Business Fundamentals
Midterm Exam
Course Introduction
Business Fundamentals introduces students to the essential principles and practices that underlie successful organizations. The course covers core topics such as management, marketing, finance, accounting, and economics, providing a comprehensive overview of how different business functions interact to achieve organizational goals. Through real-world case studies, interactive discussions, and practical assignments, students develop an understanding of the business environment, decision-making processes, and strategies for solving common challenges. By the end of the course, students will have a solid foundation in the key concepts and skills necessary for further study or entry-level roles in the business world.
Recommended Textbook
BUSN Introduction to Business 3rd Canadian Edition by Snow Kelly
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20 Chapters
3207 Verified Questions
3207 Flashcards
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Chapter 1: Business
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154 Verified Questions
154 Flashcards
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Sample Questions
Q1) A firm will experience a loss when its revenue is less than its expenses.
A)True
B)False Answer: True
Q2) What are business transactions that take place online examples of?
A) e-commerce
B) I-commerce
C) nano-commerce
D) meta-economics
Answer: A
Q3) Getting current customers to buy more of your product is a lot less expensive than convincing potential customers to try your product for the first time.
A)True
B)False Answer: True
Q4) Apple provides an excellent example of being on the leading edge.
A)True
B)False Answer: True
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Chapter 2: Business Ethics and Social Responsibility: Doing
Well by Doing Good
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168 Verified Questions
168 Flashcards
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Sample Questions
Q1) Which statement best describes a written code of ethics?
A) It tends to be ineffective in multinational corporations that have operations in nations with different cultures.
B) It is more important than corporate culture in the encouragement of ethical behaviour among employees.
C) It is a way to effectively establish ethical behaviour even if it is not consistently enforced.
D) It is a key element of a company's formal ethics program.
Answer: D
Q2) What is the term for a person who reports illegal or unethical behaviour within an organization?
A) a stakeholder
B) a horn tooter
C) a grandstander
D) a whistleblower
Answer: D
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Chapter 3: Economics: The Framework for Business
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170 Verified Questions
170 Flashcards
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Sample Questions
Q1) The government often allows only one company to provide electricity in a given geographic area because allowing several companies to do so would result in an inefficient duplication of infrastructure. What does this suggest about electric utilities?
A) They are natural monopolies.
B) They are oligopolies.
C) They are duopolies.
D) They are offering customers the right to choice.
Answer: A
Q2) Which statement best describes the result of competition among businesses?
A) It ensures that everyone is a winner.
B) It drives higher quality and lower prices in capitalism.
C) It is a primary feature of a communist economic system.
D) It is consistent with the goals of socialism.
Answer: B
Q3) Microeconomics is the study of broad, economy-wide issues such as the unemployment rate, gross domestic product, and inflation.
A)True
B)False
Answer: False
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Page 5
Chapter 4: The World Market-Place: Business Without Borders
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181 Flashcards
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Sample Questions
Q1) In recent years the rate of economic growth for both India and China has lagged well behind that of Canada.
A)True
B)False
Q2) One drawback of global trade is that it increases the risk to firms who must do business in many different countries.
A)True
B)False
Q3) Which statement best describes the key reasons Japanese companies like Sony and Toyota thrived during the 1990s?
A) The Japanese government implemented higher tariffs to protect these companies from foreign competition.
B) These companies reduced their risk by doing business globally instead of focusing on the Japanese market.
C) The yen was the world's strongest currency during this period.
D) The Japanese economy was growing very rapidly during that decade.
Q4) Global competition can keep prices low, which restrains the impact of inflation.
A)True
B)False
6
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Chapter 5: Business Formation: Choosing the Form That Fits
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145 Flashcards
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Sample Questions
Q1) One of the biggest trends in franchising for the past several years has been an expansion into overseas markets.
A)True
B)False
Q2) A business format franchise is a broad franchise agreement in which the franchisee pays for the right to use the name, trademark, and business and production methods of the franchisor.
A)True
B)False
Q3) Under a business format franchise, the franchisees pay royalties for the right to sell the product of the franchisor, but otherwise they have complete freedom as to how they manage their businesses.
