Question 1

A(n) ________ separates the organization from its environment.

Accepted Answer

A)  organizational boundary 
B)  process boundary 
C)  enterprise resource 
D)  aggregate output 
E)  integration 
A)  organizational boundary 
B)  process boundary 
C)  enterprise resource 
D)  aggregate output 
E)  integration

Question 2

Which of the following best describes real GDP?

Accepted Answer

A)  Total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system 
B)  Total quantity of goods and services produced by an economic system 
C)  Total value of all goods and services produced within a given period by a national economy through domestic and international factors of production 
D)  Total value of all goods and services produced within a given period by a national economy, through domestic factors of production measured in current dollars, or with all components valued at current prices 
E)  Total value of all goods and services produced by a national economy within a given period, calculated to account for changes in currency values and price changes 
A)  Total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system 
B)  Total quantity of goods and services produced by an economic system 
C)  Total value of all goods and services produced within a given period by a national economy through domestic and international factors of production 
D)  Total value of all goods and services produced within a given period by a national economy, through domestic factors of production measured in current dollars, or with all components valued at current prices 
E)  Total value of all goods and services produced by a national economy within a given period, calculated to account for changes in currency values and price changes

Question 3

Which of the following statements about inflation is true?

Accepted Answer

A)  The consumer price index is a good way of measuring inflation. 
B)  Productivity decreases the purchasing power of consumer dollars. 
C)  Inflation increases the purchasing power of consumer dollars. 
D)  Localized price increases can cause inflation across the economic system. 
E)  The amount of money tends to be distributed evenly during inflationary periods. 
A)  The consumer price index is a good way of measuring inflation. 
B)  Productivity decreases the purchasing power of consumer dollars. 
C)  Inflation increases the purchasing power of consumer dollars. 
D)  Localized price increases can cause inflation across the economic system. 
E)  The amount of money tends to be distributed evenly during inflationary periods.

Question 4

Deflation refers to

Accepted Answer

A)  a period of falling prices. 
B)  the occurrence of price increases throughout the economic system. 
C)  the condition in an economic system in which the amount of money available is greater than the amount of goods produced. 
D)  the measure of prices in urban areas. 
E)  the amount of government spending greater than the taxes collected in one year. 
A)  a period of falling prices. 
B)  the occurrence of price increases throughout the economic system. 
C)  the condition in an economic system in which the amount of money available is greater than the amount of goods produced. 
D)  the measure of prices in urban areas. 
E)  the amount of government spending greater than the taxes collected in one year.

Question 5

A company that cuts and packages paper for photocopiers and printers that merges with a paper mill to reduce the risk of paper shortages is using a(n)

Accepted Answer

A)  poison pill merger. 
B)  enterprise merger. 
C)  friendly takeover bid. 
D)  hostile takeover. 
E)  vertical merger. 
A)  poison pill merger. 
B)  enterprise merger. 
C)  friendly takeover bid. 
D)  hostile takeover. 
E)  vertical merger.

Question 6

Which of the following would be included in the gross national product of Brazil?

Accepted Answer

A)  The profits earned by a Brazilian coffee company operating in Canada 
B)  The wages paid to Peruvian workers producing coffee for a Canadian company 
C)  The profits earned by a Canadian coffee company operating in Peru 
D)  The profits earned by a Canadian-owned automobile plant in Brazil 
E)  The wages paid to Peruvian workers producing coffee for sale in Canada 
A)  The profits earned by a Brazilian coffee company operating in Canada 
B)  The wages paid to Peruvian workers producing coffee for a Canadian company 
C)  The profits earned by a Canadian coffee company operating in Peru 
D)  The profits earned by a Canadian-owned automobile plant in Brazil 
E)  The wages paid to Peruvian workers producing coffee for sale in Canada

Question 7

________ is a measure of economic growth that compares how much a system produces with the resources needed to produce it.

Accepted Answer

A)  Purchasing power parity 
B)  Stability 
C)  Recession 
D)  Inflation 
E)  Productivity 
A)  Purchasing power parity 
B)  Stability 
C)  Recession 
D)  Inflation 
E)  Productivity

Question 8

Why is the socio-cultural environment important for business firms?

Accepted Answer

It is important because the values, atti

Question 9

The political-legal environment describes

Accepted Answer

A)  the relationship between business and government. 
B)  the customs, values, attitudes, and demographic characteristics of the society in which an organization functions. 
C)  the intensity of the competition in an industry. 
D)  the relationship between international and domestic corporations. 
E)  the relationship between government and unions. 
A)  the relationship between business and government. 
B)  the customs, values, attitudes, and demographic characteristics of the society in which an organization functions. 
C)  the intensity of the competition in an industry. 
D)  the relationship between international and domestic corporations. 
E)  the relationship between government and unions.

Question 10

Ted has not worked in 5 years and has given up looking for work. He is considered unemployed.

Accepted Answer

A) True 
 B)False

Question 11

Ethical conduct and social responsibility are critical elements of which environment?

Accepted Answer

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

Question 12

Mark is out of work because he lacks the skills needed to perform jobs that are available. He is experiencing structural unemployment.

