AFM 131 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS GRADED A++
EQ (Emotional Quotient, also know as emotional intelligence)
Focuses on the strength of certain soft skills, and involves developing greater self-
awareness and self-control, and developing the ability to empathize and see a variety of
perspectives.
Intrapreneurship
Where one is able to be creative to launch new products/services or evolve processes
using the company's existing resources and reputation.
Sustainability
Business practices that leave a positive impact on the environment to protect the world
for future generations.
Balance of trade
The relationship between importing and exporting
Favourable balance of trade (trade surplus)
When exports are greater than imports
Unfavourable balance of trade (trade deficit)
When imports are greater than exports
Business
An activity that you intend to carry on for profit (e.g., providing goods and services)
Comparative advantage
,Countries should sell (export) what they can produce most efficiently, and buy (import)
when they cannot
Contract manufacturing
Involves finding a foreign manufacturer to make your product and then have your own
brand name or trademark attached. Also known as outsourcing
Corporation
An incorporated business that's considered a separate legal entity apart from its
owners. Shareholders of the corporation are not personally liable for debts or acts of the
corporation
Crown corporation
A company owned by the federal or provincial government (also referred to as publicly
owned)
Embargo
A ban on the import or export of specific products
Exporting
The sale of goods and services to another country
Foreign direct investment (FDI)
Buying permanent property (or a business) and operating in a foreign country
Foreign subsidiary
A company that is owned by a parent company located in another country
Franchising
, Where someone with a business concept (the franchisor) sells the rights to use the
business name and to sell a product or service to another party (known as the
franchisee)
Free market economy
Where the market determines what goods and services to produce and who gets them
Free trade
Where goods and services can be traded between countries without any political or
economic obstruction
Importing
The purchase of goods and services from another country
Import quota
A limit on the quantity of products that a country imports
Joint venture
Two or more companies that form a partnership to take on a major project
Licensing
When a domestic company (known as the licensor) allows a foreign company (known
as the licensee) to make its product in exchange for a fee (typically a royalty)
Multinational corporations
Manufacture and market their products in many different countries where they also have
a physical presence
Mixed economy
SOLUTIONS GRADED A++
EQ (Emotional Quotient, also know as emotional intelligence)
Focuses on the strength of certain soft skills, and involves developing greater self-
awareness and self-control, and developing the ability to empathize and see a variety of
perspectives.
Intrapreneurship
Where one is able to be creative to launch new products/services or evolve processes
using the company's existing resources and reputation.
Sustainability
Business practices that leave a positive impact on the environment to protect the world
for future generations.
Balance of trade
The relationship between importing and exporting
Favourable balance of trade (trade surplus)
When exports are greater than imports
Unfavourable balance of trade (trade deficit)
When imports are greater than exports
Business
An activity that you intend to carry on for profit (e.g., providing goods and services)
Comparative advantage
,Countries should sell (export) what they can produce most efficiently, and buy (import)
when they cannot
Contract manufacturing
Involves finding a foreign manufacturer to make your product and then have your own
brand name or trademark attached. Also known as outsourcing
Corporation
An incorporated business that's considered a separate legal entity apart from its
owners. Shareholders of the corporation are not personally liable for debts or acts of the
corporation
Crown corporation
A company owned by the federal or provincial government (also referred to as publicly
owned)
Embargo
A ban on the import or export of specific products
Exporting
The sale of goods and services to another country
Foreign direct investment (FDI)
Buying permanent property (or a business) and operating in a foreign country
Foreign subsidiary
A company that is owned by a parent company located in another country
Franchising
, Where someone with a business concept (the franchisor) sells the rights to use the
business name and to sell a product or service to another party (known as the
franchisee)
Free market economy
Where the market determines what goods and services to produce and who gets them
Free trade
Where goods and services can be traded between countries without any political or
economic obstruction
Importing
The purchase of goods and services from another country
Import quota
A limit on the quantity of products that a country imports
Joint venture
Two or more companies that form a partnership to take on a major project
Licensing
When a domestic company (known as the licensor) allows a foreign company (known
as the licensee) to make its product in exchange for a fee (typically a royalty)
Multinational corporations
Manufacture and market their products in many different countries where they also have
a physical presence
Mixed economy
