Test Bank for the Future of Business 5th Canadian Edition by Althouse

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CHAPTER 1 - POLITICAL ENVIRONMENT

1. What are the three levels of government in Canada? a. federal, provincial, municipal b. federal, state, city c. country, province, city d. country, province, municipality ANSWER:

a

2. Which of the following does the federal government have authority over? a. defence b. education c. health care d. garbage ANSWER:

a

3. Which of the following does the federal government have authority over? a. health care b. education c. criminal law d. roads ANSWER:

c

4. Which of the following does the federal government have authority over? a. roads b. education c. health care d. employment insurance ANSWER:

d

5. Which level of government has authority over copyrights?

provin inci cial al a. prov b. municipal c. local d. federal ANSWER:

d

C o p y r ig h t C e n g a g e L e a r n i n g . P o w e r e d b y C o g n e r o .

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6. Which level of government has responsibility for fiscal policy? a. federal b. municipal c. civic

provin inci cial al d. prov a

ANSWER:

7. Which of the following does the provincial government have authority over? a. roads b. education c. trade regulation d. employment insurance ANSWER:

b

8. Which jurisdiction has responsibility for natural resources? a. federal

provin inci cial al b. prov c. municipal d. community ANSWER:

b

9. Which level of government sets the minimum wage? a. municipal b. federal c. territorial

provin inci cial al d. prov ANSWER:

d

10. Which of the following does the provincial government have authority over? a. criminal law b. health care c. trade regulation d. defence ANSWER:

b


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11. Which jurisdiction has the responsibility for education? a. federal


b

12. Which level of government controls labour laws? a. federal


b

13. Which of the following does the municipal government have authority over? a. education b. water c. trade regulation d. health care ANSWER:

b

14. Which of the following does the municipal government have authority over? a. health care b. sewers c. education d. trade ANSWER:

b

15. Which level of government is responsible for garbage pickup? a. federal b. municipal

provin inci cial al c. prov d. territorial ANSWER:

b


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16. Who is responsible for ensuring that public resources have been properly allocated? a. the government tax department b. the police c. the government auditor d. the government accountants ANSWER:

c

17. Which system ensures that the government is held accountable to you and me? a. the audit system b. the tax system c. the police system d. the bank system ANSWER:

a

18. The federal government of Canada collects money from all the provinces and then redistributes money from rich

provin provinces ces to to poorer poorer ones. ones. Albe Albert rtaa is makin making g a lot of mone money y right right now now due to to the incr increas eased ed produ producti ction on in the the Athabasca Tar Sands. Some of the tax money is going from Alberta to Quebec via the federal government. What term describes this? a. redistribution payments b. transfer payments c. transfer assistance d. rebalancing resource wealth ANSWER:

b

19. What is the name of one of the specific programs used to equalize the wealth across the country? a. Canada Equalization Transfer b. Canada Social Transfer c. Canada Education Transfer d. Canadian Province Balance ANSWER:

b

20. Which level of government controls bylaws? a. federal


c


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21. George Cholakis is a maple syrup farmer in Northern Ontario. As there are a lot of other maple syrup farmers in

Canada, the market is saturated. George wants to sell his maple syrup internationally but does not know how to go about it. He hears that the government will assist Canadian companies looking to export. Which level of government will assist Cholakis? a. federal provin inci cial al b. prov c. municipal d. city ANSWER:

a

22. Which of the following government agencies enforces the laws regulating unfair competition? a. Business Practices Bureau b. Fair Trade Agency c. Competition Bureau d. Anti-Monopoly Bureau ANSWER:

c

23. To stimulate competition and protect both consumers and workers, what does the federal government do? a. It places heavy taxes on companies in monopolistic competition. b. It creates business systems to meet the needs of all consumers. c. It creates regulations to intervene in the free market. d. It places limits on international trade in order to stimulate domestic production. ANSWER:

c

24. If you are taking courses or training programs that make you more employable, for which of the following federal

prog progra rams ms migh mightt you you be eli eligi gibl ble? e? a. tax rebate b. welfare c. employment insurance d. transfer payment ANSWER:

c


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25. Zahir Raman runs a road construction company and builds roads into people’s cottages in Ontario. This is only a

small portion of his business, though, as few cottagers can afford to build a private road. Who then would Raman rely on for most of his revenues? a. corporations b. individuals c. government d. not-for-profits c

