Business Environment
Practice Questions
Course Introduction
Business Environment explores the external and internal factors that influence the operations, strategies, and performance of businesses. The course examines economic, social, technological, political, and legal environments, offering students insights into how these elements shape business decisions and competitiveness. Through case studies and current events, students analyze the dynamic interplay between businesses and their environments, developing skills to anticipate challenges and seize opportunities in the ever-evolving global marketplace.
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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Chapter 1: The Us Business Environment
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) Economic indicators help to assess the performance of an economy.
A)True
B)False
Answer: True
Q2) Which of the following, if True, would strengthen the argument for competing in the Chinese market?
A) Changes in exchange rates can affect the value of sales made in different countries.
B) Even global brands typically choose to tailor their offerings according to the tastes of consumers in different countries.
C) The Big Bite Burger has a higher selling price than other items on The Hungry Cow's menu, but it is not the most profitable item because of the cost of its ingredients.
D) The Hungry Cow's research indicates that reaching new customers in domestic markets will be more expensive than doing so in emerging markets.
E) Chinese companies tend not to pursue the franchise option when attempting to expand into other countries.
Answer: D
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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) Which of the following has NOT been identified as a basic consumer right?
A) a right to safe products
B) a right to low prices
C) a right to be heard
D) a right to choose what they buy
E) a right to be informed about a product
Answer: B
Q2) What is likely the single most effective step that a company can take to set ethical standards?
A) Offer large cash awards for whistle-blowing.
B) Suggest that employees take ethics training.
C) Post ethical rules on bulletin boards.
D) State that the workplace values diversity.
E) Demonstrate support from top management.
Answer: E
Q3) The best stance toward social responsibility a company can take is a proactive one.
A)True
B)False
Answer: True
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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) Explain limited liability in a corporation.
Answer: Limited liability is the legal principle holding investors liable for a firm's debts only to the limits of their personal investment in it.
Explanation:The biggest advantage of corporations is limited liability: Investor liability is limited to personal investment (through stock ownership) in the corporation. In the event of failure, the courts may seize and sell a corporation's assets but cannot touch the investors' personal possessions.
Q2) Describe the three distinct bodies of corporate governance that are specified in a corporation's bylaws.
Answer: Stockholders are the owners of a corporation who buy shares of ownership. The board of directors is a group of people elected by stockholders to oversee the management of the corporation. Corporate officers are top managers hired by the board to run the corporation on a day-to-day basis.
Explanation:Corporate governance covers the roles of shareholders, directors, and other managers in corporate decision making and accountability.
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Page 5
Chapter 4: The Global Context of Business
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) Revenue tariffs are primarily designed to discourage the importation of foreign products.
A)True
B)False
Q2) Nokia is a dominant market player in its industry. What are some risks that Nokia might face if it engages in a strategic alliance with a foreign company?
Q3) Which of the following denotes the practice of protecting domestic business at the expense of free market competition?
A) fair trade
B) balanced trade
C) free trade
D) market liberalism
E) protectionism
Q4) The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.
A)True
B)False
Q5) What is the difference between balance of trade and balance of payments?
Q6) How has NAFTA influenced international trade?
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Chapter 5: Business Management
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) At the end of the month, Donna compares actual sales to the goal that she set during the planning phase. Which of the management functions best describes this activity? Why is this important?
Q2) Which of the following best describes a mission?
A) an objective that a business hopes and plans to achieve
B) a broad set of organizational plans for implementing decisions made for achieving organizational goals
C) the shared experiences, stories, beliefs, and norms that characterize an organization
D) an organization's statement of how it will achieve its purpose in the environment in which it conducts business
E) an organization's competitive standing in the marketplace
Q3) What is a mission statement?
Q4) Long-term goals are derived directly from a firm's mission statement.
A)True
B)False
Q5) Contingency planning seeks to identify how a company will respond to change.
A)True
B)False
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Chapter 6: Organizing the Business
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146 Flashcards
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Sample Questions
Q1) Decentralization works best in a complex, rapidly changing environment.
