Business Environment
Exam Bank
Course Introduction
Business Environment explores the various internal and external factors that influence the operations and success of organizations. This course examines economic, social, legal, technological, and political environments, focusing on how these elements create opportunities and challenges for businesses. Students will analyze market structures, competitive landscapes, government policies, and global trends to understand their impact on business decision-making. Through case studies and real-world examples, learners will develop skills to assess environmental factors and formulate strategic responses, preparing them for management roles in a dynamic business landscape.
Recommended Textbook
Business Eighth Canadian Edition by Ricky W.
Griffin
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19 Chapters
4123 Verified Questions
4123 Flashcards
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Page 2
Chapter 1: Understanding the Canadian Business System
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213 Verified Questions
213 Flashcards
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Sample Questions
Q1) In an oligopoly,only a handful of sellers compete mainly through product differentiation.
A)True
B)False
Answer: False
Q2) Which of the following is correct regarding monopolistic competition?
A) There are many competitors in the industry.
B) Products are differentiated.
C) Competitors can enter and leave the market easily.
D) Competitors may be large or small.
E) All of these statements are correct.
Answer: E
Q3) What is likely to happen when demand for a commodity is high?
A) Consumers will try to find substitutes for the commodity.
B) The price of the commodity will rise.
C) Criminal behaviour increases with regard to the commodity (e.g.,stealing).
D) The price of substitute commodities will increase.
E) All of these statements are correct.
Answer: E
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Page 3
Chapter 2: Understanding the Environments of Business
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225 Verified Questions
225 Flashcards
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Sample Questions
Q1) The consumer price index (CPI)is a measure of the prices of typical products purchased by consumers.
A)True
B)False
Answer: True
Q2) The primary objective of an ESOP is to
A) keep management from making bad decisions.
B) protect against takeovers.
C) prevent worker strikes.
D) provide workers with financial security.
E) motivate workers to work harder.
Answer: E
Q3) Which of the following is correct with respect to Porter's Five Forces model?
A) Rivalry among existing firms is the most important element in the model.
B) When there are many substitute products available,the industry is less competitive.
C) When there are only a few suppliers in an industry,buyers have less power.
D) When substitute products are available,suppliers have more power.
E) All of these statements are correct.
Answer: C
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Chapter 3: Conducting Business Ethically and Responsibly
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237 Verified Questions
237 Flashcards
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Sample Questions
Q1) Discuss the problem of land pollution.Include in your response the sources of land pollution and a recommended solution for dealing with that problem.
Answer: - two key issues are how to restore the quality of land damaged and abused in the past and how to prevent such problems in the future - sources of land pollution include mining,solid waste disposal,toxic waste - new solutions include recycling-reconversion of waste materials into useful products and toxic waste disposal
Q2) A poll of 12 000 people in 11 different countries revealed that ________ percent of those polled were willing to spend extra money to fight climate change.
A) 90
B) 75
C) 65
D) 45
E) 20
Answer: E
Q3) List five general categories of organizational stakeholders.
Answer: Customers,employees,investors,suppliers,and local communities.
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Chapter 4: Understanding Entrepreneurship, small
Business, and New Venture Creation
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221 Verified Questions
221 Flashcards
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Sample Questions
Q1) Franchising accounts for approximately ____ percent of retail sales in Canada.
A) 10
B) 20
C) 30
D) 40
E) 50
Q2) Personal characteristics often have more impact on a person's actions than the situation a person is in.
A)True
B)False
Q3) What percentage of businesses in Canada have fewer than 100 employees?
A) 98
B) 58
C) 88
D) 78
E) 28
Q4) What are the major parts of a good business plan?
Q5) Where do the majority of entrepreneurial ideas come from?
Q6) Explain why double taxation is considered to be a disadvantage to a corporate form of organization.Explain how double taxation occurs. Page 6
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Page 7
Chapter 5: The Global Context of Business
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213 Flashcards
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Sample Questions
Q1) What is a cartel?
