Deck 1: The Dynamic Business Environment

Question 1

The chance of loss is known as _.

A)stakeholder
B)bankruptcy
C)risk
D)small business

Answer 1

C

Question 2

To be successful in today's markets,businesses must:

A)focus their resources on understanding economic cycles.
B)spend more money on marketing and less on production.
C)delight customers with a quality product at a good price and outstanding service.
D)provide the greatest variety of products to consumers.

Answer 2

C

Question 3

A(n)is a person who assumes the risk of starting and managing a business.

A)stakeholder
B)entrepreneur
C)manager
D)government official

Answer 3

B

Question 4

High tax rates tend to:

A)discourage entrepreneurship.
B)reduce the amount of money created by the government.
C)promote economic development.
D)make a nation's currency tradable.

Question 5

As a factor of production,the term capital includes:

A)tools,machinery,and buildings.
B)stocks and bonds issued by corporations.
C)natural resources such as land and water.
D)services provided by the government that enable businesses to be more productive.

Question 6

Businesses that produce and sell tangible products such as appliances,furniture,and clothing are part of the:

A)manufacturing sector.
B)knowledge-based sector.
C)production sector.
D)service sector.

Question 7

Recently,Marie received a telephone call from her credit card company asking if she had just placed a large off-shore wager using her credit card.Marie indicated that she had not.The illegal use of Marie's credit card probably happened because Marie:

A)had just been approved for a new credit card
B)had not used her credit card for many months
C)has made frequent on-line purchases,and in the course of completing one of these,an identity theft occurred
D)had loaned her credit card to a personal friend

Question 8

Which of the following predictions about the impact of e-commerce on traditional businesses is likely to be most accurate?

A)Traditional firms will enter the e-commerce market.
B)E-commerce will prove to be very successful in competing against traditional firms in B2C markets,but will have much less success in B2B markets.
C)E-commerce will have little impact on most traditional businesses,because only a few types of products can be sold effectively over the Internet.
D)Traditional businesses will cease to exist within twenty years.

Question 9

Companies that sell goods to consumers over the Internet are engaging in:

A)B2B transactions.
B)Y2K transactions.
C)B2C transactions.
D)IOU transactions.

Question 10

Johnsonville is a small and poor nation,but its current president has a genuine desire to create more wealth for Johnsonville's citizens.The president has received recommendations from several of her advisors.Which of the following recommendations is likely to create the most wealth for Johnsonville?

A)establish barriers to trade to protect Johnsonville businesses from foreign competition.
B)establish a business environment that promotes and rewards entrepreneurship.
C)acquire more land by invading a neighboring country that is even poorer and weaker than Johnsonville.
D)use foreign aid from other nations to purchase more tools and machinery.

Question 11

In recent years,the fastest growing firms are in the sector.

A)agricultural
B)telecommunications
C)service
D)manufacturing

Question 12

Offshoring entails:

A)being controlled by a board of directors.
B)sourcing parts outside of the country.
C)having a limited life.
D)assigning various functions to outside organizations.

Question 13

When businesses sell to other businesses over the Internet,these transactions are known as:

A)B2C transactions.
B)B2B transactions.
C)intermediate e-commerce transactions.
D)e-wholesale transactions.

Question 14

When might offshoring backfire?

A)If the cost of the function is reduced by at least 50%.
B)If the procedures followed in managing the outsourced function remain the same.
C)When all of the current suppliers to the outsourced function are retained.
D)If the overseas company uses the information to produce its own competitive product.

Question 15

A loss occurs when a business's expenses are greater than its:

A)debit
B)profit
C)revenue
D)credits

Question 16

Customers,employees,stockholders and,suppliers are known as creditors,and others who stand to gain or lose by the policies and activities of a business represent the firm's:

A)economic environment.
B)market makers.
C)stakeholders.
D)social mentors.

Question 17

When looking at the global environment,one recent change has been:

A)the growth of global competition
B)disenfranchisement
C)fast response theory
D)centralized management

Question 18

All of the following are factors of production except:

A)capital.
B)land.
C)money.
D)labour.

Question 19

Those born between 1995 and 2009 are known as what?

A)Generation Z.
B)Generation Y.
C)baby boomers.
D)Generation X.

Question 20

According to statistics Canada,by 2036 what proportion of the population will be Generation Z?

A)2/3
B)1/2
C)1/3
D)1/4

Question 21

Experts say that today's post-secondary graduates will likely hold jobs in their lifetime.

A)seven
B)twelve
C)one
D)three

Question 22

To be effective,empowerment will require lower-level workers to:

A)have written policies regulating each aspect of their work.
B)have more training.
C)receive less training.
D)accept less responsibility and lower wages.

Question 23

Nadine has started up a new printing business.The printers,computers,and copying machines she has leased are examples of:

A)natural resources.
B)capital.
C)current assets.
D)intangible resources.

Question 24

The loss of farm workers over the last century is what?

A)an indication of growing productivity
B)going to reverse in the future
C)a symptom of global competition
D)a negative sign

Question 25

Often goods cost more in one country than another because of what?

