Question 1

The most important difference between businesses and nonprofit organizations is that:
A)businesses do not benefit society.
B)nonprofit organizations do not strive for financial gains.
C)nonprofit organizations focus on social and educational goals.
D)nonprofit organizations do not benefit society.

Accepted Answer

The answer of The most important difference between businesses and...

Question 2

In Canada,most of the offshoring that occurs is with what country?
A)China
B)India
C)The United States
D)England

Accepted Answer

Canada most frequently offshores to the United States due to geographical proximity, cultural similarities, and strong economic ties.

Question 3

What is a social entrepreneur?
A)an individual who avoids business principles to start a non-profit organization
B)any new business startup with social goals
C)an individual who uses business principles to start and manage a non-profit organization
D)an individual working for a non-profit organization

Accepted Answer

A social entrepreneur is an individual who uses business principles to start and manage a non-profit organization that has a positive social impact. Unlike traditional entrepreneurs who focus solely on profits, social entrepreneurs prioritize social and environmental goals while still utilizing sound business strategies. This approach makes non-profits sustainable and self-sufficient, allowing them to continue their social impact beyond reliance on donations.

Question 4

A key characteristic of entrepreneurs is that they:
A)are willing to accept the risks involved in starting and managing a business.
B)have a high level of scientific and technical expertise.
C)possess a great deal of personal wealth.
D)have experience in running large,complex organizations.

Accepted Answer

Entrepreneurs are willing to take risks in starting and managing a business. This is because starting a business is inherently risky and involves uncertainty about whether the venture will be successful or profitable. Having the ability to bear this risk is a key characteristic of successful entrepreneurs. The other options, B, C, and D, are not necessarily true for all entrepreneurs as not all entrepreneurs necessarily possess high levels of technical expertise or personal wealth, or have experience running large organizations.

Question 5

According to Peter Drucker,the most important factor of production in our economy will be:
A)labour.
B)capital.
C)knowledge.
D)entrepreneurship.

Accepted Answer

Peter Drucker believed that in the future, knowledge would be the most important factor of production as it is now the key driver of economic growth and competitiveness. The increasing importance of knowledge-based industries and the rapid pace of technological innovation support this idea.

Question 6

The knowledge and skills students acquire in business courses will be useful to them:
A)only if they work for a major corporation.
B)only if they work for a nonprofit organization.
C)only if they start their own businesses.
D)if they work for any organization that produces goods and services,including nonprofit and volunteer organizations as well as businesses.

Accepted Answer

The knowledge and skills acquired in business courses can be applied to any organization that produces goods and services, including both for-profit businesses and nonprofit/volunteer organizations. Therefore, option D is the best answer. Options A, B, and C are too limiting and do not encompass all the possible applications of business knowledge and skills.

Question 7

What makes countries rich is:
A)finance.
B)marketing.
C)knowledge management.
D)accounting.

Accepted Answer

Knowledge management is the best choice as it includes the development and implementation of strategies and practices to identify, capture, share, and effectively use an organization's knowledge and expertise. It can lead to innovation, increased productivity, and economic growth, making it a key factor in a country's overall wealth. Finance, marketing, and accounting are important components of a country's economy, but they are not the primary drivers of wealth.

Question 8

Shelley recently opened a new restaurant specializing in fast foods prepared with less fat and calories for health-conscious diners who are in a hurry.Shelley knows that there are some risks associated with opening and managing a restaurant,but she is confident that she can earn a profit.Shelley is an example of a(n):
A)arbitrageur.
B)entrepreneur.
C)speculator.
D)account manager. An entrepreneur is a person who assumes the risk of starting and running a business.

Accepted Answer

Shelley's decision to open a new restaurant and assume the risk of managing it qualifies her as an entrepreneur.

Question 9

Non-profit organizations:
A)last for only short periods of time as their objective is not to create profits for their owners.
B)have a hard time hiring employees as they have no means of paying them.
C)are run by the government.
D)can provide an opportunity for individuals to address social issues.

Accepted Answer

Non-profit organizations can provide individuals with an opportunity to address social issues and contribute to their community. They are not designed to create profits for their owners, but rather serve a specific purpose or cause. While some non-profits may have difficulty attracting and retaining employees due to limited resources, this is not always the case. Non-profits can be run by a variety of entities, including the government, but many are independently operated.

Question 10

Quality of life refers to:
A)the outsourcing of job functions.
B)the amount of good and services people can buy.
C)addressing the needs of all stakeholders when making a business decision.
D)the general well-being of a society.

Accepted Answer

Quality of life refers to the overall well-being of a society, including factors such as access to healthcare, education, and basic needs, as well as social and environmental factors. It is not related to outsourcing or the amount of goods and services individuals can buy, although these factors can potentially influence quality of life. Addressing the needs of all stakeholders when making a business decision is important for ethical and sustainable business practices but does not directly relate to the concept of quality of life.

Question 11

Customers,employees,stockholders and,suppliers are known as creditors,and others who stand to gain or lose by the policies and activities of a business represent the firm's:
A)market makers.
B)economic environment.
C)stakeholders.
D)social mentors.

Accepted Answer

Stakeholders are individuals or groups who have an interest in the performance of a business or organization, and who can be affected by its policies and activities. This includes customers, employees, stockholders, and suppliers, as well as other groups such as regulators, communities, and the natural environment. Stakeholders may have varying levels of influence over a business, and it is important for companies to understand and manage their relationships with these groups to achieve long-term success.

