEST: How Political, Economic, Social, and Technological factors could impact how an organization achieves their goals P: Looking at the Political Environment Factors of Production: Land, labour, capital, entrepreneurship, and knowledge Federal Government: Oversees Canada’s economic performance, plays a role in international trade regulations, the nation's banking/monetary system, national defence, and immigration Provincial Government: Oversees issues that impact citizens within a province, including regulations of trade and commerce, employment standards, healthcare, and education Municipal Government: Set up by provinces to oversee issues that impact cities, towns and districts including water, sewage, garbage collection, roads, sidewalks, and transportation Laws and Regulations ○ Created by the legislative branch of the government ○ How are consumers and businesses protected? Consumers: Canada’s Anti-Spam Legislation (CASL) is enforced to protect consumers from unsolicited online communications Businesses: The Competition Bureau enforces the Competition Act to promote fair competition and an innovative marketplace Deregulation: Removal of laws/regulations to allow for more competition and provide more choices for consumers Fiscal Policy: How the government keeps the economy stable through increases/decreases in taxes and government spending ○ All levels of government collect taxes and businesses can pass down this cost to consumers through higher prices ○ Corporation Taxes for a business may include: Property tax, tariffs on imported goods, sales tax, corporate income tax  Countries strive to have a low corporate tax rate as corporations can help the economy grow through investments in technology, people, or launching new products Taxes can increase government spending on things like job creation, infrastructure development, and new/improved services for Canadians ○ Consider the use of taxes to discourage behaviour (e.g. sin tax on cigarettes) or encourage (ex. tax credits to support growth/innovation through the use of co-op students) behaviour ○ National Debt: Accumulation of government deficits over time High debt can create economic instability Trade relationships ○ Are there trade agreements or barriers (e.g. tariffs or import quotas) that could impede trade? ○ Whether a company is protecting its domestic business or market to foreign competition can conduct a business E: Looking at the Economic Environment Microeconomics: Studies the decisions made by businesses and individuals within the economy looking at supply, demand, and allocation of scarce resources Macroeconomics: What impacts the economy as a whole ○ e.g. Employment levels, interest rates, inflation, and Gross Domestic Product (GDP) Health of the Economy ○ Economic Growth Considerations When there is economic growth, unemployment is low, there is increased spending power, and an increase in sales/profit for businesses ○ Unemployment Rate: Percentage of people who are unemployed out of the total labour force (actively looking for work) ○ Business Cycles: The rise and fall of economic activity over time Knowing where you are can help make informed business decisions Trough: Lowest point of economic activity Recovery: Economic activity begins to rise again with increased demand for goods and services Expansion: Rise in economic activity where products are sold, jobs are created, and demand continues to grow Peak: The economy reaches its highest point, triggering the end of the expansionary phase Contraction: Economic activity will start to decline, decrease in demand, recession can  result (2+ quarters of a decline in GDP), possibly depression (severe form of recession, high unemployment levels) Monetary Policy: Management of money supply and interest rates by the Bank of Canada (BoC) ○ Priorities of the Bank of Canada: Keep inflation low, stable, and predictable, manage the complex financial system, and preserve the value of our money (protect against counterfeit) ○ Inflation: Rise in price of goods/services over time Can reduce the purchasing power of money, so interest rates are kept around 2% ○ Consumer Price Index (CPI): Measures inflation by comparing changes in price for a basket of commonly purchased goods (e.g. food, housing, clothing, transportation, recreation) ○ Benchmark Interest Rate: The rate at which the BoC lends money to Canada’s major financial institutions base their lending rates on this rate to make loans to individuals/businesses When the rate is low, institutions are encouraged to borrow more This leads to more money available to borrow for individuals/businesses Gross Domestic Product (GDP): Total value of final goods/services produced within a country in a year ○ Measure of economic and social progress S - Looking at the Social Environment Demographic Trends ○ Age: Recognize that the baby boomer generation is a target market and maybe a growth opportunity as they have disposable income and time ○ Education: Higher education levels increase economic growth potential; an educated workforce can be more productive and innovative ○ Income: Domestically, countries should examine their middle class, but globally they should look at emerging economies ○ Diversity: A diverse workforce can better understand diverse consumer needs as they have a broader range of perspectives, talent, and skills Changing Social Attitudes ○ Attitudes/views on the environment and employment conditions impact the evolution of an organization, its practices, and workplace laws ○ Role of companies in society: In a unique position of wealth and influence; can “do good” by considering social responsibility and sustainability ○ Triple Bottom Line Reporting: Reports on performance with social, environmental, and economic factors (e.g. people, planet, profit) T - Looking at the Technological Environment The Way We Work ○ Prevalence of technology E.g. Software, to process/assess large volumes of data, manage repetitive tasks or perform analytics on consumer data ○ Future of Work: Replacement of low-skills and middle-class jobs with automation and AI Connecting with Customers ○ Online presence - Using the internet/social media to build connections with customers ○ Data is collected from customers and is used to customize interactions with customers ○ Need to prepare for the challenges of privacy and cybersecurity to protect systems, networks, and programs The Competitive Landscape: Porter’s Five Forces Porter’s 5 Forces - Assess the attractiveness of an