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Student name:__________
TRUE/FALSE – Write ‘T’ if the statement is true and ‘F’ if the statement is false.
1) Environmental sustainability is about maintaining the environment, and it is both local
and global.
⊚ true
⊚ false
2) Sustainability requires adjustments at the margins, rather than a totally new approach to
business.
⊚ true
⊚ false
3) Early business sustainability efforts looked beyond their own operations and focused on
the external aspects of conservation and environmental regulation.
⊚ true
⊚ false
4) Life cycle assessment (LCA) is a marketing concept that addresses innovation in product
development.
⊚ true
⊚ false
5) The carbon footprint associated with a product is a measure of the volume of greenhouse
gas emissions associated with that product.
⊚ true
⊚ false
6) Limits, interdependence, and equity are characteristics of sustainable business practices.
⊚ true
⊚ false
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7) The stakeholder model for environmentally sustainable business has failed because we
don’t have an accounting system to measure the present costs of environmental irresponsibility.
⊚ true
⊚ false
8) Geographic proximity is rarely a major reason for trade.
⊚ true
⊚ false
9) Mountains tend to impede trade, whereas flat areas tend to facilitate trade relationships.
⊚ true
⊚ false
10) Mountain ranges facilitate global markets and the process of internationalization.
⊚ true
⊚ false
11) Bodies of water, much like deserts and mountains, also serve as barriers to trade.
⊚ true
⊚ false
12) Wind power is an example of a renewable energy source.
⊚ true
⊚ false
13) Coal and natural gas are forms of renewable energy because they cannot be replenished.
⊚ true
⊚ false
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14) “Petroleum man” faces inevitable extinction, as we currently understand resources.
⊚ true
⊚ false
15) Greenpeace supports extraction of shale oil from proven reserves.
⊚ true
⊚ false
16) Above-ground issues impact territories available for oil exploration.
⊚ true
⊚ false
17) Nuclear power is viewed as “clean” since it doesn’t contribute to climate change.
⊚ true
⊚ false
18) Because it is a high polluter, coal is expected to decline as an energy source.
⊚ true
⊚ false
19) Biomass is a category of renewable energy fuels based on their heavy weight.
⊚ true
⊚ false
20) Geothermal power is derived from mirrors or sensors used to collect sunlight.
⊚ true
⊚ false
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MULTIPLE CHOICE – Choose the one alternative that best completes the statement or
answers the question.
21) Gwyn works for a paper manufacturer and recommended to the product development
team that sourcing from recycled goods would help preserve the forests for future generations.
What is Gwyn referring to?
A) economies of scale
B) environmental sustainability
C) an absolute advantage
D) a carbon disclosure project
22) Environmental sustainability is both local and global because
A) environmental conditions do not recognize national borders.
B) governments are not prepared to address environmental issues beyond the UN.
C) business has become global, so sustainability must follow the trend.
D) it is a political issue as well as an academic one.
23) The traditional model of business with its focus on profitability is still widely used
because ______.
A) it highlights the economic benefits in the business context
B) it highlights the ecological parts of the business context
C) it focuses on the social parts of the business context
D) it identifies the growing demand for triple bottom line accounting in the business
context
24) An LCA conducted for a T-shirt convinced Patagonia that
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A) recycled plastics were ecological choices for packing materials.
B) industrially produced cotton used excessive amounts of water compared to organic
cotton.
C) South Africa provided a good source of raw materials.
D) too many T-shirts were sold, and instead, should be recycled.
25) Cradle-to-cradle (C-2-C) design
A) identifies differing levels of success among the national players in world markets.
B) builds on endowment factor differentials.
C) measures the impact of climate on development.
D) closes the production loop so there is no waste.
26) The Carbon Disclosure Project (CDP), unlike the Kyoto Protocol, a UN convention on
climate change, is
A) regulated by the EU.
B) regulated by the U.S.
C) controlled by the IMF.
D) made up of corporate members.
27) Henson Automotive wants to understand how much water the company is using when
manufacturing its energy-efficient cars. What type of measure should the company take?
A) water waste
B) water footprint
C) water pressure
D) water emissions
28) When considering the limits associated with sustainability, a company should address
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A) that environmental resources are exhaustible.
B) the amount of renewable resources it takes to build the company’s products.
C) whether or not government approval is necessary when creating environmental
controls.
D) the best season or time of year in which to produce.
29) Which characteristic of environmental stability is a Peterson Mining Corp. taking into
account when it installs special filters that promote clean air for the surrounding community?
