Business Fundamentals
Exam Review
Course Introduction
Business Fundamentals provides an essential introduction to the core principles and practices of modern business. The course covers key topics such as organizational structures, marketing, accounting, finance, management, and the legal and ethical environment of business. Students will explore how businesses operate within local and global markets, develop an understanding of decision-making processes, and examine the role of innovation and entrepreneurship. Through case studies and practical examples, learners gain foundational knowledge necessary to succeed in more advanced business courses and in professional environments.
Recommended Textbook
Business Essentials 8th Canadian Edition by Ronald
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15 Chapters
4158 Verified Questions
4158 Flashcards
Source URL: https://quizplus.com/study-set/1360
Page 2
J. Ebert
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) What is the difference between a command economy and a market economy?
A) A command economy is found only in communist countries, while a market economy is found only in capitalist countries.
B) A command economy is more efficient than a market economy.
C) A market economy gives greater "life satisfaction" to people.
D) A command economy relies on centralized government control of the factors of production, while in a market economy supply and demand determine production and allocation decisions.
E) There really are no significant differences between a command economy and a market economy.
Answer: D
Q2) The four degrees of competition include all of the following except
A) pure competition.
B) monopolistic competition.
C) monopolies.
D) oligopolies.
E) pure monopolistic competition.
Answer: E
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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) The consumer price index (CPI) is a measure of the prices of typical products purchased by consumers.
A)True
B)False
Answer: True
Q2) There is a trend toward mixing business and entertainment. This is an example of which element of the external environment?
Answer: The trend toward mixing business and entertainment is an example of the influence of the sociocultural environment.
Q3) Ted has not worked in 5 years and has given up looking for work. He is considered unemployed.
A)True
B)False
Answer: False
Q4) The standard of living in a country improves through increases in the money supply. A)True
B)False
Answer: False
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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) Which of the following is an example of a company acting irresponsibly toward its investors?
A) The board of directors does not declare a dividend
B) Retained earnings are used to expand research and development instead of paying a dividend
C) Top management misrepresents the firm's financial situation
D) The firm does not allow insider trading
E) The firm uses retained earnings to finance growth
Answer: C
Q2) Arctic Glacier Inc., a Canadian company, was one of several companies served with subpoenas by the U.S. government as it investigated possible
A) violation of monopoly rules.
B) insider trading.
C) cheque kiting.
D) unsafe products.
E) collusion.
Answer: E
Q3) List four ethical norms.
Answer: Utility, rights, justice, and caring
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Page 5
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) Private investors, also known as angels, provide most of the debt financing for new businesses.
A)True
B)False
Q2) Most new ventures are the result of a search for a viable business idea.
A)True
B)False
Q3) About one-third of all new businesses owners
A) buy an existing business.
B) start from scratch.
C) buy out a partner.
D) win the business in a draw.
E) inherit the business.
Q4) The franchise agreement usually requires that the franchisee pay a fee to the franchisor, but sometimes the franchisor is willing to pay the franchisee if the franchisee has a good track record of success.
A)True
B)False
Page 6
Q5) What is the mandate of the Business Development Bank of Canada?
Q6) Describe the criteria used to screen an entrepreneur's idea.
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Page 7
Chapter 5: The Global Context of Business
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260 Verified Questions
260 Flashcards
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Sample Questions
Q1) Fembooks Bookstore sells books only over the Internet. It has established an excellent reputation for finding out-of-print and hard-to-find books of interest to women. The CEO of Fembooks is considering going global with the business, since it is already established on the Internet. Which of the following statements, if true, would support the president's argument for the global expansion of Fembooks through the Internet?
A) Payment preferences vary from country to country. Europeans prefer using debit cards over using credit cards due to the high rate of credit card theft.
B) Demographic targeting is more easily accomplished on the Internet than in other forms of advertising.
C) The exchange rate for different currencies can be an issue for global businesses. The use of local currency may increase rates of purchase, but presents challenges for exchange and shipping.
