AFM 132 FINAL PREP EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++ LATEST UPDATE
Emotional Quotient (EQ)
Softs skills, self awareness, self control, seeing vast perspectives
Intrapreneurship
Entrepreneur activity within a business, using existing resources and reputation
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:
An economic system where some allocation of resources are made by the market, and
some are made by the various levels of government that play an active role in the
economy.
Non-tariff barriers:
Hinder trade and include regulations such as restrictive standards that detail exactly
how a product must be sold in a country.
Partnership:
A business created with two or more people who can share knowledge and resources in
launching the business.
Privatization:
, The sale of a publicly-owned corporation.
Small business
An organization that
is independently owned and operated,
is not dominant in its field, and
meets certain standards of size (typically 1 to 99 employees).
Sole proprietorship:
A business owned and operated by one person, and exists once you start selling a
product or service.
Strategic alliance:
Two or more companies that form a long-term partnership to support each other in
building competitive market advantages.
Tariffs:
Taxes on imports, which raise the price of imported products.
Trade protectionism:
Limits the import of goods and services through the use of government regulations.
Benchmark interest rate:
The rate at which the Bank of Canada loans money to Canada's financial institutions.
Business cycles:
The rise and fall in economic activity over time, and each cycle can vary in terms of time
and severity. The cycles include: expansionary, peak, contraction, trough, and recovery.
Consumer Price Index (CPI):
COMPLETE SOLUTIONS GRADED A++ LATEST UPDATE
Emotional Quotient (EQ)
Softs skills, self awareness, self control, seeing vast perspectives
Intrapreneurship
Entrepreneur activity within a business, using existing resources and reputation
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:
An economic system where some allocation of resources are made by the market, and
some are made by the various levels of government that play an active role in the
economy.
Non-tariff barriers:
Hinder trade and include regulations such as restrictive standards that detail exactly
how a product must be sold in a country.
Partnership:
A business created with two or more people who can share knowledge and resources in
launching the business.
Privatization:
, The sale of a publicly-owned corporation.
Small business
An organization that
is independently owned and operated,
is not dominant in its field, and
meets certain standards of size (typically 1 to 99 employees).
Sole proprietorship:
A business owned and operated by one person, and exists once you start selling a
product or service.
Strategic alliance:
Two or more companies that form a long-term partnership to support each other in
building competitive market advantages.
Tariffs:
Taxes on imports, which raise the price of imported products.
Trade protectionism:
Limits the import of goods and services through the use of government regulations.
Benchmark interest rate:
The rate at which the Bank of Canada loans money to Canada's financial institutions.
Business cycles:
The rise and fall in economic activity over time, and each cycle can vary in terms of time
and severity. The cycles include: expansionary, peak, contraction, trough, and recovery.
Consumer Price Index (CPI):
