ARBUS PRACTICE FINAL
ARBUS Practice Final Quiz
Test your knowledge on international trade, business practices, and economic policies with our comprehensive ARBUS Practice Final Quiz. This engaging quiz covers a range of topics, from balance of payments to trade barriers and business ownership.
- Multiple-choice questions
- Assess your understanding of key business concepts
- Perfect for students and professionals alike
The difference between money coming into and leaving the country plus money flows from factors such as tourism and foreign aid is referred to as the:
Balance of payments.
Balance of trade
Trade deficit.
Balance of money flows.
An unfavourable balance of trade occurs when the value of:
Exports exceed the value of imports.
Cash inflows are equal to the value of cash outflows.
Imports exceeds the value of exports.
Imports equals the value of exports.
A(n) __________ refers to a complete ban of the imports or exports of certain products from a specific country.
Embargo
Quarantine
Quota
Absolute tariff
Many economists and business experts contend that ________ will likely be the growth market of the future.
South America
Africa
Asia
The Middle East
Canada exports most of its merchandise to:
Japan.
The United States.
Great Britain.
India.
Ford trades vehicles to Jamaica, which then trades them to China in exchange for computers. This is an example of:
An import quota.
A common market.
A trading bloc.
Countertrading.
Companies such as McDonald's, Pizza Hut, and KFC, have entered the global market by offering investors the opportunity to set up:
Producer cartels.
Franchises.
Multinational subsidiaries.
Joint ventures.
The United States has stopped some Canadian goods from entering the country because it said that the information on the labels was too small. This is an example of a(n):
Tariff.
Import quota.
Embargo.
Non-tariff barrier.
Pepsi has entered into a long-term contract with a South African beverage business. The contract calls for the South African firm to produce and market Pepsi in South Africa. Pepsi will receive a royalty on each case of soda sold. This is an example of:
Licensing.
Foreign direct investment.
A joint venture.
A foreign subsidiary.
U.S. Firms that produce sophisticated military hardware are prohibited from exporting that equipment to unfriendly" governments, such as Iran. This complete ban on exporting sensitive technology to specific countries is an example of a(n):
Tariff.
Import quota.
Boycott.
Embargo.
Global Affairs Canada helps:
Foster a growing, competitive Canadian economy.
Helps turn ideas and knowledge into new processes and products.
Provides consulting services and venture capital to SMEs.
Support international trade.
A comprehensive and coordinated government plan to guide and revitalize the Canadian economy is called:
An industrial policy.
Revitalization.
Privatization.
The crown corporation plan.
What are Canadian crown corporations?
Government owned businesses.
Businesses created as part of the National Policy.
Businesses owned by the Queen or any member of her immediate family.
Businesses created as part of privatization or deregulation.
When the federal government spends more in a year than it receives in tax revenues, the result is called a:
GDP deflator.
Balance of payments deficit.
Federal reserve allowance.
Federal deficit.
Companies owned by the federal or provincial governments are called:
Public corporations.
Government agencies.
Co-operatives.
Crown corporations.
Which of the following is an example of a federal government responsibility?
Providing funding to universities and colleges.
Sewage and garbage disposal services.
Administration of the Competition Act.
Setting property tax rates.
Your local newspaper has a story in its business section that reports that Canadian government spending will again exceed tax revenues. This means that the:
National debt will increase.
Monetary policies pursued by the Bank of Canada have been too loose.
Rate of inflation is likely to fall.
The balance of payments is unfavourable.
The Bank of Canada lowers interest rates:
To attract immigrants.
On instructions from the Minster of Finance.
To boost a weak economy.
To establish better fiscal policy.
Which of the following is an example of how a national industrial policy would be implemented?
Independent initiatives taken in each province based on their unique circumstances.
A combination of financial support and protective tariffs focused on industries deemed vital to Canada's future development.
A phase out of government involvement and support of the economy to encourage entrepreneurship.
The elimination of the HST/GST.
All levels of government offer a variety of assistance programs to businesses. These include:
Exemption from sales taxes for 5 years.
Fully paid employee wages.
Government support with imports.
Grants and loans, consulting advice, and information.
Seeking the advice of established small business owners is:
Only helpful if the person giving the advice has been successful.
Generally not a good idea since they desire to limit their competition.
A possible violation of fair trade laws.
Often valuable since you can learn from their experiences.
When preparing the executive summary of a business plan, it is important to remember:
That computer software programs provide the information needed to complete this section.
That a perfect business plan starts in this section.
That the goal is to capture the attention of bankers and investors.
To list all the qualifications, experience, and education of the entrepreneur.
When comparing small businesses to their larger competitors, it is clear that:
Small firms are slower to respond to opportunities than large firms.
Small firms can always outperform big firms on a level playing field.
Small firms often can offer more personalized customer services than big firms.
Bigger is always better.
Individuals motivated to start a home-based business allowing them to balance the demands of business and family are called:
Hentrepreneurs.
Micropreneurs.
Home workers.
Intrapreneurs.
Which of the following forms of business ownership has an indefinite life?
An oligopoly.
A sole proprietorship.
A partnership.
A corporation.
Employees of small businesses often have greater job satisfaction than do employees of larger firms. One reason for this difference in job satisfaction is that employees of small businesses often:
Get more respect from their bosses.
