TEST BANK FOR
George Dracopoulos
Vanier College and McGill University
Business Essentials
Tenth Canadian Edition
Ronald J. Ebert/ Ricky W. Griffin/
George Dracopoulos/ Frederick A. Starke
Business Essentials, 10Ce (Ebert)
Chapter 1 Understanding the Canadian Business System
1 .1 Define the nature of Canadian business and identify its main goals.
1) Which of the following is the best definition of "profit?"
A) Total money taken in by a corporation
B) Increases in income from year to year
C) Increases in a corporation's stock price
,D) Revenue generated by goods and services
E) Difference between revenues and expenses
Answer: E
Diff: 1 Type: MC
Skill: Knowledge
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
2) This week, Abe's Muffler Shop had sales of $9500, employees were paid $2500, the cost of
goods was $3500, and rent was $2000. Profit for the week was
A) $3000.
B) $1500.
C) $4000.
D) $2500.
E) $6500.
Answer: B
Diff: 2 Type: MC
Skill: Application
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
3) How are provincial universities in Canada different from business firms?
A) They do not seek to make a profit.
B) They deal with people, not things.
C) Their organizational boundaries exclude business firms.
D) They do not produce goods or services.
E) They are more important to society than business firms.
Answer: A
Diff: 2 Type: MC
Skill: Comprehension
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
Copyright © 2023 Pearson Canada Inc.
,4) 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 Telus.
E) farms.
Answer: C
Diff: 2 Type: MC
Skill: Comprehension
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
5) ________ produce most of the goods and services consumed in Canada.
A) Businesses
B) Labour unions
C) Non-profit organizations
D) Canadian provincial governments
E) Charities
Answer: A
Diff: 1 Type: MC
Skill: Comprehension
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
6) Not-for-profit organizations
A) are content with small profits, whereas business firms want large profits.
B) are more important than business firms in the Canadian economy.
C) use the funds from government grants or from the sale of goods or services to provide service
to the public.
D) sell only services, not goods.
E) are not allowed to operate in the manufacturing sector.
Answer: C
Diff: 2 Type: MC
Skill: Comprehension
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
7) Charities, labour unions, hospitals, educational institutions, and government agencies are all
examples of which of the following?
A) Co-operatives
B) Corporations
C) Businesses
D) Government agencies
E) Not-for-profit organizations
Answer: E
Diff: 1 Type: MC
Skill: Knowledge
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
Copyright © 2023 Pearson Canada Inc.
, Copyright © 2023 Pearson Canada Inc.
George Dracopoulos
Vanier College and McGill University
Business Essentials
Tenth Canadian Edition
Ronald J. Ebert/ Ricky W. Griffin/
George Dracopoulos/ Frederick A. Starke
Business Essentials, 10Ce (Ebert)
Chapter 1 Understanding the Canadian Business System
1 .1 Define the nature of Canadian business and identify its main goals.
1) Which of the following is the best definition of "profit?"
A) Total money taken in by a corporation
B) Increases in income from year to year
C) Increases in a corporation's stock price
,D) Revenue generated by goods and services
E) Difference between revenues and expenses
Answer: E
Diff: 1 Type: MC
Skill: Knowledge
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
2) This week, Abe's Muffler Shop had sales of $9500, employees were paid $2500, the cost of
goods was $3500, and rent was $2000. Profit for the week was
A) $3000.
B) $1500.
C) $4000.
D) $2500.
E) $6500.
Answer: B
Diff: 2 Type: MC
Skill: Application
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
3) How are provincial universities in Canada different from business firms?
A) They do not seek to make a profit.
B) They deal with people, not things.
C) Their organizational boundaries exclude business firms.
D) They do not produce goods or services.
E) They are more important to society than business firms.
Answer: A
Diff: 2 Type: MC
Skill: Comprehension
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
Copyright © 2023 Pearson Canada Inc.
,4) 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 Telus.
E) farms.
Answer: C
Diff: 2 Type: MC
Skill: Comprehension
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
5) ________ produce most of the goods and services consumed in Canada.
A) Businesses
B) Labour unions
C) Non-profit organizations
D) Canadian provincial governments
E) Charities
Answer: A
Diff: 1 Type: MC
Skill: Comprehension
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
6) Not-for-profit organizations
A) are content with small profits, whereas business firms want large profits.
B) are more important than business firms in the Canadian economy.
C) use the funds from government grants or from the sale of goods or services to provide service
to the public.
D) sell only services, not goods.
E) are not allowed to operate in the manufacturing sector.
Answer: C
Diff: 2 Type: MC
Skill: Comprehension
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
7) Charities, labour unions, hospitals, educational institutions, and government agencies are all
examples of which of the following?
A) Co-operatives
B) Corporations
C) Businesses
D) Government agencies
E) Not-for-profit organizations
Answer: E
Diff: 1 Type: MC
Skill: Knowledge
Objective: 1.1 Define the nature of Canadian business and identify its main goals.
Copyright © 2023 Pearson Canada Inc.
, Copyright © 2023 Pearson Canada Inc.
