Business Essentials 8th Canadian Edition By Ronald J. Ebert-Test Bank

Exam Bank For Business Fundamentals 8th Canadian Edition By Ronald J. Ebert

ISBN-10: 0134000099, ISBN-13: 978-0134000091

Chapter 1: Grasping the Canadian Business Environment

1.1: Multiple-Choice Queries

1) Earnings are

1. A) what is left after deducting business expenses from business earnings.
2. B) what is left after shareholders receive dividends.
3. C) equal to overall revenue minus cash expenditures.
4. D) what remains after payment of income taxes.
5. E) twice the amount the company invests.

Response:  A

Complexity: 1     Type: MC     Page Ref: 5

Skill:  Understanding

Objective:  1.1

2) What defines earnings?

1. A) Total income received by a corporation
2. B) Increment in income from year to year
3. C) Increase in a corporation’s stock value
4. D) Revenue generated by products and services
5. E) Gap between revenues and costs

Response:  E

Complexity: 1     Type: MC     Page Ref: 5

Skill:  Understanding

Objective:  1.1

3) Profit is

1. A) the market value of stock shares in a company.
2. B) the ratio of expenses to the company’s assets.
3. C) what remains after deducting business expenses from business earnings.
4. D) total revenue minus taxes paid by a company.
5. E) total sales minus taxes paid by a company.

Response:  C

Complexity: 1     Type: MC     Page Ref: 5

Skill:  Understanding

Objective:  1.1

4) Abe’s Muffler Shop recorded sales of $4000 this week, paid $1000 to employees, incurred $1500 in product costs, and $500 in rent. The profit for the week was

3000. A) $3000.
3001. B) $1000.
3002. C) $4000.
3003. D) $2500.
3004. E) $500.

Response:  B

Complexity: 2     Type: MC     Page Ref: 5

Skill:  Application

Objective:  1.1

5) How do provincial universities in Canada differ from corporations?

1. A) They do not aim to generate profits.
2. B) They interact with people, not products.
3. C) Their organizational boundaries exclude corporations.
4. D) They do not manufacture goods or services.
5. E) They hold more societal importance than corporations.

Response:  A

Complexity: 2     Type: MC     Page Ref: 5

Skill:  Understanding

Objective:  1.1

6) Forbes magazine evaluated 134 countries on their business appeal. Where was Canada positioned?

1. A) First
2. B) Second
3. C) Fifth
4. D) Twenty-fifth
5. E) Eighty-seventh

Response:  A

Complexity: 2     Type: MC     Page Ref: 5

Skill:  Understanding

Objective:  1.1

7) Instances of businesses comprise all of the following except

1. A) local grocery stores.
2. B) lone operators like barber shops.
3. C) non-profit entities.
4. D) major corporations such as Canadian Pacific or Alcan Aluminum.
5. E) farms.

Response:  C

Complexity: 2     Type: MC     Page Ref: 5

Skill:  Understanding

Objective:  1.1

8) ________ generate the majority of the products and services consumed in Canada.

1. A) Businesses
2. B) Labor unions
3. C) Non-profit entities
4. D) Canadian provincial governments
5. E) Charities

Response:  A

Complexity: 1     Type: MC     Page Ref: 5

Skill:  Understanding

Objective:  1.1

9) Not-for-profit entities

1. A) are satisfied with modest profits, while corporations seek substantial profits.
2. B) hold a greater significance than corporations in the Canadian economy.
3. C) utilize funds from government grants or the sale of products or services to offer public service.
4. D) exclusively offer services, not products.
5. E) are restricted from operating in the manufacturing domain.

Response:  C

Complexity: 2     Type: MC     Page Ref: 5

Skill:  Understanding

Objective:  1.1

10) If two individuals exchange an apple, they each possess one apple, but if they exchange ideas, they now have two notions. This exemplifies

1. A) the value of natural resources.
2. B) the concept of labor specialization.
3. C) the distinction between information and other production factors.
4. D) the significance of profit in market economies.
5. E) the importance of governmental regulation.

Response:  C

Complexity: 2     Type: MC     Page Ref: 5

Skill:  Understanding

Objective:  1.2

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