Business Fundamentals
Test Bank
Course Introduction
Business Fundamentals is an introductory course designed to provide students with a comprehensive understanding of the core principles and concepts that underpin the world of business. The course explores key topics such as organizational structure, marketing, finance, management, operations, and entrepreneurship. Through real-world examples and case studies, students gain insights into how businesses are formed, managed, and grown in a dynamic global environment. Emphasis is placed on critical thinking, problem-solving, and the ethical considerations required for effective business decision-making, preparing students for more advanced studies or entry-level positions in the business sector.
Recommended Textbook
Future of Business 3rd Canadian Edition by Norm Althouse
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16 Chapters
2162 Verified Questions
2162 Flashcards
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Chapter 1: understanding Evolving Economic Systems and Competition
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145 Verified Questions
145 Flashcards
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Sample Questions
Q1) The agricultural sector in Guatemala accounts for about one-quarter of the nation's GDP,two-thirds of its exports,and half of its labour force.This type of information would be revealed through which perspective?
A) regional monetary policy
B) aggregated economic
C) area economics
D) microeconomics
Answer: D
Q2) In perfect competition,which of the following conditions exist?
A) only one producer
B) no relationship between supply and demand
C) a large number of buyers and few sellers
D) a large number of sellers producing nearly identical products
Answer: D
Q3) Which of the following directions describe the slope of the supply curve?
A) downward and to the left
B) upward and to the right
C) horizontal
D) downward and to the right
Answer: B
Page 3
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Chapter 2: the Global Marketplace and Governments Roles
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121 Verified Questions
121 Flashcards
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Sample Questions
Q1) Which of the following is an international bank that normally provides short-term loans to countries that are unable to meet their budgetary expenses?
A) the Financial Investment Fund
B) the North Atlantic Trade Bank
C) the International Monetary Fund
D) the World International Federation
Answer: C
Q2) What three companies were the initial signers of the North American Free Trade Agreement?
Answer: Canada,United States,and Mexico
Q3) What is the most fundamental reason for the growth in world trade?
Answer: the need for businesses to expand their market
Q4) Romania has imports of $16.7 billion and has an unfavourable balance of trade.This means that Romania has which of the following?
A) less than $16.7 billion in exports
B) exactly $16.7 billion in exports
C) more than $16.7 billion in exports
D) low inflation
Answer: A
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Chapter 3: Social Trends, social Responsibility, and Making
Ethical Decisions in Business
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134 Verified Questions
134 Flashcards
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Sample Questions
Q1) There is a strong business case for practising business integrity and behaving in a socially responsible manner.
A)True
B)False
Answer: True
Q2) According to management expert Peter Drucker,what are the basic dimensions of social responsibility?
Answer: legality and responsibility
Q3) Walmart ran a series of advertisements in trade journals with the headline " We're Looking for Quality Products That Are Guaranteed Not to Last," meaning products that can be reused or recycled.This concern for the environment is one way that Walmart demonstrates which of the following?
A) macroeconomics
B) social responsibility
C) the marketing concept
D) environmental services
Answer: B
Q4) Why are "component lifestyles" important for marketers to understand?
Answer: They increase the complexity of consumer's buying habits.
Page 5
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Chapter 4: Using Technology to Manage Information and for Business Success
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116 Verified Questions
116 Flashcards
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Sample Questions
Q1) A retail manager who wants to know how his store's sales would be affected if he reduces the number of different national brands the store carries would use which of the following types of information systems?
A) a transaction processing system
B) an information reporting system
C) a decision support system
D) an expert system
Q2) Companies adopt portal technology to take advantage of a shorter time to perform tasks and processes.
A)True
B)False
Q3) Data marts are special subsets of a data warehouse that deal with a single area of data,and are organized for quick analysis
A)True
B)False
Q4) Many companies have hired a chief information officer (CIO)to be responsible for managing all information resource.
A)True
B)False
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Chapter 5: Forms of Business Ownership
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120 Flashcards
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Sample Questions
Q1) Which of the following provides the legal and managerial guidelines for operating the firm?
A) the constitution
B) the articles of incorporation
C) the corporate structure
D) the bylaws
Q2) Faye Adkins had a relish that her family and friends raved about.As a result of moral and financial support from her family,Adkins began her own business and sells it in local supermarkets and on the Internet.Faye Adkins is an example of which of the following?