Q2) Supporters of free trade in Canada argued all of the following except
A) Canadian imports would increase because of free trade.
B) there is nothing in the free trade agreements that threatens Canada's control over its energy resources.
C) access to U.S.markets is guaranteed by free trade and is therefore crucial to protecting Canadian employment.
D) the environment is not covered in free trade agreements.
E) the free trade agreements are about trade and tariffs,not cultural sovereignty.
Q3) If Japan's total exports are $12 billion and total imports are $4 billion,then this is called
A) a trade deficit.
B) a positive balance of trade.
C) an absolute advantage.
D) a negative balance of payments.
E) negative capital mobility.
Q4) What is a trade deficit?
Q5) What are local-content laws? What do they imply for a country wanting to do business?
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Chapter 6: Managing the Business Enterprise
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252 Verified Questions
252 Flashcards
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Sample Questions
Q1) Top-level managers are responsible for all of the following except A) the overall performance of the organization.
B) formulating strategies.
C) representing the organization in its dealings with other organizations.
D) implementing policies.
E) dealing with the external environment.
Q2) CN's diversification into trucking is an example of related diversification. A)True
B)False
Q3) When the CEO of a company monitors the engineers' performance to make sure that they are on track to reach their goals,he is
A) leading.
B) planning.
C) staffing.
D) controlling.
E) organizing.
Q4) List the three basic levels of management.
Q5) Contingency planning is an organization's method for dealing with emergencies. A)True B)False
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Chapter 8: Managing Human Resources
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228 Verified Questions
228 Flashcards
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Sample Questions
Q1) Gina has heard good things about incentive programs,but doesn't know much about them.She asks you for examples of incentive programs and you tell her about two such program.They are
A) employee-of-the-month awards and profit-sharing plans.
B) wages based on comparable worth and profit-sharing plans.
C) gain-sharing plans and profit-sharing plans.
D) wages based on comparable worth and gain-sharing plans.
E) employee recognition and profit-sharing plans.
Q2) A profit-sharing plan means that employees receive a bonus when they reduce costs.
A)True
B)False
Q3) Reverse mentoring is becoming more common because of the popularity of social media.
A)True
B)False
Q4) What type of information is included in a skills inventory?
Q5) List three forms of performance-based compensation.
Q6) What are the typical stages of selecting from external candidates?
Q7) What are knowledge workers?
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Chapter 9: Understanding Labourmanagement Relations
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163 Flashcards
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Sample Questions
Q1) When union and management are bargaining over an issue like workplace safety,which of the following would be most beneficial in keeping the process moving ahead in good faith?
A) Each side in the dispute needs to be able to show its constituents that it has obtained important concessions.
B) Each side in the dispute should be flexible.
C) Make a threat that if the conflict is not resolved,each side is prepared to take drastic action (e.g.,a lockout by management or a strike by the union).
D) Each side should start the negotiations by making extreme demands which they know the other side will not accept.
E) Try to achieve a resolution as quickly as possible.
Q2) Craft unions organize ________,while industrial unions organize ________.
A) workers with specific crafts; employees who belong to independent local unions
B) workers with specific skills; nationally
C) workers with specific skills; employees according to industry
D) workers with specific skills; employees by craft
E) nationally; locally
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Page 11
Chapter 10: Motivating and Leading Employees
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Sample Questions
Q1) A fundamental assumption in Maslow's hierarchy of needs theory is that once a need has been satisfied,it ceases to motivate behaviour.
A)True
B)False
Q2) What is the meaning of the term "turnover" when dealing with people in the organization?
A) Turnover measures the departure of employees from the organization.
B) Turnover measures the rate at which the finished goods inventory is sold during the year.
C) Turnover is the mental attitude about the job.
D) Turnover reflects the number of grievances submitted by employees.
E) Turnover measures the profitability of the firm per employee.
Q3) Managers tend to focus on monitoring results and correcting deviations,whereas leaders tend to focus on energizing people to help reach goals.
A)True
B)False
Q4) Reinforcement can include both rewards and punishments.