A) Resources are limited.
B) Systems are interdependent.
C) Equity in distribution must prevail.
D) Free enterprise and buyer beware are sufficient monitors.
30) The three characteristics of evolving sustainable business practices are
A) local, global, and improving quality of life.
B) environmental sustainability, quality of life sustainability, and triple bottom-line
accounting.
C) limits, interdependence, and equity.
D) being green, centering on the customer’s needs, and demonstrating simple kindness.
31) Oomph Beauty Inc. is being scrutinized by the federal government for failing to control
emissions from their plant that could damage the ozone layer. Which characteristic of an
environmentally sustainable business is the company ignoring?
A) Profit sharing is divisible.
B) Supply chain equity is inevitable.
C) Resources are limited.
D) Stakeholders can vary in attitudes.
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32) The relationships among ecological, social, and economic systems in sustainable
environments need to be
A) discreet.
B) renewable.
C) positive.
D) interdependent.
33) After Nike built a plant in a rural area, it discovered that families were taking their
children out of school to work in these plants. Instead of getting an education, these children
were put to work which wasn’t Nike’s intent. Which characteristic of environmentally
sustainable businesses does this demonstrate?
A) alignment of relative industries
B) equity in distribution within the supply chain
C) limits on the Earth’s resources
D) interdependence of ecological, social, and economic systems
34) One aspect of an environmentally stable business is to ensure that there are not vast
differences in the distribution of gain. In other words, the business practices
A) sovereignty.
B) equity.
C) susceptibility.
D) intentionality.
35) Triple-bottom-line (3BL) accounting is not a framework for sustainability because
A) its measures are not standardized and therefore not comparable.
B) it does not take into account social factors.
C) Wall Street has not approved its use.
D) foreign and domestic factors affect its use.
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36) A way to measure a company’s success in meeting its sustainable business goals is to
A) examine the return on investment.
B) use triple-bottom-line accounting.
C) monitor the company in a social context.
D) review the marketing materials.
37) The stakeholder model requires businesses to think about
A) the stakeholders’ interest in profitability.
B) the network of tensions caused by competing demands.
C) strategy in light of sustainability.
D) the frequency of social issues faced by the stakeholders.
38) Stakeholder theory pushes managers to be clear about how they want to do business, so it
forces a business to
A) recognize underlying values and principles.
B) discuss profit center margins.
C) strategize development from the top down.
D) create decisive management.
39) Stakeholder theory is an understanding of how business works when it
A) takes into account culture and environmentalism.
B) rejects the importance of the bottom line.
C) emphasizes planning.
D) takes into account all identifiable interest holders.
40) The traditional U.S. business model is
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A) economic.
B) cultural.
C) political.
D) social.
41) Why is sustainable business local and global simultaneously?
A) It requires a simultaneous focus inside the business and widely outside it.
B) Because all business is global, and all business requires a local presence.
C) Managers of a global business encounter the exact same problems as managers of a
local business.
D) Because we have no global businesses that are sustainable unless they are also local.
42) The stakeholder theory operates on
A) a network of tensions—the competing internal and external demands that form the
business context.
B) the assumption that hierarchical decisions and command and control are best.
C) a socialist premise that business has obligations to society at large.
D) the singular goal of increasing shareholder profit.
43) Traditional approaches to business focus on the goal of creating profits, while the
stakeholder approach forces a business
A) to address its underlying values and principles.
B) into a dialogue with unions and environmentalists.
C) to dialogue with banks to establish community policies.
D) to lay claim to territories of expertise.
44) At Torno Manufacturing, the company identifies its purpose by having discussions with
employees, vendors, community members, and other groups pertinent to the business. Which
theory for a sustainable business does Torno Manufacturing follow?
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A) stakeholder theory
B) footprinting
C) limits theory.
D) natural capital
45) Triple-bottom-line accounting is a good way for a business to
A) measure its sustainability activities and share the results with stakeholders.
B) compare its sustainability results with other firms in the same sector.
C) receive government assistance for environmental issues.
D) share evidence with its publics that sustainability is a costly endeavor.
46) The land, air, water, living organisms, and our ecosystem’s formations that provide us
with the goods and services on which our survival depends comprises our
A) natural capital.
B) national endowment.
C) topography.
D) national birthright.
47) A country’s location influences its trade relationships because
A) trade tends to occur with neighbors, often in subtle ways.
B) proximity breeds contempt, a phenomenon that influences trade.
C) southern countries have to trade with northern ones, due to climactic realities in the
South.
