Exam 2: The Environment of Business

When Molson merged with Adolph Coors, this was an example of a reverse merger. a conglomerate merger. a vertical merger. a poison pill. a horizontal merger.

Which of the following would be excluded from the GDP of Canada? A Canadian company produces and sells products in Brazil A U.S. company produces and sells products in Canada A Canadian company produces and sells products in Canada A Brazilian company produces and sells products in Canada it is not possible to tell given the information that is provided

The principle of ________ states that exchange rates are set so that the prices of similar products in different countries are about the same. nominal GDP gross national product consumer price index equal prices purchasing power parity

Which of the following best describes the term gross national product? Total quantity of goods and services produced by an economic system Total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located Total value of all goods and services produced within a given period by a national economy through domestic factors of production Total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system Conditions of the economic system in which an organization operates

Ted has not worked in 5 years and has given up looking for work. He is considered unemployed.

If Toyota Motors purchased Ruscombe Muffler, a small retail muffler business, the purchase would be a horizontal merger. a conglomerate merger. a spinoff. a vertical merger. a divestiture.

What effect do higher interest rates have on consumer spending? Consumer spending increases as people try to quickly buy goods before rates go even higher Consumer spending decreases immediately, but then rises sharply after consumers get used to the new higher interest rates Consumer spending is not impacted by changes in interest rates Consumer spending decreases It is not possible to tell from the information given

In 2012, the Canadian private sector accounted for about _____ percent of R&D spending, the government accounted for about _____percent, and universities accounted for about ____ percent. 25; 35; 40 10; 40; 50 52; 10; 38 25; 30; 45 78; 15; 7

Marquand says: Information technology has had its biggest impact on business in communication and access to data. With the networking and streamlined communication modalities now available to businesses, businesses can collaborate with each other as well as within a business at different locations with the greatest of ease. Businesses also have access to a greater range of information and at a greater speed than ever before. And with this information being constantly updated, businesses now have the ability to plan in response to market conditions with much greater efficiency than before. Stevenson responds: Information is important, but what's most important is how that information is used. And there is no more direct way that information technology has helped businesses than the ability to sell directly. Selling online has opened up entirely new markets that allow businesses to make greater profits, with greater efficiency, than ever before. Many businesses, such as Amazon, have been able to use online selling exclusively to dramatic effect: without having to spend money on bricks-and-mortar storefronts, they can make billions in profits selling products at low prices. Which of the following, if true, would best support Stevenson's position? In general, the more that information technology is used by businesses, the better they perform. Businesses that exclusively sell online have been the fastest-growing. The most successful businesses are those that make use of information technology. Many more businesses sell their products over the internet now than in the past. Easily packaged imperishable consumer goods are those that are best suited to being sold over the internet.

The primary objective of an ESOP is to keep management from making bad decisions. protect against takeovers. prevent worker strikes. provide workers with financial security. motivate workers to work harder.

Some industries are relatively easy to enter, but automobile manufacturing is not because the market is saturated. it is very capital-intensive. it is a foreign market. it is too labour intensive. none of these are correct.

Mary is temporarily out of work while she is looking for a new job. She is experiencing frictional unemployment.

The government controls the size of the money supply through ________ policies. revenue monetary inflation economic fiscal

The ________ is a measure of the prices of a typical "basket of products" purchased by consumers. consumer price index national debt balance of trade gross national product real GDP

What is business process management?

If Canada fell into a depression, the Bank of Canada would most likely raise interest rates. leave interest rates alone. lower interest rates. it is not possible to tell with the information given. increase gasoline taxes.

________ is the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or resources. Enterprise management Outsourcing Alliance Disruption Core competency

Describe three advantages of outsourcing.

Canada is a usually a creditor nation, while the U.S. is a consistent debtor nation.

What are the pros and cons of prolonged economic stability?