Business Fundamentals
Exam Practice Tests
Course Introduction
Business Fundamentals introduces students to the foundational concepts and practices essential for understanding and navigating the world of business. The course covers key topics such as management, marketing, finance, accounting, and operations, offering a comprehensive overview of how businesses are structured and operate. Emphasis is placed on critical thinking, ethical decision-making, and the development of practical skills required for entrepreneurial endeavors or entry-level positions in organizations. By exploring real-world case studies and contemporary business challenges, students gain insight into the dynamic environment of modern commerce and learn how to analyze and respond to business opportunities and risks.
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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Chapter 1: The Changing Face of Business
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181 Verified Questions
181 Flashcards
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Sample Questions
Q1) The use of blogs as a link between companies and their customers is on the decline.
A)True
B)False
Answer: False
Q2) In accounting terms, profits are ______.
A) the difference between revenues and expenses
B) the difference between commissions earned and receipts
C) the difference between sales and expenses
D) the sum of sales and expenses
Answer: A
Q3) For today's managers, which of the following is least important?
A) the ability to work by strict rules
B) vision
C) critical thinking skills
D) creativity
Answer: A
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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) Mica learns that her company is secretly dumping untreated waste into the city sewer systems, and she informs the local EPA office. All of the following describe Mica's ethical situation EXCEPT
A) she is acting as a whistle-blower.
B) she has a conflict of interest.
C) she is showing integrity.
D) she is showing loyalty.
Answer: D
Q2) Which of the following is NOT an example of unethical or illegal acts in the workplace?
A) safety violations
B) Internet abuse
C) misreporting time on the job
D) whistle-blowing
Answer: D
Q3) What is green marketing?
Answer: Green marketing is a marketing strategy that promotes environmentally friendly products and production methods. The Federal Trade Commission (FTC) has issued guidelines for businesses to follow in making environmental claims.
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Page 4
Chapter 3: Economic Challenges Facing Contemporary Business
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220 Verified Questions
220 Flashcards
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Sample Questions
Q1) The four different types of market structure in a private enterprise system are ______.
A) communism, socialism, capitalism, and mixed systems
B) pure competition, monopolistic competition, oligopoly, and monopoly
C) socialism, oligopoly, monopoly, and pure competition
D) mixed, socialism, communism, and pure competition
Answer: B
Q2) A shortage will occur if the market price is below the equilibrium price. A)True B)False
Answer: True
Q3) List five challenges to maintain global competitiveness.
Answer: Economic impact of the continuing threat of international terrorism, Shift to a global information economy, Aging of the world's population, Growth of China and India, Enhancing competitiveness of every country's workforce.
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Page 5
Chapter 4: Competing in World Markets
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200 Verified Questions
200 Flashcards
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Sample Questions
Q1) Since NAFTA, Canadian trade with Latin American countries has tripled.
A)True
B)False
Q2) ______ was the highest Canadian import in 2014.
A) Energy products
B) Consumer goods
C) Farming equipment
D) Metal ore and mineral
Q3) If a nation has an unfavourable balance of trade, it also has an unfavourable balance of payments.
A)True
B)False
Q4) U.S. sugar producers welcomed the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) because relaxed trade rules with Central America drove prices higher.
A)True
B)False
Q5) A favourable balance of trade is known as a trade surplus.
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) Taxes and government regulations are more significant issues for small businesses than for large businesses.
A)True
B)False
Q2) The form of business ownership that establishes the firm as a separate legal entity is the ______.
A)sole proprietorship
B)small business
C)corporation
D)merger
E)acquisition
F)horizontal merger
G)conglomerate merger
H)cooperative
I)vertical merger
J)business incubators
K)business plan
L)closed corporation
M)preferred stock
N)franchising
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Page 7
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) Entrepreneurs possess all of the following traits EXCEPT ______.
A) tolerance for ambiguity
B) creativity
C) low self-confidence
D) vision
Q2) The primary reasons people become entrepreneurs include all of the following reasons EXCEPT
A) to be one's own boss.