Have more job security and better fringe benefits.
Earn higher wages.
Receive more vacation time.
Sally Wright has just taken early retirement, including a substantial retirement allowance. She wishes to continue working and wants to invest her retirement allowance in her own small business, and feels comfortable doing so with an established product and process. She worked for the same employer in the same job all of her working career and therefore has no experience in running her own business. In starting her own business she would be well-advised to:
Start the business from scratch.
Buy an existing business.
Buy a franchise.
Work for someone in an existing small business for the next 10 years.
Which of the following pieces of advice would an experienced business owner share with someone who is thinking about starting a business venture?
Postpone consulting with an accountant or lawyer until you can afford their services.
Jump in quickly, before the market conditions change and opportunities are lost.
Gain experience by working for a successful businessperson.
Avoid the temptation of buying an existing firm. Build your own reputation and make your mistakes.
Chris is an angel investor. This indicates that she:
Provides assistance for struggling entrepreneurs.
Creates business incubators for startup Web-based firms.
Is involved in providing startup money for charities and other non-profit organizations.
Invests her own money in new businesses before they sell stock publicly.
Kayla recently quit a job with a large corporation to start her own business. While she realizes that her decision comes with risk, she is excited by the chance to be independent and the challenges of running her own firm. Kayla is an example of a(n):
Raconteur.
Entrepreneur.
Venture capitalist.
Intrapreneur.
In which marketing era did customer relationship management take prevalence?
Sales era
Marketing orientation era
Social media marketing era
Marketing concept era
Business-to-business markets tend to be:
More emotional than consumer markets.
Dominated by marketing intermediaries.
Characterized by the presence of a large number of small buyers.
Geographically concentrated.
The __________ is based on three elements: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.
Social media marketing era
Market orientation era
Sales era
Marketing concept era
Non-profit organizations view marketing as:
Principally an opportunity to sell their services to the general public.
Critical, especially for those dependent on donations.
A means of identifying the price of the services they provide.
Of little significance, since they are required to be funded by various levels of government.
All of the following statements about the B2B market are true, EXCEPT:
The B2B market is smaller than the consumer market.
The markets are often geographically concentrated.
The size of industrial customers is relatively large.
Industrial buyers tend to be more rational.
If you owned a ski shop, which of the following questions would relate to distributing your skis to end consumers?
How much are they willing to spend on the purchase of skis?
Where do consumers want to go to buy skis?
Why would any consumer be interested in buying skis?
What are consumers looking for in skis?
When making marketing mix decisions, marketing managers should consider:
Business and global trends in which the firm operates.
The decline in importance of promotion as a tool of the marketing mix.
How to connect with competitors to set prices in the marketplace.
Distribution as the most important component of the marketing mix.
What is the impact of selling to business customers that purchase large amounts of a product?
Market segmentation will need to be used to focus your limited marketing resources.
A minimal amount of time will need to be spent on customer relationships.
A business needs to manage far fewer customer relationships to achieve a reasonable level of sales.
These business customers will be spread out over a very large geographic area.
What would be an example of an economic change a marketer should be informed about?
The newest social networking programs.
How changes in disposable income affect consumer buying behaviour.
More competitors entering the market.
Ethnic groups that are growing most rapidly.
By employing a relationship marketing strategy, Jocelyn found success as an entrepreneur. The goal of this strategy is to:
Work closely with existing customers to better satisfy their wants and needs.
Use radio and television advertising to attract new customers.
Target large market segments of potential customers by working closely with a variety of suppliers.
Communicate to buyers the advantages offered by your firm's low prices and standardized products.
Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy.
Cost-based
Bundling
Skimming
Penetration
A(n) _________ is a marketing intermediary that sells to other organizations.
Broker
Agent
Wholesaler
Retailer
While an effective promotional tool, which of the following is considered unmanageable?
Buzz marketing
Social media marketing
Non-store retailing
Public relations
Firms utilize ________ when they attempt to add value to their product by offering service after the sale, product demonstrations, or interactive customer web sites.
Niche marketing
Break-even segmentation
Relationship branding
Non-price competition
_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.
High-low pricing
Everyday low pricing (EDLP)
Psychological pricing
Bundling
LoRider Wheels sells high quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of the ___________ offered by LoRider.
Competitive environment
Promotion mix
Total product offer
Product matrix
Which of the following is a potential problem with a high-low pricing strategy?
It teaches customers to wait for sales, and therefore could reduce profits.
It confuses and frustrates customers.
It is difficult to implement.
It places too much emphasis on non-price competition.
Producers of candy bars are most likely to use a(n) _____________ distribution strategy for their products.
Exclusive
Selective
Intensive
Extensive
'Chip off the Old Block' is a new chocolate chip cookie created by the Cookie Company. To generate interest, the company sent a free package of cookies to selected homes along with a coupon. Cookie Company's activities represent:
Public relations.
Sales promotions.
Trade advertising.
Consumer publicity.
The rent a firm pays each month for office space is an example of a(n):
Uncontrollable cost.
Mixed cost.
Variable cost.
Fixed cost.
_________ is the function in the firm that searches for quality material resources, finds the best suppliers, and negotiates the best price.
Marketing
Quality control
Operations
Purchasing
The goal of lean manufacturing is to:
Keep inventories of finished goods as low as possible.
