Deck 2: The Environment of Organizations and Managers

Question 1

Important economic factors for business are general economic growth,inflation,interest rates,and unemployment.

Answer 1

True

Question 2

Ethical actions conform to generally accepted social norms.

Answer 2

True

Question 3

Exporting can involve merchandise but not services.

Answer 3

False

Question 4

Ethics are determined by each individual,so organizations do not have to be concerned with developing a set of organizational ethics.

Question 5

A company in France makes and sells baby food in France.The product is from a patent held by an American company and the France-based firm pays the American manufacturer a specified amount for each unit sold.These two firms are operating under an exporting agreement.

Question 6

The Food Allergy and Anaphylaxis Network is working to ban peanuts on airline flights.This is an example of a special interest group attempting to act in the role of regulator.

Question 7

The external environment of an organization consists of the organization's general environment and task environment.

Question 8

The simplest way to get involved in international business is by Maquiladoras.

Question 9

Forever 21 sells clothing made in Vietnam.The clothing is sold in the United States.This is an example of a strategic alliance.

Question 10

Scott Thompson resigned after serving as CEO of Yahoo for only four months.It was determined that he knowingly lied about his educational background on his resume.But for every unethical manager,there are many ethical ones.

Question 11

Ken is a stock analyst who gives his friends tips on companies to buy.If they buy,the price will likely go up,which helps Ken.Ken has a conflict of interest.

Question 12

Managers can disregard the general environment because it is vague,imprecise and long-term.

Question 13

Both people and organizations have ethics.

Question 14

Toyota Motors owns factories in the United States,which manufacture Toyota-brand cars for sale to U.S.customers.These vehicles are imported.

Question 15

Since the passage of the Sarbanes-Oxley Act turnover in the CFO position has risen dramatically.CFOs point to greatly increased risk without increased reward.Increasing regulation has few side effects.

Question 16

Zynga is the creator of FarmVille,a popular game on Facebook.Zynga expanded to the Apple iPhone,iPod Touch and iPad markets.Zynga and Apple have a strategic partnership.

Question 17

Fast-food restaurant cannot build standard designs in the historical district of Jackson Hole Wyoming.Fast-food establishments must use architecture that complements the structures in the neighborhood.This is part of the economic dimension of the general environment.

Question 18

Some website hackers have boasted by posting information stolen from companies.Zappos,eHarmony,LinkedIn,and Yahoo have all been victims.The potential abuse of information technology is an ethics dilemma for only a few companies.

Question 19

There are four distinct levels of international business activity that differentiate organizations.

Question 20

Behaving ethically is easy because only good things happen to good people.

Question 21

Belgium was the first EU country to outlaw burqas,full body covering worn by some Muslim women.Lawmakers stated concern about the ability to identify people in public.Masks are also not allowed.This is an example of the cultural context of international business.

Question 22

Nike and Reebok are best described as

A)strategic allies.
B)competitors.
C)customers.
D)regulators.
E)suppliers.

Question 23

In Asia,consumers have historically had an aversion to debt.However,in recent years credit card use has grown significantly,supported by aggressive marketing and governments in the region that see it as a means to fuel economic growth.This is an example of the ____ dimension.

A)economic
B)technological
C)sociocultural
D)political-legal
E)domestic

Question 24

No company wants to set up shop in another country unless trade relationships with the country are relatively well defined and stable.This point of view reflects what dimension of the general environment?

A)Task
B)Economic
C)Technological
D)Political-legal
E)Competitive

Question 25

The ____ environment of a business that manufactures top-of-the-line cabinets includes computer-assisted design software that helps to convert wood and people's ideas into lovely,functional cabinets.

A)legal
B)sociocultural
C)technological
D)political
E)economic

Question 26

All of the following are included in the task environment of organizations EXCEPT

A)competitors.
B)customers.
C)regulators.
D)suppliers.
E)the economy.

Question 27

The GATT replaced the WTO.

Question 28

The task environment includes all of the following EXCEPT

A)competitors.
B)technology.
C)regulators.
D)customers.
E)strategic allies.

Question 29

Which of the following is part of the task environment for Wal-Mart Corporation?

A)The Securities and Exchange Commission (regulates Wal-Mart's stock offerings)
B)Procter and Gamble (supplies Tide and many other products to Wal-Mart stores)
C)Teamsters Union (Wal-Mart's truck drivers are members of this labor union)
D)Wal-Mart's Board of Directors
E)All of these.

Question 30

The use of color holds little symbolic value in most cultures.

Question 31

International mergers are more complicated than domestic mergers.

Question 32

The culture of an organization is easy to measure objectively.

Question 33

When a locally owned restaurant fears new competition from Applebee's or TGIF's,it is experiencing a change in its

A)external environment.
B)internal environment.
C)physical work environment.
D)government regulations.
E)organizational culture.

