Contemporary Business Issues
Exam Practice Tests
Course Introduction
This course explores the dynamic challenges and trends shaping todays business landscape, emphasizing critical issues such as globalization, sustainability, ethical decision-making, technological advancements, and corporate social responsibility. Through case studies, current events, and interactive discussions, students will develop an understanding of how businesses navigate complex environments, adapt to rapid change, and respond to emerging economic, social, and regulatory pressures. The course equips learners with analytical tools and insights necessary to critically assess and address the pressing issues impacting modern organizations both locally and globally.
Recommended Textbook
Business Eighth Canadian Edition by
Ricky W. Griffin
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19 Chapters
4123 Verified Questions
4123 Flashcards
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Page 2
Chapter 1: Understanding the Canadian Business System
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213 Verified Questions
213 Flashcards
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Sample Questions
Q1) A situation where there are many buyers,a lot of product differentiation,and relative ease of entry or exit of the market is known as
A) oligopolistic competition.
B) monopoly.
C) pure competition.
D) monopolistic competition.
E) oligopoly.
Answer: D
Q2) G.S.T.is considered a regressive tax because
A) food and drugs are often exempt.
B) the more a person makes,the lower the rate of sales tax that is applied to that person's purchase.
C) it is unfair.
D) poorer people pay a higher percentage of their income than richer people.
E) it is designed to discourage the purchase of certain products.
Answer: D
Q3) Coke and Pepsi are competitors within an oligopoly.
A)True
B)False
Answer: True
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Chapter 2: Understanding the Environments of Business
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225 Verified Questions
225 Flashcards
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Sample Questions
Q1) Porter's five forces model includes all of the following except A) substitutes.
B) threat of potential entrants.
C) buyers.
D) suppliers.
E) threat of replacement products.
Answer: E
Q2) Enterprise Resource Planning is an example of a process technology.
A)True
B)False Answer: True
Q3) A hostile takeover occurs when one organization buys enough of another company's shares to take control of that company even though that company may be opposed to the takeover.
A)True
B)False Answer: True
Q4) What is R&D intensity?
Answer: R&D spending as a percentage of the company's sales revenue.
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Chapter 3: Conducting Business Ethically and Responsibly
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237 Verified Questions
237 Flashcards
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Sample Questions
Q1) Ken is using confidential information to gain from the purchase of sale of stock.Ken is guilty of
A) greenmail.
B) cheque kiting.
C) misrepresentation of finances.
D) a rollover.
E) insider trading.
Answer: E
Q2) When Sony Ericsson hired models to pose as "tourists" who asked real tourists if they would take their picture with Sony's new camera cellphone,this was an example of A) advertising of a counterfeit brand.
B) morally objectionable advertising.
C) lack of truth-in-advertising.
D) misleading price advertising.
E) stealth advertising.
Answer: E
Q3) You are managing a company that either has to cut the dividend or cut 10% of the company's workforce.What do you do? Why?
Answer: Answers will vary,depending on individual values and beliefs.
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Page 5
Chapter 4: Understanding Entrepreneurship, small
Business, and New Venture Creation
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221 Verified Questions
221 Flashcards
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Sample Questions
Q1) A limited partnership attempts to
A) avoid the problem of unlimited liability for the owners.
B) limit the number of partners who may purchase a share of ownership.
C) provide for continuity of operation upon the departure of one of the partners.
D) limit the number of partners who may vote at board meetings.
E) limit the geographical area of operation for a business firm.
Q2) A financial forecast includes all of these items except A) a cash budget.
B) an estimate of start-up costs.
C) an income statement.
D) a listing of potential customers.
E) a balance sheet.
Q3) What are the two most important questions to ask when evaluating an idea for market and financial viability?
Q4) A new venture is a recently formed business that provides goods,but not services,for sale.
A)True
B)False
Q5) What is an intraprenuer?
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Chapter 5: The Global Context of Business
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213 Verified Questions
213 Flashcards
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Sample Questions
Q1) Which of the following is likely to happen if the demand for Canadian goods increases?
