Business Environment
Solved Exam Questions
Course Introduction
Business Environment explores the complex and dynamic external and internal factors that influence an organizations operations and decision-making processes. This course examines economic, legal, political, technological, social, and cultural forces that shape business environments locally and globally. Students analyze how companies adapt to changing market conditions, regulatory landscapes, and competitive pressures, and evaluate the interplay between businesses and their stakeholders. Through case studies and real-world examples, the course emphasizes the importance of environmental scanning and strategic planning to ensure organizational success in an ever-evolving marketplace.
Recommended Textbook
Contemporary Business 2nd Canadian Edition by Louis E. Boone
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17 Chapters
3207 Verified Questions
3207 Flashcards
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Page 2
Chapter 1: The Changing Face of Business
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181 Verified Questions
181 Flashcards
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Sample Questions
Q1) Force of change can only come from external sources.
A)True
B)False
Answer: False
Q2) Timber Trails, a northwest lumber company, utilizes ______ as its primary production factor.
A) natural resources
B) capital
C) entrepreneurship
D) human resources
Answer: A
Q3) What is the basic difference between the production era and the relationship era?
Answer: During the production era, management concentrated on the production process and internal processes rather than external influences. The relationship era uses technology to establish direct links with customers, employees, suppliers, and other organizations. Instead of focusing on production, in the relationship era, businesses focus long-term relationships with customers and customer loyalty.
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Chapter 2: Business Ethics and Social Responsibility
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194 Verified Questions
194 Flashcards
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Sample Questions
Q1) What is a social audit? Who conducts one?
Answer: A social audit is a formal procedure to identify and evaluate all company activities that relate to social issues such as conservation, employment practices, environmental protection, and philanthropy. The audit informs management about how well the company is performing in these areas. Social audits often are conducted internally by firms. Outside groups, such as environmental organizations and public-interest groups, also conduct social audits.
Q2) Over the long term, society can give power to a business or take that power away, if the business operates outside the expectations of stakeholders. True or false?
A)True
B)False
Answer: True
Q3) Environmental issues have become more important concerns of the public in recent years.
A)True
B)False Answer: True
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Chapter 3: Economic Challenges Facing Contemporary Business
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220 Verified Questions
220 Flashcards
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Sample Questions
Q1) Under socialism, there is no private property.
A)True
B)False
Answer: False
Q2) Concerning a balanced budget, all of the following statements are correct EXCEPT A) a balanced budget does not mean an end to the federal debt. B) the federal government has rarely balanced its budget during the last 50 years. C) balanced budgets will result in lower interest rates to all private borrowers. D) a balanced budget is achieved when all tax receipts equal all spending in a particular year.
Answer: C
Q3) List the factors that should cause a demand curve to shift to the right.
Answer: The factors are an increase in customer preferences, increase in the number of buyers, increase in buyers' incomes, increase in the prices of substitute goods, decrease in the price of complementary goods, and more optimistic expectations concerning the future.
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5
Chapter 4: Competing in World Markets
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200 Verified Questions
200 Flashcards
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Sample Questions
Q1) Which country features the most multinational corporations?
A) United States
B) Japan
C) Britain
D) Canada
Q2) Which of the following is the first step in the decision for a business to expand globally?
A) determining which foreign markets to enter
B) determining how much it will cost to enter a new market
C) deciding how to organize the overseas operations
D) applying for special export credits
Q3) One advantage of using foreign subcontractors is that firms have almost total control over the business practices of their subcontractors.
A)True
B)False
Q4) Compared with Canada, Europeans value employee benefits more than low unemployment and business efficiency.
A)True
B)False
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Chapter 5: Forms of Business Ownership and Organization
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190 Verified Questions
190 Flashcards
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Sample Questions
Q1) A conglomerate merger is a merger of unrelated firms.
A)True
B)False
Q2) One strategy for entering international market is by franchising.
A)True
B)False
Q3) Sole proprietorships have all of the following advantages EXCEPT ______.
A) ease of formation
B) unlimited life
C) ease of liquidation
D) profits subject only to a single tax
Q4) Compare and contrast the three forms of business ownership.
Q5) About 98% of business in Canada employ fewer than 100 employees.
A)True
B)False
Q6) Small businesses are more likely than large businesses to employ older workers, but NOT younger ones.
A)True
B)False
Q7) Describe the benefits and drawbacks of starting a home-based business.
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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) Given the opportunity to choose between capital from angel investors and venture capitalists, which one will you opt for and why?
Q2) ______ are specific geographic areas designated for economic revitalization.
