Question 1

Under what circumstances can inflation be a positive factor?

Accepted Answer

As a sign of economic growth,

Question 2

Which of the following best gives the meaning of the term gross domestic product?

Accepted Answer

A)  Total quantity of goods and services produced by an economic system 
B)  Total quantity of goods that a country's citizens can purchase with the currency used in their economic system 
C)  Conditions of the economic system in which an organization operates 
D)  Total value of all goods and services produced within a given period by a national economy through domestic factors of production 
E)  Indicators of available goods and services produced within a specific domestic market 
A)  Total quantity of goods and services produced by an economic system 
B)  Total quantity of goods that a country's citizens can purchase with the currency used in their economic system 
C)  Conditions of the economic system in which an organization operates 
D)  Total value of all goods and services produced within a given period by a national economy through domestic factors of production 
E)  Indicators of available goods and services produced within a specific domestic market

Question 3

The private sector accounts for about 80 percent of R&D expenditures.

Accepted Answer

A) True 
 B)False

Question 4

The external environment has only a limited impact on the success or failure of most organizations, but it does have a significant impact on some firms.

Accepted Answer

A) True 
 B)False

Question 5

If a Danish company builds a production facility in Canada, will the value of the goods produced be included in Canada's GNP? Explain.

Accepted Answer

The value of the goods won't b

Question 6

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. Some in the Sponeto government would like the country to appeal to the World Bank for funding toward economic development, rather than short-term monetary stimulation. Which of the following, if true, would strengthen the case for this course of action?

Accepted Answer

A)  Sponeto has come under criticism in the United Nations for alleged human rights abuses. 
B)  Sponeto has been able to grow enough food to export to surrounding nations. 
C)  Corruption is a major problem among Sponeto's government officials. 
D)  Sponeto urgently needs humanitarian aid due to a recent natural disaster. 
E)  Chronic and widespread poverty is Sponeto's biggest economic problem. 
A)  Sponeto has come under criticism in the United Nations for alleged human rights abuses. 
B)  Sponeto has been able to grow enough food to export to surrounding nations. 
C)  Corruption is a major problem among Sponeto's government officials. 
D)  Sponeto urgently needs humanitarian aid due to a recent natural disaster. 
E)  Chronic and widespread poverty is Sponeto's biggest economic problem.

Question 7

Which of the following best defines the term business cycle?

Accepted Answer

A)  The conditions of the economic system in which an organization operates 
B)  The pattern of short-term ups and downs in an economy 
C)  The total quantity of goods and services produced by an economic system during a given period 
D)  The measure of economic growth that compares how much a system produces with the resources needed to produce it 
E)  The total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system 
A)  The conditions of the economic system in which an organization operates 
B)  The pattern of short-term ups and downs in an economy 
C)  The total quantity of goods and services produced by an economic system during a given period 
D)  The measure of economic growth that compares how much a system produces with the resources needed to produce it 
E)  The total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system

Question 8

________ includes human knowledge, work methods, physical equipment, electronics and telecommunications, and various processing systems that are used in performing business activities.

Accepted Answer

A)  The technological environment 
B)  The social environment 
C)  The political-legal environment 
D)  The competitive environment 
E)  The economic environment 
A)  The technological environment 
B)  The social environment 
C)  The political-legal environment 
D)  The competitive environment 
E)  The economic environment

Question 9

The most successful firms are getting leaner by focusing on their core competencies, but these new business models call for

Accepted Answer

A)  environmental management. 
B)  unprecedented coordination. 
C)  new corporate boundaries. 
D)  unprecedented funds. 
E)  none of these is correct. 
A)  environmental management. 
B)  unprecedented coordination. 
C)  new corporate boundaries. 
D)  unprecedented funds. 
E)  none of these is correct.

Question 10

Why would a government most likely be concerned about its country carrying a trade deficit?

Accepted Answer

A)  A trade deficit means that the country's productivity is low. 
B)  A trade deficit means local companies do not have enough competition. 
C)  A trade deficit ties up money that could be used for economic growth. 
D)  A trade deficit decreases demand for goods overall. 
E)  A trade deficit means that consumers do not have enough purchasing power. 
A)  A trade deficit means that the country's productivity is low. 
B)  A trade deficit means local companies do not have enough competition. 
C)  A trade deficit ties up money that could be used for economic growth. 
D)  A trade deficit decreases demand for goods overall. 
E)  A trade deficit means that consumers do not have enough purchasing power.

Question 11

List the three primary factors that threaten economic stability.

Accepted Answer

Inflation, deflation, and unem

Question 12

The Internet has changed the way people pay bills. From Canada Post's perspective, this is an example of which of Porter's five forces?

Accepted Answer

A)  Substitutes 
B)  Threat of potential entrants 
C)  Buyers 
D)  Suppliers 
E)  Threat of replacement products 
A)  Substitutes 
B)  Threat of potential entrants 
C)  Buyers 
D)  Suppliers 
E)  Threat of replacement products

Question 13

Low inflation will allow McDonald's to increase the prices it charges consumers.

Accepted Answer

A) True 
 B)False

Question 14

Since the increase in the unemployment level in a small Atlantic Canadian town, retailers have noticed that sales have decreased. The retailers are being affected by which element of the external environment?

Accepted Answer

A)  Socio-cultural 
B)  Economic 
C)  Environmental 
D)  Global 
E)  Political-legal 
A)  Socio-cultural 
B)  Economic 
C)  Environmental 
D)  Global 
E)  Political-legal

Question 15

Explain purchasing power parity.