Produce goods and services with less of everything compared to mass production.
Produce a limited variety of goods.
Design machines to do multiple tasks so that they can produce a variety of products.
A firm that has been certified as meeting both ISO 9000 and ISO 14000 standards has demonstrated:
Ethical treatment of both customers and employees.
Sound financial and marketing practices.
World-class management of both quality and environmental standards.
World-class management of quality and a focus on social responsibility.
A production process characterized by long production runs to turn out finished goods over time is known as a(n):
Extended process.
Unrestricted process.
Continuous process.
Assembly process.
________________ is the specialized area of management that converts or transforms resources into goods and services.
Production management
Operations management
Logistics management
Supply chain management
Westside Manufacturing has just installed some new machines that are designed to do many different tasks and can be used to produce a variety of products. This indicates that Westside is moving toward:
Process manufacturing.
Lean manufacturing.
Mass production.
Flexible manufacturing.
A business would use the following approaches to improve productivity, EXCEPT:
Finding ways to reduce the cost of inputs.
Improving the quality of outputs so that there are fewer defects.
Producing more with the same amount of inputs.
Using more factors of production to maintain the same level of outputs.
Why are many companies demanding that their suppliers obtain ISO certification?
Companies can reduce the amount of time they used to spend inspecting goods from certified suppliers.
Consumers are demanding it.
Companies with ISO certification can only work with suppliers with the same level of certification.
It is now required by law.
Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate?
CAD/CAM is most useful to firms producing durable goods such as automobiles.
CAD/CAM has replaced ERP as the most sophisticated resource planning technique.
CAD/CAM has made it possible to produce custom-designed products with little increase in costs.
CAD/CAM allows firms to save money by replacing skilled labour with computers to perform all of the high-skill tasks.
A major reason Japanese automakers have located in Canada has been the desire to:
Take advantage of just-in-time inventory methods.
Locate in an area where labour is more productive.
Switch to less labour-intensive production methods.
Get closer to their international customers.
All of the following are recognized as being potential hurdles to be overcome in global trading, EXCEPT:
Different cultures
Different money systems
Lack of market opportunities
Different languages
_____ for a country occurs when it has a monopoly on producing a product.
Absolute advantage
Complete advantage
Comparative advantage
Dumping advantage
Which of the following strategies for competing in the global markets involves the lowest profit potential?
Contract manufacturing
Licensing
Foreign subsidiary
Joint venture
The fee paid to a firm in a licensing agreement that gives another firm the right to manufacture their product or use its trademark is called:
A trading bloc
A cartel
An outsource agreement
A royalty
If a Swiss chocolate firm purchases a Canadian ice cream manufacturer, the Canadian ice cream manufacturer becomes a:
Foreign subsidiary
Global joint venture
Contract manufacturer
Global franchise
Japanese automobile producers sold more of their production overseas than they sold in Japan. Their business strategy emphasizes:
Exporting
Licensing
Dumping
Importing
Municipal governments have laws and regulations concerning:
Sales tax
Any business that serves food
Post secondary education
Immigration
Some people argue that the best way to develop the Canadian economy is:
An across the board increase on import duties
Less free trade
A long term industrial policy
Privatization of all crown corporations
Innovation, Science and Economic Development Canada was formerly known as:
Revenue Canada
The Centre of Innovation Canada
The Department of Economic Development
Industry Canada
Joe's Promotions abides with Canada's Anti-Spam Legislation through the following activities, EXCEPT:
Ensuring electronic communications are sent from outside Canada
Obtaining express consent to send messages
Providing their contact information in electronic communications
Including an option to unsubscribe from email messages
A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:
Financial capitalist
Corporate raider
Venture capitalist
Takeover specialist
All of the following are characteristics of successful entrepreneurs, EXCEPT:
Tolerant of uncertainty
Self-disciplined
Willingness and desire to follow others
Action-oriented
An examination of the reasons given by people willing to accept the risks of entrepreneurship indicates that:
The desire to earn a profit is the prime motivator for most people to become entrepreneurs.
Many people become entrepreneurs because they do not enjoy working for someone else.
Contrary to popular opinion, most entrepreneurs are not interested in personal achievement.
The strongest motivator is the desire to be famous and powerful.
Anthony, a small business owner, is considering marketing his product in Brazil. If he enters the Brazilian market, he is likely to face all of the following problems, EXCEPT:
difficulties in obtaining adequate financing.
Convincing foreign firms to do business with a small firm, rather than a large corporation.
the cultural differences between Canada and Brazil.
The heavy burden of bureaucratic paperwork.
A widely used technique for collecting primary data is:
The observation method
Collecting relevant articles in trade journals
The review of government reports
Benchmarking
A consumer's decision making process is influenced by their __________, consisting of those people who help shape the consumer's beliefs, attitudes, values or behaviour.
Reference group
Cognitive dissonance
Psychological influences
Situational influences
While the four Ps help us remember the basics of the __________, they don't include everything that goes into the marketing process.
