Business Environment
Exam Solutions
Course Introduction
Business Environment explores the various external and internal factors that influence an organizations operations and decision-making processes. This course examines economic, political, legal, technological, social, and cultural forces, providing students with an understanding of how these elements shape business strategies and performance. Through case studies and real-world examples, students learn to analyze the dynamic relationship between businesses and their environments, enabling them to anticipate challenges and capitalize on opportunities in a rapidly changing world.
Recommended Textbook
Business Essentials 10th Edition by Ronald
J. Ebert
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17 Chapters
2016 Verified Questions
2016 Flashcards
Source URL: https://quizplus.com/study-set/625 Page 2
Chapter 1: The USBusiness Environment
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) If Expert Electronics cuts the prices for its computer system,how will competitors respond?
Answer: In an oligopoly,when one firm cuts prices or offers incentives to increase sales,the others usually protect sales by doing the same.
Q2) 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
Q3) Based on the concepts of demand and supply,how is Expert Electronics pricing its computer systems?
Answer: It appears that Expert Electronics is pricing its computers at the equilibrium price,the intersection of the demand and supply curves.At the equilibrium price,the quantity of goods demanded and the quantity of goods supplied is equal.
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Chapter 2: Understanding Business Ethics and Social Responsibility
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) Tyrone,the president of an architectural firm,was faced with a difficult decision when asked to decrease the portion of his company's budget designated to help construct new homeless shelters.After considering his personal ethics and seeking the advice of coworkers,Tyrone decided he would not cut these funds-even though his decision would mean the company could not immediately move forward on another initiative. Caleb serves on the ethics committee at Tyrone's company.He disagrees with and is upset about Tyrone's decision.Based on this information,which of the following do Caleb and Tyrone most likely disagree about?
A) marketing issues
B) ethical sourcing
C) social auditing
D) corporate philanthropy
E) environmental protection
Answer: D
Q2) What might the general public begin to think about MKD's responsibilities toward the environment?
Answer: MKD's quick response-or lack of one-will determine the public's perceptions of it.Timing is critical at this point.
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Page 4
Chapter 3: Entrepreneurship, New Ventures, and Business Ownership
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145 Verified Questions
145 Flashcards
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Sample Questions
Q1) Low start-up costs and tax benefits are advantages of sole proprietorships. A)True
B)False
Answer: True
Q2) Entrepreneurs often have more than one goal for starting a business and becoming self-employed.Which of the following reasons is the LEAST common goal of entrepreneurs?
A) to seek independence and be their own boss
B) to earn a comfortable living for a period of time
C) to grow and expand a current business
D) to meet community or social obligations
E) to provide for their financial needs
Answer: D
Q3) Assuming the farm is organized as a private corporation,what are the disadvantages?
Answer: The disadvantages of a private corporation include significant start-up costs and double taxation,in which profits are taxed at corporate and individual levels.
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Page 5
Chapter 4: Understanding the Global Context of Business
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) The ultimate form of a quota is a tariff.
A)True
B)False
Q2) Globalization refers to the process by which countries around the world are becoming more self-sufficient.
A)True
B)False
Q3) A comparative advantage exists when a country can produce something more cheaply and/or of higher quality than any other country.
A)True
B)False
Q4) What are the three goals of the World Trade Organization (WTO)?
Q5) Which statement is true regarding independent agents?
A) They represent one firm at a time.
B) They usually specialize in a particular product.
C) They act as sales representatives.
D) They are usually based at domestic offices.
E) They do not monitor or address customer satisfaction.
Q6) Explain a floating exchange rate.
Q7) What are the advantages and disadvantages of globalization?
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Chapter 5: Managing the Business
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123 Verified Questions
123 Flashcards
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Sample Questions
Q1) Summarize for Donna the difference between conceptual skills and technical skills.
Q2) Which kind of strategy takes place at the level of the product line and focuses on a firm's competitive position?
A) functional
B) business
C) local
D) fundamental
E) environmental
Q3) Comparing actual performance against standards is an example of which function of the management process?
A) planning
B) organizing
C) leading
D) controlling
E) strategizing
Q4) What is the difference between a goal and a strategy?
Q5) It is not possible to change an organization's corporate culture.
A)True
B)False
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Chapter 6: Organizing the Business
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) At McDonald's,most advertising is handled at the corporate level,and any local advertising must be approved by a regional manager.What kind of organization is McDonald's demonstrating?