A) The value of the dollar will decrease.
B) The demand for the dollar will decrease.
C) The demand for goods will have little or no effect on the dollar.
D) The demand for the dollar will increase.
E) It is not possible to say.
Q2) If the Canadian dollar becomes weak compared to the Japanese yen,which of the following is likely to occur?
A) Demand for goods would be unaffected by currency changes.
B) Japanese products would become cheaper in Canada.
C) It would take fewer dollars to buy the same number of yen.
D) Canadian products would become less expensive in Japan.
E) Japanese demand for goods from Canada would fall.
Q3) Which of the following is not an example of adapting to customer needs?
A) McDonald's selling wine in France
B) McDonald's selling Big Macs in India
C) Ford products having steering wheels mounted on the right in England
D) Movies being dubbed in another language
E) All of these are examples of adapting to customer needs
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Chapter 6: Managing the Business Enterprise
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252 Verified Questions
252 Flashcards
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Sample Questions
Q1) Montreal-based Gildan Activewear is pursuing what kind of business-level strategy?
A) Investment reduction
B) Cost leadership
C) Differentiation
D) Focus
E) Horizontal integration
Q2) Explain the three types of managers and what skills are necessary for their job.
Q3) What is the primary purpose of setting a goal for an organization?
A) It determines if the firm is highly leveraged.
B) It makes workers think in quantitative terms.
C) It identifies threats and opportunities.
D) It assures successes for the firm.
E) It provides guidance and direction for all managers.
Q4) Volvo's strategy of stressing safety is an example of a differentiation strategy.
A)True
B)False
Q5) List the five basic management skills.
Q6) What are the characteristics of a good goal?
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Chapter 8: Managing Human Resources
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228 Verified Questions
228 Flashcards
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Sample Questions
Q1) Describe the human resources development process.
Q2) The two basic processes of external staffing are recruitment and selection. A)True
B)False
Q3) What does the organization hope to accomplish in a recruiting effort? Identify ways that this recruiting may be accomplished.
Q4) The process of determining the predictive value of information is called validation.
A)True
B)False
Q5) A few years ago,McMaster University president Peter George had his performance evaluated by staff,union leaders,and board members.This was an example of A) on-the-job training.
B) off-the-job training.
C) vestibule training.
D) 360-degree feedback.
E) a management development program.
Q6) What is the difference between job analysis,job description,and job specification?
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Page 9
Chapter 9: Understanding Labourmanagement Relations
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163 Verified Questions
163 Flashcards
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Sample Questions
Q1) Explain the difference between a closed shop,an open shop,a union shop,and an agency shop.
Q2) What is a labour union? Why is it formed and what purpose does it serve?
Q3) The Airline Pilots Union has gone out on strike against High Flyer Airlines.In support of their brother union,the Flight Attendants Union has also gone out on strike.This is called
A) a lockout.
B) a boycott.
C) a sympathy strike.
D) a wildcat strike.
E) picketing.
Q4) Traditionally,union members have been predominantly women.
A)True
B)False
Q5) The ________ recognized the right of employees to bargain collectively.
A) Industrial Disputes Investigation Act
B) Canadian Labour Congress
C) Privy Council Order 1003
D) Constitution Act (1867)
E) Canada Labour Code
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Chapter 10: Motivating and Leading Employees
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261 Verified Questions
261 Flashcards
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Sample Questions
Q1) The benefits from having satisfied employees include all of the following except A) less productivity.
B) harder effort to make a contribution.
C) greater commitment to work.
D) fewer complaints.
E) usually better attendance.
Q2) Tina is the most productive employee in her department.When her manager retires,Tina doesn't apply for the job,in spite of her excellent record and the pay and prestige associated with the job.She believes that the job will go to someone who has more seniority.Based on expectancy theory,Tina doesn't apply for the job based on A) the performance-rewards issue.
B) her personal goals.
C) the effort-performance issue.
D) the rewards-personal goals issue.
