Question 1

The quality of relations between sovereign governments does not have much impact on businesses operating in those countries.

Accepted Answer

A) True 
 B)False

Question 2

What is inflation and how does it threaten economic stability?

Accepted Answer

Inflation occurs when there are widespre

Question 3

The consumer price index (CPI) is a measure of the prices of typical products purchased by consumers.

Accepted Answer

A) True 
 B)False

Question 4

When one company sells part of its existing business operations to another company, this is called

Accepted Answer

A)  outsourcing. 
B)  intense competition. 
C)  a spinoff. 
D)  a divestiture. 
E)  a strategic alliance. 
A)  outsourcing. 
B)  intense competition. 
C)  a spinoff. 
D)  a divestiture. 
E)  a strategic alliance.

Question 5

Which statement is true with regard to the standard of living?

Accepted Answer

A)  It is dependent on the size of the city in which one lives. 
B)  It is comparable for every citizen in every country. 
C)  It is the amount and quality of goods and services that people can buy with their money. 
D)  It is improved when high-end stores stock expensive merchandise. 
E)  It is unaffected by business productivity. 
A)  It is dependent on the size of the city in which one lives. 
B)  It is comparable for every citizen in every country. 
C)  It is the amount and quality of goods and services that people can buy with their money. 
D)  It is improved when high-end stores stock expensive merchandise. 
E)  It is unaffected by business productivity.

Question 6

What is the difference between pure and applied R&D?

Accepted Answer

"Pure" R&D involves developing knowledge

Question 7

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. Many in the Sponeto government agree that increasing the money supply to the nation's economy would be of significant help to the country. The national bank's reserve, however, is short on the funds needed, and suggests asking for them from the International Monetary Fund (IMF). Which of the following, if true, would strengthen the case for this course of action?

Accepted Answer

A)  The IMF has been known to force donor countries to drop tariffs put in place to protect domestic industries. 
B)  The IMF has been known to force donor countries to privatize national companies. 
C)  The IMF contributes money as well as financial advice to help countries with economies suffering from balance-of-payment problems. 
D)  IMF loans typically come with many conditions attached that may result in increased poverty in the donor country. 
E)  A number of developing countries have suffered financial disasters from following IMF advice. 
A)  The IMF has been known to force donor countries to drop tariffs put in place to protect domestic industries. 
B)  The IMF has been known to force donor countries to privatize national companies. 
C)  The IMF contributes money as well as financial advice to help countries with economies suffering from balance-of-payment problems. 
D)  IMF loans typically come with many conditions attached that may result in increased poverty in the donor country. 
E)  A number of developing countries have suffered financial disasters from following IMF advice.

Question 8

Viral marketing can result in ________ when compared to traditional marketing.

Accepted Answer

A)  faster consumer awareness and a wider reach 
B)  slower consumer awareness and a wider reach 
C)  quicker consumer awareness and higher costs 
D)  lower rates of recall and slower consumer awareness 
E)  lower rates of recall and higher costs 
A)  faster consumer awareness and a wider reach 
B)  slower consumer awareness and a wider reach 
C)  quicker consumer awareness and higher costs 
D)  lower rates of recall and slower consumer awareness 
E)  lower rates of recall and higher costs

Question 9

Flavour Foods runs The Hungry Cow, a chain of fast food restaurants located all over the country. The chain has a loyal customer base and is well-known for its signature dishes like the Big Bite Burger, Springy Fries, and the Orange Float. The company is faced with a critical decision: Should it expand its operations into China? Which of the following, if true, would strengthen the argument for competing in the Chinese market?

Accepted Answer

A)  Changes in exchange rates can affect the value of sales made in different countries. 
B)  Even global brands typically choose to tailor their offerings according to the tastes of consumers in different countries. 
C)  The Big Bite Burger has a higher selling price than other items on The Hungry Cow's menu, but it is not the most profitable item because of the cost of its ingredients. 
D)  The Hungry Cow's research indicates that reaching new customers in domestic markets will be more expensive than doing so in emerging markets. 
E)  Chinese companies tend not to pursue the franchise option when attempting to expand into other countries. 
A)  Changes in exchange rates can affect the value of sales made in different countries. 
B)  Even global brands typically choose to tailor their offerings according to the tastes of consumers in different countries. 
C)  The Big Bite Burger has a higher selling price than other items on The Hungry Cow's menu, but it is not the most profitable item because of the cost of its ingredients. 
D)  The Hungry Cow's research indicates that reaching new customers in domestic markets will be more expensive than doing so in emerging markets. 
E)  Chinese companies tend not to pursue the franchise option when attempting to expand into other countries.

Question 10

Full employment is impossible.

Accepted Answer

A) True 
 B)False

Question 11

List the five forces in Porter's model.

Accepted Answer

Rivalry among existing competi

Question 12

Which of the following best describes purchasing power parity?

Accepted Answer

A)  Total quantity of goods and services produced by an economic system 
B)  Total quantity of goods and services that can be purchased with one paycheque 
C)  Total quantity of goods and services that could have been purchased if one's pay rose in the same proportion as inflation 
D)  The principle that exchange rates are set so that prices of similar products in different countries are about the same 
E)  The principle that a market economy determines supply and demand for consumer products 
A)  Total quantity of goods and services produced by an economic system 
B)  Total quantity of goods and services that can be purchased with one paycheque 
C)  Total quantity of goods and services that could have been purchased if one's pay rose in the same proportion as inflation 
D)  The principle that exchange rates are set so that prices of similar products in different countries are about the same 
E)  The principle that a market economy determines supply and demand for consumer products

Question 13

Arnold's is a Canadian company engaged in the manufacture of sports shoes. The CEO cautions that there is a disadvantage associated with the company planning increased globalization of production. Which of the following is the most likely disadvantage the CEO is referring to?

