Business Environment
Midterm Exam
Course Introduction
Business Environment is a comprehensive course that explores the various internal and external factors influencing organizational operations and decision-making. Students will examine economic, political, legal, technological, and sociocultural forces that shape the business landscape both locally and globally. The course emphasizes the dynamic nature of the business environment, the ongoing interaction between organizations and their surroundings, and the strategies businesses adopt to respond to opportunities and challenges. Through case studies and real-world examples, students develop analytical skills critical for understanding and navigating the complexities of the modern business world.
Recommended Textbook
Business Essentials 9th Edition by Ronald
J. Ebert
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16 Chapters
2037 Verified Questions
2037 Flashcards
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Page 2
Chapter 1: The Us Business Environment
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) Which of the following best gives the meaning of the term gross domestic product?
A) total quantity of goods and services produced by an economic system
B) total quantity of goods that a country's citizens can purchase with the currency used in their economic system
C) conditions of the economic system in which an organization operates
D) total value of all goods and services produced within a given period by a national economy through domestic factors of production
E) indicators of available goods and services produced within a specific domestic market
Answer: D
Q2) Gross domestic product (GDP) refers to the total value of goods and services produced by a national economy within a given period regardless of where the factors of production are located.
A)True
B)False
Answer: False
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3
Chapter 2: Business Ethics and Social Responsibility
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) What is the purpose of a written code of ethics?
Answer: A written code of ethics formally announces a company's intent to do business in an ethical manner.
Explanation:A company's commitment to ethical business practices is formalized through a written code of ethics.
Q2) Which statement would people in favor of socially responsible business most likely advocate?
A) Maximizing profits is the core goal of the corporation.
B) The corporation is part of the civic world.
C) Other agencies have the skill to develop social programs.
D) Vast corporate resources are being overused.
E) Civic responsibility needs to be centralized.
Answer: B
Q3) A conflict of interest occurs when an activity may benefit the individual to the detriment of his or her employer.
A)True
B)False
Answer: True
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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) Discuss four sources of financing for starting up a small business.
Answer: Financing for starting up a new business may come from personal resources, bank loans, venture capital firms, or small-business investment companies (SBICs). The most important source of financing for a small business is the owner's personal resources. Bank loans are a second source of financing. Venture capital firms invest money in a business in return for stock. These firms are groups of small investors seeking to make profits on companies with rapid growth potential. SBICs take a more balanced approach in their choices than do venture capital firms. SBICs are federally licensed to borrow money from the SBA to invest in or lend to small businesses.
Explanation:Financing for starting up a new business may come from personal resources, bank loans, venture capital firms, or SBICs.
Q2) In which business sector are cooperatives still important?
A) manufacturing
B) automotive
C) public utilities
D) agriculture
E) health care
Answer: D
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Chapter 4: The Global Context of Business
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) Saudi Arabian oil is an example of an absolute advantage.
A)True
B)False
Q2) The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.
A)True
B)False
Q3) Which of the following, if True, would strengthen the argument for venturing into the Chinese market?
A) The affluent Chinese middle class is large and is quick to adopt western lifestyles and product preferences.
B) Growth in the United States cereal market continues to be strong.
C) The Chinese fixed exchange rate regime may change, which could mean a stronger Yuan that would affect Chinese exports.
D) Chinese food preferences are very slow to evolve.
E) China recently signed a free-trade agreement with the Association of Southeast Asian Nations (ASEAN).
Q4) Under what circumstances would telephone technology be considered a comparative advantage in Finland?
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Chapter 5: Business Management
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) 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
Q2) Sometimes a corporation buys and operates multiple businesses in compatible industries as part of its corporate strategy. This is an example of what type of strategy?
A) customer-driven diversification
B) unrelated diversification
C) e-partnering
D) strategic diversification
E) complex collaborations
Q3) Donna is especially concerned about what her competitors are doing. Why would an environmental analysis help her?
Q4) Define the term corporate culture.
Q5) Describe Best Buy's "centricity" initiative.
Q6) What is a mission statement?