E) none of these.
Q3) What is the Hawthorne effect?
Q4) How do the trait and behavioural approaches differ?
Q5) What is a psychological contract?
Q6) How do expectancy theory and equity theory differ?
Page 11
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Chapter 11: Producing Goods and Services
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201 Verified Questions
201 Flashcards
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Sample Questions
Q1) A supermarket has far more cash registers than it needs on an average day.This illustrates the need for a high-contact service to have capacity that meets peak demand.
A)True
B)False
Q2) By accepting major credit cards,a retail outlet creates
A) price utility.
B) time utility.
C) ownership utility.
D) form utility.
E) place utility.
Q3) Betty is a production supervisor in a leather goods factory.Her main responsibility is operations control.Betty would probably be most concerned with
A) determining what products to produce.
B) deciding how to produce products.
C) deciding on product pricing.
D) ensuring that production plans or schedules are met.
E) deciding where to produce the products.
Q4) What is the first step in the operations planning and control process?
Q5) Give an example of a product that is produced through an analytic process.
Page 12
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Chapter 12: Increasing Productivity and Quality
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175 Verified Questions
175 Flashcards
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Sample Questions
Q1) What is a quality/cost study?
Q2) Total quality management (TQM)includes all the activities that are necessary for getting high-quality goods and services into the marketplace.
A)True
B)False
Q3) In planning for quality,managers must set goals for both performance quality and quality reliability.
A)True
B)False
Q4) What are the steps involved in the re-engineering process?
Q5) Productivity is measured by a ratio of inputs to quality.
A)True
B)False
Q6) Business process re-engineering is designed to improve both the productivity and the quality of business processes.
A)True
B)False
Q7) What is employee empowerment?
Q8) What is TQM and why is it important?
Page 13
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Chapter 13: Managing Information Systems and Communication Technology
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197 Verified Questions
197 Flashcards
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Sample Questions
Q1) Computer graphics programs convert numeric and character data into pictorial information such as charts,graphs,and cartoon characters.
A)True
B)False
Q2) Marilyn approves claims at an insurance company.She would likely use _____________ to help her in her work.
A) artificial intelligence
B) a transaction processing system
C) an expert system
D) a decision support system
E) an executive support system
Q3) Karen is an IT specialist with Link Systems Ltd.She wants to make sure that the company's computer system is not overloaded by unwanted emails.To achieve this goal,she is most likely to use
A) a firewall.
B) encryption software.
C) spyware.
D) a spam filter.
E) anti-virus software.
Page 14
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Chapter 14: Understanding Accounting Issues
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212 Verified Questions
212 Flashcards
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Sample Questions
Q1) Explain the three basic financial statements and show how they reflect the activity and financial condition of a business.
Q2) Earnings per share determines the firm's ability to pay its long-term debt.
A)True
B)False
Q3) John wants to determine gross profit for his company.To do so,he must subtract the cost of goods sold from gross sales revenue.
A)True
B)False
Q4) Identify an activity ratio and what it measures.
Q5) What is the formula for return on equity?
Q6) The current ratio is an example of ________,while earnings per share is an example of __________:
A) a long-term solvency ratio; a leverage ratio
B) a short-term solvency ratio; an activity ratio
C) a short-term solvency ratio; a profitability ratio
D) a leverage ratio; a profitability ratio
E) an activity ratio; a profitability ratio
Q7) Identify the solvency ratios and what they measure.
Page 15
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Chapter 15: Understanding Marketing Processes and Consumer Behaviour
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227 Verified Questions
227 Flashcards
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Sample Questions
Q1) Advertising to make people more aware of the hazards of drinking and driving is an example of
A) industrial marketing.
B) relationship marketing.
C) service marketing.
D) idea marketing.
E) consumer marketing.
Q2) Information seeking is the first stage in the consumer buying process.
A)True
B)False
Q3) What causes most pricing errors in small business firms?
A) Owners select poor locations for service firms.
B) Owners don't know the price of their competitors' products.
