69) Which statement about the external environment and employment is true?
A) External environmental conditions improve employment during upswings and worsen
employment during downturns.
B) External environmental conditions worsen employment during upswings and improve
employment during downturns.
C) External environmental conditions have no effect on employment during upswings and
worsen employment during downturns.
D) External environmental conditions worsen employment during upswings and have no effect
on employment during downturns.
70) Which of the following is likely to be the permanent result of the recent economic downturn
in the United States?
A) Almost all of the jobs lost will not return.
B) About half of the jobs lost will not return.
C) About a quarter of the jobs lost will not return.
D) Almost all of the jobs lost will return.
71) Which trend do most managers need to get used to in the coming years?
A) Most workers will be hired as permanent employees at a lower pay scale than they were in the
past.
B) Many workers will be hired as consultants rather than as freelance employees.
C) Most workers will be hired as permanent employees rather than on a freelance basis.
D) Many workers will be hired on a freelance basis rather than as permanent employees.
72) Which kind of company has the lowest amount of environmental uncertainty in the
environmental uncertainty matrix?
A) cell 1
B) cell 2
C) cell 3
D) cell 4
73) Which of the following best defines environmental uncertainty?
A) the amount of innovation and creativity in an organization’s internal environment
B) the amount of resources and expertise in an organization’s internal environment
C) the amount of change and confidence in an organization’s external environment
D) the amount of change and complexity in an organization’s external environment
74) A software company innovates constantly to keep up with new rivals that are constantly
appearing on the scene. The software industry itself has an enormous number of players to deal
with that includes retailers, online distributors, educational institutions, and government
agencies. Where does the company belong on the uncertainty matrix?
A) cell 1
B) cell 2
C) cell 3
D) cell 4
75) A TV reality show program essentially puts out the same product episode after episode, year
after year, with little change and few rivals. The show exists in a TV industry that has hundreds
of different components to keep track of. Where does the show belong on the uncertainty matrix?
A) cell 1
B) cell 2
C) cell 3
D) cell 4
76) Which of the following is LEAST likely to be considered a stakeholder for a newspaper
company, The Daily Recorder?
A) the paper boy who delivers the paper to customers
B) critics who claim that all newspapers are biased and dishonest
C) customers who buy the paper at newsstands
D) subscribers
77) Which of the following is an internal stakeholder for the newspaper, The Daily Recorder?
A) the editor of The Daily Sun
B) the city council
C) shareholders in The Daily Sun
D) The Daily Recorder shareholders
78) The Daily Recorder is trying to decide whether it will fire about 200 employees if things
don’t change in the near future. The paper is scheduling a meeting with the 200 employees. The
employees want to include their own family members at the meeting. How should the paper
respond?
A) Family members are internal stakeholders, so they should have a separate meeting with the
paper without the employees.
B) Family members are internal stakeholders, but they should not be allowed to attend the
meeting.
C) Family members are external stakeholders, so they should be allowed to attend the meeting.
D) Family members are not stakeholders, so they should not be allowed to attend the meeting.
79) The Daily Recorder is considering raising its price from 60 cents to 75 cents. Which
stakeholders should it consider most in making this decision?
A) All stakeholders should be considered equally.
B) all internal stakeholders
C) all external stakeholders
D) its customers
80) The Daily Recorder is considering charging online readers a flat fee for access to the news
on their computers and electronic devices. Which stakeholder should the paper NOT worry about
informing?
A) the paper’s online customers
B) the paper’s rival, The Daily Sun
C) the unions that control the paper’s workers
D) the paper’s print subscribers
81) The Total Freedom political party is trying to determine its position on climate change.
Whom should the party consider as its stakeholders?
A) official party members
B) all potential voters
C) all people in the world
D) all people in the United States
82) Which of the following identifies one reason why managers should NOT put time into
managing stakeholder relationships?
A) Managing stakeholder relationships can lead to less predictability of environmental changes.
B) Managing stakeholder relationships can lead to more predictability of environmental changes.
C) Managing stakeholder relationships can lead to innovations.
D) Managing stakeholder relationships can lead to increased trust among stakeholders.
83) What do most high performing companies have in common when it comes to stakeholder
relationships?
A) High performing companies tend to consider the interests of all stakeholder groups when they
make important decisions.
B) High performing companies tend to consider the interests of internal stakeholder groups only
when they make important decisions.
C) High performing companies tend to consider the interests of external stakeholder groups only
when they make important decisions.
D) High performing companies tend not to consider the interests of stakeholder groups when
they make important decisions.
84) New York mayor Michael Bloomberg’s proposed ban on supersized sugary drinks is
reflective of which external organizational issue?
A) the increasing power of Generation X’s
B) the symbolic role of managers
C) the importance of stakeholders
D) the increasing economic disparity between the rich and poor
85) The CEO of a major corporation experiences emotional problems and makes an appointment
to see a psychiatrist. Which of the following has the LEAST legitimate right to be informed
about the situation?
