Question 1

List and describe the three factors that threaten stability.

Accepted Answer

The three factors are inflation (the occ

Question 2

A ________ balance of trade results when a country exports more than it imports.

Accepted Answer

A)  depressed 
B)  negative 
C)  real 
D)  nominal 
E)  positive 
A)  depressed 
B)  negative 
C)  real 
D)  nominal 
E)  positive

Question 3

BSX Inc. gave shareholders the right to purchase company stock at a 50 percent discount if a group without approval of BSX's board of directors acquired more than 20 percent of the company's shares. This is an example of

Accepted Answer

A)  a stock buyback. 
B)  a conglomerate merger. 
C)  greenmail. 
D)  a poison pill. 
E)  a vertical merger. 
A)  a stock buyback. 
B)  a conglomerate merger. 
C)  greenmail. 
D)  a poison pill. 
E)  a vertical merger.

Question 4

With regard to GDP and GNP, which of the following is correct?

Accepted Answer

A)  The profits earned by a Canadian company abroad are included in GDP, but not in GNP. 
B)  Profits earned by foreign firms in Canada are included in GNP. 
C)  GDP increased as a result of the BP oil spill in the Gulf of Mexico in 2010. 
D)  GDP has been increasing for many years. 
E)  GNP and GDP measure essentially the same thing. 
A)  The profits earned by a Canadian company abroad are included in GDP, but not in GNP. 
B)  Profits earned by foreign firms in Canada are included in GNP. 
C)  GDP increased as a result of the BP oil spill in the Gulf of Mexico in 2010. 
D)  GDP has been increasing for many years. 
E)  GNP and GDP measure essentially the same thing.

Question 5

What is unemployment? How does low unemployment threaten economic stability?

Accepted Answer

Unemployment is the joblessness of peopl

Question 6

Which of the following is correct with regard to the business cycle?

Accepted Answer

A)  Due to better government management of the economic environment, the business cycle has become less volatile in recent decades. 
B)  A depression occurs when the trough of the business cycle extends five or more years. 
C)  There are no recognizable short-term phases in the business cycle; rather, the cycle can only be recognized as a long-term phenomenon. 
D)  A recession is usually defined as two consecutive quarters when the economy shrinks. 
E)  All of these are correct. 
A)  Due to better government management of the economic environment, the business cycle has become less volatile in recent decades. 
B)  A depression occurs when the trough of the business cycle extends five or more years. 
C)  There are no recognizable short-term phases in the business cycle; rather, the cycle can only be recognized as a long-term phenomenon. 
D)  A recession is usually defined as two consecutive quarters when the economy shrinks. 
E)  All of these are correct.

Question 7

An acquisition takes place when

Accepted Answer

A)  two firms who previously have been buyer and seller merge. 
B)  two firms join together to form a new entity. 
C)  one firm consolidates with another. 
D)  one firm simply buys another. 
E)  management adopts a defence to make its firm less attractive. 
A)  two firms who previously have been buyer and seller merge. 
B)  two firms join together to form a new entity. 
C)  one firm consolidates with another. 
D)  one firm simply buys another. 
E)  management adopts a defence to make its firm less attractive.

Question 8

A key goal of an economic system is stability. What is meant by stability in an economic system?

Accepted Answer

Stability is a condition in which the am

Question 9

What does productivity measure?

Accepted Answer

A)  The total value of all goods and services produced by a national economy 
B)  How much a system produces with the resources needed to produce it 
C)  How much output is necessary to produce a certain level of demand 
D)  The standard of living relative to purchasing power parity 
E)  How much gross national product results from inputs of labour 
A)  The total value of all goods and services produced by a national economy 
B)  How much a system produces with the resources needed to produce it 
C)  How much output is necessary to produce a certain level of demand 
D)  The standard of living relative to purchasing power parity 
E)  How much gross national product results from inputs of labour

Question 10

The advent of the iPod saw an increase in the downloading of music from the Internet. Music artists are noticing a decrease in the sales of their CDs, which is an effect of which dimension of the external environment?

Accepted Answer

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

Question 11

A budget deficit refers to

Accepted Answer

A)  the measure of economic growth that compares how much a system produces with the resources needed to produce it. 
B)  government spending more in one year than it takes in during that year. 
C)  the total of a country's exports minus its imports. 
D)  the total amount of money that Canada owes its creditors. 
E)  the exchange rate that is set so prices of similar products in different countries are the same. 
A)  the measure of economic growth that compares how much a system produces with the resources needed to produce it. 
B)  government spending more in one year than it takes in during that year. 
C)  the total of a country's exports minus its imports. 
D)  the total amount of money that Canada owes its creditors. 
E)  the exchange rate that is set so prices of similar products in different countries are the same.

Question 12

There is a trend toward mixing business and entertainment. This is an example of which element of the external environment?

