Introduction to Business Exam
Answer Key
Course Introduction
Introduction to Business provides students with a foundational understanding of the contemporary business environment and its core concepts. The course explores various aspects of the business world, including management, marketing, finance, entrepreneurship, operations, and ethical practices. Through case studies, real-world examples, and hands-on activities, students learn about organizational structures, the roles and responsibilities of different business functions, and the impact of global and technological trends on business practices. This course is designed to equip students with the essential knowledge and analytical skills needed to succeed in further business studies or entry-level positions 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
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Sample Questions
Q1) As a general rue, in perfect competition (e.g., in farming) there will be very few sellers.
A)True
B)False
Answer: False
Q2) What is a mixed market economy?
Answer: A mixed market economy is one that has features of both command and market economies. Since very few economies are purely command or market economies, most countries of the world technically have a mixed market economy. But China's mixed market economy is quite different than Canada's.
Q3) The natural resources component of the factors of production includes the physical and mental capabilities of people in the work force.
A)True
B)False
Answer: False
Q4) The market for clothing is best characterized as monopolistic competition.
A)True
B)False
Answer: True
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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) Why is business process management important?
Answer: It is important because it requires a business to ask a very fundamental question: What must we do well to stay in business? To answer that question, a business must identify the major processes that must be performed well, and then organize resources and skills around those essential processes. This leads to faster decision making and a stronger customer orientation.
Q2) Prevailing economic conditions affect mostly businesses that provide physical products, not businesses that provide intangible services.
A)True
B)False
Answer: False
Q3) If Canada fell into a depression, the Bank of Canada would most likely
A) raise interest rates.
B) leave interest rates alone.
C) lower interest rates.
D) it is not possible to tell with the information given.
E) increase gasoline taxes.
Answer: C
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4
Chapter 3: Conducting Business Ethically and Responsibly
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275 Verified Questions
275 Flashcards
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Sample Questions
Q1) List four ethical norms.
Answer: Utility, rights, justice, and caring
Q2) What are carbon credits?
Answer: Carbon credits, when purchased by companies, essentially give them the right to pollute the atmosphere. The money that is collected is then used to help fund clean-air projects in developing countries.
Q3) Stealth advertising is unethical and illegal.
A)True
B)False
Answer: False
Q4) Dangerous chemical and/or radioactive byproducts of various manufacturing processes are called
A) solid waste.
B) acid rain.
C) toxic waste.
D) incineration waste.
E) biomass.
Answer: C
Q5) List the four general approaches to social responsibility.
Answer: Obstructionist, defensive, accommodative, and proactive
Page 5
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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) What are the most common sources of equity financing?
Q2) Jody is a young graduate from a business program. She can either help out in the family business or work with another organization. Which of the following is not a typical advantage associated with a family business?
A) Highly trained individuals
B) Valuable community relationships
C) Personal sacrifices leading to financial advantage
D) High employee loyalty
E) Unified family management
Q3) Describe private investors (angels) and venture capitalists.
Q4) Jeanne is not an active participant in Highline Food Company, but she has contributed a significant amount of capital as a partner to the business. Jeanne is known as a(n) ________ partner.
A) managing
B) general
C) limited
D) dormant
E) secret
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Q5) What factors in the broader environment influence the entrepreneurial process?
Chapter 5: The Global Context of Business
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260 Verified Questions
260 Flashcards
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Sample Questions
Q1) What is the difference between absolute and comparative advantage?
Q2) Michael is going to sell his baby products abroad, and he is interested in having someone in the foreign country sell the product for him. Michael is most interested in working with a(n)
A) franchisee.
B) multinational firm.
C) branch office.
D) international firm.
E) independent agent.
Q3) When a country imports more than it exports, it has a favourable balance of trade.
A)True
B)False
Q4) All countries have a comparative advantage in some products.
A)True
B)False
Q5) When a country's exchange rate falls, that country's exports become more expensive to other countries.