A)True
B)False
Q2) Which of the following are the "doers" and producers in a company?
A) line employees
B) staff employees
C) matrix employees
D) the legal department
E) the finance department
Q3) Firms with what structure are structured around departments for each basic business action?
A) divisional structure
B) matrix structure
C) functional structure
D) international structure
E) regional structure
Q4) Explain the differences among functional, divisional, matrix, and international organizational structures and describe the most popular new forms of organizational design.
Q5) Explain specialization and departmentalization.
Page 8
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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) What is a Gantt chart?
Q2) Given the price of the Sky Cruiser, what is a reasonable goal for product quality?
Q3) Which of the following is the ability of a product to satisfy a human want or need?
A) utility
B) relative advantage
C) content
D) satisfaction
E) capacity
Q4) Operations capability is a special ability that production does especially well to outperform the competition.
A)True
B)False
Q5) ISO 9000 is a certification program attesting that a factory, laboratory, or office has met the rigorous requirements set by the International Organization for Standardization.
A)True
B)False
Q6) How are General Motors and Chrysler responding to current economic conditions?
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Page 9
Chapter 8: Employee Behavior and Motivation
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Jane is a very conscientious worker, but she has poor social skills. Which of the following jobs might be best for her?
A) working independently on spreadsheets
B) providing customer service
C) handling problems in a call center
D) training new employees
E) working in public relations
Q2) The extent to which people are self-aware is an aspect of which of the following?
A) attitude
B) emotional intelligence
C) negative emotionality
D) social skills
E) empathy
Q3) Performance behaviors contribute directly to company productivity.
A)True
B)False
Q4) How can teams lead to higher levels of employee motivation and satisfaction in smaller firms?
Q5) 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) What is the difference between leadership and management within an organization?
Q2) The situational approach to leadership gives equal weight to the elements of the situation and the charactertistics of the leader and followers in order to ascertain the outcomes of a leader's actions.
A)True
B)False
Q3) Anne bought stock in ABC Company in hopes of making a profit. Although the stock's price steadily continued to drop, she refused to sell her stock. What does this illustrate?
A) risk propensity
B) escalation of commitment
C) intuition
D) perception
E) caution
Q4) A manager working in the United States will typically see a high level of collectivism among workers.
A)True
B)False
Q5) Describe the steps involved in the rational decision-making process.
Q6) Contrast leadership substitutes with leadership neutralizers.
Page 11
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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) What are the two common tools used by labor in union contracts to secure wage increases? Explain.
Q2) How does NetFlix attempt to meet employees' esteem needs?
Q3) Where is a skills inventory often maintained?
A) replacement chart
B) employee information system
C) internal supply forecast
D) work flow chart
E) job description spreadsheet
Q4) What is the name given to a group of individuals, working together to achieve shared job-related goals such as higher pay, shorter working hours, greater benefits, or better working conditions?
A) management organization
B) company hierarchy
C) labor union
D) external organization
E) permanent employees
Q5) What is a protected class?
Q6) What challenges faced Entergy after Hurricane Katrina? How did the CEO motivate employees to respond? Page 12
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Chapter 11: Marketing Processes and Consumer Behavior
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130 Flashcards
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Sample Questions
Q1) Which of the following occurs between similar products and is based on buyers' perceptions of the benefits of products offered by particular companies?
A) international competition
B) substitute competition
C) brand competition
D) benefit competition
E) placement competition
Q2) Marketing consists primarily of advertising a product or service.
A)True
B)False
Q3) Marketing managers often support the activities of political action committees (PACs). In doing this, which environment are they attempting to influence?
A) competitive
B) economic
C) technological
D) political-legal
E) geo-demographic
Q4) How might economic environmental factors affect business for Panther Shoes?
Q5) Describe the three types of competition faced by marketers.
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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) Convenience stores utilize which kind of distribution?