D) Advertising and sales laws (and accompanying taxes) vary from country to country.
E) Local import and export laws would need to be researched and followed.
Q2) Why would two companies, both earning large profits and expanding into Japan, form a strategic alliance?
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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 are the three levels of plans?
Q2) What does "retrenchment" mean in terms of business strategy?
A) A change in the mission for the organization
B) Ceasing to do business
C) Cutting back some operations
D) An increase in the market share for two or more products
E) Growth at a modest rate
Q3) Guiding and motivating employees to meet an organization's objectives is called
A) controlling.
B) planning.
C) organizing.
D) leading.
E) staffing.
Q4) What are the two basic ways that individuals can acquire the skills necessary to be a manager?
Q5) Explain how plans differ at the strategic, tactical, and operational levels.
Q6) The primary purpose of setting goals is to determine which business market to enter.
A)True
B)False
Page 9
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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) A virtual organization typically has only a small number of employees.
A)True
B)False
Q2) Each company has the same basic organizational elements and thus the same basic structure.
A)True
B)False
Q3) When delegating authority, managers should keep all of the following points in mind except
A) deciding on the nature of the work to be done.
B) matching the job with the skills of subordinates.
C) checking up on subordinates frequently to ensure that they do not make mistakes.
D) making sure the person chosen understands the objectives he or she is supposed to achieve.
E) making sure subordinates have the time and training necessary to do the task.
Q4) Delegation is practised by line managers, but not by staff managers.
A)True
B)False
Q5) What is a boundaryless organization?
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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) Compensation includes not only wages or salaries but incentives and benefits programs as well.
A)True
B)False
Q2) Mimi, a senior secretary, has a value to the company that is about the same as Tom, who is a mechanic. She has found out that Tom is paid about the same as she is. The firm's successful program is
A) equal pay.
B) male subjugation.
C) comparable worth.
D) affirmative action.
E) reverse discrimination.
Q3) Montreal-based CAE is famous for building flight simulators that enable airline pilots to learn how to fly a new jet without ever leaving the ground. This is an example of off-the-job training.
A)True
B)False
Q4) Describe three factors which help to explain the stagnation in union membership.
Q5) Identify and discuss the various types of incentive compensation plans.
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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) In exercising strategic leadership, what is a leader most likely to do?
A) Focus on company efficiency
B) Focus on company profitability
C) Align the company with its environment
D) Avoid environmental impact on the firm
E) It is not possible to say with the information given
Q2) In order to help increase Lee's job satisfaction, he has been given additional responsibilities. This is an example of
A) combining tasks.
B) natural work grouping.
C) job redesign.
D) compressed work.
E) job enrichment.
Q3) Expert power is the most effective type of power because followers will defer to the leader's expertise when situations are complex.
A)True
B)False
Q4) Briefly describe the "Big Five" personality traits. How might these traits influence a person's success in their business career?
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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 operations transformation process involves the management of inputs that are transformed into outputs.
A)True
B)False
Q2) Louis is a production manager. How can he determine if production machinery is capable of meeting the upper and lower specification limits?
A) Use control charts
B) Conduct a process capability study
C) Conduct competitive product analysis
D) Implement a quality circles program
E) Hire a marketing consultant
Q3) Murray had his car repaired the other day. This is an example of a low-contact service process.
A)True
B)False
Q4) The goal of supply chain management is to reduce the number of links in the channel.
A)True
B)False
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Chapter 11: Understanding Accounting
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258 Verified Questions
258 Flashcards
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Sample Questions
Q1) What is the purpose of a balance sheet? What are the major types of information shown on the balance sheet?
Q2) List the potential users of accounting information.
Q3) What is the formula for determining owners' equity?
A) Assets minus liabilities
B) Assets plus liabilities
C) Assets minus goodwill
D) Current assets minus current liabilities
E) There is no formula for computing owners' equity.