A)True
B)False
Q4) General corporations normally are at a distinct disadvantage compared to other forms of business ownership when it comes to raising financial capital.
A)True
B)False
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Chapter 6: Small Business and Entrepreneurship: Economic
Rocket Fuel
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157 Verified Questions
157 Flashcards
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Sample Questions
Q1) Some people have a strong sense of personal responsibility for what happens in their lives. What do these people have?
A) an external locus of control
B) an intrapreneurial focus
C) an internal locus of control
D) a situational view of ethics
Q2) Aside from the long hours and hard work needed to start a new business, the decision to become an entrepreneur entails very few trade-offs.
A)True
B)False
Q3) The primary factor that influences many people to become entrepreneurs is the opportunity to make more money than they could earn if they worked for someone else.
A)True
B)False
Q4) Discuss three ways in which entrepreneurs finance their start-up companies.
Q5) The Forbes list of the 400 richest individuals is dominated by entrepreneurs.
A)True
B)False
8
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Chapter 7: Accounting: Decision Making by the Numbers
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188 Verified Questions
188 Flashcards
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Sample Questions
Q1) For what purpose would employees be most likely to use their employer's accounting information?
A) developing their personal financial plan
B) calculating their hourly wage rate
C) evaluating the financial performance of the company and making the case for pay raises or bonuses
D) assessing dynamic marketplace conditions for employment opportunities
Q2) Forensic accountants combine their knowledge of accounting with investigative skills.
A)True
B)False
Q3) What must publicly traded corporations in Canada have a public accountant do?
A) prepare the financial statements filed with Canada Revenue Agency
B) perform an annual external audit
C) address the shareholders at their annual meeting
D) perform standard horizontal, vertical, and ratio analyses
Q4) Accountants define cost as the value of what is given up in exchange for something else.
A)True
B)False
Page 9
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Chapter 8: Finance: Acquiring and Using Funds to Maximize Value
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Sample Questions
Q1) When the economy is booming and profits are increase, retained earnings tend to decrease.
A)True
B)False
Q2) Corporations sell commercial paper at a lower price than the amount the company will pay the holder when the paper comes due. The difference between the initial price and the price paid to the holder when the paper matures represents the interest earned on the note.
A)True
B)False
Q3) The manager of Timmy's Timbers, the local landscape company, realizes that he runs a seasonal business. For example, although his sales do not start coming in until April and May, he needs to be well-stocked in March in anticipation of the spring sales. What should he create to help plan for when the firm will need to arrange for additional funds in order to avoid a cash crunch?
A) cash budget
B) pro forma income statement
C) pro forma balance sheet
D) set of leverage ratios
Page 10
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Chapter 9: Financial Markets: Allocating Financial Resources
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Sample Questions
Q1) Jasmine is an investment broker for a large firm. Understanding overall market conditions helps her advise her clients who invest in stocks and mutual funds. Which of the following are indices that are commonly used to describe the price movement of securities in the U.S. market?
A) the DJIA and the S&P 500
B) the FTSE 100 and the Rittnauer Index
C) the Fortune 500 and the Turbo 900
D) the Nikkei 225 index and the Boston Big Index
Q2) Describe how investors can track the performance of their investments.
Q3) On which market do the stocks of firms that don't meet listing requirements for stock exchanges trade?
A) over-the-counter market
B) limited offer market
C) private equity market
D) under-the-table market
Q4) Which of the following is the most common depository intermediary?
A) brokers
B) banks
C) trust companies
D) credit unions
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Chapter 10: Marketing: Building Profitable Customer
Connections
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183 Verified Questions
183 Flashcards
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Sample Questions
Q1) Survey research involves an interaction between the researcher and the research subjects.
A)True
B)False
Q2) Cultural, social, personal, and psychological factors all influence a consumer's purchasing decisions.
A)True
B)False
Q3) Which of the following is the customer's perception that a product has a better relationship than any competitor between the cost and the benefits?
A) utility
B) customer satisfaction
C) marketing
D) value
Q4) Although both B2C and B2B marketers segment their markets, they use somewhat different categories.
A)True
B)False
Q5) Explain the global marketing mix and its impact on businesses.
