Foundations of Canadian Business Exam Practice Tests
Course Introduction
Foundations of Canadian Business offers an in-depth exploration of the principles, structures, and environments shaping commercial activities in Canada. The course introduces students to the historical evolution of Canadian business, examining the role of government, Indigenous perspectives, economic regions, and multicultural factors that define the marketplace. Key topics include the Canadian legal and regulatory framework, entrepreneurial trends, ethics, sustainability, and the impacts of globalization. Through case studies and current events, students develop a comprehensive understanding of Canadian business dynamics and gain essential skills for further studies or careers in the field.
Recommended Textbook
Business Essentials 8th Canadian Edition by
Ronald J. Ebert
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15 Chapters
4158 Verified Questions
4158 Flashcards
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Chapter 1: Understanding the Canadian Business System
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250 Verified Questions
250 Flashcards
Source URL: https://quizplus.com/quiz/27146
Sample Questions
Q1) Something that would contribute directly to improving labour as a factor of production would be
A) finding new oil reserves.
B) better education for more of the population.
C) increasing the purchasing power of employees.
D) programs designed to decrease unemployment.
E) finding more efficient ways to produce products.
Answer: B
Q2) What does the demand curve show?
Answer: The demand curve shows how many products will be demanded at different prices.
Q3) In monopolistic competition, sellers try to make their products appear at least slightly different from those of other competitors by tactics such as brand names, design, styling, and advertising.
A)True
B)False
Answer: True
Q4) What is a business?
Answer: A business is an organization that provides goods or services that are sold to earn profits.
Page 3
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Chapter 2: The Environment of Business
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235 Verified Questions
235 Flashcards
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Sample Questions
Q1) Which of the following best describes the breadth of socio-cultural environment factors?
A) Customs, attitudes, and values
B) Demographic characteristics, customs, and values
C) Values, attitudes, customs, and demographic characteristics
D) Customs, values, religious beliefs, and consumer wealth
E) Values, religious beliefs, and consumer wealth
Answer: E
Q2) If casinos notice an increase in business due to the fact that many people no longer regard gambling as wrong, this demonstrates a change in the ________ dimension of their external environment.
A) socio-cultural
B) technological
C) global
D) political-legal
E) economic
Answer: A
Q3) List the four phases in the business cycle.
Answer: The four phases are peak, recession, trough, and recovery.
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Page 4
Chapter 3: Conducting Business Ethically and Responsibly
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275 Verified Questions
275 Flashcards
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Sample Questions
Q1) Cartier Partners Financial Services Inc. provides the local swim team with a cash donation to help pay for the swim meet each year, but the team has to make its case to the company each year. Cartier's stance to social responsibility is
A) defensive.
B) obstructionist.
C) accommodative.
D) proactive.
E) responsive.
Answer: C
Q2) It is illegal to misrepresent a company's finances, but the situation regarding improper financial mismanagement is not so clear.
A)True
B)False
Answer: True
Q3) What is a social audit?
Answer: A social audit is a systematic analysis of a firm's success in using funds earmarked for meeting its social responsibility goals.
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Chapter 4: Entrepreneurship, Small Business, and New
Venture Creation
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243 Verified Questions
243 Flashcards
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Sample Questions
Q1) Small founding teams tend to work better than big ones when starting a company, and it is quite common for the initial team to consist of just two people: a craftsperson and a salesperson.
A)True
B)False
Q2) Olivia has found a viable business, a small furniture store, she is interested in purchasing. She has learned that the store is supplied by reliable vendors and has a steady stream of local and online buyers. What should be Olivia's next step at this point?
A) Analyze the furniture store's past financial statements
B) Start negotiating a purchase price with the current owner
C) Approach a banking institution about financing her purchase
D) Consult a marketing agency about ways to reach more customers
E) Search for vendors that can provide similar products at lower costs
Q3) Which of the following is an advantage for the franchisee?
A) Freed from detail of local operations
B) Recognition
C) Rapid growth for the franchise
D) Low entry cost
E) Guaranteed success
Page 6
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Chapter 5: The Global Context of Business
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260 Verified Questions
260 Flashcards
Source URL: https://quizplus.com/quiz/27150
Sample Questions
Q1) The Transparency International "Corruption Perceptions Index" showed that the least corrupt countries are ________, and the most corrupt countries are ________.
A) Denmark, Finland, and New Zealand; North Korea, Afghanistan, and Somalia
B) Iceland, Denmark, and New Zealand; Haiti, Myanmar, and Somalia
C) Canada, the United States, and New Zealand; Myanmar, Chad, and Russia
D) Denmark, New Zealand, and Singapore; Myanmar, Afghanistan, and Somalia
E) Ireland, the United States, and Canada; Zambia, Libya, and Chad
Q2) "All this talk about a global economy is relevant only for big firms. My company is too small for that type of thinking." Agree or disagree with this statement, and support your position.