Marketing matrix
Production matrix
Marketing mix
Promotion mix
The B2B market uses goods and services
Before they are available for sale in the consumer market
To sell to others or to use in producing other goods and services
Sooner than in the consumer market
For personal consumption by the employees of a business
Digital Print Shops has responded to new competition from national chain stores by focusing on small market segments that have been ignored by their larger competitors. Digital believes it can attract a loyal group of customers willing to pay premium prices. Digital's strategy is known as:
Behavioural segmentation
Niche marketing
Micro marketing
Environmental scanning
As the campaign manager for a candidate for the Canadian Federal Parliament, Pete works to learn as much as possible about potential voters. With this information, he hopes to focus the campaign on the issues most important to voters. This represents:
An extension of the profit orientation to a non-profit organization
The use of marketing by a non-profit organization
The selling of a political candidate
A non-profit application of the production era strategy
Kelly buys only Nike shoes because they are endorsed by her favourite entertainers who she feels she strongly relates to. This illustrates how consumer decision making is influenced by:
Cognitive dissonance
Psychological influences
Conscious regression
Sociocultural influences
The maturity stage follows the _____ stage of the product life cycle.
Introduction
Decline
Growth
Profit
__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.
Target costing
Cost-based pricing
Price discrimination
Price leadership
The cost of raw materials used to produce a good or service represent the firm's ________ costs.
Variable
Mixed
Uncontrollable
Fixed
Which of the following represents a pricing strategy for a new product that establishes a low price to attract more customers and attempts to discourage competitors?
Everyday low pricing strategy.
Skimming strategy
Penetration strategy
High-low pricing strategy
Phil asks you to calculate the break-even point for his firm. You respond that you will need the following information:
The values for all assets and liabilities
Sales revenue and total liabilities
Forecasted sales volume, operating expenses, and asset values
Total fixed costs, selling price, and variable costs per unit
Jian has entered into a contract with the federal government to design a computer simulation for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This represents:
Demand-based pricing
Supply and demand pricing
Target costing
Cost-based pricing
Which of the following is the best example of a product line?
Kellogg offers Special K, Raisin Bran, Corn Flakes, and a variety of other cold ready-to-eat cereals.
General Motors offers passenger cars, small trucks, and tractor trailers.
Sony offers DVD players, compact disc players, and video game consoles.
Hewlett Packard offers scanners, printers, and personal computers.
In today's quality control programs, emphasis is placed on:
Achieving customer satisfaction
Keeping labour costs as low as possible
Producing goods at the lowest possible cost
Detecting errors at the end of the production process before goods are shipped to customers
Which control procedure focuses on the relationship between tasks?
CIM
Balanced score card
Gantt chart
Program evaluation and review technique
MegaMachines obtains computer components from a variety of suppliers and puts them together to make computers. This process is an example of:
An assembly process
A continuous process
An intermittent process
Process manufacturing
Cooltreet Inc. Combines sugar, cream, eggs, and flavourings, then churns and cools the resulting mixture until it freezes, creating ice cream. This is an example of:
A symbiotic process
Process manufacturing
An assembly process
An intermittent process
Superior Supplies has just agreed to help one of its biggest customers, Amalgamated Products, by participating in a just-in-time inventory system. From Superior's perspective as a supplier, this system will mean:
That they will have almost complete freedom in scheduling deliveries
A need to deliver large quantities at re
A need to deliver small quantities at regularly scheduled intervals.
More effort and higher costs.
Careful consideration of the use of computers in accounting indicates that computers:
Will soon eliminate all of the accounting functions.
Cannot handle the increasing data demands of accounting.
Have a very limited use in accounting due to inadequate privacy controls.
Are tools to help the accountant perform his or her job.
A balance sheet lists assets in order of their _________.
Income generating ability
Dollar value, from largest to smallest
Date of acquisition, with the most recently acquired assets listed first
liquidity, with the most liquid assets listed first
Financial ratios that reflect the degree to which a firm relies on borrowed funds are called ________ ratios.
Activity
Leverage
Liquidity
Profitability
In order to calculate the current ratio for your firm, you would divide current assets by:
Cost of goods sold.
Current liabilities
Current earnings.
Owners' equity
The balance sheet reports the financial position of a company:
At the end of the period covered by the other two primary financial statements.
Including the breakdown of the various sources and uses of cash.
Covering the period reported by the other two primary financial statements.
Including the bottom line.
Compared with the other financial statements, a balance sheet is the only statement to:
Provide information on the change in inventory over a period of time.
Show the revenue and expense balances for a period of time.
Show the balance of cash at a point in time.
Include information on the major categories of assets and liabilities.
The way accountants handle amortization could have an impact on:
The value of intangible assets listed on the balance sheet.
The net income reported on the income statement.
Revenue reported on the income statement.
the way current ratios are computed.
Shareholders want to evaluate how effectively the top managers of Highbrow Bookstores have managed company assets. The most meaningful way to do this would be by calculating:
Liquidity ratios.
Activity ratios.
Leverage ratios.
Probability ratios.
A difference between managerial and financial accounting is that managerial accounting:
Adheres to principles set by GAAP, while financial accounting uses IFRS.
Involves preparation of the balance sheet and income statement, while financial accounting involves preparation of the statement of cash flows.
Handles recording and classifying transactions that have no direct financial impact on the firm, while financial accounting handles transactions that do.
Provides information primarily intended for managers inside the company, while financial accounting provides information primarily intended for those outside the company.
