Exam 2: The Environment of Business

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McDonald's has made aggressive moves to gain market share in the coffee market. This is an example of ________, while the opening of Target stores in Canada is an example of ________.

(Multiple Choice)
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________ refers to the skills and resources with which the company competes best and creates the most value for its owners.

(Multiple Choice)
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A corporation may overcome the resistance of a takeover target by implementing which of the following actions?

(Multiple Choice)
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Canada usually has a ________ balance of trade. It is therefore a ________ nation rather than a ________ nation.

(Multiple Choice)
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________ is the economic condition characterized by widespread increased prices throughout an economic system.

(Multiple Choice)
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________ uses word of mouth and the Internet to market products.

(Multiple Choice)
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Most successful firms are getting leaner by focusing on their ________, the skills and resources with which they compete best and create the most value for owners.

(Multiple Choice)
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Agricultural production has ________ because ________.

(Multiple Choice)
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The ________ is a measure of the prices of a typical "basket of products" purchased by consumers.

(Multiple Choice)
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Which of the following statements is correct?

(Multiple Choice)
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What is the economic condition characterized by widespread increased prices without increased purchasing power?

(Multiple Choice)
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John is experiencing ________ unemployment because he is out of work temporarily while looking for a new job, while Sally is experiencing ________ unemployment because she is out work because of a downturn in the business cycle.

(Multiple Choice)
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The ________ is the growth rate of GDP adjusted for inflation and change in value of the country's currency.

(Multiple Choice)
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A financial analyst has noticed a serious increase in inflation. What course of action might the financial analyst advise the government to take to reduce inflation?

(Multiple Choice)
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In an acquisition, one firm simply buys another firm, whereas in a merger the consolidation is more collaborative.

(True/False)
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The ________ is the economic value of all the products that a country exports minus the economic value of imported products.

(Multiple Choice)
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The real growth rate of the Canadian economic system is the growth rate of GDP adjusted for inflation and changes in the value of a country's currency.

(True/False)
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How might low inflation levels in the general economy affect a company like McDonald's?

(Multiple Choice)
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If casinos notice an increase in business due to the fact that many people no longer regard gambling as wrong, this demonstrates a change in the ________ dimension of their external environment.

(Multiple Choice)
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How is per capita GDP computed?

(Multiple Choice)
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