Test bank for better business 1st canadian edition by solomon

goods and services that people need and want Correct: A successful business provides the goods and services people need and want, provides employment opportunities for members of the co

TEST BANK FOR BETTER BUSINESS 1ST CANADIAN EDITION

BY SOLOMON

Complete downloadable file at:

b the company’s revenue is greater than its expenses

Correct: A profit is earned when a company’s revenue (the total amount of money received for

goods and services provided) is greater than its expenses (costs incurred while doing

business).

c the company successfully acquires a business loan

Incorrect: A profit is earned when a company’s revenue (the total amount of money received

for goods and services provided) is greater than its expenses (costs incurred while doing business).

d the company is able to keep pace with technological processes

Incorrect: A profit is earned when a company’s revenue (the total amount of money received

for goods and services provided) is greater than its expenses (costs incurred while doing business).

Answer: b

Diff: 1

Type: MC

Page Reference: 7

Objective: 1.3 Explain the difference between for-profit and non-profit organizational goals

2) Which of the following will likely occur as a company generates more profit?

a employees suffer

Incorrect: Generating more profit allows a business to reward its employees and expand its

operations, which can greatly increase productivity However, increases in productivity typically cut down on expenses, so it is unlikely that an increase in profit would lead to a doubling of expenses.

b productivity increases

Correct: Generating more profit allows a business to reward its employees and expand its

operations, which can greatly increase productivity However, increases in productivity typically cut down on expenses, so it is unlikely that an increase in profit would lead to a doubling of expenses.

c business closure

Incorrect: Generating more profit allows a business to reward its employees and expand its

operations, which can greatly increase productivity However, increases in productivity typically cut down on expenses, so it is unlikely that an increase in profit would lead to a doubling of expenses.

d expenses are doubled

Incorrect: Generating more profit allows a business to reward its employees and expand its

operations, which can greatly increase productivity However, increases in productivity typically cut down on expenses, so it is unlikely that an increase in profit would lead to a doubling of expenses.

Answer: b

Diff: 2

Type: MC

Page Reference: 7

Objective: 1.3 Explain the difference between for-profit and non-profit organizational goals

3) Roland’s law firm has had a successful year and made a significant profit Which of the following actions could Roland take with his firm’s profit to increase productivity?

a keep the profit for personal use

Incorrect: Keeping profit for personal use and paying expenses do not help the business grow

and become more productive Investing in new technology to transfer the firm’s paper files into more user-friendly electronic files will free up time for Roland’s employees to get more work done on a daily basis.

b pay bills for utilities and office supplies

Incorrect: Keeping profit for personal use and paying expenses do not help the business grow

and become more productive Investing in new technology to transfer the firm’s paper files into more user-friendly electronic files will free up time for Roland’s employees to get more work done on a daily basis.

c invest in a new computer system to digitize the firm’s paper records

Correct: Keeping profit for personal use and paying expenses do not help the business grow

and become more productive Investing in new technology to transfer the firm’s paper files into more user-friendly electronic files will free up time for Roland’s employees to get more work done on a daily basis.

d pay income taxes

Incorrect: Keeping profit for personal use and paying expenses do not help the business grow

and become more productive Investing in new technology to transfer the firm’s paper files into more user-friendly electronic files will free up time for Roland’s employees to get more work done on a daily basis.

Page Reference: 3

Objective: 1.3 Explain the difference between for-profit and non-profit organizational goals.5) Successful businesses benefit society by providing one of the following:

a goods and services that people need and want

Correct: A successful business provides the goods and services people need and want,

provides employment opportunities for members of the community, pays taxes, and generates income and spending in the economy.

b employment discrimnination for members of the community

Incorrect: A successful business provides the goods and services people need and want,

provides employment opportunities for members of the community, pays taxes, and generates income and spending in the economy.

c ever-growing business debts and liabilities

Incorrect: A successful business provides the goods and services people need and want,

provides employment opportunities for members of the community, pays taxes, and generates income and spending in the economy.

d lower standards of living for the entire society

Incorrect: A successful business provides the goods and services people need and want,

provides employment opportunities for members of the community, pays taxes, and generates income and spending in the economy.

Answer: a

Diff: 2

Type: MC

Page Reference: 7

Objective: 1.3 Explain the difference between for-profit and non-profit organizational goals

6) Theresa is leasing a small shop at a mall near her home Her shop sells homemade

perfumes In Taiwan, a firm that manufactures electric scooters is internationally recognized for some unique innovations in its products Although the two businesses vary considerably, they are similar because _

a both are seeking to make a profit

Correct: Earning a profit drives both businesses to operate and grow When a business

generates a profit, it is able to reward its employees, expand into new areas, and increase its productivity.

b both use their revenues to be socially responsible

Incorrect: Earning a profit drives both businesses to operate and grow When a business

generates a profit, it is able to reward its employees, expand into new areas, and increase its productivity.

c both are motivated by factors other than profit

Incorrect: Earning a profit drives both businesses to operate and grow When a business

generates a profit, it is able to reward its employees, expand into new areas, and increase its productivity.

d both seek to serve the community

Incorrect: Earning a profit drives both businesses to operate and grow When a business

generates a profit, it is able to reward its employees, expand into new areas, and increase its productivity.

Answer: a

Diff: 2

Type: MC

Page Reference: 7

Objective: 1.3 Explain the difference between for-profit and non-profit organizational goals

7) Non-profit organizations are similar to businesses because

a they are created for profit used for company growth

Incorrect: Though their motives are different, both businesses and non-profit organizations

were created to serve a need in society Successful businesses benefit society by providing useful products, providing employment opportunities, and generating income and spending in the economy A non-profit organization is geared toward servicing the community through social and educational means.

b they are created to fulfill a need in their communities

Correct: Though their motives are different, both businesses and non-profit organizations

were created to serve a need in society Successful businesses benefit society by providing useful products, providing employment opportunities, and generating income and spending in the economy A non-profit organization is geared toward servicing the community through social and educational means.

c they are created to challenge competing organizations

Incorrect: Though their motives are different, both businesses and non-profit organizations

were created to serve a need in society Successful businesses benefit society by providing useful products, providing employment opportunities, and generating income and spending in the economy A non-profit organization is geared toward servicing the community through social and educational means.