industry, scan the competitive landscape, and inform how a new company makes decisions on how to operate, achieve organizational goals, and best compete/set up for success ○ Current Competitors (existing rivalry) How many competitors? Who are they? What do they offer? What resources do they have? If entering an industry with entrenched competitors and many resources, it will be harder to get started ○ Potential Competitors (threat of new entrants) Consider barriers to entry: existing dominance in the marketplace, capital requirements, laws and regulations, how legal protections can protect a company from a new entrant, and economies of scale ○ Substitutes Awareness of alternatives and choices available to customers Where switching costs (both monetary and psychological) are minimal, there are opportunities for new entrants to attract and draw away customers ○ Bargaining Power of Suppliers Supply and demand impact the price of what an organization may need to buy They need to consider how many options they have to source their inputs ○ Bargaining Power of Customers If a buyer has multiple options, they have greater bargaining power as they can shop around to get the best price or highest quality Some Considerations About Using Porter’s 5 Forces  ○ A company can reflect where they are in the industry and where they may face some challenges now and in the future ○ Useful for new or existing companies to develop their plans, goals, and objectives New companies: understand the competitive environment Existing companies: how they fare amongst the competition ○ Limitations Focuses too much on current power which may not be helpful in a fast-changing industry The dominance of a firm may not be fully captured (in resource or size) Does not deal with technological changes Building on Your Toolkit to Assess an Organization: SWOT Internal: ○ Examines what you control and manage within a company Considers tangible resources (e.g. human capital, financial, physical assets) Considers intangible resources (e.g. knowledge/skills, strength of leadership, relationships, reputation) ○ Strengths e.g. Being a dominant player in the market, having strong brand awareness, having a well-respected and proven management team, or cost advantages ○ Weaknesses e.g. Having a lack of awareness of the marketplace, dated facilities or equipment, a management team without talent/depth External: ○ Factors that you may not be able to control, but will have to respond to as an organization ○ Opportunities e.g. Changing consumer demand, changing government policies, or reducing trade barriers which allow entry into an international market ○ Threats e.g. Changing economic conditions, a competitor introducing a substitute product, regulatory requirements that are costly to comply with, or the entry of foreign competitors Consider the following: ○ Brand awareness, leadership team, government policies, trade barriers, physical assets, financial, and consumer preferences, economic conditions What You Should Focus on After a SWOT Analysis? ○ Capitalize on your strengths ○ Improve your areas of weakness  ○ Take advantage of opportunities ○ Mitigate any threats (how to change to the needs of customers) Unit 3: Practice Questions Multiple Choice 1. Which of the following is considered a stakeholder? a. Government b. Union c. Auditors d. All of the above 2. The federal government is responsible for all except _____. a. employment standards b. trade regulations c. national defense d. immigration 3. The Provincial government is responsible for ______. a. water sewage b. Immigration c. employment standards d. garbage collection 4. The Municipal government is responsible for all except ______. a. roads b. Sidewalks c. Transportation d. education 5. An example of legislation used to protect consumers is ______. a. Canada’s Anti-Spam Legislation (CASL) b. Canada’s Consumer Protection Program (CCPP) c. Canada’s Ad-Blocking Legislation (CABL) d. Consumer Unsubscribing Rights (CUR) 6. What does deregulation bring to industries? a. Uniform benefit b. Increase competition c. Instantaneous improvement  d. No government insights 7. The government keeps the economy stable by increasing/decreasing ____ and _____. a. profits; expenses b. tariffs; incomes c. taxes; spending d. imports; exports 8. Increase in government spending can stimulate the economy through: a. Job creation b. Infrastructure development c. New/improved services d. Employment increase 9. Microeconomics focuses on all except _____. a. Inflation b. supply c. Demand d. allocation of scarce resources 10. Macroeconomics can impact an economy through everything except: a. Gross Domestic Product (GDP) b. Unemployment rate c. Inflation d. Interest rates 11. A sign of economic growth is _____. a. high unemployment b. Decreased spending c. low unemployment d. constant sales 12. The order of the business cycle is ________. a. Trough, Recovery, Expansion, Peak and Contraction b. Peak and Contraction, Trough, Recovery and Expansion c. Contraction, Trough, Recovery, Expansion and Peak d. Consideration, Trough, Reevaluation, Expansion and Decline 13. What does the Bank of Canada control monetary policy to manage? a. Money supplies and interest rates b. Government spendings c. Inflation and prices  d. Income distribution 14. The Consumer Price Index (CPI) measures inflation by comparing prices of ______. a. machinery/capital goods b. luxury goods c. technology innovations d. commonly purchased goods 15. Which of the following are the demographic trends? a. Inclusivity, Location, Education and Age b. Age, Education, Income and Diversity c. Career, Location, Age and Interests d. Priorities, Inclusivity, Religion and Values 16. Triple Bottom Line reporting focuses on _____, _____ and _____ factors. a. environmental; social; governance b. social; environmental; economic c. economic, financial; production d. environmental, spiritual; mental 17. The increase in technological capabilities at affordable prices can _____. a. Steady employment rate b. Lower productivity c. Increase the operating cost d. Help companies to be innovative 18. True or False: The goal of Porter’s five forces is to help companies decide how to operate, reach goals, and set up for success. a. True b. False 19. Porter’s five forces are __________. a. current competitors, current debtors, current suppliers, current consumers, and current lenders b. current competition, potential competition, alternatives, bargaining power of producers, and bargaining power of