A)the Internet
B)higher taxes and stricter government regulations
C)new stakeholders
D)profits

Question 26

Certain sectors in the Canadian economy have experienced a significant decline in employment.Which of the following best explains this job loss in specific industries?

A)There has been a decline in the productivity of labour in these industries.
B)Workers lost these jobs because worker productivity in the sector increased.
C)Government regulations have eliminated profit opportunities in these industries.
D)The Canadian economy cannot compete in the global environment.

Question 27

One economic environmental factor of great importance to many businesses is:

A)the movement of the Canadian dollar.
B)entrepreneurship.
C)the actions of non-profits.
D)stakeholder activities.

Question 28

The statistical study of human population to learn its size,density,and characteristics is called:

A)econometrics
B)geometry
C)psychographics
D)demography

Question 29

Health care,legal advice,transportation,and other intangible products are provided by the:

A)industrial sector
B)service sector
C)global sector
D)high-wage sector

Question 30

Kisa is a production manager at Western Widgets,Inc. ,a manufacturing corporation that sells its products worldwide.Thanks in part to Kisa's efforts,Western Widgets has dramatically improved the quality of its products.Kisa believes that the high quality of its output will give Western Widgets a competitive edge.Kisa's view is:

A)not wrong,but it is too limited.Consumers demand high quality goods,along with competitive prices and outstanding service.
B)incorrect.The typical consumer is more interested in price than quality.
C)not exactly correct.The best strategy for market success is to develop new products quickly and get them to the market before the competition,even if quality suffers a bit.
D)correct.Producing high quality goods is the key to success in the competitive marketplace.

Question 31

Those individuals born in Canada between 1947 and 1966 are referred to as:

A)baby boomers.
B)echoes.
C)Generation X.
D)diversity workers.

Question 32

The two factors of production that seem to contribute the most to making countries rich are:

A)entrepreneurship and knowledge.
B)land and labour.
C)land and capital.
D)entrepreneurship and labour.

Question 33

Birth-rates have declined in Canada since when?

A)Mid-1970s
B)Mid-1950s
C)Mid-1960s
D)Mid-1980s

Question 34

Jill is looking into the possibility of opening up a for-profit seniors centre in her community.However,she is concerned about the long-term prospects for such a business.Jill believes the future of her centre will depend on the growth of the seniors population.This concern illustrates how businesses can be affected by:

A)holographic trends.
B)demographic trends.
C)psychometric trend.
D)econometric trends.

Question 35

Which of the following factors of production is the most important contributing factor to increasing a nation's wealth?

A)labour.
B)capital.
C)natural resources.
D)entrepreneurship.

Question 36

The example of Don Glenn,a farmer using his computer to compare data from the previous year's harvest with satellite photos of his farm to know which crops are flourishing is an example of what?

A)the differences in wage rates between rural and urban dwellers
B)the importance of land as a factor of production
C)the benefits of technology
D)managers in Canada motivating employees with large pay raises

Question 37

A retailer can store a lot of customer records that include their name,address,and telephone numbers and past purchases in a database.This allows the retailer to only stock what the customers in their area want.This saves the retailer's money in:

A)wages.
B)accounting costs.
C)benefits.
D)financing.

Question 38

A business owner has to find the right balance between risk and _.

A)profit
B)time
C)speculation
D)revenue

Question 39

The book Boom Bust & Echo economist David Foot suggests that explains about two-thirds of everything,including what products will be in demand in five years.

A)E-commerce
B)knowledge
C)capital
D)demographics

Question 40

Some areas of the service sector will grow rapidly,while other areas of the service sector may _.

A)decline
B)not grow as quickly as manufacturing jobs
C)not grow as quickly as agricultural jobs
D)have slower growth

Question 41

Machines,tools,buildings and other means of manufacturing are called:

A)machinery.
B)equipment.
C)capital goods.
D)labour.

Question 42

Non-profit organizations:

A)last for only short periods of time as their objective is not to create profits for their owners.
B)are run by the government.
C)have a hard time hiring employees as they have no means of paying them.
D)can provide an opportunity for individuals to address social issues.

Question 43

The Canadian population has been for several decades.

A)aging
B)growing poorer
C)becoming more homogeneous
D)declining

Question 44

In Canada,about how many people work for the country's charities and non-profits?

A)10 million
B)5 million
C)1 million
D)2 million

Question 45

The resources that contribute to the creation of wealth are known as:

A)factors of production.
B)production technologies.
C)production aggregates.
D)production coefficients.

Question 46

Appliance repair firms,tax consultants,law firms,and insurance companies are all business firms that are part of the:

A)production sector.
B)service sector.
C)neo-industrial sector.
D)management sector.

Question 47

In countries where businesses are government owned:

A)profits tend to be higher.
B)there is less incentive to work hard.
C)the right amount of each good is produced.
D)the quality of goods is high but profits are low.

Question 48

Today,the leading firms are in:

A)agricultural
B)services
C)auto
D)production

Question 49

Few issues have captured the attention of the international business community more than what?