d they are created to provide volunteer opportunities for people

Incorrect: Though their motives are different, both businesses and non-profit organizations

were created to serve a need in society Successful businesses benefit society by providing useful products, providing employment opportunities, and generating income and spending in the economy A non-profit organization is geared toward servicing the community through social and educational means.

a aims to generate revenue solely by focusing on cancer care services

Incorrect: Non-profit organizations do not go into business to pursue profit They try to serve

the community through social, educational, or political means The Canadian Cancer Society clearly serves the community.

b uses the money it earns only as a means to further help people living with cancer

Correct: Non-profit organizations do not go into business to pursue profit They try to serve

the community through social, educational, or political means The Canadian Cancer Society clearly serves the community.

c focuses on Canadians who are too busy to live a better lifestyle

Incorrect: Non-profit organizations do not go into business to pursue profit They try to serve

the community through social, educational, or political means The Canadian Cancer Society clearly serves the community.

d needs to employ thousands of workers to sustain its service

Incorrect: Non-profit organizations do not go into business to pursue profit They try to serve

the community through social, educational, or political means The Canadian Cancer Society clearly serves the community.

Incorrect: A non-profit organization like the Canadian Diabetes Association seeks to conduct

social and educational activities and serve the community by operating like a business Its owners keep only the revenues it needs to finance the organization’s growth and operations, and do not seek to earn a profit.

b operating like a profit organization

Incorrect: A non-profit organization like the Canadian Diabetes Association seeks to conduct

social and educational activities and serve the community by operating like a business Its owners keep only the revenues it needs to finance the organization’s growth and operations, and do not seek to earn a profit.

c serving the community

Correct: A non-profit organization like the Canadian Diabetes Association seeks to conduct

social and educational activities and serve the community by operating like a business Its owners keep only the revenues it needs to finance the organization’s growth and operations, and do not seek to earn a profit.

d removing social and educational activities

Incorrect: A non-profit organization like the Canadian Diabetes Association seeks to conduct

social and educational activities and serve the community by operating like a business Its owners keep only the revenues it needs to finance the organization’s growth and operations, and do not seek to earn a profit.

Answer: c

Incorrect: Hospitals are non-profit organizations; they do not retain any profit from the

services they provide Conversely, private universities, restaurants, and Greyhound seek to earn a profit.

b Hospitals

Correct: Hospitals are non-profit organizations; they do not retain any profit from the

services they provide Conversely, private universities, restaurants, and Greyhound seek to earn a profit.

c Restaurants

Incorrect: Hospitals are non-profit organizations; they do not retain any profit from the

services they provide Conversely, private universities, restaurants, and Greyhound seek to earn a profit.

d Greyhound

Incorrect: Hospitals are non-profit organizations; they do not retain any profit from the

services they provide Conversely, private universities, restaurants, and Greyhound seek to earn a profit.

a charity

Incorrect: Though there are many hospitals that are run as non-profit organizations, there are

also private hospitals, such as the Cambie Surgery Centre, that operate with the goal of making a profit and are considered businesses.

b business

Correct: Though there are many hospitals that are run as non-profit organizations, there are

also private hospitals, such as the Cambie Surgery Centre, that operate with the goal of making a profit and are considered businesses.

c non-profit organization

Incorrect: Though there are many hospitals that are run as non-profit organizations, there are

also private hospitals, such as the Cambie Surgery Centre, that operate with the goal of making a profit and are considered businesses.

d government facility

Incorrect: Though there are many hospitals that are run as non-profit organizations, there are

also private hospitals, such as the Cambie Surgery Centre, that operate with the goal of making a profit and are considered businesses.

Answer: b

Diff: 3

Type: MC

Page Reference: 7

Objective: 1.3 Explain the difference between for-profit and non-profit organizational goals

12) benefit(s) from a business’s earned profit

a Business owners

Correct: A business’s earned profit benefits the owner, the employees in the form of increased

salaries and benefits, and the community in the form of job opportunities and economic stimulus A company’s competitors are hurt by its profit, because the company can use the profit to become more efficient and offer more and better products.

b The international community

Incorrect: A business’s earned profit benefits the owner, the employees in the form of

increased salaries and benefits, and the community in the form of job opportunities and economic stimulus A company’s competitors are hurt by its profit, because the company can use the profit to become more efficient and offer more and better products.

c Business unions

Incorrect: A business’s earned profit benefits the owner, the employees in the form of

increased salaries and benefits, and the community in the form of job opportunities and economic stimulus A company’s competitors are hurt by its profit, because the company can use the profit to become more efficient and offer more and better products.

d A company’s competitors

Incorrect: A business’s earned profit benefits the owner, the employees in the form of

increased salaries and benefits, and the community in the form of job opportunities and economic stimulus A company’s competitors are hurt by its profit, because the company can use the profit to become more efficient and offer more and better products.

Incorrect: Organizations such as universities, hospitals, environmental groups, and charities

are non-profit organizations A shoe manufacturing firm seeks to generate a profit.

b A hospital

Incorrect: Organizations such as universities, hospitals, environmental groups, and charities

are non-profit organizations A shoe manufacturing firm seeks to generate a profit.

c A shoe manufacturing firm

Correct: Organizations such as universities, hospitals, environmental groups, and charities

are non-profit organizations A shoe manufacturing firm seeks to generate a profit.

d An environmental group

Incorrect: Organizations such as universities, hospitals, environmental groups, and charities

are non-profit organizations A shoe manufacturing firm seeks to generate a profit.

a both offer goods and services

Correct: All businesses offer goods and/or services in order to earn a profit Both businesses

may or may not aim to expand globally or educate the community.

b both operate as non-profit organizations

Incorrect: All businesses offer goods and/or services in order to earn a profit Both businesses

may or may not aim to expand globally or educate the community.

c both aim to expand globally

Incorrect: All businesses offer goods and/or services in order to earn a profit Both businesses

may or may not aim to expand globally or educate the community.

d both seek to educate the community

Incorrect: All businesses offer goods and/or services in order to earn a profit Both businesses

may or may not aim to expand globally or educate the community.

a a corporation

Incorrect: They may operate like a business, but non-profit organizations do not go into

business to pursue a profit.

