Chapter 01
The Dynamic Business Environment

True / False Questions
 
1. Any activity that produces a good or provides a service to others, while operating at a profit, is considered a business. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-02 Business Fundamentals
 
2. Businesses seek to earn a profit by providing goods and services to others. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-02 Business Fundamentals
 
3. Revenue is the amount a business earns above and beyond what it spends for expenses and costs. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses

4. All businesses make a profit. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses
 
5. If a business' costs and expenses are greater than its revenue, it will suffer a loss. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses
 
6. Profits of a business include the salaries paid to the owners and employees of that business. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses
 
7. Any loss from a business will result in a bankruptcy. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses

8. An owner who closes a business to start a new one is reported as an ‘exit' by Industry Canada. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses
 
9. The only way a firm can increase its profits is to increase its sales revenue. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses
 
10. The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses
 
11. The XYZ Corporation generated total revenues of $30 million dollars while incurring expenses of $17 million. Therefore, during the year XYZ Corp. earned a profit of $13 million. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses

12. One of the elements of risk is the chance of a loss. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-04 Matching Risk with Profit
 
13. Profit is over and above the money you pay yourself in salary. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-04 Matching Risk with Profit
 
14. Maintaining a high quality of life requires the combined efforts of businesses, non-profit organizations, and volunteer groups. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-05 Standard of Living and Quality of Life
 
15. The term standard of living refers to the amount of goods people can buy with the money they make from their business. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-05 Standard of Living and Quality of Life

16. The more money businesses create, the more is potentially available to improve the quality of life for everyone. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-05 Standard of Living and Quality of Life
 
17. Stakeholders are all the people who stand to gain or lose by the policies and activities of a business. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
18. Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, government officials, and environmentalists. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
19. By balancing the demands of customers and stockholders, businesses have actually satisfied the demands of all stakeholders. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders

20. A Canadian company is said to be outsourcing when it sources part of the purchased inputs from outside of Canada. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
21. Companies have gone from outsourcing production jobs to offshoring research and development. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
22. A recent study estimates that outsourcing will continue to grow at 5-10% across all functions such as information technology, legal services, and human resource management. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
23. In Canada, most of the offshoring that occurs is with China. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders

24. It is legal to outsource and offshore. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
25. Business decisions should consider the interests of customers, employees, suppliers, government officials, and stockholders. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
26. An effort to please one group of stakeholders eventually pleases all stakeholders. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
27. A charitable organization, whose goals do not include making a personal profit for its owners or organizers, such as the Red Cross or the Salvation Army, is best classified as a small business. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-07 Using Business Principles in Non-Profit Organizations

28. Non-profit organizations are similar to businesses in that they often provide goods and services that satisfy the needs of society. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-07 Using Business Principles in Non-Profit Organizations
 
29. Unlike businesses, employees of non-profit organizations are not required to learn the business skills of accounting, marketing, or financial management. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-07 Using Business Principles in Non-Profit Organizations
 
30. Starting a business is a riskier path toward business success than working your way up the ranks of a large business. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-08 Entrepreneurship Versus Working for Others
 
31. Paid vacations and a generous pension are among the benefits provided by the government to entrepreneurs. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-08 Entrepreneurship Versus Working for Others

32. A lesson to learn from the story of Ron Joyce, who became a franchisee in the first Tim Hortons, is that to be a successful entrepreneur you need to find something that you love to do. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-08 Entrepreneurship Versus Working for Others
 
33. Money is one of the five factors of production that contributes to the creation of wealth. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
34. Tools, machinery, and buildings are all types of capital resources. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
35. Recent studies have shown that the major advantage rich nations have over poor nations is an abundance of land and labour. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth

36. Entrepreneurship is one of the five factors of production that contribute to the creation of wealth. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
37. The two factors of production that are the most important for creating wealth are entrepreneurship and the effective use of knowledge. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
38. Capital is now easy for firms to find in world markets. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
39. Countries with an inadequately trained work force and few entrepreneurs often achieve the highest levels of income by relying on a large number of workers. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth

40. If they wish to create more wealth, poor nations should focus on policies that increase entrepreneurship and the effective use of knowledge. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
41. One of the five factors of production is capital, which includes machines, tools, buildings, land, money, or whatever else is used in the production of goods. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
42. The social environment is not considered an element of the business environment. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-10 The Business Environment
 
43. The business environment refers to the surrounding factors that either help or hinder the development of businesses. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-10 The Business Environment

44. Well-managed businesses will grow and prosper regardless of the business environment in which they operate. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-10 The Business Environment
 
45. Taxes and government regulations are part of the legal environment in which businesses operate. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-11 The Legal Environment
 
46. High taxes and government restrictions help to encourage entrepreneurs by providing greater incentives for people to work hard and create profit. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-11 The Legal Environment
 
47. Governments can increase the risk of entrepreneurship by passing laws that enable business people to write contracts that are enforceable in court. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-11 The Legal Environment

48. Corruption and illegal activities are expected in a capitalist system and can be beneficial. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-11 The Legal Environment
 
49. Countries that keep taxes and regulations to a minimum provide the best environment for competitive businesses. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-11 The Legal Environment
 
50. Laws that allow businesses to write enforceable contracts decrease the risk of doing business. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-11 The Legal Environment
 
