AFM 132 Questions and
Correct Answers
EQ (Emotional Quotient, also know as emotional intelligence)
Ans Focuses on the strength of certain soft skills, and involves developing greater self-
awareness and self-control, and developing the ability to empathize and see a variety of
perspectives.
Intrapreneurship
Ans Entrepreneurial activity within a corporate setting, where one is able to help grow their
company by being creative to evolve processes or launch new products/services using the
company's existing resources and reputation.
Sustainability
Ans Business practices that leave a positive impact on the environment to protect the world
for future generations.
Balance of trade
Ans The relationship between importing and exporting
,Favourable balance of trade (trade surplus)
Ans When exports are greater than imports.
Unfavourable balance of trade (trade deficit)
Ans When imports are greater than exports.
Business
Ans An activity that you intend to carry on for profit (e.g., providing goods and services).
Comparative advantage
Ans Countries should sell (export) what they can produce most efficiently, and buy (import)
when they cannot.
Contract manufacturing
Ans Involves finding a foreign manufacturer to make your product and then have your own
brand name or trademark attached. Also known as outsourcing.
Corporation
,Ans 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
Ans A company owned by the federal or provincial government (also referred to as publicly
owned)
Embargo
Ans A ban on the import or export of specific products.
Exporting
Ans The sale of goods and services to another country.
Foreign direct investment (FDI)
Ans Buying permanent property (or a business) and operating in a foreign country.
Foreign subsidiary
Ans A company that is owned by a parent company located in another country.
, Franchising
Ans 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
Ans Where the market determines what goods and services to produce and who gets them.
Free trade
Ans Where goods and services can be traded between countries without any political or
economic obstruction.
Importing
Ans The purchase of goods and services from another country.
Import quota
Ans A limit on the quantity of products that a country imports.
Joint venture
Correct Answers
EQ (Emotional Quotient, also know as emotional intelligence)
Ans Focuses on the strength of certain soft skills, and involves developing greater self-
awareness and self-control, and developing the ability to empathize and see a variety of
perspectives.
Intrapreneurship
Ans Entrepreneurial activity within a corporate setting, where one is able to help grow their
company by being creative to evolve processes or launch new products/services using the
company's existing resources and reputation.
Sustainability
Ans Business practices that leave a positive impact on the environment to protect the world
for future generations.
Balance of trade
Ans The relationship between importing and exporting
,Favourable balance of trade (trade surplus)
Ans When exports are greater than imports.
Unfavourable balance of trade (trade deficit)
Ans When imports are greater than exports.
Business
Ans An activity that you intend to carry on for profit (e.g., providing goods and services).
Comparative advantage
Ans Countries should sell (export) what they can produce most efficiently, and buy (import)
when they cannot.
Contract manufacturing
Ans Involves finding a foreign manufacturer to make your product and then have your own
brand name or trademark attached. Also known as outsourcing.
Corporation
,Ans 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
Ans A company owned by the federal or provincial government (also referred to as publicly
owned)
Embargo
Ans A ban on the import or export of specific products.
Exporting
Ans The sale of goods and services to another country.
Foreign direct investment (FDI)
Ans Buying permanent property (or a business) and operating in a foreign country.
Foreign subsidiary
Ans A company that is owned by a parent company located in another country.
, Franchising
Ans 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
Ans Where the market determines what goods and services to produce and who gets them.
Free trade
Ans Where goods and services can be traded between countries without any political or
economic obstruction.
Importing
Ans The purchase of goods and services from another country.
Import quota
Ans A limit on the quantity of products that a country imports.
Joint venture