consumers c. current competitors, potential competitors, substitutes, bargaining power of suppliers and bargaining power of customers d. land, labour, capital, knowledge and entrepreneurship 20. For potential competitors, all are barriers to entering an industry, except: a. Existing dominance in the marketplace  b. High cost per unit as the number of units decreases c. Laws and regulations d. Low cost per unit as the number of units increases 21. External S.W.O.T analysis analyzes _____ and _____. a. opportunities; threats b. competitors; suppliers c. strengths; weaknesses d. trade barriers; international markets 22. True or False: Relationships are an external intangible resource. a. True b. False 23. An example of an event that would provide an opportunity is ________. a. strong brand awareness b. obtaining physical assets c. Deregulation d. entry of foreign competitors 24. You should focus on all except ______ after a S.W.O.T analysis. a. capitalizing on your strengths b. improving your areas of weakness c. taking advantage of opportunities d. eliminating any threats Short Answer Practice Questions 1. Perform an S.W.O.T analysis of the following company and label each consideration Background: Company A is an online clothing retailer. *S=Strengths W=Weaknesses O=Opportunities T=Threats The clothing industry is highly competitive, with numerous established and emerging online retailers. Partnering with influencers or other brands can expand the retailer's reach and credibility. The seller has a well-designed and user-friendly online store with a secure payment system, making it easy for customers to shop. Insufficient marketing budget restricts the ability to reach a larger audience Leveraging social media platforms can help increase brand visibility and attract a younger demographic.  External factors like natural disasters or geopolitical issues can disrupt the supply chain and impact product availability. A streamlined supply chain minimizes delivery times and reduces costs. The lack of physical stores limits the retailer's reach to customers who prefer in-person shopping. 2. Separate each part of the following paragraph using P.E.S.T analysis: TechWave Innovations, a cutting-edge tech startup, has established itself as a frontrunner in the field of sustainable technology solutions. Recognized for its commitment to environmentally friendly innovations, the company recently seized an opportunity as the government eased regulations related to 'EcoBrite Batteries,' allowing it to enhance the performance of its new solar energy storage system. This change in regulations paves the way for TechWave to target a younger, eco-conscious demographic, harnessing the appeal of cleaner and more efficient energy solutions. To fund further research and development, TechWave secured a favourable loan with a reduced interest rate from Galaxy Financial. In the lead-up to their product launch, the company is leveraging its strong social media presence to engage with its audience. By hosting online surveys and analyzing data collected on their intended demographic, TechWave is confident about the impending success of its energy storage system. The addition of 50 new employees and a remarkable 25% increase in sales in the past month signifies that TechWave Innovations is entering a robust expansion phase, highlighting the significance of adapting to regulatory changes, capitalizing on economic conditions, and leveraging social media for effective growth strategies. *List any key takeaways or suggestions for Beauty Inc. regarding P.E.S.T Political Economic Social Technological  Unit 4: Ethics and Social Responsibility Ethics and Ethical Dilemmas Ethics are guiding principles that help to navigate decision-making; they help to determine what is good, bad, right or wrong. Heavily rooted in values such as integrity, honesty, responsibility and fairness Also rooted in one’s role models (such as parents) and in one’s experiences Not to be confused with laws (rules established by a jurisdiction) as opposed to personal and societal guiding principles, which ethics are Why do people care about ethics and social responsibility? Why the company exists; how they are supporting the wants and needs of customers as well as the community How the company operates; their suppliers and their environmental footprint Who they associate with; their connections with other figures, like politicians What they believe in; their stances on social and political issues To drive business decisions, companies should be aware of any laws and regulations that could provide guidance on what is acceptable or not and have core values they are willing to uphold. Businesses are held to higher standards today and are expected to be responsible in how they make decisions or find opportunities to give back to society Why should businesses care about behaving ethically? Keep or acquire customers; customers favor morally upstanding companies Maintain reputation; scandal could drive away potential clients Retain and attract employees; employees might want to work for a company that shares their values or might not work for a company that doesn’t Avoid government intervention; unethical behavior can become illegal behavior if government decide said unethical behavior should be prohibited Avoid legal action; in some cases, unethical behavior can lead to costly lawsuits How can businesses act ethically? Tone at the top; managers can model ethical behavior Support for a code of conduct; rules provide general guidance for ethical behavior Training/retraining; keep workers educated on changing ethical standards Adequate ethics resources; provide specific advice and answers for ethical dilemmas Informing stakeholders; help to explain possible dilemmas, such as unethical suppliers Key points regarding Ethics Resources such as your school, workplace, or any professional association you’re a part of (such as CPA) can guide decision-making  Sources of complications include legal differences between countries or moral differences between countries or moral differences between cultures Whistleblowers: Whistleblower is someone who steps up to report unethical or illegal behavior Whistleblowers have some legal protections, but these are not full A whistleblower’s protection varies by workplace and industry In place to hold employees accountable and provide a platform to express concern/feedback Ethical Dilemmas: Ethical Dilemma: A problem where a difficult choice has to be made, usually