afm 132 - practice exam + quiz questions

Porter's 5 forces considers the political, economic, social, technological, and overarching factors that may impact the success of a business.

False

The manager of Extreme Sporting Goods is concerned that cash expenditures have been exceeding cash receipts for the last six months, suggesting that Extreme is suffering from a(n) ____________ problem.

cash flow

Johnny was asked to come up with new ideas to launch a product that complements his company's existing mix of products. Johnny would be classified as a(n).

intrapreneur

In Canada, municipal governments are set up by the federal government to oversee issues that impact cities, towns, and districts.

False

In a global business environment, a small business needs to worry about all of the following, EXCEPT:

the lack of opportunities on the world stage

One problem of conducting a social audit is:

determining what to measure and how to calculate the impact on society

In an interview, employers can ask about job ability, family status, and sexual orientation.

False

A venture capitalist is a wealthy individual that likes to invest in early-stage businesses.

False

Sassy Signs and Labels allows each customer to pay their bill within 30 days and includes "3/15 net 30" on their invoices. This gives customers a:

3% discount if they pay in 15 days

Why is it useful for Balance Sheet users to see current assets and current liabilities clearly identified?

to assess the company's ability to pay current liabilities

A small business can fail due to undercapitalization and poor cash flow management.

True

Triple bottom-line reporting is all about:

reporting on the environmental, social, and economic impacts of business activity

All of the following are important considerations about international business, EXCEPT:

employers value graduates with a local mindset
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The following statements are true about participating in the global market, EXCEPT:

only large companies can compete in foreign markets

Top managers make less use of _________ skills than first-line managers.

technical

Lean manufacturing supports the following, EXCEPT:

gradually reducing the amount of products you make

A(n) __________ code of conduct sets guiding values and stresses shared accountability for employees to do the right thing.

integrity-based

In small organizations, the employee experience may be managed through roles such as a Finance Manager.

True

Australia is an extremely efficient producer of peaches, but its climate makes it difficult to produce grapes for ice wine. According to the theory of comparative advantage, Australia should:

concentrate its production on peaches and buy grapes from an efficient producer

An example of primary research data is:

observation

Many manager job postings today expect candidates to have the ability to guide, coach, and motivate workers towards a common purpose. This would place emphasis on the ____________ function of management.

leading

With the introduction of the moving assembly line in the 1900s, standardization of the production process lead to higher costs, higher quality, and more reliable products.

False

Jacqueline has been reviewing quality reports to determine if her department has been able to reduce the amount of defects based on the standards set for the current month. Her efforts are part of the ____________ function of management.

controlling

The Business Model Canvas captures how you deliver value to customers through your products and services.

True

Tailoring a suit to meet the needs of a customer would be an example of a ____________ process.

made-to-order

Governments in Canada have privatized services they have traditionally offered:

to promote competition in the marketplace

All of the following support the increased rate of technological change, EXCEPT:

retailers finding ways to reduce service to customers

____________ are an example of a transactional revenue stream.

usage fees

An example of an intangible resource would include:

patents

When it comes to HRM legislation, employment standards include the following, EXCEPT:

workplace perks

Employees at Lucky Local are given time off each year to engage with the community by volunteering with local charities. This shows how Lucky Local practices:

corporate philanthropy

All companies in Canada must use International Financial Reporting Standards (IFRS).

False

EQ is a measure of technical aptitude and social intelligence.

False

An assembly line to manufacture a car would represent a ____________ layout:

product

All of the following can represent common traits of successful entrepreneurs, EXCEPT:

wealth being the prime motivator

The following represent trends in marketing today, EXCEPT:

less reliance on data, and more emphasis on what companies believe is best for customers

With an increasing use of technology and automation in the workplace, there is a decrease in the knowledge and skill requirements for jobs.

False

Which of the following represents an indirect channel for a company such as Microsoft?

distributing their products through retailers

A SWOT analysis for Aluminum Co. identified how potential competitors would struggle to launch operations in their specialized metal-processing industry. This represents a(n) _________ to Aluminium Co.

weakness

A mission statement aims to do the following, EXCEPT:

describe the fundamental beliefs that guide decision making

The United States is Canada's top trading partner for exports and imports.

True

Deregulation is the removal of laws and regulations to allow for more competition.

True

As a loan officer at a bank, what set of ratios would help you evaluate the ability for a company to meet their short-term debt obligations?

liquidity ratios

The cash flow statement includes information on:

changes in cash over a specified period due to operating and investing activities

Current and future financial performance and customer perceptions are taken into account when valuing a brand like Apple.

True

The launch of Amazon Go is a good example of a change to what component of the marketing mix?

Place

The ____________ budget captures ongoing expenses such as salaries, supplies, and advertising.

operating

LinkedIn, an online platform/app for professional networking, has a freemium business model as it's free to initially use but has a paid premium option with extra perks and on-demand learning opportunities.