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Chapter 11: Product and Promotion: Creating and Communicating Value
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335 Verified Questions
335 Flashcards
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Sample Questions
Q1) Suzanne received a coupon in the mail for a new shampoo. If she uses the coupon to purchase the shampoo, the manufacturer's pull strategy has succeeded.
A)True
B)False
Q2) As the general manager of KTRV radio 1030, you are trying to take advantage of changes in technology to increase the number of listeners to your station. Which of the following is a strategy you could employ?
A) Change the call letters for your station to something easier to remember.
B) Gain more control over your message by making greater use of publicity.
C) Eliminate advertising.
D) Develop an online radio website.
Q3) Products fall into two broad categories: consumer products and business products.
A)True
B)False
Q4) Identify a product that you believe has a very effective promotional mix, and describe the elements of this mix. Explain why you think this mix was effective.
Q5) There are six key stages in the sales process. Define and describe each.
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Chapter 12: Distribution and Pricing: Right Product, Right
Person, Right Place, Right Price
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175 Verified Questions
175 Flashcards
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Sample Questions
Q1) CDz, a local music and video retailer, spends $250 a month in advertising and inventory management. The business buys videos at a cost of $6.00 per unit and then sells each unit for $16.00. To break even in any one month, how many units would CDz have to sell?
A) 25 units
B) 15 units
C) 10 units
D) 5 units
Q2) What do we call an intermediary that takes legal possession of the goods being distributed?
A) an ownership utility
B) a channel of distribution
C) supply chain management
D) a merchant wholesaler
Q3) Fixed costs are those costs companies incur regardless of the number of units sold.
A)True
B)False
Q4) Identify the main types of wholesalers, and describe the functions they perform.
Q5) What is breakeven analysis? Describe how marketers use this tool.
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Chapter 13: Management, Motivation, and Leadership: Bringing Business to Life
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213 Verified Questions
213 Flashcards
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Sample Questions
Q1) A firm that often works on special projects requiring the cooperation of people from several different functional areas would be likely to prefer a line organization for these projects.
A)True
B)False
Q2) Due to the fact that the work that nurses perform has a major impact on the welfare of others, nursing jobs normally have a high level of which of the following?
A) autonomy
B) skill variety
C) task identity
D) task significance
Q3) Strategic planning is high-level, long-term planning that establishes a vision for the company, defines long-term objectives and priorities, determines broad action steps, and allocates resources.
A)True
B)False
Q4) What is strategic planning? What are the key steps of the strategic planning process?
Q5) Define management hierarchy, and list the levels of responsibility.
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Chapter 14: Human Resource Management: Building a Top-Quality Workforce
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Sample Questions
Q1) Alejandro is a human resources manager at a mid-sized corporation. Many of his company's key employees are members of the baby boom generation. Which of the following challenges is Alejandro most likely to face in the coming years due to this situation?
A) Workers in this generation tend to be more litigious than workers in other generations, so Alejandro should be prepared for one or more lawsuits.
B) These workers are unlikely to have much loyalty to the company.
C) Baby boomers tend to have an unprecedented sense of entitlement, so they will expect pay raises and other perks even if they haven't really earned them.
D) The company is likely to face the loss of key personnel as more of these individuals retire.
Q2) Job analysis is the examination of specific tasks assigned to a position, independent of who might be holding the job at any specific time.
A)True
B)False
Q3) What problems do human resource managers face when they try to make a strategic contribution to their firm's business success? How can they overcome these problems?
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Chapter 15: Managing Information and Technology: Finding
New Ways to Learn and Link
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163 Verified Questions
163 Flashcards
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Sample Questions
Q1) Spam filters are guaranteed to stop spammers from forcing people to give private information on the Internet.
A)True
B)False
Q2) Discuss the four advantages businesses enjoy by using e-marketplaces.
Q3) PracticeAdmin Practice Management Software is an on-demand, full-featured medical practice management/medical billing software designed by a physician. Which of the following describes this type of specialized application that is used in a particular industry?
A) system software
B) vertical market software
C) horizontal market software
D) operating system software
Q4) Utility programs are supplemental operating system software, such as firewalls, spam blockers, and other security software.