with a trade-off regardless of the choice made Some examples: Pressure to release product early; is it ethical to trade products for customer safety if product quality is uncertain? Testing practices; is it ethical to raise product quality at the cost of testing harmful compounds or products on animals? Pricing; is it fair to raise prices on goods to the point where people that require them cannot acquire them? Navigating Ethical Dilemmas: Consider legality; does this violate laws, regulations or policy? Consider fairness; does this treat all parties equally? Consider feeling; how do you feel about this decision? Are you proud or are you guilty? Social Responsibility and Sustainability Defining Social Responsibility: How someone can step up to take care of those around them in society. (When referring to a company, this is Corporate Social Responsibility. Because information is more transparent, consumers have more info about how and if businesses are being socially responsible Social responsibility could include caring for the environment or for the community Points For and Against Social Responsibility (SR) For SR is that acting responsibility can go hand-in-hand with profitability by retaining customers and employees and improving image. Against SR is that it detracts from a company’s main goal of maximizing profits. As such, it could be seen as stealing from shareholders, who benefit from company profits. Arguments For SR: A closer look Positive image can build market value (up to 6% increase) in the long run Can increase price premium and revenues by up to 20% each in the long run  Significantly reduced turnover rates (up to 50% decrease) and increased worker productivity and engagement Because of these statistics, 93% of a pool of 1000 surveyed CEOs believe sustainability will be crucial to future success How to be Socially Responsible? Corporate Philanthropy: the act of donating time or money to various causes ○ For example, Johnson & Johnson sending medical supplies around the world Policy revision and taking public stances on certain political issues ○ Supporting safe work environments or equality in promotion opportunities ○ Fighting for issues in advertisements. An example is Dove’s body positivity ads Integration into business model ○ Donating a portion of ALL profits to charitable causes ○ Doing something sustainable (i.e: planting trees) whenever a sale is made ○ Fair trade, which means ensuring that suppliers in developing countries are paid fairly. Sustainability Sustainable Development: Implementing environmental, social and ethical considerations into business decision-making Considers whether operations can support needs without adversely impacting future generations and the future in general Heavily related to the idea of a circular economy ○ Circular Economy: An economy that changes the produce-use-dispose cycle into a produce-use-recycle/reuse one, where used products are reused and recycled instead of disposed. How to Support Sustainability Allocate annual funds to sustainability Recognize and reward people contributing to sustainability Frequent discussion about sustainability to keep it in consideration Regularly reporting progress and next steps as necessary Stakeholders and Company Responsibilities For Them Stakeholder: Someone with an interest or concern in something Two types: Internal stakeholders (people within company) and external stakeholders (people outside of the company) Employees are internal stakeholders. Companies must create meaningful jobs with growth potential. They must also fairly compensate their workers. Customers are external stakeholders. Companies must provide quality products and services to customers that are safe. Investors are external stakeholders. Companies must generate financial advantage to benefit investors. This goes with ethics and sustainability, not against it.  The environment is not a person, but is an external stakeholder. Companies have a responsibility to conserve and protect the environment through green manufacturing practices and green policies. Future Opportunities Ways to measure sustainability and ethics are becoming more prominent. Social Audits are one of those ways. It’s a company-run way of releasing information about progress on sustainability and ethics goals in a given time period. ○ A subset of this is Triple Bottom Line reporting. This is a framework that companies use to release information about profit (economics), planet (sustainable), and people (social) ○ While applauded by some, TBL reporting is also criticized for being too unstandardized or self-serving.  Unit 4: Practice Questions Multiple Choice 1. What is the Triple Bottom Line Consisted of? a. Suppliers Place Position b. Customers Profit Positivity c. People Planet Economy d. People Planet Profit 2. True or False: A stakeholder is always someone who is a member of the company a. True b. False 3. Which of the following is an example of a stakeholder? a. Suppliers b. Company’s Inventory line consisting of car accessories purchased from AFSA Cars Inc c. Delivery Vehicles that the company purchased from AFSA Cars Inc d. All of the above 4. An example of legality is when a business person chooses not to test products on animals a. True b. False 5. Choosing to consider in ethics, society, and the environment to make choices for a business is called: a. Ethical dilemma b. Corporate Reconsideration c. Circular Economy d. Sustainable Development 6. Apple Corps decides to donate $300 million for developing schools and access to clean water. This is an example of: a. Generous Development b. Corporate Philanthropy c. Corporate Donation d. Corporate Social Responsibility 7. Intentionally selling alcohol higher than you originally bought it for is: a. Illegal  b. Unethical c. Immoral d. Legal 8. A company stepping up to take care of those around them in called: a. Basics of Ethics b. Tone at the top c. Corporate social responsibility d. Corporate initiatives 9. All of the following are ways businesses can support ethics, EXCEPT: a. Tone at the top b. Support for a code of conduct c. Training and Retraining d. Expansion to under-developed countries Short Practice Questions 1. Write a short paragraph on what a company does to ensure corporate social responsibility and why it is important for business to keep mind with this constantly. 