Business Environment
Exam Questions
Course Introduction
This course provides an in-depth understanding of the various external and internal factors that influence business operations and decision-making. Students will explore topics such as economic systems, political and legal frameworks, socio-cultural dynamics, technological advancements, environmental considerations, and global trends. Emphasis is placed on analyzing how these elements shape business strategies, competitive advantage, and ethical practices. Through case studies and real-world examples, learners will gain the skills necessary to evaluate and respond to the changing business environment effectively.
Recommended Textbook
Future of Business 5th Canadian Edition by Norm Althouse
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18 Chapters
2559 Verified Questions
2559 Flashcards
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Page 2
Chapter 1: Political Environment
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) A patent gives inventors exclusive rights to their inventions for how long?
A) 20 months
B) 17 years
C) 20 years
D) the lifetime of the inventor plus 50 years
Answer: C
Q2) Which of the following does the provincial government have authority over?
A) criminal law
B) health care
C) trade regulation
D) defence
Answer: B
Q3) To stimulate competition and protect both consumers and workers, what does the federal government do?
A) It places heavy taxes on companies in monopolistic competition.
B) It creates business systems to meet the needs of all consumers.
C) It creates regulations to intervene in the free market.
D) It places limits on international trade in order to stimulate domestic production.
Answer: C
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Page 3
Chapter 2: Economic Environment
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160 Verified Questions
160 Flashcards
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Sample Questions
Q1) The national debt is the accumulation of deficits that have occurred in the past as a result of expenditures exceeding tax revenues.
A)True
B)False
Answer: True
Q2) When an analyst is evaluating the construction industry in terms of interest rates, employment cycles, and the rate of new home building nationwide, he is looking at microeconomics.
A)True
B)False Answer: False
Q3) It is difficult to enter a monopolistic competition market structure.
A)True
B)False
Answer: False
Q4) There are more companies in a monopolistic competition than in an oligopoly.
A)True
B)False Answer: True
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Chapter 3: Social Environment
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142 Flashcards
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Sample Questions
Q1) Employees have the right to expect that employers bear the responsibility for ensuring job security.
A)True
B)False
Answer: False
Q2) Which of the following statements best describes ethical development?
A) A child who decides not to play with her mother's jewellery because she is afraid she will be punished is in a state of ego-centred ethical development.
B) An individual with conventional ethics is self-centred.
C) An adult who refuses to visit his aunt in the hospital because the visit will cause him to miss Hockey Night in Canada on television is in the postconventional stage of ethical development.
D) An individual in the preconventional stage of ethical development would be more concerned about rewards and punishment than about what is right or wrong.
Answer: D
Q3) List the four levels of the social responsibility pyramid.
Answer: economic responsibility, legal responsibility, ethical responsibility, and philanthropic responsibility
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5
Chapter 4: Technological Environment
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Sample Questions
Q1) Network effects exist when the value of a product depends on the number of users.
A)True
B)False
Q2) Describe three trends relevant to business today.
Q3) Different technology systems can cause a big problem in which area of business?
A) between supplier and buyer
B) branch offices in different countries
C) mergers and acquisitions
D) schools and businesses selling to them
Q4) The responsibility of managing all information resources, computer systems and processes belongs to which of the following?
A) chief computer officer
B) chief systems officer
C) chief technology officer
D) chief information officer
Q5) Most of the information used to make decisions in business is proprietary.
A)True
B)False
Q6) What does the statement, "Today most of us are knowledge workers," mean?
Page 6
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Chapter 5: International Environment
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148 Flashcards
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Sample Questions
Q1) Since NAFTA came into effect in 1994, what has been the result?
A) job losses and higher prices
B) lower economic growth and less selection
C) job creation and economic growth
D) higher prices but more selection
Q2) Bribery translates to kuroi kiri (black mist) in Japan, schmiergeld (grease money) in Germany, and baksheesh (tip or gratuity) in the Middle East. This differing way of looking at bribes is descriptive of differences in which of the following?
A) trade regulations
B) nationalistic standards
C) local laws
D) culture
Q3) Canadian manufacturers sell automobiles in South Korea. To South Korea, the automobiles represent which of the following?
A) countertrades
B) exports
C) imports
D) exchanges
Q4) What is the most fundamental reason for the growth in world trade?
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Chapter 6: Entrepreneurship and Small Business
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) What should a small business owner do on a constant basis that will help identify strengths and weaknesses and explore possible opportunities for expansion?
A) have strategic meetings
B) review the business plan
C) do audits
D) read industry magazines
Q2) A positive aspect of opening a small business is that it takes very little management skill because it is small.
A)True
B)False
Q3) Which of the following is at the core of most business failures?