Instead, they seek to serve the community through social, educational, or political means.

b a non-profit organization

Correct: They may operate like a business, but non-profit organizations do not go into

business to pursue a profit.

Instead, they seek to serve the community through social, educational, or political means.

c a multinational company

Incorrect: They may operate like a business, but non-profit organizations do not go into

business to pursue a profit.

Instead, they seek to serve the community through social, educational, or political means.

d a manufacturing firm

Incorrect: They may operate like a business, but non-profit organizations do not go into

business to pursue a profit.

Instead, they seek to serve the community through social, educational, or political means.

Answer: b

Diff: 1

Type: MC

Page Reference: 7

Objective: 1.3 Explain the difference between for-profit and non-profit organizational goals

16) Leon recently opened a nursery that sells flowers, trees, and shrubs grown by local farmers Leon sells _

a goods

Correct: The physical products that a business offers are called goods Flowers, trees, and

shrubs are tangible items that Leon can physically give to his customers If Leon provided intangible products, such as educational training for gardeners, he would be providing a service.

b services

Incorrect: The physical products that a business offers are called goods Flowers, trees, and

shrubs are tangible items that Leon can physically give to his customers If Leon provided intangible products, such as educational training for gardeners, he would be providing a service.

c skills

Incorrect: The physical products that a business offers are called goods Flowers, trees, and

shrubs are tangible items that Leon can physically give to his customers If Leon provided intangible products, such as educational training for gardeners, he would be providing a service.

d income

Incorrect: The physical products that a business offers are called goods Flowers, trees, and

shrubs are tangible items that Leon can physically give to his customers If Leon provided intangible products, such as educational training for gardeners, he would be providing a service.

Answer: a

Diff: 2

Type: MC

Page Reference: 10

Objective: 1.4 Explain the difference between private and public business sectors

17) An intangible product that is bought or sold is called _

Incorrect: Services refer to intangible products that are bought or sold.

Objective: 1.4 Explain the difference between private and public business sectors

18) A golf shirt displayed in a sportswear shop is considered a good because _

a a golf shirt can be sold directly to a consumer

Incorrect: A good is distinguished from a service by being physical or tangible The other

choices are true of all products collectively, both goods and services.

b a golf shirt can be bought by anyone

Incorrect: A good is distinguished from a service by being physical or tangible The other

choices are true of all products collectively, both goods and services.

c a golf shirt is a product of a business or a company

Incorrect: A good is distinguished from a service by being physical or tangible The other

choices are true of all products collectively, both goods and services.

d a golf shirt is a physical or tangible product

Correct: A good is distinguished from a service by being physical or tangible The other

choices are true of all products collectively, both goods and services.

Answer: d

Diff: 2

Type: MC

Page Reference: 10

Objective: 1.4 Explain the difference between private and public business sectors

19) Brenda orders some fish at a seafood restaurant Which of the following is she going to pay for when the bill comes?

a service

Incorrect: When Brenda orders fish at the restaurant, she’s paying for the goods (fish), as well

as the service of preparing, cooking, and serving the meal.

b goods

Incorrect: When Brenda orders fish at the restaurant, she’s paying for the goods (fish), as well

as the service of preparing, cooking, and serving the meal.

c both service and goods

Correct: When Brenda orders fish at the restaurant, she’s paying for the goods (fish), as well

as the service of preparing, cooking, and serving the meal.

d enjoyment

Incorrect: When Brenda orders fish at the restaurant, she’s paying for the goods (fish), as well

as the service of preparing, cooking, and serving the meal.

Answer: c

Diff: 2

Type: MC

Page Reference: 10

Objective: 1.4 Explain the difference between private and public business sectors

20) Kevin likes to download music from online stores like iTunes The songs he downloads to his computer are considered

a profit

Incorrect: While songs and other software downloaded from the Internet are not physical

goods, they are tangible, discrete products that can be resold, traded, or destroyed, so they are still considered goods.

b services

Incorrect: While songs and other software downloaded from the Internet are not physical

goods, they are tangible, discrete products that can be resold, traded, or destroyed, so they are still considered goods.

c goods

Correct: While songs and other software downloaded from the Internet are not physical

goods, they are tangible, discrete products that can be resold, traded, or destroyed, so they are still considered goods.

d organizations

Incorrect: While songs and other software downloaded from the Internet are not physical

goods, they are tangible, discrete products that can be resold, traded or destroyed, so they are still considered goods.

Answer: c

Diff: 3

Type: MC

Page Reference: 10

Objective: 1.4 Explain the difference between private and public business sectors

21) The following factor of production refers to the goods and services that make businesses more efficient and help companies stay up to date and competitive in the twenty-first century economy: _

a labour

Incorrect: Traditionally, businesses focused on four factors of production: labour, natural

resources, capital, and entrepreneurial talent However, in the economy of the twenty-first century, an additional factor has become increasingly important: technology.

b technology

Correct: Traditionally, businesses focused on four factors of production: labour, natural

resources, capital, and entrepreneurial talent However, in the economy of the twenty-first century, an additional factor has become increasingly important: technology.

c natural resources

Incorrect: Traditionally, businesses focused on four factors of production: labour, natural

resources, capital, and entrepreneurial talent However, in the economy of the twenty-first century, an additional factor has become increasingly important: technology.

d entrepreneurial talent

Incorrect: Traditionally, businesses focused on four factors of production: labour, natural

resources, capital, and entrepreneurial talent However, in the economy of the twenty-first century, an additional factor has become increasingly important: technology.

Answer: b

Diff: 1

Type: MC

Page Reference: 10

Objective: 1.5 Describe the factors of production

22) The following factor of production refers to any physical or intellectual work that people contribute to a business’s production:

a labour

Correct: Labour is the human resource that refers to any physical or intellectual work people

contribute to business production.

b capital

Incorrect: Labour is the human resource that refers to any physical or intellectual work

people contribute to business production.

c entrepreneurship

Incorrect: Labour is the human resource that refers to any physical or intellectual work

people contribute to business production.

d technology

Incorrect: Labour is the human resource that refers to any physical or intellectual work

people contribute to business production.

