Midterm Quiz Flashcards
In the country of Narnia, all the factors of production are government owned and the government has complete control over prices and economic activity. Narnia is experiencing
Communism
The rivalry amongst McDonald’s and Wendy’s can be classified as:
Competition
An organization that strives for profit by generating goods and services is a:
Business
The Ice Cream Shoppe in downtown Vancouver has $100 left after paying all costs associated with producing and distributing its products. The $100 is:
Profit
John is an accountant for Breeze Smoothie Co. He notices the company has been failing to earn a profit and also that the smoothie industry as a whole is facing declining profits. The smoothie industry is experiencing:
Economic downturn
The main incentive in a capitalist society is:
Profit
If Disney World does not attract an adequate level of visitors post COVID-19, they may fail to meet revenue and profit goals. They are experiencing:
Risk
Emily lives in a country where her career, workplace and the goods she can purchase are controlled by the government. She feels no need to work harder or produce quality goods because there are no rewards. Emily lives in a ______ country:
Communist
In the lost city of Atlantis, all the factors of production are privately owned and the government has no hand in coordinating prices or economic activity. Atlantis is experiencing:
pure capitalism
In Canada, the government owns the communications, transportation and utilities industries, as well as provides national health care. Private enterprise dominates the business world. Canada is a _____ country:
Mixed economy
Sarah is the manager of a company whose goal is to provide relief for tsunami victims. At the company’s year end, she is pleased as she is showing income from their activities. Sarah works for a:
For-profit
rhe quantity of goods and services people can buy with the national currency exemplifies the concept of:
Standard of living
The quality of life in a country is influenced by all of the following factors except:
Life expectancy
Goods are _______ items produced by businesses, while services are _______ offerings of businesses.
Tangible; intangible
Metal, glass and plastic are some of the raw materials used to make an iPhone. In addition, the factory, labourers and design blueprints are required to form a finished product. These are considered:
Factors of production
In the restaurant industry, there are many companies and the largest rivals control only a small fraction of the industry. They engage in fierce competition by using tactics such as advertising aimed at competitors and price jockeying. The level of rivalry in the restaurant industry is _______ and the industry is highly _______:
High; fragmented
Brent’s Bakery is known as the world’s best bakery for tarts. It is also said that Brent’s Bakery holds an absolute advantage in producing its world-famous tarts. This means:
Brent’s Bakery can produce more tarts in less time than competitors
Stephanie and Katherine enjoy working outside and they both serve the same customers. They typically alternate services which include cutting grass and trimming hedges. When Stephanie cuts grass it takes her 45 minutes and when Katherine cuts grass it takes her 1 hour. When Stephanie trims the hedges it takes her 30 minutes and when Katherine trims the hedges it takes her 50 minutes. Which person has an absolute advantage in cutting grass and which person has an absolute advantage in trimming hedges?
Stephanie has an absolute advantage in providing both services
The market value of all goods and services produced in any given year is called the:
Gross domestic product
The law of supply states that suppliers will offer _______ of a product when the price ______:
More; rises
Andrew is the manager of YYZ Logistics Company. He notices a decline in client sales and therefore is hesitant to hire his usual crew of additional spring workers. YYZ Logistics Company is contributing to the:
Unemployment rate
Those who are unemployed and are actively seeking work contribute to the:
Unemployment rate
A situation where the quantity supplied exceeds the quantity demanded is a:
Surplus
If post COVID-19, production levels remain paused, unemployment remains high and people aren’t consuming at the usual level, the economy will sink into a:
Depression
_____ is the action taken by the Bank of Canada to increase or decrease the money supply and change short-term interest rates.
Monetary policy
The internal business environment covers all of the following day-to-day decisions except:
The price of their stock
Gabe is the owner of a health products store in downtown Vancouver. He figured he would sell 100 face masks in the month of June as this was usually the case for his store. However, due to COVID-19, he sold all 100 masks and had customers begging him to order more immediately. Gabe’s customers are facing:
Scarcity
Communism and socialism are ________ economies, while mixed economies and capitalism are ________ economies.
Command; market
________ are statistics which discuss economic performance three to twelve months in the future:
Leading economic indicators
Ethics, values, beliefs and lifestyles are examples of which environment?