A)True
B)False
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Chapter 11: Producing Goods and Services
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201 Verified Questions
201 Flashcards
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Sample Questions
Q1) What does it mean to say,"production managers are ultimately responsible for creating utility"? Explain this phrase and the term "utility" in your response.
Q2) Production managers are relatively easy to identify because almost all of them work in factories.
A)True
B)False
Q3) List the three types of space in a goods-producing facility.
Q4) Production is concerned primarily with form utility.
A)True
B)False
Q5) Which layout is most likely to depend upon general-purpose machinery and skilled labour to perform a variety of jobs for different customers?
A) Process
B) Fixed-position
C) Customer
D) Cellular
E) Product
Q6) What is the last step in the operations planning and control process?
Q7) Explain what "utility" means and identify the four types of utility.
Page 13
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Chapter 12: Increasing Productivity and Quality
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175 Verified Questions
175 Flashcards
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Sample Questions
Q1) ISO certification would ideally mean that goods would be produced at the same level of quality even if all employees were replaced by a new set of workers.
A)True
B)False
Q2) What actions can be taken to improve a business firm's ability to compete through productivity and quality?
Q3) Roll-On Corp.regularly analyzes and applies the best practices of other companies to their own operations.It is using A) quality/cost analysis.
B) performance quality analysis.
C) benchmarking.
D) quality reliability analysis.
E) competitive product analysis.
Q4) Firms with increasing productivity rates can provide higher wage increases to employees more easily than firms with declining productivity rates.
A)True
B)False
Q5) Give an example of an external failure.
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Chapter 13: Managing Information Systems and Communication Technology
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197 Verified Questions
197 Flashcards
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Sample Questions
Q1) What is groupware?
Q2) IT has dramatically changed the technical aspects of business firms,but the nature of the management process has not been affected much by IT.
A)True
B)False
Q3) Mel says that developments in information technology have had a huge impact in communication and in access to data.Marla agrees that information is important,but thinks that how it is used is even more important,and she cites the dramatic developments in online selling as an example.What is Marla assuming?
A) People do not like shopping at traditional bricks-and-mortar retail outlets.
B) Businesses seem reluctant to adopt the latest information technology.
C) The main thing consumers use the internet for is to buy goods.
D) Businesses have been the greatest beneficiaries of the information technology revolution.
E) Products can be sold more efficiently online than in traditional bricks-and-mortar retail stores.
Q4) What is the purpose of a management information system? How does it help in the operation of the business firm?
Page 15
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Chapter 14: Understanding Accounting Issues
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212 Verified Questions
212 Flashcards
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Sample Questions
Q1) Maggie's Antiques and Collectibles opened her store with $14 000 beginning inventory.Maggie purchased an additional $5500 in antiques and sold all but $7500.What is Maggie's cost of goods sold?
A) $27 000
B) $12 000
C) $19 500
D) $13 000
E) none of these
Q2) What is the difference between financial accounting and managerial accounting?
Q3) Manhattan Corporation has total assets of $700 000,total liabilities of $200 000,and owners' equity of $500 000.What is Manhattan Corporation's debt-to-equity ratio?
Q4) What is the accounting equation? Provide a brief explanation of the meaning of each part of this equation.
Q5) Which of the following is an intangible asset?
A) An inventory level of 1000 copies of a book
B) The copyright for a textbook
C) A printing press used in the publication of a book
D) A $1000 Canada Savings Bond
E) The building in which a book was printed
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Chapter 15: Understanding Marketing Processes and Consumer Behaviour
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227 Verified Questions
227 Flashcards
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Sample Questions
Q1) The Delivery Company has an extensive distribution network in Canada.They buy products directly from manufacturers and distribute them to small retailers at a nominal mark-up.What market do they belong to?
A) Institutional market
B) Demand driven market
C) Industrial market
D) Primary market
E) Reseller market
Q2) Which term is used to identify products that are used by companies to produce other products?
A) Target markets
B) Consumer goods
C) Relationship marketing
D) Industrial goods
E) Service marketing
Q3) Psychographic and geographic variables are similar in that neither can generally be changed by marketing efforts.
