REVIEW Q

1. ________ are typically owned by many individuals and organizations who own shares of the business, called

stock.

 General partnerships

 Limited partnerships

 Sole proprietorships

 Corporations CORRECT

 Franchises

Corporations are typically owned by many individuals and organizations who own shares of the business, called

stock (thus, corporate owners are often called shareholders or stockholders).

2. Being profitable relates to which social responsibility dimension?

 Economic CORRECT

 Voluntary

 Ethical

 Legal

 Corporate citizenship

Economic responsibility refers to earning a profit which is the foundation of a company.

3. In creating a corporation, once the articles of incorporation are filed with the appropriate provincial or federal

office, the provincial or federal government may then issue a:

 corporate chapter.

 corporate contract.

 certificate of incorporation. CORRECT

 corporate collaboration.

 corporate commentary.

The federal or provincial government issues a certificate of incorporation to the company based on the

information in the articles of incorporation.

4. What is true of misusing company time?

 Theft of time is not a common area of misconduct observed in the workplace.

 Time theft costs can be difficult to measure but are estimated to cost companies hundreds of billions of

dollars annually. CORRECT

 The average employee "steals" 10 hours a week with late arrivals, leaving early, and long lunch breaks.

 The average employee doesn't misuse company time often enough to negatively affect productivity.

 Time theft costs are easy to measure and do not cost companies very much money.

Theft of time is a common area of misconduct observed in the workplace. Time theft costs can be difficult to

measure but are estimated to cost companies hundreds of billions of dollars annually. The average employee

steals 4.5 hours a week with late arrivals, leaving early, long lunch breaks, inappropriate sick days, excessive

socializing, and engaging in personal activities. These activities add up to lost productivity and profits.

5. Which statement is true of business ethics?

 Ethical issues are not limited to for-profit organizations. CORRECT

 Business ethics does not extend beyond legal issues.

 Ethical conduct does not have any impact on business relationships.

 Ethical conflicts do not evolve into legal disputes.

 Ethical issues are not affected by social perceptions.

Ethical issues are not limited to for-profit organizations; they include all areas of organizational activities. Whether

made in science, politics, sports, or business, most decisions are judged as right or wrong, ethical or unethical.

6. _______ emerged as a major issue in the 20th century in the face of increasing evidence that pollution,

uncontrolled use of natural resources, and population growth were putting increasing pressure on the long-

term sustainability of these resources.

 Ethnic cleansing

 Environmental protection CORRECT

 Global marketing

 Consumerism

 Whistleblowing

Environmental protection emerged as a major issue in the 20th century in the face of increasing evidence that

pollution, uncontrolled use of natural resources, and population growth were putting increasing pressure on the

long-term sustainability of these resources.

7. The early economy of Canada was marked by settlers who operated a society primarily based on:

 manufacturing.

 technology.

 sweatshops.

 information.
 agriculture. CORRECT

Abundant natural resources nourished industries such as farming, fishing, shipping, and the fur trade.

8. Which form of business organization is used the least in Canada?

 Public corporation

 Franchise

 Sole proprietorship

 Multi-national corporation

 Partnership CORRECT

Partnerships are the least used form of business organization in Canada.

9. he functions of organizing, staffing, planning, and controlling are most closely associated with:

 employees

 customers

 managers CORRECT

 stockholders

 accountants

Managers plan, organize, staff, and control the tasks required to carry out the work of the company or non-profit

organization.

10. Which competitive environment best describes the market for wheat, corn, and cotton?

 Monopoly

 Monopolistic competition
 Pure competition CORRECT

 Oligopoly

 Pure capitalism

Agricultural commodities trade in a market characterized by pure competition as no single business can influence

the price and there is no difference between the commodities offered. Prices are, therefore, determined only by

supply and demand.

11. Which of the following is a disadvantage of a partnership?

 Difficulty of selling ownership CORRECT

 Ease of organizing business

 Specialization of partners

 Relatively fast decision making

 Limited government regulation

The disadvantages of a partnership are unlimited liability, all partners are responsible for the business actions of

others, the partnership is terminated if one partner dies or withdraws, the distribution of profits, and the limited

sources of funding.

12. Which of the following is an advantage of a partnership?

 Unlimited liability

 Life of partnership

 Selling a partnership

 Limited funding sources

 Ease of organization CORRECT

13. What is associated with a hostile workplace when a person or group is targeted and is threatened, harassed,

belittled, verbally abused, or overly criticized?

 conflict of interest

 bribery

 treachery

 treason

 bullying CORRECT

Bullying is associated with a hostile workplace when a person or group is targeted and is threatened, harassed,

belittled, verbally abused, or overly criticized. Bullying may create what some consider a hostile environment, a

term generally associated with sexual harassment.

14. Which of the following is not an area of environmental concern in society today?

 Animal rights.

 Land pollution.

 Waste disposal.

 Donations to local charitable organizations. CORRECT

 Business practices that harm endangered wildlife.

Donations to local and national charitable organizations are an example of community relations in society today.

15. ________ involves the interaction among nature and individuals, organizations, and business strategies and

includes the assessment and improvement of business strategies, economic sectors, work practices,

technologies, and lifestyles, so that they maintain the health of the natural environment.
 Philanthropy

 Consumerism

 Sustainability CORRECT

 Biodiversity

 Dualism

Sustainability refers to the process of conducting activities in such a way as to provide for the long-term well-being

of the natural environment, including all biological entities. Hence, it involves the interaction among nature and

individuals, organizations, and business strategies and includes the assessment and improvement of business

strategies, economic sectors, work practices, technologies, and lifestyles, so that they maintain the health of the

natural environment.

16. The income earned by sole proprietorships is:

 taxed twice.

 not taxable.

 taxed as personal income. CORRECT

 too high.

 audited less often than others.

Profits from the sole proprietorship are considered personal income to the sole proprietor and are taxed at

individual tax rates.

17. Among the major activities of business, which of the following is an element of management?

 obtain financing

 conduct product research

 engage in personal selling

 promote sales

 acquire resources CORRECT

Management is concerned with acquiring, developing, and using resources (including people) effectively and

efficiently. It also involves coordinating employees' actions to achieve the firm's goals, organizing people to work

efficiently, and motivating them to achieve the business's goals.

18. When two companies combine to form a new company, it is called a(n):

 merger. CORRECT

 acquisition.

 tender offer.

 leveraged buyout.

A merger occurs when two companies, usually corporations, combine to form a new company.

19. In the partnership form of ownership,

 the partners will not be held responsible for each other's actions.

 all the partners will have limited liability.

 the business will face fewer regulatory controls than a corporation. CORRECT

 all partners need to submit quarterly financial statements to stockholders.

 the owners will tend to have lower earning power than sole proprietors.
 A partnership has fewer regulatory controls affecting its activities than does a corporation. It does not have to file

public financial statements with government agencies or send out quarterly financial statements to several

thousand owners, as do corporations.

20. The factors of production are the

 systems and processes used to make goods and services.

 means of distributing wealth within a country.

 obstacles present in a competitive environment that limit production.

 land, labour, capital, and enterprise used to produce goods and services. CORRECT

 management, marketing, and finance activities of a business.

The factors of production consist of land, labor, capital, and enterprise used to produce goods and services.

21. Factors of production are:

 resources used to produce goods and services. CORRECT

 fixed resources.

 taxes.

 seldom in demand.

 free

22. The activities that independent individuals, groups, and organizations undertake to protect their rights as

consumers are known as:

 social responsibilities.

 consumerism. CORRECT
 ethics.

 welfare.

 morals.

Consumerism is the promotion of consumer rights and protection.

23. A ________ is an association of two or more persons who carry on as co-owners of a business for profit.

 Partnership CORRECT

 Franchise

 Sole proprietorship

 Multi-national corporation

 Public corporation

24. Barbershops, doggie day cares, and independent grocery stores are typically operated as:

 franchises.

 non-profit agencies.

 sole proprietorships. CORRECT

 partnerships.

 limited liability partnerships.

25. Businesses must first be responsible to:

 employees.

 customers.
 owners. CORRECT

 bankers.

 managers.

26. A set of formalized rules and standards that describe what a company expects of its employees is called a(n):

 code of ethics. CORRECT

 opportunity.

 moral philosophy.

 guideline.

 law.

27. The term ________ refers to a business's obligation to maximize its positive impact and minimize its negative

impact on society.

 social citizenship

 social strategy

 social ethics

 social responsibility CORRECT

 social philanthropy

28. Articles of partnership usually cover issues, including

 criteria for recruiting and hiring employees.

 demographic prerequisites for selecting a partner.

 salaries of contract employees.

 provisions for leaving the partnership. CORRECT

 classes of public stock to be issued.

29. When businesses can promote different features of their products and consumers are willing to pay more for

products containing the features they desire, the competitive environment is probably:

 pure competition.

 monopolistic competition. CORRECT

 an oligopoly.

 a monopoly.

 pure capitalism.

30. ________ emerged as a major issue in the 20th century in the face of increasing evidence that pollution,

uncontrolled use of natural resources, and population growth were putting increasing pressure on the long-

term sustainability of these resources.

 Ethnic cleansing

 Environmental protection CORRECT

 Global marketing

 Consumerism

 Whistleblowing

31. A private corporation is one that:

 is owned by only a few people and not traded on the open market. CORRECT

 does not pay taxes on its income.

 does not have a board of directors.

 can be purchased on the Toronto Stock Exchange.

 trades on the New York Stock Exchange (NYSE).

A private corporation is owned by one person or a few people who are closely involved in managing the business

and own all of the corporation's stock, no stock is sold to the public.

32. Which competitive environment best describes the market for Canadian air travel?

 Monopoly

 Monopolistic competition

 Oligopoly CORRECT

 Pure competition

 Pure capitalism

Canadian air travel is characterized by an oligopoly as it is dominated by Air Canada and WestJet.

33. it is easy to recognize specific ethical issues in practice.

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

It can be difficult to recognize specific ethical issues in practice. Whether a decision maker recognizes an issue

as an ethical one often depends on the issue itself.

34. Entrepreneurs risk their wealth, time, and effort to develop for profit an innovative product or way of doing

something.

 True selected button, CORRECT unavailable

 False, unselected button, Incorrect unavailable

The Irving Group and Loblaws are great examples of entrepreneurs starting Canadian companies.

35. Profit is what it costs to make and sell a product.

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

Profit is the difference between what it costs to make and sell a product and what a customer pays for it.

36. All provinces require partnerships to have the articles of partnership.

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

While a partnership agreement is highly recommended, it is not required as the provincial Partnership Act

provides rules for the business to follow.

37. Industrialization mostly occurred in Central Canada.

 True selected button, CORRECT unavailable

 False, unselected button, Incorrect unavailable

Industrialization was not as widespread in Canada as the United States and mostly occurred in Central Canada.

38. A bribe is considered as a conflict of interest.

 True selected button, CORRECT unavailable

 False, unselected button, Incorrect unavailable

A bribe is a conflict of interest because it benefits an individual at the expense of an organization or society.

39. The best way to judge the ethics of a decision is to look at it from a manager's or employee's point of view.

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

The best way to judge the ethics of a decision is to look at it from a customer's or competitor's point of view.
40. Demand is the quantity of goods and services that consumers are willing to buy at different prices at a

specific time.

 True selected button, CORRECT unavailable

 False, unselected button, Incorrect unavailable

Usually, as prices decrease, consumers are willing to buy more of a good or service.

41. Workplace bullying is a decreasing problem.

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

Bullying can be a mix of verbal, nonverbal, and manipulative threatening expressions to damage workplace

productivity.

42. One of the principal causes of unethical behavior in organizations is overly aggressive financial or business

objectives.

 True selected button, CORRECT unavailable

 False, unselected button, Incorrect unavailable

Many of these issues relate to decisions and concerns that managers have to deal with daily.

43. Entrepreneurs risk their wealth, time, and effort to develop for profit an innovative product or way of doing

something.

 True selected button, CORRECT unavailable

 False, unselected button, Incorrect unavailable

The Irving Group and Loblaws are great examples of entrepreneurs starting Canadian companies.

44. corporations have to worry about ethics scandals and social responsibility issues.

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

 Ethical issues are not limited to for-profit corporations, but include government, non-profits such as

universities, sports, and individuals.

45. In a general partnership, each partner is liable only for the debts he or she incurs.

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

In a general partnership, each partner has unlimited liability for the debts of the business.

46. Capitalism is an economic system in which the government owns and operates basic industries while

individuals own most other businesses.

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

Socialism is an economic system in which the government owns and operates basic industries while individuals

own most of the other businesses.

47. Entrepreneurship is essential to a free-enterprise system.

 True, unselected button, CORRECT unavailable

 False selected button, Incorrect unavailable

48. The focus of all marketing activities is the successful transformation of resources into goods and services.

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 False, unselected button, Incorrect unavailable

49. Taking a company public means announcing its creation to the public.

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

50. Limited liability partnerships (LLPs) are unique partnership agreements where even non-negligent partners

are liable for those losses created by other partners.

 True selected button, Incorrect unavailable

 False, unselected button, CORRECT unavailable

51. Most tender offers are considered hostile.

 True selected button, Incorrect unavailable

 False, unselected button, CORRECT unavailable

52. Codes of ethics foster ethical behaviour because they expand the opportunity to behave unethically.

 True selected button, Incorrect unavailable

 False, unselected button, CORRECT unavailable

53. The biggest advantage of the corporate form of ownership may be the limited liability of its owners.

 True selected button, CORRECT unavailable

 False, unselected button, Incorrect unavailable

The biggest advantage of a corporation is limited liability because the corporation's assets and liabilities are

separate from its owners'.

54. In a free-market system, the government regulates business.

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

In a free-market system, competition, supply, and demand determine which goods and services are produced.

55. It is easy to recognize specific ethical issues in practice

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

It can be difficult to recognize specific ethical issues in practice. Whether a decision maker recognizes an issue

as an ethical one often depends on the issue itself.

56. A corporate raider is the term used when a company or individual wants to acquire another company and

first offers to buy some of the company's shares at a premium over its current price in a tender offer.
  True selected button, CORRECT unavailable

 False, unselected button, Incorrect unavailable

Most such offers are "friendly," with both groups agreeing to the proposed deal, but some are "hostile," when

the second company does not want to be taken over.

57. Shopify and Spin Master are just two examples of businesses which began in their founders' homes.

 True selected button, CORRECT unavailable

 False, unselected button, Incorrect unavailable

Among the more famous businesses that sprang to life in their founders' homes are Shopify and Spin Master.

58. Businesses have the right to keep and use their profits as they choose, without limitations.

 True, unselected button, Incorrect unavailable

 False selected button, CORRECT unavailable

Within legal limitations, businesses have the right to keep and use their profits as they choose.