Business Essentials, Sixth Canadian Edition, with MyBusinessLab, 6E By Ronald J. Ebert
Email: richard@qwconsultancy.com
CHAPTER 1 THE CANADIAN BUSINESS SYSTEM MULTIPLE CHOICE QUESTIONS. Choose the one alternative that best completes the statement or answers the question. 1)Which of the following statements is correct with regard to the opening case entitled “Opportunities and Challenges in the Mobile Phone Market"? A)RIM has been very successful so far, but there are big potential problems on the horizon. B)There is now a general consensus among industry experts that RIM is going to be the leading company in the mobile phone market. C)To date competition is not tough in the mobile phone market. D)The "bring your own device" trend has just about run its course. E)Unlike other phone makers, RIM has not been plagued with patent infringement lawsuits. Answer: A Diff: 2 Skill: Recall Objective: 1.1 A-Heading: The Idea of Business and Profit 2)Profit is A)what remains after business expenses are subtracted from business revenues. B)equal to the market value of shares in a company. C)equal to total revenue minus cash expenses. D)the amount of sales minus 50 percent. E)double the amount the company pays in taxes. Answer: A Diff: 1 Skill: Recall Objective: 1.1 A-Heading: The Idea of Business and Profit 3)This week, Jessica's Variety Store had sales of $4,000, employees were paid $1,000, the cost of goods was $1,500, and rent was $500. Profit for the week was A)$3,000. B)$1,000. C)$4,000. D)$2,000. E)$1,500. Answer: B Diff: 2 Skill: Application Objective: 1.1 A-Heading: The Idea of Business and Profit 4)How are provincial universities in Canada different from business firms? A)They do not seek to make a profit B)They are not affected by the global environment C)Their organizational boundaries are narrower than normal D)They do not produce goods or services E)They are more important to society than business firms Answer: A Diff: 2 Skill: Recall
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Objective: 1.1 A-Heading: The Idea of Business and Profit 5)__________ is the difference between a business firm's revenues and its expenses. A)Cost of goods sold B)Productivity C)Sales D)Debt E)Profit Answer: E Diff: 1 Skill: Recall Objective: 1.1 A-Heading: The Idea of Business and Profit 6)Profit is A)the market value of shares of stock in a company. B)the level of expenses divided by the firm’s assets. C)what remains after business expenses are subtracted from business revenues. D)gross revenue minus taxes a company pays. E)gross sales minus taxes a company pays. Answer: C Diff: 1 Skill: Recall Objective: 1.1 A-Heading: The Idea of Business and Profit 7)Examples of businesses include all of the following except A)local supermarkets. B)one-person businesses, like barbershops. C)non-profit organizations. D)large corporations like Canadian Pacific or Alcan Aluminum. E)farms. Answer: C Diff: 2 Skill: Application Objective: 1.1 A-Heading: The Idea of Business and Profit
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8)Most of the goods and services consumed in Canada are produced by A)countries in the European Union. B)businesses in the U.S. C)countries of the Pacific Rim. D)the Canadian government. E)business firms. Answer: E Diff: 1 Skill: Application Objective: 1.1 A-Heading: The Idea of Business and Profit 9)Not-for-profit organizations A)are content with small profits, whereas business firms want large profits B)are more important than business firms. C)use the funds they generate from government grants or the sale of goods or services to provide service to the public. D)do not sell goods or services.
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E)are not allowed to operate in the manufacturing sector. Answer: C Diff: 2 Skill: Recall Objective: 1.1 A-Heading: The Idea of Business and Profit 10)Generally speaking, which one of the factors of production is most important? A)Land B)Labour C)Capital D)Entrepreneurship E)None of these Answer: E Diff: 2 Skill: Recall Objective: 1.2 A-Heading: Economic Systems Around the World 11)The key difference between economic systems is the different ways in which they manage A)the factors of production. B)the transportation of goods within their borders. C)government rules and regulations. D)the payment of workers. E)none of these answers is accurate. Answer: A Diff: 2 Skill: Recall Objective: 1.2 A-Heading: Economic Systems Around the World 12)An economic system is A)an agreement between countries that deal with free trade. B)the way in which a nation allocates its resources among its citizens. C)a government decree that requires certain goods and services to be provided. D)a long standing agreement between citizens and governments on how an economy is run. E)a large government department that oversees how the economy is running. Answer: B Diff: 2 Skill: Recall Objective: 1.2 A-Heading: Economic Systems Around the World 13)The key difference between economic systems is A)the structure of government. B)the management of capital and labour. C)the management of the factors of production. D)who controls the banks. E)who controls large industries like steel and auto manufacturing. Answer: C Diff: 2 Skill: Recall Objective: 1.2 A-Heading: Economic Systems Around the World
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14)In a command economy, the central government A)supports free enterprise in every way possible B)allocates all or most factors of production C)encourages citizens to buy shares of stock in small companies D)keeps its control activities to a minimum E)buys surpluses from private sector companies to keep prices from falling Answer: B Diff: 2 Skill: Recall Objective: 1.2 A-Heading: Economic Systems Around the World 15)A nation's economic system is its way of A)allocating resources among its citizens. B)collecting taxes. C)managing the money supply. D)regulating business firms by government laws. E)supplementing low-income families. Answer: A Diff: 2 Skill: Recall Objective: 1.2 A-Heading: Economic Systems Around the World 16)In terms of factors of production, Imperial Oil’s crude oil reserves are an example of _______, while market forecasts are an example of ________. A)labour; entrepreneurs B)information; labour C)capital; information D)natural resources; information E)information; natural resources Answer: C Diff: 2 Skill: Application Objective: 1.2 A-Heading: Economic Systems Around the World 17)All of the following are factors of production except A)natural resources. B)labour. C)capital. D)entrepreneurs. E)technology. Answer: E Diff: 2 Skill: Application Objective: 1.2 A-Heading: Economic Systems Around the World 18)Entrepreneurs are important because they A)make lots of money. B)are good at making decisions. C)take risks to start new businesses. D)are good managers. E)are rich. Answer: C Diff: 2
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