Answer: a

Diff: 1

Type: MC

Page Reference: 10

Objective: 1.5 Describe the factors of production

23) Which of the following refers to the physical facilities used to produce goods and

24) Someone who takes on the risks of creating and operating a business and decides how resources should be allocated is a(n) _.

a employee

Incorrect: An entrepreneur is someone who assumes the risk of creating, organizing, and

operating a business and who directs all the business resources.

b competitor

Incorrect: An entrepreneur is someone who assumes the risk of creating, organizing, and

operating a business and who directs all the business resources.

c entrepreneur

Correct: An entrepreneur is someone who assumes the risk of creating, organizing, and

operating a business and who directs all the business resources.

d contractor

Incorrect: An entrepreneur is someone who assumes the risk of creating, organizing, and

operating a business and who directs all the business resources.

Answer: c

Diff: 1

Type: MC

Page Reference: 10

Objective: 1.5 Describe the factors of production

25) Sara has been a sales clerk for five years, but is looking for a change She’d like to become an entrepreneur, but she’s not sure that she’s ready or qualified for that kind of job Which of the following makes entrepreneurs different from workers?

a being a human resource

Incorrect: Entrepreneurs are human resources that contribute to a business’s pace of

production and its growth, but it is their willingness to take risks that rewards them with profit and sets them apart from workers.

b their willingness to take risks

Correct: Entrepreneurs are human resources that contribute to a business’s pace of

production and its growth, but it is their willingness to take risks that rewards them with profit and sets them apart from workers.

c contributing to the business’s growth

Incorrect: Entrepreneurs are human resources that contribute to a business’s pace of

production and its growth, but it is their willingness to take risks that rewards them with profit and sets them apart from workers.

d keeping up with the pace of production

Incorrect: Entrepreneurs are human resources that contribute to a business’s pace of

production and its growth, but it is their willingness to take risks that rewards them with profit and sets them apart from workers.

Answer: b

Diff: 2

Type: MC

Page Reference: 10

Objective: 1.5 Describe the factors of production

26) _ are considered to be natural resources

a Computers used for managing information

Incorrect: Computers, machinery, equipment, and trucks are not raw materials provided by

nature, so they are not natural resources; instead, they are technology Coal, oil, and natural gas are natural resources.

b Machinery and equipment used in agricultural production

Incorrect: Computers, machinery, equipment, and trucks are not raw materials provided by

nature, so they are not natural resources; instead, they are technology Coal, oil, and natural gas are natural resources.

c Trucks used for transporting lumber to build houses

Incorrect: Computers, machinery, equipment, and trucks are not raw materials provided by

nature, so they are not natural resources; instead, they are technology Coal, oil, and natural gas are natural resources.

d Coal, oil, and natural gas to create energy

Correct: Computers, machinery, equipment, and trucks are not raw materials provided by

nature, so they are not natural resources; instead, they are technology Coal, oil, and natural gas are natural resources.

Answer: d

Diff: 2

Type: MC

Page Reference: 10

Objective: 1.5 Describe the factors of production

27) In order to enjoy long-term success, a business must be able to keep pace with

a changing entrepreneurial skills

Incorrect: Successful companies are able to keep pace with technological progress and

harness new knowledge, information, and strategies.

b limited natural resources

Incorrect: Successful companies are able to keep pace with technological progress and

harness new knowledge, information, and strategies.

c technological progress

Correct: Successful companies are able to keep pace with technological progress and harness

new knowledge, information, and strategies.

d growing labour demand

Incorrect: Successful companies are able to keep pace with technological progress and

harness new knowledge, information, and strategies.

28) Factors of production refer to the .

a skills to improve the entrepreneurial expertise of a business owner

Incorrect: Factors of production are the resources (inputs) used to produce goods and

services (outputs).

b resources used to produce goods and services

Correct: Factors of production are the resources (inputs) used to produce goods and services

(outputs).

c services that a company offers to its consumers

Incorrect: Factors of production are the resources (inputs) used to produce goods and

services (outputs).

d consequences that an unsuccessful business experiences

Incorrect: Factors of production are the resources (inputs) used to produce goods and

Objective: 1.5 Describe the factors of production

29) Wallace needs to build a new warehouse to house the inventory for his designer clothing company Which of the following factors of production would he find useful in the

construction project?

a labour

Correct: The construction of a new warehouse would not require any significant investment in

technology Labour, financial capital, and natural resources would all be necessary to acquire the raw materials and assemble them into a new building.

b real capital

Incorrect: The construction of a new warehouse would not require any significant investment

in technology Labour, financial capital, and natural resources would all be necessary to acquire the raw materials and assemble them into a new building.

c technology

Incorrect: The construction of a new warehouse would not require any significant investment

in technology Labour, financial capital, and natural resources would all be necessary to acquire the raw materials and assemble them into a new building.

d food resources

Incorrect: The construction of a new warehouse would not require any significant investment

in technology Labour, financial capital, and natural resources would all be necessary to acquire the raw materials and assemble them into a new building.

30) Businessman Fernando discovers that teleconferencing is an effective and cheap way to communicate with his contacts abroad Which of the following factors of production BEST reflects Fernando’s use of teleconferencing?

a capital

Incorrect: Technology refers to items and services such as teleconferencing that make

businesses more efficient and productive.

b labour

Incorrect: Technology refers to items and services such as teleconferencing that make

businesses more efficient and productive.

c technology

Correct: Technology refers to items and services such as teleconferencing that make

businesses more efficient and productive.

d entrepreneurs

Incorrect: Technology refers to items and services such as teleconferencing that make

businesses more efficient and productive.

Answer: c

Diff: 2

Type: MC

Page Reference: 10

Objective: 1.5 Describe the factors of production

31) Which of the following refers to an interconnected system of different demographic factors?

a a technological environment

Incorrect: A socio-cultural environment is an interconnected system of different demographic

factors such as race, ethnicity, gender, age, income distribution, sexual orientation, and other characteristics.

b an economic environment

Incorrect: A socio-cultural environment is an interconnected system of different demographic

factors such as race, ethnicity, gender, age, income distribution, sexual orientation, and other characteristics.

c a political-legal environment

Incorrect: A socio-cultural environment is an interconnected system of different demographic

factors such as race, ethnicity, gender, age, income distribution, sexual orientation, and other characteristics.

d a socio-cultural environment

Correct: A socio-cultural environment is an interconnected system of different demographic

factors such as race, ethnicity, gender, age, income distribution, sexual orientation, and other characteristics.

