Question 1

Tariq has just received a grant from the government to open a printing shop in his community. He will be leasing computers, copiers, scanners, and printers. What do these items represent his need for?
A) capital
B) human resources
C) natural resources
D) value

Accepted Answer

Tariq's need for computers, copiers, scanners, and printers represent his need for capital, which refers to the money and resources necessary to start and operate a business.

Question 2

Your university has contracted with a construction company to build a new bookstore; in doing so, the contractor will use heavy machinery and equipment. How are these items classified?
A) human resources
B) current resources
C) natural resources
D) capital

Accepted Answer

Heavy machinery and equipment are considered capital because they are long-term assets used to generate income for the university over an extended period.

Question 3

What is the likely result of too much taxation, an overuse of regulation, and limited choices in the broader business environment?
A) an increase in global trade
B) an increase in entrepreneurship
C) a decrease in entrepreneurial activities
D) a social crisis

Accepted Answer

Too much taxation, an overuse of regulation, and limited choices in the broader business environment can create a burdensome environment for entrepreneurs. It can discourage entrepreneurial activities, leading to a decrease in the number of startups and the overall entrepreneurial ecosystem.

Question 4

Which of the following is the best example of a natural resource?
A) entrepreneurship
B) the effort supplied by an assembly line worker
C) silver
D) corn grown on a farm

Accepted Answer

Natural resources are materials or substances that occur in nature and can be used for economic gain. Silver is a naturally occurring mineral, making it a natural resource.

Question 5

Which of the following is a benefit a company would receive by investing in employee satisfaction?
A) increased positive memories when employees retire
B) fewer employees needed to do the same amount of work
C) increased tangible bottom-line results
D) decreased bottom-line results due to investment expense

Accepted Answer

Investing in employee satisfaction can lead to increased productivity, engagement, and retention, which can ultimately result in tangible bottom-line results for the company, such as increased revenue and decreased costs.

Answer: A and B 
 While increasing positive memories and requiring fewer employees are potential benefits of investing in employee satisfaction, they may not directly contribute to tangible bottom-line results for the company. Therefore, they are not the best choice for this question, but they can still be considered valid benefits of investing in employee satisfaction.

Question 6

How do enforceable contracts help to keep the Canadian economy relatively strong?
A) They reduce the risk of running a business.
B) They are enforceable in most business in most countries.
C) The government receives taxes for every contract that is written.
D) They are ethical and most companies will abide by them.

Accepted Answer

Enforceable contracts reduce the risk of running a business, which encourages investments and economic growth. It ensures that parties in a transaction fulfill their obligations, increasing the confidence of businesses and investors to enter into agreements. As a result, enforceable contracts promote a stable and predictable business environment, which is vital for the growth and development of the Canadian economy. The other choices (B, C, and D) are incorrect as they do not directly explain how enforceable contracts contribute to keeping the Canadian economy strong.

Question 7

Which of the following is the best measure of product's value to the customer?
A) the number of product benefits
B) whether or not the customer returns to purchase another product
C) the size of the gap between the price paid and competitors prices
D) the size of the gap between product benefits and price

Accepted Answer

The size of the gap between product benefits and price is the best measure of a product's value to the customer because it takes into account both what the customer is getting (product benefits) and what the customer is giving up (price). A large gap between the two indicates that the customer is receiving more value than what they are paying for, therefore making it a valuable product to them. The other options (A, B, C) are not as strong indicators of a product's value because they do not necessarily reflect the balance between benefits and price.

Question 8

What would timber, water, coal deposits, and solar energy be classified as?
A) non-economic factors
B) natural resources
C) pure capital
D) base inputs

Accepted Answer

Timber, water, coal deposits, and solar energy are all examples of natural resources. They are resources that occur naturally in the environment and can be used to generate economic value.

Question 9

What would we call the bilingual workers a business hires to staff its sales and technical help positions?
A) natural resources
B) technological resources
C) entrepreneurial resources
D) human resources

Accepted Answer

Bilingual workers hired to staff sales and technical help positions would be considered part of a company's human resources, which refers to the employees of a business.

