Question 1

The national debt refers to

Accepted Answer

A)  the total amount of money that Canada owes to its creditors. 
B)  the ratio of Canada's exports to its imports. 
C)  the result of government spending more in a year than the value of GDP. 
D)  the excess amount of taxes over what the government spends in one year. 
E)  the amount of taxes the government collects in one year. 
A)  the total amount of money that Canada owes to its creditors. 
B)  the ratio of Canada's exports to its imports. 
C)  the result of government spending more in a year than the value of GDP. 
D)  the excess amount of taxes over what the government spends in one year. 
E)  the amount of taxes the government collects in one year.

Question 2

The primary objective of an ESOP is to

Accepted Answer

A)  keep management from making bad decisions. 
B)  protect against takeovers. 
C)  prevent worker strikes. 
D)  provide workers with financial security. 
E)  motivate workers to work harder. 
A)  keep management from making bad decisions. 
B)  protect against takeovers. 
C)  prevent worker strikes. 
D)  provide workers with financial security. 
E)  motivate workers to work harder.

Question 3

Many firms use ________ to provide cafeteria operations for their customers.

Accepted Answer

A)  enterprise management 
B)  disruption management 
C)  outsourcing 
D)  core competencies 
E)  vertical integration 
A)  enterprise management 
B)  disruption management 
C)  outsourcing 
D)  core competencies 
E)  vertical integration

Question 4

What is an organizational boundary?

Accepted Answer

An organizational bo

Question 5

The more money the Canadian government borrows (by issuing savings bonds), the ________ money is available for private borrowing and investment that increases ________.

Accepted Answer

A)  more; productivity 
B)  less; productivity 
C)  more; purchasing power parity 
D)  less; GDP 
E)  more; GDP 
A)  more; productivity 
B)  less; productivity 
C)  more; purchasing power parity 
D)  less; GDP 
E)  more; GDP

Question 6

If you were the Minister of Finance taking care of fiscal policy, which one of the following could you implement?

Accepted Answer

A)  A tax increase 
B)  A cut in social security programs 
C)  An increase in federal transfer payments 
D)  An increase in spending to military bases 
E)  All of these ideas could be implemented 
A)  A tax increase 
B)  A cut in social security programs 
C)  An increase in federal transfer payments 
D)  An increase in spending to military bases 
E)  All of these ideas could be implemented

Question 7

The principle of ________ states that exchange rates are set so that the prices of similar products in different countries are about the same.

Accepted Answer

A)  nominal GDP 
B)  gross national product 
C)  consumer price index 
D)  equal prices 
E)  purchasing power parity 
A)  nominal GDP 
B)  gross national product 
C)  consumer price index 
D)  equal prices 
E)  purchasing power parity

Question 8

Viral marketing uses word of mouth that spreads information like a virus from customer to customer.

Accepted Answer

A) True 
 B)False

Question 9

Why are customer preferences and tastes important to business?

Accepted Answer

Tastes and preferences determi

Question 10

Mary is temporarily out of work while she is looking for a new job. She is experiencing cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following best describes viral marketing?

Accepted Answer

A)  The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials and resources 
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 owning the means by which an organization produces goods or services 
D)  Any activity that adds value to some input by transforming it into an output for an internal or external customer 
E)  The strategy of using the Internet and word-of-mouth marketing to spread product information 
A)  The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials and resources 
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 owning the means by which an organization produces goods or services 
D)  Any activity that adds value to some input by transforming it into an output for an internal or external customer 
E)  The strategy of using the Internet and word-of-mouth marketing to spread product information

Question 12

What is a recession?

Accepted Answer

A recession is a per

Question 13

Which of the following best describes business process management?

Accepted Answer

A)  An approach by which firms move away from department-oriented organization and toward process-oriented team structures that cut across old departmental boundaries 
B)  The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials and resources 
C)  Any activity that adds value to some input by transforming it into an output for an internal or external customer 
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)  An approach by which firms move away from department-oriented organization and toward process-oriented team structures that cut across old departmental boundaries 
B)  The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials and resources 
C)  Any activity that adds value to some input by transforming it into an output for an internal or external customer 
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

Question 14

What is productivity?

Accepted Answer

Productivity is a measure of e

Question 15

Inflation is relevant only for specific industries.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is correct with regard to budget deficits and the national debt?

Accepted Answer

A)  Canada's national debt is the amount of money Canada owes the United States. 
B)  A budget deficit occurs when income tax revenue is less than interest payments on the national debt. 
C)  A budget deficit occurs when government expenditures in a given year exceed government revenues. 
D)  There is no relationship between annual budget deficits and the total national debt. 
E)  The national debt is more important than annual budget deficits. 
A)  Canada's national debt is the amount of money Canada owes the United States. 
B)  A budget deficit occurs when income tax revenue is less than interest payments on the national debt. 
C)  A budget deficit occurs when government expenditures in a given year exceed government revenues. 
D)  There is no relationship between annual budget deficits and the total national debt. 
E)  The national debt is more important than annual budget deficits.

