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MGMT 1000 Final: Business-Essentials-Sixth-Canadian-Edition-6th-Edition-Ebert-Test-Bank


Department
Management
Course Code
MGMT 1000
Professor
Kathleen Rodenburg
Study Guide
Final

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Copyright © Pearson Canada Inc. 1
CHAPTER 2
THE ENVIRONMENTS OF BUSINESS
MULTIPLE CHOICE QUESTIONS. Choose the one alternative that best completes the
statement or answers the question.
1)Which of the following points are made in the opening case entitled “Air Canada's
Challenging Environment: Competition, Economic Crisis, Fuel Prices, Volcanoes and
More"?
A)Skytrax named as Air Canada as the worst airline in North America in 2010
B)Air Canada continues to control the lion's share of the domestic market
C)Most airlines purchase new planes on relatively short notice to get good deals on
prices
D)In 2009, the global commercial airline industry only broke even because of the
recession
E)All of these are correct
Answer: B
Diff: 3
Skill: Recall
Objective: 2.1
A-Heading: Organizational Boundaries and Environments
2)In terms of organizational boundaries and environments, which is correct?
A)Large business firms are heavily influenced by events in the external
environment, but small business firms are much less influenced
B)No single firm can control the environment
C)Most organizations have a single environment, but some have multiple environments
they must cope with
D)The major elements of the external environment are marketing, finance,
production, and human resources
E)The most important features of the external environment are the political and
social aspects
Answer: B
Diff: 2
Skill: Recall
Objective: 2.1
A-Heading: Organizational Boundaries and Environments
3)Distributors who are in a grocery store restocking shelves are normally
considered part of the ________ rather than the ________.
A)environment; culture
B)organization; environment
C)culture; store
D)environment; organization
E)none of these are correct
Answer: D
Diff: 2
Skill: Application
Objective: 2.1
A-Heading: Organizational Boundaries and Environments
4)The ________ consists of everything outside of an organization's boundaries that
might affect it.
A)gross domestic product
B)enterprise resource
C)annual deficit

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Copyright © Pearson Canada Inc. 2
D)national debt
E)external environment
Answer: E
Diff: 2
Skill: Recall
Objective: 2.1
A-Heading: Organizational Boundaries and Environments
5)A(n) ________ separates the organization from its environment.
A)organizational boundary
B)process boundary
C)enterprise resource
D)aggregate output
E)integration
Answer: A
Diff: 1
Skill: Recall
Objective: 2.1
A-Heading: Organizational Boundaries and Environments
6)How might moderate unemployment levels in the general economy affect a company
like McDonald's?
A)Most people will be able to afford to eat out and McDonald's will be able to pay
lower wages and still attract employees
B)Very few people will be able to afford to eat out, but McDonald's will be able to
pay workers less than minimum wage
C)Few people will be able to afford to eat out and McDonald's will have to pay
higher wages to attract employees
D)Few people will be able to afford to eat out and McDonald's will be able to pay
lower wages and still attract employees
E)Most people will be able to afford to eat out, but McDonald's will have to pay
higher wages to attract employees
Answer: E
Diff: 3
Skill: Recall
Objective: 2.2
A-Heading: The Economic Environment
7)How might low inflation levels in the general economy affect a company like
McDonald's?
A)McDonald's will pay much higher prices for supplies and will charge customers
more for its products
B)McDonald's will pay higher prices for supplies and will charge customers more for
its products
C)McDonald's will pay relatively constant prices for supplies, but will be unable
to increase the price paid by customers
D)McDonald's will pay relatively constant prices for supplies and will charge
customers more for its products
E)McDonald's will pay higher prices for supplies, but will be unable to increase
the price paid by customers
Answer: C
Diff: 3
Skill: Recall
Objective: 2.2
A-Heading: The Economic Environment
8)Agriculture efficiency has resulted in

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Copyright © Pearson Canada Inc. 3
A)Canadians contributing more resources to farms.
B)an increase in the number of people employed in the industry.
C)Canadians needing more farms.
D)a decrease in the number of people employed in the industry.
E)none of these.
Answer: D
Diff: 2
Skill: Application
Objective: 2.2
A-Heading: The Economic Environment
9)Since the increase in unemployment in a small Atlantic Canadian town, retailers
have noticed that sales have decreased. The retailers are being affected by which
element of the external environment?
A)Socio-cultural
B)Economic
C)Environmental
D)Global
E)Political-legal
Answer: B
Diff: 2
Skill: Application
Objective: 2.2
A-Heading: The Economic Environment
10)At one time, about ________ of the population of Canada was involved in
producing the food that we needed; today less than ________ percent of the
population works in agriculture.
A)half; 0.5
B)half; 2.5
C)one-third; 5
D)three-quarters; 2.5
E)four-fifths; 3
Answer: B
Diff: 3
Skill: Recall
Objective: 2.2
A-Heading: The Economic Environment
11)Agricultural production has ________ because ________.
A)grown; we have increased total output in that sector
B)increased; Canada imports more agricultural products
C)declined; fewer Canadians are working in agriculture
D)remained unchanged; there have been relatively few changes in agricultural
technology
E)increased; more people are involved in farming
Answer: A
Diff: 2
Skill: Recall
Objective: 2.2
A-Heading: The Economic Environment
12)The main measure of growth in an economic system is
A)the business cycle.
B)standard of living.
C)gross national product.
D)gross domestic product.
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