Answer: d

Diff: 1

Type: MC

Page Reference: 16

Objective: 1.7 Describe the macro business environment and how managers use the PEST model to analyze external business opportunities and threats.

32) Which of the following would MOST likely change income distribution demographics?

34) refers to the generation born between 1943 and 1960, representing the majority

of the aging Canadian population

a Baby boomers

Correct: Canadians are living longer, healthier lives; they are also better educated, wealthier,

and have achieved a higher standard of living than previous generations Baby boomers, the generation born between 1943 and 1960, represent the majority of the aging Canadian population.

b Immigrants

Incorrect: Canadians are living longer, healthier lives; they are also better educated,

wealthier, and have achieved a higher standard of living than previous generations Baby boomers, the generation born between 1943 and 1960, represent the majority of the aging Canadian population.

c Gen-Xers

Incorrect: Canadians are living longer, healthier lives; they are also better educated,

wealthier, and have achieved a higher standard of living than previous generations Baby boomers, the generation born between 1943 and 1960, represent the majority of the aging Canadian population.

d Young adults

Incorrect: Canadians are living longer, healthier lives; they are also better educated,

wealthier, and have achieved a higher standard of living than previous generations Baby boomers, the generation born between 1943 and 1960, represent the majority of the aging Canadian population.

35) Identify one of the potential problems posed by an aging population

a lower federal budget deficit

Incorrect: An aging population presents challenges for the Canadian economy As the ratio of

the non-working population to the working population increases, problems could occur, such

as increased health care needs, higher taxes, and a reduction in government spending on pensions and health care.

b lower taxes

Incorrect: An aging population presents challenges for the Canadian economy As the ratio of

the non-working population to the working population increases, problems could occur, such

as increased health care needs, higher taxes, and a reduction in government spending on pensions and health care.

c job shortages

Incorrect: An aging population presents challenges for the Canadian economy As the ratio of

the non-working population

to the working population increases, problems could occur, such as increased health care needs, higher taxes, and a reduction in government spending on pensions and health care.

d increased health care needs

Correct: An aging population presents challenges for the Canadian economy As the ratio of

the non-working population

to the working population increases, problems could occur, such as increased health care needs, higher taxes, and a reduction in government spending on pensions and health care.

Answer: d

Diff: 2

Type: MC

Page Reference: 18

Objective: 1.7 Describe the macro business environment and how managers use the PEST model to analyze external business opportunities and threats

36) Which of the following is part of a diversity initiative?

a education on a variety of cultures

Correct: Companies must develop a diversity initiative, which outlines their goals and

objectives for managing, retaining, and promoting a diverse workforce A diversity initiative might include a non-discrimination policy, minority network, or diversity education.

b ethics training

Incorrect: Companies must develop a diversity initiative, which outlines their goals and

objectives for managing, retaining, and promoting a diverse workforce A diversity initiative might include a non-discrimination policy, minority network, or diversity education.

c majority network

Incorrect: Companies must develop a diversity initiative, which outlines their goals and

objectives for managing, retaining, and promoting a diverse workforce A diversity initiative might include a non-discrimination policy, minority network, or diversity education.

d discrimination policy

Incorrect: Companies must develop a diversity initiative, which outlines their goals and

objectives for managing, retaining, and promoting a diverse workforce A diversity initiative might include a non-discrimination policy, minority network, or diversity education.

Correct: The term minority applies to more than just people of different ethnicities Some

minority groups represent a person’s gender,

culture, religion, sexual orientation, or disability.

b majority

Incorrect: The term minority applies to more than just people of different ethnicities Some

minority groups represent a person’s gender,

culture, religion, sexual orientation, or disability.

c specialty

Incorrect: The term minority applies to more than just people of different ethnicities Some

minority groups represent a person’s gender,

culture, religion, sexual orientation, or disability.

d personality

Incorrect: The term minority applies to more than just people of different ethnicities Some

minority groups represent a person’s gender,

culture, religion, sexual orientation, or disability.

a mail out thousands of paper fliers advertising his green business

Incorrect: Powering his store with solar energy cuts down on Madison’s contribution to

carbon emissions He should avoid sending out paper fliers, because this will use up trees and can contribute to litter or add to landfills if not recycled property The other choices may be worth considering, but they are not green initiatives.

b raise prices on his T-shirts to include the cost of a donation to charity

Incorrect: Powering his store with solar energy cuts down on Madison’s contribution to

carbon emissions He should avoid sending out paper fliers, because this will use up trees and can contribute to litter or add to landfills if not recycled property The other choices may be worth considering, but they are not green initiatives.

c sell environmentally themed T-shirts

Incorrect: Powering his store with solar energy cuts down on Madison’s contribution to

carbon emissions He should avoid sending out paper fliers, because this will use up trees and can contribute to litter or add to landfills if not recycled property The other choices may be worth considering, but they are not green initiatives.

d install solar panels on the roof of his store to provide electricity

Correct: Powering his store with solar energy cuts down on Madison’s contribution to carbon

emissions He should avoid sending out paper fliers, because this will use up trees and can contribute to litter or add to landfills if not recycled property The other choices may be worth considering, but they are not green initiatives.

a inflation affecting international revenues

Incorrect: There are numerous legal, cultural, and economic issues that can make

international commerce problematic Successful multinational businesses adapt to the

countries they operate in, so it is more likely that Kelly’s French customers will be pleased by attempts to follow local customs.

b offending French customers by adopting local customs

Correct: There are numerous legal, cultural, and economic issues that can make international

commerce problematic Successful multinational businesses adapt to the countries they operate in, so it is more likely that Kelly’s French customers will be pleased by attempts to follow local customs.

c communicating with French employees

Incorrect: There are numerous legal, cultural, and economic issues that can make

international commerce problematic Successful multinational businesses adapt to the

countries they operate in, so it is more likely that Kelly’s French customers will be pleased by attempts to follow local customs.

d violating local French safety regulations

Incorrect: There are numerous legal, cultural, and economic issues that can make

international commerce problematic Successful multinational businesses adapt to the

countries they operate in, so it is more likely that Kelly’s French customers will be pleased by attempts to follow local customs.

