Business Environment
Exam Materials
Course Introduction
Business Environment explores the dynamic and complex factors that influence the operations and decisions of organizations. This course examines the interplay between internal elements, such as organizational culture and resources, and external forces, including economic, legal, political, technological, and socio-cultural trends. Students will analyze how businesses adapt strategies in response to changes in regulatory frameworks, market competition, and global economic shifts. Through case studies and real-world examples, participants gain insights into the challenges and opportunities organizations face, preparing them to navigate and succeed in an ever-evolving commercial landscape.
Recommended Textbook
Contemporary Business 2nd Canadian Edition by Louis E. Boone
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17 Chapters
3207 Verified Questions
3207 Flashcards
Source URL: https://quizplus.com/study-set/3988
Page 2
Chapter 1: The Changing Face of Business
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181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/80098
Sample Questions
Q1) Force of change can only come from external sources.
A)True
B)False
Answer: False
Q2) The Industrial Revolution happened in the 1700s, yet there are some characteristics in that era which we still use today. Explain at least three characteristics of the Industrial Revolution which are still used in today's business world.
Answer: Important characteristics of the Industrial Revolution which we still see today include:
The factory system and mass production which allow companies to reduce cost of production,
Purchasing raw materials in large quantities, resulting in lower cost of materials, Improving production through specialization of labour, Mechanized agricultural systems resulting in large scale food production.
Q3) Successful entrepreneurs usually create large corporations.
A)True
B)False
Answer: False
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3
Chapter 2: Business Ethics and Social Responsibility
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194 Verified Questions
194 Flashcards
Source URL: https://quizplus.com/quiz/80099
Sample Questions
Q1) Starbucks' effort to go green with recyclable cups is an example of social responsibility.
A)True
B)False
Answer: True
Q2) Some people engage in activities that are contrary to their personal and moral values because they feel pressured by their jobs.
A)True
B)False
Answer: True
Q3) Hewlett-Packard's use of new and recycled plastics in the manufacture of its scanners is an example of acting responsibly to satisfy societal demands.
A)True
B)False
Answer: True
Q4) The legal requirements of the Sarbanes-Oxley Act vary from state to state.
A)True
B)False
Answer: False
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Chapter 3: Economic Challenges Facing Contemporary Business
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220 Verified Questions
220 Flashcards
Source URL: https://quizplus.com/quiz/80100
Sample Questions
Q1) An increase in customer preferences will shift the demand curve to the right.
A)True
B)False
Answer: True
Q2) Cyclical unemployment occurs when the economy slows down and mid managers, for example, are laid off.
A)True
B)False
Answer: True
Q3) Many of the gains in Canadian productivity can be attributed to ______.
A) deflation
B) budget surplus
C) a steady Consumer Price Index
D) technology
Answer: D
Q4) The equilibrium price occurs at the point of intersection between the supply and demand curves.
A)True
B)False Answer: True
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Chapter 4: Competing in World Markets
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200 Verified Questions
200 Flashcards
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Sample Questions
Q1) A(n) _____ develops and markets products to serve different needs and tastes of separate national markets.
A)offshoring
B)balance of trade
C)joint venture
D)dumping
E)imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)devaluation
K)exchange rate
L)absolute advantage
M)global strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)Comparative advantage
Q2) Discuss the various levels of involvement in international business.
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Page 6
Chapter 5: Forms of Business Ownership and Organization
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190 Verified Questions
190 Flashcards
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Sample Questions
Q1) Corporations have all of the following advantages EXCEPT ______.
A) favourable tax treatment
B) limited liability
C) expanded financial capacity
D) unlimited life
Q2) Most small business get their startup capital from
A) commercial banks.
B) grants.
C) friends and family.
D) personal savings.
Q3) Chen is a franchisee of a local retail shop. One of his chief concerns regarding owning a franchise is that
A) the franchising agreement is too restrictive.
B) the franchisor provides him with a wide range of support.
C) the franchise has the benefit of name recognition.
D) the franchisor can negotiate better deals on ingredients, supplies, and real estate, because of its financial strength.
Q4) Small business generate more than 30% of Canada's GDP.
A)True
B)False
Page 7
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Chapter 6: Starting Your Own Business: the Entrepreneurship Alternative
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148 Verified Questions
148 Flashcards
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Sample Questions
Q1) Classic entrepreneurs identify business opportunities and allocate available resources to tap into those markets.