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Chapter 6: Organizing the Business
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146 Flashcards
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Sample Questions
Q1) To provide a state-of-the-art classroom and instructional technology, Shell Oil recently purchased an executive conference center north of Houston. What type of organization does this purchase reflect?
A) team
B) virtual
C) learning
D) acquisitive
E) traditional
Q2) List and describe three advantages of a divisional structure.
Q3) Discuss the difference between delegation and accountability.
Q4) What is the power to make the decisions necessary to complete a task called?
A) delegation
B) specification
C) authority
D) responsibility
E) accountability
Q5) For the delegation process to work smoothly, responsibility and authority must be equivalent.
A)True
B)False
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Chapter 7: Operations Management and Quality
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148 Verified Questions
148 Flashcards
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Sample Questions
Q1) Differentiate between goods production and service operations.
Q2) Which term is defined as the combination of "characteristics of a product or service that bear on its ability to satisfy stated or implied needs"?
A) quality
B) production
C) quantity
D) clarification
E) capacity
Q3) Which term refers to the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services?
A) outsourcing
B) reengineering
C) controlling
D) scheduling
E) warehousing
Q4) Define the term production or operations.
Q5) What advantages could Sky Scooters expect from switching to a just-in-time production system?
Q6) Explain time, place, and form utility.
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Chapter 8: Employee Behavior and Motivation
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) According to research, emotional intelligence cannot be developed or learned.
A)True
B)False
Q2) Which of the following lists Maslow's Hierarchy of Human Needs in order, starting with the most basic?
A) physiological, security, social, esteem, self-actualization
B) social, security, physiological, esteem, self-actualization
C) physiological, self-actualization, security, esteem, social
D) physiological, esteem, security, social, self-actualization
E) esteem, self-actualization, social, physiological, security
Q3) Participation and empowerment work more effectively in large firms than in small firms.
A)True
B)False
Q4) Organizational commitment reflects an individual's identification with the organization and its mission.
A)True
B)False
Q5) According to the two-factor theory, how should managers enhance motivation?
Page 10
Q6) Discuss modified work schedules and how they increase job satisfaction.
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Chapter 9: Leadership and Decision Making
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) Which of the following best describes employee-focused leader behavior?
A) concentration on both the work quality and work quantity of employees
B) concentration on both the well-being and work quality of employees
C) concentration on both the satisfaction and work quantity of employees
D) concentration on both the satisfaction and the well-being of employees
E) concentration on both the work quantity and the well-being of employees
Q2) Describe a situation in which a leader would choose a more transactional approach to her leadership over a more transformational one.
Q3) When developing the human resources for achieving an agenda, what do managers focus on?
A) establishing direction
B) controlling and problem solving
C) organizing and staffing
D) aligning people
E) motivating and inspiring
Q4) Strategic leadership is a leader's ability to understand the complexities of both the organization and its environment.
A)True
B)False
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Chapter 10: Human Resource Management and Labor Relations
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) In recent years, some companies have run into problems because they have not set aside enough money to cover the retirement funds they have agreed to provide.
A)True
B)False
Q2) What is the name given to an employee who is hired on something other than a permanent or full-time basis?
A) knowledge expert
B) contingent worker
C) technical employee
D) supervisory manager
E) managing director
Q3) The increased demand for knowledge workers will require firms to use extra measures, such as higher salaries and signing bonuses, to attract qualified employees.
A)True
B)False
Q4) Other than the union tactic chosen, describe the other options that were available to the union.
Q5) Distinguish between internal and external recruiting.
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Chapter 11: Marketing Processes and Consumer Behavior
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) Why do smaller companies have advantages over larger competitors when it comes to the distribution aspect of the marketing mix?
Q2) What type of marketing is a "loyalty banking" program an example of?
A) industrial marketing
B) relationship marketing
C) social marketing
D) economic marketing
E) consumer marketing
Q3) When a wholesaler or retailer develops a brand name and has the manufacturer place that name on the product, what is that product name called?
A) national brand
B) private brand
C) luxury brand
D) licensed brand
E) manufacturer brand
Q4) How do expense items differ from capital items?
Q5) What is branding? Give an example to clarify your response.
Q6) Describe the three types of brand names and give an example of each.
Q7) Explain the elements that comprise the marketing environment.
Page 13
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Chapter 12: Pricing, Distributing, and Promoting Products
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) Which of the following best characterizes the difference between the roles of advertising and personal selling in the promotional mix of a firm?
A) Advertising is, at its worst, very expensive with little return, whereas personal selling is also very expensive, at its worst, but with better returns.
B) Advertising, at its best, targets a specific audience about a product, whereas personal selling, at its best, is always dependent on the clients that a seller has.
C) Advertising involves public relations with the overall population of consumers, whereas personal selling involves personalized relationships with select individuals.
D) Advertising is a relatively new method of promotion, whereas personal selling is the oldest method of promotion.
E) Advertising is nonpersonal in its communication about a product, whereas personal selling is highly individualized.
Q2) What would the argument for pricing the Superior VI lower than the Superior V be?
Q3) Explain the primary difference between a wholesaler and a sales agent.
Q4) What limits the economical use of railroads for transportation?
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Chapter 13: Information Technology for Business
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) Which component directs the computer to the correct resources to use and how to use them?
A) an application program
B) system software
C) an electronic spreadsheet
D) a database
E) management information systems
Q2) Through data mining, a manager can access demographic information on customers, for example, in order to decide which advertising media may be best to use.
A)True
B)False
Q3) Which of the following is at issue between Marquand and Stevenson?
A) whether online selling is an important factor in business today
B) whether information technology has made a significant difference to businesses
C) whether doing business is significantly helped by online communications
D) what the most important effect of information technology has been on business
E) what has changed in business since the advent of the latest information technology
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Chapter 14: The Role of Accountants and Accounting Information
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117 Verified Questions
117 Flashcards
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Sample Questions
Q1) What distinguishes the two most commonly used categories of owners' equity?
A) the amount of equity within each type of asset-current versus fixed and intangible
B) the financial form of the equity-cash investments versus stock and bond investments
C) the source of the equity-investments versus earnings
D) the use of the equity-invested versus saved
E) the age of the equity-older investments and earnings versus newer investments and earnings
Q2) Which of the following, if True, would strengthen the case that Streeter & Sons is profitable?
A) The company's sales revenue is low relative to its cost of goods sold.
B) The company's cost of goods sold is low relative to its sales revenue.
C) The company has had the same number of customers for some time.
D) The company has had the same owners over its lifetime.
E) The company's selling expenses are high relative to its administrative expenses.
Q3) Give three examples of management advisory services.
Q4) What is the accounting equation?
Q5) For what types of organizations do forensic accountants work?
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Chapter 15: Money and Banking
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) In which of the following financial institutions would all of the people who allow it to hold their funds be able to participate in major decision-making?
A) commercial bank
B) savings and loan association
C) savings institutions
D) credit union
E) pension fund
Q2) Which of the following, if True, would strengthen the case for Munschausen's seeking to acquire capital by debt financing?
A) Munschausen will have very slim profit margins in its international sales.
B) Munschausen will hire many new salespeople to work internationally.
C) Munschausen will have a steady stream of revenue from its international sales.
D) Munschausen will be launching several new product lines soon.
E) Munschausen will have to specially train its employees to work internationally.
Q3) Gavin's district, like many others, is showing severe signs of inflation. What might his committee recommend to the Federal Reserve System in order to curb the current trend?
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Chapter 16: Managing Finances
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104 Flashcards
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Sample Questions
Q1) Tonio has some stocks and is carefully watching the stock market. Which of the following should he pay attention to in order to find out the performance of the largest companies?
A) Standard & Poor's 500
B) the NYSE index
C) Dow Jones Industrial Average
D) Moody's Stock List
E) the NASDAQ
Q2) Municipal bonds may be issued by federal, state, or local governments.
A)True
B)False
Q3) An investment bank operates in the secondary securities market.
A)True
B)False
Q4) Bankruptcy is the court-granted permission not to pay some or all debts.
A)True
B)False
Q5) When giving an unsecured loan, what might a bank require?
Q6) Explain the principle of compound growth.
Q7) When are corporate bonds attractive to a firm?
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