Business Fundamentals
Study Guide Questions
Course Introduction
Business Fundamentals introduces students to the essential principles and concepts that underpin the world of business. This course covers key areas such as management, marketing, finance, operations, and entrepreneurship, providing a broad overview of how organizations operate within the modern global economy. Students will explore topics like organizational structure, business strategy, decision-making processes, and the external factors affecting business success. By examining real-world case studies and engaging in practical projects, learners develop a foundational understanding of business terminology, functions, and practices, preparing them for further study or entry-level roles in various business sectors.
Recommended Textbook
BUSN Introduction to Business 3rd Canadian Edition by Snow Kelly
Available Study Resources on Quizplus
20 Chapters
3207 Verified Questions
3207 Flashcards
Source URL: https://quizplus.com/study-set/2451 Page 2
Chapter 1: Business
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/48707
Sample Questions
Q1) What is the likely result of too much taxation, an overuse of regulation, and limited choices in the broader business environment?
A) an increase in global trade
B) an increase in entrepreneurship
C) a decrease in entrepreneurial activities
D) a social crisis
Answer: C
Q2) Businesses and not-for-profit organizations rely on factors of production to achieve their objectives.
A)True
B)False
Answer: True
Q3) Henry Ford's introduction of the assembly line occurred during the production era. A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Business Ethics and Social Responsibility: Doing
Well by Doing Good
Available Study Resources on Quizplus for this Chatper
168 Verified Questions
168 Flashcards
Source URL: https://quizplus.com/quiz/48709
Sample Questions
Q1) The most socially responsible companies establish codes of conduct for their vendors that include policies pertaining to which of the following?
A) human rights
B) consumers' right to choose
C) shareholder benefits
D) consumers right to be heard
Answer: A
Q2) Will establishing a code of conduct for vendors in foreign nations be successful?
A) Most probably not, because Canadian organizations do not care about how foreign vendors produce products; they only care about getting products at low costs.
B) Most probably, as long as the code of conduct is posted at every location.
C) Most probably, but only if the company performs social audits and takes action when needed.
D) Most probably not, because while it is a nice idea in practice, so far no Canadian firms have been able to actually establish a comprehensive code.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Economics: The Framework for Business
Available Study Resources on Quizplus for this Chatper
170 Verified Questions
170 Flashcards
Source URL: https://quizplus.com/quiz/48711
Sample Questions
Q1) GeeGee's is a community-based bakery known for its scrumptious tea cakes. The recipe calls for expensive spices imported from Asia. Recently, the cost of these spices has risen dramatically, leading GeeGee's to consider increasing its prices. What could GeeGee's management perform in order to analyze how this change would affect consumer choices?
A) a transformational economic analysis
B) a microeconomic analysis
C) a structural analysis
D) a macroeconomic analysis
Answer: B
Q2) Marian's Moped and Bicycle Store is located on the property of a five-star resort in Alberta. The mopeds and bikes are rented based on one-hour increments. Marian lowers her standard prices to attract patrons during daily rainstorms in June and August. This is an example of decreasing supply.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: The World Market-Place: Business Without Borders
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/48712
Sample Questions
Q1) The only practical way for small businesses to compete globally is through directly investing in foreign production facilities.
A)True
B)False
Q2) With a given amount of labour and other resources, producers in the nation of Alphania can produce either 100 widgets or 50 wackets. Thus, in Alphania two widgets must be given up to produce each wacket. Using the same amount of labour and resources, producers in Betania can produce 40 widgets or 40 wackets-so one widget must be given up for each wacket produced. Based on this information, which statement is true?
A) Betania has an absolute advantage in producing both goods.
B) Betania has a comparative advantage in producing wackets.
C) Alphania has a comparative advantage in producing wackets, but Betania has an absolute advantage in producing wackets.
D) Alphania has a comparative advantage in producing both goods.
Q3) Balance of payments includes foreign borrowing and lending, foreign aid, and investments.
A)True
B)False
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Business Formation: Choosing the Form That Fits
Available Study Resources on Quizplus for this Chatper
145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/48713
Sample Questions
Q1) How does a merger differ from an acquisition? What are the three basic types of mergers, and how do they differ? Identify a reason why firms might pursue each type of merger.