Accepted Answer

A)  Heavy job losses can ensue in the domestic market. 
B)  Greater disparities in living standards will emerge. 
C)  Trade barriers will be reduced between countries. 
D)  Substantial job losses will occur in developing markets. 
E)  Increased competition will emerge between companies. 
A)  Heavy job losses can ensue in the domestic market. 
B)  Greater disparities in living standards will emerge. 
C)  Trade barriers will be reduced between countries. 
D)  Substantial job losses will occur in developing markets. 
E)  Increased competition will emerge between companies.

Question 14

What is cyclical unemployment?

Accepted Answer

Cyclical unemploymen

Question 15

Real GDP is more important than nominal GDP.

Accepted Answer

A) True 
 B)False

Question 16

The socio-cultural environment includes things like attitudes and values, but not demographic factors because the latter cannot easily be changed.

Accepted Answer

A) True 
 B)False

Question 17

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 is assumed by Marquand?

Accepted Answer

A)  All businesses now use information technology for communications and information. 
B)  Relatively few businesses sell products online. 
C)  Less information was available to businesses before the information technology revolution than there is now. 
D)  Consumers preferentially choose to buy from businesses that use the latest information technology. 
E)  Selling online is relatively unimportant to most businesses. 
A)  All businesses now use information technology for communications and information. 
B)  Relatively few businesses sell products online. 
C)  Less information was available to businesses before the information technology revolution than there is now. 
D)  Consumers preferentially choose to buy from businesses that use the latest information technology. 
E)  Selling online is relatively unimportant to most businesses.

Question 18

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 is assumed by Stevenson?

Accepted Answer

A)  Most people do not like shopping at traditional retail stores. 
B)  Many businesses are reluctant to adopt the latest information technology. 
C)  Most consumers use the Internet primarily to buy goods. 
D)  The greatest benefit of information technology has been to businesses. 
E)  Many products are more efficiently sold online than in traditional stores. 
A)  Most people do not like shopping at traditional retail stores. 
B)  Many businesses are reluctant to adopt the latest information technology. 
C)  Most consumers use the Internet primarily to buy goods. 
D)  The greatest benefit of information technology has been to businesses. 
E)  Many products are more efficiently sold online than in traditional stores.

Question 19

Canada's GDP in 2014 was approximately $6.4 trillion.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following would be included in the GNP of Brazil?

Accepted Answer

A)  A Canadian company produces and sells products in Brazil. 
B)  A Brazilian company produces and sells products in Canada. 
C)  A U.S. company produces and sells products in Brazil. 
D)  A Brazilian company produces and sells products in Brazil. 
E)  It is not possible to tell given the information that is provided. 
A)  A Canadian company produces and sells products in Brazil. 
B)  A Brazilian company produces and sells products in Canada. 
C)  A U.S. company produces and sells products in Brazil. 
D)  A Brazilian company produces and sells products in Brazil. 
E)  It is not possible to tell given the information that is provided.

The quality of relations between sovereign governments does not have much impact on businesses operating in those countries.

What is inflation and how does it threaten economic stability?

The consumer price index (CPI) is a measure of the prices of typical products purchased by consumers.

When one company sells part of its existing business operations to another company, this is called

Which statement is true with regard to the standard of living?

What is the difference between pure and applied R&D?

Viral marketing can result in ________ when compared to traditional marketing.

Full employment is impossible.

List the five forces in Porter's model.

Which of the following best describes purchasing power parity?

Arnold's is a Canadian company engaged in the manufacture of sports shoes. The CEO cautions that there is a disadvantage associated with the company planning increased globalization of production. Which of the following is the most likely disadvantage the CEO is referring to?

What is cyclical unemployment?

Real GDP is more important than nominal GDP.

The socio-cultural environment includes things like attitudes and values, but not demographic factors because the latter cannot easily be changed.

Canada's GDP in 2014 was approximately $6.4 trillion.

Which of the following would be included in the GNP of Brazil?

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 quality of relations between sovereign governments does not have much impact on businesses operating in those countries.

What is inflation and how does it threaten economic stability?

The consumer price index (CPI) is a measure of the prices of typical products purchased by consumers.

When one company sells part of its existing business operations to another company, this is called

Which statement is true with regard to the standard of living?

What is the difference between pure and applied R&D?

Viral marketing can result in ________ when compared to traditional marketing.

Full employment is impossible.

List the five forces in Porter's model.

Which of the following best describes purchasing power parity?

Arnold's is a Canadian company engaged in the manufacture of sports shoes. The CEO cautions that there is a disadvantage associated with the company planning increased globalization of production. Which of the following is the most likely disadvantage the CEO is referring to?

What is cyclical unemployment?

Real GDP is more important than nominal GDP.

The socio-cultural environment includes things like attitudes and values, but not demographic factors because the latter cannot easily be changed.

Canada's GDP in 2014 was approximately $6.4 trillion.

Which of the following would be included in the GNP of Brazil?

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