Q3) Because it improves the economies to such a great extent, governments encourage unrestricted trade with foreign countries.
A)True
B)False
Q4) Examples of true absolute advantage are rare.
A)True
B)False
Q5) What is foreign direct investment?
Q6) What are the BRICS countries, and why have they become important?
Page 7
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Chapter 6: Managing the Business Enterprise
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271 Verified Questions
271 Flashcards
Source URL: https://quizplus.com/quiz/27151
Sample Questions
Q1) What is the difference in the need for conceptual skills at first-line management levels and the need at top management levels, and what accounts for this difference?
Q2) Scott, the manager of a Computers R Us store, in reviewing the sales results from last week noticed that all but one employee was on target. As he contemplated how to fix the problem, he was engaged in the management process of A) controlling.
B) organizing.
C) planning.
D) directing.
E) staffing.
Q3) The organizing function of management is concerned with mobilizing the necessary resources to complete a particular task.
A)True
B)False
Q4) Explain how plans differ at the strategic, tactical, and operational levels.
Q5) What is escalation of commitment, and how can managers avoid it?
Q6) Why are conceptual skills particularly important for top managers?
Q7) What is corporate culture?
8
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Chapter 7: Organizing the Business Enterprise
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278 Verified Questions
278 Flashcards
Source URL: https://quizplus.com/quiz/27152
Sample Questions
Q1) Departmentalization is the process of
A) creating separate profit centres.
B) creating separate revenue centres.
C) developing an organization chart.
D) creating chains of command.
E) grouping jobs into logical units.
Q2) Which of the following best describes authority?
A) The assignment of a task, responsibility, or authority by a manager to a subordinate
B) The power to make the decisions necessary to complete a task
C) The number of people supervised by one manager
D) The liability of subordinates for accomplishing tasks assigned by managers
E) The duty to perform an assigned task
Q3) How should a manager react when he or she discovers the existence of an informal organization and grapevine within the context of the formal organization?
Q4) Describe the factors that affect a manager's span of control.
Q5) After jobs are departmentalized, then they should be specialized.
A)True
B)False
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Chapter 8: Managing Human Resources and Labour Relations
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293 Verified Questions
293 Flashcards
Source URL: https://quizplus.com/quiz/27153
Sample Questions
Q1) Mary's male co-workers routinely make off-colour jokes and display calendars of scantily clad women. This is an example of ________ harassment.
A) reverse discrimination
B) hostile work environment
C) affirmative action
D) "boys-will-be-boys"
E) quid pro quo
Q2) What are the key activities of human resource management?
Q3) Why would a business firm wish to select employees for promotion from within the organization?
Q4) Which of the following is correct with respect to training?
A) Most on-the-job training is formal.
B) Vestibule training has been shown to be superior to on-the-job training.
C) The Build for the Future program at TD Bank is an example of vestibule training.
D) Networking and mentoring are essentially informal training processes.
E) All of these are correct.
Q5) What are the two basic types of unions?
Page 10
Q6) What is a labour union? Why is it formed and what purpose does it serve?
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Chapter 9: Motivating, Satisfying, and Leading Employees
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319 Verified Questions
319 Flashcards
Source URL: https://quizplus.com/quiz/27154
Sample Questions
Q1) Legitimate power and authority are two quite different things.
A)True
B)False
Q2) Deidra is a manager of a team that has a morale problem. According to the two-factor theory of motivation, which of the following, if true, would be the most reliable indication that the morale problem with Deidra's team is primarily due to a lack of motivators?
A) Deidra's team members all report that they like the building and location in which they work.
B) A survey of Deidra's team members shows that most of them have a sense of the importance of their work.
C) Many of Deidra's team members have difficulty relating to each other.
D) Deidra's team members report getting negative messages about customers from other parts of the company.
E) When surveyed, Deidra's team members do not express any dissatisfaction with existing work conditions.
Q3) Reinforcement includes both rewards and punishments.
A)True
B)False
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Page 11
Chapter 10: Operations Management, Productivity, and Quality
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300 Verified Questions
300 Flashcards
Source URL: https://quizplus.com/quiz/27155
Sample Questions
Q1) The goal of supply chain management is to reduce the number of links in the channel.
A)True
B)False
Q2) If a nation's productivity drops as compared to competing nations, it will experience
A) low inflation.
B) a fall in its standard of living.
C) higher profits.
D) no loss of income.