Q2) One of the biggest trends in franchising for the past several years has been an expansion into overseas markets.
A)True
B)False
Q3) Identify and discuss five advantages of operating a business as a sole proprietorship.
Q4) In a general partnership, each partner incurs unlimited liability only for claims resulting from his or her own negligence.
A)True
B)False
Q5) A general partnership is a voluntary partnership in which all partners can take an active role in managing the business and have unlimited liability for any claims against the firm.
A)True
B)False
Q6) Describe how a corporation is formed.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Small Business and Entrepreneurship: Economic
Rocket Fuel
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/48714
Sample Questions
Q1) Which of the following provides funds to small businesses with high growth potential in exchange for a share of ownership in the company?
A) investment bankers
B) venture capitalists
C) factors
D) small business development centres
Q2) Describe two threats small business owners face.
Q3) When launching a new business, entrepreneurs give up high-value benefits, including health insurance and paid time off.
A)True
B)False
Q4) A major attraction of entrepreneurship is that it offers a steady, predictable income.
A)True
B)False
Q5) Identify and describe two opportunities and two threats to small business success.
Q6) Provide three reasons people decide to pursue entrepreneurship and give an example of each.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Accounting: Decision Making by the Numbers
Available Study Resources on Quizplus for this Chatper
188 Verified Questions
188 Flashcards
Source URL: https://quizplus.com/quiz/48715
Sample Questions
Q1) Which set of statements comprises the major output of financial accounting?
A) general journal, cash budget, and capital budget
B) annual report, social audit, and balanced scorecard
C) balance sheet, income statement, and statement of cash flows
D) dividend record, auditor's opinion, and master budget
Q2) How do many firms view their management accounting systems?
A) as necessary, but not something they wish to develop
B) as a form of competitive advantage
C) as a reporting system to meet government regulations
D) as a tool for producing balance sheets and income statements
Q3) The costs a firm incurs for plant maintenance, quality control, or depreciation on office equipment are usually classified as which of the following?
A) indirect costs
B) direct costs
C) activity-based costs
D) incidental costs
Q4) Accountants define cost as the value of what is given up in exchange for something else.
A)True
B)False
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Finance: Acquiring and Using Funds to Maximize
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/48716
Sample Questions
Q1) Financial managers measure the benefits and costs of long-term investment proposals in terms of which of the following?
A) the cash flows it will generate
B) whether it will be financed with debt or equity
C) how accounts receivable will be affected
D) the lines of credit that will be needed
Q2) What do we call short-term IOUs issued by the government that mature in 4, 13, and 26-week increments?
A) debentures
B) treasury bonds
C) money market mutual funds
D) T-bills
Q3) Budgeting is a management tool that explicitly shows how firms will acquire and use the resources needed to achieve its goals over a specific time period.
A)True
B)False
Q4) How are lines of credit and revolving credit arrangements similar? How are they different?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Q5) What is net working capital? Describe the key components of net working capital.
Chapter 9: Financial Markets: Allocating Financial Resources
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/48717
Sample Questions
Q1) Financial institutions not federally regulated are governed by legislation in the province in which they are registered.
A)True
B)False
Q2) Describe how investors can track the performance of their investments.
Q3) An initial public offering (IPO) is the first time a company issues stock to be purchased by the general public.
A)True
B)False
Q4) Cybil likes to buy the stocks of relatively small new companies with innovative products in a rapidly expanding sector of the economy. She believes the values of many of these stocks will rise significantly over time. Cybil's approach is an example of the market timing strategy.
A)True
B)False
Q5) Owners of common stock have ownership rights that include voting rights and rights to residual claims on assets.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Marketing: Building Profitable Customer
Connections
Available Study Resources on Quizplus for this Chatper
183 Verified Questions
183 Flashcards
Source URL: https://quizplus.com/quiz/48718
Sample Questions
Q1) BettaBikes has begun using a strategy known as mass customization. This means that BettaBikes produces one basic bike style that appeals to a massive customer base.
