Deck 9: Section 3: The Leadership Challenge

Question 1

The government is a guardian of society by:

A)Collecting taxes from business, acting as charitable organizations, regulating the corporate environment, protecting the environment
B)Collecting taxes from business, acting as business owners, regulating the business sector and safeguarding Canadian interests in the global context
C)Collecting taxes from business, acting as business owners, mandating stricter gun laws, preparing ministries for legislation against cruelty to animals
D)Collecting taxes from business, acting in the best interests of the public, providing welfare, supporting small business with grants

Answer 1

B

Question 2

Explain the role of the Governor General

A)The holder of executive authority in Canada's government.This person typically plays an active administrative role and must sign bills before they become law.
B)The holder of executive authority in Canada's government.This person typically plays a passive administrative role and usually follows the advice of the prime minister, but he or she must sign bills before they become law
C)The holder of executive authority in Canada's government.This person typically plays a passive administrative role and usually follows the advice of the Queen, but he or she must sign bills before they become law
D)None of the above

Answer 2

B

Question 3

Why should government not play the role of guardian of business?

A)Promotes a political agenda, creates an uneven playing field, benefits only a few, creates dependency, contrary to free and open markets, undermines public confidence in politicians
B)Promotes a political agenda, creates an even playing field, benefits only a few, creates dependency, contrary to free and open markets, undermines public confidence in politicians
C)Promotes a political agenda, creates an even playing field, benefits the many, creates dependency, contrary to free and open markets, undermines public confidence in politicians
D)Promotes a political agenda, creates an uneven playing field, benefits only a few, creates interdependency, contrary to free and open markets, undermines public confidence in business

Answer 3

A

Question 4

Restrictive taxes or regulatory taxes are:

A)Primarily aimed at controlling or curbing the increase in prices of the housing prices
B)Primarily aimed at controlling or curbing the use of specific products or services
C)Primarily support the purchasing of raw materials from a supplier
D)Primarily aimed at controlling or curbing public savings

Question 5

_________________ is a type of tax that is considered a value-add tax or a tax that is paid at each steps of the manufacturing process

A)Sales Tax
B)Goods and Services Tax (GST)
C)Harmonized Sales Tax (HST)
D)All of the above

Question 6

What are the ways governments can provide assistance to businesses?

A)Grants
B)Loans
C)Subsidies
D)All of the above

Question 7

________________ is an accusation against an exporting country of pricing its product below cost or below the cost of the target country's products

A)tariffs
B)dumping
C)foreign direct investment
D)B & C

Question 8

What are cabinet members?

A)The upper house of Parliament where a bill is passed after it has been approved by the House of Commons
B)The lower house of Parliament where a bill is passed after it has been approved by the House of Commons
C)Members of Parliament who are appointed by the House of Commons to oversee an assigned government or department
D)Members of Parliament who are appointed by the prime minister to oversee an assigned government or department

Question 9

The CRTC and Canada post are examples of what type of enterprise?

A)Social Enterprise
B)Marketable enterprise
C)Global Enterprise
D)Crown Corporation

Question 10

Businesses should be free to make and sells what they please and, consequently, reflects the notion that government should not interfere with the economic affairs of business. This is referred to as:

A)Capitalism
B)Competition
C)Laissez Faire
D)Both B & C

Question 11

All developed countries have some sort of economic or business enterprise system that determines the following:

A)What goods and services are produced and distributed to society
B)How the goods and services are produced and distributed to society
C)Who produces and distributes the goods and services to society
D)A & B only

Question 12

The Canadian economic system has been described as a(n):

A)Oligopoly system
B)Capitalistic system
C)Communism system
D)Mixed system

Question 13

Identify the two major criticisms of subsidies

A)Businesses should be required to manage their costs without external help or "handouts," from the government; they constitute a form of trade barrier, and they create unfair competition.
B)It maintains a favourable balance of trade; it constitutes fair competition.
C)A & B
D)None of the above

Question 14

What is a bailout?

A)A type of government support to business to prevent an organization or industry from financial collapse
B)May involve a one-time financial contribution
C)Financial assistance in a form of a loan or loan guarantee
D)All of the above

Question 15

_____________ is the largest sources of revenue for municipal governments. The revenue gained from this form of tax is typically used to fund the operating costs of the municipal government and the services that it provides.

