Business Fundamentals
Midterm Exam
Course Introduction
Business Fundamentals offers a comprehensive introduction to the core concepts and practices that drive modern organizations. The course covers essential topics such as management, marketing, finance, accounting, and operations, providing students with a holistic understanding of how businesses function and make decisions. Emphasis is placed on critical thinking, ethical considerations, and effective communication within a business context. Through case studies, real-world applications, and collaborative projects, students gain the foundational skills needed to analyze business environments and develop strategies for success in a dynamic global 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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Chapter 1: The Changing Face of Business
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181 Verified Questions
181 Flashcards
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Sample Questions
Q1) Relationship management concentrates on short-term interactions with customers.
A)True
B)False
Answer: False
Q2) Steve Jobs is a business leader who was able to anticipate what customers are looking for, and led his company to create products that meet those needs. This is an example of _____.
A) decision making
B) market research
C) outsourcing
D) critical thinking
Answer: D
Q3) Companies that are serious about ethical operations are likely to be socially responsible.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Business Ethics and Social Responsibility
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194 Verified Questions
194 Flashcards
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Sample Questions
Q1) Which of the following statements best justifies why a company should act in an ethical manner?
A) The government will take action if a firm fails to act ethically.
B) Acting ethically always maximizes profits in the short run.
C) Acting ethically will help a company to prosper in the long run.
D) The right thing to do is always the least expensive alternative.
Answer: C
Q2) The development of a corporate culture to support business ethics happens on four levels. Explain each of the four levels.
Answer: Ethical awareness is the foundation of an ethical climate. Employees need help in identifying ethical problems and need guidance in how to respond. Ethical reasoning involves ethics training programs to provide employees with the tools they need to evaluate ethical dilemmas and arrive at suitable decisions. Ethical action involves the structures and procedures that firms establish to enable their employees to follow ethical behaviour. Companies encourage ethical action by providing support for employees faced with dilemmas, such as an employee hotline. Ethical leadership charges each employee at every level with the responsibility for being an ethical leader. This principle requires that all employees be personally committed to the company's core values and be willing to base their actions on them.
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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) Giant oil companies such as BP (British Petroleum) and ExxonMobil are engaged in oligopoly competition.
A)True
B)False
Answer: True
Q2) Equilibrium price refers to the intersection of the supply and demand curves.
A)True
B)False
Answer: True
Q3) Assume the number of new home buyers suddenly increases. The demand curve for homes will likely shift upward and to the right.
A)True
B)False
Answer: True
Q4) Which of the following statements about demand curves is true?
A) When the price rises, demand increases.
B) When the price falls, demand decreases.
C) When the price falls, demand increases.
D) When the price falls, supply increases.
Answer: C
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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 Japanese insurance company purchases U.S. government securities. From the perspective of the United States, the balance of trade with Japan will ______ and the balance of payments with Japan will ______.
A) not change; improve
B) not change; get worse
C) improve; improve
D) improve; get worse
Q2) Identify and describe the major types of obstacles confronting international trade.
Q3) Which of the following groups is likely to be hurt economically if the value of the Canadian dollar rises relative to the euro?
A) Canadian tourists visiting Europe
B) European firms exporting goods to Canada
C) Canadian farmers exporting goods to Europe
D) Canadian firms with euro-dominated loans
Q4) Countertrade is another term for international bartering.
A)True
B)False
Q5) Discuss the various levels of involvement in international business.
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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) Shareholders are the de-facto owners of a corporation.
A)True
B)False
Q2) Most small businesses turn a profit within the first year.
A)True
B)False
Q3) Which of the following statements concerning preferred shares is FALSE?
A) Owners of preferred shares never have voting rights.
B) Preferred shareholders receive dividends before the holders of common shares.
C) In dissolution preferred shareholders have first claim of assets, after debt holders.
D) Any corporation can offer preferred shares.
Q4) Martha is a small business owner in Ontario and she should NOT worry about government regulations since the government support and provide incentives for small businesses to succeed.
A)True
B)False
Q5) Compare and contrast the three forms of business ownership.
Q6) Why are small businesses especially important to women?
Q7) Explain the role of corporate management.
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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) All entrepreneurs exhibit some common traits. Mention and explain five of those traits.
Q2) Paterno routinely bids on contracts even though most of the other bidders are extremely large firms. Paterno believes his company offers better service at lower prices. He is exhibiting which personality trait common in entrepreneurs?
A) creativity
B) tolerance for failure
C) high energy level
D) self-confidence
Q3) Financial success ______.
A) plays little role in motivating people to become entrepreneurs
B) is virtually guaranteed if people work hard enough starting their own businesses
C) rarely results from starting a business
D) is part of the appeal of becoming an entrepreneur
Q4) Explain the difference between debt financing and equity financing.
Q5) Entrepreneurs take necessary risks to set up and operate a business.
A)True
B)False
8
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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) The basic purpose of directing is to evaluate the success of the planning function.
A)True
B)False
Q2) Management is the process of achieving ______ through people and other resources.
A) profits
B) status
C) organizational objectives
D) societal objectives
Q3) How does strategic planning differ from tactical planning? Give an example of each type of planning.
Q4) Mario is part of a strategic planning team. He has identified that his company is the low-cost producer in its industry. This should be listed on a SWOT analysis as a(n) ______.
A) opportunity
B) weaknesses
C) strength
D) threat
Page 9
Q5) Compare the four types of organizational structures.
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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) Extrinsic rewards are rewards that are internal in the job such as feelings related to performing a job (proud about meeting a set deadline).