Question 10

Entrepreneurs need economic freedom to thrive. What does this freedom include?
A) freedom to make money, freedom from taxation, and freedom from regulation
B) freedom to make money, freedom to hire people, and freedom from taxation
C) freedom of choice, freedom from excess regulation, and freedom from too much taxation
D) freedom to hire people, freedom to compete, and freedom from all regulation

Accepted Answer

Economic freedom for entrepreneurs includes the freedom of choice to pursue business opportunities, freedom from excess regulation, and freedom from excessive taxation. This allows entrepreneurs to innovate, take risks, and create jobs, which ultimately benefits the economy as a whole. While some regulation and taxation are necessary for a functioning society, excessive regulation and taxation can hinder entrepreneurship and stifle economic growth. The freedom to hire people and compete are also important, but they are not the only aspects of economic freedom that entrepreneurs need to thrive.

Question 11

Sabiha will be opening a catering business in Canada soon, but she still needs to hire a few more employees to fill the schedule. Which of the following economic freedoms does she enjoy?
A) She can hire whom she chooses.
B) She will hire only those employing natural resources.
C) She can only hire whom the federal government says she can hire.
D) She will be given her labour force once she pays her business taxes.

Accepted Answer

Sabiha enjoys the economic freedom to hire whom she chooses for her catering business. In a market economy, businesses have the liberty to make independent decisions in regards to hiring practices as long as they meet regulations and laws set by the government.

Question 12

Children's Campground is a summer program for school-age children. It advertises that there is one counsellor for every four children and that several other highly trained professionals are on staff. Its advertisements indicate that Children's Campground relies heavily on what factor of production?
A) entrepreneurship
B) human resources
C) natural resources
D) capital

Accepted Answer

Children's Campground relies heavily on human resources, specifically the counsellors and other highly trained professionals, to provide the summer program for school-age children.

Question 13

Capital is considered one of the factors of production. What does capital include?
A) machines, money, tools, and buildings
B) money, land, labour, and entrepreneurship
C) machines, tools, buildings, information, and technology
D) an entrepreneur's freedoms

Accepted Answer

Capital includes all physical and non-physical assets used in the production process, such as machines, tools, buildings, information, and technology. Money and land are considered financial and natural resources, respectively, while entrepreneurship refers to the human factor in the production process. An entrepreneur's freedoms are not considered capital.

Question 14

Samuel lives in a community where many residents are retirees. He wants to open an exercise facility specifically for active senior citizens aged 65 and older. Samuel knows that starting a new business will require a lot of work and entails risk, but given the large number of senior citizens in the area, he believes he should be able to sell enough memberships to realize a profit. What is Samuel an example of?
A) demographer
B) capital provider
C) entrepreneur
D) corporate manager

Accepted Answer

Samuel is an entrepreneur, as he is starting a new business venture with the hope of turning a profit.

Question 15

For fast-moving companies, what can the technological environment represent?
A) major threats
B) a rich source of competitive advantage
C) lower efficiency and effectiveness
D) employee resistance to change

Accepted Answer

The technological environment can represent a rich source of competitive advantage for fast-moving companies, as they can leverage technology to innovate, streamline processes, and offer new products and services to customers faster than their competitors. While there may be some threats and challenges associated with technology, it ultimately presents a significant opportunity for companies that can adapt quickly and effectively. Lower efficiency and effectiveness, as well as employee resistance, are not necessarily inherent characteristics of the technological environment, but rather potential outcomes if companies do not effectively manage their technology adoption and implementation.

Question 16

John Blue has started his own Internet business, Blueways.com, offering online ordering of refurbished computer parts. His business has experienced a slower-than-usual start, due to higher-than-expected costs for capital resources. Which expenses are most likely involved?
A) buildings, money, and skilled labour
B) raw materials, money, and employee training
C) computers, cables, Internet router, copiers, and software
D) advertising and financial costs

Accepted Answer

Capital resources typically include physical assets like computers, cables, Internet routers, copiers, and software, which are necessary for running an online business.

Question 17

If you've browsed seller reviews on eBay or received shopping recommendations from Amazon, which of the following have you experienced?
A) the ecommerce consumer sales process
B) how suppliers communicate with each other
C) how personal Web marketing can feel
D) the e-commerce business-to-business sales process

Accepted Answer

Browsing seller reviews on eBay and receiving shopping recommendations from Amazon are examples of personalized marketing efforts aimed at consumers, demonstrating how tailored and individualized web marketing can be.

Question 18

Which of the following is the best example of capital as a factor of production?
A) a tractor
B) sunlight
C) corporate bonds
D) cash

Accepted Answer

Capital as a factor of production refers to man-made resources used in the production of goods and services. A tractor is a good example of capital because it is a machine used in agriculture for the production of crops. Sunlight, corporate bonds, and cash are not examples of capital because they are not man-made resources used in production.

Question 19

Which factor of production contributes most to creating wealth?
A) natural resources
B) entrepreneurship
C) human resources
D) capital

Accepted Answer

While each factor of production plays an important role in creating wealth, entrepreneurship is the factor that drives innovation and creates new opportunities. Entrepreneurs bring together natural resources, capital, and human resources to create new products and services, generate employment, and stimulate economic growth. Additionally, entrepreneurship often leads to the development of new technologies and industries, further contributing to economic progress.

Question 20

Janet owns a modern 250-hectare farm that grows corn and soybeans. Which factors of production will Janet need to employ to produce her crops?
A) natural resources, human resources, and entrepreneurship
B) fertilizer, human resources, and capital
C) water, entrepreneurship, and seeds
D) labour, money, and bank loans

Accepted Answer

Janet will need natural resources such as land, water, and sunlight to grow her crops. She will also need human resources in the form of labor to plant, tend, and harvest the crops. Finally, she will need entrepreneurship skills to manage the farm and make decisions on how to allocate resources.

Quiz 1: Business Now: Change Is the Only Constant

Tariq has just received a grant from the government to open a printing shop in his community. He will be leasing computers, copiers, scanners, and printers. What do these items represent his need for?

Your university has contracted with a construction company to build a new bookstore; in doing so, the contractor will use heavy machinery and equipment. How are these items classified?

What is the likely result of too much taxation, an overuse of regulation, and limited choices in the broader business environment?

Which of the following is the best example of a natural resource?

Which of the following is a benefit a company would receive by investing in employee satisfaction?

How do enforceable contracts help to keep the Canadian economy relatively strong?

Which of the following is the best measure of product's value to the customer?

What would timber, water, coal deposits, and solar energy be classified as?

What would we call the bilingual workers a business hires to staff its sales and technical help positions?

Entrepreneurs need economic freedom to thrive. What does this freedom include?

Sabiha will be opening a catering business in Canada soon, but she still needs to hire a few more employees to fill the schedule. Which of the following economic freedoms does she enjoy?

Children's Campground is a summer program for school-age children. It advertises that there is one counsellor for every four children and that several other highly trained professionals are on staff. Its advertisements indicate that Children's Campground relies heavily on what factor of production?

Capital is considered one of the factors of production. What does capital include?

For fast-moving companies, what can the technological environment represent?

John Blue has started his own Internet business, Blueways.com, offering online ordering of refurbished computer parts. His business has experienced a slower-than-usual start, due to higher-than-expected costs for capital resources. Which expenses are most likely involved?

If you've browsed seller reviews on eBay or received shopping recommendations from Amazon, which of the following have you experienced?

Which of the following is the best example of capital as a factor of production?

Which factor of production contributes most to creating wealth?

Janet owns a modern 250-hectare farm that grows corn and soybeans. Which factors of production will Janet need to employ to produce her crops?