IBM160 - Midterm Test - Part 1 - Extended Time

A business is any activity that provides goods and services while operating:

• machinery

• revenue

• at a profit

• with social goals

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:

• market makers.

• economic environment.

• stakeholders.

• social mentors.

Offshoring means

• sourcing parts outside of the country.

• assigning various functions to outside organizations.

• having a limited life.

• being controlled by a board of directors.

The buying and selling of goods and services online is known as what?

• IOU transactions.

• E-commerce.

• B2B transactions.

• Y2K transactions.

Health care, legal advice, transportation, and other intangible products are provided by the:

• global sector

• service sector

• industrial sector

• high-wage sector

Two important changes to the global environment of business in recent years are:

• foreign exchange & free trade.

• growth of international competition & free trade.

• growth of international competition & low prices.

• high quality goods & prices.

Businesses that produce and sell tangible products such as appliances, furniture, and clothing are part of the:

• manufacturing sector.

• knowledge-based sector.

• service sector.

• production sector.

Patrick's Products has a manufacturing plant near Calgary. The plant specializes in compact washers and dryers for countries in which consumers have less living space. Patrick's Products participates in the global market through:

• importing

• Exporting

• dumping

• outsourcing

___________ for a country occurs when it has a monopoly on producing a product or is able to produce it at a cost below that of all other countries.

• Absolute advantage

• Comparative advantage

• Dumping advantage

• Complete advantage

In which of the following products does Canada enjoy a comparative advantage in global trading?

• Computer chips

• iPods

• Shoes

• Forestry products