51. The economy affects both businesses and consumers. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-12 The Economic Environment

52. The movement of a country's currency relative to other currencies is not part of the economic environment. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-12 The Economic Environment
 
53. The degree of entrepreneurship present is part of the economic environment. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-12 The Economic Environment
 
54. Technology refers to innovations from applied science or engineering research. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
55. E-business is mostly done with Web technologies. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment

56. E-commerce is the buying and selling of products and services by businesses and consumers over the Internet. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
57. E-commerce only covers one aspect of e-business. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
58. Technology refers to everything that makes business operations more efficient and productive. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
59. Technology affects people in all industries. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment

60. Technology allows firms to be more responsive to their customers' wants and needs. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
61. Traditional businesses have been learning how to deal with competition from B2B firms. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
62. Business owners are often reluctant to enter the e-commerce market because of the sizeable investment required in land, fixtures, and buildings. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
63. The B2C market consists of selling goods and services from one business to another. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment

64. The Internet has increased and improved a business's responsiveness to their customers. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
65. The Internet is more important to business-to-business segment of e-commerce than to the business-to-consumer segment of e-commerce. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
66. PIPEDA sets out how companies may collect, use and disclose personal information. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
67. Crowdsourcing helps businesses to find solutions to challenges. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment

68. Identity theft is no longer a problem in Canada or the United States. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
69. A recent report found that 25 percent of small businesses use social media. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
70. Industry Canada sets out the ground rules for how private sector organizations may collect, use, or disclose personal information in the course of commercial activities. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
71. Since the great recession, competition has decreased. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment

72. The goal for many companies is 5 percent defects in their products. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
73. To remain competitive in today's market, firms must produce a quality product and offer outstanding service and products at a reasonable price. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
74. Producing a high-quality product will ensure success in the competitive environment. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
75. Successful firms follow a customer-driven strategy, as opposed to the management-driven strategy used in the past. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment

76. The competitive environment now empowers managers to make decisions quickly for their front-line employees. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
77. Empowerment consists of employees from different departments within an organization formed to improve employee effectiveness. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
78. To be implemented successfully, empowerment requires that employees are better trained. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
79. The goal of empowerment in the work environment is to give management more control over the actions of lower-level workers. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment

80. One way an organization can restructure to better meet the needs of customers is to train front-line people to make decisions within certain limits. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
81. An example of a customer-driven organization is Disney amusement parks. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
82. The statistical study of the human population to describe its size, age, gender, and income is known as diversity recognition. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
83. Businesses use demographic studies to understand where people live, their lifestyles, and what they are likely to buy. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment

84. The baby-boom includes those people born after 1995. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
85. Demographic trends suggest that businesses will benefit from offering elder care and child care to help employees balance the demands of job and family. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
86. Generation Y are also known as Millennials. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
87. Generation Y are also known as baby boomers. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment

88. Most students are part of Generation X. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
89. The 20-34 age group is declining in Canada. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
90. Companies will not have to respond to the trend of an aging population. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
91. The portion of the Canadian population that is very young (0-4) is forecast to decrease. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment

92. Population studies indicate that the percentage of elderly in Canada is likely to remain unchanged. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
93. Demographic changes create new business opportunities. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
94. Some observers feel that baby boomers will have a large impact on the economy even as they reach retirement age. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
95. Baby boomers are those people born between 1965 and 1980. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment

96. By 2036, one-half of the population will be Generation Z. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
97. Canada has welcomed close to 2.7 million permanent residents in the last ten years. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
98. The proportion of foreign-born in the Canadian population has been increasing since the 1990s. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
99. Companies have responded to their diverse customer base by hiring a more diversified work force. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment

100. Two important global environment changes in recent years have been the growth of global competition and the decline of free trade. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
101. Manufacturers in China, and India pose little threat to Canadian firms because they are unable to meet the quality levels demanded by Canadian and European consumers. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
102. Global competition has decreased in recent years. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
103. Increased trade has created a greater interdependence between nations. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment

104. As businesses expand to serve global markets, new jobs will be created in the manufacturing sector. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
105. Canada is insulated from economic problems in other parts of the world. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
106. World trade has grown in part because of the development of efficient distribution systems. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
107. Saving energy is part of greening. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment

108. Climate change is not important to the international business community. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
109. Greening impacts every type of business decision. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
110. Saving energy and producing products that cause less harm to the environment is called climate change. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
111. A continuously changing global environment creates a need for continuous learning. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment

112. Today, more than ever, Canadian businesses require more workers in industries that produce goods. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries
 
113. The goods-producing sector includes manufacturing, utilities, agriculture, and service. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries
 
114. The number of Canadian jobs in manufacturing has increased in the past five years. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries
 
115. Manufacturing is no longer an important part of the Canadian economy. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries

116. While the proportion of workers employed in agriculture has remained relatively constant, the average size of farms has steadily decreased over the past century. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries
 
117. Increases in productivity have allowed fewer farmers to feed more and more people. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries
 
118. The advice provided by a lawyer is an example of the service industry. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
119. In Canada, the majority of jobs are generated in the services-producing sector. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries

120. Although employment in the service sector has increased rapidly in recent years, the vast majority of workers are still employed in the goods producing sector. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
121. There are more high-paying jobs in the service sector than in the goods-producing sector. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
122. Firms providing high-paying service jobs are found in areas like health, telecommunications, and finance. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
123. The growth in the service sector in Canada has, in part, been due to technological improvements. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries

124. The transition from an agricultural economy to a manufacturing economy to a service-based economy has resulted in a serious increase in long-term unemployment. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
125. The services producing sector employs almost 79 percent of the working population. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
126. The continuing increase in the number of Canadian workers in the service sector means that more and more workers are employed in low-wage positions. 
FALSE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
127. Samir is a financial planner who helps people find ways to save for retirement and lower their taxes. Samir is employed in the service sector of the economy. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries

128. After losing her manufacturing job in the Canadian automobile industry, Juanita has found that well-paid service sector jobs require retraining and further education. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
129. Some growth in the service sector has come after large manufacturers contracted out some jobs. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
130. Some service firms have been created to provide services that used to be performed by women who were at home and not in the workforce. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
131. The service era is now coming to a close, being replaced by an information-based revolution. 
TRUE

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-20 Your Future in Business

Multiple Choice Questions
 
132. Experts say that today's post-secondary graduates will likely hold ______ jobs in their lifetime. 
A. one
B. three
C. seven
D. twelve

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-01 Using This Course to Prepare for Your Career
 
133. A business is any activity that provides goods and services while operating: 
A. machinery
B. revenue
C. at a profit
D. with social goals

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-02 Business Fundamentals
 
134. A(n) ____________ is a person who assumes the risk of starting and managing a business. 
A. manager
B. entrepreneur
C. government official
D. stakeholder

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-02 Business Fundamentals

135. A business incurs a ___________ if its costs and expenses exceed its revenues. 
A. loss
B. liability
C. debit
D. dividend

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses
 
136. __________ is the chance an entrepreneur will lose the time and money invested in a business that proves to be unprofitable. 
A. Depreciation
B. Risk
C. Fallibility
D. Redundancy

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses
 
137. The total amount of money that businesses take in over a given period of time for selling goods and services is called: 
A. profit
B. revenue
C. loss
D. retained earnings

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses

138. A loss occurs when a business's expenses are greater than its: 
A. profit
B. revenue
C. debit
D. credits

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-03 Revenues, Profits, and Losses
 
139. The chance of loss is known as: 
A. debt
B. bankruptcy
C. neglect
D. risk

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-04 Matching Risk with Profit
 
140. Often in business, the greater the risk, the: 
A. greater the potential reward.
B. lower the expected revenues.
C. lower the value provided to society.
D. greater the number of stakeholders.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-04 Matching Risk with Profit

141. For an entrepreneur to achieve success in the business world he has to be willing to take: 
A. bribes.
B. losses.
C. government assistance.
D. risks.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-04 Matching Risk with Profit
 
142. Risk is the chance an entrepreneur takes of losing money and ___ on a business. 
A. time
B. profit
C. stakeholders
D. revenue

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-04 Matching Risk with Profit
 
143. Shelley recently opened a new restaurant specializing in fast foods prepared with less fat and calories for health-conscious diners who are in a hurry. Shelley knows that there are some risks associated with opening and managing a restaurant, but she is confident that she can earn a profit. Shelley is an example of a(n): 
A. arbitrageur.
B. entrepreneur.
C. speculator.
D. account manager.

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-04 Matching Risk with Profit

144. A key characteristic of entrepreneurs is that they: 
A. are willing to accept the risks involved in starting and managing a business.
B. have a high level of scientific and technical expertise.
C. possess a great deal of personal wealth.
D. have experience in running large, complex organizations.

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-04 Matching Risk with Profit
 
145. Making a new type of automobile involves: 
A. the service economy
B. arbitrage
C. profits
D. high risk

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-04 Matching Risk with Profit
 
146. A business owner has to find the right balance between risk and ______. 
A. speculation
B. time
C. revenue
D. profit

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-04 Matching Risk with Profit

147. Quality of life refers to: 
A. the outsourcing of job functions.
B. the amount of good and services people can buy.
C. addressing the needs of all stakeholders when making a business decision.
D. the general well-being of a society.

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-05 Standard of Living and Quality of Life
 
148. Which of the following most likely explains why the price of certain goods in country A may be higher than the price of those same goods in Country B? 
A. Country A has a lower profit margin than Country B.
B. Country A has higher tax rate and stricter government regulations.
C. Country A has multiple new stakeholders.
D. Country A does not enforce environmental regulations.

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-05 Standard of Living and Quality of Life
 
149. Customers, employees, stockholders and, suppliers are known as creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's: 
A. market makers.
B. economic environment.
C. stakeholders.
D. social mentors.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders

150. Stakeholders may have direct and ___ impact upon a business. 
A. societal
B. non-profit
C. indirect
D. organizational

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
151. The challenge of this century is for organizations to balance, as much as possible: 
A. macro and micro economic forces
B. profit vs non-profit
C. profits and losses
D. the needs of all stakeholders

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
152. Which of the following is NOT a stakeholder? 
A. Government
B. Non-profit businesses
C. Employees
D. Customers

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders

153. Offshoring entails: 
A. sourcing parts outside of the country.
B. assigning various functions to outside organizations.
C. having a limited life.
D. being controlled by a board of directors.