A)True
B)False
Q5) Explain the roles that hardware and software play in a computer system. How does system software differ from applications software?
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Chapter 16: Operations Management: Putting It
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Sample Questions
Q1) In the terminology of the critical path method, what is a critical path?
A) It is the sequence of activities that is expected to take the longest time to complete.
B) It is the composite of tasks in a project that have predecessors; the predecessors are critical to the accomplishment of subsequent tasks.
C) It is a path that includes two or more activities that must be performed simultaneously, and therefore poses complex coordination problems.
D) It is the series of tasks that is expected to take the shortest time to complete.
Q2) How does a company decide where to locate a business facility?
A) The decision is almost always based on the availability of skilled labour.
B) The decision usually requires the analysis of several different factors, but the importance of each factor tends to vary according to the specific type of industry.
C) The decision is made based on the expense of purchasing the land.
D) The decision usually boils down to where the top manager wants to live.
Q3) In recent years the trend has been to rely less on outsourcing.
A)True
B)False
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Chapter 17: Business Communication: Creating and Delivering Messages That Matter
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Sample Questions
Q1) Barriers to communication can't be eliminated, so the best approach is to ignore them and repeat your message several times in order to "break through" these barriers.
A)True
B)False
Q2) Which of the following is a basic category of communication barriers?
A) cultural barriers
B) holistic barriers
C) monetary barriers
D) clothing barriers
Q3) What is one characteristic of good business writing?
A) It never ends sentences with a preposition.
B) It avoids contractions whenever possible.
C) It uses the active voice.
D) It never uses personal pronouns.
Q4) Some restaurants have accommodated yakkers by going so far as to offer universal chargers as free customer service.
A)True
B)False
Q5) Describe three factors used to analyze an audience.
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Chapter 18: Labour Unions and Collective Bargaining
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Sample Questions
Q1) The union representing hourly workers at the Hillsburgh Auto Plant is gearing up for negotiations. The negotiating team is working on a list of demands. They intend to use whatever tactics are necessary to get the company to accept these demands. For its part, the management team plans to push hard to get the union to give up many of its benefits in order to cut costs. The attitudes of the two sides suggest this negotiating process will be an example of which of the following?
A) distributive bargaining
B) the jawboning method of bargaining
C) interest-based bargaining
D) binding arbitration
Q2) Arbitration is a process in which a neutral third party has the authority to resolve a dispute by rendering a binding decision.
A)True
B)False
Q3) Explain how labour contracts are negotiated. Disagreements about documents as long and complex as labour contracts are not unusual. Name and describe the procedure workers can follow if they feel their employer has not lived up to the collective bargaining agreement.
Q4) Explain the types of topics discussed in a collective bargaining process.
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Chapter 19: Business Law
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Sample Questions
Q1) A key duty of the agent in a principal-agent relationship is to act in the best interests of the principal.
A)True
B)False
Q2) A statute of limitations limits the size of monetary payments a jury can award to the injured party in civil trials.
A)True
B)False
Q3) A tort is a private wrong that results in physical or mental harm to an individual or damage to that person's property.
A)True
B)False
Q4) June has suffered from severe back problems because she slipped on some liquid detergent that Henrietta carelessly dropped. Henrietta meant to clean up the spill but got distracted and forgot to do so. June intends to sue Henrietta. If she does so, she will most likely seek to have June found liable for an intentional tort.
A)True
B)False
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Chapter 20: Personal Finance
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Sample Questions
Q1) As a conservative investor you are concerned about the preservation of capital and are not concerned with capital gains. Based on this information, which of the following should you consider investing in?
A) government bonds
B) corporate bonds
C) corporate stock
D) mutual funds
Q2) New credit card legislation passed and signed by the prime minister in 2009 requires credit card companies to give credit card holders a 90-day grace period.
A)True
B)False
Q3) Dividends are only paid if the corporation's board of directors declare them.
A)True
B)False
Q4) When you purchase stock in a company you purchase a share of ownership in the corporation.
A)True
B)False
Q5) Evaluate strategies to help build a sufficient savings and emergency fund.
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