Introduction to Commerce & Canadian Business History

Question 1

Brand

Answer 1

A name, term, sign, symbol, design, or some combination that identifies the products of one firm and shows how they differ from competitors’ offerings.

Question 2

Branding

Answer 2

The process of creating in consumers’ minds an identity for a good, service, or company; a major marketing tool in contemporary business.

Question 3

Business

Answer 3

All profit‐seeking activities and enterprises that provide goods and services necessary to an economic system.

Question 4

Capital

Answer 4

Production inputs consisting of technology, tools, information, and physical facilities.

Question 5

Capitalism

Answer 5

An economic system that rewards firms for their ability to perceive and serve the needs and demands of consumers; also called the private enterprise system.

Question 6

Competition

Answer 6

The battle among businesses for consumer acceptance.

Question 7

Competitive differentiation

Answer 7

The unique combination of organizational abilities, products, and approaches that sets one company apart from its competitors in the minds of customers.

Question 8

Consumer orientation

Answer 8

A business philosophy that focuses first on consumers’ unmet wants and needs, and then designs products to meet those needs.

Question 9

Creativity

Answer 9

The capacity to develop novel solutions to perceived organizational problems.

Question 10

Critical thinking

Answer 10

The ability to analyze and assess information to pinpoint problems or opportunities.

Question 11

Diversity

Answer 11

The blending of individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities to enhance a firm’s chances of success.

Question 12

Entrepreneur

Answer 12

A person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business.

Question 13

Entrepreneurship

Answer 13

The willingness to take risks to create and operate a business.

Question 14

Factors of production

Answer 14

Four basic inputs for effective economic operation: natural resources, capital, human resources, and entrepreneurship.

Question 15

Human resources

Answer 15

Production inputs consisting of anyone who works, including both the physical labour and the intellectual inputs contributed by workers.

Question 16

Natural resources

Answer 16

All production inputs that are useful in their natural states, including agricultural land, building sites, forests, and mineral deposits.

Question 17

Nearshoring

Answer 17

The outsourcing of production or services to locations near a firm’s home base.

Question 18

Not-for-profit organizations

Answer 18

Organizations whose primary aims are public service, not returning a profit to their owners.

Question 19

Offshoring

Answer 19

The relocation of business processes to lower‐cost locations overseas.

Question 20

Outsourcing

Answer 20

Using outside vendors to produce goods or fulfill services and functions that were previously handled in‐house or in‐country.

Question 21

Private enterprise system

Answer 21

An economic system that rewards firms for their ability to identify and serve the needs and demands of customers.

Question 22

Private property

Answer 22

The most basic freedom under the private enterprise system; the right to own, use, buy, sell, and hand down land, buildings, machinery, equipment, patents, individual possessions, and various intangible kinds of property.

Question 23

Profits

Answer 23

Rewards for businesspeople who take the risks involved in offering goods and services to customers.

Question 24

Relationship era

Answer 24

The business era where firms seek to actively promote customer loyalty by carefully managing every interaction.

Question 25

Relationship management

Answer 25

The collection of activities that build and maintain ongoing, mutually beneficial ties with customers and other parties.

Question 26

Social era

Answer 26

The business era in which firms seek ways to connect and interact with customers using technology.

Question 27

Strategic alliance

Answer 27

A partnership formed to create a competitive advantage for the businesses involved; in international business, a business strategy in which a company finds a partner in the country where it wants to do business.

Question 28

Transaction management

Answer 28

Building and promoting products in the hope that enough customers will buy them to cover costs and earn profits.

Question 29

Vision

Answer 29

The ability to perceive marketplace needs and what an organization must do to satisfy them.