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
154. Insourcing can be found in what industry, according to the text? 
A. Retail sector
B. Non-profit sector
C. Automotive sector
D. Agriculture

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
155. In Canada, most of the offshoring that occurs is with what country? 
A. China
B. India
C. The United States
D. England

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders

156. Companies have gone from outsourcing jobs to offshoring: 
A. the purchase of inputs
B. profits
C. stakeholders
D. research and development

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
157. When might offshoring backfire? 
A. If the procedures followed in managing the outsourced function remain the same.
B. If the overseas company uses the information to produce its own competitive product.
C. When all of the current suppliers to the outsourced function are retained.
D. If the cost of the function is reduced by at least 50 percent.

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
158. What is a social entrepreneur? 
A. An individual who avoids business principles to start a non-profit organization
B. Any new business start-up with social goals
C. An individual who uses business principles to start and manage a non-profit organization
D. An individual working for a non-profit organization

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-07 Using Business Principles in Non-Profit Organizations

159. Non-profit organizations: 
A. last for only short periods of time as their objective is not to create profits for their owners.
B. have a hard time hiring employees as they have no means of paying them.
C. are run by the government.
D. can provide an opportunity for individuals to address social issues.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-07 Using Business Principles in Non-Profit Organizations
 
160. In Canada, about how many people work for the country's charities and non-profits? 
A. 1 million
B. 2 million
C. 5 million
D. 10 million

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-07 Using Business Principles in Non-Profit Organizations
 
161. There are two ways to succeed in business. One way is to rise up through the ranks of a large company. What is the other way? 
A. Working for the government.
B. Working for a non-profit organization.
C. Working for a small business.
D. Starting a business.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-08 Entrepreneurship Versus Working for Others

162. The resources that contribute to the creation of wealth are known as: 
A. production coefficients.
B. factors of production.
C. production technologies.
D. production aggregates.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
163. Which of the following is a factor of production? 
A. bonds
B. money
C. knowledge
D. service

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
164. Machines, tools, buildings and other means of manufacturing are called: 
A. capital goods.
B. labour.
C. equipment.
D. machinery.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth

165. As a factor of production, the term capital includes: 
A. stocks and bonds issued by corporations.
B. natural resources such as land and water.
C. tools, machinery, and buildings.
D. services provided by the government that enable businesses to be more productive.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
166. All of the following are factors of production, except: 
A. labour.
B. capital.
C. land.
D. money.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
167. The two factors of production that seem to contribute the most to making countries rich are: 
A. land and labour.
B. land and capital.
C. entrepreneurship and labour.
D. entrepreneurship and knowledge.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth

168. Nadine has started up a new printing business. The printers, computers, and copying machines she has leased are examples of: 
A. natural resources.
B. intangible resources.
C. current assets.
D. capital.

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
169. As you consider the factors of production, which of them will be the most important contributing factor to increasing the nation's wealth? 
A. Land
B. Labour
C. Knowledge
D. Capital

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
170. Which of the following is the most accurate statement about the impact of entrepreneurs? 
A. Land is a more important factor of production than the impact of entrepreneurs.
B. Labour is the primary source of wealth today, followed by the impact of entrepreneurs.
C. Capital is the primary source of wealth today, followed by the impact of entrepreneurs.
D. Entrepreneurs, and the use of knowledge are the primary source of wealth today.

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth

171. Which of the following factors of production is the most important contributing factor to increasing a nation's wealth? 
A. Natural resources
B. Entrepreneurship
C. Labour
D. Capital

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
172. Which of the following is NOT considered a factor of production? 
A. Laws
B. Land
C. Labour
D. Capital

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
173. Which of the following statements about factors of production is the most accurate? 
A. the five factors of production are energy, capital, labour, leadership and money.
B. wealth creation in poor nations is slowed by chronic shortages of labour.
C. each of the factors of production is equally important in creating wealth.
D. entrepreneurship and knowledge are the most important in creating wealth.

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth

174. Johnsonville is a small and poor nation, but its current president has a genuine desire to create more wealth for Johnsonville's citizens. The president has received recommendations from several of her advisors. Which of the following recommendations is likely to create the most wealth for Johnsonville? 
A. acquire more land by invading a neighboring country that is even poorer and weaker than Johnsonville.
B. use foreign aid from other nations to purchase more tools and machinery.
C. establish a business environment that promotes and rewards entrepreneurship.
D. establish barriers to trade to protect Johnsonville businesses from foreign competition.

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-10 The Business Environment
 
175. High tax rates tend to: 
A. promote economic development.
B. make a nation's currency tradable.
C. discourage entrepreneurship.
D. reduce the amount of money created by the government.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-11 The Legal Environment
 
176. In countries where businesses are government owned: 
A. there is less incentive to work hard.
B. the right amount of each good is produced.
C. profits tend to be higher.
D. the quality of goods is high, but profits are low.

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Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-11 The Legal Environment

177. One economic environmental factor of great importance to many businesses is: 
A. the actions of non-profits
B. the movement of the Canadian dollar
C. stakeholder activities
D. entrepreneurship

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-12 The Economic Environment
 
178. Technology affects people in: 
A. all industries.
B. most industries.
C. information technology industries with the exception of agriculture.
D. primarily high-income countries.

