fundamentals of business ( university level) - Business Finance
1. List and define/describe the Factors of Production and pick a specific product that you use. Explain how the factors of production work together to make that product available.2. Define the laws of supply and demand.
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BUSINESS 1110 Individual Weekly Assignment
_______________________________________________________________________
The purpose of this assignment is to integrate the course material into basic understanding for students by
applying and analyzing business theories and topics, practicing business writing skills, develop or strengthen
student’s aptitude for personal reflection, increase student’s awareness of businesses in the media and to
provide an alternate evaluation method for those students who find test-taking difficult. This weekly
assignment is worth 40\% of your course grade.
OVERVIEW
On Moodle, you will find a tab for each week of the semester. On the tab for each week, you will find an
assignment link. In the assignment link, you will find topics that relate to the material that will be covered in
the chapter.
The assignment requires you to prepare a summary that includes three elements:
1. Personal interpretation/view of the topic;
2. Academic research or industry news articles to support and justify your views with intext citations;
3. Textbook connection to support and justify the theory behind the topic within text citations.
The assignments must be submitted on Moodle prior to the deadline.
Format Options
You can choose from the following formats to prepare your assignment in, however, throughout the semester
you will have to use a minimum of 4 different formats:
• Written report
• Presentation
• Video
• Letter
• Memo
• Annotated Bibliography
• Executive Summary
• Graphic Report
• Excel Report
• Blog
• Vlog
ASSIGNMENT INSTRUCTIONS
The following instructions must be fully met for the “followed instructions” marks.
• All submissions are to be uploaded on Moodle.
• All work must be cited using APA format for in text citation and include a bibliography/works cited
section.
• Assignment must include the three elements: personal thoughts/opinions, research justification and
textbook theoretical concept.
• Late assignments will receive a 0. (Moodle has a time stamp and will notify you if late) There are no
exceptions.
• Please save your document with the following naming convention FIRST NAME_LAST
NAME_Week#_ASSIGNMENT.
• Use spell and grammar check and ensure your writing level is at a university level for English grammar.
• Assignment needs to be professionally formatted.
MARKING CRITERIA
You will find the marking rubric on Moodle. Please review the marking outline to help you make sure you get
the mark you are hoping for.
Business Essentials
Ninth Canadian Edition
Chapter 1
Understanding the Canadian
Business System
Copyright © 2020 Pearson Canada Inc.
1-1
Learning Objectives (1 of 2)
• Define the nature of Canadian business
and identify its main goals.
• Describe different types of global economic
systems, according to the means by which
they control the factors of production
through input and output markets.
• Describe the interactions between
business and government in Canada.
Copyright © 2020 Pearson Canada Inc.
1-2
Learning Objectives (2 of 2)
• Show how demand and supply affect
resource distribution in Canada.
• Identify the elements of private enterprise
and explain the various degrees of
competition in the Canadian economic
system.
Copyright © 2020 Pearson Canada Inc.
1-3
The Idea of Business and Profit (LO 1-1)
• Businesses produce or
sell products in order to
make a profit
Profit
Revenues
• Non-profit Organizations
Expenses
– provide goods and services
but do not seek profit
▪ schools, hospitals
Copyright © 2020 Pearson Canada Inc.
1-4
Economic Systems Around the World (LO 1-2)
(1 of 7)
Human Resources
(Labour)
Entrepreneurs
Capital
Natural
Resources
The Factors of
Production
Resources used by firms to
create goods and services
Copyright © 2020 Pearson Canada Inc.
Information
Resources
1-5
Economic Systems Around the World (LO 1-2)
(2 of 7)
Market
Economies
Capitalism
Command
Economies
Mixed
Economy
Socialism
Copyright © 2020 Pearson Canada Inc.
Communism
1-6
Economic Systems Around the World (LO 1-2)
(3 of 7)
Command Economies
• Communism
– government owns and operates
all industries
– it makes resource distribution
decisions
• Socialism
– government owns and operates
critical industries (utilities and
major institutions)
– Individuals own non-critical
businesses
Copyright © 2020 Pearson Canada Inc.