A)True
B)False
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Chapter 6: Managing the Business Enterprise
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271 Verified Questions
271 Flashcards
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Sample Questions
Q1) If Ben and Jerry's Ice Cream has a goal of investing 2 percent of their after-tax profits in charitable contributions, that goal
A) helps allocate resources.
B) helps assess performance.
C) provides direction.
D) helps to define corporate culture.
E) helps make decisions.
Q2) Coca-Cola's decision to increase sales in Europe by building European bottling facilities is an example of a strategic plan.
A)True
B)False
Q3) Beta Company has set a goal of increasing sales by 10% this year. This goal will most likely have the effect of
A) motivating managers.
B) assisting in the allocation of advertising dollars.
C) assisting in the allocation of resources.
D) providing direction for managers.
E) all of these.
Q4) What is corporate culture?
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Chapter 7: Organizing the Business Enterprise
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278 Verified Questions
278 Flashcards
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Sample Questions
Q1) All things considered, functional departmentalization is the optimum organizational structure for most organizations.
A)True
B)False
Q2) Describe what responsibility and authority are, and how they are related.
Q3) The ________ is an informal communication network that runs through an organization.
A) grapevine
B) intrapreneur
C) intranet
D) span of control
E) message centre
Q4) Geoff is a legal expert for Marks Inc. His special expertise involves counseling and advising other managers. This illustrates
A) functional authority.
B) counseling authority.
C) line authority.
D) human resource authority.
E) staff authority.
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Chapter 8: Managing Human Resources and Labour Relations
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293 Verified Questions
293 Flashcards
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Sample Questions
Q1) List the various categories of contingent workers.
Q2) Labour unions developed in response to management's unfair and uncaring treatment of employees.
A)True
B)False
Q3) What is a piece-rate incentive plan?
Q4) All of the following are challenges facing unions, except A) technological change.
B) employment growth in manufacturing industries.
C) the decline of the so-called "smokestack industries."
D) deregulation.
E) free trade and the globalization of business.
Q5) Which of the following statements about mediation is correct?
A) The mediator's decision is legally binding.
B) The mediator has the task of preventing outsiders from making the conflict worse.
C) The mediator is appointed by management.
D) The mediator is a neutral third party whose task is to suggest a compromise that will get the negotiations moving ahead.
E) All of these are correct.
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Chapter 9: Motivating, Satisfying, and Leading Employees
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319 Verified Questions
319 Flashcards
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Sample Questions
Q1) How can managers use the needs at each level of the hierarchy of needs to achieve business goals?
Q2) Marshall thinks that the best way to stop undesirable behaviour on the part of his subordinates is to simply ignore it. Marshall is using ________ as a strategy.
A) punishment
B) omission
C) positive reinforcement
D) negative reinforcement
E) none of these
Q3) Terry experiences a high degree of enjoyment from performing his job. The term that identifies this enjoyment is known as A) conscientiousness.
B) human relations.
C) motivation.
D) job satisfaction.
E) extroversion.
Q4) Under what conditions might the use of work teams be inappropriate?
Q5) What was the goal of the behavioural approach to leadership?
Q6) How are equity theory and the psychological contract connected?
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Chapter 10: Operations Management, Productivity, and Quality
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300 Verified Questions
300 Flashcards
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Sample Questions
Q1) The evaluation method that allows managers to analyze variations in a company's production activities to determine when adjustments are needed is called
A) internal failure analysis.
B) statistical process control.
C) quality circles.
D) upper/lower control limit analysis.
E) quality/cost study.
Q2) Margaret is evaluating all work activities, materials flows, and paperwork to determine the value that they add for customers. This is an example of a quality/cost study.
A)True
B)False
Q3) Describe how production processes can be classified based on the type of transformation technology that is used.
Q4) Planning for quality begins before products are initially designed or redesigned. A)True
B)False
Q5) What is re-engineering?
Page 12
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Chapter 11: Understanding Accounting
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258 Verified Questions
258 Flashcards
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Sample Questions
Q1) Which of the following calculates the cost of goods sold during the period?