A) too much inventory
B) poor cash flow
C) low interest rate
D) inadequate planning
Q4) Small businesses account for 90 percent of all employer businesses.
A)True
B)False
Q5) What is the most popular type of small business?
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Chapter 7: Understanding the Business
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Sample Questions
Q1) "To enrich the lives of everyone in WestJet's world by providing safe, friendly, affordable air travel" is best described as which of the following?
A) vision
B) goal
C) mission statement
D) objective
Q2) Which of the following is NOT one of Porter's five forces?
A) the risk of new entry by potential competitors
B) the bargaining power of buyers
C) the threat of substitute products
D) government changing laws or taxes
Q3) International trade and globalization are very important to Canada.
A)True
B)False
Q4) What are the three most critical stakeholder groups of a corporation?
A) shareholders, employees, customers
B) customers, investors, employees
C) employees, politicians, customers
D) employees, customers, competitors
Q5) What is a sustainable competitive advantage?
Page 9
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Chapter 8: Forms of Business Ownership
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Sample Questions
Q1) Tara Bartek owns and operates the Singing Pig Food Company. Bartek makes and markets 20 different gourmet mustards, salsas, marinades, and dip mixes using her crooning pig logo. As a sole proprietorship, the company would have experienced which of the following?
A) It would have had limited liability.
B) It would have had no trouble finding qualified employees.
C) It would have found it easy to raise capital.
D) It would have been easy and inexpensive to form.
Q2) What is the most common form of business organization?
A) a general partnership
B) a cooperative
C) a sole proprietorship
D) a corporation
Q3) When Markum Corp., a manufacturer of cardboard printing equipment, purchased Pretak Ltd., a manufacturer of printers for printing on plastic, it was an example of an acquisition.
A)True
B)False
Q4) What is double taxation?
Q5) Discuss the following statement: "Joint ventures have unlimited life."
Page 10
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Chapter 9: Management and Leadership in Todays Organizations
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Sample Questions
Q1) For the four functions of management to be effective, what must the manager have?
A) strong leadership traits
B) good communication skills
C) quick thinking
D) strategic focus
Q2) The ability to work with people and be sensitive to workers' needs are examples of human relations skills.
A)True
B)False
Q3) As a retired CEO from a large corporation, Mike Lindsey makes all major decisions in his small construction company. The information and decision making goes in one direction, and he asks for no input from his employees. Which of the following leadership styles is demonstrated by Lindsey's activities?
A) consultative
B) autocratic
C) one directional
D) closed door
Q4) List the five primary sources or bases of power.
Page 11
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Chapter 10: Designing Organizational Structures
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Sample Questions
Q1) An organization that has undergone reengineering has completely redesigned its business structures and processes in order to improve operations.
A)True
B)False
Q2) What does the informal organization provide?
A) It makes it more difficult to orient new employees.
B) It offers friendship opportunities and social contact.
C) It diminishes status and recognition.
D) It gives employees less control over their work environment.
Q3) Which of the following is a supervisor engaged in when he or she groups people, tasks, and resources into organizational units to facilitate the planning, leading, and control processes?
A) job enrichment
B) functionalization
C) task integration
D) departmentalization
Q4) List the three structural building blocks used in designing an efficient and effective organizational structure.
Q5) At its simplest level, an organization engaged in reengineering is doing what?
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Chapter 11: Motivating Employees
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Sample Questions
Q1) What four management trends are identified as having the greatest impact on how companies will be operating in the near future?
Q2) The original Hawthorne studies were set up to study which of the following?
A) testing used in the selection of employees
B) employee incentives
C) employee breaks
D) lighting
Q3) According to B.F. Skinner's operant learning theory the idea behind reinforcement is that consequences influence which of the following?
A) motivation
B) behaviour
C) desire
D) outcomes
Q4) What was Elton Mayo, North America's first industrial psychologist, responsible for formulating?
A) the principles of scientific management
B) Theory X and Theory Y
C) the explanation of the Hawthorne effect
D) the motivational-maintenance theory
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Chapter 12: Managing Human Resources and Labour Relations
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Sample Questions
Q1) Dallas Walz is an electrical engineer. He works as a temporary worker for a contracting company that needs his talents only about nine months out of the year. While he likes the extra income, he would much rather stay home with his two preschoolers. His wife earns a six-figure salary selling computers, so Walz has no need to work. Walz is an example of which of the following?
A) contingent worker
B) outsourced worker
C) unpromotable employee
D) conditional employee
Q2) Performance appraisals are used most often to make decisions about pay raises, training needs, and advancement opportunities.
A)True
B)False
Q3) Which of the following is an important aspect of human resource planning?
A) job descriptions
B) job analysis
C) job specifications
D) job rotation
Q4) What are the basic types of compensation? Give an example of each.