A) authoritarian
B) committee
C) decentralized
D) centralized
E) team
Q2) Which statement about staff responsibility is TRUE?
A) It is likely to include those employees involved in the production of products.
B) It is not likely to include those who provide services to managers.
C) It is linked directly to delivery of a product.
D) It is clearly different from line authority.
E) It is not related to the work of managers.
Q3) Departmentalization refers to the process of grouping jobs into logical units.
A)True
B)False
Q4) What is the difference between responsibility and authority?
Q5) List three factors that may affect a manager's span of control.
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Chapter 7: Operations Management and Quality for Producing Goods and Services
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142 Verified Questions
142 Flashcards
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Sample Questions
Q1) When Dell Inc.shares information to improve the overall flow through a system composed of companies working together,it is engaging in which of the following?
A) distribution chain management
B) total quality management
C) supply chain management
D) service channel analysis
E) supplier selection analysis
Q2) In operations control,production managers monitor production performance by which method?
A) comparing results with detailed plans and schedules
B) checking on each worker on the production floor
C) observing activities from a platform above the workers
D) constantly talking with employees involved
E) performing spot checks of worker performance
Q3) What changes can be expected in General Motors and Chrysler's distribution networks as a result of leaner operations?
Q4) Firms that make only tangible products are engaged in goods production.
A)True
B)False
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Chapter 8: Employee Behavior and Motivation
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) Alexus,a manager,decides to increase the morale of his team by giving more conspicuous praise for work done well.Which of the following,if true,would likely make this strategy ineffective?
A) Alexus's employees are already receiving effective praise from their co-workers.
B) Alexus's employees feel that their salaries are below industry standard.
C) Alexus's employees feel that they are not living up to their full potential.
D) Alexus's employees are already being paid very well by industry standards.
E) Alexus's employees indicate that they are satisfied with their physical working environment.
Q2) Which of the following theories focuses on people evaluating their treatment by the organization relative to the treatment of others?
A) equity theory
B) hierarchy of needs
C) expectancy theory
D) goal-setting theory
E) X and Y theory
Q3) Discuss modified work schedules and how they increase job satisfaction.
Q4) How can managers minimize the chance of workplace violence?
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Page 10
Chapter 9: Leadership and Decision Making
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) Escalation of commitment is the extent to which a decision maker is willing to gamble when making a decision.
A)True
B)False
Q2) Management is defined as the processes and behaviors used to motivate,inspire,and influence the behaviors of others.
A)True
B)False
Q3) What variables in the scenario indicate that a situational approach to leadership may be advisable?
Q4) Based on the descriptions above,Tim Raitt and J.C.Kahn-Tinn would MOST likely disagree about the answer to which of the following questions?
A) Is effective leadership essential for strong business performance?
B) Are there any characteristics that many effective leaders have in common?
C) Could having a personality type be an advantage in one leadership context and a disadvantage in another?
D) What is the most appropriate definition of "effective leadership"?
E) What percentage of leaders are effective leaders?
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Chapter 10: Human Resource Management and Labor Relations
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) Jean's paycheck is calculated from the number of hours worked during the week times her hourly rate.What type of system is used to pay Jean?
A) gainsharing
B) salary
C) profit sharing
D) wage
E) incentive
Q2) What is the process by which union leaders and managers negotiate common terms and conditions of employment for the workers represented by unions?
A) striking
B) picketing
C) informational gathering
D) collective bargaining
E) compensation planning
Q3) How do human resource managers use job analysis for human resource planning?
Q4) What options are available to management when contract negotiations break down?
Q5) What is an impasse in labor relations?
Q6) Explain the meaning of workforce diversity.
Q7) What are the two types of sexual harassment as defined by the courts? Page 12
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Chapter 11: Marketing Processes and Consumer Behavior
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Accessing a Web site in search of magazine articles about a product before its purchase is an example of what part of the consumer buying process?
A) post-purchase evaluation
B) problem-solving
C) information seeking
D) purchasing the product
E) recognizing a need
Q2) What part of the marketing mix includes communicating information about products?
A) product
B) promotion
C) price
D) place
E) psychographics
Q3) Explain how marketers identify different market segments.
Q4) Why is product placement important?
Q5) Explain the difference between demographic variables and psychographic variables.
Q6) Discuss the issues of international promotion.
Q7) Why is product development a long and expensive process?
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Chapter 12: Developing and Pricing Products
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Which of the following costs refers specifically to those that are unaffected by the quantity of a product sold or produced?
