(Test Bank) Contemporary Business, Canadian Edition

Boone,Kurtz,Khan,Canzer, 2

Business

Test Bank

2nd Edition

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Test Bank for Contemporary Business, Canadian Edition, The downloadable file consists of 157 pages, and the total size of the file is 0.64 MB. Purchase now only for highly discounted price.

Author(s): Boone, Kurtz, Khan, Canzer

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Part 1 Business in a Global Environment Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited CHAPTER 1 THE CHANGING FACE OF BUSINESS CHAPTER LEARNING OBJECTIVES LO 1.1 D istinguish between business and not-for-profit organizations. Business consists of all profit ‐seeking activities that provide goods and services necessary to an economic system. Not ‐for‐profit organizations are business ‐like establishments whose primary objectives involve social, political, governmental, educational, or similar functions instead of profits . LO 1.2 Identify and describe the factors of production. The factors of production have four basic inputs: natural resources, capital, human resources, and entrepreneurship. Natural resources include all productive inputs that are useful in their natural states. Capital includes technology, tools, information, and physical facilities. Human resources include anyone who works for the firm. Entrepreneurship is the willingness to take risks to create and operate a business. LO 1.3 Describe the private ent erprise system, including basic rights and entrepreneurship. The private enterprise system is an economic system that rewards firms for being able to perceive and serve the needs and demands of consumers. Competition in the private enterprise system means success for firms that satisfy consumer demands. Citizens in a private enterprise economy enjoy rights to private property, profits, freedom of choice, and competition. Entrepreneurship drives economic growth. LO 1.4 Identify the seven eras in the histor y of business. The seven historical eras are the colonial period, the Industrial Revolution, the age of industrial entrepreneurs, the production era, the marketing era, the relationship era, and the social era. In the colonial period, businesses were small and rural, emphasizing agricultural production. The Industrial Revolution brought factories and mass production to business. The age of industrial entrepreneurs built on the Industrial Revolution through an expansion in the number and size of firms. The p roduction era focused on the growth of factory operations through assembly lines and other efficient internal processes. During and following the Great Depression, businesses concentrated on find­ing markets for their products through advertising and selli ng, giving rise to the marketing era. In the relationship era, businesspeople focus on developing and sustaining long ‐term relationships with customers and other businesses. The social era of business can be described as a new approach to the way businesses and individuals interact, connect, communicate, share, and exchange information with each other in virtual communities and networks around the world. Technology promotes innovation and communication, while alliances create a competitive advantage through partnerships. Concern for the environment also helps build strong relationships with customers. The Changing Face of Business 1 - 2 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited LO 1.5 Explain how today’s business workforce and the nature of work itself are changing. The workforce is changing in several significant ways: (1) It is aging and the labour pool is shrinking and (2) it is becoming increasingly diverse. The nature of work has shifted toward services and a focus on information. More firms now rely on outsourcing, offshoring, and nearshoring to produce goods or to fulfill se rvices and functions that were previously handled in‐ house or in‐ country. Today’s workplaces are also becoming increasingly flexible, allowing employees to work from different locations and through different relationships. Companies promote innovation through teamwork and collaboration LO 1.6 Identify the skills and attributes managers need to lead businesses in the twenty - first century. Today’s managers need vision, which is the ability to perceive both marketplace needs and the way their firm can satisf y those needs. Critical thinking skills and creativity allow managers to pinpoint problems and opportunities and plan novel solutions. Finally, managers are dealing with rapid change, and they need skills to help lead their organizations through shifts in external and internal conditions. LO 1.7 Outline the characteristics that make a company admired by the business community. A company is usually admired for its solid profits, stable growth, a safe and challenging work environment, high ‐quality goods and services, and business ethics and social responsibility. 1 - 3 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited TRUE -FALSE STATEMENTS 1. Large corporations are defined as businesses, whereas small companies are more of an investment. Answer: False Bloomcode: Knowledge Difficulty: Easy Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Reflective Thinking 2. Companies are NOT required to be ethical to succeed in the long run. Answer: False Bloomcode: Knowledge Difficulty: Easy Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Ethics 3. In order to remain viable, not ­for­profit organizations need to focus on profits even more than the public service they provide. Answer: False Bloomcode: Application Difficulty: Medium Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Ethics 4. Not­for­profit organizations are commonly exempt from federal, provincial, and local taxes. Answer: True Bloomcode: Knowledge Difficulty: Medium Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Analytic 5. Just as with a for ­profit business, the first priority for a not ­for­profit organization is making a The Changing Face of Business 1 - 4 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited profit. Answer: False Bloomcode: Application Difficulty: Medium Learning Objective: Distinguish between business and not ‐for‐profit organizations . Sectio n Reference: What Is Business? AACSB: Reflective Thinking 6. An accountant’s view of profit is the difference between revenue and the cost incurred in generating the revenue. This view is shared by all business owners and the general public. Answer: Fal se Bloomcode: Knowledge Difficulty: Hard Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Analytic 7. Employees and founders of not ­for­profit organizations do NOT usually earn any income from their operations. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Analytic 8. All factors of production are found in equal amounts in all businesses. Answer: False Bloomcode: Knowledge Difficulty: Easy Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Analytic 9. Capital includes money, machines, tools, buildings, and human resources. Answer: False Bloomcode: Knowledge 1 - 5 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited Difficulty: Easy Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Analytic 10. Natural resources are essential for certain companies but are NOT required for all economic systems. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Analytic 11. Technology is considered to be capital. Answer: True Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Technology 12. High­end technology, such as the Global Positioning Satellite System offered in some new cars, is considered a capital resource. Answer: True Bloomcode: Application Difficulty: Medium Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Technology 13. When farmers rent land in order to increase crop production, they are acquiring capital. Answer: False Bloomcode: Application Difficulty: Easy Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Reflective Thinking The Changing Face of Business 1 - 6 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited 14. Entrepreneurship is synonymous with “ risk­taking. ” Answer: True Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Technology 15. An entrepreneur and a manager are the same. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Analytic 16. The owner of a small business is part of the human resources of his/her organization. Answer: True Bloomcode: Knowledge Difficulty: Hard Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Analytic 17. The private enterprise system encourages government intervention. Answer: False Bloomcode: Application Difficulty: Easy Learning Objective: Describe the private ent erprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Reflective Thinking 18. Canada functions under the private enterprise system. Answer: True Bloomcode: Application 1 - 7 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited Difficulty: Easy Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Reflective Thinking 19. Adam Smith’s “invisible hand” refers to the battle among businesses f or consumer acceptance. Answer: True Bloomcode: Knowledge Difficulty: Easy Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Analytic 20. Profits are guaranteed by the private enterprise system for every entrepreneur with good management skills. Answer: False Bloomcode: Application Difficulty: Easy Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Reflective Thinking 21. Private property is considered the most important right in the private enterprise system. Answer: True Bloomcode: Knowledge Difficulty: Medium Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Analytic 22. When customers enter a supermarket and select their favourite brand of laundry detergent, they are exercising their right to freedom of choice. Answer: True Bloomcode: Application The Changing Face of Business 1 - 8 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited Difficulty: Medium Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterpri se System AACSB: Reflective Thinking 23. When the government sets ground rules for competitive activity, the intent is to increase freedom of choice for consumers. Answer: True Bloomcode: Application Difficulty: Easy Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Analytic 24. In the private enterprise system, government has no role to play in ensuring fair competition. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Analytic 25. Unfair or “cutthroat” competition, designed to eliminate competitors, is prohibited by the U.S. government. Answer: True Bloomcode: Knowledge Difficulty: Medium Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Analytic 26. Finding unique ways to use the factors of production is a common characteristic of most entrepreneurs. Answer: True Bloomcode: Knowledge 1 - 9 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited Difficulty: Medium Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Reflective Thinking 27. Entrepreneurs are very conservative and usually invest only in sure winners. Answer: True Bloomcode: Application Difficulty: Easy Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Reflective Thinking 28. The Canadian Radio­ television and Telecommunications Commission (CRTC) has made a decision that has increased the cost charged to small internet service providers that buy access from larger internet services providers such as Bell. This decision is a violation of the private enterprise system in Canada. Answer. Fals e Bloomcode: Application Difficulty: Hard Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Analytic 29. Successful entrepreneurs usually crea te large corporations. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System AACSB: Analytic 30. During the colonial period, the focus was on agriculture and other rural activities. Answer: True Bloomcode: Knowledge The Changing Face of Business 1 - 10 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Analytic 31. The Industrial Revolution began in Germany and quickly spread to the rest of Europe. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section R eference: Seven Eras in the History of Business AACSB: Analytic 32. The Industrial Revolution began in the United States with the development of the automobile. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Analytic 33. One factor that led to the Industrial Revolution was the mechanization of agriculture. Answer: True Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Analytic 34. A key element of the production era was the use of consumer research. Answer: False Bloomcode: K nowledge Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Analytic 1 - 11 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited 35. The production era preceded the age of industrial entrepreneurs. Answer: Fal se Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Analytic 36. In consumer orientation, a company creates a product first, and then determines if the consumer will likely purchase the product. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Reflective Thinking 37. The Nike swoosh is NOT considered a brand; only the company name can be a brand. Answer: False Bloomcode: Application Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Refer ence: Seven Eras in the History of Business AACSB: Analytic 38. The current philosophy among managers today is best described as transaction management. Answer: False Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Analytic 39. Information technology has been the key driver behind the relationship era. Answer: True Bloomcode: Knowledge The Changing Face of Business 1 - 12 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Technology 40. Technology has revolutionized business communications. Answer: True Bloomcode: Application Difficulty: Easy Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Technology 41. Relationship management refers to ongoing, mutually beneficial ties between a company and its vendors. Answer: False Bloomcode: Application Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Technology 42. Technology can make some products obsolete. Answer: True Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Technology 43. Relationship management concentrates on short ­term interac tions with customers. Answer: False Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Analytic 1 - 13 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited 44. The number of companies forming partnerships and strategic alliances has declined in recent years. Answer: False Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Busines s AACSB: Analytic 45. The use of blogs as a link between companies and their customers is on the decline. Answer: False Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Technology 46. Assume Motorola and Microsoft work on developing a new cell phone that also is a PDA. This is an example of a strategic alliance. Answer: True Bloomcode: Application Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Analytic 47. The need to develop environmentally friendly products and processes is becoming a major new force in business today. Answer: True Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Analytic 48. A strategic alliance is a partnership formed to create competitive advantage for the businesses involved. Answer: True The Changing Face of Business 1 - 14 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Analytic 49. The use of assembly lines became popular during the colonial era. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify the seven eras in the history of business. Section Reference: Seven Eras in the History of Business AACSB: Technology 50. Relationship management is important in the relationship era and the social era. Answer: True Bloomcode: Knowledge Difficulty: Hard Learning Objective: Identify the seven eras in the history of business. Section Referenc e: Seven Eras in the History of Business AACSB: Ethics 51. The needs of older workers are similar to those of younger workers. Answer: False Bloomcode: Knowledge Difficulty: Easy Learning Objective: Explain how today’s business workforce and the nature of work itself are changing . Section Reference: Today’s Business Workforce AACSB: Reflective Thinking 52. During the next few years, the average age of the workforce is expected to increase. Answer: True Bloomcode: Knowledge Difficulty: Easy Learning Objective: Explain how today’s business workforce and the nature of work itself are changing . Section Reference: Today’s Business Workforce 1 - 15 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited 53. Although the number of college ­educated workers has doubled in the last 20 years, the demand for workers is still greater than the supply. Answer: True Bloomcode: Knowledge Difficulty: Medium Learning Objective: Explain how today’s business workforce and the nature of work itself are changing . Section Reference: Today’s Business Workforce 54. Research indicates that work teams consisting of a diverse group of individuals often are more productive than less diverse work teams. Answer: True Bloomcode: Knowledge Difficulty: Medium Learning Objective: Explain how today’s business workforce and the nature of work itself are changing . Section Reference: Today’s Business Workforce AACSB: Diversity 55. Outsourcing is the relocation of business activities to lower ­cost locations overseas. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Object ive: Explain how today’s business workforce and the nature of work itself are changing . Section Reference: Today’s Business Workforce 56. Today, workers are much less likely to remain with the same employer throughout their entire careers. Answer: True Bloomcode: Knowledge Difficulty: Easy Learning Objective: Explain how today’s business workforce and the nature of work itself are changing . Section Reference: Today’s Business Workforce 57. The new employer ­employee relationship requires firms to establish rigid rules to govern The Changing Face of Business 1 - 16 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited employee activities. Answer: False Bloomcode: Knowledge Difficulty: Easy Learning Objective: Explain how today’s business workforce and the nature of work itself are changing . Section Reference: Today’s Business Workforce 58. The managerial quality of vision is the ability to see all of the problems that might occur. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Explain how today’s business workforce and the nature of work itself are changing . Section Reference: Today’s Business Workforce 59. The retirement of baby boomers CANNOT create a shortage in the Canadian workforce since students are graduating each year. Answer: False Bloomcode: Application Difficulty: Medium Learning Objective: Explain how today’s business workforce and the nature of work itself are changing . Section Reference: Today’s Business Workforce 60. Skilled and knowledgeable employees are essential resources that could help an organization to create change in today’s dynamic business environment. Answer: True Bloomcode: Knowledge Difficulty: Medium Learning Objective: Explain how today’s business workforce and the nature of work itself are changing . Section Reference: Today’s Business Workforce 61. Critical thinking skills and creativity are essential qualities for today’s managers. Answer: True Bloomcode: Knowledge 1 - 17 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited Difficulty: Easy Learning Objective: Identify the skills and attributes managers need to lead businesses in the twenty ­first century . Section Reference: The Twenty ­First­Century Manager 62. Critical thinking is the ability to analyze and assess information to pinpoint problems and opportunities. Answer: True Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify the skills and attributes managers need to lead businesses in the twenty ­first century . Section Reference: The Twenty ­First­Century Manager 63. Creativity is the capacity to develop well ­tested solutions to common organizational problems. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify the skills and attributes managers need to lead businesses in the twenty ­first century . Section Reference: The Twenty ­First­Century Manager 64. A manager’s only obligation is to create an environment for creati vity and critical thinking. The implementation of those ideas is carried out by other departments. Answer: False Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify the skills and attributes managers need to lead businesses in the twenty ­first century . Section Reference: The Twenty ­First­Century Manager 65. Mental exercises like brainstorming often foster creativity . Answer: True Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify the skills and attributes manager s need to lead businesses in the twenty ­first century . Section Reference: The Twenty ­First­Century Manager The Changing Face of Business 1 - 18 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited 66. Decreased consumer loyalty is an example of an external force that requires change. Answer: True Bloomcode: Application Difficulty: Medium Learning Objective: Identify the skills and attributes managers need to lead businesses in the twenty ­first century . Section Reference: The Twenty ­First­Century Manager 67. For a company to be successful, the vision and mission statements should align. Answer: True Bloomcode: Application Difficulty: Easy Learning Objective: Identify the skills and attributes managers need to lead businesses in the twenty ­first century . Section Reference: The Twenty ­First­Century Manager 68. Force of change can only come from external sources. Answer: False Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify the skills and attributes managers need to lead businesses in the twenty ­first century . Section Reference: The Twenty ­First­Century Manager 69. Business ethics deal with the right ­versus ­wrong actions that arise in a work environment. Answer: True Bloomcode: Knowledge Difficulty: Easy Learning Objective: Outline the characteristics that make a company admired by the business community. Section Reference: What Makes a Company Admired? AACSB: Ethics 70. The most important factor for determining whether or NOT a company is admired is profitability. Answer: False 1 - 19 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited Bloomcode: Application Difficulty: Easy Learning Objective: Outline the characteristics that make a company admired by the business community. Section Reference: What Makes a Company Admired? AACSB: Ethics 71. By supporting local charities, a firm is demonstrating social responsibility. Answer: True Bloomcode: Application Difficulty: Easy Learning Objective: Outline the characteristics that make a company admired by the business community. Section Reference: What Makes a Company Admired? AACSB: Ethics 72. Social responsibility is another way of saying ethics. Answer: False Bloomcode: Application Difficulty: Easy Learning Objective: Outline the characteristics that make a company admired by the business community. Section Reference: What Makes a Company Admired? AACSB: Ethics 73. Companies that are serious about ethical operations are likely to be socially responsible. Answer: True Bloomcode: Application Difficulty: Easy Learning Objective: Outline the characteristics that make a company admired by the business community. Section Reference: What Makes a Company Admired? AACSB: Ethics The Changing Face of Business 1 - 20 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited MULTIPLE CHOICE QUESTIONS 74. Which of the following are organized for ­profit and provide goods and services? a) public schools b) churches c) government d) businesses Answer: d Bloomcode: Application Difficulty: Easy Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Reflective Thinking 75. All of the following statements are correct EXCEPT a) successful businesses seek to meet their social and ethical responsibilities. b) business is the economic pulse of a nation. c) business includes no t­for­profit organizations that provide services to the public. d) business provides goods and services necessary to an economic system. Answer: c Bloomcode: Application Difficulty: Hard Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Reflective Thinking 76. In accounting terms, profits are ______ . a) the difference between revenues and expenses b) the difference between commissions earned and receipts c) the difference between sales and expenses d) the sum of sales and expenses Answer: a Bloomcode: Knowledge Difficulty: Easy Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Analytic 77. In the Canadian economy, ______ are considered the reward for the risk of entering business. 