Test Bank for Contemporary Business
Canadian Edition 5th Edition by Boone; David L, Kurtz, Pfaltzgraf, Khan, Canzer, Harms
ISBN: 9781394328499
Contemporary Business, 5Ce (Boone)
Chapter 1 The Changing Face of Business
TRUE-FALSE STATEMENTS
1) Large corporations are defined as businesses, whereas small companies are more of an investment.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.1 Define business.
Section Reference: What Is Business?
AACSB: Reflective Thinking
2) Business success does improve society's standard of living.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.1 Define business.
Section Reference: What Is Business?
AACSB: Ethics
3) In order to remain viable, not-for-profit organizations need to focus on profits even more than the public service they provide.
Answer: FALSE
Diff: 2
Bloomcode: Application
Learning Objective: 1.1 Define business.
Section Reference: What Is Business?
AACSB: Ethics
4) Not-for-profit organizations are commonly exempt from federal, provincial, and local taxes. Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.1 Define business.
Section Reference: What Is Business?
AACSB: Analytic
5) Just as with a for-profit business, the first priority for a not-for-profit organization is making a profit.
Answer: FALSE
Diff: 2
Bloomcode: Application
Learning Objective: 1.1 Define business.
Section Reference: What Is Business?
AACSB: Reflective Thinking
6) An accountant's view of profit is the difference between revenue and the cost incurred in generating the revenue. This view is shared by all business owners and the general public.
Answer: FALSE Diff: 3
Bloomcode: Knowledge
Learning Objective: 1.1 Define business.
Section Reference: What Is Business?
AACSB: Analytic
7) Employees and founders of not-for-profit organizations do NOT usually earn any income from their operations.
Answer: FALSE Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.1 Define business.
Section Reference: What Is Business?
AACSB: Analytic
8) All factors of production are found in equal amounts in all businesses. Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.2 Identify and describe the economic factors of production.
Section Reference: Economic Factors of Production
AACSB: Analytic
9) Capital includes money, machines, tools, buildings, and human resources. Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.2 Identify and describe the economic factors of production.
Section Reference: Economic Factors of Production
AACSB: Analytic
10) Natural resources are essential for certain companies but are NOT required for all economic systems.
Answer: FALSE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.2 Identify and describe the economic factors of production.
Section Reference: Economic Factors of Production
AACSB: Analytic
11) Technology is considered to be capital. Answer: TRUE Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.2 Identify and describe the economic factors of production.
Section Reference: Economic Factors of Production
AACSB: Technology
12) High-end technology, such as the Global Positioning Satellite System offered in some new cars, is considered a capital resource. Answer: TRUE Diff: 2
Bloomcode: Application
Learning Objective: 1.2 Identify and describe the economic factors of production.
Section Reference: Economic Factors of Production
AACSB: Technology
13) When farmers rent land in order to increase crop production, they are acquiring capital. Answer: FALSE Diff: 1
Bloomcode: Application
Learning Objective: 1.2 Identify and describe the economic factors of production.
Section Reference: Economic Factors of Production
AACSB: Reflective Thinking
14) Entrepreneurship is synonymous with "risk-taking." Answer: TRUE Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.2 Identify and describe the economic factors of production.
Section Reference: Economic Factors of Production
AACSB: Technology
15) An entrepreneur and a manager are the same. Answer: FALSE Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.2 Identify and describe the economic factors of production.
Section Reference: Economic Factors of Production
AACSB: Analytic
16) The owner of a small business is part of the human resources of their organization. Answer: TRUE Diff: 3
Bloomcode: Knowledge
Learning Objective: 1.2 Identify and describe the economic factors of production.
Section Reference: Economic Factors of Production
AACSB: Analytic
17) The private enterprise system encourages government intervention. Answer: FALSE
Diff: 1
Bloomcode: Application
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Reflective Thinking
18) Canada functions under the private enterprise system. Answer: TRUE Diff: 1
Bloomcode: Application
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Reflective Thinking
19) Adam Smith's "invisible hand" refers to the battle among businesses for consumer acceptance.
Answer: TRUE Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Analytic
20) Profits are guaranteed by the private enterprise system for every entrepreneur with good management skills. Answer: FALSE
Diff: 1
Bloomcode: Application
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Reflective Thinking
21) Private property is considered the most basic freedom in the private enterprise system. Answer: TRUE Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Analytic
22) When customers enter a supermarket and select their favourite brand of laundry detergent, they are exercising their right to freedom of choice.
Answer: TRUE
Diff: 2
Bloomcode: Application
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Reflective Thinking
23) When the government sets ground rules for competitive activity, the intent is to increase freedom of choice for consumers.
Answer: TRUE
Diff: 2
Bloomcode: Application
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Analytic
24) In the private enterprise system, government has no role to play in ensuring fair competition.
Answer: FALSE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Analytic
25) Unfair or "cutthroat" competition, designed to eliminate competitors, is prohibited by the Canadian government.
Answer: TRUE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Analytic
26) Finding unique ways to use the factors of production is a common characteristic of most entrepreneurs.
Answer: TRUE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Reflective Thinking
27) The Canadian Radio-television and Telecommunications Commission (CRTC) has made a decision that has increased the cost charged to small internet service providers that buy access from larger internet service providers such as Bell. This decision is a violation of the private enterprise system in Canada.
Answer: FALSE
Diff: 3
Bloomcode: Application
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Analytic
28) Successful entrepreneurs usually create large corporations. Answer: FALSE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.3 Describe the private enterprise system.
