Discuss about surplus and shortage with respect to demand and supply

in Canadian market economy (100 words with examples)

- In a market economy like Canada, the interaction between demand and

supply determines the prices and quantities of goods and services
produced and consumed.
- When the quantity of a good or service supplied exceeds the quantity
demanded at a given price, a surplus occurs. This can lead to lower prices
and excess inventory, which can be costly for producers.
- On the other hand, when the quantity demanded exceeds the quantity
supplied at a given price, a shortage occurs. This can lead to higher prices
and unmet demand, which can be frustrating for consumers.
- For example, if the demand for a certain type of car increases, but the
supply remains the same, the price of the car will likely increase due to the
shortage. Conversely, if the supply of a certain type of fruit exceeds the
demand, the price of the fruit may decrease due to the surplus.

Compare GDP and GNP (100 words with examples)

- Gross Domestic Product (GDP) and Gross National Product (GNP) are
both measures used to assess the economic performance of a country.
- GDP refers to the total value of all goods and services produced within a
country's borders, regardless of the nationality of the factors of production.
- GNP, on the other hand, measures the total value of all goods and services
produced by a country's residents, regardless of where they are located.
- For example, if a Canadian company produces goods in the United States,
the value of those goods would be included in the U.S. GDP but not in
Canada's GDP. However, it would be included in Canada's GNP since the
company is Canadian. Conversely, if a foreign company produces goods
within Canada, the value of those goods would be included in Canada's
GDP but not in its GNP.
- In summary, GDP focuses on production within a country's borders, while
GNP focuses on production by a country's residents, regardless of location.

Expound of the factors used to assess ethical behaviour (100 words

with examples)

- Assessing ethical behavior in organizations is a complex process that

involves evaluating various factors.
 - Three general factors that are important in causing individuals to behave in
unethical ways are - pressure, opportunity, and rationalization.
1. Pressure refers to the employee having some problem that cannot be
solved through legitimate means.
2. Opportunity refers to the employee using his or her position in the
organization to secretly solve the problem.
3. Rationalization refers to the employee seeing him- or herself as
basically an ethical person caught up in an unfortunate situation.

- Other factors that can in uence ethical behavior include corporate culture,
leadership, and values.
- For example, a company that prioritizes ethical sourcing and monitors
factories to ensure good working conditions for employees is more likely to
promote ethical behavior among its employees.

How is sole proprietorship different from partnership? When one has

limited capital, what kind of new business should be chosen and why?
(100 words with examples)

- A sole proprietorship is a business owned and operated by one person,

while a partnership is established when two or more individuals agree to
combine their nancial, managerial, and technical abilities to operate a
business for pro t.
- In a sole proprietorship, the owner has complete control over decision-
making and assumes unlimited liability for the business's debts.
- In a partnership, decision-making is shared among the partners, and each
partner is personally liable for the partnership's debts.
- When one has limited capital, it may be more suitable to choose a sole
proprietorship. This is because a sole proprietorship allows for greater
exibility and control over the business, and it typically requires less initial
capital compared to a partnership.
- For example, starting a small online retail business or a freelance
consulting service as a sole proprietorship may be more feasible with
limited capital.

Mention the economic systems around the world. Under which category
does the canadian economy fall? Justify (100 words with examples)
fl
fi
fi
fl
 - Economic systems around the world can be broadly categorized into three
main types: command economies, market economies, and mixed market
economies.
- In command economies, the government controls all or most of the factors
of production.
- Market economies, based on capitalism, involve individuals and
businesses controlling the factors of production and exchanging them
through markets.
- Mixed market economies, which dominate most countries today, combine
elements of both command and market systems.
- The Canadian economy falls under the category of a mixed market
economy.
- While it is primarily based on market principles, with individuals and
businesses controlling the factors of production, the government also plays
a signi cant role in regulating and in uencing the economy.
- The Canadian government provides essential services, acts as a regulator,
and implements policies to support economic growth and stability.
- For example, Canada has a universal healthcare system and regulations to
protect workers' rights. These interventions demonstrate the mixed nature
of the Canadian economy.

With speci c reference to the Canadian Business Environment, name

and explain in detail any three factors of production (100-150 words with
examples)

In the Canadian business environment, three factors of production are labor,

capital, and natural resources.

1. Labor:
- Labor refers to the human effort, skills, and knowledge used in the
production process. It includes both physical and mental work.
- Canada has a highly skilled and educated labor force, which contributes to
the country's economic growth.
- For example, in the technology sector, skilled programmers and engineers
are essential for developing innovative software and hardware solutions.

2. Capital:
- Capital represents the nancial resources, tools, equipment, and
infrastructure used in production.
- Access to capital is crucial for businesses to invest in new technologies,
expand operations, and hire more employees.
fi
fi
fi
fl
- For instance, a manufacturing company may require capital to purchase
advanced machinery to increase production ef ciency.

3. Natural Resources:
- Canada is rich in natural resources, including minerals, forests, oil, and
gas. These resources play a signi cant role in the country's economy.
- Industries such as mining, forestry, and energy extraction heavily rely on
natural resources.
- For example, the forestry industry utilizes Canada's vast forests to produce
timber and wood products, contributing to economic growth and
employment opportunities.

These three factors of production, labor, capital, and natural resources, are
essential for the Canadian business environment, driving economic activity
and supporting various industries.