A) the stockholders
B) the media
C) the CEO’s colleagues
D) the employees of the CEO’s company
86) The CEO of a major corporation experiences emotional problems and begins to see a
psychiatrist. Which of the following has the most legitimate right to be informed about the
situation?
A) the media, if it is possible that the CEO will need to take medication for his condition
B) the stockholders, if it is likely that the CEO’s condition will affect his personal life
C) the CEO’s colleagues, if it is possible that the CEO’s condition can affect his ability to make
decisions
D) the CEO’s colleagues, if it is likely that the CEO will need to take medication for his
condition
87) The CEO of a major corporation experiences emotional problems and is prescribed
antidepressants by his psychiatrist. Which of the following do the CEO’s stakeholders have the
most legitimate right to be informed about?
A) whether the medication can impair judgment
B) whether the medication is long term or short term
C) whether the CEO continues to receive counseling from the psychiatrist
D) whether the medication has any side effects
88) The CEO of a major corporation experiences emotional problems and is prescribed
antidepressants by his psychiatrist. The medication has been shown in studies to “cloud
judgment.” Which of the following do the CEO’s stakeholders have the most legitimate right to
demand?
A) that the CEO resign from his position
B) that the CEO appoint a colleague to share his leadership position and keep an eye on him
C) that the CEO curtail his use of the medication
D) that the CEO be tested to see if his judgment is impaired
89) The CEO of a major corporation experiences emotional problems and is treated for his
condition by a psychiatrist. Shortly after he begins taking medication, the CEO is arrested for
reckless driving and appears in the media making bizarre statements that sound misguided and
bigoted. When questioned about his competence to lead, the CEO blames his troubles on his
medication, then continues to behave erratically and make statements in “bad taste.” Which of
the following do the CEO’s stakeholders have the most legitimate right to demand?
A) that the CEO resign from his position
B) that the CEO appoint a colleague to share his leadership position and keep an eye on him
C) that the CEO increase his medication dose
D) that the CEO decrease his medication dose
90) The CEO of a major corporation experiences emotional problems and is treated for his
condition by a psychiatrist. After being arrested and repeatedly behaving in bizarre and erratic
ways, the company’s board tries to oust the CEO but fails, so he remains in office. Following the
failure to oust him from office, the CEO makes a series of brilliant decisions that vault the
company into unprecedented success. Which of the following do the CEO’s stakeholders have
the most legitimate right to ask for?
A) that the CEO resign from his position
B) that the CEO be given a “figurehead” position in which he is no longer responsible to make
decisions
C) that the CEO appoint a colleague to share his leadership position and keep an eye on him
D) that the CEO decrease his medication dose
91) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and
other kinds of software for consumers. Theodore has just gotten wind that engineers have
developed a new computer system that works like the devices shown in the Steven Spielberg
movie Minority Report in which users can control a sophisticated computer using their hands in
midair. Janice sees this development as highly important to new games for TJ Soft. Which
component of the external environment will affect TJ Soft the most in this situation?
A) the global component
B) the sociocultural component
C) the economic component
D) the technological component
92) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and
other kinds of software for consumers. Theodore has just read an article that describes the
explosion of computer games among young people in India using cell phones and simple
computers. This generation in India has well over 300 million people in it, and if TJ Soft can
capture just a tiny portion of that market it will be highly successful. Which component of the
external environment will affect TJ Soft the most in this situation?
A) the technological component
B) the demographic component
C) the political component
D) the legal component
93) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and
other kinds of software for consumers. Theodore has just read an article that says that the low
interest rates that currently prevail are likely to end in the coming months. Theodore thinks that
TJ Soft may need to apply for a loan now to avoid high costs later. Which component of the
external environment will affect TJ Soft the most in this situation?
A) the global component
B) the sociocultural component
C) the economic component
D) the technological component
94) An industry with a dynamic business environment that is also highly complex faces the
maximum amount of environmental uncertainty.
95) Environmental complexity refers to the number of components that an organization must
deal with.
96) Given a choice, managers would prefer to operate in an environment that has a minimum of
uncertainty.
97) A good manager considers the interests of all stakeholders equally when making an
important decision.
98) In a short essay, describe the parameters in an environmental uncertainty matrix.
99) In a short essay, describe a real or fictional company that exists in cell 1 of the environmental
uncertainty matrix.
100) In a short essay, describe a real or fictional company that exists in cell 4 of the
environmental uncertainty matrix.
101) In a short essay, identify all of the stakeholders in a typical apparel company such as the
Gap and rank them in terms of importance.
102) The greater the environmental uncertainty, the more an organization needs to become
________.
A) organic
B) mechanistic
C) stable
D) high-tech
103) The culture of an organization is analogous to the ________ of an individual.
A) skills
B) personality
C) motivation
D) ability
104) Three important things to know about organizational culture is that it is 1) perceived, 2)
descriptive, and 3) ________.
A) consistent
B) shared
C) ethical
D) visible