Exam 2: The Environment of Business

A(n) ________ is a merger of two firms that have previously had a buyer-seller relationship. hostile takeover conglomerate merger friendly takeover vertical merger enterprise merger

Nominal GDP is more important than real GDP.

How does cyclical unemployment differ from frictional unemployment?

GNP is the 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.

Which statement is true with regard to the standard of living? It is dependent on the size of the city in which one lives. It is comparable for every citizen in every country. It is the amount and quality of goods and services that people can buy with their money. It is improved when high-end stores stock expensive merchandise. It is unaffected by business productivity.

How does GNP differ from GDP? Give an example of a product that would be included in Canada's GNP, but not its GDP.

R&D spending in Canada in 2011 totalled about ________ billion. $2 $6 $10 $16 $30

What is the difference between pure and applied R & D?

How does the national debt affect economic growth?

Why should companies always be on the lookout for technological breakthroughs?

Which of the following statements about inflation is correct? Inflation increases the purchasing power of consumer dollars. The consumer price index is one way to measure inflation. Inflation occurs when people have more money to spend as the quantity of goods available increases. Inflation occurs when the amount of money taken out of the economy exceeds the amount of money put into the economy. Inflation and deflation are really almost synonymous in practice.

How is the effectiveness of the government's attempts to manage Canada's economy measured? Briefly explain each tool.

In 2011, Canada had a trade deficit of approximately $5 billion.

If Shirley's Subs Inc. purchased Tony's Car Repair Inc., this would be ________. a horizontal merger a conglomerate merger a spinoff a vertical merger a divestiture

In the past, organizational boundaries were fairly clear-cut and easy to identify, but they have now become much more complex.

Why are customer preferences and tastes important to business?

Define the term unemployment.

What is meant by the term core competencies?

When the Organic Trade Association partnered with Free Range Graphics to produce a 5-minute online spoof of the latest Star Wars movie, this was an example of a strategic alliance. viral marketing. outsourcing. business process management. none of these.

How might the productivity of a company that is located in an island nation (e.g., Madagascar) be negatively affected?