A) Economic stimulus zones
B) Investor zones
C) Enterprise zones
D) Commerce areas
Q3) Entrepreneurs are managers, and managers are entrepreneurs.
A)True
B)False
Q4) Obtaining financing for an existing business is easier than it is for most startup companies.
A)True
B)False
Q5) Overall, the outlook for becoming an entrepreneur is NOT positive at this time. A)True
B)False
B)False Page 8
Q6) Entrepreneurs enjoy guaranteed job security because no one can fire them. A)True
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Page 9
Chapter 7: Management, Leadership, and the Internal Organization
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202 Verified Questions
202 Flashcards
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Sample Questions
Q1) Tactical planning involves current and near-term activities required to implement companywide strategies.
A)True
B)False
Q2) ______ planning involves implementing activities specified by strategic plans.
A) Financial
B) Operational
C) Contingency
D) Tactical
Q3) A petroleum refinery stockpiles crude oil so that it can easily switch between producing home heating oil and gasoline, depending on relative demand. This is an example of ______ planning.
A) tactical
B) strategic
C) contingency
D) operational
Q4) The directing function is a vital responsibility of top management.
A)True
B)False
Q5) Provide examples of tools managers might use to reinforce corporate culture.
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Chapter 8: Human Resource Management: From
Recruitment to Labour Relations
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188 Verified Questions
188 Flashcards
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Sample Questions
Q1) Helène, an industrial sales representative, bought a cellular phone to use if she ever had car trouble while travelling between appointments. Which level of Maslow's need hierarchy is Helène addressing?
A) physiological
B) safety
C) esteem
D) self-actualization
Q2) Which of the following is an example of on-the-job training?
A) online training programs
B) conferences
C) apprenticeship programs
D) classroom lectures
Q3) Outsourcing is defined as transferring core jobs outside the company.
A)True
B)False
Q4) Distinguish between the terms outsourcing and downsizing and explain when each may be used in the organization.
Q5) Explain the concept of human resource management and the role of human resource planning in an organization's competitive strategy.
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Chapter 9: Top Performance Through Empowerment,
Teamwork, and Communication
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189 Verified Questions
189 Flashcards
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Sample Questions
Q1) Noise come in different forms, and can be present at any point in the communication process.
A)True
B)False
Q2) Explain the forming and storming stages of team development.
Q3) Eric belongs to a team made up of members from the production, marketing, and finance departments. This type of team is known as a ______.
A) work team
B) self-managed team
C) cross-functional team
D) problem-solving team
Q4) Even if it is NEVER printed on paper, email is considered to be a form of written communication.
A)True
B)False
Q5) Team level represents the average level of the team while team diversity represents the variance and abilities of the team members.
A)True
B)False
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Chapter 10: Production and Operations Management
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203 Flashcards
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Sample Questions
Q1) Woodworking and dry cleaning shops are most likely to use which layout?
A) product
B) customer
C) process
D) cellular
Q2) Tamara is the owner of Baker's Dozen, a bakery with all perishable products. What will be her primary consideration in regard to location?
A) proximity to raw materials
B) proximity to her market
C) availability of transportation alternatives
D) proximity to labour supply
Q3) The critical path in a PERT chart represents the ______.
A) areas of operations that require the least amount of technical support
B) areas of operations that have abundant and extra time
C) sequence of operations that involves outside suppliers
D) sequence of operations that requires the longest time for completion
Q4) A fixed-position layout places the product in different spots.
A)True
B)False
Q5) How are production processes classified? Provide an example of each type.
Page 13
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Chapter 11: Customer-Driven Marketing
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202 Flashcards
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Sample Questions
Q1) A university offers alumni a special Visa card with the university's logo printed on the front. Each time the cardholder uses the card, the university receives a small percentage of the amount charged. This is an example of ______.
A) co-branding
B) co-marketing
C) a frequency marketing program
D) an affinity program
Q2) When McDonald's offered Madame Alexander gifts in its Happy Meals, both companies profited from the ______ arrangement.
A) co-marketing
B) co-branding
C) affinity program
D) transaction marketing
Q3) Identify ways in which marketing creates utility.
Q4) In the marketing era, businesses assumed that consumers would buy as a result of energetic sales efforts.
A)True
B)False
Q5) Outline the main interpersonal determinants of consumer behaviour.
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Chapter 12: Product and Distribution Strategies
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222 Verified Questions
222 Flashcards
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Sample Questions
Q1) Differentiate between business products and consumer products, with examples.
