Question 1

The only real effect of inflation is to increase the purchasing power of a person's money.

Accepted Answer

A) True 
 B)False

Question 2

The most successful firms are getting leaner by focusing on their core competencies,but these new business models call for ________.

Accepted Answer

A)   environmental management
B)   unprecedented coordination
C)   new corporate boundaries
D)   unprecedented funds
E)   none of these are correctF) A) and B)
G) A) and C)

Question 3

What is a vertical merger?

Accepted Answer

A vertical merger occurs when ...

Question 4

A(n) ________ is a merger to two firms that have previously had a buyer-seller relationship.

Accepted Answer

A)   hostile take over
B)   conglomerate merger
C)   friendly take over
D)   vertical merger
E)   enterprise mergerF) None of the above
G) A) and E)

Question 5

A product such as bicycles can be marketed in much the same way in Canada and China.

Accepted Answer

A) True 
 B)False

Question 6

Product life cycles are somewhat longer than they were 20 years ago because products have become more complex.

Accepted Answer

A) True 
 B)False

Question 7

The pattern of short-term ups and downs in the economy is known as

Accepted Answer

A)   a recession.
B)   the business cycle.
C)   aggregate output.
D)   gross domestic product.
E)   economic growth.F) All of the above
G) B) and D)

Question 8

Which of the following is the best description of the balance of trade?

Accepted Answer

A)   The total of a nation's revenues from income taxes minus its expenditures on goods and services
B)   Changes in currency values and price changes
C)   The profitability of business firms that are exporting goods and services
D)   The total of a nation's exports minus its imports
E)   The total value of all services provided to foreigners during a one-year time periodF) None of the above
G) A) and B)

Question 9

Which of the following is the best definition of outsourcing?

Accepted Answer

A)   Any activity that adds value to some input by transforming it into an output for an internal or external customer
B)   An approach by which firms move away from department-oriented organization and toward process-oriented team structures that cut across old departmental boundaries
C)   The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials and resources
D)   The strategy of using the internet and word-of-mouth marketing to spread product information
E)   The strategy of owning the means by which an organization produces goods or servicesF) D) and E)
G) None of the above

Question 10

The total value of all goods and services produced by a country in a 12-month period regardless of where the factors of production are located is known as

Accepted Answer

A)   Net National Product.
B)   Net National Income.
C)   Net National Profit.
D)   Gross National Product.
E)   Gross Domestic Product.F) B) and E)
G) None of the above

Question 11

Profits from a Canadian-owned automobile factory in Brazil are included Brazil's GNP,but not its GDP.

Accepted Answer

A) True 
 B)False

Question 12

John is experiencing __________ unemployment because he is out of work temporarily while looking for a new job,while Sally is experiencing _______ unemployment because she is out work because of a downturn in the business cycle.

Accepted Answer

A)   seasonal; structural
B)   structural; seasonal
C)   frictional; cyclical
D)   cyclical; frictional
E)   seasonal; cyclicalF) B) and C)
G) None of the above

Question 13

Which of the following best describes real GDP?

Accepted Answer

A)   Total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system
B)   Total quantity of goods and services produced by an economic system
C)   Total value of all goods and services produced within a given period by a national economy through domestic and international factors of production
D)   Total value of all goods and services produced within a given period by a national economy,through domestic factors of production measured in current dollars,or with all components valued at current prices
E)   Total value of all goods and services produced by a national economy within a given period,calculated to account for changes in currency values and price changesF) D) and E)
G) B) and D)

Question 14

Canada's GDP in 2010 was about

Accepted Answer

A)   $575 billion.
B)   $1 trillion.
C)   $1.6 trillion.
D)   $2.7 trillion.
E)   $8.7 trillion.F) C) and E)
G) A) and B)

Question 15

The socio-cultural environment describes

Accepted Answer

A)   the relationship between government and unions.
B)   the relationship between business and government.
C)   the relationship between international and domestic corporations.
D)   the customs,values,attitudes,and demographic characteristics of the society in which an organization functions.
E)   the intensity of the competition in an industry.F) A) and E)
G) B) and D)

Question 16

The advent of the iPod saw an increase in the downloading of music from the internet.Music artists are noticing a decrease in the sales of their CDs,which is an effect of which dimension of the external environment?