2. Apply Triple Bottom Line to a company of your choice  Unit 5: Management Overview of Management Manager: Someone who gives direction to their organization, provides leadership direction, and decides how to use organizational resources. Four core functions of management; remember, POLC: ○ Planning ○ Organizing ○ Leading ○ Controlling These will be defined and elaborated on further below. Managers are key to a company’s success, as they are responsible for adapting to a fast-changing business environment. Consider what makes a manager great Professionalism Support you with your responsibilities Provide constructive feedback PLANNING Planning hopes to answer the following questions. 1. Where are we now? This assesses the current situation of a company, and its strengths and weaknesses. It also assesses the external environment - what challenges and opportunities arise? 2. Where do we want to be? This assesses where one wants to head, shapes future goals 3. How do we get from here to there? This assesses actions required to go from one’s current position to one’s future position Answers to these questions influence future management functions. Vision and Mission Statements: Planning starts with two similar but distinct things: defining a vision and a mission statement ○ Vision: A long-term goal for an organization. Must be considered with every decision made. Describes why an organization exists and where it wants to be. ○ Mission Statement: This highlights an organization’s current purpose. Addresses why the organization exists (what it provides, who it serves, how it holds up society) Addresses what makes the organization unique (things that make it different from competitors) Considering Values Defining Values: Fundamental beliefs that guide decision-making.  Values are especially useful when making choices with limited time or information Examples of values include integrity, initiative, passion, accountability, respect, and perseverance Important to make sure they’re communicated well. Some ways to do this: ○ Ensure they are communicated to all new hires ○ Ensure they are located in prominent locations ○ Ensure they are modeled by organizational leaders Setting Goals Defining Goal: A target that aligns with one’s mission and vision. Ideally, goals should be SMART ○ Specific: Clear, not ambiguous ○ Measurable: Progress can be monitored ○ Attainable: Feasible with resources on hand ○ Relevant: Aligns with mission statement and/or vision ○ Timely: Can be met within a time frame Contingency Plans (Plan B) Contingency Plan: Course of action if something doesn’t go as planned ex: Internal events (sales are low, increase marketing), External events (natural disaster occurs, support employees). ORGANIZING Organizing hopes to answer these questions. 1. How to allocate resources? Which people and resources should be allocated where? 2. How to assign tasks? Who should do what? 3. How are processes and procedures designed? How are products and services made? How does information flow? Defining Organizational Chart: A chart that shows a company’s structure. It shows titles, who reports to who, and number of people in each position. Here are some positions: “C-Suite” (ex: CEO [Chief Executive Officer] or CFO [Chief Financial Officer] Middle management (i.e: Vice President or Director) Other employees (assistants, consultants, etc.) ○ One of the trends in current workplaces is a condensation of middle management. This is because employees are now more skilled and require less guidance. They are also expected to be more independent and more adaptable to customer needs. Skills and Knowledge Employees Should Possess: There are three types of managerial skills: 1. Human: Interacting with people, motivating them and leading them 2. Technical: Ability to perform tasks in a specific discipline  3. Conceptual: Ability to react to and resolve complex situations As you go up the organizational hierarchy, Technical skills become less key while Conceptual skills become more key. Human skills remain consistently key. Courtesy of David Ha - AFM 132 Professor Designing Processes and Procedures Processes - how information is shared, decisions are made, and how people work. This includes office spaces and information systems Many workplaces are trending away from traditional cubicles to more open-ended workplaces that are more comfortable, open and that promote collaboration. Rewarding top talent - rewards are incentives that encourage good behavior and retain strong employees. LEADING Why Lead? (According to Mary Parker Follett) To empower those being led with a sense of power Ultimately, to create additional leaders in the long run What Makes A Good Leader? Drive - energy and ambition Cognitive ability - ability to absorb and use large amounts of information Self-confidence - knowing one’s abilities, how to use them and the ability to acknowledge what is unknown Honesty and integrity - being trustworthy to build relationships Leadership motivation - having the ability to inspire others Ultimately, leading isn’t about authority (forcing someone to do something), but rather influencing (making someone want to do something). Motivating People: What Drives Them? Consider Maslow’s Hierarchy of Needs: A specific order of needs that must be fulfilled in top to bottom order. The needs are listed below. ○ Physiological (food, water, shelter) ○ Safety (security and stability) ○ Love/belonging (desire to be accepted) ○ Esteem (desire to be respected by others) ○ Self-Actualization (suggests that employees can perform to full potential) Satisfying these needs is key to creating employees that are willing to grow. This in turn, creates an overall more productive and effective workplace. The Three Styles of Leadership Autocratic Leadership: Making decisions without consulting others ○ This style of leadership is good when decisions must be made quickly. ○ It’s also effective for managing newcomers who may be incapable of autonomy. ○ However, it does not create empowerment for employees, which lowers initiative and motivation in the long run. Democratic Leadership: Making decisions with others and working together to come to a conclusion. ○ This style of leadership builds positive relationships and increases satisfaction. ○ This style of leadership also helps when trying to generate creative ideas or brainstorm. ○ However, it can be time-consuming, meaning it’s not the best for emergencies. Laissez-faire Leadership: Setting goals for employees to reach using their own means. ○ This style of leadership builds initiative and empowers employees. ○ It does not require the same time commitment as a