Ralph owns a small business with a manual accounting system. He is concerned about the time it would take to learn how to use a computerized accounting system, and wonders whether the benefits will justify the costs of setting up the system. As a small business owner, Ralph would probably find that:
Computer software tends to be very helpful to small business owners who lack strong accounting support within their companies.
Today's accounting software tends to be very complex, so only people with extensive accounting experience can understand its features and use it effectively.
Such systems actually reduce costs, because they eliminate the need to ever consult with an accountant.
He should go ahead and adopt a computerized system, because government regulations require most business functions to be automated.
Typically, only highly regarded customers of a bank receive:
Unsecured loans.
Bank premiums.
Secured loans.
Commercial paper.
Short-term financing options include all of the following, EXCEPT:
Factoring accounts receivable.
Issuing common shares.
Trade credit.
Loans from commercial banks.
The need for operating funds:
Is established by relevant government laws and regulations.
Increases when a firm introduces new products or enters a new market.
Eventually is eliminated as a business matures.
Remains constant regardless of the activities of the firm.
Money has time value because:
A dollar received today is worth more than a dollar received last year.
Money earns interest over time.
Monetary systems are more automated than in the past.
Inflation reduces the value of money over time.
Trade credit is the practice of:
The process of company A selling their accounts receivable to company B and receiving shares in company B as payment.
Trading one item for another with a third party.
Buying goods and services now and agreeing to pay for them later.
Borrowing money from a bank to finance accounts receivable.
Susan is convinced that her new business failed because she lacked the necessary funds to do the things that it takes to get a new business up and running. Her problem apparently was:
A cash flow issue.
Undervalued inventory.
inadequate financial control.
Undercapitalization.
Long-term financing would normally be used to purchase:
Supplies.
Highly liquid assets.
Inventory.
Buildings.
Akiko realizes the importance of developing a ________ for her design business. Akiko knows of no better way of establishing revenue expectations and allocating resources in order to achieve the goals of her company.
Budget
Market prediction
Financial forecast
Cash flow analysis
Nicole is a financial manager. Her responsibilities include all of the following, EXCEPT:
Preparing financial statements.
Preparing for the expenditure of funds.
Planning for the acquisition of funds.
Conducting a cash flow analysis.
As a result of cash flow shortages, Kellco Department Stores has fallen behind in payments to suppliers. Some suppliers are withholding shipments to Kellco until they receive payments on overdue accounts. To meet their immediate needs, Kellco should utilize:
Venture capital.
Short-term financing.
Trade credit.
Long-term financing.
The time when all employees must be present in a flextime plan is referred to as:
Company time.
Compressed time.
Core time.
Shared time.
Recruiting is all about:
Determining the qualifications you are looking for in the person you want to hire.
Deciding who should be hired.
Screening applicants for a position.
Having a pool of qualified candidates for the job.
A ________ is a study of what is done by employees who hold various job titles.
Job specification
job description
Pre-selection
Job analysis
For many types of service organizations such as hospitals, banks, and airlines, the primary cost of operations is:
Labour costs.
Insurance and legal expenses.
Coping with obsolescence that results from the rapid pace of technological change.
Establishing and maintaining a presence on the Internet.
The first step in the performance appraisal process is to:
Meet with employees and discuss the overall objectives of the firm.
Establish performance standards.
Analyze jobs to see what tasks must be performed.
Perform a human resource inventory.
A firm would most likely implement a policy of holding exit interviews if it wanted to:
Make sure workers who agreed to telecommute understood their new responsibilities.
Find out why so many of its good employees were quitting.
Implement a golden handshake policy.
Allow immediate supervisors one more chance to convince retiring workers to stay on the job.
At XYZ Industries, new workers are immediately assigned to jobs. They learn by doing the actual work and by watching longer-term employees. XYZ uses a policy of:
Vestibule training.
On-the-job training.
Vertical assimilation.
Job rotation.
Frank is a human resource manager at a major corporation. If Frank's company is like most firms today, which of the following statements about Frank's job is likely to be the most accurate?
Frank's job will be simpler in the future because the percentage of new workers entering the labour force who are poorly educated and unprepared for work is slowly but steadily declining.
Government laws and regulations concerning hiring, worker safety, pay, and unionization will make Frank's work complex and challenging.
Most of Frank's time will be devoted to keeping employee files updated.
Frank and his fellow human resource managers will be given complete responsibility for performing all human resource functions within the organization.
Major companies such as IBM have been able to use _________ to cut costs by reducing the number of offices and desks for employees.
Telecommuting
Compressed work schedules
Job sharing
flextime plans
Betty is a human resource manager with ABC Industries. Her current assignment is to revise and update ABC's employment testing procedures. Betty should:
Design tests that are directly related to an applicant's ability to perform the job.
Write tests that are so difficult that only a small fraction of qualified workers can pass them.
Inform her superiors that such tests are now illegal.
Design tests that measure general aptitudes rather than ability to do the job.
A(n) __________ leader would set objectives and give employees a great deal of freedom to decide for themselves how to accomplish those objectives.
Type A
Laissez-faire
Autocratic
Aristocratic
The management function concerned with anticipating future trends and determining the best strategies to achieve a company's goals and objectives is known as:
Leading.
Controlling.
Planning.
Organizing.
When managers work on creating conditions and systems to ensure that everything and everyone works together to achieve the company's goals, they are involved in the __________ function of management.
Controlling
Leading
Planning
Organizing
The balanced scorecard approach:
Focuses on non-financial areas of measurement.
Does not consider organizational effectiveness.
Can be ineffective if too much time is spent measuring.
Ensures that companies focus on short-term financial results.
The reality of contingency planning is that:
This type of planning should allow a business to properly prepare for unexpected events.
If done properly, you can prevent unexpected events.
It is seldom used today, as rarely does a company not achieve their primary plans.
They are an acknowledgement that a company has done a poor job of planning.
Which of the following is the best performance standard?
Completely eliminate all customer complaints within the next month.
Decrease the number of products rejected due to manufacturing defects by 10% in the next 6 months.
Bring about a significant improvement in the morale of all workers.
Make secretaries more efficient.
As firms make greater use of empowerment, managers will find that they:
Will need to closely supervise teams to make sure they remain focused on the goals of the organization.
Should use the same techniques for directing employees that were used in the past.
Will need to provide teams with detailed instructions to give them a clear sense of direction.
Must become more like coaches than bosses.
Jamal is part of a management group that is examining whether his company, State Engineering, should offer important new services to appeal to a different group of potential clients. Jamal's group is involved with:
Strategic planning.
Contingency planning.
Operational planning.
Tactical planning.
Joseph Han has just spent two hours going over quality reports to determine whether his department is meeting quality standards set for the current month. Joseph's efforts are part of the ___________ function of management.
Organizing
Leading
Planning
Controlling
Which of the following activities is part of the organizing function of a manager?
Teaching a new employee how to use a piece of office equipment.
Going over a spreadsheet to analyze some financial data.
Developing a broad general strategy to help the organization meet its long-term growth objectives.
Giving front-line workers additional resources needed to provide faster and better service to customers.
The majority of CEOs blame unethical employee conduct on:
A failure of leadership to establish ethical standards.
The breakdown of traditional religious institutions.
The increase in lawsuits used to avoid personal responsibility.
Business schools that tolerate unethical behaviour in students.
The triple-bottom line measures:
Profits, people, and places.
Economic, social, and environmental parameters.
Public private partnerships.
Social audit performance.
The main purpose of the Sarbanes-Oxley Act is:
To inform external stakeholders of the importance of ethical behaviour by a business.
To identify the steps in a process to improve business ethics.
To ensure the accuracy and reliability of published financial information.
To provide financial compensation to whistleblowers.
The first step when facing an ethical dilemma is to ask:
Is it balanced?
Is it legal?
Is it ethical?
How will it make me feel about myself?
One factor causing businesses to vigorously enforce ethical standards is the:
Fear of negative publicity.
Evasion of social audit measurements.
Focus on criminal penalties.
Desire to eliminate employee turnover.
Which of the following activities would generally not be included in the social audit of a business?
Employee-related activities.
Comparisons of profits versus the profits of other firms.
Support for higher education, the arts, and non-profit groups.
Consumer activities such as product safety, honest advertising, and fair pricing.
The Hummer Corporation has recently instituted a corporate ethics code. The president of the company realizes that ethical relationships are based on:
Strict penalties for illegal activities.
Trust and cooperation.
Watchdogs and whistleblowers.
A well-developed corporate code of ethics.
In an effort to help employees resist the pressure to make an unethical decision, the Johnston Petroleum Company has communicated their code of ethics statement to their suppliers, distributors, and customers. This approach is consistent with a(n):
Response to a government mandate.
Compliance-based ethics code.
Integrity-based ethics code.
Personal responsibility commitment.
Top management at Lancer Distributing is convinced that they have a social responsibility to their community. They believe that they can have the greatest impact through cash contributions to non-profit organizations. This is an example of corporate:
Policy.
Philanthropy.
Social initiatives.
Responsibility.
Doogid Corporation would like its employees, customers, and the general public to be aware of the activities they have done for the community over the past year. The company might consider doing a(n):
Social audit.
Contributory analysis.
P3 report.
Responsibility review.
Canada exports most of its merchandise to:
The United States.
Great Britain.
India.
Japan.
One reason why Canada and the United States trade so much is:
Each country understands the culture and needs of the other.
Standard shipping rates between the two countries.
NAFTA requires that member countries trade with each other wherever possible before working with other countries.
A common currency.
Which of the following strategies for competing in the global markets involves the lowest profit potential?
Joint venture
Contract manufacturing
Licensing
Foreign subsidiary
Japanese automobile producers sold more of their production overseas than they sold in Japan. Their business strategy emphasizes:
Exporting.
Importing.
Licensing.
Dumping.
Companies such as McDonald's, Pizza Hut, and KFC, have entered the global market by offering investors the opportunity to set up:
Multinational subsidiaries.
Producer cartels.
Franchises.
Joint ventures.
When the federal government spends more in a year than it receives in tax revenues, the result is called a:
Federal deficit.
Balance of payments deficit.
GDP deflator.
Federal reserve allowance.
Efforts by the Bank of Canada to control the money supply and interest rates are known as:
Fiscal policy.
Securities policy.
Income policy.
Monetary policy.
Which of the following is an example of how a national industrial policy would be implemented?