Q4) ________ is the comprehensive information system for collecting, analyzing, and communicating financial information, while ________ is the recording of financial transactions.
A) Financial accounting; managerial accounting
B) Managerial accounting; financial accounting
C) Bookkeeping; accounting
D) Accounting; bookkeeping
E) Controlling; accounting
Q5) The lower the inventory turnover ratio, the higher the efficiency of operations.
A)True
B)False
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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) Generic brands are losing shelf space because brand names are so powerful.
A)True
B)False
Q2) What is the fundamental goal of product differentiation?
A) To increase profit margins
B) To set the company's products apart from competitive products in the market
C) To maximize market share
D) To more effectively market to industrial consumers
E) To more effectively market to certain demographic segments of the market
Q3) A national brand name is produced and distributed by the manufacturer of the product.
A)True
B)False
Q4) With respect to the 4 P's, "price" refers only to the actual amount of money that consumers must pay for a product or service.
A)True
B)False
Q5) What is the difference between consumer goods and industrial goods?
Page 15
Q6) What is product positioning? Give examples.
Q7) What are primary data?
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Page 16
Chapter 13: Pricing, Promotion, and Distributing Products
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296 Verified Questions
296 Flashcards
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Sample Questions
Q1) Goodyear and Levi's have their own retail outlets. This is an example of which distribution channel?
A) Direct distribution
B) Retail distribution
C) Wholesale distribution
D) Distribution by agents
E) Distribution by brokers
Q2) If a retailer buys shirts for $8 from a supplier and then sells them for $15 to customers, the markup percentage is 87.5 percent.
A)True
B)False
Q3) Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers, sells the popular Superior V model and recently introduced the Superior VI, a brand-new speaker technology. The company's marketing manager, Deanna Thorpe, is putting together the promotional campaign for Superior. What purposes of promotion should Deanna and her marketing team at Superior keep in mind?
Q4) List three forms of direct response retailing.
Q5) What is personal selling?
Q6) What are the advantages and disadvantages of public relations?
Page 17
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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 the World Bank and the International Monetary Fund different?
Q2) What does it mean when we say that money functions as a medium of exchange, as a store of value, and as a unit of account?
Q3) What feature of a credit union makes it different from all the other financial institutions?
Q4) According to the Big Mac index
A) Big Mac's must be priced higher in China than in Canada.
B) the price of a Big Mac is used to determine if a given currency is overvalued or undervalued.
C) Big Mac's are better than Mom's homemade hamburgers.
D) Big Mac's are always cheaper in France than they are in Canada.
E) Big Mac's are priced the same all over the world.
Q5) Which of the following is not part of the M-1 money supply?
A) Credit cards
B) Currency
C) Demand deposits
D) Cheques
E) All of these are part of M-1.
Q6) Briefly describe the attributes an object must possess to be used as money.
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Q7) Compare and contrast the services offered by chartered banks and credit unions.
Chapter 15: Finacial Decisions and Risk Management
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330 Verified Questions
330 Flashcards
Source URL: https://quizplus.com/quiz/27160
Sample Questions
Q1) Samantha should prepare a cash flow requirements projection because
A) she can see how much anticipated taxes she will have to pay.
B) by anticipating shortfalls, she can seek funds in advance and minimize their cost, and by anticipating excess cash she can plan to put funds to work in short-term, interest-bearing investments.
C) she will be able to plan her vacation.
D) she will know when to hire extra staff for peak periods.
E) she will need this information when she is planning for an initial public offering of her company's stock.
Q2) Differentiate between odd and round lots.
Q3) Debt financing refers to the long-term borrowing of funds from outside the company.
A)True
B)False
Q4) What factors influence the market value of a stock?
Q5) What is a financial manager?
Q6) Discuss the advantages and disadvantages of financing using preferred stock.
Q7) How is a line of credit different than a revolving credit agreement?
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Q8) Since equity funding is expensive, why don't businesses rely totally on debt capital?