Incorrect: Changes in local, national, or global economies can affect business operations

Factors may include interest rates, economic growth, industry changes, inflation and

exchange rates, and taxation changes.

b interdependence

Correct: Changes in local, national, or global economies can affect business operations

Factors may include interest rates, economic growth, industry changes, inflation and

exchange rates, and taxation changes.

c polarization

Incorrect: Changes in local, national, or global economies can affect business operations

Factors may include interest rates, economic growth, industry changes, inflation and

exchange rates, and taxation changes.

d regionalism

Incorrect: Changes in local, national, or global economies can affect business operations

Factors may include interest rates, economic growth, industry changes, inflation and

exchange rates, and taxation changes.

Answer: b

Diff: 1

Type: MC

Page Reference: 16

Objective: 1.7 Describe the macro business environment and how managers use the PEST model to analyze external business opportunities and threats.

41) Which of the following plays the MOST important role in allowing all companies, no matter the size, to compete in the global market?

a effective marketing

Incorrect: Technologies like the Internet make it possible for even the smallest company to do

business almost anywhere in the world While effective marketing, a talented workforce, and government subsidies can certainly help a company to compete globally, none of these factors can match the ability of technology to facilitate global commerce.

b a talented workforce

Incorrect: Technologies like the Internet make it possible for even the smallest company to do

business almost anywhere in the world While effective marketing, a talented workforce, and government subsidies can certainly help a company to compete globally, none of these factors can match the ability of technology to facilitate global commerce.

c government subsidies

Incorrect: Technologies like the Internet make it possible for even the smallest company to do

business almost anywhere in the world While effective marketing, a talented workforce, and government subsidies can certainly help a company to compete globally, none of these factors can match the ability of technology to facilitate global commerce.

d technological advances

Correct: Technologies like the Internet make it possible for even the smallest company to do

business almost anywhere in the world While effective marketing, a talented workforce, and government subsidies can certainly help a company to compete globally, none of these factors can match the ability of technology to facilitate global commerce.

42) Identify one of the following factors that BEST describes why many multinational

companies seek technology services and manufactured products in countries like India

a They manufacture higher-quality products

Incorrect: Developing countries like India tend to have less expensive labour than a country

like Canada, allowing products to be produced more cheaply While any of the other factors may be true of developing countries, lower productions costs are the main reason that

multinational companies ship work overseas

b They are environmentally conscious

Incorrect: Developing countries like India tend to have less expensive labour than a country

like Canada, allowing products to be produced more cheaply While any of the other factors may be true of developing countries, lower productions costs are the main reason that

multinational companies ship work overseas

c They produce goods more cheaply

Correct: Developing countries like India tend to have less expensive labour than a country

like Canada, allowing products to be produced more cheaply While any of the other factors may be true of developing countries, lower productions costs are the main reason that multinational companies ship work overseas

d They are closer to the targeted consumer

Incorrect: Developing countries like India tend to have less expensive labour than a country

like Canada, allowing products to be produced more cheaply While any of the other factors may be true of developing countries, lower productions costs are the main reason that multinational companies ship work overseas

a find a job at another call centre

Incorrect: While finding a new call centre job may be a short-term solution, there is no

guarantee that this job will not also be outsourced Instead, Danielle is better off learning new skills that will allow her to compete in the global economy and give her job security.

b boycott the company that shipped her job overseas

Incorrect: While finding a new call centre job may be a short-term solution, there is no

guarantee that this job will not also be outsourced Instead, Danielle is better off learning new skills that will allow her to compete in the global economy and give her job security.

c focus on learning new skills that will allow her to compete in the job market

Correct: While finding a new call centre job may be a short-term solution, there is no

guarantee that this job will not also be outsourced Instead, Danielle is better off learning new skills that will allow her to compete in the global economy and give her job security.

d write a blog calling for government policies that prevent jobs being outsourced

Incorrect: While finding a new call centre job may be a short-term solution, there is no

guarantee that this job will not also be outsourced Instead, Danielle is better off learning new skills that will allow her to compete in the global economy and give her job security.

44) Oliver is debating whether to upgrade the point-of-sale systems in his stores, but he is not sure he wants to pay the expense Information technology is often the single largest expense inmany companies because _.

a employees who work in information technology fields demand extremely high salaries

Incorrect: Information technology is characterized by rapid innovation Most computer

systems are rendered obsolete within five years, so keeping up with new technological

advances can be one of a company’s biggest expenses.

b computers and software become outdated quickly and it is costly to purchase new

equipment

Correct: Information technology is characterized by rapid innovation Most computer systems

are rendered obsolete within five years, so keeping up with new technological advances can

be one of a company’s biggest expenses.

c the declining value of the U.S dollar makes it difficult for companies to pay offshore technology workers

Incorrect: Information technology is characterized by rapid innovation Most computer

systems are rendered obsolete within five years, so keeping up with new technological

advances can be one of a company’s biggest expenses.

d all of the above

Incorrect: Information technology is characterized by rapid innovation Most computer

systems are rendered obsolete within five years, so keeping up with new technological

advances can be one of a company’s biggest expenses.

a relocate to a city where there are many software programmers

Incorrect: Telecommuting is Maria’s best strategy for building a cost-effective workforce, as

she will not have to maintain a large office to house employees and equipment, and she will have the best chance of finding the kind of skills she needs The other strategies all involve a great deal of expense and may not result in the employees she needs to succeed.

b offer a generous salary and benefits package to attract employees to her location

Incorrect: Telecommuting is Maria’s best strategy for building a cost-effective workforce, as

she will not have to maintain a large office to house employees and equipment, and she will have the best chance of finding the kind of skills she needs The other strategies all involve a great deal of expense and may not result in the employees she needs to succeed.

c use the Internet and other technologies to hire remote employees who want to telecommute

Correct: Telecommuting is Maria’s best strategy for building a cost-effective workforce, as

she will not have to maintain a large office to house employees and equipment, and she will

have the best chance of finding the kind of skills she needs The other strategies all involve a great deal of expense and may not result in the employees she needs to succeed.

d hire employees with no programming experience and invest in their training

Incorrect: Telecommuting is Maria’s best strategy for building a cost-effective workforce, as

she will not have to maintain a large office to house employees and equipment, and she will have the best chance of finding the kind of skills she needs The other strategies all involve a great deal of expense and may not result in the employees she needs to succeed.

