Modules 1-3 Practice Test Questions PDF

Modules 1-3 Practice Test Questions Notes & Suggestions for this Question Pool One technique is to complete most of your studying of the modules first, and then go through the question pool in slide show mode. Be sure to click through carefully in slide show mode so you reveal only the 4 p...

Modules 1-3 Practice Test Questions Notes & Suggestions for this Question Pool One technique is to complete most of your studying of the modules first, and then go through the question pool in slide show mode. Be sure to click through carefully in slide show mode so you reveal only the 4 potential answers, as the next click will reveal the correct answer Try not to use your notes, and to complete each question in approximately 1 minute to simulate the time frame you have for the mid term Each slide indicates which module the question is from in the top right  Test your knowledge Module 1 The United States has stopped some Canadian goods from entering the country because it said that the information on the labels was too small. This is an example of a(n):  A. non-tariff barrier. B. embargo. C. Import quota. D. Tariff. 33  Test your knowledge Module 1 U.S. firms that produce sophisticated military hardware are prohibited from exporting that equipment to unfriendly" governments, such as Iran. This complete ban on exporting sensitive technology to specific countries is an example of a(n): A. Boycott.  B. Embargo. C. Import quota. D. Tariff. 44  Test your knowledge Module 1 Companies such as McDonald's, Pizza Hut, and KFC, have entered the global market by offering investors the opportunity to set up: A. Joint ventures. B. Producer cartels. C. Multinational subsidiaries.  D. Franchises. 55  Test your knowledge Module 1 Japanese automobile producers sold more of their production overseas than they sold in Japan. Their business strategy emphasizes: A. Dumping B. Importing. C. Exporting. D. Licensing. 66  Test your knowledge Module 2 An unfavorable balance of trade occurs when the value of: A. exports exceed the value of imports. B. cash inflows are equal to the value of cash outflows.  C. imports exceeds the value of exports. D. imports equals the value of exports. 77  Test your knowledge Module 2 Provincial governments are responsible for which of the following? A. Telecommunications. B. Education.  C. Zoning requirements. D. Criminal Law. 88  Test your knowledge Module 2 The Bank of Canada lowers interest rates: A. On instructions from the Minster of Finance. B. To attract immigrants. C. To establish better fiscal policy.  D. To boost a weak economy. 99  Test your knowledge Module 2 All levels of government offer a variety of assistance programs to businesses. These include: A. government support with imports. B. grants and loans, consulting advice, and  information. C. fully paid employee wages. D. exemption from sales taxes for 5 years. 10 10  Test your knowledge Module 2 ____________ refers to the efforts of the federal government to keep the economy stable by increasing or decreasing taxes and/or government spending. A. Monetary Policy. B. Financial Policy. C. Income Policy.  D. Fiscal Policy. 11 11  Test your knowledge Module 2 What are Canadian Crown Corporations?  A. Government owned businesses. B. Businesses created as part of the National Policy. C. Businesses created as part of deregulation. D. Businesses owned by the queen or her immediate family. 12 12  Test your knowledge Module 3 Chris is an angel investor. This indicates that she: A. creates business incubators for startup Web- based firms. B. invests her own money in new businesses before  they sell stock publicly. C. is involved in providing startup money for charities and other non-profit organizations. D. provides assistance for struggling entrepreneurs. 13 13  Test your knowledge Module 3 Anthony, a small business owner, is considering marketing his product in Brazil. If he enters the Brazilian market, he is likely to face all of the following problems, EXCEPT: A. the heavy burden of bureaucratic paperwork. B. difficulties in obtaining adequate financing. C. the cultural differences between Canada and Brazil.  D. convincing foreign firms to do business with a small firm, rather than a large corporation. 14 14  Test your knowledge Module 3 When comparing various types of small businesses, the firms that are easiest to start tend to be those that: A. offer the greatest security. B. involve professional services, such as dentistry or veterinary medicine.  C. have the highest failure rates. D. have the greatest prospect of long-term growth. 15 15  Test your knowledge Module 3 The source of capital most often used by entrepreneurs is from: A. Bank loans. B. Venture capitalists.  C. Personal savings. D. Provincial and municipal governments. 16 16  Test your knowledge Module 3 Lamont wants to improve his chances to be a successful entrepreneur, so he has written a business plan. One advantage of developing this plan is that it: A. forces him to think carefully about all aspects of  his business. B. ensures financing will be available from angel investors. C. meets federal reporting requirements for Revenue Canada. D. will enable him to switch from a sole proprietorship to a corporation without any further paperwork. 17 17