A)Goods and Services Taxes
B)Individual Income Taxes
C)Property Taxes
D)Corporate Taxes

Question 16

The LCBO is an example of what type of business?

A)Non Profit Corporation
B)Limited Liability Partnership
C)Crown Corporation
D)All of the above

Question 17

Identify at least two risks that have been associated with government nurturing young industries

A)Such protection can discourage domestic industry from increasing competition and engaging in innovation
B)there is a question as to whether consumers are better or worse off from such practices as it comes at the expense of blocking access to cheaper foreign goods or services
C)a & b
D)none of the above

Question 18

What are the rationales for having Crown Corporations?

A)To protect industries deemed to be vital to the economy
B)To restrict taxation on vulnerable communities
C)To nationalize industries that are considered to be "national monopolies"
D)A & C

Question 19

The Tax Court of Canada and the Supreme Court of Canada represent what type of court system?

A)Lowest level Judiciary
B)Federal Judiciary
C)Provincial Judiciary
D)None of the above

Question 20

Government involvement is necessary due to this type of market system

A)Mixed market system
B)Communistic market system
C)Imperfect competition
D)a & b

Question 21

___________________is an example of a Crown Corporation.

A)LCBO
B)Canadian National Railway
C)Air Canada
D)All of the above

Question 22

What are the potential benefits of deregulation?

A)Increased competition arising from the reduction of regulations that have formerly restricted the entry of new competitors
B)Decreased competition arising from the increase of regulations that have formerly restricted the entry of new competitors
C)Increased competition arising from the increase of regulations that have formerly restricted the entry of new competitors
D)None of the above

Question 23

What is the Competition Bureau?

A)An independent law enforcement agency
B)Ensures that Canadian businesses and consumers proper in a competitive market
C)Is responsible for the administration and enforcement of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act
D)All of the above

Question 24

____________ is aimed at correcting market failures and inequities that may arise for a variety of reasons, including the case where insufficient competition exists in an industry.

A)Deregulation
B)Regulation
C)Privatization
D)None of the above

Question 25

Corporate welfare is

A)A support mechanism offered by corporations to employees when downsizing
B)A support mechanism or safety net for individuals who are unemployed
C)A job creation model meant to justify political agenda
D)A term used to refer to government assistance given to businesses

Question 26

Divesting of government involvement in the operation, management and ownership of activities refers to:

A)Regulation
B)Privatization
C)both A & B
D)None of the above

Question 27

"Corporate Welfare should not be a public service. Tax dollars should be spent on community services, projects and social programs that provide the greatest benefit to all taxpayers, such as education, health care and national defence." Which argument of government should not be a guardian of business is this referring to?

A)Creates dependency
B)Benefits only a few
C)Undermines public confidence in politicians
D)All of the above

Question 28

What are some of the basic assumptions of the Competition Bureau in regards to competition?

A)Makes the economy work more efficiently
B)Price fixing, mergers and bid-rigging helps competition
C)gives small businesses an equitable chance to compete and participate in the economy
D)A & C

Question 29

Perfect Competition is

A)A mixed market economy that affects the prices of products and services
B)An economic term that exemplifies the demand and supply of products and services
C)An approach of change that has as its purpose the development of the organization's human capability to implement strategy and to learn from actions taken about the effectiveness of changes made.
D)A market system where many firms all produce an indistinguishable product or service so that no single producer has the power to affect the price of that product or service

Question 30

What are the potential risks of deregulation?

A)Governmental exploitation - that is, a reduction in quality of services provided, increases in taxes, or regulation increases to govern the industry's operation
B)Business exploitation - that is, a reduction in quality of products provided, increases prices of manufacturing as a result of the reduction in laws governing the business' operations
C)Non profit exploitation - that is, a reduction in quality of donations being provided, decrease in quality of care provided as a result of the reduction in laws governing the industry's operation
D)Consumer exploitation - that is, a reduction in quality of the products or services being offered, increases in consumer fees, or price increases as a result of the reduction in laws governing the industry's operation