Exam 2: The Environment of Business

Agricultural production has ________ because ________. grown; we have increased total output in that sector increased; Canada imports more agricultural products declined; fewer Canadians are working in agriculture remained unchanged; there have been relatively few changes in agricultural technology increased; more people are involved in farming

A hostile takeover occurs when one organization buys enough of the shares of another company to take control of the company even though that company may be opposed to the takeover.

The economy in the African nation Sponeto has been stagnant for a long time. The government and central bank of Sponeto have been considering options for what can be done to help stimulate investment and growth in the economy. Many in the Sponeto government agree that increasing the money supply to the nation's economy would be of significant help to the country. The national bank's reserve, however, is short on the funds needed, and suggests asking for them from the International Monetary Fund (IMF). Which of the following, if true, would strengthen the case for this course of action? The IMF has been known to force donor countries to drop tariffs put in place to protect domestic industries. The IMF has been known to force donor countries to privatize national companies. The IMF contributes money as well as financial advice to help countries with economies suffering from balance-of-payment problems. IMF loans typically come with many conditions attached that may result in increased poverty in the donor country. A number of developing countries have suffered financial disasters from following IMF advice.

With regard to GDP, GNP, and GPI, which of the following is correct? The profits earned by a Canadian company abroad are included in GDP, but not in GNP. Profits earned by foreign firms in Canada are included in GNP. GDP and GPI both increased as a result of the BP oil spill in the Gulf of Mexico. GDP has been increasing for many years, but GPI has been decreasing since the 1970s. GNP, GDP, and GPI all measure essentially the same thing.

An increase in tax rates is an example of ______ policy, while the government influencing banks to lend more to consumers is an example of ______ policy. GDP; GNP fiscal; monetary GNP; GDP monetary; fiscal none of these

Flavor Foods runs The Hungry Cow, a chain of fast food restaurants located all over the country. The chain has a loyal customer base and is well-known for its signature dishes like the Big Bite Burger, Springy Fries, and the Orange Float. The company is faced with a critical decision: Should it expand its operations into China? Which of the following, if true, would weaken the argument for competing in the Chinese market? An American fast food chain found that the time to recoup its investments in China was greater under the franchise model as opposed to the corporate chain store model. Chinese government policies can impose lengthy delays on businesses seeking food sale licenses. Studies show that modern Chinese consumers are more likely than previous generations to dine outside the home. When choosing a restaurant, Chinese consumers seek benefits beyond simple food quality. Expanding into every market within China would require more resources than The Hungry Cow has at its disposal.

Sales had been low at Stephen's Home Office Supplies for several months, but then business starting picking up again. Stephen's business went through which two phases of the business cycle? Recession and trough Peak and recession Trough and recovery Recovery and peak Any of these answers could be correct

Product life cycles are longer than they were 20 years ago because products have become more complex.

List the five dimensions of the external environment of business organizations.

A ________ balance of trade results when a country exports more than it imports. depressed negative real nominal positive

A poison pill is generally used in hostile takeovers to ensure that outsiders can't get any shares of stock.

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

The socio-cultural environment includes things like attitudes and values, but not demographic factors because the latter cannot easily be changed.

Which of the following is the best description of outsourcing? Any activity that adds value to some input by transforming it into an output for an internal or external customer An approach by which firms move away from department-oriented organization and toward process-oriented team structures that cut across old departmental boundaries The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials and resources The strategy of using the internet and word-of-mouth marketing to spread product information The strategy of owning the means by which an organization produces goods or services

GNP is the total value of all the goods and services produced by an economic system during a five-year period.

Deflation refers to a period of falling prices. the occurrence of price increases throughout the economic system. the condition in an economic system in which the amount of money available is greater than the amount of goods produced. the measure of prices in urban areas. the amount of government spending greater than the taxes collected in one year.

________ is GDP measured in current dollars with all components valued at current prices. Per capita GDP Net GDP Adjusted GDP Nominal GDP Real GDP

How is a vertical merger different than a horizontal merger?

A computer programmer who has just quit her job but who will find a new one soon is an example of ________ unemployment. seasonal frictional cyclical structural none of these

The business cycle consists of four phases: peak, recession, trough, and recovery.