Question 34

Maquiladoras are an example of what the text refers to as direct investment.

Question 35

Which of the following statements does NOT describe a characteristic of an organization's external environment?

A)It includes specific,identifiable organizations and factors of interest to the organization.
B)It is composed of general and task components.
C)The boundary between the organization and its environment is quite specific and clearly defined.
D)It contains some nonspecific dimensions and forces that can affect organization activities.
E)It includes everything outside of the organization that might potentially affect it.

Question 36

The values held by an organization's founder or founders are often among the major determinants of corporate culture.

Question 37

The EU created the first economic community.

Question 38

International licensing agreements involve regulations for truckers transporting products between countries.

Question 39

Investors were worried about the stock market when unemployment was 10%,companies were slow to invest,and government debt was still increasing.These are aspects of which environment?

A)Legal
B)Sociocultural
C)Technological
D)Political
E)Economic

Question 40

Most MNCs use direct investment exclusively because they are so big they can afford to buy companies.

Question 41

Workers who purchase company stock have which dual roles in the internal environment?

A)Employee,board of director
B)Shareholder,board of director
C)Shareholder,strategic partner
D)Employee,owner
E)Monitor,owner

Question 42

Which of the following is an element in an organization's internal environment?

A)Political-legal
B)Competitors
C)A campus of facilities
D)Strategic allies
E)Technology

Question 43

Skype impacts the number of people who fly.This is an example of ____ to the airline industry.

A)competitors
B)suppliers
C)board of directors
D)strategic partners
E)regulators

Question 44

Under U.S.law,it is illegal for a U.S.firm operating in a foreign country to pay bribes to get what it needs.Natives of some of those same countries consider the payment of bribes to be perfectly acceptable.Which of the following influences may account for this difference?

A)Cultural differences
B)Family influences
C)Religious influences
D)Value systems
E)All of these.

Question 45

The Sarbanes-Oxley Act requires the ____ to vouch for the truthfulness and fairness of a firm's financial disclosures.

A)CEO
B)CFO
C)COO
D)CEO and CFO
E)CEO,CFO,and COO

Question 46

Which of the following is part of the internal environment of organizations?

A)Employees
B)Regulators
C)Influence groups
D)Customers
E)Suppliers

Question 47

Organizations that provide resources to other organizations are known as

A)suppliers.
B)competitors.
C)regulators.
D)interest groups.
E)importers.

Question 48

For a church,the congregation would be considered the

A)regulator.
B)strategic partner.
C)supplier.
D)competitor.
E)customer.

Question 49

When NYC's Board of Health informed restaurants that they may not use trans fat in cooking and baking,the Board was acting as a ____ for restaurants.

A)competitor
B)customer
C)supplier
D)regulator
E)All of these.

Question 50

An organization's obligation to protect and enhance the society in which it operates is called

A)legal responsibility.
B)ethical responsibility.
C)social responsibility.
D)cultural responsibility.
E)societal responsibility.

Question 51

For a Perkins restaurant,which of the following would be considered to be a supplier?

A)A family of 5
B)Wendy's
C)The Food and Drug Administration
D)Wal-Mart
E)Coca-Cola Company

Question 52

Sony was the first consumer electronics maker with a Google feature built into its TV sets.Sony and Google are an example of a(n)

A)strategic partner.
B)importer.
C)franchise.
D)customer.
E)competitor.

Question 53

For a company such as Johnson & Johnson that makes personal care products,medications,and medical supplies,which of the following would be considered as customers?

A)Hospitals
B)Pharmacies
C)Families
D)Doctors
E)All of these.

Question 54

Initially,Apple and AT&T had an agreement that allowed iPhones to only operate on AT&T networks.The two companies were

A)competitors.
B)suppliers.
C)board of directors.
D)strategic partners.
E)regulators.

Question 55

The Taliban forced women to wear Burqas.The clothing made them accident prone and vulnerable to attack because they had no peripheral vision.Many people in democratic societies view the Burqa as

A)legal and ethical.
B)legal but unethical.
C)illegal and unethical.
D)illegal but ethical.
E)None of these.

Question 56

Corporate governance is primarily the responsibility of the

A)owners.
B)employees.
C)internal environment.
D)board of directors.
E)All of these.

Question 57

New finance regulations plan to give shareholders the right to vote on executive compensation when executives leave the company.This will decrease the power of

A)employees.
B)owners.
C)board of directors.
D)regulators.
E)suppliers.

Question 58

For a private college,parents may be considered part of the ____ dimension of the task environment.

A)supplier
B)competitor
C)regulator
D)interest group
E)customer

Question 59

Which of the following is an example of an owner of a business?

A)Individual investors who buy stock in that business
B)Partners
C)People who have legal property rights to that business
D)Individuals who finance and start up a new business
E)All of these.