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Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
179. Employers provide tools and technology for their employees in order to: 
A. increase the cost of production and profitability.
B. improve their efficiency and productivity.
C. to reduce corruption in business and eliminate scandals.
D. encourage the private ownership of businesses.

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Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment

180. The example of Don Glenn, a farmer using his computer to compare data from the previous year's harvest with satellite photos of his farm to know which crops are flourishing is an example of what? 
A. managers in Canada motivating employees with large pay raises
B. the benefits of technology
C. the importance of land as a factor of production
D. the differences in wage rates between rural and urban dwellers

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Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
181. ___________ refers to the amount of output generated with a given amount of input, e.g., number of pizzas produced per worker per hour. 
A. Efficiency
B. Technology
C. Telecommuting
D. Productivity

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Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
182. ___________ means producing items with the least amount of resources. 
A. Efficiency
B. Technology
C. E-production
D. Productivity

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Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment

183. The two main types of e-commerce are: 
A. online and offline.
B. M2M and M2N.
C. wholesale and retail.
D. B2B and B2C.

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Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
184. When businesses sell to other businesses over the Internet, these transactions are known as: 
A. B2C transactions.
B. e-wholesale transactions.
C. B2B transactions.
D. intermediate e-commerce transactions.

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Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
185. Companies that sell goods to consumers over the Internet are engaging in: 
A. B2C transactions.
B. IOU transactions.
C. B2B transactions.
D. Y2K transactions.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment

186. The buying and selling of goods and services online is known as what? 
A. E-commerce.
B. IOU transactions.
C. B2B transactions.
D. Y2K transactions.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
187. An electronic storage file where firms keep customer information is known as a(n): 
A. MP3 file.
B. management information system.
C. database.
D. e-mail server.

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Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
188. Summit Gifts, Inc., is a mail order firm that specializes in expensive and unusual gifts for all occasions. Summit keeps a large file of information on all of its regular customers, including names, addresses, the types of gifts they have ordered in the past, and the size and frequency of their orders. The electronic file in which this information is stored in an example of a: 
A. spreadsheet.
B. MP3 file.
C. PERT file.
D. database.

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment

189. Which of the following predictions about the impact of e-commerce on traditional businesses is likely to be most accurate? 
A. E-commerce will have little impact on most traditional businesses, because only a few types of products can be sold effectively over the Internet.
B. Traditional firms will enter the e-commerce market.
C. E-commerce will prove to be very successful in competing against traditional firms in B2C markets but will have much less success in B2B markets.
D. Traditional businesses will cease to exist within twenty years.

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Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
190. A retailer can store a lot of customer records that include their name, address, and telephone numbers and past purchases in a database. This allows the retailer to only stock what the customers in their area want. This saves the retailer's money in: 
A. Financing
B. accounting costs
C. wages
D. benefits

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment

191. Recently, Marie received a telephone call from her credit card company asking if she had just placed a large off-shore wager using her credit card. Marie indicated that she had not. The illegal use of Marie's credit card probably happened because Marie: 
A. had loaned her credit card to a personal friend
B. had not used her credit card for many months
C. has made frequent on-line purchases, and in the course of completing one of these, an identity theft occurred
D. had just been approved for a new credit card

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
192. The federal privacy law is known as what? 
A. CITA
B. PIPEDA
C. SCEF
D. Statistics Canada

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
193. To be successful in today's markets, businesses must: 
A. provide the greatest variety of products to consumers.
B. spend more money on marketing and less on production.
C. focus their resources on understanding economic cycles.
D. delight customers with a quality product at a good price and outstanding service.

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Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment

194. Successful businesses are keenly focused on their: 
A. customers
B. managers
C. creditors
D. bureaucrats

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
195. Kisa is a production manager at Western Widgets, Inc., a manufacturing corporation that sells its products worldwide. Thanks in part to Kisa's efforts, Western Widgets has dramatically improved the quality of its products. Kisa believes that the high quality of its output will give Western Widgets a competitive edge. Kisa's view is: 
A. correct. Producing high quality goods is the key to success in the competitive marketplace.
B. not wrong, but it is too limited. Consumers demand high quality goods, along with competitive prices and outstanding service.
C. incorrect. The typical consumer is more interested in price than quality.
D. not exactly correct. The best strategy for market success is to develop new products quickly and get them to the market before the competition, even if quality suffers a bit.

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Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
196. Business has changed over time, traditionally business was more focused on the product and how to sell it. Today business is more focused on: 
A. quality and service.
B. reliability.
C. marketing.
D. production.

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment

197. To be effective, empowerment will require lower-level workers to: 
A. have more training.
B. accept less responsibility and lower wages.
C. receive less training.
D. have written policies regulating each aspect of their work.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
198. Empowerment requires that managers focus more on __________________ lower-level employees. 
A. directly supervising
B. training, supporting, coaching, and motivating
C. simplifying the jobs of
D. controlling and correcting

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Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment
 
199. The statistical study of human population to learn its size, density, and characteristics is called: 
A. psychographics
B. econometrics
C. demography
D. geometry

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Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment

200. ________ provides information to businesses concerning where people live, what they buy, and how they spend their time. 
A. Sociography
B. Econometrics
C. Demography
D. Anthropology

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
201. Those individuals born in Canada between 1947 and 1966 are referred to as: 
A. baby boomers.
B. Generation X.
C. echoes.
D. diversity workers.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
202. People born in Canada between 1980 and 1995 are referred to as: 
A. baby boomers.
B. Generation X.
C. Generation Y.
D. diversity workers.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment

203. According to statistics Canada, by 2036 what proportion of the population will be Generation Z? 
A. 1/4
B. 1/3
C. 1/2
D. 2/3

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
204. The book Boom Bust & Echo economist David Foot suggests that ________ explains about two-thirds of everything, including what products will be in demand in five years. 
A. demographics
B. knowledge
C. capital
D. E-commerce

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
205. The Canadian population has been _____ for several decades. 
A. aging
B. declining
C. growing poorer
D. becoming more homogeneous

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment

206. Birth-rates have declined in Canada since when? 
A. Mid-1950s
B. Mid-1960s
C. Mid-1970s
D. Mid-1980s

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
207. Those born between 1995 and 2009 are known as what? 
A. baby boomers.
B. Generation X.
C. Generation Y.
D. Generation Z.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
208. By 2031, seniors will account for nearly what percentage of the Canadian population? 
A. 1/4
B. 1/3
C. 1/2
D. 2/3

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment

209. Businesses that cater to seniors will have what type of prospects? 
A. good
B. bad
C. neutral
D. declining

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
210. Which of the following age groups is expected to grow in the future? 
A. age 0-4
B. age 5-19
C. age 35-64
D. age 65 and above

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
211. Jill is looking into the possibility of opening up a for-profit seniors centre in her community. However, she is concerned about the long-term prospects for such a business. Jill believes the future of her centre will depend on the growth of the senior population. This concern illustrates how businesses can be affected by: 
A. econometric trends.
B. demographic trends.
C. holographic trends.
D. psychometric trend.

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment

212. When looking at the global environment, one recent change has been: 
A. centralized management
B. fast response theory
C. disenfranchisement
D. the growth of global competition

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
213. Globalization has greatly: 
A. declined
B. hurt consumers
C. improved living standards around the world
D. reduced the number of jobs worldwide

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
214. Two important changes to the global environment of business in recent years are: 
A. foreign exchange & free trade.
B. growth of international competition & free trade.
C. growth of international competition & low prices.
D. high quality goods & prices.

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment

215. Few issues have captured the attention of the international business community more than: 
A. profits
B. management change
C. demography
D. climate change

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Difficulty: Medium
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
216. The trend toward saving energy and producing products that cause less harm to the environment is known as what? 
A. foreign exchange
B. free trade
C. growth of international competition
D. greening

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment
 
217. An increase in global trade will bring about a(n): 
A. increase in prices.
B. decrease in jobs.
C. increased political instability.
D. increase in global competition.

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-16 The Global Environment

218. Today's Canadian businesses require _____ workers in industries that produce goods. 
A. more
B. fewer
C. Skilled
D. trained

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-17 The Evolution of Canadian Business
 
219. Businesses that produce and sell tangible products such as appliances, furniture, and clothing are part of the: 
A. manufacturing sector.
B. knowledge-based sector.
C. service sector.
D. production sector.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries
 
220. Due to increased competition, many of the farms that existed 50 years ago have been replaced by what? 
A. the manufacturing sector
B. larger farms
C. cities
D. the production sector

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries

221. The loss of farm workers over the last century is: 
A. a negative sign
B. an indication of growing productivity
C. going to reverse in the future
D. a symptom of global competition

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries
 
222. Health care, legal advice, transportation, and other intangible products are provided by the: 
A. global sector
B. service sector
C. industrial sector
D. high-wage sector

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries
 
223. Since the beginning of the 1900s, the agricultural sector of Canada has: 
A. seen the number of family farms more than double.
B. become less and less competitive in the global economy.
C. produced a consistent output per farm.
D. experienced a big drop in employment, mainly because of tremendous improvements in efficiency.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries

224. About what percentage of Canadians are employed in the goods-producing sector? 
A. 12
B. 21
C. 42
D. 62

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries
 
225. About what percentage of Canadians are employed in the manufacturing sector? 
A. 10
B. 20
C. 40
D. 80

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries
 
226. In recent years, the fastest growing firms are in the _________ sector. 
A. service
B. manufacturing
C. agricultural
D. telecommunications

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Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries

227. Today, the leading firms are in: 
A. services
B. auto
C. agricultural
D. production

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
228. The service-producing sector employs almost ___ percent of the working population 
A. 48
B. 58
C. 68
D. 78

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
229. Appliance repair firms, tax consultants, law firms, and insurance companies are all business firms that are part of the: 
A. production sector.
B. management sector.
C. neo-industrial sector.
D. service sector.

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries

230. In recent years, many manufacturing firms in Canada have laid off workers. The best explanation of this trend is that: 
A. firms have been trying to weaken unions by reducing their reliance on labour.
B. workers in Canada have become less productive and are no longer able to compete in the global economy.
C. the rising Canadian dollar and increasing global competition.
D. the economy has been in a prolonged recession/depression that has lasted more than a decade.

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Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
231. Which of the following describes a reason for the recent job growth in the service sector? 
A. Large manufacturing firms seeking efficiency have contracted out an increasing number of services.
B. The Canadian economy has been growing over the past decade.
C. Offshoring has led to service industry.
D. The increasing interest in the environment has led to the creation of service-oriented jobs. There has been little change in the number of jobs in the service sector in recent years, however employment is expected to increase rapidly.