A)management change
B)profits
C)demography
D)climate change

Question 50

Globalization has greatly _.

A)hurt consumers
B)reduced the number of jobs worldwide
C)improved living standards around the world
D)declined

Question 51

Mark recently graduated with honours from his college.He has bragged to his friends that his fine academic performance has prepared him so well for a successful career that he can forget school or training in his future.In evaluating the workplace of the future,Mark is:

A)over confident.Global competition means that flexibility,finding out where jobs are being created,and moving when appropriate are important.
B)exactly right.His past performance should carry him to success.
C)completely wrong.Studies show that a college education has little to do with success.
D)probably right.Specialized training today is a key to continued success in the future.

Question 52

is the chance an entrepreneur will lose the time and money invested in a business that proves to be unprofitable.

A)Depreciation
B)Fallibility
C)Redundancy
D)Risk

Question 53

The service producing sector employs almost ___% of the working population

A)78
B)68
C)58
D)48

Question 54

By 2031,seniors will account for nearly what percentage of the Canadian population?

A)2/3
B)1/4
C)1/2
D)1/3

Question 55

The total amount of money that businesses take in over a given period of time for selling goods and services is called _.

A)profit
B)revenue
C)retained earnings
D)loss

Question 56

Companies have gone from outsourcing jobs to offshoring what?

A)the purchase of inputs
B)research and development
C)stakeholders
D)profits

Question 57

Often in business,the greater the risk,the:

A)lower the value provided to society.
B)lower the expected revenues.
C)greater the potential reward.
D)greater the number of stakeholders.

Question 58

Which of the following is a factor of production?

A)money
B)bonds
C)service
D)knowledge

Question 59

An electronic storage file where firms keep customer information is known as a(n):

A)database.
B)MP3 file.
C)e-mail server.
D)management information system.

Question 60

In recent years,many manufacturing firms in Canada have laid off workers.The best explanation of this trend is that:

A)firms have been trying to weaken unions by reducing their reliance on labour.
B)workers in Canada have become less productive and are no longer able to compete in the global economy.
C)the economy has been in a prolonged recession/depression that has lasted more than a decade.
D)the rising Canadian dollar and increasing global competition.

Question 61

Employers provide tools and technology for their employees in order to:

A)encourage the private ownership of businesses.
B)improve their efficiency and productivity.
C)increase the cost of production and profitability.
D)to reduce corruption in business and eliminate scandals.

Question 62

Making a new type of automobile involves what?

A)high risk
B)profits
C)arbitrage
D)the service economy

Question 63

Insourcing can be found in what industry,according to the text?

A)Automotive sector.
B)Retailing.
C)Red Cross.
D)United Church of Canada.

Question 64

Empowerment requires that managers focus more on lower-level employees.

A)training,supporting,coaching,and motivating
B)simplifying the jobs of
C)controlling and correcting
D)directly supervising

Question 65

A business is any activity that provides goods and services while operating _.

A)with social goals
B)revenue
C)at a profit
D)machinery

Question 66

About what percentage of Canadians are employed in the manufacturing sector?

A)80
B)20
C)40
D)10

Question 67

For an entrepreneur to achieve success in the business world he has to be willing to take:

A)losses.
B)government assistance.
C)risks.
D)bribes.

Question 68

Successful businesses are keenly focused on their:

A)managers
B)customers
C)creditors
D)bureaucrats

Question 69

A business incurs a if its costs and expenses exceed its revenues.

A)dividend
B)loss
C)liability
D)debit

Question 70

In order to survive in the service economy,graduates must:

A)have a high school diploma
B)train for specific manufacturing jobs
C)remain flexible
D)take accounting courses

Question 71

Which is NOT a factor of production?

A)labour
B)capital
C)land
D)laws

Question 72

Technology affects people in:

A)information technology industries with the exception of agriculture.
B)primarily high income countries.
C)all industries.
D)most industries.

Question 73

About what percentage of Canadians are employed in the goods-producing sector?

A)625
B)22
C)42
D)12

Question 74

There are two ways to succeed in business.One way is to rise up through the ranks of a large company.What is the other way?

A)working for a small business.
B)starting a business.
C)working for a non-profit organization.
D)working for the government.

Question 75

The federal privacy law is known as what?

A)CITA
B)Statistics Canada
C)PIPEDA
D)SCEF

Question 76

Today's Canadian businesses require workers in industries that produce goods.

A)more
B)fewer
C)trained
D)Skilled

Question 77

As you consider the factors of production,which of them will be the most important contributing factor to increasing the nation's wealth?

A)capital.
B)land.
C)knowledge.
D)labour.

Question 78

Risk is the chance an entrepreneur takes of losing money and ___ on a business.

A)revenue
B)stakeholders
C)profit
D)time

Question 79

Quality of life refers to:

A)the amount of good and services people can buy.
B)the outsourcing of job functions.
C)addressing the needs of all stakeholders when making a business decision.
D)the general well-being of a society.

Question 80

Due to increased competition,many of the farms that existed 50 years ago have been replaced by what?

A)larger farms
B)the manufacturing sector
C)cities
D)the production sector