Business Fundamentals
Exam Questions
Course Introduction
Business Fundamentals provides an essential overview of the core concepts, principles, and practices that form the foundation of the business world. Covering topics such as management, marketing, finance, operations, and entrepreneurship, this course introduces students to the dynamic environment in which businesses operate. Through case studies, practical examples, and interactive activities, students learn about organizational structures, business planning, decision-making processes, and the impact of technology and globalization on business practices. The course prepares students with the foundational knowledge and skills needed for further study or entry-level positions in the field of business.
Recommended Textbook
Future of Business 5th Canadian Edition by Norm Althouse
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18 Chapters
2559 Verified Questions
2559 Flashcards
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Chapter 1: Political Environment
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99 Flashcards
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Sample Questions
Q1) Which jurisdiction has responsibility for natural resources?
A) federal
B) provincial
C) municipal
D) community
Answer: B
Q2) What does a warranty guarantee?
A) The seller will replace or repair the product at no charge if the customer finds a cheaper substitute.
B) The buyer has read and understood the information provided in the owners' manual.
C) Consumers will have access to a customer complaint resolution hot line.
D) The product sold will be acceptable for the purpose for which the buyer intends to use it.
Answer: D
Q3) Describe some of the areas that the federal government has authority over.
Answer: Money and banking, trade regulation, external relations, defence, criminal law, employment insurance, copyrights and transportation.
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Chapter 2: Economic Environment
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160 Flashcards
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Sample Questions
Q1) Full employment is having jobs for all who want to work and can work. Full employment is never 100% but is defined by the government as which percentage?
A) 90-92%
B) 92-94%
C) 94-96%
D) 97-99%
Answer: C
Q2) There is lowered confidence in the markets today. Which of the following is NOT one of those reasons?
A) the inability of the United States to deal with its annual deficits
B) the inability of Europe to handle its financial problems
C) the decline in the price of oil
D) the sustainability in the global economic recovery
Answer: C
Q3) The higher the price of a good or service, the greater the quantity demanded.
A)True
B)False
Answer: False
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4
Chapter 3: Social Environment
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Sample Questions
Q1) In the PEST model of the business environment, the "S" represents which of the following concepts?
A) stability
B) standards
C) stakeholders
D) social
Answer: D
Q2) Cash donations of equipment and products and support for volunteer efforts of employees are all aspects of which of the following?
A) corporate philanthropy
B) whistle-blowing
C) social contract
D) social responsibility
Answer: A
Q3) Name the group that is the largest mass market demographic in Canada.
Answer: baby boomers
Q4) What is the term used to describe the group consisting of the employees, investors, suppliers, and consumers of a manufacturer of laboratory equipment?
Answer: stakeholders
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Chapter 4: Technological Environment
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Sample Questions
Q1) Which of the following is one of the most important roles that automated accounting functions are used for?
A) knowing how much is owed to the company
B) keeping up with accounts payable
C) tracking employees absences
D) monitoring revenues and expenses
Q2) Which of the following contributes to and benefits from information used in performing various tasks including acquiring, searching, analyzing, organizing, storing, programming, producing, distributing, marketing, or selling functions?
A) information technicians
B) knowledge workers
C) knowledge shareholders
D) information monitors
Q3) What is hardware or software designed to prevent unauthorized access to or from a private network?
A) brickwall
B) cyberwall
C) firewall
D) encrypted wall
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Page 6
Chapter 5: International Environment
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Sample Questions
Q1) When a country can produce and sell a product at a lower cost than any other country or when it is the only country that can provide a product, this is referred to as which of the following?
A) relative advantage
B) partial advantage
C) absolute advantage
D) comparative advantage
Q2) The balance of payments is the summary of a country's financial transactions with another country. Which of the following would you expect to see in such a summary?
A) political trade trip expenses
B) unemployment payments
C) military expenditures
D) advertising spending
Q3) The European Union has 35 member countries.
A)True
B)False
Q4) Companies can use several methods to participate in the global marketplace. To which of the methods is franchising most closely related?
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Chapter 6: Entrepreneurship and Small Business
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Sample Questions
Q1) Which of the following best describes the activity of an entrepreneur?
A) financing the business
B) locating the business
C) managing the business
D) owning and operating the business
Q2) Marc Adler is the owner of Macquarium, a multimillion-dollar communications company. Macquarium has done work for several large companies. Even though these companies could have prepared their videos and created their websites in-house, these tasks were handled in which of the following ways?
A) They were supplied outside normal channels.
B) They were autonomous productions.
C) They were allocated to a specialized firm.
D) They were outsourced.