A)True
B)False
Q2) Kayla is opening a home health care business that she knows will do well in her community based on prior research. Although she must repay borrowed funds, Kayla chooses ______ to maintain complete control over the business without having to answer to investors or partners.
A) debt financing
B) venture financing
C) sole proprietor financing
D) equity financing
Q3) An entrepreneur who starts one business and is able to run multiple businesses thereafter can be classified as a classic entrepreneur.
A)True
B)False
Q4) Entrepreneurs enjoy guaranteed job security because no one can fire them. A)True
B)False
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Chapter 7: Management, Leadership, and the Internal Organization
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202 Verified Questions
202 Flashcards
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Sample Questions
Q1) Autocratic leaders ______.
A) make decisions on their own, often without consulting others
B) believe in minimal supervision
C) are open-minded leaders
D) involve subordinates in making decisions
Q2) Sometimes taking an ethical stand can cost a company lost revenues.
A)True
B)False
Q3) Organizing lays the groundwork for all management functions.
A)True
B)False
Q4) First-line managers have a ______ span of control than top-level managers.
A) more narrow
B) wider
C) depends on the organization
D) cannot determine with this information
Q5) Great leaders do NOT share the same qualities.
A)True
B)False
Q6) Provide examples of tools managers might use to reinforce corporate culture. Page 9
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Page 10
Chapter 8: Human Resource Management: From
Recruitment to Labour Relations
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188 Verified Questions
188 Flashcards
Source URL: https://quizplus.com/quiz/80105
Sample Questions
Q1) One type of performance appraisal is the ______, which gathers feedback from a review panel of coworkers, supervisors, team members, and subordinates.
A)job enlargement
B)360-degree performance review
C)collective bargaining
D)Theory Y
E)downsizing
F)outsourcing
G)flexible work plans
H)grievance
I)wage
J)human resource management
K)performance appraisal
L)employee separation
M)lockout
N)arbitration
Q2) Most union contracts are 5 to 10 years in length.
A)True
B)False
Q3) Describe the tactics used by organized labour when dealing with management.
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Chapter 9: Top Performance Through Empowerment,
Teamwork, and Communication
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189 Verified Questions
189 Flashcards
Source URL: https://quizplus.com/quiz/80106
Sample Questions
Q1) Explain some challenges associated with email.
Q2) Giving employees responsibility and authority to make decisions about their work is called ______.
A) empowerment
B) communication
C) teamwork
D) top-down management
Q3) Jason's team has reached agreement about the role each member is expected to play. Jason's team has reached the ______ stage.
A) forming
B) norming
C) storming
D) performing
Q4) ______ listening is the basis for effective communication.
A) Polite
B) Nonverbal
C) Active
D) Cynical
Q6) Explain the forming and storming stages of team development. Page 12
Q5) What are the main steps a company should use during a public relation crisis?
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Chapter 10: Production and Operations Management
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203 Verified Questions
203 Flashcards
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Sample Questions
Q1) An efficient facility layout can reduce material handling, decrease costs, and improve product flow through the facility. Discuss the three common layouts namely process, product and fixed position.
Q2) Flexible production is now widely used in the auto industry.
A)True B)False
Q3) Managers should maintain access to multiple supply sources. A)True
B)False
Q4) Discuss the factors a firm should consider when deciding whether to make, buy, or lease components.
Q5) Under division of labour, work is divided into its simplest form and each worker focuses on different tasks.
A)True B)False
Q6) Provide two examples of uses for robots.
Q7) For most companies, price is the only consideration when selecting a supplier. A)True
B)False
Page 14
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Chapter 11: Customer-Driven Marketing
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202 Verified Questions
202 Flashcards
Source URL: https://quizplus.com/quiz/80108
Sample Questions
Q1) Marketing researchers use government statistics, or ______, as a low cost and quick access to consumer information.
A)secondary data
B)affinity program
C)market segmentation
D)demographic
E)target market
F)end-use segmentation
G)marketing mix
H)data mining
I)consumer behaviour
J)ownership utility
K)exchange process
L)B2B
M)person marketing
N)mass customization
O)frequency marketing
P)co-marketing
Q)co-branding
Q2) Describe the consumer market segmentations.
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Chapter 12: Product and Distribution Strategies
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222 Verified Questions
222 Flashcards
Source URL: https://quizplus.com/quiz/80109
Sample Questions
Q1) Which of the following is NOT among the major reasons why marketers examine their product mix?
A) to ensure company growth
B) to satisfy changing consumer needs and wants
C) to adjust to competitors
D) to go out of business
Q2) A major cause of product failure is lack of promotional support.