A) a sole partnership
B) a sole proprietorship
C) an S corporation
D) a limited partnership
Q3) Adam Ratchasky purchased a franchise from Midas Muffler.Adam is the ____________________ in this franchise agreement.
Q4) In a ____________________ partnership,partners have unlimited liability for all of the firm's business obligations and control its operations.
Q5) What is the first step in incorporating a company?
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Chapter 6: Entrepreneurship and Small Business
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) Small businesses tend to have greater flexibility than large businesses.
A)True
B)False
Q2) The two sources for debt financing are angel investors and venture capitalists.
A)True
B)False
Q3) Jim Lightsey sold stock to investors in order to finance his company,which will run an Internet auction for sports memorabilia.Lightsey used which type of financing?
A) equity
B) liquid
C) venture
D) debt
Q4) 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
Q5) What are the two leading reasons that women start their own firms?
Q6) List the four characteristics common to all small businesses
Page 8
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Chapter 7: Management and Leadership in Todays Organizations
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142 Verified Questions
142 Flashcards
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Sample Questions
Q1) No matter what the crisis,there are some basic guidelines managers should follow to minimize the negative outcomes.Which of the following is an example of one of those guidelines?
A) Managers should avoid any direct contact with the press.
B) Managers should release ambiguous statements to the media to give them time to assess the problem.
C) Managers should ask for help if it is needed.
D) Managers should take their time so they can have a thorough understanding of the crisis and have all the information on how to handle it at their fingertips.
Q2) 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 indicated by Lindsey's activities?
A) consultative
B) autocratic
C) one directional
D) closed door
Q3) What two types of leadership style use empowerment?
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Chapter 8: Designing Organizational Structures
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Sample Questions
Q1) ____________________ are teams of employees who are from about the same level of the organizational hierarchy but from different functional areas.
Q2) Which of the following principles guarantees that each employee will have only one direct supervisor?
A) accountability
B) divisional unity
C) functional unity
D) unity of command
Q3) Which of the following is a commonly used method for departmentalizing a firm?
A) by profitability
B) by product
C) by seniority
D) by managerial level
Q4) The ____________________ organization is a design with direct,clear lines of authority and communication.
Q5) List the three basic types of work teams.
Q6) Briefly discuss the relationship between division of labour and specialization.
Q7) What type of organizational structure is well suited to small,entrepreneurial firms?
Page 10
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Chapter 9: Motivating Employees
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Sample Questions
Q1) Job enlargement means the redesign of a job to increase its responsibility and challenge.
A)True
B)False
Q2) What does the Theory Z style of management emphasize?
A) long-term employment
B) extensive specialization
C) fast career development
D) very formal control over employees
Q3) Elton Mayo,North America's first industrial psychologist,was responsible for formulating which of the following?
A) the principles of scientific management
B) Theory X and Theory Y
C) the explanation of the Hawthorne effect
D) the motivational-maintenance theory
Q4) What are managers doing when they horizontally expand a job to increase the number and variety of jobs an employee performs?
Q5) In Maslow's hierarchy of needs,the most basic needs are ____________________-the needs for food,water,and shelter.
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Chapter 10: Managing Human Resources and Labour Relations
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) What are the two sources of job applicants?
Q2) Recruitment is the attempt to find and attract qualified applicants in the external labour market.
A)True
B)False
Q3) A job ____________________ spells out the skills,knowledge,and abilities a person must have to fill a job.
Q4) Abed Mahomet works for a food service that provides prepared entrees to restaurants.The food service's workers are represented by a union,but Mahomet pays no dues to the union and is not a member.Mahomet works in which of the following type of shop?
A) a closed shop
B) an agency shop
C) a mandated shop
D) an open shop
Q5) Job description refers to the specific location or office where a job is done.
A)True
B)False
Q6) ____________________ appraisals are comparisons of actual job performance with expected performance. Page 12
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Chapter 11: Achieving World-class Operations Management
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136 Verified Questions
136 Flashcards
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Sample Questions
Q1) Operations managers activities are BEST described by which of the following?
A) They face the challenge of combining people and other resources to produce high-quality products.
B) They do not decide which products the company should produce but act on the decisions of upper management.
C) They work closely with people in the marketing and production departments only.