Accepted Answer

A)   Technological
B)   Economic
C)   Socio-cultural
D)   Political
E)   GlobalF) D) and E)
G) A) and B)

Question 17

The consumer price index

Accepted Answer

A)   measures inflation by measuring price increases.
B)   measures price increases but not changes in consumer purchasing patterns.
C)   is not able to measure deflation.
D)   continues to include the same items in the typical "basket of goods" so that price increases in previous years can be compared to price increases in the current year.
E)   is no longer accepted as a good measure of price increases.F) B) and D)
G) B) and C)

Question 18

A hostile takeover occurs when one organization buys enough of another company's shares to take control of that company even though that company may be opposed to the takeover.

Accepted Answer

A) True 
 B)False

Question 19

Many firms use ________ to provide cafeteria operations for their customers.

Accepted Answer

A)   enterprise management
B)   disruption management
C)   outsourcing
D)   core competencies
E)   vertical integrationF) B) and D)
G) All of the above

Question 20

Deflation

Accepted Answer

A)   is a period of stagnant prices.
B)   results when the Bank of Canada lowers interest rates.
C)   may occur when prices fall as a result of increased industrial productivity.
D)   cannot happen in a modern industrialized economy.
E)   is always bad because it means that the economy is not doing well.F) B) and D)
G) None of the above

Exam 2: Understanding the Environments of Business

The consumer price index

Correct AnswerverifiedShow Answer

John is experiencing __________ unemployment because he is out of work temporarily while looking for a new job,while Sally is experiencing _______ unemployment because she is out work because of a downturn in the business cycle.

Correct AnswerverifiedShow Answer

The total value of all goods and services produced by a country in a 12-month period regardless of where the factors of production are located is known as

Correct AnswerverifiedShow Answer

Which of the following is the best description of the balance of trade?

Correct AnswerverifiedShow Answer

The only real effect of inflation is to increase the purchasing power of a person's money.

Correct AnswerverifiedShow Answer

The socio-cultural environment describes

Correct AnswerverifiedShow Answer

Many firms use ________ to provide cafeteria operations for their customers.

Correct AnswerverifiedShow Answer

Product life cycles are somewhat longer than they were 20 years ago because products have become more complex.

Correct AnswerverifiedShow Answer

Profits from a Canadian-owned automobile factory in Brazil are included Brazil's GNP,but not its GDP.

Correct AnswerverifiedShow Answer

The most successful firms are getting leaner by focusing on their core competencies,but these new business models call for ________.

Correct AnswerverifiedShow Answer

A(n) ________ is a merger to two firms that have previously had a buyer-seller relationship.

Correct AnswerverifiedShow Answer

A product such as bicycles can be marketed in much the same way in Canada and China.

Correct AnswerverifiedShow Answer

The advent of the iPod saw an increase in the downloading of music from the internet.Music artists are noticing a decrease in the sales of their CDs,which is an effect of which dimension of the external environment?

Correct AnswerverifiedShow Answer

Canada's GDP in 2010 was about

Correct AnswerverifiedShow Answer

The pattern of short-term ups and downs in the economy is known as

Correct AnswerverifiedShow Answer

What is a vertical merger?

Correct AnswerverifiedA vertical merger occurs when ...View AnswerShow Answer

Which of the following is the best definition of outsourcing?

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Which of the following best describes real GDP?

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A hostile takeover occurs when one organization buys enough of another company's shares to take control of that company even though that company may be opposed to the takeover.

Correct AnswerverifiedShow Answer

Deflation

Correct AnswerverifiedShow Answer

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John is experiencing ____ unemployment because he is out of work temporarily while looking for a new job,while Sally is experiencing _ unemployment because she is out work because of a downturn in the business cycle.

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A vertical merger occurs when ...
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