THE CHANGING FACE OF BUSINESS

Contemporary Business 4th Canadian Edition, 4e Louis Boone, David Kurtz, Michael Khan, Brahm Canzer

(Test Bank all Chapters)

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Copyright © 2023 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited

CHAPTER 1

THE CHANGING FACE OF BUSINESS

CHAPTER LEARNING OBJECTIVES

LO 1.1 Define business.Business consists of all profit‐seeking activities that provide goods and services necessary to an economic system. Some businesses provide tangible goods, while others provide services.Some businesses earn profits, which is the reward for running a business. Not‐for‐profit organizations are business‐like establishments whose primary objectives involve social, political, governmental, educational, or similar functions instead of profits.

LO 1.2 Identify and describe the economic factors of production.The factors of production have four basic inputs: natural resources, capital, human resources, and entrepreneurship. Natural resources include all productive inputs that are useful in their natural states. Capital includes technology, tools, information, and physical facilities. Human resources include anyone who works for the firm. Entrepreneurship is the willingness to take risks to create and operate a business.

LO 1.3 Describe the private enterprise system.The private enterprise system is an economic system that rewards firms for being able to perceive and serve the needs and demands of consumers. Competition in the private enterprise system means success for firms that satisfy consumer demands. Citizens in a private enterprise economy enjoy rights to private property, profits, freedom of choice, and competition.Entrepreneurship drives economic growth.

LO 1.4 Identify the seven eras in the history of business.The seven historical eras are the colonial period, the Industrial Revolution, the age of industrial entrepreneurs, the production era, the marketing era, the relationship era, and the social era. In the colonial period, businesses were small and rural, emphasizing agricultural production. The Industrial Revolution brought factories and mass production to business. The age of industrial entrepreneurs built on the Industrial Revolution through an expansion in the number and size of firms. The production era focused on the growth of factory operations through assembly lines and other efficient internal processes. During and following the Great Depression, businesses concentrated on find­ing markets for their products through advertising and selling, giving rise to the marketing era. In the relationship era, businesspeople focus on developing and sustaining long‐term relationships with customers and other businesses. The social era of business can be described as a new approach to the way businesses and individuals interact, connect, communicate, share, and exchange information with each other in virtual communities and networks around the world. Technology promotes innovation and communication, while alliances create a competitive advantage through partnerships. Concern for the environment also helps build strong relationships with customers.

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The Changing Face of Business 1 - 2

Copyright © 2023 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited

LO 1.5 Explain current trends in business.The workforce is changing in several significant ways: (1) It is aging, the labour pool is shrinking and (2) it is becoming increasingly diverse. The nature of work has shifted toward services and a focus on information. More firms now rely on outsourcing, offshoring, and nearshoring to produce goods or to fulfill services and functions that were previously handled in‐house or in‐ country. Today’s workplaces are also becoming increasingly flexible, allowing employees to work from different locations and through different relationships. Companies promote innovation through teamwork and collaboration

LO 1.6 Identify the skills and attributes needed for today’s manager.Today’s managers need vision, which is the ability to perceive both marketplace needs and the way their firm can satisfy those needs. Critical thinking skills and creativity allow managers to pinpoint problems and opportunities and plan novel solutions. Finally, managers are dealing with rapid change, and they need skills to help lead their organizations through shifts in external and internal conditions.

LO 1.7 Outline the characteristics that make for a successful and admired company.A company is usually admired for its solid profits, stable growth, a safe and challenging work environment, high‐quality goods and services, and business ethics and social responsibility. 3 / 4

• - 3 Test Bank for Boone & Kurtz Contemporary Business, Fourth Canadian Edition

TRUE-FALSE STATEMENTS

• Large corporations are defined as businesses, whereas small companies are more of an

investment.

Answer: False

Bloomcode: Knowledge

Difficulty: Easy

Learning Objective: Define business.

Section Reference: What Is Business?

AACSB: Reflective Thinking

• Business success does improve society’s standard of living.

Answer: True

Bloomcode: Knowledge

Difficulty: Easy

Learning Objective: Define business.

Section Reference: What Is Business?

AACSB: Ethics

• In order to remain viable, not-for-profit organizations need to focus on profits even more than

the public service they provide.

Answer: False

Bloomcode: Application

Difficulty: Medium

Learning Objective: Define business.

Section Reference: What Is Business?

AACSB: Ethics

• Not-for-profit organizations are commonly exempt from federal, provincial, and local taxes.

Answer: True

Bloomcode: Knowledge

Difficulty: Medium

Learning Objective: Define business.

Section Reference: What Is Business?

AACSB: Analytic

• Just as with a for-profit business, the first priority for a not-for-profit organization is making a

profit.

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