A phase out of government involvement and support of the economy to encourage entrepreneurship.
The elimination of the HST/GST.
Independent initiatives taken in each province based on their unique circumstances.
A combination of financial support and protective tariffs focused on industries deemed vital to Canada's future development.
Joe's Promotions abides with Canada's Anti-Spam Legislation through the following activities, EXCEPT:
Providing their contact information in electronic communications.
Ensuring electronic communications are sent from outside Canada.
Obtaining express consent to send messages.
including an option to unsubscribe from email messages.
Which of the following is an example of a federal government responsibility?
Sewage and garbage disposal services.
Administration of the Competition Act.
Setting property tax rates.
Providing funding to universities and colleges.
A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:
Corporate raider.
Venture capitalist.
Financial capitalist.
Takeover specialist.
All of the following are characteristics of successful entrepreneurs, EXCEPT:
Action-oriented.
Self-disciplined.
Willingness and desire to follow others.
Tolerant of uncertainty.
Which of the following forms of business ownership has an indefinite life?
An oligopoly.
A corporation.
A sole proprietorship.
A partnership.
An examination of the reasons given by people willing to accept the risks of entrepreneurship indicates that:
The desire to earn a profit is the prime motivator for most people to become entrepreneurs.
The strongest motivator is the desire to be famous and powerful.
Many people become entrepreneurs because they do not enjoy working for someone else.
Contrary to popular opinion, most entrepreneurs are not interested in personal achievement.
A widely used technique for collecting primary data is:
Collecting relevant articles in trade journals.
The observation method.
The review of government reports.
Benchmarking.
What is the impact of selling to business customers that purchase large amounts of a product?
Market segmentation will need to be used to focus your limited marketing resources.
A business needs to manage far fewer customer relationships to achieve a reasonable level of sales.
These business customers will be spread out over a very large geographic area.
A minimal amount of time will need to be spent on customer relationships.
Which of the following statements relates to the marketing concept era of marketing?
Send frequent emails to your customers informing them of your newest products.
Use social media sites, including Facebook, to find information about a product or service.
It's about capturing information on each sale to a customer and sharing this information throughout your business.
At the end of the day, any company should focus on the most profitable products or services.
By employing a relationship marketing strategy, Jocelyn found success as an entrepreneur. The goal of this strategy is to:
Work closely with existing customers to better satisfy their wants and needs.
Use radio and television advertising to attract new customers.
Target large market segments of potential customers by working closely with a variety of suppliers.
Communicate to buyers the advantages offered by your firm's low prices and standardized products.
A(n) _________ is a marketing intermediary that sells to other organizations.
Wholesaler
Retailer
Broker
Agent
While an effective promotional tool, which of the following is considered unmanageable?
Public relations
Social media marketing
Buzz marketing
Non-store retailing
Which of the following is a potential problem with a high-low pricing strategy?
It confuses and frustrates customers.
It places too much emphasis on non-price competition.
It is difficult to implement.
It teaches customers to wait for sales, and therefore could reduce profits.
Firms often use a(n) _____________ when working on production of a large item such as an airplane.
Assembly line layout
Continuous production process
Fixed-position layout
Modular layout
In today's quality control programs, emphasis is placed on:
Achieving customer satisfaction.
Detecting errors at the end of the production process before goods are shipped to customers.
Keeping labour costs as low as possible.
Producing goods at the lowest possible cost.
Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate?
CAD/CAM has made it possible to produce custom-designed products with little increase in costs.
CAD/CAM has replaced ERP as the most sophisticated resource planning technique.
CAD/CAM allows firms to save money by replacing skilled labour with computers to perform all of the high-skill tasks.
CAD/CAM is most useful to firms producing durable goods such as automobiles.
Cooltreet Inc. Combines sugar, cream, eggs, and flavourings, then churns and cools the resulting mixture until it freezes, creating ice cream. This is an example of:
An intermittent process.
Process manufacturing.
An assembly process.
A symbiotic process.
Why are many companies demanding that their suppliers obtain ISO certification?
It is now required by law.
Consumers are demanding it.
Companies with ISO certification can only work with suppliers with the same level of certification.
Companies can reduce the amount of time they used to spend inspecting goods from certified suppliers.
Why do users of the balance sheet want to see current assets and current liabilities clearly identified?
To see what portion of assets have been financed with debt.
To see the most important assets and liabilities for the company.
To assess the ability of the company to pay current liabilities when due.
To see which assets were purchased most recently and bills that have just been received.
There are five key working areas in the accounting profession, two of which are:
Income accounting and expenditure accounting.
Forecasting and financial accounting.
Inventory control and budgeting.
Compliance and managerial accounting.
The review and evaluation of the records of a firm that are used to prepare the organization's financial statements is referred to as _____.
Certified bookkeeping
Compliance accounting
Managerial accounting
Forensic accounting
Why are public companies required to have independent audits?
To confirm the work performed by outside consultants.
To satisfy various stakeholders that their financial records are presented fairly.
To confirm if a profit has been made.
To find out how much money is in their bank accounts.
A(n) ___________ is an evaluation and unbiased opinion of the accuracy of a firm's financial statements.
Certified audit
Independent audit
Internal audit
Annual report
If a firm can reduce its COGS and continue to sell its product for the same price, we would expect the firm to enjoy an increase in its ________.
