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Study Guide

MB105- Midterm Exam Guide - Comprehensive Notes for the exam ( 63 pages long!)


Department
Business Technology Management
Course Code
MB105
Professor
Josephine Mc Murray
Study Guide
Midterm

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WLU
MB105
MIDTERM EXAM
STUDY GUIDE

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MB 105 CHAPTER 1-
BUSINESS
FUNDAMENTALS
Chapter Synopsis
The roles the Canadian government plays in business
Government influences business activity in the Canadian economy through its many roles:
Government becomes a regulator when it regulates many aspects of business activity through
administrative boards, tribunals, and commissions. Regulations promote competition between
businesses, protect customers, achieve social goals, and protect the environment
Government becomes a provider of incentives when it offers programs that help stimulate economic
development
Government becomes a provider of essential services when it supplies services that create the
stability that encourages business activity
Government becomes a taxation agent when taxes are imposed and collected by the three levels of
government
Government becomes a customer when buying from businesses
Government becomes a competitor competes with businesses through its Crown corporations, such
as Canada Post, the Canadian Broadcasting Corporation, SaskTel, LCBO, etc.
Business and discuss the role of business in the economy
Every business needs a sufficient number of customers to whom its output can consistently be sold at a
profit. As more profit is generated, a company is able to reward its employees, increase productivity, or
expand its business into new areas
The proprietor of a business is not the only one who benefits from earned profits and business success. A
successful business provides employment opportunities for members of the community, pays taxes, and
generates income and spending in the economy. Socially responsible firms contribute even more by actively
advocating for the well-being of the society that generates their success
Successful businesses help to raise a country’s standard of living and improve the quality of life
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Difference between for-profit and non-profit organizational goals
People establish for-profit businesses to perform economic activities. With some exceptions (such as co-
operatives, non-profit organizations, and government institutions), businesses exist to produce profit. Any
excess revenue non-profit organizations generate is used put back into the organization to further their
stated mission
Difference between private and public business sectors
The aim of the public sector is to provide services that benefit the public as a whole, either because it would
be difficult to charge people for the goods and services concerned, or because people might not be able to
afford to pay for them. The government can provide these goods and services at a lower price than if they
were provided by a for-profit company
The goal of businesses in the private sector is to make a profit
Factors of production
The factors of production are the resources used to produce goods and produce goods and services
Labor – the human resource that refers to any physical or intellectual work people contribute to a business’
production
Natural resources – the raw materials provided by nature that are used to produce goods and services
Real capital – physical facilities used to produce goods and services. Financial capital is money used to
facilitate a business enterprise
Entrepreneur – someone who assumes the risk of creating, organizing, and operating a business and who
directs all the business resources
Technology – items and services such as smartphones, computer software and digital broadcasting that make
businesses more efficient and productive
Information and knowledge – quickly becoming the key factors of production as the new competitive
business environment places a premium on these factors
Companies do not require technology to obtain and manage information, they need human resources
(knowledge workers) who have the skills to manipulate the information buy turning it into knowledge that
the company can use for competitive advantage
Knowledge is a trick thing to manage, but companies can translate their information assets into real value for
the business by learning from past successes or failures, identifying opportunities to improve profitability, or
simply enabling teams to become more productive
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