Accepted Answer

A) True 
 B)False

Question 13

How might the productivity of a company that is located in an island nation (e.g., Madagascar) be negatively affected?

Accepted Answer

Productivity is the measure of economic

Question 14

Why should companies always be on the lookout for technological breakthroughs?

Accepted Answer

There are two good reasons. First, techn

Question 15

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

Accepted Answer

A)  Total quantity of goods and services produced by an economic system 
B)  Total quantity of goods and services produced within a given period by a national economy, not including foreign production 
C)  Total value of all goods and services produced within a given period by a national economy through domestic factors of production 
D)  Total value of all goods and services produced within a given period regardless of where the factors of production are located 
E)  Total value of all goods and services that are exported 
A)  Total quantity of goods and services produced by an economic system 
B)  Total quantity of goods and services produced within a given period by a national economy, not including foreign production 
C)  Total value of all goods and services produced within a given period by a national economy through domestic factors of production 
D)  Total value of all goods and services produced within a given period regardless of where the factors of production are located 
E)  Total value of all goods and services that are exported

Question 16

An increase in tax rates is an example of ________ policy, while the government influencing banks to lend more to consumers is an example of ________ policy.

Accepted Answer

A)  GDP; GNP 
B)  fiscal; monetary 
C)  GNP; GDP 
D)  monetary; fiscal 
E)  none of these 
A)  GDP; GNP 
B)  fiscal; monetary 
C)  GNP; GDP 
D)  monetary; fiscal 
E)  none of these

Question 17

List the four phases in the business cycle.

Accepted Answer

The four phases are

Question 18

What is meant by the term core competencies?

Accepted Answer

Core competencies are the skil

Question 19

GNP is the total value of all the goods and services produced by an economic system during a period, regardless of where the factors of production are located.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is the best description of outsourcing?

Accepted Answer

A)  Any activity that adds value to some input by transforming it into an output for an internal or external customer 
B)  An approach by which firms move away from department-oriented organization and toward process-oriented team structures that cut across old departmental boundaries 
C)  The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials and resources 
D)  The strategy of using the Internet and word-of-mouth marketing to spread product information 
E)  The strategy of owning the means by which an organization produces goods or services 
A)  Any activity that adds value to some input by transforming it into an output for an internal or external customer 
B)  An approach by which firms move away from department-oriented organization and toward process-oriented team structures that cut across old departmental boundaries 
C)  The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials and resources 
D)  The strategy of using the Internet and word-of-mouth marketing to spread product information 
E)  The strategy of owning the means by which an organization produces goods or services

A(n) ________ separates the organization from its environment.

Which of the following best describes real GDP?

Which of the following statements about inflation is true?

Deflation refers to

A company that cuts and packages paper for photocopiers and printers that merges with a paper mill to reduce the risk of paper shortages is using a(n)

Which of the following would be included in the gross national product of Brazil?

________ is a measure of economic growth that compares how much a system produces with the resources needed to produce it.

Why is the socio-cultural environment important for business firms?

The political-legal environment describes

Ted has not worked in 5 years and has given up looking for work. He is considered unemployed.

Ethical conduct and social responsibility are critical elements of which environment?

Mark is out of work because he lacks the skills needed to perform jobs that are available. He is experiencing structural unemployment.

How might the productivity of a company that is located in an island nation (e.g., Madagascar) be negatively affected?

Why should companies always be on the lookout for technological breakthroughs?

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

An increase in tax rates is an example of policy, while the government influencing banks to lend more to consumers is an example of policy.

List the four phases in the business cycle.

What is meant by the term core competencies?

GNP is the total value of all the goods and services produced by an economic system during a period, regardless of where the factors of production are located.

Which of the following is the best description of outsourcing?

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

A(n) ________ separates the organization from its environment.

Which of the following best describes real GDP?

Which of the following statements about inflation is true?

Deflation refers to

A company that cuts and packages paper for photocopiers and printers that merges with a paper mill to reduce the risk of paper shortages is using a(n)

Which of the following would be included in the gross national product of Brazil?

________ is a measure of economic growth that compares how much a system produces with the resources needed to produce it.

Why is the socio-cultural environment important for business firms?

The political-legal environment describes

Ted has not worked in 5 years and has given up looking for work. He is considered unemployed.

Ethical conduct and social responsibility are critical elements of which environment?

Mark is out of work because he lacks the skills needed to perform jobs that are available. He is experiencing structural unemployment.

How might the productivity of a company that is located in an island nation (e.g., Madagascar) be negatively affected?

Why should companies always be on the lookout for technological breakthroughs?

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

An increase in tax rates is an example of ________ policy, while the government influencing banks to lend more to consumers is an example of ________ policy.

List the four phases in the business cycle.

What is meant by the term core competencies?

GNP is the total value of all the goods and services produced by an economic system during a period, regardless of where the factors of production are located.

Which of the following is the best description of outsourcing?

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

An increase in tax rates is an example of policy, while the government influencing banks to lend more to consumers is an example of policy.