BSNS 111 - Exam Prep Questions And Correct Answers. Over 280 Questions And Correct Answers. With Complete Verified Solution Updated 2024.

BSNS 111 - Exam Prep Questions And Correct Answers. Over 280 Questions And Correct Answers. With Complete Verified Solution Updated 2024. Bullseye (Sustainability Model) 1. Economy 2. Society 3. Environment Friedman Doctrine Maximise profits, but do so within the rules of the game. Rules of the game Refers to rules which are unwritten, e.g. ethics and attitude, and those laws by govt. Invisible Hand Adam Smith - everyone acting in their own self interest will positively effect society. Cadbury Old vs. New CSR used to be the main focus, then it was only about being profitable. Social Contract A set of understandings that combine business and society. Globalisation A shift towards a more integrated and interdependent world economy. Globalisation of Markets The globalization of markets means that the expansion and access of businesses to all over the world to reach the needs of the customers internationally. Globalisation of Production Sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production like land, labor, and capital. Emergence of global institutions Institutions which have a global purpose, e.g. United Nations. General Agreement on Tariffs and Trade (GATT) Treaty commitment to lowering barriers to free flow of goods across national borders. World Trade Organisation (WTO) Polices and negotiates world trading system. Ensures nations adhere to the rules in the treaty. International Monetary Fund Maintains order in the international monetary system. World Bank Set up to promote economic development. Asian Infrastructure Bank Support the building of infrastructure in the Asia-Pacific region. Drivers of globalisation Declining trade, and increasing investment barriers. Technological changes. Issues of globalisation Economic power shifts from national govt. Gap between rich and poor increases. Govt. has less influence on their countries social contract. Macro-environment Components or factors of which the firm has no control over. PESTEL Political Economic Socio-cultural Technological Environmental Legal. Porter's five-forces Rivals Substitute Products New Entrants Customers Suppliers Resource Is a competitive asset that is owned or controlled by a firm. Capability Is the ability to perform an activity competently through the use of resources. Organisational Capability Intangible, but observable ability to perform an activity proficiently. Knowledge-based. Resource Bundle A closely integrated set of competitive assets. VRIN Valuable Rare Inimitable Non-substituable. Social Complexity Company culture, interpersonal relationships among managers or R&D teams, trust-based relations with customers or suppliers. Casual Ambiguity Makes it hard to figure out how a complex resource contributes to competitive advantage. Dynamic Capability Is the ongoing ability to modify existing resources and capabilities, or create new ones. SWOT Strengths Weaknesses Opportunities Threats Value Price Cost (VPC) Value to customer Price it is sold for Cost to deliver Agency Theory Shareholders own the business, and the board (managers) act in their interests as agents. Pluralistic Society Prevents concentrated power. Maximises freedom of expression and action. Creates a diversified organisation. Managerial Approach Managers deal with social and ethical concerns, as well as operating the business. Stakeholders Individuals or groups with which business interacts, and who have a vested interest in the firm. Labour theory of value Economic value of a good or service is determined by the total amount of socially necessary labor required to produce it. Psychological Egoism Motivated by self-interest. Psychological Hedonism Experience pleasure and avoid pain. Utilitarian Produces greatest good for greatest number. Impact of each alternative on all parties. Uses simps economic costs and benefits to help make decisions. Perfect Competition Many buyers and sellers. Perfect information. Identical products. Minimal barriers to entry/exit. Government Interventions Typically occur with market failure. - Free up markets, and protect markets. Gini coefficient Is a measure of the inequality of income. Consumer buying behaviour Decision process, and purchasing activities of people who purchase products for personal or household use (not business). Problem Recognition A buyer becomes aware of a difference between a desired state and an actual condition. Information Search A buyer searches their internal memory for information on a product, or will get external help. Evaluation of alternatives A group of bands that a consumer may purchase from, will assign greater value to those products they know. Post-purchase: Cognitive Dissonance The state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioural decisions and attitude change. Heuristics Are shortcuts that we use, giving a fast, reasonable solution. Helping avoid careful deliberation to get a good result. Reference Group Any group that positively or negatively affects a person's values, attitudes or behaviour. Consumerism Is a social and economic order and ideology that encourages the acquisition of goods and services in ever-increasing amounts. Eudaimondia Human flourishing Living the good life Being a good person Hedonic Fun Happiness Joy and pleasure Voluntary Simplicity Living better through choosing to consume less. Slow Movement Italian perspective of slowing down the pace of life. Capitalism Where production and distribution is in private hands. Socialism An economic system characterised by public ownership of property and a planned economy. Alienation Marx - Separation of the individual from the object of creativity. Individualism Approach Acts are moral when they promote the individuals best interests. Act in a way you would like to be acted to. Moral Rights Approach Moral decisions are those that best maintain the rights of the people affected by them. Justice Approach Moral decisions must be based on standards of equity, fairness and impartiality. Practical Approach Decisions based on prevailing standards of the profession and larger social, taking interest of all stakeholders into account. Principle of Exchange Person A and Person B will only exchange if they are both better off at the end. Four stages of product life Product Development Introduced Growth Maturity Corporate Social Responsibility (CSR) Considering the impact of the company's actions on society. Obligation of decision makers to protect society's welfare. Four components of CSR Economic - required Legal - required Ethical - expected Philanthropic - desired Responsive CSR Addresses generic social impacts through good corporate citizenship, and value chain by mitigating harm. Strategic CSR Transforms value chain into activities that benefit society while reinforcing corporate strategy. Triple Bottom Line (TBL) Economic Social Environmental Sustainability Reports Reflect extent of creating value in TBL. First Female MP Elizabeth McCombs, 1933 Rogernomics Market-led restructuring and deregulation and the control of inflation through tight monetary policy, accompanied by a floating exchange rate and reductions in the fiscal deficit. Trade with Australia Eliminated tariffs, a good sold in one country can be sold in another. Egalitarian Society Classless society, all equal in law. Everyone is able to participate and belong to the wider society. Why is NZ govt. in business? Control nationally important assets, employment opportunities, ensure competition, promote growth in new sectors. State-owned enterprises (SOEs) Created to improve profitability of public enterprise. Profit is not the sole objective. Provide services which were not there previously, e.g. rail. Base Erosion and Profit Shifting (BEPS) Is a global tax initiative, where everyone has standardised tax. Inflation