A) annual costs
B) variable costs
C) fixed costs
D) marginal costs
E) market-adjusted costs
Q2) Describe the three types of brand names and give an example of each.
Q3) What steps in the development process should Ginny and RJ complete before they commercialize ComicalYou?
A) business analysis and test marketing
B) product ideas and screening
C) screening and prototype development
D) product ideas and prototype development
E) concept testing and prototype development
Q4) If prices are set too high,the company will make a large profit on each item,but will sell fewer units.
A)True
B)False
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Chapter 13: Distributing and Promoting Products
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following BEST describes department stores?
A) A department store is a large product line retailer organized into smaller, convenience-focused components.
B) A department store is a large product line retailer organized into smaller, bargain-focused components.
C) A department store is a large product line retailer organized into smaller, producer-focused components.
D) A department store is a large product line retailer organized into smaller, product-focused components.
E) A department store is a large product line retailer organized into smaller specialty stores.
Q2) A marketer seeking to reach a highly targeted audience would probably get better results from Internet advertising than from newspaper advertising.
A)True
B)False
Q3) Why might Superior wish to use a wholesaler rather than selling directly to retailers?
Q4) Explain the difference between an electronic storefront and a cybermall.
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16
Chapter 14: Information Technology (IT)for Business
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) Why might businesses want to analyze data that reveal what consumers do in the marketplace?
A) to be able to send them tailor-made advertisements
B) to be able to close the customer service department
C) to be able to reduce production costs
D) to be able to stabilize employee turnover
E) to be able to manage long-term costs
Q2) Worldwide's Vice President for Marketing is planning to fly in his eight area sales managers for a yearly planning session.The company's Vice President for Finance complains that Worldwide is in a weak cash position and looks to Bill for a technological alternative to Ralph's planning session.What should Bill suggest?
Q3) Microsoft's Live Messenger and IBM's Visualization Data Explorer are examples of groupware.
A)True
B)False
Q4) An incoming message has not passed the company's security policy.Explain what has most likely happened.
Q5) How can Worldwide benefit from enterprise resource planning (ERP)?
Q6) Identify the threats and risks information technology poses on businesses.
Page 17
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Chapter 15: The Role of Accountants and Accounting Information
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) Which of the following terms refers to the comprehensive system for collecting,analyzing,and communicating financial information?
A) bookkeeping
B) accounting
C) controlling
D) auditing
E) budgeting
Q2) Which of the following,if true,would support the position that Julie should consider a specialty field in accounting?
A) Julie wants to eventually pursue an MBA degree.
B) Colleges have different policies on whether specialty accounting courses are required.
C) Julie is interested in financial crimes.
D) Julie is interested in helping a nonprofit organization.
E) Julie wants to work directly for a private company.
Q3) Rolanda suggests that,even with the negative owners' equity,this business might still be worth buying.What other indicators within the auditor's report should they consider for this decision?
Q4) What two sources of capital make up owners' equity?
Page 18
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Chapter 16: Understanding Money and the Role of Banking
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) Which of the following statements BEST explains how financial institutions create money?
A) By opening new checking accounts and giving more people access to readily available cash, financial institutions expand the money supply.
B) By issuing money through government contracts, financial institutions expand the money supply.
C) By taking deposits and loaning out these funds, financial institutions expand the money supply.
D) By collecting interest on its accounts through investments, financial institutions expand the money supply.
E) By giving interest from its accounts to its clients, financial institutions expand the money supply.
Q2) Which of the following has a fixed term?
A) demand deposits
B) time deposits
C) money market mutual funds
D) credit card accounts
E) savings accounts
Q3) What are the components of the M-2 money supply?
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Page 19
Chapter 17: Managing Business Finances
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) Hugh is an investor who opts for no-risk U.S.Treasury Bills and intermediate-term high-grade corporate bonds.What kind of investor is Hugh?
A) professional
B) aggressive
C) amateur
D) conservative
E) sporadic
Q2) Diamond Electronics has ascertained that it is has positive working capital.Which of the following must be true of Diamond Electronics?
A) The firm's current liabilities are large enough to pay off current assets.
B) The firm may need to borrow money from a commercial bank.
C) The firm's current assets are large enough to pay off current liabilities.
D) The firm does not need to issue stock.
E) The firm would be a bad risk for any investor to consider.
Q3) Initial public offerings (IPOs)are the first sale of a company's stock to the general public and are a major source of funds that fuel continued growth for many firms. A)True B)False
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