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University of Toronto Scarborough
Management (MGT)

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In the story "Voisey's Bay", Inco bought controlling interest in the site upon discovery of one of the world's richest nickel finds. There were delays in development of the site because: 1) _______ A) of a time-consuming and expensive environmental review process, along with difficult negotiations with the government of Newfoundland B) Inco found a richer nickel mine in Malaysia C) Inco closed its Newfoundland office D) Inco didn't have enough capital E) the company could not make a profit 2) Examples of businesses include the following, except: 2) _______ A) large corporations like Canadian Pacific or Alcan Aluminum B) one-person businesses, like barbershops C) local supermarkets D) non-profit organizations E) farms 3) Deborah wants to set up a business, but also wants to be aware of the roles business should take. Which of the following would Deborah not consider to be a role of business firms in the Canadian economy? 3) _______ A) support charitable organizations B) provide employment for citizens C) regulate the marketplace with trade barriers D) provide profit incentive for business owners E) provide community leadership 4) Profit is: 4) _______ A) the amount of sales B) the taxes a company pays C) what remains after business expenses are subtracted from business revenues D) the value of shares in a company E) the level of expenses 5) This week, Mary's Variety had sales of $4 000, employees were paid$1 000, cost of goods was $1 500, and rent was $500. Profit for the week was: 5) _______ A) $3 000 B) $4 000 C) $2 000 D) $1 000 E) $1 500 6) Most of the goods and services consumed in Canada are produced by: 6) _______ A) business firms B) the Canadian government C) the U.S. economy D) countries of the Pacific Rim E) overseas firms 7) An economic system is: 7) _______ A) the way in which a nation allocates its resources among its citizens B) an agreement between countries that deal with free trade C) a large government department that oversees how the economy is running D) a long standing agreement between citizens and governments on how an economy is run E) a government decree that requires certain goods and services to be provided 8) Jose is from Guatemala. He is unsure about the nature of business in Canada. You point out that a typical business in Canada operates the same as a typical business in: 8) _______ A) Japan B) People's Republic of China C) England D) Peru E) France 9) All of the following are factors of production except: 9) _______ A) capital B) labour C) entrepreneurs D) natural resources E) technology 10) Natural resources, as a factor of production for mining, is a practical consideration when a mining company considers: 10) ______ A) the number of customers who want to buy ore B) the ease with which ore could be mined C) the amount of capital required to build the mine D) the profit that could be made from mining the ore E) the number of miners available to mine the ore 11) Natural resources include: 11) ______ A) the funds needed to start and operate a business B) a large number of people with entrepreneurial tendencies C) land, water, and mineral deposits D) land, water, and gasoline E) the mental and physical capabilities of people 12) Labour includes: 12) ______ A) only workers who do physical work B) only managers C) only non-unionized employees D) only unionized employees E) everyone in the business 13) A factor that contributes directly to improving labour as a factor of production is: 13) ______ A) increased purchasing power by employees B) creation of more manual-labouring jobs C) free tuition at post-secondary educational institutions D) programs that decrease unemployment E) better education for more of the population 14) Susan wants to set up a small business. She should know that a major source of capital for most businesses, especially small businesses, is: 14) ______ A) personal investment B) investors C) loans from banks D) business revenue E) short-term loans 15) Marie owns a small restaurant and is thinking of expanding it to another location. She is best described as a(n): 15) ______ A) administrator B) employee C) venture capitalist D) capitalist E) entrepreneur 16) Entrepreneurs are important because they: 16) ______ A) are good managers B) are good at making decisions C) make lots of money D) are rich E) take risks to start new businesses 17) Bruce is wondering if he has the characteristics to be a good entrepreneur. You indicate that all of the following are characteristics of entrepreneurs except: 17) ______ A) a desire for a low-risk job B) a profit seeker C) someone who seeks opportunity D) an initiator E) a calculated risk taker 18) An individual who organizes the resources to produce goods and services to earn a profit, but also runs the risk of failure refers to: 18) ______ A) capitalism B) socialism C) entrepreneurs D) communism E) natural resources 19) A command economy is: 19) ______ A) one where there is a mix of government regulation and free enterprise B) one in which the market directs what is made and in what quantity C) one in which the government controls all or most factors of production D) one in which customers demand what new products are to be made E) the type of economy found in Russia 20) The economic system in which producers and consumers control production and allocation decisions through supply and demand is called: 20) ______ A) communism B) privatization C) centrally planned economy D) socialism E) market economy 21) You are involved in a debate about communism. You must know that a major drawback to communism as an economic system is that: 21) ______ A) communism is becoming less attractive B) government operated enterprises are inefficient because of political considerations C) individuals receive economic benefits according to their needs D) government control of the factors of production is only temporary E) individuals contribute according to their ability 22) Command economies are most likely to be found in: 22) ______ A) capitalistic societies B) western Europe C) communist and socialist nations D) the newly emerging Asian countries E) Japan 23) Which of the following is not true in the communist economic system? 23) ______ A) centralized planning emphasis on capital equipment and military hardware has caused shortages of consumer goods B) communist nations often expand their overall production rapidly because of centralized planning C) the government owns and operates all the industries D) there is limited or no free enterprise E) most government-operated enterprises are inefficient 24) Stanislav lives in a country where all the sources of production are owned by the government. The economy system in his country is most likely: 24) ______ A) socialism B) fascism C) privatization D) communism E) mixed market 25) Which of the following is not true? 25) ______ A) The United States is not a purely capitalistic economy. B) No country in the world has a purely communistic economy. C) No country in the world has a purely capitalistic economy. D) No country in the world has a purely socialistic economy. E) The People's Republic of China and Cuba are purely communistic economies today. 26) What do the nations of Cuba, North Korea, Vietnam, and the People's Republic of China have in common? 26) ______ A) mixed economy B) socialism C) communism D) mercantilism E) market economy 27) An economic system that permits private ownership and control of small businesses but where the government is in control of large critical industries is known as: 27) ______ A) socialism B) mercantilism C) capitalism D) a mixed economy E) communism 28) Socialism is best described as: 28) ______ A) a kind of command economy in which the government owns and operates large critical industries B) an economic system with elements of both a planned economy and a market economy C) an economy that is free from any regulation or planning D) a market economy in which markets decide what, when, and how much to produce E) a kind of command economy in which the government owns and operates all industries 29) Socialist economies can stifle economic growth because: 29) ______ A) they encourage unionization of employees B) socialist economies actually have the best record, and they do not stifle economic growth C) they have too few regulations concerning product safety D) management positions in state-controlled industries are often filled on the basis of political considerations E) they are actually command economies 30) Market economies have all of the following characteristics, except that they: 30) ______ A) require government intervention in order to prosper B) encourage entrepreneurship by offering profits as an incentive C) rely on markets, not governments, to decide what, when, and for whom to produce D) allow customers free choice E) allow businesses to charge whatever they want for their products and services 31) Market economies are the best for small businesses because they: 31) ______ A) protect small businesses from the power of large corporations B) allow small businesses to fail C) provide small businesses with lots of government assistance and protection D) provide a central plan in which small businesses can easily prosper E) allow the business to do whatever it wants 32) B2B has become popular in strategic business thinking. Which of the following statements is NOT true about B2B? 32) ______ A) B2B transactions exceed $200 billion. B) B2C transactions far exceed B2B transactions in dollar value. C) B2B activity is good news for consumers because it helps to make businesses more efficient, which will allow them to reduce their costs. That, in turn, will allow them to reduce prices. D) B2B stands for business-to- business electronic commerce. E) B2B involves businesses joining together to create e-commerce companies. 33) Canada is home to a(n
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