Q3) Entrepreneurs, as a general group, dislike risk taking.
A)True
B)False
Q4) Small businesses are based locally and independently managed.
A)True
B)False
Q5) List reasons that small businesses thrive in Canada.
Page 8
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Chapter 7: Understanding the Business
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Sample Questions
Q1) Companies measure their ability to encourage creativity and innovation by which of the following?
A) percentage of sales that came from new ideas
B) number of ideas that are patented
C) how many creative awards they win
D) how many of their ideas are copied by other companies
Q2) An income statement is the financial statement that reports revenues, expenses, and profit or loss resulting from a company's operations over an accounting period.
A)True
B)False
Q3) XYZ company has just opened a factory in Bangladesh. Bangladesh has different laws than in Canada. The age that the law allows for young people to be employed full-time is much lower than in Canada. If XYZ hires employees who are younger than allowed by law in Canada but legal in Bangladesh what is the most likely outcome?
A) The company will save money but will have a negative reputation.
B) The company might have negative articles written about it in the newspaper.
C) The company will be charged under Canadian law.
D) The company will be charged under international law.
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Chapter 8: Forms of Business Ownership
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Sample Questions
Q1) What is a corporation that is owned by either the federal or provincial government?
A) civil corporation
B) government corporation
C) crown corporation
D) open corporation
Q2) What is double taxation in a corporation?
A) Corporations must pay both provincial and federal taxes.
B) Corporations can double their earnings without higher taxes.
C) The corporation must pay taxes twice a year.
D) Earnings of the corporation and dividends of the shareholders are both taxed.
Q3) Pete Yankin and Ken Lowery established a company that markets fishing expeditions. Yankin and Lowery share responsibilities for booking the trips, gathering supplies, and guiding groups into locations where they can fish for salmon. Since the two share any profit equally, what sort of business do they have?
A) sole partnership
B) general partnership
C) limited cooperative
D) general cooperative
Q4) List the three major types of mergers.
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Chapter 9: Management and Leadership in Todays Organizations
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Sample Questions
Q1) Asan Linhoud has a major decision to make regarding whether to create a new sales territory or simply add customers to existing territories. He asks for suggestions from his sales reps but will make his own decision. Which of the following leadership styles is Linhoud exhibiting?
A) consultative
B) participative
C) open door
D) group centred
Q2) Allyson Mae Tyler owns a company that makes organic cosmetics. She usually consults with her subordinates on important decisions, such as the addition of a new product or the discontinuation of an old one. She listens to their suggestions and lets them help make the decision. Which of the following describes her leadership style?
A) autocratic
B) multidimensional
C) participative
D) reactive
Q3) Strategic planning is put into action by lower levels of management.
A)True
B)False
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Chapter 10: Designing Organizational Structures
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Sample Questions
Q1) What is a major building block for an efficient and effective organizational structure?
A) division of control
B) span of labour
C) managerial hierarchy
D) departmentalization
Q2) American Express is organized into four divisions that cater to businesses, consumers, travellers, and investors. American Express uses which of the following types of departmentalization?
A) customer
B) geographic
C) process
D) product
Q3) What term best describes the type of organizational structure commonly found in the military?
Q4) A company that is decentralized has given a great deal of decision-making authority to lower-level managers.
A)True
B)False
Q5) What kind of power gives a supervisor the authority to make decisions?
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Chapter 11: Motivating Employees
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Sample Questions
Q1) Which motivational theory relies on feedback to identify the gap between the real and the ideal desired performance?
Q2) Anila Sudavarian works as a receptionist for a medical clinic from 8 a.m. until 12 noon five days a week. At noon, he is replaced by Louise Cho who works at the same job from noon until 4 p.m. Which of the following scheduling options is being used by Sudavarian and Cho?
A) job partnering
B) flextime
C) compressed workweek
D) job sharing
Q3) According to expectancy theory, the probability of an individual acting a particular way depends on the strength of belief the individual has.
A)True
B)False
Q4) Training workers by changing and varying jobs is called job rotation. A)True
B)False
Q5) What do telecommuting, flextime, and job sharing have in common?
Q6) What was the primary flaw in Frederick Taylor's scientific management?
Page 13
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Chapter 12: Managing Human Resources and Labour Relations
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Sample Questions
Q1) Which of the following statements best describes the employee selection process?
A) During the initial job screening, the applicant usually completes an application form and has a brief interview of 30 minutes or less.
B) The tool most widely used in making hiring decisions is the general aptitude test.
C) Like recruitment, selection considers only those applicants in the external job pool.
D) General aptitude tests are seldom, if ever, used in job screening.