ANSWER:

26. A patent gives inventors exclusive rights to their inventions for how long? a. 20 months b. 17 years c. 20 years d. the lifetime of the inventor plus 50 years ANSWER:

c

27. What is the requirement for an idea to be granted a patent under the Patent Act? a. applicable, new, and innovative b. unique, applicable, and useful c. new, unique, and useful d. novel, innovative, and applicable ANSWER:

c

28. Which of the following protects the original work of authors and artists (e.g., their books, photos, or cartoons)? a. a trademark b. a copyright c. the uniform commercial code d. a patent ANSWER:

b

29. Lucas writes a play in his English class and it is so good that his teacher recommends he publish it. Which of the

following will protect his work? a. a trademark b. a print right c. a copyright d. a patent ANSWER:

c


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30. Which of the following protects the Nike Swoosh and the Golden Arches of McDonald’s? a. a trademark b. a patent c. a copyright d. a commercially protected symbol ANSWER:

a

31. Ray and Tera are starting up their own family restaurant with the hopes of expanding it across the country. They

worked very hard on developing a corporate logo that represents the image of the restaurant. What should they get to protect their logo from getting copied? a. a copyright b. a patent c. a trademark d. an easement ANSWER:

c

32. Who owns the copyright of a cartoon character created by an employee of a company as part of his or her normal

job job resp respon onsi sibi bili liti ties es?? a. the employee who created the cartoon character b. the employer of the cartoon character’s creator c. all of the employees who worked on the cartoon character d. the union that represents the employee ANSWER:

b

33. What is the intent of a patent? a. to increase competition in the marketplace b. to reward innovation and hard work of inventors c. to slow the growth of monopolies d. to encourage copycat inventions ANSWER:

b


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34. What is a private wrong that results in physical or mental harm to an individual or results in damage to that person’s

propert property? y? a. a tort b. a punitive judgment c. a felony d. a misdemeanour ANSWER:

a

35. Rio Bravo Theme Park is known for its variety of roller coasters. Recently, it was reported that two cars on the

Macho Nacho roller coaster left the tracks, resulting in serious injuries to four riders. These riders are suing the theme park for damages, claiming that the maintenance procedures for the coasters were carelessly performed by the park’s staff. When hearing the lawsuits, the courts will seek to determine whether Rio Bravo Theme park could be whi which ch of of the the fol follo lowi wing ng?? a. guilty of a felony b. liable for a breach of contract c. guilty of a misdemeanour d. liable for an unintentional tort ANSWER:

d

36. What is a civil or private act that harms other people or their property? a. a civil wrong b. a tort c. a felony d. a misdemeanour ANSWER:

b

37. The judgment handed out in civil court typically entails which of the following? a. imprisonment only b. compensation for injury

public ic rep repri rima mand ndss c. publ d. a combination of fines and imprisonment ANSWER:

b


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38. What is the social movement designed to increase and strengthen the rights and powers of buyers in business

transactions? a. environmentalism b. capitalism c. socialism d. consumerism ANSWER:

d

39. What type of warranty is the one you receive in the box with your new DVD? a. an implied warranty b. an express warranty c. a uniform warranty d. a commercial warranty ANSWER:

b

40. Which of the following guarantees that the product you buy will conform to the customary standards of the

trade/industry? a. an implied warranty b. an express warranty c. a uniform warranty d. a commercial warranty ANSWER:

a

41. What does a warranty guarantee? a. The seller will replace or repair the product at no charge if the customer finds a cheaper substitute. b. The buyer has read and understood the information provided in the owners’ manual. c. Consumers will have access to a customer complaint resolution hot line. d. The product sold will be acceptable for the purpose for which the buyer intends to use it. ANSWER:

d

42. Which of the following holds a company responsible for negligence in the production, design, sale, or use of

product productss the company company mark markets ets?? breach of contrac contractt a. breach pricee disc discri rimi mina nati tion on b. pric c. unintentional harm responsibility

produc uctt lia liabi bili lity ty d. prod ANSWER:

d


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43. Which of the following holds a company liable for damages caused by a defective product even if the company was

unaware of the defect at the time of sale? a. network responsibility b. managerial liability

patent nt infr infrin inge geme ment nt c. pate d. strict product liability ANSWER:

d

44. Warren Tee was injured using a hair dryer manufactured by the Whoopee Electrical Products Company. Tee has

contacted a lawyer because he feels that Whoopee is responsible for his injury based on which legal principle? a. restricted endorsement b. fault-free obligations

patent nt infr infrin inge geme ment nt c. pate d. strict liability ANSWER:

d

45. Under the doctrine of strict product liability, a manufacturer can be held liable under which of the following

conditions? a. for any injury or damage caused by products that do not meet industry standards b. only if the company knowingly sold a hazardous product c. only if the company purposefully was negligent in the design or production of the product d. only if the company intentionally introduced a defective product ANSWER:

a

46. What does the Competition Act aim to ensure? a. no mergers of large corporations that restrict competition b. small businesses are treated the same as big businesses c. there are no monopolies d. competition is not cut-throat ANSWER:

c

47. What are taxes sometimes seen as? a. the price we pay to live in this country b. a necessary evil c. a civic duty d. a waste of money ANSWER:

a


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48. How can progressive income taxes best be described? a. Everyone pays the same tax rate percentage. b. Tax rates increase as income increases. c. Tax rates decline as income increases. d. The rich get more tax breaks. ANSWER:

b

49. What are tax rates that increase as one’s income increases? a. incremental b. regressive

progres essi sive ve c. progr d. flat c

ANSWER:

50. What type of income taxes do businesses pay?

progres essi sive ve a. progr b. flat c. regressive d. incremental ANSWER:

b

51. What are the four main types of taxes other than income taxes? a. gas, alcohol, sales, and property b. excise, property, sales, and alcohol

property, ty, payr payroll oll,, sales, sales, and and excis excisee c. proper property, ty, payro payroll, ll, sale sales, s, and GST GST d. proper ANSWER:

c

52. What term is used to describe the value upon which property taxes are based? a. assessed value b. fair value c. market value d. determined value ANSWER:

a


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53. Which level of government collects tax off the money you earn (income tax)?

provin inci cial al and and mun munic icip ipal al a. prov b. federal only c. federal and provincial

provin inci cial al only only d. prov ANSWER:

c

54. Which level of government collects the goods and services tax (GST)? a. federal

provin inci cial al b. prov c. municipal d. federal and provincial ANSWER:

a

55. Which province is the only one where there is no sales tax? a. Ontario b. British Columbia c. Quebec d. Alberta ANSWER:

d

56. A combination of the GST and the PST is referred to as which of the following? a. combined tax

joint sale saless tax tax b. joint c. goods and provincial tax d. harmonized tax ANSWER:

d

57. What are taxes on specific items like gasoline, tobacco, and gasoline? a. sales taxes b. disincentive taxes c. excise taxes

regressive taxes d. regressive ANSWER:

c


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58. What does Sustainable Development Technology Canada provide money for? a. creating technology to deal with climate change issues b. developing technology to sustain our food supply c. trying and creating new startup companies d. advancing Canada’s research programs across the country ANSWER:

a

59. What is a P3? a. contractual agreements between a public office and the private sector

public,, privat private, e, pers persona onall invest investmen ments ts poole pooled d toget together her b. public promot otio ion, n, publ public icit ity, y, and and pub publi licc rela relati tions ons c. prom profit, t, promo promoti tion, on, part partner nershi ship p d. profi ANSWER:

a

60. What type of projects are best used for public-private partnerships (P3s)? a. infrastructure b. factories c. schools

buildi ldings ngs d. bui ANSWER:

a

61. What does the Code of Conduct for Procurement try to ensure for both public servants and vendors? a. more transparency b. more taxes c. more bidders d. more competition ANSWER:

a

62. What is the Government of Canada’s primary training provider for Foreign Service? a. Canadian Foreign Service Institute b. Canadian Armed Forces c. United Nations d. Canadian School for Foreign Service ANSWER:

a


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63. Which department of the Government is responsible for Canada’s embassies around the world? a. Canadian Foreign Service Institute b. Foreign Affairs and International Trade c. International Affairs and Trade d. Canadian School for Foreign Service ANSWER:

b

64. Which position is responsible for a federal or provincial department’s day-to-day operations? a. minister b. deputy minister c. assistant minister d. head minister ANSWER:

b

65. Government taxation policies, called fiscal policy, have a certain flexibility. In times of a weak economy, taxes may

be lower lowered ed temp tempora orari rily ly to to stim stimula ulate te the the econo economy. my. a. True b. False ANSWER:

True

66. The federal government is responsible for money and banking, trade regulation, defence, and employment

insurance. a. True b. False ANSWER:

True

67. The provincial governments are responsible for banking, criminal law, and employment insurance. a. True b. False ANSWER:

False

68. The municipal governments are responsible for water, sewers, and waste collection. a. True b. False ANSWER:

True


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69. Municipalities use bylaws to regulate how businesses operate. a. True b. False ANSWER:

True

70. The federal government provides significant financial support to the provinces and territories in the form of transfer

payme payment nts. s. a. True b. False ANSWER:

True

71. The federal government controls international trade. a. True b. False ANSWER:

True

72. Labour laws are controlled by the municipal government. a. True b. False ANSWER:

False

73. A patent gives inventors exclusive rights to their inventions for 20 years. a. True b. False ANSWER:

True

74. A trademark gives exclusive legal protection to a name, symbol, or design that distinguishes the goods or services

of one seller from those of competitors. a. True b. False ANSWER:

True

75. The recording industry’s legal action against individuals who download music without paying involves the

infringement of a copyright. a. True b. False ANSWER:

True


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76. You’ve just finished composing a song that you believe will be the next big hit. Your next step is to apply for a

patent patent thr throug ough h the Cana Canadia dian n Intel Intellec lectua tuall Proper Property ty Offi Office. ce. a. True b. False ANSWER:

False

77. The Nike Swoosh and the McDonald’s Golden Arches are examples of corporate trademarks. a. True b. False ANSWER:

True

78. A tort is a private wrong that results in physical or mental harm to an individual or damage to that person’s

proper property. ty. a. True b. False ANSWER:

True

79. Consumerism is a social movement that seeks to increase and strengthen the rights and powers of buyers in

transactions with businesses. a. True b. False ANSWER:

True

80. The warranty you receive in the box with a DVD player is an express warranty. a. True b. False ANSWER:

True

81. The offer of a 3-year or 36,000-mile warranty by a car dealer on a new vehicle is an example of an implied

warranty. a. True b. False ANSWER:

False

82. The sole purpose of Canada’s federal Competition Act is to ensure that all advertising done by corporations meets

government standards. a. True b. False ANSWER:

False


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83. PEI is the only province that does not collect provincial sales tax. a. True b. False ANSWER:

False

84. The GST is a provincial sales tax. a. True b. False ANSWER:

False

85. P3s are a contractual agreement between a public office and the private sector. a. True b. False ANSWER:

True

86. Canada’s federal government has decreased its investment in clean energy projects as there are doubts about

global warming. a. True b. False ANSWER:

False

87. The Government of Canada’s training provider for federal service is the Canadian Foreign Service Institute. a. True b. False ANSWER:

True

88. Explain the difference between monetary and fiscal policy and explain how they are formulated. ANSWER:

Fiscal policy refers to government efforts to influence the economy through taxation and spending decisions that are designed to encourage growth, boost employment, and curb inflation. This type of policy policy is is enacte enacted d by the the governm government ent thro through ugh the the budge budgett proces process. s. Monetary policy refers to actions that shape the economy by influencing interest rates and the supply of money. The Bank of Canada manages Canadian monetary policy. It does so by controlling the amount of reserves banks have available for making loans.

89. Describe some of the areas that the federal government has authority over. ANSWER:

Money and banking, trade regulation, external relations, defence, criminal law, employment insurance, copyrights and transportation. transportation.


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90. Describe some of the areas that the provincial government has authority over. ANSWER:

Labour laws, education, health and welfare, natural resources, and protection of property, civil rights, and the environment.

91. What is a transfer payment? ANSWER:

Transfer payments are a redistribution of money from the wealthier provinces like Alberta to the poorer ones like some in the Maritimes so that all Canadians can be provided with the same level of services such as health care.

92. Why does the government provide incentives to individuals? ANSWER:

Government incentives encourage individuals to take courses to upgrade their skills or provide student loans to make postsecondary education more accessible. In that way people can get better jobs that will help the economy and bring in more tax revenue for the government.

93. Compare and contrast the protection offered by patents, copyrights, and trademarks. ANSWER:

Patents are for inventions; copyrights are for works of art, music, or literature; and trademarks are for exclusive designs, names, or distinctive marks that a manufacturer uses to identify its goods in the marketplace. Patents provide inventors exclusive rights to their inventions for 20 years from the date they file the patent patent appl applica icati tions ons wit with h the Cana Canadia dian n Intel Intellec lectua tuall Proper Property ty Offi Office. ce. Pate Patent nt owner ownerss have have the righ rightt to sel selll or license the use of a patent to others. Copyrights protect a creator’s ownership rights to materials such as books, articles, photos, music, paint paintin ings gs,, and cart cartoon oons. s. Copy Copyri right ghtss file filed d with with the the gover governm nment ent provi provide de prot protect ectio ion n for for the the life lifeti time me of of the the author or artist plus 50 years, which can be passed on to the creator’s heirs. A trademark is a legally protected name, symbol, or design that identifies the goods or services of one seller and distinguishes them from those of competitors. Trademarks generally belong to the owner forever, as long as they are properly registered and renewed every 10 years.

94. Why was the Competition Act established? ANSWER:

To protect consumers from things like conspiracies, monopolies, and mergers.

95. What is the difference between a progressive tax and a flat tax? ANSWER:

A progressive tax like personal income tax sees the rate go up the more an individual’s income increases whereas a flat tax, like income taxes for business, means the same rate is applied to everyone.


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96. What are sales taxes charged on? ANSWER:

Sales taxes are charged on goods when they are sold and are a percentage of the sales price. The rates vary from province to province.

97. Why is Quebec receiving $29.5 million from Sustainable Development Technology Canada? ANSWER:

To money is to pilot a demonstration project aimed at lowering costs associated with electric vehicle use.

98. Why is Canada using so many P3 partnerships (over 214 in 2014)? ANSWER:

P3s allow the public to delay payments until the project is operational and the money is then paid over the long term. Also the costs are known before the project starts, which protects the public from unexpected costs. The benefits for the private sector are greater roles in design, building, and financing compared with traditional projects.

99. What does the code of conduct for procurement try to ensure for both public servants and vendors? ANSWER:

The goal of the code of conduct for procurement is more transparency in marketing, operations, and corporate social responsibility from Canadian businesses and government.


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Test Bank for the Future of Business 5th Canadian Edition by Althouse

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