1-7
Economic Systems Around the World (LO 1-2)
(4 of 7)
Market Economies
• Economic basis is supply and
demand
• Political basis is capitalism
• Ownership of the factors of production
is open
• Buyers and sellers have freedom of
choice
• The market is the mechanism for the
exchange of goods and services
Copyright © 2020 Pearson Canada Inc.
1-8
Economic Systems Around the World (LO 1-2)
(5 of 7)
• Input market
– firms buy
resources from
households
• Output market
– households
buy goods and
services from
firms
Circular flow in a market economy
Copyright © 2020 Pearson Canada Inc.
1-9
Economic Systems Around the World (LO 1-2)
(6 of 7)
• Capitalism
– Encourages
entrepreneurship and
the private ownership
of the factors of
production
– Encourages profit
making as an incentive
– Operates under the
concept of supply and
demand
Copyright © 2020 Pearson Canada Inc.
1 - 10
Economic Systems Around the World (LO 1-2)
(7 of 7)
• Mixed Market Economies
– combination of both command and market economies
– no country has a pure communist, socialist, or capitalist
system
• Privatization
– converting government firms into privately owned
companies
• Nationalization
– the conversion of private firms into government-owned
firms
• Deregulation
– reducing laws and government intervention
Copyright © 2020 Pearson Canada Inc.
1 - 11
Interactions Between Business and Government
(LO 1-3) (1 of 5)
Customer
Taxation Agent
Competitor
Regulator
Provider of
Incentives
Provider of
Essential
Services
Copyright © 2020 Pearson Canada Inc.
1 - 12
Interactions Between Business and Government
(LO 1-3) (2 of 5)
Government as Regulator
Regulates through administrative boards,
tribunals, and commissions
Promotes healthy competition between
businesses
Protects consumers
Achieves social goals
Protects the environment
Copyright © 2020 Pearson Canada Inc.
1 - 13
Interactions Between Business and Government
(LO 1-3) (3 of 5)
Government as Taxation Agent
Revenue Tax
Progressive
Revenue Tax
Regressive
Revenue Tax
Restrictive Tax
Copyright © 2020 Pearson Canada Inc.
1 - 14
Interactions Between Business and Government
(LO 1-3) (4 of 5)
Government as Provider of Incentives
Provides Aid and
Financial Assistance
Provides Incentives to
stimulate growth
(revenues and employment)
Copyright © 2020 Pearson Canada Inc.
1 - 15
Interactions Between Business and Government
(LO 1-3) (5 of 5)
• Government as Provider of Essential Services
– all three levels of government provide various services:
highways
postal service
money
education
health
services
military
sewer and
sanitation
emergency
services
Copyright © 2020 Pearson Canada Inc.
1 - 16
The Canadian Market Economy (LO 1-4)
Copyright © 2020 Pearson Canada Inc.
1 - 17
Supply and Demand (LO 1-4)
(1 of 2)
Dealing with a Shortage
A shortage drives
prices up
Copyright © 2020 Pearson Canada Inc.
1 - 18
Supply and Demand (LO 1-4)
(2 of 2)
Dealing with a Surplus
A surplus drives
prices down
Copyright © 2020 Pearson Canada Inc.
1 - 19
Private Enterprise and Competition (LO 1-5)
(1 of 7)
• Private enterprise occurs in a market economy
with little government restriction
• Under this system individuals
–
–
–
–
can own property
have freedom of choice
have the freedom to earn profits
have freedom to compete
Copyright © 2020 Pearson Canada Inc.
1 - 20
Private Enterprise and Competition (LO 1-5)
(2 of 7)
• Competition
– occurs when businesses vie for the same resources or
customers in a particular market or industry.
▪ motivates business to operate efficiently
▪ forces business to make products better or cheaper
Copyright © 2020 Pearson Canada Inc.
1 - 21
Private Enterprise and Competition (LO 1-5)
(3 of 7)
Copyright © 2020 Pearson Canada Inc.
1 - 22
Private Enterprise and Competition (LO 1-5)
(4 of 7)
Degrees of Competition
Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly
Copyright © 2020 Pearson Canada Inc.
1 - 23
Private Enterprise and Competition (LO 1-5)
(5 of 7)
• Perfect Competition
– many sellers; product is basically identical
– relatively easy to enter the industry
– individual firms have no control over price
• Monopolistic Competition
– few to many sellers; product is seen
as unique by some buyers (not all)
– differentiated brands have some
(minor) control over pricing
Copyright © 2020 Pearson Canada Inc.