Question 12

When might offshoring backfire?
A)If the procedures followed in managing the outsourced function remain the same.
B)Ithe overseas company uses the information to produce its own competitive product
C)When all of the current suppliers to the outsourced function are retained.
D)If the cost of the function is reduced by at least 50%.

Accepted Answer

Offshoring may backfire if the overseas company uses the information to produce its own competitive product, which could harm the original company's market share and profits. The other options do not necessarily lead to offshoring backfiring.

Question 13

Last year,MacTeck Enterprises had total revenues of $34 million while its total expenses were $22 million.Based on this information,MacTeck:
A)earned a profit of $12 million.
B)earned a profit of $56 million.
C)suffered a loss of $12 million.
D)suffered a loss of $22 million. Profits are found by subtracting costs and expenses from revenues,so MacTeck's profits are $34 million - $22 million = $12 million.

Accepted Answer

Profits are found by subtracting costs and expenses from revenues,so MacTeck's profits are $34 million - $22 million = $12 million. Therefore, the company earned a profit of $12 million.

Question 14

Public schools,charities and government agencies are not classified as businesses because they:
A)have not been incorporated.
B)do not seek to earn a profit.
C)provide services rather than goods.
D)do not have any stockholders. Although schools,charities,and government agencies often provide goods and services,they do not seek a profit.Therefore,they are nonprofit organizations rather than businesses.

Accepted Answer

Public schools, charities, and government agencies do not seek to earn a profit, which is one of the main indicators of a business. They are nonprofit organizations, providing services for the benefit of the community rather than for financial gain.

Question 15

For an entrepreneur to achieve success in the business world he has to be willing to take:
A)bribes.
B)losses.
C)government assistance.
D)risks.

Accepted Answer

In order to achieve success in the business world, an entrepreneur must be willing to take risks. Taking calculated risks can lead to great rewards, and without taking risks, entrepreneurs cannot advance their businesses or innovate new ideas. Therefore, option D, risks, is the best choice. The options A, bribes, and C, government assistance, are illegal and unethical ways of achieving success, while option B, losses, is inevitable in the business world but is not something an entrepreneur should actively seek.

Question 16

Which of the following organizations would be considered a business and not a nonprofit organization?
A)Boy Scouts.
B)United Church of Canada.
C)Crescent private school.
D)Red Cross. Private schools are run for a profit and are thus considered a business.

Accepted Answer

Crescent private school is run for a profit and is thus considered a business. The other options are nonprofit organizations.

Question 17

In order to make an intelligent investment decision,entrepreneurs should:
A)limit their options to those business investments that are backed by the Canadian government.
B)invest in businesses that have generated a stable rate of profit for at least ten years.
C)invest only in business opportunities where it is possible to take an active role in management.
D)do research to compare the risks of potential investments to their expected profits and find the right balance between profit and risk. Those companies with high risk also often possess the potential for high profits.Entrepreneurs must weigh risk and profit and find the right balance.

Accepted Answer

Entrepreneurs should do research and compare the risks of potential investments to their expected profits and find the right balance between profit and risk. This means that they should weigh the potential for high profits against the risks involved in order to make an informed investment decision. Simply limiting options to those backed by the Canadian government or investing in stable businesses for ten years may not necessarily provide the best return on investment. Additionally, while taking an active role in management may be preferable, it is not always feasible.

Question 18

Companies have gone from outsourcing jobs to offshoring what?
A)the purchase of inputs
B)profits
C)stakeholders
D)research and development

Accepted Answer

Outsourcing jobs refers to sending jobs to be done by people in another company or country, whereas offshoring refers to moving a company's operations, such as production or research and development, to another country. Therefore, the best choice is D, research and development.

Question 19

Offshoring entails:
A)sourcing parts outside of the country.
B)assigning various functions to outside organizations.
C)having a limited life.
D)being controlled by a board of directors.

Accepted Answer

Offshoring involves sourcing parts or services from outside the country, typically to take advantage of lower costs.

Question 20

145 Which of the following is the best example of a business?
A)a community college
B)the Salvation Army
C)the Girl Guides of Canada
D)Wal-Mart Wal-Mart is the only one of the organizations listed which seeks to earn a profit.All of the others are nonprofit organizations.

Accepted Answer

Wal-Mart is the only organization listed that seeks to earn a profit, making it the best example of a business. The other organizations listed are nonprofit organizations.

Quiz 1: Taking Risks and Making Profits Within the Dynamic Business Environment

The most important difference between businesses and nonprofit organizations is that:

In Canada,most of the offshoring that occurs is with what country?

What is a social entrepreneur?

A key characteristic of entrepreneurs is that they:

According to Peter Drucker,the most important factor of production in our economy will be:

The knowledge and skills students acquire in business courses will be useful to them:

What makes countries rich is:

Non-profit organizations:

Quality of life refers to:

Customers,employees,stockholders and,suppliers are known as creditors,and others who stand to gain or lose by the policies and activities of a business represent the firm's:

When might offshoring backfire?

Last year,MacTeck Enterprises had total revenues of $34 million while its total expenses were $22 million.Based on this information,MacTeck:

Public schools,charities and government agencies are not classified as businesses because they:

For an entrepreneur to achieve success in the business world he has to be willing to take:

Which of the following organizations would be considered a business and not a nonprofit organization?

In order to make an intelligent investment decision,entrepreneurs should:

Companies have gone from outsourcing jobs to offshoring what?

Offshoring entails:

145 Which of the following is the best example of a business?