B) to become a financial success.
C) to create employment opportunities for other people.
D) to create one's own job security.
Q3) Studies confirm that the personality traits common to entrepreneurs are very similar to those required for managerial success.
A)True
B)False
Q4) What makes entrepreneurs unique is their overwhelming desire to ______.
A) become successful
B) utilize their creative energy
C) manage employees
D) make their business grow
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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) Departmentalization is the process of dividing work activities into units within the organization.
A)True
B)False
Q2) A local bookstore uses an organizational structure in which authority and responsibility are jointly held by the entire group rather than by a single manager. This company is using a ______ organizational structure.
A) functional
B) matrix
C) committee
D) line-and-staff
Q3) Jackie is a manager who spends most of her time in day-to-day decisions assigning non-managerial employees to specific jobs. Jackie is considered a ______ manager.
A) staff
B) supervisory
C) mid-level
D) technical
Q4) Explain the role of vision and ethical standards in business success.
Q5) List in order the steps involved in the strategic planning process.
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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) Collective bargaining encompasses all of the following issues EXCEPT ______.
A) employee wages
B) investor relations
C) working conditions
D) hours
Q2) What are flexible benefit plans?
Q3) Maslow believed that only unsatisfied needs influence behaviour.
A)True
B)False
Q4) A strike seeks to disrupt business as usual.
A)True
B)False
Q5) The Wonderlic test measures basic math and verbal skills and is considered an effective way to predict job performance.
A)True
B)False
Q6) Not-for-profit organizations avoid performance appraisals since they are focused on corporate philanthropy.
A)True
B)False Page 10
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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) Danielle belongs to a team that meets using information technology because they are dispersed across the country. Danielle belongs to a ______ team.
A) problem-solving
B) self-managed
C) cross-functional
D) virtual
Q2) A team consists of a group of people with ______ skills and ______ are responsible and accountable for accomplishing team objectives.
A) complementary; all team members
B) complementary; team leaders
C) differing; all team members
D) differing; team leaders
Q3) Explain the importance of 'team cohesiveness'.
Q4) What is the grapevine and what are the main disadvantages of this type of communication?
Q5) Teams need to get beyond the storming stage to achieve any real results.
A)True
B)False
Q6) Discuss why afflictive conflict can strongly decrease team performance.
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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) A firm that produces a variety of nonstandard products in relatively small quantities would probably use a ______ layout.
A) customer-oriented
B) process
C) product
D) fixed-position
Q2) Computer chip manufacturers, such as Intel, must be primarily concerned with ______.
A) availability of a water supply
B) community living conditions
C) proximity to markets
D) availability to energy
Q3) Provide two examples of uses for robots.
Q4) PERT is a scheduling technique designed to minimize production delays.
A)True
B)False
Q5) The production process converts inputs into outputs.
A)True
B)False
Q6) Distinguish between ISO 9000 and ISO 14000.
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Chapter 11: Customer-Driven Marketing
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202 Verified Questions
202 Flashcards
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Sample Questions
Q1) As its ultimate goal, relationship marketing seeks to achieve customer satisfaction.
A)True
B)False
Q2) Charlotte wants to purchase a new printer for her computer. She decides to stick with the brand she knows because of her experience with its efficiency and reliability. This is an example of a(n) ______.
A) interpersonal determinant
B) personal determinant
C) buying behaviour
D) recognition of a problem or opportunity
Q3) Brand loyalty refers to the degree to which consumers recognize, prefer, and insist on a particular brand.
A)True
B)False
Q4) Secondary data refers to previously published data.
A)True
B)False
Q5) Distinguish between person marketing and place marketing.
Q6) Define utility and list the four types of utility.
Page 14
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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) A new television set is classified as a specialty product.
A)True
B)False
Q2) Raoul's job is to make sure that his company's goods get from the warehouse to retailers in a timely fashion. Raoul's job involves the ______ function.