Question 60

All of the following are competitors of Walmart EXCEPT

A)Kmart
B)Target
C)Walgreens
D)Meyers
E)Subway

Question 61

Which of the following statements can be used to explain the growth of international business?

A)Many countries in Europe and Asia were devastated after World War II and had to be rebuilt.
B)The postwar population boom decreased demand for products.
C)Changes in cultural traditions made the rest of the world open to all of the products made in the U.S.
D)Infrastructures in Europe and Asia remained sound in spite of World War II
E)All of these statements can be used to explain the growth of international business.

Question 62

World Vision built a safe house in Thailand as a refuge for girls fleeing the sex industry.The safe house is an example of

A)a joint venture / strategic alliance.
B)licensing.
C)direct investment.
D)exporting.
E)global involvement.

Question 63

Dishwashers produced in Germany and sold in the U.S.are an example of

A)importing / exporting.
B)licensing.
C)a joint venture / strategic alliance.
D)direct investment.
E)global outsourcing.

Question 64

U.S.cola producers limit the number of beverages that they export to India each year.This is an example of

A)a quota.
B)direct investment.
C)a strategic alliance.
D)a licensing agreement.
E)an export restraint agreement.

Question 65

Content providers sign a(n)____ with Amazon to allow their product to be downloaded onto Kindles.

A)joint venture
B)licensing agreement
C)direct investment
D)exporting agreement
E)importing agreement

Question 66

Which of the following is NOT one of the alternative international strategies?

A)Licensing
B)Joint ventures
C)Direct investment
D)Importing / exporting
E)Lateral investment

Question 67

The maquiladoras concept is a fairly recent approach to:

A)strategic alliance.
B)licensing agreement.
C)direct investment.
D)joint venture.
E)None of these.

Question 68

Burger King operates restaurants around the world on U.S.military bases.The agreement between Burger King and the Department of Defense is a(n)____.

A)maquiladora.
B)licensing agreement.
C)exporting agreement.
D)importing agreement.
E)strategic alliance.

Question 69

Japanese steel producers voluntarily limit the amount of steel they export to the US.This is an example of a(n)

A)maquiladora.
B)joint venture.
C)export restraint agreement.
D)licensing agreement.
E)strategic alliance.

Question 70

When the United States government requires that US military uniforms be produced in the United States,this is an example of

A)a maquiladoras.
B)a tariff.
C)a joint venture.
D)a strategic alliance.
E)"buy national" legislation.

Question 71

Potential outcomes of licensing agreements are

A)increased profits.
B)prolonged profitability.
C)inflexibility.
D)franchising.
E)Any or all of these.

Question 72

France charges taxes on American fruits and vegetables that are sold in France.This is

A)a joint venture.
B)licensing.
C)an export tariff.
D)an import tariff.
E)a strategic alliance.

Question 73

All of the following are common arguments against social responsibility for organizations EXCEPT

A)involvement in social programs gives businesses too much power.
B)there is potential for conflicts of interest.
C)the purpose of businesses in the United States is to generate profit for the owners.
D)business creates problems and should therefore help solve them.
E)businesses lack the expertise needed to manage social programs.

Question 74

When Disney and IBM refuse to advertise on websites that have no posted privacy policies,they are acting as

A)ethical leaders.
B)privacy advocates.
C)corporate hypocrites.
D)ethical leaders and privacy advocates.
E)ethical leaders,privacy advocates,and corporate hypocrites.

Question 75

Which of the following actions represents an attempt to manage social responsibility by means of "ethical compliance"?

A)Requiring top financial managers to ensure compliance with securities and banking regulations
B)Donating money to fund the performing arts
C)Creating a committee to write a code of conduct or review proposals concerning selection and promotion
D)Consulting the legal department regarding the requirements of a particular law
E)Making human resource managers responsible for complying with EEOC standards

Question 76

General Electric has factories in Mexico near the U.S.border.The products are sold duty free in the NAFTA area.The factories are an example of

A)licensing.
B)a strategic alliance.
C)exporting.
D)importing.
E)maquiladoras.

Question 77

Dow Corning is an equally owned ______ between Dow Chemical and Corning.

A)global source
B)licensing agreement
C)export restraint agreement
D)joint venture
E)direct investment

Question 78

In 2007,the EU had ____ countries.

A)17
B)12
C)25
D)22
E)27

Question 79

The US Commerce Department has limited the amount of sugar that can be imported.This is an example of a(n)

A)quota.
B)strategic alliance.
C)joint venture.
D)franchise agreement.
E)export restraint agreement.

Question 80

A(n)____ strategy requires little initial investment,is heavily regulated,and provides little opportunity to modify products for local conditions.

A)importing / exporting
B)licensing
C)joint venture
D)direct investment
E)global sourcing