Test Bank For Business Essentials 8th Canadian Edition By Ronald J. Ebert
ISBN-10: 0134000099, ISBN-13: 978-0134000091
Chapter 1 Understanding the Canadian Business System
1.1 Multiple-Choice Questions
1) Profit is
- A) what remains after business expenses are subtracted from business revenues.
- B) what remains after dividends have been paid to stockholders.
- C) equal to total revenue minus cash expenses.
- D) what remains after income taxes have been paid.
- E) double the amount the company pays in.
Answer: A
Diff: 1 Type: MC Page Ref: 5
Skill: Knowledge
Objective: 1.1
2) What are profits?
- 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 Page Ref: 5
Skill: Knowledge
Objective: 1.1
3) Profit is
- A) the market value of shares of stock in a company.
- B) the level of expenses divided by the firm’s assets.
- C) what remains after business expenses are subtracted from business revenues.
- D) gross revenue minus taxes a company pays.
- E) gross sales minus taxes a company pays.
Answer: C
Diff: 1 Type: MC Page Ref: 5
Skill: Knowledge
Objective: 1.1
4) This week, Abe’s Muffler Shop had sales of $4000, employees were paid $1000, the cost of goods was $1500, and rent was $500. Profit for the week was
- A) $3000.
- B) $1000.
- C) $4000.
- D) $2500.
- E) $500.
Answer: B
Diff: 2 Type: MC Page Ref: 5
Skill: Application
Objective: 1.1
5) 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 Page Ref: 5
Skill: Comprehension
Objective: 1.1
6) Forbes magazine ranked 134 countries in terms of how attractive they were to do business in. Where did Canada rank?
- A) First
- B) Second
- C) Fifth
- D) Twenty-fifth
- E) Eighty-seventh
Answer: A
Diff: 2 Type: MC Page Ref: 5
Skill: Knowledge
Objective: 1.1
7) 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 Alcan Aluminum.
- E) farms.
Answer: C
Diff: 2 Type: MC Page Ref: 5
Skill: Comprehension
Objective: 1.1
8) ________ 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 Page Ref: 5
Skill: Comprehension
Objective: 1.1
9) 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 Page Ref: 5
Skill: Comprehension
Objective: 1.1
10) If two people exchange an apple, they each still have just one apple, but if they exchange ideas, they now each have two ideas. This is an illustration of
- A) the importance of natural resources.
- B) the principle of specialization of labour.
- C) the difference between information and all the other factors of production.
- D) the importance of profit in market economies.
- E) the importance of government regulation.
Answer: C
Diff: 2 Type: MC Page Ref: 5
Skill: Comprehension
Objective: 1.2
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