AFM 131 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS GRADED A++
CSR
Corporate Social Responsibilty
What to consider for international business?
Competition for customers, business decisions, employement
Why do employers value graduates with a global mindset?
It shows a better understanding of markest and consumers around the world. You have
exposure to unique business practices ad you can adapt to work with others to better
meet the needs of the company.
What are skills that are future-proof?
Digital literacy
Entrepreneurial abilities such as managaing uncertainty and risk-taking
Creativity
Problem-solving
Social Intelligence
Intrapreneurship
Being entrepreneurial in a company to help the company grow.
EQ
Emotional quotient; measures emotional intelligence
Sustainability
,Businesses that leave a positive impact on the world to protect the world for future
generations: environment, econonomy, people
CEO
chief executive officer
Business
An activity you intend to carry on for profit
Reasons for difficulty of business in Canada
Large land mass complicating the travel and transport of goos across the country
Low and spread out population
Lack of infrastructure connecting the country coast to coast
How did Sir John A. Macdonald encourage trade in Canada and why was this
necessary
He placed high tariffs on imports from the United States making it cheaper to buy
Canadian goods. This was necessary because many immigrants coming to Canada
would settle on the border making North to South trades with the United States more
common the East to West trades through the country.
How did the government support trades within Canada?
By building a railway to impove connectivuty across teh country, to expand settlements,
and facilitate trade and communications.
Mixed Economy
An economic system combining private and public enterprise. Some resources are
allocated by the market and pthers by the government.
Crown corporation
,Company owned by the federal or provincial government. These are sometimes set up
to offer services not already offered, for example Air Canada to introduce air travel in
the 1930s.
Privatization
The sale of a crown corporation to a provate company.
Reasons for privatization
Reducing government debt
Funding the government
Promotes competition.
Benefits of competition
Drives innovation
Improves efficiency which leads to lower costs. Ex. Air Canada and the Canadian
National Railway.
Small business
Independantly owned and operated
Not dominant in its field
Certain size (typically 1-99 emplyees)
What percent of employer businesses are small business?
98%
Sole proprietership
Owned by one person and exist once you start selling a product or service.
Sole Proprietorship Advantages
, Easy to set up - only business registration
Lower start-up costs
Freedom and control for owners - say on all decisions, ability to keep all profits
Less regulatory requirements - all taxes go through your personal tax return.
Sole Propriertorship Disadvantages
Unlimited liability - no distinction between your business and personal assets,
responsible personally for paying all expenses
Business continuity issues - if you cant work at the moment the busness activities may
need to be put on hold
Difficulty raising funds - you need to rely on personal savings and pledges on personal
assets to apply for loans.
Partnership
Business owned by two or more people
Partnership Agreement
Address the nature of business, financial contributions from each partner,
responsibilities of each partner, how profits are shared, how decisions will be made,
how disputes can be resolved, what happens if a partner wants to leave, and how to
end the partnership.
Partnership Advantages
Easy and Inexpensive start-up
Sharing strat-up costs between partners
Shared maagement and decision making - talent and expertise form different partners
Less regulatory requirments - Income and expenses flow through personal tax returns
SOLUTIONS GRADED A++
CSR
Corporate Social Responsibilty
What to consider for international business?
Competition for customers, business decisions, employement
Why do employers value graduates with a global mindset?
It shows a better understanding of markest and consumers around the world. You have
exposure to unique business practices ad you can adapt to work with others to better
meet the needs of the company.
What are skills that are future-proof?
Digital literacy
Entrepreneurial abilities such as managaing uncertainty and risk-taking
Creativity
Problem-solving
Social Intelligence
Intrapreneurship
Being entrepreneurial in a company to help the company grow.
EQ
Emotional quotient; measures emotional intelligence
Sustainability
,Businesses that leave a positive impact on the world to protect the world for future
generations: environment, econonomy, people
CEO
chief executive officer
Business
An activity you intend to carry on for profit
Reasons for difficulty of business in Canada
Large land mass complicating the travel and transport of goos across the country
Low and spread out population
Lack of infrastructure connecting the country coast to coast
How did Sir John A. Macdonald encourage trade in Canada and why was this
necessary
He placed high tariffs on imports from the United States making it cheaper to buy
Canadian goods. This was necessary because many immigrants coming to Canada
would settle on the border making North to South trades with the United States more
common the East to West trades through the country.
How did the government support trades within Canada?
By building a railway to impove connectivuty across teh country, to expand settlements,
and facilitate trade and communications.
Mixed Economy
An economic system combining private and public enterprise. Some resources are
allocated by the market and pthers by the government.
Crown corporation
,Company owned by the federal or provincial government. These are sometimes set up
to offer services not already offered, for example Air Canada to introduce air travel in
the 1930s.
Privatization
The sale of a crown corporation to a provate company.
Reasons for privatization
Reducing government debt
Funding the government
Promotes competition.
Benefits of competition
Drives innovation
Improves efficiency which leads to lower costs. Ex. Air Canada and the Canadian
National Railway.
Small business
Independantly owned and operated
Not dominant in its field
Certain size (typically 1-99 emplyees)
What percent of employer businesses are small business?
98%
Sole proprietership
Owned by one person and exist once you start selling a product or service.
Sole Proprietorship Advantages
, Easy to set up - only business registration
Lower start-up costs
Freedom and control for owners - say on all decisions, ability to keep all profits
Less regulatory requirements - all taxes go through your personal tax return.
Sole Propriertorship Disadvantages
Unlimited liability - no distinction between your business and personal assets,
responsible personally for paying all expenses
Business continuity issues - if you cant work at the moment the busness activities may
need to be put on hold
Difficulty raising funds - you need to rely on personal savings and pledges on personal
assets to apply for loans.
Partnership
Business owned by two or more people
Partnership Agreement
Address the nature of business, financial contributions from each partner,
responsibilities of each partner, how profits are shared, how decisions will be made,
how disputes can be resolved, what happens if a partner wants to leave, and how to
end the partnership.
Partnership Advantages
Easy and Inexpensive start-up
Sharing strat-up costs between partners
Shared maagement and decision making - talent and expertise form different partners
Less regulatory requirments - Income and expenses flow through personal tax returns