A)True
B)False
Q2) Customer relationship management is the ongoing process of acquiring, maintaining, and growing profitable relationships by delivering unmatched value.
A)True
B)False
Q3) How can a company acquire secondary data?
A) by organizing focus groups
B) by researching relevant magazine and newspaper articles
C) by conducting online surveys
D) by analyzing garbage
Q4) Ricardo recently spent a lot of money buying a new sports car. He thought he would really enjoy it, but soon after the purchase, he began to question whether it was a smart move. Ricardo's doubts are an example of cognitive dissonance.
A)True
B)False
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Product and Promotion: Creating and Communicating Value
Available Study Resources on Quizplus for this Chatper
335 Verified Questions
335 Flashcards
Source URL: https://quizplus.com/quiz/48719
Sample Questions
Q1) Consumers are spending more of their free time entertaining themselves on the Internet and less time watching TV.
A)True
B)False
Q2) Three characteristics that contribute to a high diffusion rate for a new product are observability, trialability, and compatibility.
A)True
B)False
Q3) Apple's decision to introduce iPods in different sizes, colours, and storage capacities is an example of line extension.
A)True
B)False
Q4) Define and describe the six steps in the new product development process.
Q5) What is the purpose of promotion? How do marketers use it to increase the chance a consumer will buy their product or services?
Q6) Describe the three levels of innovation businesses use in an effort to stay competitive. Give examples for each.
Q7) Describe four categories of business products, and explain how they differ.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Distribution and Pricing: Right Product, Right
Person, Right Place, Right Price
Available Study Resources on Quizplus for this Chatper
175 Verified Questions
175 Flashcards
Source URL: https://quizplus.com/quiz/48720
Sample Questions
Q1) What does the supply chain begin with?
A) suppliers of raw materials
B) manufacturer
C) full-service wholesaler
D) producer
Q2) What do we call an intermediary that takes legal possession of the goods being distributed?
A) an ownership utility
B) a channel of distribution
C) supply chain management
D) a merchant wholesaler
Q3) The channel of distribution refers to the actual movement of products as they travel from the producer to the ultimate consumer.
A)True
B)False
Q4) Merchant wholesalers are independent distributors who take legal possession, or title, of the goods distributed.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Management, Motivation, and Leadership: Bringing Business to Life
Available Study Resources on Quizplus for this Chatper
213 Verified Questions
213 Flashcards
Source URL: https://quizplus.com/quiz/48721
Sample Questions
Q1) Because they act as the bridge between departments, coordinating people and projects, what kind of skills must middle-level managers have?
A) technical skills
B) management skills
C) conceptual skills
D) human skills
Q2) Which theory, attributed to Victor Vroom, is based on the key concept that workers will be motivated if they believe that their effort will lead to good performance, and good performance will lead to a meaningful reward?
A) expectancy theory
B) self-actualization theory
C) equalization theory
D) equity theory
Q3) What are three of the qualities typically found in an effective business leader? Name and briefly describe three key leadership styles.
Q4) Span of control refers to the number of people that a manager supervises.
A)True
B)False
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Human Resource Management: Building a Top-Quality Workforce
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/48722
Sample Questions
Q1) Most effective and forward-thinking human resource managers find a workable approach to building a top-quality workforce and consistently stick to that approach.
A)True
B)False
Q2) What do we call the option of working a full-time number of hours in less than the standard workweek?
A) a compressed workweek
B) a compacted workweek
C) the ten-for-four option
D) a flexed workweek
Q3) Which of the following is a growing human resource challenge?
A) hiring women
B) avoiding employee lawsuits
C) massive retirements at the mandatory retirement age
D) finding enough work for all employees
Q4) Some employees view the human resources (HR) department as irrelevant and do not consider HR practitioners as true business leaders.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Managing Information and Technology: Finding
New Ways to Learn and Link
Available Study Resources on Quizplus for this Chatper
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/48723
Sample Questions
Q1) What is the advantage of using cloud computing?
A) It is accessible to all your friends and family.
B) It stores large files without taking up valuable space on a computer's hard drive.
C) It is very secure from hackers.
D) It is very reliable.
Q2) Which of the following is a network confined to sites on internal Web servers and only available to individuals within an organization?