Employee turnover
Revenue
Liabilities
Gross margin
Your company is a supplier to a major chain of discount stores. You have heard rumors that this chain of discount stores is in some financial difficulty. Which financial ratios would indicate their ability to pay short-term debts?
Profitability ratios.
Liquidity ratios.
Activity ratios.
Leverage ratios.
Jose plans to work for the Canadian Cancer Society as an accountant. Jose will be a(n):
Forensic accountant.
Public accountant.
Independent accountant.
Private accountant.
A _________ represents a long-term debt obligation issued by a corporation or government.
Share of stock
Certificate of deposit
Commercial note
Bond
When using ________ financing, the company incurs a legal obligation to repay the amount borrowed.
Commitment
Retained earnings
Equity
Debt
Selling accounts receivable to obtain short-term funds is called:
Pledging.
Factoring.
Debt financing.
Equity financing.
Which of the following statements about debt financing is accurate?
Unsecured loans are only granted to new customers.
Long-term debts typically have a maturity date.
Bondholders become owners of the company.
Payment of interest is optional if the company is profitable.
By selling shares of ownership in their company, Ottawa Scientific acquires the funds needed to finance their research and development projects. Ottawa Scientific provides for their long-term funding needs through ________ financing.
Equity
Asset
Retained earnings
Debt
Deltoid Aluminum uses its stock of unsold aluminum products as collateral for short term loans. This arrangement represents:
Factoring.
An unsecured loan.
A secured loan.
Revolving credit agreements.
Capstone Financial Services is considering the purchase and installation of an expensive computer network. This is the type of expenditure that would be included in a(n):
Cash budget.
Asset budget.
Operating budget.
Capital budget.
To secure financing for a planned expansion, JamesCo Electronics borrowed $400,000 from King Finance. The ________ loan agreement requires that JamesCo Electronics provide the title to their factory as collateral.
Secured.
Minority.
Recapitalization.
Pledged.
Employment testing:
Is legal, but has been shown to be a very poor predictor of worker performance.
Was declared illegal because it was often used to discriminate against women and minorities.
Should focus on the most basic and general skills rather than on skills directly related to the job.
Should be directly related to the job.
____________ refers to short-term, skills-oriented attempts to improve workers' job performance.
Training.
Development.
Job enrichment.
Performance evaluations.
The most likely reason a firm would pay its sales representatives a commission rather than a salary is that it wants to:
Be able to deduct the cost of compensating the sales representatives from its taxable income.
Provide sales representatives with a strong incentive to generate more sales for the company.
Give the sales representatives a stronger incentive to collaborate with each other and act as a team.
Keep the pay system as simple as possible.
Sal is a human resource manager with ABC Cooking Supplies who needs to recruit people to fill several positions within his company. Sal is most likely to rely on external recruiting sources if he:
Wants to eliminate the need to meet affirmative action regulations.
Believes that ABC's current employees do not have the qualifications necessary to successfully fill the positions.
Places a great deal of importance on maintaining high morale for current workers.
Needs to keep the cost of his recruiting efforts to a minimum.
Tactical planning is concerned with:
The setting of work standards and schedules.
Developing detailed short-term strategies about what is to be done and who is to do it.
Setting long-term goals that will govern the general course of the organization.
Determining the best way to cope with an emergency situation.
Managers who listen to their subordinates and allow them to participate in decision-making are using the ____________ style of leadership.
Bureaucratic
Free-rein
Autocratic
Participative
When establishing criteria to measure the success of a business, managers should:
Recognize that while financial measures are important, the purpose of the firm is to satisfy both internal and external stakeholders.
Focus primarily on financial measures, but pay some attention to non-financial concerns.
Limit their attention to financial measures such as profit and return on investment since these are the most objective and quantifiable measures available.
Focus most of their attention on measures of employee satisfaction, since the firm will not be competitive without good employees.
Which of the following activities is part of the planning function of a manager?
Looking at market forecasts to identify future business opportunities and challenges.
Assigning a particular worker to do a specific task.
Conducting a job interview with a potential new employee.
Praising a sales representative who has far exceeded her monthly sales objectives.
Autocratic leadership is likely to be effective when:
Workers enjoy expressing their opinions and having a say in what is done.
The organization faces an emergency situation.
The manager is uncertain about the best strategy to pursue.
Subordinates are highly-trained professionals.
Ed Flavourman, the CEO of Flavour Best Ice Cream, believes that alternative plans are almost as important as the primary operational plans because the market is so competitive and unpredictable. Ed endorses:
Retroactive planning.
Tactical planning.
Contingency planning.
Concurrent planning.
Legality is:
Broader than ethical behaviour.
The only consideration for ethical behaviour.
The same as ethical behaviour.
Narrower than ethical behavior.
Which of the following is not part of a compliance-based ethics code?
Increased control over employee actions.
Penalties for wrongdoers.
Shared accountability among employees.
Awareness of the relevant laws.
A business is socially responsible to their investors by:
By maintaining equality in wage rates paid to male and female employees.
Creating new wealth that is distributed to many stakeholders.
Undertaking initiatives that reduce their carbon footprint.
Making ethical decisions that result in the increase of shareholder wealth.
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