Accepted Answer

Purchasing power parity is the

Question 16

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 Marquand's position?

Accepted Answer

A)  Having information to help it plan gives a business the greatest competitive edge. 
B)  Information technology has given consumers more choices than ever before. 
C)  The majority of consumers make at least one online purchase per month. 
D)  Information technology has greatly increased the choices available to consumers. 
E)  Most businesses are motivated to take advantage of the latest information technology. 
A)  Having information to help it plan gives a business the greatest competitive edge. 
B)  Information technology has given consumers more choices than ever before. 
C)  The majority of consumers make at least one online purchase per month. 
D)  Information technology has greatly increased the choices available to consumers. 
E)  Most businesses are motivated to take advantage of the latest information technology.

Question 17

Stone Inc. has just been through a friendly takeover. This means that

Accepted Answer

A)  these two firms are in a completely unrelated businesses merge. 
B)  two firms agree to join together. 
C)  the acquired company welcomes the acquisition because it may need cash or other benefits which it believes will be available from the other firm. 
D)  the organization will buy back their own stock from an investor who threatened a hostile takeover. 
E)  the two firms were direct competitors before the merger and now will not compete with each other after the merger. 
A)  these two firms are in a completely unrelated businesses merge. 
B)  two firms agree to join together. 
C)  the acquired company welcomes the acquisition because it may need cash or other benefits which it believes will be available from the other firm. 
D)  the organization will buy back their own stock from an investor who threatened a hostile takeover. 
E)  the two firms were direct competitors before the merger and now will not compete with each other after the merger.

Question 18

Which of the following is not an example of a factor in the socio-cultural environment?

Accepted Answer

A)  Prepackaged chili is more popular in southwestern U.S. states than in the U.S. northeast. 
B)  Consumers in China perceive bicycles primarily as a mode of transportation, while consumers in Canada perceive bicycles as recreational items. 
C)  Companies are more likely to set up foreign operations in countries with stable political and economic systems. 
D)  McDonald's has added salads and other low fat foods to its menu. 
E)  Many people in the Middle East are unwilling to work in food service operations. 
A)  Prepackaged chili is more popular in southwestern U.S. states than in the U.S. northeast. 
B)  Consumers in China perceive bicycles primarily as a mode of transportation, while consumers in Canada perceive bicycles as recreational items. 
C)  Companies are more likely to set up foreign operations in countries with stable political and economic systems. 
D)  McDonald's has added salads and other low fat foods to its menu. 
E)  Many people in the Middle East are unwilling to work in food service operations.

Question 19

In 2014, Canada had a trade surplus of approximately $4.4 billion.

Accepted Answer

A) True 
 B)False

Question 20

Why is it important for businesses to be aware of trends in the political?legal environment?

Accepted Answer

There are several reasons why it is impo

Under what circumstances can inflation be a positive factor?

Which of the following best gives the meaning of the term gross domestic product?

The private sector accounts for about 80 percent of R&D expenditures.

The external environment has only a limited impact on the success or failure of most organizations, but it does have a significant impact on some firms.

If a Danish company builds a production facility in Canada, will the value of the goods produced be included in Canada's GNP? Explain.

Which of the following best defines the term business cycle?

________ includes human knowledge, work methods, physical equipment, electronics and telecommunications, and various processing systems that are used in performing business activities.

The most successful firms are getting leaner by focusing on their core competencies, but these new business models call for

Why would a government most likely be concerned about its country carrying a trade deficit?

List the three primary factors that threaten economic stability.

The Internet has changed the way people pay bills. From Canada Post's perspective, this is an example of which of Porter's five forces?

Low inflation will allow McDonald's to increase the prices it charges consumers.

Since the increase in the unemployment level in a small Atlantic Canadian town, retailers have noticed that sales have decreased. The retailers are being affected by which element of the external environment?

Explain purchasing power parity.

Stone Inc. has just been through a friendly takeover. This means that

Which of the following is not an example of a factor in the socio-cultural environment?

In 2014, Canada had a trade surplus of approximately $4.4 billion.

Why is it important for businesses to be aware of trends in the political?legal environment?

Understanding the Canadian Business System

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 2: The Environment of Business

Under what circumstances can inflation be a positive factor?

Which of the following best gives the meaning of the term gross domestic product?

The private sector accounts for about 80 percent of R&D expenditures.

The external environment has only a limited impact on the success or failure of most organizations, but it does have a significant impact on some firms.

If a Danish company builds a production facility in Canada, will the value of the goods produced be included in Canada's GNP? Explain.

Which of the following best defines the term business cycle?

________ includes human knowledge, work methods, physical equipment, electronics and telecommunications, and various processing systems that are used in performing business activities.

The most successful firms are getting leaner by focusing on their core competencies, but these new business models call for

Why would a government most likely be concerned about its country carrying a trade deficit?

List the three primary factors that threaten economic stability.

The Internet has changed the way people pay bills. From Canada Post's perspective, this is an example of which of Porter's five forces?

Low inflation will allow McDonald's to increase the prices it charges consumers.

Since the increase in the unemployment level in a small Atlantic Canadian town, retailers have noticed that sales have decreased. The retailers are being affected by which element of the external environment?

Explain purchasing power parity.

Stone Inc. has just been through a friendly takeover. This means that

Which of the following is not an example of a factor in the socio-cultural environment?

In 2014, Canada had a trade surplus of approximately $4.4 billion.

Why is it important for businesses to be aware of trends in the political?legal environment?

Understanding the Canadian Business System

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters