Question 1

Canada's R&D expenditures (as a percent of GDP)lag behind those of the U.S.because many Canadian businesses are subsidiaries of large U.S.companies,and those companies carry out their R&D in the United States.

Accepted Answer

This statement is true. Many Canadian businesses are subsidiaries of large U.S. companies, and those companies often carry out their R&D in the United States, which results in Canada's R&D expenditures lagging behind those of the U.S.

Question 2

Customer preferences must be taken into consideration across national boundaries,but not generally within the same country.

Accepted Answer

Customer preferences can vary even within the same country based on factors such as region, culture, age, and socioeconomic status. It is important to consider these differences in order to effectively market products and services to a diverse customer base.

Question 3

Khalid is a research chemist who is continually experimenting with how chemical compounds behave.He knows that his activity might or might not result in a marketable product.Kahlid is engaged in pure research.

Accepted Answer

Pure research is conducted solely for the purpose of gaining knowledge or understanding, without any practical application or commercial goal in mind. Khalid's focus on exploring chemical properties and behaviors without a specific marketable outcome indicates that he is engaged in pure research.

Question 4

Whiskey,vodka,gin,and cigarettes are less commonly used today than they were just a few years ago.

Accepted Answer

This statement is true. In recent years, there has been a decrease in the consumption of alcohol and tobacco products due to increased awareness about health risks and lifestyle changes.

Question 5

Enterprise Resource Planning is an example of a process technology.

Accepted Answer

Enterprise Resource Planning (ERP) is a process technology that integrates and manages various departments and functions within an organization through a centralized database. It streamlines business processes, improves communication, reduces costs, and enhances decision-making capabilities.

Question 6

In Canada,the private sector accounts for more than half of all R&D expenditures.

Accepted Answer

This statement is true. According to Statistics Canada, in 2018, the private sector accounted for 55.1% of total R&D expenditures in the country.

Question 7

Generally speaking,fiscal policy is more effective than monetary policy.

Accepted Answer

Fiscal policy and monetary policy have different strengths and effectiveness depending on the economic context. Fiscal policy can be more direct in stimulating demand, but monetary policy can be more flexible and quicker to implement. The effectiveness of each depends on the specific economic situation.

Question 8

Although many people associate technology with manufacturing,it is also a significant force in the service sector.

Accepted Answer

Technology has transformed how services are provided in various industries including healthcare, finance, education, and transportation. From online banking to telemedicine, technology is a major driver of innovation and efficiency in the service sector.

Question 9

Stability,as an economic goal,is a condition in which there is a balance between money available and goods produced.

Accepted Answer

Stability in economics refers to a situation where there is a balance between the supply of money and the production of goods, preventing inflation or deflation.

Question 10

Political stability is an important factor in international firms because no business wants to set up shop in another country unless trade relationships with that country are well defined and stable.

Accepted Answer

Political stability is indeed an important factor in international firms because it provides a favorable business environment, allowing companies to make long-term investment plans and engage in international trade relationships with confidence. If political instability and uncertainty exist, businesses may face unforeseen risks, such as changes in regulations, economic turmoil, or even violence, that can jeopardize their investments and operations. Therefore, international firms need to assess the political climate of a country and its potential impact on their business before deciding to expand overseas.

Question 11

Technology transfer is more important than R&D intensity.

Accepted Answer

Both technology transfer and R&D intensity are important for innovation and economic growth, but their importance can vary depending on the context and specific goals of an organization or economy.

Question 12

R&D intensity refers to R&D spending as a percentage of a company's sales revenue.

Accepted Answer

R&D intensity is calculated by dividing the company's R&D expenditure by its total sales revenue and multiplying by 100.

Question 13

Cycle time is the time,from beginning to end,that it takes a firm to accomplish some recurring activity or function.

Accepted Answer

Cycle time is indeed defined as the time it takes for a firm to complete a recurring activity or process from start to finish.

Question 14

Socio-cultural factors influence the way workers in a society feel about their jobs; the job can have meaningful social significance or it can simply be a means to an end.

Accepted Answer

Socio-cultural factors, such as values, beliefs, and norms within a society, impact how individuals perceive and value their jobs. Depending on these factors, workers might view their job as having important social significance or as simply a means to earn a living.

Question 15

Businesses have found that they can be more competitive if they are able to increase cycle times.

Accepted Answer

Increasing cycle times generally means taking longer to complete a process, which can reduce competitiveness by delaying product delivery and increasing costs. Reducing cycle times is typically the goal to enhance competitiveness.

Question 16

Canada's R&D expenditures are much smaller than those of the U.S.in total dollar terms,but when measured as a percent of GDP,Canada's R&D expenditures exceed those in the U.S.

Accepted Answer

Canada's R&D expenditures are smaller than those of the U.S. both in total dollar terms and as a percentage of GDP. The U.S. invests a larger share of its GDP in R&D compared to Canada.

Question 17

Company-wide processes,such as materials management,production planning,order management,and financial reporting,can all be managed by enterprise resource planning.

Accepted Answer

Enterprise resource planning (ERP) is a software system that allows organizations to manage their business processes. It includes modules for materials management, production planning, order management, financial reporting, and more. ERP can be used to manage company-wide processes and integrate different parts of the organization, resulting in increased efficiency and better decision-making. Therefore, the statement is true.

Question 18

Product life cycles are somewhat longer than they were 20 years ago because products have become more complex.

Accepted Answer

Product life cycles have generally become shorter due to rapid technological advancements and increased competition, despite the complexity of products.

Question 19

R&D spending in Canada in 2010 totalled about $15 billion.

Accepted Answer

According to the 2010 estimates by Statistics Canada, R&D spending in Canada was $15.6 billion.

Question 20

A product such as bicycles can be marketed in much the same way in Canada and China.

Accepted Answer

While bicycles may be a popular mode of transportation in both Canada and China, the marketing strategies and cultural preferences in each country can be vastly different. For example, the messaging and branding that resonates with Canadian consumers may not be as effective for Chinese consumers, who may place more emphasis on affordability or technological features. Additionally, differences in language and media channels can also impact marketing tactics.

Quiz 2: Understanding the Environments of Business