The Socio-cultural Environment
When the government decreases the money supply and raises taxes, they are enacting ________, which means there is _______ money in the economy:
Fiscal policy, less
Until 2006, the only service legally allowed to deliver mail in the U.K. was the Royal Mail. Following 2006, any registered operator was allowed to deliver mail and plenty of competition occurred. Until 2006 the mail industry in the U.K. was a:
Monopoly
The point at which the quantity supplied meets the quantity demanded is the point of:
Equilibrium
Liam & Spencer own a business that makes outdoor furniture for customers in Canada. They are operating their business as a partnership which means they:
Have unlimited liability, have better access to talent
Mountain Shop is a new business that specializes in mountaineering equipment for high-altitude destinations. The business is owned by members who equally contribute to the capital of the business and at year-end the business will distribute any profits among its members. During tax season, this business will pay $0 in taxes why?
The business is a cooperative and does not retain any profits to tax
Cooperatives empower people to improve their quality of life and enhance their economic opportunities through self-help.
True
Carlos owns 60 shares of company XYZ. Company XYZ has sold a total of 200 shares to the public. How much of the company does Carlos own?
Carlos owns 30%
When a company wants to grow its market share in a short period of time it should:
Merge or acquire another company within its industry
Diverse talent, continuity of the business, and using personal resources to secure bank loans are all _____________ of a _____________.
Advantages; partnership
Sydney owns a business that makes custom dog collars for customers in Canada. She operates her business as a sole proprietorship which means she:
has unlimtied liability, runs day 2 day operations, and keeps all the profits
Jennifer wants to start a business selling cleaning products that are all-natural and environmentally friendly. She does not want to have unlimited liability, she wants the company to survive beyond her life, and has poor credit with the bank so she needs to find external financing. Which legal form of business should Jennifer stay away from?
Sole proprietorship
Carlos owns 80 shares of company XYZ. Company XYZ has sold a total of 500 shares to the public. How much of the company does Carlos own?
Carlos owns 16%
hen choosing the legal form of your business, you would consider:
How much it will cost to start the business and how much liability you want to take on
Double taxation as a result of operating a corporation means that:
The corporation pays the taxes on its profits and shareholders pay taxes on their dividends
Which large-scale business today is governed using a partnership model?
ben and jerrys, Deloitte, KPMG
The rationale behind growth through a merger or acquisition is that 1+1= 3.
True
A business that is democratically owned by its members and serves the sole purpose of meeting the needs of its members is known as a:
Cooperative
A cooperative must follow which of these principles when operating:
Membership is open to all people, members control the business, and all members contribute equally
Increased productivity, low inflation and increased access to information for competing countries are all benefits of:
Global trade
Car manufacturing company, Martino’s Auto, produced too many cars in 2019. The company proceeded to enter a foreign market and sell the cars for 50% less than the regular price in its home market. Their hopes are to get rid of the cars as quickly as possible. This practice is called:
Dumping
When doing business in foreign countries you should consider which of the following:
Business etiquette, Religion and business, linguistic and cultural interpretation
The protection of domestic companies and industries is a primary trait of ________. However, consumers ultimately pay the price when the cost of buying imported goods increases and their _______ _______ decreases.
Tariffs; Purchasing Power
Anti-dumping regulations are put in place to avoid:
Companies charge way less for their product than they would in other countries
Lucy and Brianna can produce clocks or mugs at any given time. Given one day of production, Lucy could produce 2 clocks or 20 mugs while Brianna could produce 5 clocks or 25 mugs. What are their opportunity costs for producing clocks?
Lucy’s opportunity cost is 10 mugs while Brianna’s opportunity cost is 5 mugs
A global consumer contains which of the following characteristics:
Consumption of global brands
Which of the following actions/policies are non-tariff barriers to trade?
import quotas, embargos, exchange controls
To avoid foreign firms taking over domestic markets by pricing their product below the cost of producing it, countries have created:
Anti-Dumping regulations
Taylor’s Textiles is a company based out of Japan that exports a significant portion of its product to the USA. The company has limits on how much they can export to the USA because the USA wants to protect domestic markets from foreign competitors. What type of barrier to trade is Taylor’s Textiles facing?
Non-Tariff Barrier
The protection of infant industries, domestic jobs and military preparedness are all arguments in favour of:
Tariffs
Lucy and Brianna can produce clocks or mugs at any given time. Given one day of production, Lucy could produce 2 clocks or 20 mugs while Brianna could produce 5 clocks or 25 mugs. Who has the larger opportunity cost in producing clocks?
Lucy has a larger opportunity cost
Brent’s Bakery is known as the world’s best bakery for tarts. It is also said that Brent’s Bakery holds a comparative advantage in producing its world-famous tarts. This means:
Brent’s Bakery can produce tarts at a lower opportunity cost than competitors
Tom’s strawberry stand has been noticing high quantities of berries left at the end of each day, causing them to go bad and be unsellable. He also notices fewer customers have been frequenting his stand. He determines the ________ of strawberries does not meet the ________:
Supply; demand
All of the following are ways to achieve product differentiation except:
Elevated price
Mallory is a blueberry farmer in Vancouver where there are many other farmers selling the same product. When she harvests her crop, she has little control over the price she sells it for as she must accept the current market price. Mallory operates in which environment
Perfect competition
Which of the following is not considered a key supplier for restaurant firms such as Tim Horton’s?