D) competitive advantage dictates that no contiguous countries can have the same levels
of trade.
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48) Japan has been one of China’s largest sources of imports, along with South Korea and the
United States. Because there is still political enmity between China and Japan due to the
Japanese occupation of parts of China during World War II, the best explanation for the present
Japanese trade relationship with China is
A) geographical proximity.
B) Asian interdependence.
C) that only Japan manufactures to Chinese standards.
D) a common written language.
49) Parul told the members of the management team that the topography of North Carolina
did not lend itself to their needs for the new manufacturing facility. What is Bethany referring
to?
A) the physical features of the area
B) the availability of suppliers
C) the number of competing firms in the area
D) the available human resources
50) Tropical rain forests are
A) a barrier to economic development.
B) an important source of agriculture, due to their fertile soil.
C) the equivalent of marshes along coasts.
D) locations of significant rural population centers due to their bodies of water.
51) From a business perspective, bodies of water often coincide with
A) densely populated areas along seacoasts, lakes, and rivers.
B) reduced manufacturing and increased tourism.
C) higher levels of pollution.
D) reduced levels of temperate climates.
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52) The world’s most important inland waterway system runs
A) from the North Sea to the Black Sea.
B) through the central United States along the Mississippi River to the Gulf of Mexico.
C) into the center of South America along the Amazon.
D) from the Gulf of Finland and St. Petersburg to Moscow.
53) The North–South divide is a faulty explanation of
A) the intellectual and economic development that has excelled in northern areas.
B) the U.S. Civil War.
C) why urban populations tend to be richer than rural populations.
D) the social forces that support agricultural development in developing economies.
54) Certain geologic structures have led to the development of separate languages within the
same country. These barriers include
A) political and cultural patterns.
B) mountain barriers.
C) linguistic tariffs.
D) differentiating borders.
55) Why is every western coast between 20 and 30 degrees north or south of the equator dry?
A) The winds blow away from the land, carrying moisture with them.
B) This is coincidental. Egypt, which has a source of water, can support a large
population.
C) The equator is a tropical area, and the heat leads to evaporation.
D) Western coasts are not dry; it is the interior of continents that becomes arid desert.
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56) How does the Canadian Shield benefit or hurt Canada’s potential for international
business?
A) The topography associated with this area does not support populations which means
it would cost companies more to manufacture there.
B) This is an indication of government protection in terms of lower export taxes.
C) This is a guarantee to all Canadian consumers that imports will be limited to enhance
existing manufacturing efforts.
D) This refers to a core group of five companies that dominate production in the
country.
57) Geographical proximity contributes to
A) limited knowledge of the country by its neighbors.
B) standardized freight costs.
C) the likelihood of trade relationships.
D) distrust and contempt.
58) Topography, including mountains, deserts, plains, and bodies of water, greatly influence
A) political relationships.
B) the physical distribution of products and services.
C) the local approach to education and health services.
D) local attitudes toward industrially developed economies.
59) Nations whose mountains divide them into smaller regional areas include
A) the United States, Mexico, and Canada.
B) Switzerland, Afghanistan, China, and Colombia.
C) Luxembourg, France, and Romania.
D) Estonia, Latvia, and Lithuania.
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60) One example of the effect of topography is
A) isolated language groups, which require special marketing adjustments.
B) regional metals markets.
C) a unified China.
D) equal distribution of populations.
61) What is the correlation between population density and bodies of water?
A) The larger the body of water, the lower the population level.
B) There is no correlation between bodies of water and population density.
C) Densely populated regions coincide with rivers, lakes, and seacoasts.
D) Populations tend to cluster around lakes and rivers more than oceans.
62) In more dense populations, international managers can expect
A) increased political discord.
B) markets that respond well to word-of-mouth promotion.
C) contrasting topographical features.
D) lower marketing and distribution costs.
63) Densely populated areas coincide with
A) rivers, lakes, and seacoasts.
B) inland waterways.
C) rich mineral reserves and rare earth deposits.
D) low levels of environmental awareness.
64) How does climate affect the population of a region?
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A) It is the basis for intelligence and energy levels, per the North–South divide.
B) It affects what people can do, physically and economically.
C) It is an indicator of education and security.
D) It allows for adjustment and motivation.
65) World Bank studies have shown that underdevelopment in tropical nations is often due to
A) factors such as parasites and viruses that expand unchecked because of the lack of
winter temperatures.
B) mental slowness in people of the climates around the equator.
C) socialist political regimes.