A) Beginning inventory plus purchases minus ending inventory
B) Ending inventory minus beginning inventory plus purchases
C) Purchases minus beginning inventory plus ending inventory
D) Beginning inventory plus ending inventory minus purchases
E) (Ending inventory plus beginning inventory) divided by two
Q2) Owners' equity consists of two sources: the amount that the owners originally invested, and profits earned by and reinvested in the company.
A)True
B)False
Q3) How much profit does a company (which has a total of $5 million invested by its owners and $4 million in liabilities) need to make in order to have an assets-to-liabilities ratio of 2:1?
A) $2 million
B) $3 million
C) $5 million
D) $7 million
E) $8 million
Q4) Identify an activity ratio and what it measures.
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Chapter 12: Understanding Marketing Principles and Developing Products
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324 Verified Questions
324 Flashcards
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Sample Questions
Q1) Market research is the study of what buyers need and how best to meet those needs.
A)True
B)False
Q2) Products which are purchased by end users for their personal use are ________ goods, while products which are purchased by companies for production purposes are ________ goods.
A) industrial; consumer
B) capital; accessory
C) consumer; industrial
D) high utility; low utility
E) none of these
Q3) Which defining word or phrase below best captures the meaning of capital items?
A) Bulk loads
B) Directly used in the production process
C) To the consumer within a year
D) Permanent
E) Governmental purchase
Q4) How might economic environmental factors affect the business of Panther Shoes, a manufacturer of athletic apparel?
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) Why might a retailer price a television at $299.99 rather than $300.00?
Q2) Which of the following modes of transportation is used primarily to transport heavy, bulky items such as cars, steel, and coal?
A) Air
B) Pipeline
C) Trucks
D) Water
E) Railroads
Q3) A wholesale grocer purchases groceries by truckload or railroad boxcar load and then fills individual grocery store orders from inventory. What transportation method will typically be used to ship these grocery orders to supermarkets within a 100-kilometre radius of the warehouse?
A) Air
B) Rail
C) Water
D) Pipeline
E) Truck
Q4) What is the formula for computing the break-even point?
Q5) What is a channel captain?
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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) How are factoring companies and financial corporations different?
Q2) What steps have credit card issuers taken to deal with credit card fraud?
Q3) In the absence of a reserve requirement, banks can create essentially infinite amounts of money.
A)True
B)False
Q4) What term identifies a bank's promise to pay a foreign business firm (e.g., German firm) a certain amount if the specified conditions are met?
A) Bank loan
B) Letter of credit
C) Promissory note
D) Deposit
E) Electronic funds transfer
Q5) What is the difference between a credit card and a debit card?
Q6) What is the difference between a letter of credit and a banker's acceptance?
Q7) The desired characteristics of money include portability, divisibility, durability, and stability.
A)True
B)False
Chapter 15: Finacial Decisions and Risk Management
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330 Verified Questions
330 Flashcards
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Sample Questions
Q1) With respect to inventory, which of the following is correct?
A) Inventory is not an asset.
B) All inventory is an asset except work-in-process inventory.
C) Factoring inventory is generally a bad idea.
D) Finished goods inventory is twice the value of work-in-process inventory.
E) Rolls of denim at a Levi's factory are raw materials inventory.
Q2) What are the two primary sources of debt financing?
Q3) The most conservative investments are government savings bonds and bank GICs. In decreasing order of conservativeness, the next two investments are
A) medium-quality preferred stock and high-grade corporate bonds.
B) commercial paper and lower-quality common stocks.
C) high-grade corporate bonds and commercial paper.
D) commercial paper and medium-quality preferred stocks.
E) junk bonds and high-grade corporate bonds.
Q4) The book value of a company's common stock is determined by A) what buyers are willing to invest in a firm.
B) dividing total assets by the number of outstanding shares.
C) dividing total shareholders' equity by the number of outstanding shares.
D) dividing net profit by the number of outstanding shares.
E) stock brokers' opinions and ratings.
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