A) production
B) distribution
C) management
D) finance
Q3) Describe how services differ from goods.
Q4) Discuss the importance of brand loyalty and brand equity.
Q5) XYZ over the years has been using a brand name common to all its range of products. This type of branding is categorized as ______.
A) individual branding
B) strategic branding
C) tactical branding
D) family branding
Q6) Differentiate between a merchant wholesaler and an agent or broker in terms of title to the goods.
Page 15
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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) In-store displays are an example of trade promotion.
A)True
B)False
Q2) Describe the follow-up stage of the selling process. Why is this stage important?
Q3) Businesses often conduct a(n) ______ to determine the minimum sales volume a product must generate at a certain price level to cover all costs.
A)breakeven analysis
B)promotional mix
C)volume objectives
D)institutional advertising
E)discount pricing
F)creative selling
G)point-of-purchase advertising
H)skimming pricing
I)pushing strategy
J)odd pricing
K)integrated marketing communications
L)cooperative advertising
M)penetration pricing
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Page 16
Chapter 14: Using Technology to Manage Information
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155 Verified Questions
155 Flashcards
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Sample Questions
Q1) Theft of equipment is a type of computer crime.
A)True
B)False
Q2) Hannah is a television executive whose team conducted demographic research for new programs. Hannah will be expected to write a detailed ______ report about the impact of this study and the effect of the network's marketing strategy.
A) database
B) information
C) data
D) groupware
Q3) Despite improvement in technology in today's environment, specialized hand-held devices for various applications are NOT available to small businesses.
A)True
B)False
Q4) An especially powerful midrange computer is called a supercomputer.
A)True
B)False
Q5) Distinguish between operating systems and application software.
Q6) How are computers classified?
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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) Which of the following are NOT users of accounting information within an organization?
A) managers
B) union officials
C) it personnel
D) consumer groups
Q2) What is the purpose of the balance sheet? Explain how it is it organized.
Q3) Tangible assets consist of equipment, buildings, patents, and inventories.
A)True
B)False
Q4) Define GAAP and explain its purpose.
Q5) The accounting cycle involves converting information and individual transactions into financial statements. Summarizing transactions is the first step in the accounting cycle.
A)True
B)False
Q6) The Canadian Security Intelligence Service is an example of a governmental agency that hires accountants.
A)True
B)False Page 18
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Page 19
Chapter 16: The Financial System
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200 Verified Questions
200 Flashcards
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Sample Questions
Q1) Under the Bank Act, ______ is responsible for regulating the banking sector.
A) the municipal government
B) the federal government
C) financial minister
D) provincial government
Q2) Bonds with the highest level of risk are rated AAA.
A)True
B)False
Q3) All of the following statements are correct EXCEPT ______.
A) the number of commercial banks is declining each year
B) commercial banks are prohibited from selling securities or insurance
C) commercial banks are the most important financial institution
D) banks offer the widest range of services of any financial institution
Q4) A town is considering putting in a toll road that will produce revenue for the town. To provide funding, the town plans to sell revenue bonds.
A)True
B)False
Q5) Do other countries have organizations that play roles similar as those played by the Bank of Canada?
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Chapter 17: Financial Management
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136 Verified Questions
136 Flashcards
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Sample Questions
Q1) When a supplier agrees to receive payment at a later date for goods and services sold to a firm, trade credit has been extended by the supplier.
A)True
B)False
Q2) Private equity funds raise funds from wealthy individuals and institutional investors and invest the funds in ______.
A) only public companies
B) only private companies
C) both public and private companies
D) investors
Q3) Mention and briefly explain three sources of long-term financing options.
Q4) Define accounts receivable and explain how they are managed.
Q5) If a firm has numerous investment opportunities and wishes to finance some of them with equity funding, it will likely pay large dividends to shareholders.
A)True
B)False
Q6) Explain the difference between an expansion decision and a replacement decision.
Q7) Why is commercial paper an attractive short-term financing option?
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