CHAPTER 1
THE CANADIAN BUSINESS SYSTEM
MULTIPLE CHOICE QUESTIONS. Choose the one alternative that best
completes the statement or answers the question.
1)Which of the following statements is correct with regard to the
opening case entitled “Opportunities and Challenges in the Mobile Phone
Market"?
A)RIM has been very successful so far, but there are big potential
problems on the horizon.
B)There is now a general consensus among industry experts that RIM is
going to be the leading company in the mobile phone market.
C)To date competition is not tough in the mobile phone market.
D)The "bring your own device" trend has just about run its course.
E)Unlike other phone makers, RIM has not been plagued with patent
infringement lawsuits.
Answer: A
Diff: 2
Skill: Recall
Objective: 1.1
A-Heading: The Idea of Business and Profit
2)Profit is
A)what remains after business expenses are subtracted from business
revenues.
B)equal to the market value of shares in a company.
C)equal to total revenue minus cash expenses.
D)the amount of sales minus 50 percent.
E)double the amount the company pays in taxes.
Answer: A
,Diff: 1
Skill: Recall
Objective: 1.1
A-Heading: The Idea of Business and Profit
3)This week, Jessica's Variety Store had sales of $4,000, employees
were paid $1,000, the cost of goods was $1,500, and rent was $500.
Profit for the week was
A)$3,000.
B)$1,000.
C)$4,000.
D)$2,000.
E)$1,500.
Answer: B
Diff: 2
Skill: Application
Objective: 1.1
A-Heading: The Idea of Business and Profit
4)How are provincial universities in Canada different from business
firms?
A)They do not seek to make a profit
B)They are not affected by the global environment
C)Their organizational boundaries are narrower than normal
D)They do not produce goods or services
E)They are more important to society than business firms
Answer: A
Diff: 2
Skill: Recall
,Objective: 1.1
A-Heading: The Idea of Business and Profit
5)__________ is the difference between a business firm's revenues and
its expenses.
A)Cost of goods sold
B)Productivity
C)Sales
D)Debt
E)Profit
Answer: E
Diff: 1
Skill: Recall
Objective: 1.1
A-Heading: The Idea of Business and Profit
6)Profit is
A)the market value of shares of stock in a company.
B)the level of expenses divided by the firm’s assets.
C)what remains after business expenses are subtracted from business
revenues.
D)gross revenue minus taxes a company pays.
E)gross sales minus taxes a company pays.
Answer: C
Diff: 1
Skill: Recall
Objective: 1.1
A-Heading: The Idea of Business and Profit
, 7)Examples of businesses include all of the following except
A)local supermarkets.
B)one-person businesses, like barbershops.
C)non-profit organizations.
D)large corporations like Canadian Pacific or Alcan Aluminum.
E)farms.
Answer: C
Diff: 2
Skill: Application
Objective: 1.1
A-Heading: The Idea of Business and Profit
8)Most of the goods and services consumed in Canada are produced by
A)countries in the European Union.
B)businesses in the U.S.
C)countries of the Pacific Rim.
D)the Canadian government.
E)business firms.
Answer: E
Diff: 1
Skill: Application
Objective: 1.1
A-Heading: The Idea of Business and Profit
9)Not-for-profit organizations
A)are content with small profits, whereas business firms want large
profits
B)are more important than business firms.
THE CANADIAN BUSINESS SYSTEM
MULTIPLE CHOICE QUESTIONS. Choose the one alternative that best
completes the statement or answers the question.
1)Which of the following statements is correct with regard to the
opening case entitled “Opportunities and Challenges in the Mobile Phone
Market"?
A)RIM has been very successful so far, but there are big potential
problems on the horizon.
B)There is now a general consensus among industry experts that RIM is
going to be the leading company in the mobile phone market.
C)To date competition is not tough in the mobile phone market.
D)The "bring your own device" trend has just about run its course.
E)Unlike other phone makers, RIM has not been plagued with patent
infringement lawsuits.
Answer: A
Diff: 2
Skill: Recall
Objective: 1.1
A-Heading: The Idea of Business and Profit
2)Profit is
A)what remains after business expenses are subtracted from business
revenues.
B)equal to the market value of shares in a company.
C)equal to total revenue minus cash expenses.
D)the amount of sales minus 50 percent.
E)double the amount the company pays in taxes.
Answer: A
,Diff: 1
Skill: Recall
Objective: 1.1
A-Heading: The Idea of Business and Profit
3)This week, Jessica's Variety Store had sales of $4,000, employees
were paid $1,000, the cost of goods was $1,500, and rent was $500.
Profit for the week was
A)$3,000.
B)$1,000.
C)$4,000.
D)$2,000.
E)$1,500.
Answer: B
Diff: 2
Skill: Application
Objective: 1.1
A-Heading: The Idea of Business and Profit
4)How are provincial universities in Canada different from business
firms?
A)They do not seek to make a profit
B)They are not affected by the global environment
C)Their organizational boundaries are narrower than normal
D)They do not produce goods or services
E)They are more important to society than business firms
Answer: A
Diff: 2
Skill: Recall
,Objective: 1.1
A-Heading: The Idea of Business and Profit
5)__________ is the difference between a business firm's revenues and
its expenses.
A)Cost of goods sold
B)Productivity
C)Sales
D)Debt
E)Profit
Answer: E
Diff: 1
Skill: Recall
Objective: 1.1
A-Heading: The Idea of Business and Profit
6)Profit is
A)the market value of shares of stock in a company.
B)the level of expenses divided by the firm’s assets.
C)what remains after business expenses are subtracted from business
revenues.
D)gross revenue minus taxes a company pays.
E)gross sales minus taxes a company pays.
Answer: C
Diff: 1
Skill: Recall
Objective: 1.1
A-Heading: The Idea of Business and Profit
, 7)Examples of businesses include all of the following except
A)local supermarkets.
B)one-person businesses, like barbershops.
C)non-profit organizations.
D)large corporations like Canadian Pacific or Alcan Aluminum.
E)farms.
Answer: C
Diff: 2
Skill: Application
Objective: 1.1
A-Heading: The Idea of Business and Profit
8)Most of the goods and services consumed in Canada are produced by
A)countries in the European Union.
B)businesses in the U.S.
C)countries of the Pacific Rim.
D)the Canadian government.
E)business firms.
Answer: E
Diff: 1
Skill: Application
Objective: 1.1
A-Heading: The Idea of Business and Profit
9)Not-for-profit organizations
A)are content with small profits, whereas business firms want large
profits
B)are more important than business firms.