1 - 24
Private Enterprise and Competition (LO 1-5)
(6 of 7)
• Oligopoly
–
–
–
–
a few large suppliers dominate
high barriers to entry
products are seen as similar
prices gravitate toward a common “market price”
• Monopoly
–
–
–
–
one producer and source of supply
unique product
complete control over price
no competitors
Copyright © 2020 Pearson Canada Inc.
1 - 25
Private Enterprise and Competition (LO 1-5)
(7 of 7)
Copyright © 2020 Pearson Canada Inc.
1 - 26
Quick-Check Questions (1 of 5)
1) If Drake is playing to a sold-out concert this Friday night
but tickets are still in high demand, concert-goers are
likely to buy tickets from ‘scalpers’ at prices considerably
higher than the original price. This situation can be
described as a:
A) shortage; in which quantity demanded exceeds quantity
supplied.
B) surplus; in which quantity demanded exceeds quantity
supplied.
C) shortage; in which quantity supplied exceeds quantity
demanded.
D) surplus; in which quantity supplied exceeds quantity
demanded.
Copyright © 2020 Pearson Canada Inc.
1 - 27
Quick-Check Answer (1 of 5)
1) If Drake is playing to a sold-out concert this Friday night
but tickets are still in high demand, concert-goers are
likely to buy tickets from ‘scalpers’ at prices considerably
higher than the original price. This situation can be
described as a:
A) shortage; in which quantity demanded exceeds
quantity supplied.
B) surplus; in which quantity demanded exceeds quantity
supplied.
C) shortage; in which quantity supplied exceeds quantity
demanded.
D) surplus; in which quantity supplied exceeds quantity
demanded.
Copyright © 2020 Pearson Canada Inc.
1 - 28
Quick-Check Questions (2 of 5)
2) The political basis for the free market economy is called
____________ which allows private ownership of the factors
of production and encourages entrepreneurship by offering
profits as an incentive.
A)
B)
C)
D)
Marxism
Capitalism
Consumerism
Socialism
Copyright © 2020 Pearson Canada Inc.
1 - 29
Quick-Check Answer (2 of 5)
2) The political basis for the free market economy is called
____________ which allows private ownership of the factors
of production and encourages entrepreneurship by offering
profits as an incentive.
A)
B)
C)
D)
Marxism
Capitalism
Consumerism
Socialism
Copyright © 2020 Pearson Canada Inc.
1 - 30
Quick-Check Questions (3 of 5)
3) The most important difference between command economies
and market economies is______.
A)
B)
C)
D)
access to human rights
who controls the factors of production
the government in power
freedom of the press
Copyright © 2020 Pearson Canada Inc.
1 - 31
Quick-Check Answer (3 of 5)
3) The most important difference between command economies
and market economies is______.
A)
B)
C)
D)
access to human rights
who controls the factors of production
the government in power
freedom of the press
Copyright © 2020 Pearson Canada Inc.
1 - 32
Quick-Check Questions (4 of 5)
4) The markets for laundry detergents, soft drinks and cars are
all dominated by just a few producers. In terms of competition
these markets are described by the term:
A)
B)
C)
D)
perfect competition
monopoly
oligopoly
pure competition
Copyright © 2020 Pearson Canada Inc.
1 - 33
Quick-Check Answer (4 of 5)
4) The markets for laundry detergents, soft drinks and cars are
all dominated by just a few producers. In terms of competition
these markets are described by the term:
A)
B)
C)
D)
perfect competition
monopoly
oligopoly
pure competition
Copyright © 2020 Pearson Canada Inc.
1 - 34
Quick-Check Questions (5 of 5)
5) Which of the following best describes the Canadian economic
system?
A)
B)
C)
D)
command system
mixed market economy
socialist system
market economy
Copyright © 2020 Pearson Canada Inc.
1 - 35
Quick-Check Answer (5 of 5)
5) Which of the following best describes the Canadian economic
system?
A)
B)
C)
D)
command system
mixed market economy
socialist system
market economy
Copyright © 2020 Pearson Canada Inc.
1 - 36
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