A)True
B)False
Q3) A firm's most important consideration in choosing a distribution channel is competition.
A)True
B)False
Q4) Describe the three levels of brand loyalty.
Q5) Technological changes can compress the life cycle of products.
A)True
B)False
Q6) Transportation by truck is extremely economical.
A)True
B)False
Page 16
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Chapter 13: Promotion and Pricing Strategies
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197 Verified Questions
197 Flashcards
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Sample Questions
Q1) Business costs that change with the level of production are called ______ costs.
A) inflexible
B) fixed
C) variable
D) production
Q2) Describe the follow-up stage of the selling process. Why is this stage important?
Q3) Penetration pricing assumes that a low price will attract new buyers.
A)True
B)False
Q4) Madison owns an upscale accessory boutique and drastically reduced some earrings to make room for new inventory. When the earrings didn't sell in the "discount basket," she put them back on the shelf at regular price and they sold within a month. What is her customers' perception of price?
A) value-quality
B) price-quality
C) price-prestige
D) prestige-quality
Q5) Describe the four basic categories of pricing objectives.
Q6) Differentiate between a pushing and a pulling strategy.
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Chapter 14: Using Technology to Manage Information
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155 Verified Questions
155 Flashcards
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Sample Questions
Q1) Viruses, worms, Trojan horses, and spyware are collectively referred to as malware.
A)True
B)False
Q2) Mario downloaded some company information into a spreadsheet so that he could work on it at home. When he returned to work, he inserted his memory card into his company computer. Within minutes, all of his hard drive files were corrupted. The most likely cause was a(n) ______.
A) computer virus
B) malfunctioning computer
C) bad operating system
D) intranet failure
Q3) Mari is on a business trip. From her hotel, she uses her computer to access her company's network, checking her email and calendar. Mari's company has a(n)
A) Internet
B) virtual private network
C) intranet
D) extranet
Q4) Explain the difference between an intranet and a virtual private network.
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Chapter 15: Understanding Accounting and Financial Statements
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180 Verified Questions
180 Flashcards
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Sample Questions
Q1) What is the purpose of the balance sheet? Explain how it is it organized.
Q2) The ______ was created by the Sarbanes-Oxley Act of 2002.
A) Public Company Accounting Oversight Board
B) Securities & Exchange Commission
C) GAAP
D) FASB
Q3) Explain the primary responsibility of the Accounting Standards Board.
Q4) Canadian public companies are required to use ______ that allow for easy comparison of financial statements from country to country.
A) International Accounting Standards Board
B) Accounting Standards for Private Enterprises
C) International Financial Reporting Standards
D) Accounting Standards Board
Q5) Tangible assets consist of equipment, buildings, patents, and inventories.
A)True
B)False
Q6) Explain the balance sheet and how it follows the accounting equation.
Page 19
Q7) Assets can include intangible possessions such as patents and trademarks.
A)True
B)False
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Page 20
Chapter 16: The Financial System
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200 Verified Questions
200 Flashcards
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Sample Questions
Q1) Treasury bills are units of ownership in public corporations, such as Sun Life Financial, Hudson's Bay, and Bell Canada Enterprises.
A)True
B)False
Q2) The chairman of the Bank of Canada can accelerate economic activity by lowering interest rates. What primary method does the Bank of Canada use to accomplish this?
A) open market operations
B) increasing the discount rate
C) increasing reserve requirements
D) selling margin requirements
Q3) The percentage of cash that banks are required to maintain for immediate withdrawal by customers is referred to as the ______.
A) open market operations
B) term auction facility
C) discount rate
D) reserve requirement
Q4) How are Canadian banks, in terms of assets, compared to other international banks?
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Chapter 17: Financial Management
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136 Verified Questions
136 Flashcards
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Sample Questions
Q1) The CFO of XYZ Company uses forecast of sales and long-term projection of expenses to determine the expected level of ______ for future periods.
A) profits
B) funds
C) purchases
D) taxes
Q2) The treasurer is the chief financial officer of most firms.
A)True
B)False
Q3) Venture capitalists invest in ______ in exchange for ______.
A) new and growing firms; ownership share
B) matured firms; ownership share
C) new and growing firms; fixed interest rate
D) matured firms; flexible interest rate
Q4) Which of the following assets would a firm most likely finance using long-term sources?
A) inventory
B) accounts receivable
C) marketable securities
D) another company
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