Customers who supply business
Demand can be defined as:
The quantity of a product that customers are willing to buy at a set price
An industry where there is only one producer who is able to set prices of its product or service is a:
Monopoly
Anthony works in an industry where the fixed costs are very high, the product is highly perishable and the growth rate in the industry is slow. Which of the Five Forces do these characteristics correlate with?
The competitive rivalry within an industry
Offerings that differ from the goods and services provided by the competitors in an industry but which fulfill a similar need are considered:
Substitute offerings
Which of the following is a condition in an oligopolistic market?
The cost of start-up is high and therefore the number of firms entering the industry is low
The law of supply states that suppliers will offer _______ of a product when the price ______:
More; rises
The four types of competition are:
Perfect competition, monopolistic competition, oligopoly, monopoly
Renee works for an electricity company in Montreal where there are no other companies offering electricity. The electricity company has little control over the price they charge as the price is regulated by the government. Renee’s electricity company operates in which environment?
Natural monopoly
The company Polaroid held exclusive ownership over the instant-film technology for 20 years, giving them complete control over the price of their product. Polaroid operated in which environment?
Legal monopoly
When considering the four types of market structures on a continuum, which form of competition is the furthest to the left and the furthest to the right?
Perfect competition; Pure monopoly
Attainable, time-based, relevant, specific, and measurable are all attributes of:
SMART goals
Which of the following represents a mission statement for a local bakery?
To satisfy the world’s sweet tooth.
“Bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.” – Nike. This is an example of a:
Mission statement
A manager has decided to change the operations software that is used to catalog operations data and organize it for uses such as planning and controlling. The manager scheduled a meeting with the software team to discuss the impacts of this change. After this meeting, the manager decided to abandon the shift due to potential integration errors. The manager in this scenario was using what type of leadership style
Democratic
Susan has decided to develop a SMART goal in relation to the growth of her local company. She has decided that her goal is to raise the engagement on her business Instagram account by 20% in three months by posting more content. Is her goal SMART?
Yes
Kayla’s Klothes is a large scale manufacturing company that sells kids fashion across Canada. The company is divided into the following departments; marketing, finance, internal controls, manufacturing, human resources, and legal. What type of departmentalization is this?
Functional
Which of the following is something a manager can do to manage their time better?
Eliminate unnecessary paperwork, delegate tasks, and prioritize
The grouping of people, resources, and tasks into organizational units is called:
Departmentalization
Fundamental beliefs about what’s important and what is and isn’t appropriate in conducting company activities are known as
Core values
A company’s _________ __________ should be reflected through the __________ __________.
Core values; organizational culture
Liam’s Barber Shop is a local barber shop that is very popular for haircuts and facial hair grooming. Liam is looking at growing the business and purchasing another barber shop in the next town over. Liam needs to know if there is a wide enough consumer base for him to successfully run the barber shop and if his financial systems can integrate another business into their reporting. Liam should:
Conduct a SWOT analysis
Which of the following is NOT a way to conduct benchmarking for a company?
Calling competitors to release information on their operations for comparison.
Which of the following represents a mission statement for an animal shelter?
To connect people with their new best friend.
A manager has decided to change the operations software that is used to catalog operations data and organize it for uses such as planning and controlling. The software team was unaware of this change and are unable to effectively integrate this new software with existing data. The manager in this scenario was using what type of leadership style?
Autocratic
What structure would a company choose if they wanted to group employees by function, products, or regions?