D) lack of government investment in education.
66) Trading groups in close proximity would typically have the benefit of
A) tariff barriers.
B) lower freight costs.
C) delayed deliveries.
D) language differences.
67) Climate is probably the most important element of the physical forces as it sets the limits
on
A) annual rainfall, thus water supply.
B) population growth patterns.
C) what people can do physically and economically.
D) expected FDI.
68) Inland waterways provide inexpensive access to interior markets and are significant in
every continent except
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A) Australia.
B) North America.
C) Africa.
D) Asia.
69) Australia’s topography is
A) an inland plain and desert, with population concentrated along the coasts.
B) like North Africa’s, with population along the water and then desert and mountains.
C) desert except for the central highlands.
D) similar to North America’s, with dissecting rivers, mountains, and some desert area.
70) The North–South divide draws on climatic differences to explain
A) political differences.
B) trade patterns.
C) differences in intellectual development.
D) cultural differences.
71) Studies conducted by the World Bank indicate that tropical climates allow for
A) the unimpeded reproduction and growth of weeds, viruses, birds, insects, and
parasites.
B) the lack of need to provide heat and shelter that is present in northern climates.
C) unparalleled trade.
D) cultivation of citrus and four crops per year.
72) China’s vast and mountainous terrain leads to
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A) many languages and dialects.
B) political unity, as in Switzerland.
C) economic disparities.
D) population divergences.
73) Deserts and tropical forests seem to be opposites, but have what trait in common?
A) They are good vacation spots so are an economic stimulator.
B) They have small populations on their edges.
C) They separate markets, thereby increasing transportation costs.
D) They are hospitable to insects.
74) Petroleum, a relatively cheap nonrenewable energy source, is
A) in abundant supply but is not environmentally clean.
B) being increasingly depleted and is expected to become extinct in 80 years.
C) clean, cheap, and available, but most of the reserves are located in countries whose
leadership is critical of the industrialized world.
D) expected to run out in another 10 years and needs to be replaced with renewable
energy sources quickly.
75) Which nonrenewable energy source comes from shale?
A) nuclear energy
B) natural gas
C) hydropower
D) oil
76) Heavy oil is considered
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A) oil that does not flow easily.
B) the key to equalizing power in the oil industry.
C) oil extracted from biomass that is reprocessed.
D) Top grade oil drawn from wells.
77) What is the current status of nuclear power?
A) It is growing insignificantly, except in developing countries.
B) It has been growing.
C) It has been rejected by France.
D) It has been abandoned by all nations.
78) Why is it predicted that the use of coal as an energy source will decline?
A) It is considered too new and unknown.
B) It pollutes heavily.
C) It creates additional tariff barriers.
D) It is rejected by consumers but accepted by industry.
79) What is a characteristic of renewable energy?
A) It will replace fossil fuels, due to price, depletion, or carbon emissions, within 10
years.
B) It is essentially a political issue in developed economies.
C) It is not actually renewable long term.
D) It has outpaced growth in the nonrenewable sector in the United States.
80) Which country has the highest percentage of the world’s capacity of wind power?
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A) China
B) the United States
C) Germany
D) India
81) The consumption of natural gas is increasing because it is
A) the least expensive of the fossil fuels.
B) a nonrenewable energy source.
C) comparable to oil-producing shale.
D) the cleanest-burning of the fossil fuels.
82) Hudson Manufacturing prides itself on using a renewable energy source to run its plant.
What is an example of a renewable energy source this company might use?
A) petroleum
B) coal
C) nuclear power
D) hydropower
83) Natural resources are described as
A) that which is alive in the natural world.
B) anything provided by nature on which people depend.
C) any raw material that becomes a component in a manufactured good.
D) that which is used for food or fuel.
84) Energy consumption by fuel type reveals that fuel use has been dominated since 2010 by
A) renewable energy sources.
B) nuclear energy and coal.
C) nonrenewable energy sources.
D) solar and wind power.
85) Hydraulic fracking is associated with which nonrenewable energy source?
A) wind power
B) oil
C) solar power
D) nuclear energy
86) Unconventional sources of petroleum such as oil sands and shale are often grouped
together and referred to as
A) nonrenewable hopes.
B) new sources.
C) peak sources.
D) heavy oil.
87) What material, when heated, will yield up to 25 liters or more of liquid hydrocarbons per
ton of input?
A) shale
B) biomass
C) natural gas
D) light petroleum
88) Greenpeace and other environmental groups oppose oil shale projects because they lead
to