Q2) Complex, expensive products generally require long distribution channels. A)True
B)False
Q3) A food producer's goods are carried by thousands of grocery stores across the country. Which of the following distribution channels is the manufacturer most likely to use?
A) producer to retailer to consumer
B) producer to wholesaler to retailer to consumer
C) producer to wholesaler to wholesaler to retailer to consumer
D) producer to consumer
Q4) Which of the following is NOT a feature of the growth stage of a new product?
A) dramatic increase in sales
B) new customers join early users
C) competitors enter the field with alternative products and offers
D) profit declines
Q5) Wholesalers are classified on the basis of their ownership. A)True
B)False
Q6) Describe methods used to extend life cycle of a product.
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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) When a firm tries to differentiate its products, it often applies a concept known as ______.
A) positioning
B) the marketing mix
C) personal selling
D) product valuation
Q2) Describe and provide examples of the two basic types of advertising.
Q3) Limited availability can create product prestige.
A)True
B)False
Q4) Tanya is an account representative for an office supply corporation who frequently provides demonstrations to business professionals. When someone complained about the company's fax machine, Tanya viewed the situation as an opportunity to ______.
A) determine if the prospect has the ability to pay for the machine
B) propose alternative purchases
C) revise her approach to the prospect
D) extend the presentation and answer questions
Q5) Differentiate between skimming pricing and penetration pricing.
Q6) What is sponsorship and how do firms benefit from it?
Page 16
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Chapter 14: Using Technology to Manage Information
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155 Flashcards
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Sample Questions
Q1) Adobe Acrobat is an example of an application program.
A)True
B)False
Q2) Kyle is putting together a presentation for senior management analyzing a potential new market. He is using his computer to create charts or graphs that he will then show as slides. Which of the following software programs is Kyle most likely using to create his presentation?
A) Microsoft Word
B) Microsoft Excel
C) Microsoft Windows
D) Microsoft PowerPoint
Q3) ______ is software that gathers user information through the user's Internet connection without his or her knowledge, usually for advertising purposes.
A) Viruses
B) Trojan horse
C) Worm
D) Spyware
Q4) List and briefly explain the most widely used business applications of computers.
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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) Assets are shown in descending order of liquidity.
A)True
B)False
Q2) Public accountants are typically employees of the firm for which they are providing services.
A)True
B)False
Q3) Olga owns a business and is reviewing her company's current financial statements.
As a user of accounting information, Olga is most interested in using this information to ______.
A) evaluate credit risk
B) approve new issues of stocks and bonds
C) evaluate tax liabilities
D) plan and control
Q4) Which of the following represents the accounting equation?
A) Assets + Liabilities = Owners' Equity
B) Liabilities = Assets + Owners' Equity
C) Assets = Liabilities + Owners' Equity
D) Owners' Equity - Liabilities = Assets
Q5) Describe the importance of a cash budget and how it is organized.
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Chapter 16: The Financial System
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200 Flashcards
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Sample Questions
Q1) Do other countries have organizations that play roles similar as those played by the Bank of Canada?
Q2) Explain the main features of common shares.
Q3) Which of the following stock exchanges is the most international of all stock markets?
A) New York Stock Exchange (NYSE)
B) Toronto Stock Exchange (TSX)
C) London Stock Exchange
D) National Association of Securities Dealers Automated Quotation System (NASDAQ)
Q4) The two largest stock markets in the world are the ______ and the ______.
A) New York Stock Exchange; SP 500
B) Tokyo Stock Exchange; New York Stock Exchange
C) New York Stock Exchange; NASDAQ stock market
D) Tokyo Stock Exchange; London Stock Exchange
Q5) Out of the 50 largest banks in the world, ______ are Canadian banks.
A) less than five
B) between five and ten
C) between ten and fifteen
D) more than fifteen
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Chapter 17: Financial Management
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136 Flashcards
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Sample Questions
Q1) In many companies, a CEO is promoted to the position of CFO.
A)True
B)False
Q2) What is the purpose of a financial plan?
Q3) What is factoring and why is it regarded as a short-term financing option?
Q4) Define accounts receivable and explain how they are managed.
Q5) A company would most likely finance ______ using short-term sources.
A) inventory
B) buildings
C) another company
D) machinery
Q6) ______ would be the least likely to obtain a private placement.
A) Commercial banks
B) Pension fund managers
C) Small individual investors
D) Life insurance companies
Q7) What is the difference between risk and return, and how do financial managers try to balance the two, in order to maximize shareholders' return?
Page 20
Q8) Briefly explain the role of financial managers in an organization.
Q9) Explain the concept of leverage.
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Page 21