46) Which one of the following is an advantage of telecommuting?

a a lower number of employees

Incorrect: Telecommuting allows employees to work from home, reducing their transportation

costs and enabling companies to maintain smaller, more efficient office spaces It allows companies to hire more employees and employees that would not normally be viable because

of distance However, telecommuting does prevent close managerial supervision.

b reduced transportation costs

Correct: Telecommuting allows employees to work from home, reducing their transportation

costs and enabling companies to maintain smaller, more efficient office spaces It allows companies to hire more employees and employees that would not normally be viable because

of distance However, telecommuting does prevent close managerial supervision.

c closer managerial supervision

Incorrect: Telecommuting allows employees to work from home, reducing their transportation

costs and enabling companies to maintain smaller, more efficient office spaces It allows companies to hire more employees and employees that would not normally be viable because

of distance However, telecommuting does prevent close managerial supervision.

d a bigger and more expensive office

Incorrect: Telecommuting allows employees to work from home, reducing their transportation

costs and enabling companies to maintain smaller, more efficient office spaces It allows companies to hire more employees and employees that would not normally be viable because

of distance However, telecommuting does prevent close managerial supervision.

a democracy

Incorrect: The government becomes a regulator when it regulates many aspects of business

activity through administrative boards, tribunals, and commissions Regulation promotes competition between businesses, protects customers, achieves social goals, and protects the environment.

b regulation

Correct: The government becomes a regulator when it regulates many aspects of business

activity through administrative boards, tribunals, and commissions Regulation promotes competition between businesses, protects customers, achieves social goals, and protects the environment.

c dictatorship

Incorrect: The government becomes a regulator when it regulates many aspects of business

activity through administrative boards, tribunals, and commissions Regulation promotes competition between businesses, protects customers, achieves social goals, and protects the environment.

d observation

Incorrect: The government becomes a regulator when it regulates many aspects of business

activity through administrative boards, tribunals, and commissions Regulation promotes competition between businesses, protects customers, achieves social goals, and protects the environment.

Answer: b

Diff: 2

Type: MC

Page Reference: 5

Objective: 1.1 Describe the roles the Canadian government plays in business

48) Canada’s system of government is based on the parliamentary model

a European Union

Incorrect: Canada’s system of government is based on the British parliamentary model and is

quite distinct from the presidential system operating in the United States.

b American

Incorrect: Canada’s system of government is based on the British parliamentary model and is

quite distinct from the presidential system operating in the United States.

c British

Correct: Canada’s system of government is based on the British parliamentary model and is

quite distinct from the presidential system operating in the United States.

d Australian

Incorrect: Canada’s system of government is based on the British parliamentary model and is

quite distinct from the presidential system operating in the United States.

49) In the Canadian economy, identify which of the following roles the government uses to influence business activity.

a provider of a standard of living

Incorrect: The government becomes a provider of incentives when it offers programs that help

stimulate economic development.

b provider of supply

Incorrect: The government becomes a provider of incentives when it offers programs that help

stimulate economic development.

c provider of insurance

Incorrect: The government becomes a provider of incentives when it offers programs that help

stimulate economic development.

d provider of incentives

Correct: The government becomes a provider of incentives when it offers programs that help

stimulate economic development.

Answer: d

Diff: 2

Type: MC

Page Reference: 5

Objective: 1.1 Describe the roles the Canadian government plays in business

50) In the Canadian economy, identify which of the following roles the government uses to influence business activity

a provider of special services

Incorrect: The government becomes a provider of essential services when it supplies services

that create the stability that encourages business activity, such as law enforcement (police) and health care (hospitals).

b provider of funds

Incorrect: The government becomes a provider of essential services when it supplies services

that create the stability that encourages business activity, such as law enforcement (police) and health care (hospitals).

c provider of stocks

Incorrect: The government becomes a provider of essential services when it supplies services

that create the stability that encourages business activity, such as law enforcement (police) and health care (hospitals).

d provider of essential services

Correct: The government becomes a provider of essential services when it supplies services

that create the stability that encourages business activity, such as law enforcement (police) and health care (hospitals).

51) In the Canadian economy, identify which of the following roles the government uses to influence business activity.

a tax collector

Correct: The government becomes a taxation agent when taxes are imposed and collected by

the three levels of government.

b distributor of information

Incorrect: The government becomes a taxation agent when taxes are imposed and collected by

the three levels of government.

c purchaser of equipment

Incorrect: The government becomes a taxation agent when taxes are imposed and collected by

the three levels of government.

d emotional intelligence

Incorrect: The government becomes a taxation agent when taxes are imposed and collected by

the three levels of government.

Answer: a

Diff: 2

Type: MC

Page Reference: 5

Objective: 1.1 Describe the roles the Canadian government plays in business

52) Canada’s overall economic competitiveness is ranked in the world and second among the G7 countries

a second

Incorrect: Canada’s overall economic competitiveness is ranked seventh in the world and

second among the G7 countries.

b ninth

Incorrect: Canada’s overall economic competitiveness is ranked seventh in the world and

second among the G7 countries.

c fifth

Incorrect: Canada’s overall economic competitiveness is ranked seventh in the world and

second among the G7 countries.

d seventh

Correct: Canada’s overall economic competitiveness is ranked seventh in the world and

second among the G7 countries.

Answer: d

Diff: 2

Type: MC

Page Reference: 6

Objective: 1.1 Describe the roles the Canadian government plays in business

53) Identify which of the following countries is one of the G7 established industrialized countries

a United Arab Emirates

Incorrect: The following countries are the G7 established industrialized countries:

France,Germany, Italy, United States, United Kingdom, Japan, and Canada.

b Canada

Correct: The following countries are the G7 established industrialized countries:

France,Germany, Italy, United States, United Kingdom, Japan, and Canada.

c Denmark

Incorrect: The following countries are the G7 established industrialized countries:

France,Germany, Italy, United States, United Kingdom, Japan, and Canada.

d China

Incorrect: The following countries are the G7 established industrialized countries:

France,Germany, Italy, United States, United Kingdom, Japan, and Canada.