traditional structure
Contemporary and team based structures are more flexible and assemble employees to respond quickly to dynamic business environments
True
Which type of organizational structure has direct lines of communication and authority flowing from top margin downward
Straight line
Companys X’s mission is to serve every customer effectively while minimizing their carbon footprint. To support its mission statement and company processes it lists leadership and diversity as its
core values
A system of shared assumptions, values, and beliefs that show employees what is appropriate and inappropriate behaviour is known as
Organizational culture
Comapny abc produces frozen dessert bars. They advertise the bars as having an anti-slip handle which would be considered as
Feature
Choose the correct hierarchy of the titles below
Grovenor, director, supervisor
Sarah has decided to develop a smart goal in relation to the growth of her local company. She has decided that her goal is to attain 10,000 new customers in 1 month using her business ig accounting. is her goal smart
No
The management process includes
planning, leading, controlling
In terms of an organizations vision, railroads may have lost business because they
defined their business too narrowly
Today’s visionary’s organization uses key elements 1. ____ and 2 set a direction using 3. the strategies that enable it to develop and market its offerings successfully
Establish a foundation
If ben and jerrys ice cream has a goal of investing 2 percent of their after tax profits in charitable contributions that goal
helps assess performance
Emily runs abakery from home with friends. they specialize in cakes and pastries. Legally her friends are recognized as employees as she pays them hourly. In total she has four employees ISED would classify this bakery as
Micro-entreprise
Brenda owns a consulting business in ottawa. her firm specializes in helping either companies function more efficiently. currently, 137 employees word for brands consulting firm and she is looking to expand the team over the next year. You an classify her business as
Medium sized
____ are shorter term performance targets, while____ are accomplishments companies wish to achieve over a longer period of time
objectives; goals
A software at company xyz has decided to change the operations software that is used to catalog operation data and organize it for uses such planning and controlling. The manner was notified of this charge and has allowed the software team to choose an appropriate software that suits the companies needs. the manager in this scenario was using what type of leadership process
Free- rein
What skill is most important for a manager to have
no skill is more important than another
Consider a coffee maker: if the coffee maker can make coffee faster than any other coffee maker n the market, then saving time would be considered a
The benefit of the product
Kayla owns a business that makes custom dog collars for customers in Canada. She has two employees that work with her and she operates the business as a sole proprietorship. in 2018, kayla failed to pay her employment taxes to the government. Is she personally liable for the money owned?
yes
Which of the following way can benchmarking be conducted for a company
monitor public information (annual reports), engage in direct comparison with a company in another industry with similar functions and enter a benchmarking consortium to gain access to data from direct competitors
A ____ is a physical or tangible component that enhances the value of a product or service, while a ___ is the advantage the consumer gains in order to accomplish their goal
Feature; benefit
Jennifer wants to start selling cleaning products that are all natural environmentally friendly. She expects profit to be low in her first year and has good credit to obtain a loan. She is very educated in different areas of the industry such as manufacturing, chemistry, and distribution. jennifer should set her business up as a
Sole prorpetishop
When choosing the legal form of your business, you would not consider
What product you want to produce
Unlimtied liability, limited talent and financing the business with your own resources are all ___ of a ____
Disadvantages; sole proprietorship
What of the following is a scenario of non-tarriff barriers to trade?
A textile can only import 30% of its raw materials, the rest must be purchased from domestic companies
Which of the following scenarios is a tariff barrier
A technology firm is banned from exporting software to foreign nations
Consumers who purchase goods and services from brands such as nike, Starbucks, spotifym and general motors known as
global consumers
Which of the following are considered as exit barriers within an industry
emotional barriers, desrie to recoup start up costs, bad publicity
Great value electronics is a company that purchases electronics from other supply companies. they are looking to enter into the production side of the electronics industry to expand their business. great value is using which type of business strategy
Backward vertical intregration
Arman works in an industry where comptitors do not engage in bigger rivalry and price wars was avoided. an analysis of these factors reveals that profit margins within the industry are low
False
The identification of how value is added through the creation of the final product on service and how each operation activity contributes to the final sale prices of the good or service is known as
Value chain
Which of the following is not considered a new entraint into an indiustry
Existing firms who open new locations
In order to remain competitive in todays business environment, manufactures must do all of the following expect
reduce quality to lower costs
Mason is the owners of ral and co t shirt manufacturing company in Minnesota. The product life cycle of his cotton t-shirts can be defined s
ordering, distributing and manufacturing
The Us economy leans closer to the ____ model while Canada economy combines elements of both cpatialism and ___ thanks to national health care
Capitlaism;socialism
Farbric, thread, and ink are some of the raw materials used to make a t-shirt, in addition, the factory labourers and design blueprints are required to format finished product. this finished product will be counted in the
gdp
In the year 2021, the government inthe country of neverland took in more money through taxes than it spent on goods and services such as transportation, national defense and social services neverland has a
budget suprlus
In the lost city of Atlantis, business is booming. The economy expanded unemployment is low and citizens have more money to spend on goods. Companies notice this and respond by designing new and better products. Atalisti is expercing
Economic prosperity
In each naton ____ is the biggest difference amongst economic systems
Who controls the factors of production
In brazil, a canadian company produces soccer balls. the design , material, and labourers are all Canadian. Will the soccer be counted in gdp
no because they produced internationally
During the recovery stage, demand for goods and services being to ___ the unemployment rate___ and the GDP start to
Rise; fall fall
