Solomon: Better Business, Second Canadian Edition Chapter 2: The Environment of Business
127) The four degrees of competition are absolute measures, ranking on a 100-point scale. a. True Incorrect: The four degrees of competition are four points on a scale, not absolute measures. b. False Correct: The four degrees of competition are four points on a scale, not absolute measures. Answer: b Diff: 2 Type: TF Page Reference: 32 Objective: 2.5 Summarize the four degrees (levels) of competition that may exist within an industry. 128) Canada’s Competition Review Board reviews all mergers in all sectors to determine whether they will likely result in substantial lessening or prevention of competition. a. True Incorrect: Canada’s Competition Bureau reviews all mergers in all sectors to determine whether they will likely result in substantial lessening or prevention of competition. b. False Correct: Canada’s Competition Bureau reviews all mergers in all sectors to determine whether they will likely result in substantial lessening or prevention of competition. Answer: b Diff: 1 Type: TF Page Reference: 32 Objective: 2.5 Summarize the four degrees (levels) of competition that may exist within an industry. 129) Natural monopolies occur when a company receives a patent giving it exclusive use of an invented product or process. a. True Incorrect: Legal monopolies occur when a company receives a patent giving it exclusive use of an invented product or process. b. False Correct: Legal monopolies occur when a company receives a patent giving it exclusive use of an invented product or process. Answer: b Diff: 1 Type: TF Page Reference: 33 Objective: 2.6 Explain why government in Canada allows some monopolies to exist and how consumer interests are protected. 60 Copyright © 2016 Pearson Canada Inc.