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries

232. In order to survive in the service economy, graduates must: 
A. remain flexible
B. have a high school diploma
C. train for specific manufacturing jobs
D. take accounting courses

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Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
233. Mark recently graduated with honours from his college. He has bragged to his friends that his fine academic performance has prepared him so well for a successful career that he can forget school or training in his future. In evaluating the workplace of the future, Mark is: 
A. exactly right. His past performance should carry him to success.
B. completely wrong. Studies show that a college education has little to do with success.
C. over confident. Global competition means that flexibility, finding out where jobs are being created, and moving when appropriate are important.
D. probably right. Specialized training today is a key to continued success in the future.

Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
234. Some areas of the service sector will grow rapidly, while other areas of the service sector may: 
A. have slower growth
B. decline
C. not grow as quickly as manufacturing jobs
D. not grow as quickly as agricultural jobs

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Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries

235. Certain sectors in the Canadian economy have experienced a significant decline in employment. Which of the following best explains this job loss in specific industries? 
A. There has been a decline in the productivity of labour in these industries.
B. Workers lost these jobs because worker productivity in the sector increased.
C. The Canadian economy cannot compete in the global environment.
D. Government regulations have eliminated profit opportunities in these industries.

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Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
236. The new era of business is likely to be dominated by the: 
A. agricultural sector.
B. information-based sector.
C. manufacturing sector.
D. continued decline in productivity.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-20 Your Future in Business

Short Answer Questions
 
237. Why is the manufacturing sector such an important contributor to the Canadian economy? 
It employs close to 2 million Canadians.
It represents over ten percent of the workforce
It generates an enormous amount of revenue in economic spinoff
It creates research and development

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Difficulty: Medium
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-18 Progress in the Agricultural and Manufacturing Industries

238. Why has the service sector seen such tremendous growth? 
1. Technology:

Technological improvements have enabled businesses to reduce their payrolls while increasing their output. Since staffing has been downsized by many companies, business has become more complex and specialized companies have relied more heavily on outside services firms.

2. Growth in outsourcing

As large manufacturing companies seek to become more efficient, they contract out an increasing number of services, creating more opportunities for business people.

3. Social changes

Other service firms have risen or expanded rapidly to provide traditional services that used to be performed by women at home. Since many women have entered the workforce, there is increased demand for food preparation, child care, and household maintenance, to name just a few services.

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Difficulty: Hard
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries

239. List and briefly describe the six elements of the business environment. 
See Figure 1.5

 The legal environment
 The economic environment
 The technological environment
 The competitive environment
 The social environment
 The global environment

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Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-10 The Business Environment
 
240. Explain how currency movements impact the economic environment. 
The movement of a country's currency relative to other currencies has important implications for businesses. Currency movements are especially critical for countries that generate a great deal of business activity from exports, such as Canada. Manufacturing jobs in Canada were affected when the value of the Canadian dollar increased in the late 2000s as many manufacturing jobs were shifted overseas. For example, General Motors closed factories and trimmed production at other manufacturing facilities.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-12 The Economic Environment

241. Summarize the relationship between risk and profit. What can a new business owner do to reduce risk? 
There is an inverse relationship between risk and profit. Those companies that take the most risk may make the most profit. As a potential business owner, you need to do research (e.g., talk to other business people and read business publications) to find the right balance between risk and profit for you. Different people have different tolerances for risk.

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Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-04 Matching Risk with Profit
 
242. What is meant by the expression ‘quality of life'? How can businesses contribute to this concept? 
The term refers to the general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide. The more money businesses create, the more is potentially available to improve the quality of life for everyone.

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Difficulty: Easy
Learning Objective: 01-01 Illustrate the importance of key business fundamentals to wealth generation.
Topic: 01-05 Standard of Living and Quality of Life
 
243. List the various stakeholder groups and provide an example of how the needs to various stakeholders may conflict. 
See Figure 1.3 for a list of stakeholders.
Often the needs of a firm's various stakeholders will conflict. For example, paying employees more may cut into shareholders' profits. Balancing such demands is a major role of business managers.

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Difficulty: Easy
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders

244. How does Statistics Canada distinguish between insourcing, outsourcing, and offshoring? 
A Statistics Canada report highlights the distinction. As stated, "Outsourcing decisions affect the boundaries of the firm—what production takes place within the firm and what is purchased from outside the firm. Changes in offshoring may be, but are not necessarily, related to changes in outsourcing. They involve decisions both to purchase outside of the firm and to do so from abroad. Considerations to do the latter are at the heart of the study of international trade. Interest in outsourcing arises because it may foretell changes in industrial structure. Interest in offshoring arises because it may signify changes in international trading patterns."

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Difficulty: Easy
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-06 Responding to the Various Business Stakeholders
 
245. Describe a non-profit organization. How do their goals differ from a traditional for-profit business? 
A non-profit organization is an organization whose goals do not include making a personal profit for its owners or organizers. Non-profit organizations strive for financial gains because revenue is needed to operate, but such gains are used to meet their social or educational goals rather than for personal or shareholder profit.

