Deck 1: The Changing Face of Business

Question 1

Natural resources are essential for certain companies but are NOT required for all economic systems.

Answer 1

False

Question 2

Not-for-profit organizations are commonly exempt from federal, provincial, and local taxes.

Answer 2

True

Question 3

Technology is considered to be capital.

Answer 3

True

Question 4

All factors of production are found in equal amounts in all businesses.

Question 5

Adam Smith's "invisible hand" refers to the battle among businesses for consumer acceptance.

Question 6

High-end technology, such as the Global Positioning Satellite System offered in some new cars, is considered a capital resource.

Question 7

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.

Question 8

In order to remain viable, not-for-profit organizations need to focus on profits even more than the public service they provide.

Question 9

Profits are guaranteed by the private enterprise system for every entrepreneur with good management skills.

Question 10

Entrepreneurship is synonymous with "risk-taking."

Question 11

The private enterprise system encourages government intervention.

Question 12

Just as with a for-profit business, the first priority for a not-for-profit organization is making a profit.

Question 13

Canada functions under the private enterprise system.

Question 14

Capital includes money, machines, tools, buildings, and human resources.

Question 15

When farmers rent land in order to increase crop production, they are acquiring capital.

Question 16

An entrepreneur and a manager are the same.

Question 17

Companies are NOT required to be ethical to succeed in the long run.

Question 18

The owner of a small business is part of the human resources of his/her organization.

Question 19

Large corporations are defined as businesses, whereas small companies are more of an investment.

Question 20

Employees and founders of not-for-profit organizations do NOT usually earn any income from their operations.

Question 21

Technology has revolutionized business communications.

Question 22

The Nike swoosh is NOT considered a brand; only the company name can be a brand.

Question 23

Successful entrepreneurs usually create large corporations.

Question 24

The Industrial Revolution began in Germany and quickly spread to the rest of Europe.

Question 25

Unfair or "cutthroat" competition, designed to eliminate competitors, is prohibited by the U.S. government.

Question 26

Private property is considered the most important right in the private enterprise system.

Question 27

Information technology has been the key driver behind the relationship era.

Question 28

In the private enterprise system, government has no role to play in ensuring fair competition.

Question 29

The production era preceded the age of industrial entrepreneurs.

Question 30

During the colonial period, the focus was on agriculture and other rural activities.

Question 31

The Industrial Revolution began in the United States with the development of the automobile.

Question 32

In consumer orientation, a company creates a product first, and then determines if the consumer will likely purchase the product.

Question 33

A key element of the production era was the use of consumer research.

Question 34

When the government sets ground rules for competitive activity, the intent is to increase freedom of choice for consumers.

Question 35

Entrepreneurs are very conservative and usually invest only in sure winners.

Question 36

The current philosophy among managers today is best described as transaction management.

Question 37

One factor that led to the Industrial Revolution was the mechanization of agriculture.

Question 38

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.

Question 39

Finding unique ways to use the factors of production is a common characteristic of most entrepreneurs.

Question 40

When customers enter a supermarket and select their favourite brand of laundry detergent, they are exercising their right to freedom of choice.

Question 41

Assume Motorola and Microsoft work on developing a new cell phone that also is a PDA. This is an example of a strategic alliance.

Question 42

The new employer-employee relationship requires firms to establish rigid rules to govern employee activities.

Question 43

The number of companies forming partnerships and strategic alliances has declined in recent years.

Question 44

Relationship management refers to ongoing, mutually beneficial ties between a company and its vendors.

Question 45

Relationship management is important in the relationship era and the social era.

Question 46

Today, workers are much less likely to remain with the same employer throughout their entire careers.

Question 47

A strategic alliance is a partnership formed to create competitive advantage for the businesses involved.

Question 48

Although the number of college-educated workers has doubled in the last 20 years, the demand for workers is still greater than the supply.

Question 49

Research indicates that work teams consisting of a diverse group of individuals often are more productive than less diverse work teams.

Question 50

The needs of older workers are similar to those of younger workers.

Question 51

The use of assembly lines became popular during the colonial era.

Question 52

Relationship management concentrates on short-term interactions with customers.

Question 53

Outsourcing is the relocation of business activities to lower-cost locations overseas.

Question 54

The managerial quality of vision is the ability to see all of the problems that might occur.

Question 55

The retirement of baby boomers CANNOT create a shortage in the Canadian workforce since students are graduating each year.

Question 56

The use of blogs as a link between companies and their customers is on the decline.

Question 57

During the next few years, the average age of the workforce is expected to increase.

Question 58

Technology can make some products obsolete.

Question 59

Skilled and knowledgeable employees are essential resources that could help an organization to create change in today's dynamic business environment.

Question 60

The need to develop environmentally friendly products and processes is becoming a major new force in business today.

Question 61

______ is essential because it serves as a primary incentive for people to start companies, expand them, and provide consistently high-quality competitive goods and services.

A) Vision
B) Profit
C) Market research
D) Philanthropy

Question 62

For a company to be successful, the vision and mission statements should align.

Question 63

A manager's only obligation is to create an environment for creativity and critical thinking. The implementation of those ideas is carried out by other departments.

Question 64

In the Canadian economy, ______ are considered the reward for the risk of entering business.

A) revenues
B) profits
C) sales
D) generated income amounts

Question 65

Force of change can only come from external sources.

Question 66

Creativity is the capacity to develop well-tested solutions to common organizational problems.

Question 67

By supporting local charities, a firm is demonstrating social responsibility.

Question 68

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 not-for-profit organizations that provide services to the public.
D) business provides goods and services necessary to an economic system.

Question 69

All of the following are businesses EXCEPT ______.

A) U.S. Postal Service
B) UPS
C) FedEx
D) AOL Time Warner

Question 70

Critical thinking is the ability to analyze and assess information to pinpoint problems and opportunities.

Question 71

Mental exercises like brainstorming often foster creativity.

Question 72

Critical thinking skills and creativity are essential qualities for today's managers.

Question 73

Decreased consumer loyalty is an example of an external force that requires change.

Question 74

Which of the following are organized for-profit and provide goods and services?

A) public schools
B) churches
C) government
D) businesses

Question 75

Business ethics deal with the right-versus-wrong actions that arise in a work environment.

Question 76

Social responsibility is another way of saying ethics.

Question 77

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

Question 78

Companies that are serious about ethical operations are likely to be socially responsible.

Question 79

All of the following are typically part of the not-for-profit sector EXCEPT ______.

A) hotels
B) political parties
C) religious organizations
D) labour unions

Question 80

The most important factor for determining whether or NOT a company is admired is profitability.