A) Internet
B) whispernet
C) closed network
D) intranet
Q3) Electronic bill presentment and payment is a method in which bills are sent to customers via e-mail. Many banks offer this service.
A)True
B)False
Q4) What is viral marketing? Provide an example.
Q5) Discuss the four advantages businesses enjoy by using e-marketplaces.
Page 17
Q6) Provide three examples of what the cloud offers its users the ability to do.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Operations Management: Putting It All Together
Available Study Resources on Quizplus for this Chatper
167 Verified Questions
167 Flashcards
Source URL: https://quizplus.com/quiz/48724
Sample Questions
Q1) What is the term for any function or activity that uses resources but does not create value?
A) goods
B) investment
C) services
D) waste
Q2) Which of the following is a benefit an organization might receive from obtaining ISO 9000 certification?
A) They will compete more successfully in global markets.
B) They will have higher costs of raw materials, but higher quality as well.
C) They will have improved ease of locating suppliers.
D) They will have fewer obstacles in facility layout.
Q3) What type of production emphasizes production of goods to meet actual current demand, therefore minimizing the need to hold inventories of finished goods and work-in-process?
A) PERT
B) ERP
C) MRP
D) just-in-time (JIT)
Q4) Explain the movement toward lean production.
Page 18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Business Communication: Creating and Delivering Messages That Matter
Available Study Resources on Quizplus for this Chatper
175 Verified Questions
175 Flashcards
Source URL: https://quizplus.com/quiz/48725
Sample Questions
Q1) As international trade grows in importance, intercultural communication will become increasingly important to long-term business success.
A)True
B)False
Q2) An enthusiastic CEO announced to his audience at the shareholders' meeting, "Fifty million dollars worth of services were sold last year!" He could have increased the impact of this statement by using the active voice.
A)True
B)False
Q3) Speaking immediately after someone stops talking shows poor listening skills.
A)True
B)False
Q4) What are a manager's facial expressions, posture, and gestures examples of?
A) nonverbal communication
B) physical communication
C) pseudo communication
D) verbal communication
Q5) Define and explain effective communication. Why is it important in the business environment?
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Labour Unions and Collective Bargaining
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/48706
Sample Questions
Q1) Rather than resort to strikes and lockouts when workers cannot agree with employers, the two sides may decide to bring in a neutral third party. This their party person is called a picketer.
A)True
B)False
Q2) Union workers tend to earn higher wages and receive better benefits than non-union workers performing similar jobs.
A)True
B)False
Q3) Arbitration is a process in which a neutral third party has the authority to resolve a dispute by rendering a binding decision.
A)True
B)False
Q4) The laws dealing with labour relations were based mainly on British law and later influenced by American laws.
A)True
B)False
Q5) Explain the types of topics discussed in a collective bargaining process.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Business Law
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/48708
Sample Questions
Q1) What laws, which may be written and passed by federal, provincial, or city governments, are enacted by legislative bodies?
A) common laws
B) civil laws
C) all laws
D) statutory laws
Q2) When contracts don't spell out the conditions that determine when exactly the title to goods changes hands, they aren't binding agreements between the buyer and the seller.
A)True
B)False
Q3) Which type of damages are monetary payments a party who breaches a contract is ordered to pay in order to compensate the injured party for the actual harm suffered due to the breach of contract?
A) specific damages
B) punitive damages
C) nominal damages
D) compensatory damages
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Personal Finance
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/48710
Sample Questions
Q1) When you go to school and work you may have to spend a significant amount of money on gas and car maintenance every month. With some creativity and flexibility you may find that some of these costs are not completely non-discretionary.
A)True
B)False
Q2) How can you apply the principles of budgeting to your own finances?
Q3) Which of the following is an example of an individual retirement plan?
A) an RESP
B) an RRSP
C) a traditional IRA
D) a divesting plan
Q4) Explain the importance of building a good credit history.
Q5) What should you analyze as the first step to developing a budget?
A) current interest rates
B) revenues and expenses
C) how you stand compared to others your age
D) credit card receipts
Q6) When you purchase common stock you have a stake in ownership of the corporation.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22