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Difficulty: Easy
Learning Objective: 01-02 Identify business stakeholders and their importance to non-profit organizations and business activities.
Topic: 01-07 Using Business Principles in Non-Profit Organizations

246. List and provide examples of the five factors of production. 
Figure 1.4 describes those five factors, which are:

1. Land (or natural resources). Land and other natural resources are used to make homes, cars, and other products.
2. Labour (workers). People have always been an important resource in producing goods and services, but many people are now being replaced by technology.
3. Capital Goods. This includes machines, tools, buildings, or whatever else is used in the production of goods. It does not include money. Money is used to buy factors of production but is not always considered to be a factor by itself.
4. Entrepreneurship. All the resources in the world have little value unless entrepreneurs are willing to take the risk of starting businesses to use those resources.
5. Knowledge. Information technology has revolutionized business, making it possible to quickly determine wants and needs and to respond with desired goods and services.

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Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth
 
247. Compare the factors of production between poor and rich countries. 
Some poor countries often have plenty of land and natural resources. Russia, for example, has vast areas of land with many resources such as timber and oil, but it is not considered a rich country (yet). In contrast, Japan is a relatively rich country but is poor in land and other natural resources. Therefore, land is not the critical element for wealth creation.
Most poor countries, such as Mexico, have many labourers, so labour is not the primary source of wealth today.

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Difficulty: Easy
Learning Objective: 01-03 Explain how entrepreneurship is critical to the wealth of an economy; and list the five factors of production that contribute to wealth.
Topic: 01-09 The Importance of Entrepreneurs to the Creation of Wealth

248. Explain the concept of crowdsourcing and how it is used by governments and citizens. 
Crowdsourcing is a term used when people, who have a business problem, turn to large groups of people (often unknown to them, and contacted through the internet) to brainstorm solutions to their problem. Crowdsourcing helps a business find solutions to challenges. It is a valuable tool to better understand the dynamics of a business market. It can be valuable in terms of building collaboration between government and citizens, students and universities, patients and hospitals.

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Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-13 The Technological Environment
 
249. What is meant by ‘barriers to entry' and how do they work? Give examples of such barriers. 
Barriers to entry are business practices or conditions that make it difficult for new firms to enter the market. Barriers to entry can be in the form of capital requirements, product identity, distribution access, or switching costs. The higher the expense of the barrier, the more likely it will deter new entrants, and vice versa (e.g., barriers to exit).

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Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-14 The Competitive Environment

250. Differentiate between Generation X, Y, and Z. 
Generation X represents the demographic group that were born in the period 1965-1976. Generation Y, also known as Millennials (those born in the period from 1977 to 1994) represents the children of the large number of Baby Boomers (those born in the period from 1946 to 1964). Some students are part of Generation Y while others may be part of Generation Z, who include those born from 1995 onward.

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Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment
 
251. What evidence can you cite to support the position that Canada has a strong multicultural population? 
The text describes multiple statistics which support Canada has a multicultural population. The following are provided in the text:

In the last ten years, Canada has welcomed close to 2.7 million permanent residents.
The high level of annual admission of immigrants and the relatively slow rate of natural growth of the population explain why the proportion of the foreign-born in the Canadian population has been increasing since the 1990s.
Citizenship and Immigration Canada's plan is to admit approximately 250,000 immigrants each year.

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Difficulty: Easy
Learning Objective: 01-04 State the six elements that make up the business environment and explain why the business environment is important to organizations.
Topic: 01-15 The Social Environment

252. What effect has technology had on Canadian agricultural industries? 
The modern farming industry has become so efficient through the use of technology that the number of farms has dropped. Due to increased competition, many of the farms that existed even 50 years ago have been replaced by some huge farms, some merely large farms, and some small but highly specialized farms. The loss of farm workers over the past century is not a negative sign. It is instead an indication that Canadian agricultural workers are more productive.

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Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries
 
253. What factors have contributed to the rapid growth of the service sector in the Canadian economy? 
There are several reasons why there has been growth in this sector. First, technological improvements have enabled businesses to reduce their payrolls while increasing their output. Since staffing has been downsized by many companies, business has become more complex and specialized companies have relied more heavily on outside services firms. Secondly, as large manufacturing companies seek to become more efficient, they contract out an increasing number of services, creating more opportunities for business people. Other service firms have risen or expanded rapidly to provide traditional services that used to be performed by women at home. Since many women have entered the workforce, there is increased demand for food preparation, child care, and household maintenance, to name just a few services.

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Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-19 Progress in Service Industries

254. How does humanistic management differ from scientific management? 
Scientific management studies workers to find the most efficient ways of doing things and then teaching people those techniques. Frederick Taylor, referred to as the father of scientific management, sought to increase worker productivity. His views became the dominant strategy for how business operates. But according to the International Humanistic Management Association, the consequence of thinking exclusively in terms of productivity is that "those things that have a price take priority over those that do not, [such as] human integrity, environmental beauty, or quality of life."
Humanistic management presents a different view where a worker is not viewed simply as a machine for efficiency, but as person who really matter. It is often referred to as people-oriented management because rather than treat people as a simple resource for profits, the approach seeks profits for human ends. It may be said that this type of management, which focuses upon human dignity and well-being, presents a new perspective where issues of inequality, poverty, environmental destruction, and mass migration force us to change the way we do business.

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-05 Give examples of how the service sector has replaced manufacturing as the principal provider of jobs; but why manufacturing remains vital for Canada.
Topic: 01-20 Your Future in Business