Answer: b

Diff: 1

Type: MC

Page Reference: 6

Objective: 1.1 Describe the roles the Canadian government plays in business

54) Select which of the following is a major export of Canada

Objective: 1.1 Describe the roles the Canadian government plays in business

55) Describe the philosophy that businesses should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition

a sales concept

Incorrect: The marketing concept is a philosophy that businesses should analyze the needs of

their customers and then make decisions to satisfy those needs, better than the competition.

b demand concept

Incorrect: The marketing concept is a philosophy that businesses should analyze the needs of

their customers and then make decisions to satisfy those needs, better than the competition.

c production concept

Incorrect: The marketing concept is a philosophy that businesses should analyze the needs of

their customers and then make decisions to satisfy those needs, better than the competition.

d marketing concept

Correct: The marketing concept is a philosophy that businesses should analyze the needs of

their customers and then make decisions to satisfy those needs, better than the competition.

Answer: d

Diff: 2

Type: MC

Page Reference: 5

Objective: 1.1 Describe the roles the Canadian government plays in business

56) Determine which activity provides goods or services in exchange for other goods and services or money, based on their perceived worth

a a revenue

Incorrect: A business is any activity that provides goods or services in exchange for other

goods and services or money, based on their perceived worth.

b a business

Correct: A business is any activity that provides goods or services in exchange for other goods

and services or money, based on their perceived worth.

c a profit

Incorrect: A business is any activity that provides goods or services in exchange for other

goods and services or money, based on their perceived worth.

d a system

Incorrect: A business is any activity that provides goods or services in exchange for other

goods and services or money, based on their perceived worth.

Answer: b

Diff: 2

Type: MC

Page Reference: 7

Objective: 1.2 Define business and discuss the role of business in the economy

57) refers to the total amount of money received for goods and services provided

Objective: 1.2 Define business and discuss the role of business in the economy.

58) _ is the term for costs incurred while doing business

Objective: 1.2 Define business and discuss the role of business in the economy

59) What term describes when a company’s revenue is less than its expenses?

a profit

Incorrect: A loss occurs when a company’s revenue is less than its expenses More often than

not, profit is the driving force behind a business’s growth.

b difference

Incorrect: A loss occurs when a company’s revenue is less than its expenses More often than

not, profit is the driving force behind a business’s growth.

c investment

Incorrect: A loss occurs when a company’s revenue is less than its expenses More often than

not, profit is the driving force behind a business’s growth.

d loss

Correct: A loss occurs when a company’s revenue is less than its expenses More often than

not, profit is the driving force behind a business’s growth.

Answer: d

Diff: 2

Type: MC

Page Reference: 7

Objective: 1.2 Define business and discuss the role of business in the economy

60) When a company generates more profit, the company is able to

a lay off its employees

Incorrect: As more profit is generated, a company is able to reward its employees, increase its

productivity, or expand its business into new areas.

b delay payment of its taxes

Incorrect: As more profit is generated, a company is able to reward its employees, increase its

productivity, or expand its business into new areas.

c borrow more funds

Incorrect: As more profit is generated, a company is able to reward its employees, increase its

productivity, or expand its business into new areas.

d increase its productivity

Correct: As more profit is generated, a company is able to reward its employees, increase its

productivity, or expand its business into new areas.

Answer: d

Diff: 2

Type: MC

Page Reference: 7

Objective: 1.2 Define business and discuss the role of business in the economy

61) What can a successful business offer to the communnity?

a contention and opposition

Incorrect: A successful business provides the goods and services people need and want,

provides employment opportunities for members of the community, pays taxes, and generates income and spending in the economy.

b employment and income

Correct: A successful business provides the goods and services people need and want,

provides employment opportunities for members of the community, pays taxes, and generates income and spending in the economy.

c security and law

Incorrect: A successful business provides the goods and services people need and want,

provides employment opportunities for members of the community, pays taxes, and generates income and spending in the economy.

d negotiation and regulation

Incorrect: A successful business provides the goods and services people need and want,

provides employment opportunities for members of the community, pays taxes, and generates income and spending in the economy.

Answer: b

Diff: 2

Type: MC

Page Reference: 7

Objective: 1.2 Define business and discuss the role of business in the economy

62) Describe what a socially responsible company can offer to the community

a It advocates for society’s well-being

Correct: A socially responsible company contributes even more by actively advocating for the

well-being of the society that generates its success.

b It advances business interests

Incorrect: A socially responsible company contributes even more by actively advocating for

the well-being of the society that generates its success.

c It shows negligence to the environment

Incorrect: A socially responsible company contributes even more by actively advocating for

the well-being of the society that generates its success.

d It avoids payment of taxes.

Incorrect: A socially responsible company contributes even more by actively advocating for

the well-being of the society that generates its success.

Answer: a

Diff: 1

Type: MC

Page Reference: 7

Objective: 1.2 Define business and discuss the role of business in the economy

63) A country’s refers to the level of wealth, comfort, material goods and

necessities available to its people

a quantity of life

Incorrect: A country’s standard of living is the level of wealth, comfort, material goods, and

necessities available to its people.

b quality of life

Incorrect: A country’s standard of living is the level of wealth, comfort, material goods, and

necessities available to its people.

c standard of living

Correct: A country’s standard of living is the level of wealth, comfort, material goods, and

necessities available to its people.

d policy of life

Incorrect: A country’s standard of living is the level of wealth, comfort, material goods, and

necessities available to its people.

Answer: c

Diff: 1

Type: MC

Page Reference: 7

Objective: 1.2 Define business and discuss the role of business in the economy

64) What is the term that takes intangible aspect of of human life into account?

a standard of living

Incorrect: Quality of life takes into account not only the material standard of living, but also

more intangible aspects that make up human life, such as freedom from slavery, torture,and discrimination; the right to rest and leisure, education,safety, choice of employment,and equal treatment; and freedom of religion and of thought.

b quality of life

Correct: Quality of life takes into account not only the material standard of living, but also

more intangible aspects that make up human life, such as

freedom from slavery, torture,and discrimination; the right to rest and leisure,

education,safety, choice of employment,and equal treatment; and freedom of religion and of thought.

c quantity of life

Incorrect: Quality of life takes into account not only the material standard of living, but also

more intangible aspects that make up human life, such as