Q2) The process of determining which persons in the applicant pool possess the qualifications necessary to be successful is called selection.
A)True
B)False
Q3) Which of the following is NOT one of the selection steps in hiring a new employee?
A) an intelligence test
B) initial screening
C) a selection interview
D) a background and reference check
Q4) What is human resources management?
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Page 14
Chapter 13: Marketing
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Sample Questions
Q1) Understanding that 22 percent of the population buys 84 percent of cereal products would be useful if cereal manufacturers wanted to segment their market according to which type of segmentation?
A) psychological
B) volume
C) benefit
D) demographic
Q2) Which of the following is an example of a social factor that influences the consumer decision-making process?
A) values
B) family
C) attitude
D) self-concept
Q3) What is the primary focus of not-for-profit marketers?
Q4) The categories of heavy, moderate, and light users have to do with which type of segmentation?
A) psychographic
B) benefit
C) demographic
D) volume
Page 15
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Chapter 14: Creating Marketing Strategies
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Sample Questions
Q1) Which of the following are the three intensities of market coverage?
A) partial, varietal, and interactive
B) contractual, hierarchical, and administrative
C) internal, external, and interactive
D) selective, exclusive, and intensive
Q2) Profit maximization is best described by which of the following?
A) obtaining the largest profit possible
B) having your supplier carry your inventory
C) building the lowest-cost product possible
D) selling your product at the highest price possible
Q3) What are airlines trying to achieve when they use frequent flyer programs, which give customers points that can be redeemed for free travel, rental cars, and other merchandise?
A) to get consumers to try their product
B) to create product awareness
C) to provide information
D) to increase the amount and frequency of use
Q4) What intensity of distribution is being used by Bic Corp, marketer of inexpensive pens, cheap lighters, and throwaway razors?
Q5) List the three sorting methods used in distribution channels.
Page 16
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Chapter 15: Achieving World-class Operations Management
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Sample Questions
Q1) When are Gantt charts most helpful?
A) when production routes are long and complex
B) when bottlenecks do not exist
C) when task times are less than one hour
D) when only a few tasks are involved
Q2) Which of the following combines computerized manufacturing processes with other computerized systems used before and after manufacturing?
A) flexible manufacturing
B) just-in-time manufacturing
C) computer-integrated manufacturing
D) computer-aided design
Q3) A listing of the components and the number of each required to make the product is called the bill of lading.
A)True
B)False
Q4) Define total quality management.
Q5) List the three most commonly used scheduling tools for complex production situations.
Q6) What is the relationship between mass production and customization?
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Chapter 16: Accounting for Financial Success
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Sample Questions
Q1) The $200 fee owed to a landscape designer for work done two months ago is an example of a note receivable.
A)True
B)False
Q2) What is the ratio of net annual credit sales to average accounts receivable (which measures the speed with which customers pay what they owe to the company)?
A) sales liquidity ratio
B) sales to cash ratio
C) bad debt expenses ratio
D) accounts receivable turnover ratio
Q3) What is the ratio of total current assets to current liabilities?
A) activity ratio
B) profitability ratio
C) current ratio
D) net margin ratio
Q4) A current asset is one that can or will be converted into cash within one year.
A)True
B)False
Q5) What is another name for the ratio of net profit to net sales?
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Chapter 17: Understanding Money and the Canadian Financial System
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Sample Questions
Q1) Mutual funds are prohibited from investing in bonds and government securities.
A)True
B)False
Q2) Securities are investment certificates issued by corporations or governments.
A)True
B)False
Q3) Alli Kamal loaned Textron Corporation $1,000 in the form of a bond purchase. Textron must pay back the $1,000 on August 1, 2015. The $1,000 is known as which of the following?
A) premium amount
B) market value
C) principal
D) book value
Q4) Another term for a chequing account is a time deposit.
A)True
B)False
Q5) The Canadian Deposit Insurance Corporation is governed by the Canada Deposit Insurance Corporation Act.
A)True
B)False
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Chapter 18: Finance
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Sample Questions
Q1) Which of the following are formal written forecasts of revenues and expenses that set spending limits based on operational forecasts?
A) profit and loss statements
B) business predictions
C) budgets
D) financial forecasts
Q2) Financial managers constantly strive for a balance between which of the following?
A) common and preferred shares
B) economic responsibility and social responsibility
C) cash and marketable securities
D) the opportunity for profit and the potential for loss
Q3) Which of the following is NOT one of the three most popular types of marketable securities?
A) certificates of deposit
B) treasury bills
C) stocks
D) commercial paper
Q4) What is another name for short-term forecasts?
Q5) What is risk management?
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