True

All of the following statements about becoming futureproof are true, EXCEPT:

it will become unnecessary to understand routine tasks

Sustainability considers:

a reduction of the negative impacts on the environment

The rate at which new technologies have been adopted has been influenced by:

evolving needs and desires of consumers

An example of intrapreneurship includes:

a designer at Apple launching a new gadget to compete with Google's brand of smart glasses

Automation and algorithms have reduced the requirement for advisors to use their professional judgement to make the best decisions for their clients.

False

Which of the following activities represents an ethical consideration for an organization?

Ensuring quality working conditions with the suppliers a company is associated with.

Purchasing permanent property in another country is known as a:

foreign direct investment

Which of the following strategies to enter global markets has the most amount of commitment, control, and risk?

foreign direct investment

Participating in the global market requires a business to set up a location in another part of the world.

False

Which of the following statements about the causes of small business failure is accurate?

Businesses that require professional training have lower failure rates.

Which of the following represents restrictive standards by the government intended to make it difficult for foreign firms to sell their products?

a non-tariff barrier

Pinkland is a small nation that has followed protectionist policies. Which of the following would be an example of a non-tariff barrier?

implementing restrictive quality standards requiring foreign firms to make expensive modifications to their products before they can be sold in Pinkland

Japanese automobile manufacturers sold more of their products overseas than within Japan. Their business strategy emphasizes:

exporting

If a Swiss chocolate producer purchases a Canadian ice cream manufacturer, the Canadian ice cream manufacturer becomes a:

foreign subsidiary

In a licensing agreement, who pays the marketing costs for the product?

the licensee

What is an example of a Canadian crown corporation?

a new business owned by the government

The Bank of Canada:

manages money supply and interest rates

In the _____________ phase of the business cycle, you can expect high demand for products and job creation.

expansion

In scanning the business environment, a look at the social environment includes all of the following, EXCEPT:

CPI

Member of Parliament Oliver Queen is alarmed at the state of the economy, with high unemployment and slow GDP growth. Oliver supports an increase in expenditures and to reduce taxes in order to stimulate the economy, which are examples of the government's use of:

fiscal policy

When a firm makes use of SWOT analysis, one of its objectives is to:

identify the things it does well and the things it needs to improve

If the government wishes to discourage the consumption of certain products, like sugary beverages, it can:

implement a sin tax

The Bank of Canada may choose to lower interest rates to:

boost a weak economy

Which of the following describes someone who reports illegal or unethical behaviour?

whistleblower

Ethics are:

guiding principles

Companies are responsible to external stakeholders including customers, investors, and the environment.

True

Socially responsible companies take money away from investors in the long run.

False

An example of an ethical dilemma is whether to follow directions from your boss to inflate sales for the current period so both of you can receive a bonus.

True

Considering the potential impact on others prior to making a decision is consistent with ___________ behaviour.

ethical

The commitment to being socially responsible in the first place takes away from profitability and decreased shareholder wealth.

False

Dogood Corp. would like its various stakeholders to be aware of their contributions to the community over the past year. Dogood might consider conducting a(n):

social audit

Purposefully understating your firm's income to avoid paying higher taxes is an example of:

illegal behaviour

Controlling is the function of management that involves designing the structure of the organization.

False

A balanced scorecard includes:

different types of measures used when controlling in a business

A(n) ____________ can show the various positions and the relationships between those positions within a company.

organizational chart

Success of an organization depends on management's ability to make timely decisions to work towards their goals and to adapt to the fast-changing business environment around them.

True

Which of the following statements best incorporates the elements of a SMART goal?

Decrease the number of product manufacturing defects by 25% in the next 6 months.

Companies like Microsoft have committed to acting with integrity and honesty, and to be open and respectful. These represent a company's:

values

Which of the following would be an activity performed as part of the organizing function of a manager?

assigning a co-op student to a team to perform a specific task

____________ is a model of funding which can raise money from a large number of people online to fund projects.

crowdfunding

Business incubators offer all of the following, EXCEPT:

exemption from city rules and regulations

When an intrapreneur launches a new product, they can take advantage of ____________.

the existing financial and human resources of their company

A company's business model is defined in the ____________ stage of the life cycle for an entrepreneurial venture.

introduction

Waterloo's Velocity is an example of a(n):

incubator

Jenna searches for established companies that need additional funding to expand. In return for her investment, she may become a part owner in the business. Jenna is as a(n):

venture capitalist

You're crafting a value proposition and are in the process of developing a profile for your customer. A description of outcomes or benefits they expect represent:

gains

Cynthia decided to quit her corporate job to launch her own independent business. Cynthia is an example of a(n):

entrepreneur

Decisions made around marketing, operations, human resources, finances, and accounting, will vary at the following business stages, EXCEPT:

survival

At the surface, a business model can suggest how a company intends to make money.

True

A service channel considers:

how to provide ongoing customer support after a sale

Patents cover new inventions or improvements to existing inventions, and gives the inventor the right to stop others from making the invention for the period of a patent which is typically 50 years.

False

A key partner for an auto manufacturer would include all of the following, EXCEPT:

their CEO