Accepted Answer

The trend toward mixing busine

Question 13

Basic research and development describes

Accepted Answer

A)  focusing specifically on how a technological innovation can be put to use in the making of a product or service that can be sold in the marketplace. 
B)  those activities that do not create value for the firm. 
C)  the process involved in getting a new technology out of the lab and into the marketplace. 
D)  improving knowledge in an area without a primary focus on whether any discoveries that might occur are immediately marketable. 
E)  those activities that increase a company's revenues. 
A)  focusing specifically on how a technological innovation can be put to use in the making of a product or service that can be sold in the marketplace. 
B)  those activities that do not create value for the firm. 
C)  the process involved in getting a new technology out of the lab and into the marketplace. 
D)  improving knowledge in an area without a primary focus on whether any discoveries that might occur are immediately marketable. 
E)  those activities that increase a company's revenues.

Question 14

Customer preferences must be taken into consideration across national boundaries, but not generally within the same country.

Accepted Answer

A) True 
 B)False

Question 15

Canada's GDP in 2014 was about

Accepted Answer

A)  $275 billion. 
B)  $950 billion. 
C)  $1.8 trillion. 
D)  $3.6 trillion. 
E)  $8.3 trillion. 
A)  $275 billion. 
B)  $950 billion. 
C)  $1.8 trillion. 
D)  $3.6 trillion. 
E)  $8.3 trillion.

Question 16

List and briefly describe each of the organizational environments that affect businesses.

Accepted Answer

The environments are (1) economic (the c

Question 17

Prevailing economic conditions affect mostly businesses that provide physical products, not businesses that provide intangible services.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is accurate regarding purchasing power parity?

Accepted Answer

A)  It gives us a better idea of what people can actually buy with the financial resources they have. 
B)  It reflects the principle that exchange rates are set so that prices of similar products in different countries are unequal. 
C)  It does not really give a good sense of the standards of living around the world. 
D)  It reflects the principle that capitalism is a better system than communism. 
E)  None of these statements are accurate. 
A)  It gives us a better idea of what people can actually buy with the financial resources they have. 
B)  It reflects the principle that exchange rates are set so that prices of similar products in different countries are unequal. 
C)  It does not really give a good sense of the standards of living around the world. 
D)  It reflects the principle that capitalism is a better system than communism. 
E)  None of these statements are accurate.

Question 19

Which of the factors in Porter's five forces model is generally most important?

Accepted Answer

A)  Threat of potential entrants 
B)  Rivalry among existing competitors 
C)  Threat of substitutes 
D)  Suppliers 
E)  None of these 
A)  Threat of potential entrants 
B)  Rivalry among existing competitors 
C)  Threat of substitutes 
D)  Suppliers 
E)  None of these

Question 20

How does a poison pill work?

Accepted Answer

A poison pill is a defence used to make

List and describe the three factors that threaten stability.

A ________ balance of trade results when a country exports more than it imports.

BSX Inc. gave shareholders the right to purchase company stock at a 50 percent discount if a group without approval of BSX's board of directors acquired more than 20 percent of the company's shares. This is an example of

With regard to GDP and GNP, which of the following is correct?

What is unemployment? How does low unemployment threaten economic stability?

Which of the following is correct with regard to the business cycle?

An acquisition takes place when

A key goal of an economic system is stability. What is meant by stability in an economic system?

What does productivity measure?

The advent of the iPod saw an increase in the downloading of music from the Internet. Music artists are noticing a decrease in the sales of their CDs, which is an effect of which dimension of the external environment?

A budget deficit refers to

There is a trend toward mixing business and entertainment. This is an example of which element of the external environment?

Basic research and development describes

Customer preferences must be taken into consideration across national boundaries, but not generally within the same country.

Canada's GDP in 2014 was about

List and briefly describe each of the organizational environments that affect businesses.

Prevailing economic conditions affect mostly businesses that provide physical products, not businesses that provide intangible services.

Which of the following is accurate regarding purchasing power parity?

Which of the factors in Porter's five forces model is generally most important?

How does a poison pill work?

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

List and describe the three factors that threaten stability.

A ________ balance of trade results when a country exports more than it imports.

BSX Inc. gave shareholders the right to purchase company stock at a 50 percent discount if a group without approval of BSX's board of directors acquired more than 20 percent of the company's shares. This is an example of

With regard to GDP and GNP, which of the following is correct?

What is unemployment? How does low unemployment threaten economic stability?

Which of the following is correct with regard to the business cycle?

An acquisition takes place when

A key goal of an economic system is stability. What is meant by stability in an economic system?

What does productivity measure?

The advent of the iPod saw an increase in the downloading of music from the Internet. Music artists are noticing a decrease in the sales of their CDs, which is an effect of which dimension of the external environment?

A budget deficit refers to

There is a trend toward mixing business and entertainment. This is an example of which element of the external environment?

Basic research and development describes

Customer preferences must be taken into consideration across national boundaries, but not generally within the same country.

Canada's GDP in 2014 was about

List and briefly describe each of the organizational environments that affect businesses.

Prevailing economic conditions affect mostly businesses that provide physical products, not businesses that provide intangible services.

Which of the following is accurate regarding purchasing power parity?

Which of the factors in Porter's five forces model is generally most important?

How does a poison pill work?

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