democratic leadership style either. ○ However, it requires a skilled and trusted workforce. Best used with trained professionals. CONTROL Why Control? Allows you to collect feedback to ensure that goals are being met This feedback allows you to take actions to work towards your vision and mission statements The Five Steps of Controlling ONE: Establishing clear standards, such as specific numbers or customer satisfaction ○ These tools can then be used to benchmark, to compare with actual results. TWO: Monitoring and recording performance THREE: Comparing results to standards  FOUR: Communicating results FIVE: Taking corrective action if needed ○ This can include process changes, such as implementing a contingency plan ○ This can also include re-evaluating goals and seeing if they are realistic The Balanced Scorecard: More than just finances Defining Balanced Scorecard: A tool measuring a company’s performance with regards to finances, customers, learning/growth, and business processes. Financial encompasses key financial numbers, like sales targets. Customer encompasses client satisfaction and metrics like customer retention. Business processes encompass operational performance, such as speed of customer service and rapidity of resolving complaints. Finally, learning and growth encompass ability to support and develop employees, such as employee retention and promotion  Unit 5: Practice Questions 1. All of the following are questions to be considered in the planning stage of management, EXCEPT: a. What should we change? b. Why do we want to be this way? c. What are our long-term goals? d. Where are we now? 2. True or False: The vision of an organization is their current purpose and what they can do and the mission statement describes the fundamental beliefs that guide decision making in a company? a. True b. False 3. Goals should be: a. Based on your role model’s success journey b. Timely c. Difficult to achieve d. Ambiguous 4. To ensure values are being followed, what questions should senior leadership consider? a. Where are we now? b. Where do we want to be? c. Are values modeled by leaders within the organization and communicated to all employees? d. How do we get there from here? 5. What is a contingency plan? a. Targets or accomplishments a business hopes to achieve b. Where an organization wants to be in the future c. A description of the organization’s current purpose and what they do d. A course of action taken when original plans do not go as anticipated 6. What does the organizing function of management entail? a. Putting plans into action b. Following instructions from senior management c. Designing the structure of the organization d. A and C are correct 7. Which of the following statements is true regarding organizational charts?  a. It shows the number of employees, their functions, and their positions/relationships b. Can be vertical or horizontal c. It shows how information flows within departments and teams d. All of the above are true 8. Senior management is expected to have the most: a. Human skills b. Technical skills c. Conceptual skills d. All of the above are correct 9. First-line management is expected to have the most: a. Human skills b. Technical skills c. Conceptual skills d. All of the above are correct 10. What are rewards? a. Something given to support desired behaviours in an organization b. Incentives c. Compensations d. All of the above are correct 11. Which of the following is not a trait of successful leaders? a. Motivation b. Adequate communication c. Honesty d. Leadership Motivation 12. Which of the following is not one of the criteria under Maslow’s Hierarchy of Needs? a. Physiological b. Love and Belonging c. Self-Actualization, d. Discipline 13. _____________ involves making decisions after consulting others and obtaining a shared perspective on a problem a. Autocratic Leadership b. Democratic Leadership c. Laissez-Faire Leadership d. None of the above  14. Which of the following statements is true regarding laissez-faire leadership? a. Lots of trust is placed on employees b. It involves managers setting goals where employees are free to accomplish such goals in the manner that they wish c. It is effective when managing experienced professionals who know what they are doing d. All of the above are true 15. The _________ aspect of management aims to collect feedback to determine if goals and targets have been met to act accordingly. a. Plan b. Organize c. Lead d. Control 16. The Balanced Scorecard approach: a. Emphasizes financial and non-financial aspects of the company b. Consider how companies support and develop employees c. Considers how customers feel about the business and its products/services d. All of the above 17. True or False: SMART Goals help a person effectively set goals but the end result must be compromised to some extent? a. True b. False Short Practice Questions 1. Why do some companies reward top-talent? 2. What makes a good leader? 3. What are the elements of a “SMART” goal?  Unit 6: Entrepreneurship Lessons from on-job learning Learning what you’re passionate about Building on technical abilities Expanding your skills Gaining exposure to organizational cultures Traits of an Entrepreneur Passion and Motivation Tolerant of Uncertainty Helps them plan and execute action Being comfortable to take risks plan Learning and Growth Mindset Confidence Learning from mistakes and not Knowing their own strengths and repeating them weaknesses Seeking opportunities to improve and seeking help when needed Reasons to become an Entrepreneur Be your own boss Flexibility in Schedule Define your own success Support for Innovators Education; Entrepreneur Workshops Technology; Social Media Outlets Social Acceptance; Greater interest in non-traditional career paths Support Systems; Support systems are available with social acceptance Intrapreneurship Entrepreneurship in a corporate setting ○ Freedom to use company resources to launch new products/services ○ Innovation within a corporate setting ○ One example of how it is encouraged is through company hackathons Business Cycle Birth/Introduction ○ Defines business model, gets initial customers Breakthrough/Growth ○ Focus on growth Maturity/Exit  ○ Maintain/Grow Market Share ○ Exit strategy Challenges in launching an idea Getting customers Managing time Abiding by local rules Other ways to get into a business Buying an Existing Business Franchising Benefits Benefits - Established consumer base - Franchisor’s Experience/Reputation - Pre-established supplier relationships - Proven product or service - Existing reputation Drawback Questions to Ask - Lack of control - Why is it up for sale? - Verify information on business - What price to pay Resources to Start a Business Incubators ○ Supportive environments to help manage a business Coaching Management and Operations Assistance Networking Opportunities Financing Industry/Government Support ○ Business Development Bank of Canada Provides financing and advisory services to small businesses ○ Innovation, Science, and Economic Development Canada Checklists for starting a business Tools and tips for conducting research/drafting a business plan Tips on financing Details on permits/laws surrounding business How to manage employees, payroll, taxes Financing Sources ○ Angel Investors Invest early on, want control in how business is run ○ Venture Capitalists Invest in established business, want return on investment  ○ Crowdfunding Raises money from people online, they want some perk/benefit Value Proposition Describes benefits customers get from using product Profile Customer ○ Jobs: Task your customer wants accomplished ○ Pains: Things that annoy your customer in getting job done ○ Gains: Wants when they get job done Business Model How you deliver value to your customers Business Model Canvas ○ Way to organize business model The BMC considers the following 9 segments: ○ Customer Segment – Users and paying customers ○ Value Proposition – Each segment has a unique customer segment to create value for users ○ Channels to reach customers – How you deliver value to customers ○ Customer Relationships – Type of relationship established with customers ○ Revenue streams – How and what pricing mechanisms your business uses to capture value ○ Key resources – Create, deliver value and which assets are indispensable ○ Key activities – Things needed to perform well ○ Key Partners – Who can help you ○ Cost Structure – Once you know the infrastructure, you will know cost structure Business Plan Plans focus on summarizing business ○ Nature of Business ○ Target Market ○ Understanding competition/industry ○ Qualifications of people involved Common Mistakes ○ Ignoring the competition ○ Relying on a few customers ○ Procrastinating ○ Being too optimistic Record Keeping Accounting Systems Inventory  Customer Records Employee Record Unit 6: Practice Questions 1. Which of the following is not a lesson from on-job learning a. Learning what you’re passionate about b. Building on technical abilities c. Improving academic performance d. Gaining exposure to organizational cultures 2. The entrepreneurship mindset consists of a. Managing uncertainty b. Creativity and problem solving c. Risk-taking d. All of the above are true 3. Which of the following is not a reason to become an entrepreneur a. Be your own boss and be successful with minimal effort b. Flexible schedule c. Define your own success d. Willingness to improve the world through innovating or investing (or both) 4. Which of the following is not a support for Innovators a. Education b. Traditions c. Technology d. Social Acceptance 5. All of the following describe Intrapreneurship, EXCEPT: a. Innovating within a corporate setting b. Creating new products for a company c. Freedom to use company resources to launch your own product d. Acting like an entrepreneur as an employee working under a company 6. Which of the stages does a business get its initial customers a. Networking/Decline b. Breakthrough/Growth c. Birth/Introduction d. Maturity/Exit 7. Which of the following is not a challenge in launching an idea a. Getting customers  b. Using business model canvas c. Managing time d. Abiding by local rules and regulations 8. What are the benefits of buying an existing business a. Established consumer base, pre-established supplier relationships and existing reputation b. Some management required, established consumer base and low effort c. Pre-established supplier relationships, new competition and weaknesses d. Poor reputation, small customer base and potential 9. All of the following are actions to take before buying a business, EXCEPT a. Reasoning for sale b. Verify information on business c. Determine new suppliers to partner with d. Determine price 10. All of the following are benefits of purchasing a franchise, EXCEPT a. Franchisor’s Experience/Reputation b. Direct orders from higher management causing you to be less in control c. Proven product or service d. Customer base 11. Which of the following does an incubator not do a. Auditing b. Coaching c. Management and Operations Assistance d. Provide Financing Opportunities 12. What are two examples of industry and government support a. Bank of Canada and the Entrepreneur society b. Business Development Bank of Canada and the Innovation, Science, and Economic Development Canada c. Business Development Bank of Canada and the Entrepreneur/ Innovation Development Canada d. The Royal Bank of Canada and the Government 13. Which financing source does not have the correct definition a. Venture Capitalists: Invest in established business, want return on investment b. Angel Investors: Invest early on, want control in how business is run c. Personal Investments: Putting your own money into the business; least common of all methods  d. Crowdfunding: Raises money from people online, they want some perk/benefit 14. Which of the following does a value proposition not include a. Mission Statement: Goal of the company b. Jobs: Task your customer wants accomplished c. Pains: Things that annoy your customer in getting job done d. Gains: Wants when they get job done 15. What does a business plan summarize a. Nature of Business, Target Market, Understanding competition and Qualifications of people involved b. Nature of Business, Value proposition, Mission statement and Employees c. Long-term goals, Entrepreneurship, Intrapreneurship and Values d. Price, Product,Process and Purpose 16. Which of the following is not a common mistake a. Ignoring the competition b. Overinvesting in the business c. Relying on a few customers d. Being too optimistic 17. Which of the following is not a record companies must keep a. Accounting Systems b. Competitor Records c. Customer Records d. Employee Records 18. Environments that provide a working space, resources, mentorship opportunities are known as a… a. Sole-proprietorship b. Incubator c. Internship d. Corporations 19. Which of the following best describe the benefits of purchasing a franchise location a. Proven product or service b. Company is at its birth/introduction phase, has a proven product or service c. Proven product or service, franchisor’s experience and reputation, company is at its birth/introduction phase d. Proven product or service, franchisor’s experience and reputation 20. True or False: Breakthrough/Growth is the final stage of a business  a. True b. False 21. Governments support small businesses for all of the following reasons, EXCEPT a. Requirement by law b. Drives Economy c. Creates more jobs d. Helps promote financial stability Answer Key Unit 1 Short Answer 1. The rapid adoption of new technologies creates exciting opportunities for launching innovative products and services in the coming years. However, it also prompts reflection on how this accelerated rate of change can potentially impact individual careers, requiring adaptability and the acquisition of new skills to remain competitive and relevant in evolving industries. 2. A vital way for a business to succeed is to become future proof. To be Future proof is to anticipate and develop a plan to stay on top of current trends and keep up with a rapidly progressing society. Three areas a company might focus on in becoming future proof include; their collection and use of big data, their human capital, and their public image. Similar to how an Individual might develop their digital literacy, Companies need to develop their ability to collect and analyze tremendous amounts of data. Through data analytics a company might gain insights that can help a company improve their operations to better serve the needs of their customers even as they change. In many industries, more emphasis is placed on an individual’s entrepreneurial abilities; I.e to problem solve, take risks, be creative, and manage uncertainty. A company that wants to manage change should place a lot of emphasis on developing employees that are best suited to doing so Lastly, due to the rise of social media and such, more than ever companies face scrutiny over their ethics, their impact on their community, and their impact on the environment. A company can mitigate some of the risks that come with the higher scrutiny by managing their brand-awareness carefully and practicing corporate social responsibility. Multiple Choice 1.D 2.B 3.C Unit 2 Multiple Choice 1.B 2.D 3.B 4.A 5.C 6.B 7.C 8.A 9.D 10.B 11.B 12.A 13.C 14.D 15. A Unit 3 Multiple Choice 1.D 2.A 3.C 4.D 5.A 6.B 7.C 8.A 9.D 10.B 11.C 12.A 13.A 14.D 15.B 16.B 17.D 18.A 19.C 20.B 21.A 22.B 23.C 24. D Short Answer: Answer for SWOT Analysis: T, O, S, W, O, T, S, W Answer for PEST Analysis Political The government's decision to ease regulations related to 'EcoBrite Batteries' presents a significant political opportunity. TechWave can benefit from a more favorable regulatory environment, enabling them to enhance their solar energy storage system. Economic TechWave's ability to secure a favorable loan with a reduced interest rate from Galaxy Financial is a positive economic factor. Lower interest rates promote more accessible financing for research and development, contributing to the company's growth. Social TechWave's decision to target a younger, eco-conscious demographic aligns with prevailing social trends. The appeal of cleaner and more efficient energy solutions reflects the growing societal awareness of environmental concerns and sustainable living. Leveraging social media for engagement and audience interaction is a proactive response to the way people now communicate and access information. TechWave's strong social media presence is in tune with current social behavior. Technological TechWave's focus on sustainable technology solutions places them at the forefront of technological innovation. Their emphasis on enhancing their solar energy storage system underscores their commitment to staying on the cutting edge of technology. Unit 4 Multiple Choice  1.D 2.B 3.A 4.A 5.D 6.B 7.B 8.C 9.D Short Answer 1. Starbucks’s “Responsible Coffee” A key idea of Starbucks’ CSR is a commitment to furthering the idea of “Responsible Coffee”.. Starbucks is working to make coffee the world's first sustainable agricultural product. One way Starbucks is working to accomplish this is by partnering with Conservation International. In 2019 Starbucks in partnership with Conservation International, committed to purchasing 99% ethically sourced coffee. Also, for every bag of coffee sold at participating Starbucks’ stores in the U.S, Starbucks contributed $0.70 that went into providing new coffee trees to farmers in El Salvador, Guatemala, and Mexico. Out of the company goal to donate 100 coffee trees to coffee farmers, Starbucks has already distributed 30 million. 2. Starbucks- Triple Bottom Line People Starbucks works to introduce communities to the emerging forest carbon market, creating farmer loans and many more programs to help support the people and ecosystems of growing communities. Profit Pressurizes competitors to launch initiatives of their own Increases consumer awareness and influences long term consumption decisions Planet Pledged to build 10 000 “greener stores” by 2025 In support of phasing out single use plastics by 2020 Plans to audit US and Canadian stores to monitor energy efficiencies Unit 5 1.D 2.B 3.B 4.C 5.D 6.D 7.D 8.C 9.B 10.D 11.B 12.D 13.B 14.D 15.D 16.D 17.B Short Answer 1. Rewarding Top-Talent Rewards are an incentive that allow a company to retain top talent and recruit better talent in the future. This allows the company to keep its strong employees for longer and this in turn allows for the company to operate at a greater efficiency. Additionally, top employees of other firms may be attracted by the rewards offered by a different company and prefer to work there instead. 2. Good Leader a. Drive: Energy and ambition to move initiatives forward b. Cognitive Ability: Integrate and interpret large amounts of information c. Self-confidence: Knowing strengths and weaknesses  d. Honesty and integrity: Trustworthy e. Leadership motivation: Desire and ability to inspire others 3. Smart Goal a. Specific — Is it clear and not ambiguous? b. Measurable — Can you monitor and quantify how you’re making progress towards the goal? c. Attainable — Is it achievable given the people and resources involved? d. Relevant — Does it align with the vision and mission statement? e. Timely — Can the goal be met within a specified time frame? Unit 6 1.C 2.D 3.A 4.B 5.C 6.C 7.B 8.A 9.C 10.B 11.A 12.B 13.C 14.A 15.A 16.B 17.B 18.B 19.D 20.B 21.A