D) They control about one-quarter of a firm's assets.
Q2) Product layout is also called assembly-line layout.
A)True
B)False
Q3) Which of the following best describes Six Sigma?
A) a technique for routing that eliminates bottlenecks
B) a quality control process
C) a method for customizing production scheduling
D) a type of reverse auction
Q4) ____________________ combine automated workstations with computer-controlled transportation devices called automatic guided vehicles that move materials between workstations and into and out of the system.
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Chapter 12: Understanding the Customer
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140 Flashcards
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Sample Questions
Q1) Several decades ago before the development of supermarkets,people shopped at small neighbourhood grocery stores.The grocery storeowner knew their name,what brands they preferred,and when they were most likely to purchase what product.What do large supermarket chains have today to supply them with similar types of information?
Q2) The four Ps are product,promotion,price,and possession.
A)True
B)False
Q3) What is the primary focus of not-for-profit marketers?
Q4) A(n)____________________ takes place when the consumer trades money for desired goods and services.
Q5) Every time Evangeline Kryl buys a Subway sandwich,she gets a stamp on a card that she carries in her wallet.When the card is full,she gets a free sandwich.This sort of program is an example of which of the following strategies?
A) convenience selling
B) transactional marketing
C) relationship marketing
D) exchange targeting
Q6) What are the first two steps in the consumer decision-making process?
Page 15
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Chapter 13: Creating Marketing Strategies
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174 Verified Questions
174 Flashcards
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Sample Questions
Q1) Which of the following represents the markup on a scarf that costs $4 and sells for $6?
A) 50%
B) 33 1/3%
C) 40%
D) 20%
Q2) List the four major categories of consumer products.
Q3) Business products are classified into two categories.What are they?
A) special use and general use
B) capital and expense
C) installation and accessory
D) revenue and expense
Q4) The process that products go through as they pass through their introduction,growth,maturity,and decline stages is called which of the following?
A) the marketing mix
B) the stages of product development
C) the product mix cycle
D) the product life cycle
Q5) List two reasons that a company might use penetration pricing.
Q6) Give an example of bundling.
Page 16
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Chapter 14: Using Financial Information and Accounting
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) Which of the following is the BEST example of a current asset for a clinical psychologist?
A) the building in which his clinic is located
B) money he pays for rent and utilities
C) credit card charges by patients
D) his reputation as a compassionate man
Q2) What do liquidity ratios measure?
A) long-term financial stability
B) earnings per share
C) annual sales and profits
D) short-term financial stability
Q3) Accounting is the process of collecting,recording,classifying,summarizing,reporting,and analyzing the financial condition of an organization.
A)True
B)False
Q4) A ____________________ is the financial statement based on the accounting equation and that summarizes a firm's financial position at a specific point in time.
Q5) Land,buildings,machinery,equipment,and furniture are called ____________________ assets.
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Chapter 15: Understanding Money, financial Institutions, and
the Securities Markets
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149 Verified Questions
149 Flashcards
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Sample Questions
Q1) What is the most important function of the Bank of Canada?
Q2) The class of equity securities that provides the most potential for growth and appreciation is known as which of the following?
A) preferred shares
B) common shares
C) convertible preferred shares
D) convertible bonds
Q3) The ____________________ market is the market in which already-issued securities are bought and sold among investors.
Q4) What is the Bank of Canada's most frequently used and most flexible tool?
A) open market operations
B) the discount rate
C) the reserve requirement
D) the prime rate
Q5) Deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand are called ____________________ deposits.
Q6) Brokerage firms are paid commissions only when the customer earns a profit.
A)True
B)False
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Chapter 16: Managing the Firms Finances
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144 Flashcards
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Sample Questions
Q1) ____________________ loans are given on the basis of the firm's credit and the lender's previous experience with the firm.
Q2) What is the willingness to bear risk without insurance?
A) risk avoidance
B) risk assumption
C) risk reduction
D) risk transfer
Q3) Which of the following are a security that represent an ownership interest in a corporation and give the holders voting rights?
A) treasury shares
B) common shares
C) par value shares
D) preferred shares
Q4) Lowell Arden bought and sold shares for a profit.The profit Arden earned on his investment in shares is known as which of the following?
A) investment return
B) investment certainty
C) investment risk
D) investment probability
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