1 - 21 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited a) revenues b) profits c) sales d) generated income amounts Answer: b Bloomcode: Application Difficulty: Hard Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Ethics 78. ______ is essential because it serves as a primary incentive for people to s tart companies, expand them, and provide consistently high­ quality competitive goods and services. a) Vision b) Profit c) Market research d) Philanthropy Answer: b Bloomcode: Knowledge Difficulty: Medium Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Reflective Thinking 79. All of the following are businesses EXCEPT ______. a) U.S. Postal Service b) UPS c) FedEx d) AOL Time Warner Answer: a Bloomcode: Application Difficulty: Easy Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Analytic 80. All of the following are typically part of the not ­for­profit sector EXCEPT ______. a) hotels b) politica l parties c) religious organizations d) labour unions The Changing Face of Business 1 - 22 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited Answer: a Bloomcode: Application Difficulty: Medium Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Analytic 81. A public ­sector not ­for­profit organization would include which of the following?a) library b) museum c) charitable d) labour union Answer: d Bloomcode: Application Difficulty: Medium Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Analytic 82. ______ are a public not ­for­profit profit organization. a) Religious organizations b) Charitable organizations c) Trade associations d) Political parties Answer: d Bloomcode: Knowledge Difficulty: Medium Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Analytic 83. To be successful in the long run, business must be socially responsible toward a) customers . b) employees . c) suppliers . d) all of the stakeholder group above Answer: d Bloomcode: Knowledge Difficulty: Hard Learning Objective: Distinguish between business and not ‐for‐profit organizations . Section Reference: What Is Business? AACSB: Analytic 1 - 23 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited 84. The factors of production in an economic system are ______ . a) land, rent, capital, and human resources b) capital, perseverance, natural resources, and human resources c) rent, wages, interest, and profit d) natural resources, human resources, capital, and entrepreneurship Answer: d Bloomcode: Knowledge Difficulty: Medium Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production 85. Timber Trails, a northwest lumber company, utilizes ______ as its primary production factor. a) natural resources b) capital c) entrepreneurship d) human resources Answer: a Bloomcode: Application Difficulty: Medium Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Reflective Thinking 86. Donovan Corporation’s sources of capital can incl ude all of the following EXCEPT a) investments from stockholders . b) reinvested profits . c) cash dividends declared by Donovan’s board of directors and paid to the stockholders . d) investments from venture capitalists . Answer: c Bloomcode: Application Difficulty: Hard Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Reflective Thinking 87. Technology, tools, information, and physical facilities for the operation of a business are examples of ______ . a) profits b) wages c) capital The Changing Face of Business 1 - 24 Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited d) interest Answer: c Bloomcode: Application Difficulty: Easy Learning Objective: Identify and describe the fac tors of production. Section Reference: Factors of Production AACSB: Technology 88. A company that values employees as sources of ideas and innovation is utilizing its ______. a) entrepreneurship b) natural resources c) capital d) human resources Answer: d Bloomcode: Application Difficulty: Medium Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Technology 89. The human resources of a firm refer to ______. a) top management b) everyone over 18 years of age c) full­ time employees d) everyone who works for the business Answer: d Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Analytic 90. Tarek, a former middle manager from Alexander Manufacturing, owns and operates a Subway franchise. Tarek is demonstrating ______. a) social responsibility b) socialism c) entrepreneurship d) pure competition Answer: c Bloomcode: Application 1 - 25 Test Bank for Contemporary Business , Second Canadian Edition Copyright © 2016 John Wiley & Sons Canada, Lt d. Unauthorized copying, distribution, or transmission of this page is prohibited Difficulty: Medium Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Reflective Thinking 91. As a factor of production, capital includes all of the following EXCEPT a) technology . b) physical facilities . c) market system . d) information . Answer: c Bloomcode: Knowledge Difficulty: Easy Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Analytic 92. If Exxon Mobil drills oil from land belong ing to the Native community in Texas, what would be the corresponding factor payment for the resources being used by the company? a) free supply of gas to everyone in T exas b) free education for all children in T exas c) rent or royalti es to the owners of the land d) taxes to the federal government Answer: c Bloomcode: Application Difficulty: Medium Learning Objective: Identify and describe the factors of production. Section Reference: Factors of Production AACSB: Analytic 93. Businesses that operate in an environment where success or failure is determined by how well they match and counter the offerings of competitors are operating under ______ . a) the private enterprise system b) a social democracy c) a monopoly d) socialism Answer: a Bloomcode: Knowledge Difficulty: Medium Learning Objective: Describe the private enterprise system , including basic rights and entrepreneurship. Section Reference: The Private Enterprise System