C) Entrepreneurs introduce new products that they like but for which there is no market.
D) Over-reliance on word-of-mouth advertising results in potential customers who do not know about the product or service.
E) Failure to project operating expenses accurately
Q4) List the components of the organizational market.
Q5) What is the last step in the consumer buying process?
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Chapter 16: Developing and Promoting Goods and Services
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241 Verified Questions
241 Flashcards
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Sample Questions
Q1) Automobiles and colour TVs are in the ________ stage of their product life cycle.
A) introduction
B) growth
C) decline
D) maturity
E) development
Q2) Sally selected ________ advertising because it is relatively inexpensive,faces little competition for customers' attention,and is subject to high repeat exposure.
A) outdoor
B) magazine
C) television
D) direct mail
E) radio
Q3) The prominence of the Coca-Cola brand on a show like American Idol is an illustration of the product placement strategy.
A)True
B)False
Q4) What are the three categories of brand names?
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Page 17
Chapter 17: Pricing and Distributing Goods and Services
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232 Verified Questions
232 Flashcards
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Sample Questions
Q1) A product's cost plus ________ results in the sales price.
A) margin
B) variable price
C) fixed price
D) markup
E) break-even price
Q2) What are the basic types of retail outlets?
Q3) Channel number one of the consumer products distribution network has the following participants:
A) manufacturer - agent - consumer
B) manufacturer - industrial user
C) manufacturer - consumer
D) manufacturer - retailer - consumer
E) manufacturer - wholesaler - retailer - consumer
Q4) A break-even analysis is used to determine how many units must be sold at a given price before the company begins to make a profit.
A)True
B)False
Q5) Describe the advantages of pipelines as a mode of transportation.
Q6) What are four types of transporting companies?
Page 18
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Chapter 18: Understanding Money and Banking
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207 Flashcards
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Sample Questions
Q1) If Sally says she has purchased $250.00 worth of groceries,she is referring to money as
A) a unit of account.
B) a method of divisibility.
C) a medium of exchange.
D) a store of value.
E) a measure of stability.
Q2) A(n)________ card is a credit card-sized computer that can be programmed with "electronic money."
A) e-
B) ecash
C) debit
D) smart
E) NetCash
Q3) A sales finance company finances installment purchases only for consumers,not businesses.
A)True
B)False
Q4) What is the prime rate of interest?
Q5) Identify the components of the M-2 money supply.
Page 19
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Chapter 19: Understanding Securities and Investments
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Sample Questions
Q1) What should an investor consider when selecting an investment broker?
Q2) A corporation bond selling at 155 1/4 would cost a buyer $1552.50.
A)True
B)False
Q3) New securities are traded in the ______________,while existing securities are traded in the _____________.
A) primary securities market; secondary securities market
B) equity market; debt market
C) debt market; equity market
D) secondary securities market; primary securities market
E) common stock market; preferred stock market
Q4) Mega Computer issued stock with a face value of one cent and then sold the shares to the public for $20.00 each.Ted bought 10 shares at that price.Today,Ted sold his shares to David for $25.00 each.What is the market value of the stock?
A) $50.00
B) $25.00
C) $20.00
D) $19.99
E) $0.01
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Chapter 20: Financial Decisions and Risk Management
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228 Flashcards
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Sample Questions
Q1) ________ are at the heart of financial control.
A) Accounting managers
B) Budgets
C) Approval sign-offs
D) Financial managers
E) Authorized spending levels
Q2) When is a commitment fee required of the borrower by a lending institution?
A) When using a revolving credit agreement in which the bank holds an open line of credit for a borrower
B) When issuing commercial paper
C) A commitment fee is never required because it is illegal for lending institutions to charge a commitment fee
D) When using collateral to secure a bank loan
E) When using trade credit
Q3) What is the difference between pure and speculative risk?
Q4) Small businesses often fail to consider venture capital as a source of funding,and they are notorious for not planning cash-flow needs properly.
A)True
B)False
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