Question 17

What effect do higher interest rates have on consumer spending?

Accepted Answer

A)  Consumer spending increases as people try to quickly buy goods before rates go even higher. 
B)  Consumer spending decreases immediately, but then rises sharply after consumers get used to the new higher interest rates. 
C)  Consumer spending is not impacted by changes in interest rates. 
D)  Consumer spending decreases. 
E)  It is not possible to tell from the information given. 
A)  Consumer spending increases as people try to quickly buy goods before rates go even higher. 
B)  Consumer spending decreases immediately, but then rises sharply after consumers get used to the new higher interest rates. 
C)  Consumer spending is not impacted by changes in interest rates. 
D)  Consumer spending decreases. 
E)  It is not possible to tell from the information given.

Question 18

In the past, only India's elite could afford to buy a car. But recent dramatic changes in India's economy have produced a growing middle class and rapidly rising incomes. Now, to meet the new demand, established automakers are introducing smaller, more affordable vehicles into India. But they will have to find a way to compete with India's Tata Motors, which has unveiled the least expensive car ever in this market, the Tata Nano. The Nano sells for only 100 000 rupees (about US$2200). It seats four passengers, gets 50 miles per gallon, and travels at a top speed of 60 miles per hour. Based on the information above, Tata most likely believed that as a result of recent changes in India's economy, what would be true of a growing number of Indian consumers?

Accepted Answer

A)  They had become even more cost-conscious than ever before. 
B)  They would be willing and able to spend 100 000 rupees on a car. 
C)  They would choose a vehicle with high fuel efficiency primarily because of concern about the natural environment. 
D)  They will eventually prefer models similar to those currently available in the United States and Europe. 
E)  They will place a higher value on car safety than fuel economy. 
A)  They had become even more cost-conscious than ever before. 
B)  They would be willing and able to spend 100 000 rupees on a car. 
C)  They would choose a vehicle with high fuel efficiency primarily because of concern about the natural environment. 
D)  They will eventually prefer models similar to those currently available in the United States and Europe. 
E)  They will place a higher value on car safety than fuel economy.

Question 19

A(n) ________ is a merger of two firms that have previously had a buyer-seller relationship.

Accepted Answer

A)  hostile takeover 
B)  conglomerate merger 
C)  friendly takeover 
D)  vertical merger 
E)  enterprise merger 
A)  hostile takeover 
B)  conglomerate merger 
C)  friendly takeover 
D)  vertical merger 
E)  enterprise merger

Question 20

How might an economic environment characterized by moderate unemployment and low inflation affect a McDonald's restaurant?

Accepted Answer

Moderate unemployment will result in mos

The national debt refers to

The primary objective of an ESOP is to

Many firms use ________ to provide cafeteria operations for their customers.

What is an organizational boundary?

The more money the Canadian government borrows (by issuing savings bonds), the money is available for private borrowing and investment that increases .

If you were the Minister of Finance taking care of fiscal policy, which one of the following could you implement?

The principle of ________ states that exchange rates are set so that the prices of similar products in different countries are about the same.

Viral marketing uses word of mouth that spreads information like a virus from customer to customer.

Why are customer preferences and tastes important to business?

Mary is temporarily out of work while she is looking for a new job. She is experiencing cyclical unemployment.

Which of the following best describes viral marketing?

What is a recession?

Which of the following best describes business process management?

What is productivity?

Inflation is relevant only for specific industries.

Which of the following is correct with regard to budget deficits and the national debt?

What effect do higher interest rates have on consumer spending?

A(n) ________ is a merger of two firms that have previously had a buyer-seller relationship.

How might an economic environment characterized by moderate unemployment and low inflation affect a McDonald's restaurant?

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

The national debt refers to

The primary objective of an ESOP is to

Many firms use ________ to provide cafeteria operations for their customers.

What is an organizational boundary?

The more money the Canadian government borrows (by issuing savings bonds), the ________ money is available for private borrowing and investment that increases ________.

If you were the Minister of Finance taking care of fiscal policy, which one of the following could you implement?

The principle of ________ states that exchange rates are set so that the prices of similar products in different countries are about the same.

Viral marketing uses word of mouth that spreads information like a virus from customer to customer.

Why are customer preferences and tastes important to business?

Mary is temporarily out of work while she is looking for a new job. She is experiencing cyclical unemployment.

Which of the following best describes viral marketing?

What is a recession?

Which of the following best describes business process management?

What is productivity?

Inflation is relevant only for specific industries.

Which of the following is correct with regard to budget deficits and the national debt?

What effect do higher interest rates have on consumer spending?

A(n) ________ is a merger of two firms that have previously had a buyer-seller relationship.

How might an economic environment characterized by moderate unemployment and low inflation affect a McDonald's restaurant?

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

The more money the Canadian government borrows (by issuing savings bonds), the money is available for private borrowing and investment that increases .