WTO and it's 3 goals (100 words with examples)

The World Trade Organization (WTO) is an international organization that

aims to promote global trade and ensure the smooth ow of goods and
services across borders. The WTO has three main goals:

1. Facilitating Trade:
- The WTO works to reduce trade barriers, such as tariffs and quotas, and
promote the liberalization of trade.
- It aims to create a more open and predictable trading system.
- For example, the WTO's Trade Facilitation Agreement streamlines
customs procedures and reduces red tape, making it easier for
businesses to engage in international trade.

2. Ensuring Fair Trade:

- The WTO seeks to establish and enforce rules and regulations that
promote fair and non-discriminatory trade practices.
- It aims to prevent unfair trade practices, such as dumping and subsidies,
that distort global markets.
- For instance, the WTO's Anti-Dumping Agreement sets rules to prevent the
sale of goods at unfairly low prices to gain a competitive advantage.

3. Resolving Trade Disputes:

- The WTO provides a platform for member countries to resolve trade
disputes through its dispute settlement mechanism.
fi
fi
fl
- It aims to ensure that trade con icts are resolved in a fair and impartial
manner.
- For example, if a country believes that another country is violating WTO
rules, it can le a complaint and seek resolution through the WTO's dispute
settlement process.

These goals of the WTO contribute to fostering a more open, fair, and
predictable global trading system, bene ting businesses and economies
worldwide.

Controlling process of management (100 words with examples)

- The controlling process of management involves monitoring and evaluating

the performance of individuals, teams, and the organization as a whole to
ensure that goals are being achieved.
- It includes setting performance standards, measuring actual performance,
comparing it to the standards, and taking corrective actions if necessary.
- For example, in a manufacturing company, controlling may involve
monitoring production output, quality control measures, and adherence to
safety protocols.
- If the actual production falls below the set standards, corrective actions
such as adjusting production processes or providing additional training may
be taken to improve performance.
- In a retail setting, controlling may involve monitoring sales gures,
inventory levels, and customer satisfaction.
- If sales are below expectations, adjustments to marketing strategies or
inventory management may be made to improve performance.

Centralization and Decentralization De ne and explain wrt to span of

control and delegation (100 words with examples)

- Centralization and decentralization refer to the distribution of decision-

making authority within an organization.
- In a centralized organization, decision-making authority is concentrated at
the top levels of management.
- Top managers retain most of the decision-making rights, and lower-level
managers have limited autonomy.
- This structure is often seen in organizations that require strict control and
standardization.
- For example, all McDonald's restaurants must follow precise steps in
buying products and preparing menu items, with most decisions being
made at the corporate level.
fi
fl
fi
fi
fi
- On the other hand, in a decentralized organization, decision-making
authority is delegated to managers at lower levels in the hierarchy.
- This structure allows for more autonomy and responsiveness to the
environment.
- FedEx is an example of a decentralized organization that promotes
innovation by encouraging managers to question, challenge, and develop
new ideas.

Span of control refers to the number of subordinates that a manager

directly supervises.

- In a centralized organization, the span of control is typically narrower, as

top managers have more direct control over decision-making.
- In a decentralized organization, the span of control is wider, as lower-level
managers are allowed to make signi cant decisions.

Delegation is the process of assigning tasks and authority to subordinates.

- In a centralized organization, delegation is limited, and most decisions

must be approved by upper management.
- In a decentralized organization, delegation is more extensive, as lower-
level managers have the authority to make decisions within their areas of
responsibility.

Overall, the choice between centralization and decentralization depends on

the organization's goals, environment, and desired level of autonomy for
managers at different levels.

Discuss the different management levels (100 words with examples)

- There are three basic levels of management - top, middle, and rst-line
management.

- Top managers are responsible for the overall performance and

effectiveness of the rm.
- They set general policies, formulate strategies, and approve all signi cant
decisions.
- Examples of top managers include the president, vice-president, chief
executive of cer (CEO), and chief nancial of cer (CFO).
fi
fi
fi
fi
fi
fi
fi
- Middle managers are responsible for implementing the strategies of and
working toward the goals set by top managers.
- They oversee the work of lower-level managers and are responsible for
coordinating activities across different departments.
- Examples of middle managers include plant managers, operations
managers, and regional sales managers.

- First-line managers are responsible for supervising the work of employees

who report to them.
- They ensure that employees understand and are properly trained in
company policies and procedures.
- Examples of rst-line managers include supervisors, of ce managers,
project managers, group leaders, and sales managers.

The authority of managers and the complexity of their duties increase as we

move up the pyramid. In most rms, there are more rst-line managers than
middle managers and more middle managers than top managers.

Explain tariff in short (100 words with examples)

- A tariff is a tax imposed on imported products by a government.

- It directly affects the prices of imported goods, making them more
expensive for consumers.
- Tariffs serve multiple purposes, including raising revenue for the
government and protecting domestic industries by making foreign products
less competitive.
- For example, Italy imposes high tariffs on imported electronic goods, which
increases their prices and makes them less attractive to consumers
compared to domestic alternatives.
- Similarly, the Canadian government announced a reduction in tariffs on
sporting goods and baby clothes, resulting in potential annual savings of
$76 million for consumers.
- Tariffs can be used as a trade barrier to discourage imports and protect
domestic industries. However, they can also lead to trade disputes and
hinder international trade cooperation.
fi
fi
fi
fi