A)True
B)False
Page 17
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Chapter 16: Developing and Promoting Goods and Services
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241 Verified Questions
241 Flashcards
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Sample Questions
Q1) Which of the following is not a factor that makes global advertising a difficult proposition?
A) Product variations
B) Image differences
C) Cultural receptiveness
D) Different currencies
E) Language differences
Q2) In the 2012 BrandZ Top 100 Global Brands Ranking list,which company had the most successful brand in the world?
A) Apple
B) The NFL
C) Google
D) Coca-Cola
E) IBM
Q3) Which of the following is a type of sales promotion?
A) Publicity
B) Contests and sweepstakes
C) Advertising
D) Personal selling
E) Public relations
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Chapter 17: Pricing and Distributing Goods and Services
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232 Verified Questions
232 Flashcards
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Sample Questions
Q1) What information is provided to the manager by performing a break-even analysis?
A) The break-even point identifies the total costs.
B) The break-even point identifies the point where variable costs equal fixed costs.
C) Sales volume above the break-even point makes a profit for the firm.
D) The break-even point identifies the amount of markup.
E) The break-even point identifies the intersection of the demand and supply curves.
Q2) When Carbonite Inc.started its online backup service,it charged "one flat low price" no matter how many computer files you needed to back up.Carbonite was using penetration pricing.
A)True
B)False
Q3) Costs that are unaffected by the quantity of a product that is produced or sold are A) variable costs.
B) on-going costs.
C) selling costs.
D) fixed costs.
E) product costs.
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19
Chapter 18: Understanding Money and Banking
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Sample Questions
Q1) Which of the following is correct with regard to recent changes in banking in Canada?
A) Banks are increasingly focusing on their role as intermediaries between depositors and borrowers.
B) Consumers are turning to electronic banks like President's Choice Financial.
C) Rather than making most of their profit from investment banking fees,banks now make most of their money from the spread between interest rates paid to depositors and the rates charged on loans.
D) During the last few years,large companies have increased their reliance on bank loans.
E) U.S.and other foreign banks are not allowed to do business in Canada.
Q2) What is the largest credit union in Canada (based on annual revenues)?
A) Credit Union Central (Saskatchewan)
B) Le Mouvement des Caisses Desjardins
C) Vancouver City Savings Credit Union
D) B.C.Central Credit Union
E) Credit Union Central of Ontario
Q3) Banks are permitted to own securities dealers.
A)True
B)False
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Chapter 19: Understanding Securities and Investments
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Sample Questions
Q1) Corporation B had sales revenue last year of $20 million,operating expenses of $16 million,and net profit of $4 million.There are 2 million shares of stock oustanding.What is the par value of the company's stock?
A) $5
B) $4.83
C) $4
D) $10
E) The par value cannot be determined with the information given.
Q2) If you bought a corporation bond that was selling for 155 1/4,how much would it cost you?
A) $155.25
B) $1555.25
C) $1552.50
D) $1000.00
E) It depends on how much demand there is for the bond.
Q3) The OTC market consists of many people in different locations who hold an inventory of securities that are not listed on any of the major exchanges.
A)True
B)False
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21
Chapter 20: Financial Decisions and Risk Management
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Sample Questions
Q1) Laura is analyzing several investment possibilities.She finds that some options have a good chance of a payback (but the paybacks are small),while other options have a not-so-good chance of payback (but the payback is large).She has discovered the A) cash flow trade-off.
B) cash flow decision.
C) risk-return relationship.
D) safety factor.
E) risk principle.
Q2) A company is faced with an unexpected shutdown because of a natural disaster.It would be protected from loss while it is preparing to reopen if it had purchased A) business interruption insurance.
B) credit insurance.
C) automobile insurance.
D) premises liability insurance.
E) damage insurance.
Q3) What is the difference between a trade draft and a trade acceptance?
Q4) What are the five steps in the risk management process?
Q5) What is financial control?
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