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Chapter 13: Marketing
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159 Flashcards
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Sample Questions
Q1) During and right after the Industrial Revolution, companies focused on mass production and assembly lines, and placed a strong emphasis on lower costs. During this period which of the following did manufacturers have?
A) manufacturing focus
B) exchange mission
C) customer orientation
D) production orientation
Q2) What is the goal of the marketing concept?
A) It focuses on profit maximization.
B) It achieves short-term organizational goals.
C) It satisfies customer wants and needs legally and responsibly.
D) It integrates all of the company's activities to achieve maximization.
Q3) Which of the following is an example of social marketing?
A) promotion for a beach party at a local bar
B) a campaign against the use of illegal drugs
C) advertisement for a new health food
D) an advertisement for e-Harmony
Q4) What is the primary focus of not-for-profit marketers?
Q5) What is another name for a competitive advantage?
Q6) What kind of segmentation is the publisher of Seventeen magazine using?
Page 15
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Chapter 14: Creating Marketing Strategies
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183 Flashcards
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Sample Questions
Q1) Offering a hardware retailer a free trip to the Bahamas for two people if he sells more cans of Glidden paint than any other store in the region is considered which of the following?
A) a rebate
B) a push strategy
C) a pull strategy
D) a kickback
Q2) Which of the following is the pricing strategy of marking products below normal markup or even below cost to attract customers to a store where they would not otherwise shop?
A) rebate
B) leader
C) skimming
D) economy
Q3) Staff Resources makes industrial uniforms for people in the medical and dental professions. Staff Resources has total fixed costs of $200,000. The fixed-cost contribution for each uniform is $10. How many uniforms does Staff Resources need to sell before it breaks even?
Q4) List the three sorting methods used in distribution channels.
Q5) List the four stages of the product life cycle.
Page 16
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Chapter 15: Achieving World-class Operations Management
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Sample Questions
Q1) A production process in which the basic input are either combined to create the output or transformed into the output is called assembly process.
A)True
B)False
Q2) Which of the following is the combining of natural resources, human resources, and capital to produce goods and services?
A) marketing
B) specialization
C) utilization
D) production
Q3) Which of the following approaches is a computerized resource planning system that includes information about the company's suppliers and customers as well as data generated internally?
A) enterprise resource planning
B) the PERT chart
C) manufacturing resource planning II
D) manufacturing resource planning
Q4) What is the relationship between mass production and customization?
Q5) What is another name for the product layout?
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Chapter 16: Accounting for Financial Success
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Sample Questions
Q1) In the accounting field, CMA stands for which of the following?
A) certified management accountant
B) centralized managerial accountant
C) certified motivational accountant
D) consolidated monetary auditor
Q2) What is the first step in the accounting cycle?
Q3) Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to shareholders?
A) net earnings
B) net worth
C) retained earnings
D) owners' equity
Q4) What the two main types of operating expenses?
Q5) What is the ratio of net profit to total owners' equity?
A) return on inventory
B) return on earnings
C) return on equity
D) return on sales
Q6) In what order are current assets placed on the balance sheet?
Q7) What does triple bottom line refer to?
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Chapter 17: Understanding Money and the Canadian Financial System
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Sample Questions
Q1) Dividends can be paid only after all the other obligations of the company have been met.
A)True
B)False
Q2) Michaela Petty owns common shares in Procter & Gamble. Last quarter she received a cheque from P&G for $132, which is her share of P&G's distributed profits. Petty has received which of the following?
A) interest
B) yield
C) dividends
D) capital gain
Q3) Why would cherries, ears of corn, and cookies not make good mediums of exchange?
A) divisibility
B) durability
C) profitability
D) exchangeability
Q4) What are the two primary types of securities exchange?
Page 19
Q5) What are the two broad groups involved in financial intermediation?
Q6) What is a mutual fund?
Q7) What is another name for a stockbroker?
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Page 20
Chapter 18: Finance
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Sample Questions
Q1) What is a life insurance policy paid for by the business and naming the company as beneficiary if the employee dies?
A) business interruption insurance
B) key person life insurance
C) professional liability insurance
D) fidelity insurance
Q2) The three main types of unsecured short-term loans are trade credit, bank loans and commercial paper.
A)True
B)False
Q3) What are the three main types of unsecured short-term loans?
A) trade credit, bank loans, and commercial paper
B) treasury bills, certificates of deposit, and accounts payable
C) trade credit, accounts payable, and bank loans
D) accounts payable, notes payable, and loans payable
Q4) Which of the following terms represents the stated interest rate of a bond?
A) liquidity rate
B) market rate
C) prime rate
D) coupon rate
Page 21
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