Question 1

The concept of "100 % Capacity" can be applied to most businesses.

Accepted Answer

The concept of 100% Capacity can be applied to most businesses, as it refers to utilizing all resources and facilities to their fullest potential to achieve maximum productivity and efficiency. This can be achieved through various methods such as time management, process optimization, and continuous improvement.

Question 2

Which of the following is not a stage in the business life cycle:
A)introduction.
B)growth.
C)maturity.
D)decline.

Accepted Answer

A

Question 3

When a business is operating at a small percentage of its capacity, the strategy should be to:
A)increase capacity.
B)increase sales.
C)reduce promotion.
D)all of the above.

Accepted Answer

When a business is operating at a small percentage of its capacity, the best strategy is to increase sales. This will help to utilize the existing capacity and generate more revenue. Increasing capacity may not be cost-effective at this stage, and reducing promotion would only diminish the chances of increasing sales. Therefore, the best and logical choice is to focus on increasing sales.

Question 4

As a business grows, there tends to be a shift from equity capital to debt capital.

Accepted Answer

The answer of As a business grows, there tends to...

Question 5

Which of the following is not an indicator of the need for renewal:
A)declining sales and profits.
B)declining market share.
C)declining employee turnover.
D)None of the above are indicators.

Accepted Answer

Declining employee turnover is actually a positive indicator for a company, as it suggests that employees are satisfied and are not leaving the company. The other options (A and B) are both indicators of declining performance and the need for renewal. Option D is also not correct, as declining performance in any area of the business is typically a sign that renewal is necessary.

Question 6

"Going public" is the most common way for a small business to acquire growth capital.

Accepted Answer

Going public, or conducting an initial public offering (IPO), is a relatively rare and costly way for small businesses to raise growth capital. Other common methods include private equity financing, loans, and crowdfunding.

Question 7

The biggest trading partner of the U.S.(volume of trade) is Japan.

Accepted Answer

As of the latest data, China is the largest trading partner of the U.S. in terms of trade volume, followed by Canada and Mexico. Japan is a significant partner but not the largest.

Question 8

EDC stands for:
A)External Distribution Control.
B)Economic Development Corporation.
C)Export Development Canada.
D)Environmental Disaster Control.

Accepted Answer

EDC stands for Export Development Canada, which is a Canadian Crown corporation that provides financing and insurance solutions to Canadian companies doing business abroad.

Question 9

Features of both debt and equity financing are found in "subordinate financing".

Accepted Answer

Subordinate financing refers to a type of financing where the financing provider (lender/investor) agrees to be subordinate to other creditors/investors in terms of priority of payment, but may also have both debt and equity-like features in terms of interest payments and potential share in ownership/profits.

Question 10

SWOT analysis examines:
A)the situation, the work, the organization, the tactics.
B)internal and external advantages and disadvantages of a business.
C)the predictions of the Conference Board of Canada.
D)the ethical issues of conducting business.

Accepted Answer

SWOT analysis examines the internal and external advantages and disadvantages of a business, including strengths, weaknesses, opportunities, and threats. It is a strategic planning tool that helps businesses identify areas for improvement and potential risks in order to make informed decisions. The other options do not accurately describe what SWOT analysis examines.

Question 11

Multinational corporations tend to:
A)come in large and small sizes.
B)have supply sources in a single country.
C)conduct marketing on an international basis.
D)all of the above.

Accepted Answer

Multinational corporations conduct marketing on an international basis, which means they operate in more than one country. While some may come in large and small sizes, this is not a defining characteristic, and it is unlikely that any corporation sources all their supplies from a single country. Thus, choice C is the only valid option.

Question 12

The biggest trading partner (volume of trade) of Canada is the U.S.

Accepted Answer

According to data from 2019, the United States is Canada's largest trading partner, accounting for 75.9% of all Canadian exports and 50.7% of all Canadian imports.

Question 13

Predatory pricing is an aggressive, but perfectly legal activity.

Accepted Answer

Predatory pricing is considered an anti-competitive practice in many jurisdictions and is illegal under competition laws, as it aims to eliminate or deter competition.

Question 14

Compared to building your own chain of company-owned stores, selling franchises is:
A)faster.
B)more expensive.
C)legally simpler.
D)all of the above.

Accepted Answer

Selling franchises is generally faster than building your own chain of company-owned stores because you are essentially allowing someone else to use your business model and brand recognition in exchange for a fee. The franchisee is responsible for setting up and operating their own store, which can save the franchisor time and effort.

Answer: C 
 Selling franchises can be legally simpler than building your own chain of company-owned stores because there are fewer legal and regulatory requirements. However, it's still important to comply with franchise laws and regulations to avoid legal issues.

Therefore, the correct answer is:

Answer: A, C

Question 15

Market potential is made up of your market share plus the market share of all your competitors.

Accepted Answer

Market potential refers to the entire size of the market for a product or service, which includes the market share of all existing competitors plus any potential market share that could be captured by new entrants.

Question 16

Mexico is a partner in NAFTA.

Accepted Answer

Mexico is one of the three partners in the North American Free Trade Agreement (NAFTA) along with the United States and Canada.

Question 17

The amount of time it takes to recoup the amount of an investment is called the:
A)project R.O.I.
B)future value.
C)payback period.
D)return interval.

Accepted Answer

The amount of time it takes to recoup the amount of an investment is called the payback period. This is the most relevant answer as it directly answers the question. Option A, project R.O.I. (Return on Investment), may be an important metric when considering the profitability of an investment, but it is not specifically related to the time it takes to recoup the initial investment. Option B, future value, refers to the expected value of an investment at a specified time in the future and does not provide information on when the initial investment will be repaid. Option D, return interval, is not a commonly used financial term and is not related to the time it takes to recoup an investment.

Question 18

The growth stage of the business cycle is characterized by:
A)increasing revenue.
B)increasing profits.
C)declining risk of failure.
D)all of the above.

Accepted Answer

The growth stage is characterized by all of the above. Increasing revenue and profits are typical hallmarks of the growth stage as the business expands and gains more customers. The risk of failure may decline as the business becomes more established and successful, but it is still present as the company continues to face competition and challenges.

Question 19

Identify the stages of the business cycle and list one or two characteristics of each stage.

Accepted Answer

The answer of Identify the stages of the business cycle...

Question 20

It is possible to have increasing sales while the market potential is shrinking.

Accepted Answer

It is possible for a company to increase their market share and capture a larger portion of the shrinking market. This can occur through better marketing strategies, more efficient operations, or superior product offerings.

Quiz 10: Managing for Growth: How Can I Expand My Business

The concept of "100 % Capacity" can be applied to most businesses.

Which of the following is not a stage in the business life cycle:

When a business is operating at a small percentage of its capacity, the strategy should be to:

As a business grows, there tends to be a shift from equity capital to debt capital.

Which of the following is not an indicator of the need for renewal:

"Going public" is the most common way for a small business to acquire growth capital.

The biggest trading partner of the U.S.(volume of trade) is Japan.

EDC stands for:

Features of both debt and equity financing are found in "subordinate financing".

SWOT analysis examines:

Multinational corporations tend to:

The biggest trading partner (volume of trade) of Canada is the U.S.

Predatory pricing is an aggressive, but perfectly legal activity.

Compared to building your own chain of company-owned stores, selling franchises is:

Market potential is made up of your market share plus the market share of all your competitors.

Mexico is a partner in NAFTA.

The amount of time it takes to recoup the amount of an investment is called the:

The growth stage of the business cycle is characterized by:

Identify the stages of the business cycle and list one or two characteristics of each stage.

It is possible to have increasing sales while the market potential is shrinking.