A) direct distribution
B) retail distribution
C) wholesale distribution
D) distribution by agents
E) distribution by brokers
Q2) Rachel has set up a firm that buys circuit boards from overseas producers and sells them to a local computer manufacturing company. Which title best describes her role in the computer manufacturing distribution mix?
A) marketer
B) sales agent
C) broker
D) retailer
E) wholesaler
Q3) Many firms have turned to distribution through supply chains as a cornerstone of business strategy.
A)True
B)False
Q4) Differentiate between fixed costs and variable costs.
Q5) Explain direct-response retailing.
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Chapter 13: Information Technology for Business
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125 Flashcards
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Sample Questions
Q1) What does a company need to operate so that it has total control over its communications without dependence on other companies?
A) Web site
B) VSAT system
C) extranet
D) groupware site
E) enterprise planning
Q2) Interstate's Chief Information Officer thinks that improvements to the company's wide area network (WAN) should be a priority for the company. Which of the following, if True, would strengthen the CIO's position?
A) Interstate's various branches rely greatly on information-sharing with each other.
B) Much of the hardware that is used in Interstate's offices has not been upgraded in some time.
C) Interstate sales reps rely on collaborative work with other reps in the same office.
D) Existing e-mail servers at many of Interstate's locations are often full.
E) Interstate is hiring many new sales reps who need extensive training.
Q3) What is the difference between data and information?
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Chapter 14: The Role of Accountants and Accounting Information
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117 Flashcards
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Sample Questions
Q1) Which of the following statements is True?
A) As common practice, a sales representative for a firm receives information from the firm's financial accounting system.
B) As common practice, a sales representative for a firm receives information from the firm's managerial accounting system.
C) As common practice, a sales representative for a firm receives information from both the firm's managerial accounting system and its financial accounting system.
D) As common practice, a sales representative for a firm receives information from the firm's revenue accounting system.
E) As common practice, a sales representative for a firm does not receive any information from the firm's accounting system.
Q2) The auditor has also found annual budgets for the company from the past few years. How can Mary Ann benefit from these?
Q3) The auditor has expressed concerns about the company's ability to pay its bills as they are due. What type of financial ratio might provide insight into this concern?
Q4) Give three examples of management advisory services.
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Page 17
Chapter 15: Money and Banking
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Sample Questions
Q1) The inquiry has discovered that the bank involved has been selling its riskiest mortgage accounts to the insurance company, which in turn has been selling these accounts packaged with other more stable loans at a sharply discounted price to other banks. Gavin asks his aides why this would be a beneficial relationship between the two institutions. What would his aides say?
Q2) Which of the following federal laws made transactions between banks significantly more efficient?
A) the Check Clearing for the 21st Century Act
B) the Bank Secrecy Act
C) the USA Patriot Act
D) the Federal Reserve Act
E) the Economic Emergency Recovery Act
Q3) How does the Fed's monetary policy influence banks' willingness to loan money?
Q4) Individual retirement accounts can be opened only by self-employed people such as doctors, small business owners, and consultants.
A)True
B)False
Q5) What is the difference between a public pension fund and a private pension fund?
Q6) What is the difference between a credit card and a debit card?
Page 18
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Chapter 16: Managing Finances
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Sample Questions
Q1) Which of the following is a formal pledge (an IOU) obligating the issuer to pay interest periodically and repay the principal at maturity (a preset future date) to the lender?
A) commercial bank loan
B) corporate bond
C) mutual fund
D) bond indenture
E) prospectus
Q2) Municipal bonds may be issued by federal, state, or local governments.
A)True
B)False
Q3) Explain the difference between angel investors and venture capital.
Q4) Explain what exchange-traded funds are and how they are tracked.
Q5) Which of the following, if True, would undermine Ryerson's argument?
A) Some companies have stock that grows in value.
B) The stock market sometimes falls in overall value.
C) Savings interest rates are not as high as those of some stocks.
D) Savings interest rates can be lower than the rate of inflation.
E) Savings accounts can be opened only with a minimum balance.
Q6) Explain the difference between debt financing and equity financing?
Page 19
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