Section Reference: The Private Enterprise System
AACSB: Analytic
29) During the colonial period, the focus was on agriculture and other rural activities. Answer: TRUE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
30) The Industrial Revolution began in Germany and quickly spread to the rest of Europe. Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
31) The Industrial Revolution began in the United States with the development of the automobile.
Answer: FALSE Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
32) During the Industrial Revolution in Canada, agriculture became mechanized. Answer: TRUE Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
33) A key element of the production era was the use of consumer research. Answer: FALSE Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
34) The production era preceded the age of industrial entrepreneurs. Answer: FALSE Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
35) In consumer orientation, a company creates a product first and then determines if the consumer will likely purchase the product. Answer: FALSE Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Reflective Thinking
36) The Nike swoosh is NOT considered a brand; only the company name can be a brand. Answer: FALSE Diff: 2
Bloomcode: Application
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
37) The current philosophy among managers today is best described as transaction management. Answer: FALSE Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
38) Information technology has been the key driver behind the social era. Answer: TRUE Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Technology
39) Technology has revolutionized business communications. Answer: TRUE Diff: 1
Bloomcode: Application
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Technology
40) Relationship management refers to ongoing, mutually beneficial ties between a company and its vendors.
Answer: FALSE Diff: 2
Bloomcode: Application
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Technology
41) Branding is the promotion of products in the hopes that the business earns acceptable profits. Answer: FALSE Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
42) Relationship management concentrates on short-term interactions with customers. Answer: FALSE Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
43) Before the relationship era, businesses focused on transaction management. Answer: TRUE Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
44) The use of blogs as a link between companies and their customers is on the decline.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Technology
45) Attracting new customers is less expensive than developing long-term relationships with customers.
Answer: FALSE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
46) A relationship that exists between companies is NOT part of the age of connections in the relationship era.
Answer: FALSE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
47) The social era is based on business to customers connections through the use of technology. Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Analytic
48) The use of assembly lines became popular during the colonial era.
Answer: FALSE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Technology
49) Relationship management is important in the relationship era and the social era. Answer: TRUE
Diff: 3
Bloomcode: Knowledge
Learning Objective: 1.4 Identify the seven eras in the history of business.
Section Reference: Seven Eras in the History of Business
AACSB: Ethics
50) The needs of older workers are similar to those of younger workers. Answer: FALSE Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.5 Explain current trends in business.
Section Reference: Current Trends Related to Business
AACSB: Reflective Thinking
51) During the next few years, the average age of the workforce is expected to increase. Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.5 Explain current trends in business.
Section Reference: Current Trends Related to Business
AACSB: Analytic
52) Although the number of university-educated workers has increased in the last 20 years, the demand for workers is still greater than the supply. Answer: TRUE Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.5 Explain current trends in business.
Section Reference: Current Trends Related to Business
AACSB: Analytic
53) Research indicates that work teams consisting of a diverse group of individuals often are more effective than less diverse work teams.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.5 Explain current trends in business.
Section Reference: Current Trends Related to Business
AACSB: Diversity
54) Outsourcing is the relocation of business activities to lower-cost locations overseas.
Answer: FALSE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.5 Explain current trends in business.
Section Reference: Current Trends Related to Business
AACSB: Analytic
55) Today, workers are much less likely to remain with the same employer throughout their entire careers.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.5 Explain current trends in business.
Section Reference: Current Trends Related to Business
AACSB: Analytic
56) The new employer-employee relationship requires firms to establish rigid rules to govern employee activities.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.5 Explain current trends in business.
Section Reference: Current Trends Related to Business
AACSB: Analytic
57) The retirement of baby boomers CANNOT create a shortage in the Canadian workforce since students are graduating each year.
Answer: FALSE
Diff: 2
Bloomcode: Application
Learning Objective: 1.5 Explain current trends in business.
Section Reference: Current Trends Related to Business
AACSB: Analytic
58) Skilled and knowledgeable employees are essential resources that could help an organization to create change in today's dynamic business environment.
Answer: TRUE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.5 Explain current trends in business.
Section Reference: Current Trends Related to Business
AACSB: Analytic
59) The managerial quality of vision is the ability to see all the problems that might occur.
Answer: FALSE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.6 Identify the skills and attributes needed for today's manager.
Section Reference: Skills and Attributes Needed by Today's Managers
AACSB: Analytic
60) Critical thinking skills and creativity are essential qualities for today's managers.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.6 Identify the skills and attributes needed for today's manager.
Section Reference: Skills and Attributes Needed by Today's Managers
AACSB: Analytic
61) Critical thinking is the ability to analyze and assess information to pinpoint problems and opportunities.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: 1.6 Identify the skills and attributes needed for today's manager.
Section Reference: Skills and Attributes Needed by Today's Managers
AACSB: Analytic
62) Creativity is the capacity to develop well-tested solutions to common organizational problems.
Answer: FALSE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.6 Identify the skills and attributes needed for today's manager.
Section Reference: Skills and Attributes Needed by Today's Managers
AACSB: Analytic
63) A manager's only obligation is to create an environment for creativity and critical thinking. The implementation of those ideas is carried out by other departments.
Answer: FALSE
Diff: 2
Bloomcode: Knowledge
Learning Objective: 1.6 Identify the skills and attributes needed for today's manager.
Section Reference: Skills and Attributes Needed by Today's Managers
AACSB: Reflective Thinking