E) increased wealth.
Q3) Ed's job responsibilities include the receiving, storing, handling, and counting of all raw materials. He is probably in the ________ function.
A) inventory control
B) transportation
C) quality control
D) warehousing
E) purchasing
Q4) How are "fishbone diagrams" useful?
Q5) List the four types of utility.
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Chapter 11: Understanding Accounting
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258 Verified Questions
258 Flashcards
Source URL: https://quizplus.com/quiz/27156
Sample Questions
Q1) Which of the following will calculate the current ratio?
A) Current liabilities divided by current assets
B) Current assets divided by current liabilities
C) Current assets minus current liabilities
D) Current assets divided by total liabilities
E) Current liabilities minus current assets
Q2) ________ is the amount of money owners would theoretically receive if they sold all of a firm's assets and paid all of its liabilities.
A) Asset
B) Debit
C) Credit
D) Liability
E) Owners' equity
Q3) The lower the inventory turnover ratio, the higher the efficiency of operations.
A)True
B)False
Q4) What is the purpose of an income statement? What important information is reflected in this statement?
Q5) What is a controller?
Q6) What is the matching principle?
Page 13
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Chapter 12: Understanding Marketing Principles and Developing Products
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324 Verified Questions
324 Flashcards
Source URL: https://quizplus.com/quiz/27157
Sample Questions
Q1) How does a product mix differ from a product line?
Q2) Companies in Poland have succeeded in overcoming consumer resistance to credit by promoting the safety and desirability of using credit rather than depending solely on cash. This is an example of the use of a ________ variable in market segmentation.
A) level of income
B) demographic
C) geographic
D) behavioural segmentation
E) psychographic
Q3) Which of the following terms describes the kind of products marketed by insurance companies, airlines, investment counsellors, health clinics, and public accountants?
A) Personal goods
B) Services
C) Industrial goods
D) Psychographics
E) Reseller goods
Q4) Describe the four types of brand names and give an example of each.
Q5) What is market segmentation and why is it important?
Page 14
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Chapter 13: Pricing, Promotion, and Distributing Products
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296 Verified Questions
296 Flashcards
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Sample Questions
Q1) What are pricing objectives?
Q2) Which of the following represents a reason for a firm's use of personal selling promotions?
A) It is the only form of selling that works.
B) It provides a personal link between the seller and the buyer.
C) The salesforce has the capability of contacting the greatest number of potential customers.
D) Personal selling provides the lowest promotional costs per contact.
E) Sales promotions must be convenient and accessible when the purchase decision is made.
Q3) How could the use of wholesalers affect the pricing for the Superior V and Superior VI speaker systems?
Q4) When Burger King tells you about a new restaurant that it is opening near you, it is attempting to fulfill which promotional objective?
A) Remind you about the product
B) Communicate information
C) Positioning products
D) Controlling sales volume
E) Eliminate competition
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Chapter 14: Money and Banking
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226 Verified Questions
226 Flashcards
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Sample Questions
Q1) Cynthia is concerned about electronic money because
A) power failures cause information to be lost.
B) hackers may break into e-cash systems and steal the money in them.
C) there are extensive rules and regulations dealing with e-money.
D) electronic money generates an extremely large amount of paper.
E) banks will generally not recognize this form of money.
Q2) The largest bank in Canada (in terms of sales revenue) is
A) Canadian Imperial Bank of Commerce.
B) Bank of Montreal.
C) Toronto-Dominion Bank.
D) Royal Bank of Canada.
E) National Bank.
Q3) Why might nations decline to accept money from the International Monetary Fund?
Q4) Which of the following is considered part of the M-1 money supply?
A) Stocks in a major auto company
B) Bonds
C) Certificates of deposit
D) Term deposits
E) None of these is part of the M-1 money supply.
Q5) What steps have credit card issuers taken to deal with credit card fraud?
Page 16
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Chapter 15: Finacial Decisions and Risk Management
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330 Verified Questions
330 Flashcards
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Sample Questions
Q1) Which of the following is a financing method for short-term funds?
A) Retained earnings
B) Trade credit
C) Equity financing
D) Common stock
E) Bonds
Q2) The mix of debt and equity funding that a firm uses is called its
A) long-term funding mix.
B) financial mix.
C) corporate capital mix.
D) capital structure.
E) debt-to-equity ratio.
Q3) Preferred shares never mature, however, payments to the holder are fixed in amount and can be withheld if the company wishes.
A)True
B)False
Q4) Discuss the investment traits of preferred stock.
Q5) List three sources of short-term funds.
Q6) Describe the primary short-term sources of funds.
Q7) Define and describe the process of factoring accounts receivable.
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