A)True
B)False
Q2) 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
Q3) As a manager in charge of hiring, you CANNOT disqualify a job applicants based on all of the following, EXCEPT
A) race.
B) education.
C) religion.
D) national origin.
Q4) What is downsizing? How is it different from outsourcing?
Q5) Explain the advantages of Internet recruiting.
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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 in communication can be the result of attitudes and perceptions.
A)True
B)False
Q2) Sandra is conversing with her real estate agent, whom Sandra believes is trying to sell her an expensive property in order to receive a greater commission. Sandra is engaged in offensive listening.
A)True
B)False
Q3) Not all teams actually pass through all five stages of team development.
A)True
B)False
Q4) Evan is listening to a voice message left by his manager, but he cannot understand most of it due to his manager's cell phone breaking up. Evan calls back his manager for the complete message since he CANNOT effectively communicate with this type of
A) conflict
B) grapevine
C) noise
D) nonverbal communication
Q5) Distinguish between cross-functional teams and problem-solving teams.
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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(n) ______ groups machinery and equipment according to their functions.
A)process layout
B)LEED certification
C)Gantt chart
D)PERT chart
E)inventory control
F)ISO
G)critical path
H)computer-integrated manufacturing
I)utility
J)perpetual inventory
K)materials requirement planning
L)standardization
M)routing
N)assembly line
O)robot
P)just-in-time
Q)benchmarking
R)synthetic production system
S)make, buy, or lease decision
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Page 12
Chapter 11: Customer-Driven Marketing
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202 Verified Questions
202 Flashcards
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Sample Questions
Q1) External data refer to data about other organizations.
A)True
B)False
Q2) Marketing segmentation is the group of potential customers toward whom an organization directs its marketing efforts.
A)True
B)False
Q3) Building long-term relationships with a few suppliers can actually lower production costs.
A)True
B)False
Q4) Approximately how much more does it cost to attract one new customer than to keep an existing one?
A) twice as much
B) three times as much
C) five times as much
D) about the same
Q5) A buyer's market is one characterized by an abundance of goods and services.
A)True
B)False
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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) Which of the following is NOT a consideration when deciding which distribution channel is most efficient?
A) product
B) producer
C) logistics
D) competition
Q2) Roberta stops at the grocery store to purchase detergent. Tide is her favourite brand, but if another detergent is less expensive, she buys it. Roberta is at which stage of brand loyalty?
A) brand insistence
B) brand awareness
C) brand preference
D) brand recognition
Q3) The new-product development stage that deals with the elimination of ideas that do NOT mesh with overall company objectives is ______.
A) testing
B) screening
C) commercialization
D) product development
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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) Define price and mention the various types of pricing objectives.
Q2) Employee volunteers clean up a neighbourhood playground. In the process, employees hand out free product samples from the company. This is an example of a publicity campaign.
A)True
B)False
Q3) Creative selling promotes a good or service whose benefits are NOT readily seen.
A)True
B)False
Q4) If a product sells for $20 and the variable costs are $14, then the per-unit contribution to fixed costs is $6.
A)True
B)False
Q5) The fundamental purpose of promotion is to inform customers about the benefits of products.
A)True
B)False
Q6) Advertising is a global activity.
A)True
B)False
Page 15
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Chapter 14: Using Technology to Manage Information
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155 Flashcards
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Sample Questions
Q1) ______ refers to the use of powerful servers that store application software and databases. Users can access stored information by using any Internet-connected device, such as a PC or a smartphone.
A) Grid computing
B) On-demand computing
C) Cloud computing
D) Utility computing
Q2) A virtual private network provides secure communication connections between two points on the Internet.
A)True
B)False
Q3) Sean is a salesperson and is visiting one of his largest clients. Before the visit, he reviewed the client's past purchases. Sean used the firm's ______ system.
A) expert
B) enterprise resource planning
C) executive information
D) decision support
Q4) How are computers classified?
Q5) 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) The complexity of the budgeting process varies with the size and complexity of the organization.
A)True
B)False
Q2) The budget establishes the standards with which actual performance may be compared.
A)True
B)False
Q3) A firm has $12 million in current assets, of which $8 million is inventory. If the company has $4 million in current liabilities, then its current ratio equals 1.0.
A)True
B)False
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.
Q6) Briefly define accrual accounting.
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Chapter 16: The Financial System
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200 Verified Questions
200 Flashcards
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Sample Questions
Q1) Purchasers of preferred shares are the true owners of a corporation.
A)True
B)False
Q2) Virtually all developed countries and many developing countries have stock exchanges.
A)True
B)False
Q3) The credit crisis came about because of subprime mortgages.
A)True
B)False
Q4) According to a recent survey, ______ were the highest users of Internet banking.
A) Canadians
B) Americans
C) Germans
D) the Swiss
Q5) Describe the role of the Bank of Canada.
Q6) As market interest rates rise, bond prices fall.
A)True
B)False
Q7) Identify borrowers and savers in the financial system.
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Chapter 17: Financial Management
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136 Verified Questions
136 Flashcards
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Sample Questions
Q1) Financial managers try to maximize the wealth of their firm's shareholders by ______.
A) increasing revenue
B) decreasing the uncertainty of gain or loss
C) striking a balance between risk and return
D) increasing the uncertainty of gain or loss
Q2) The exercise of employee stock options is a source of equity capital for a business.
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) Mention and briefly explain three sources of long-term financing options.
Q5) Define accounts receivable and explain how they are managed.
Q6) Elaborate on the steps involved in preparing a financial plan.
Q7) Explain the purposes of a financial plan.
Q8) What is the purpose of a financial plan?
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