Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Chapter 2: The Environment: Culture, Ethics, and Social
Responsibility
Test Bank
Multiple Choice
1. The ______ include(s) the factors that affect the organization’s performance from
within its boundaries.
a. internal environment
b. external environment
c. organizational culture
d. external factors
2. The five components of the internal environment include management and culture,
mission, system processes, structure, and ______.
a. resources
b. value
c. quality
d. competition
3. Kim interviewed prospective new employees for ten new jobs in her company. Which
internal environmental factor was Kim utilizing?
a. management and culture
b. mission
c. resources
d. systems process
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
4. What does one call the organization’s purpose or reason for being?
a. culture
b. mission
c. environment
d. stakeholders
5. ______ is an umbrella term for all people whose interests are affected by
organizational behavior.
a. Managers
b. Employees
c. Stakeholders
d. Customers
6. Which of the following answers the question, “Who we are as an organization?”
a. organizational culture
b. mission statement
c. internal environment
d. organizational structure
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
7. Kevin has recently graduated from college and is applying for a new job. What might
Kevin look at if he wants to find out more information about the company?
a. mission statement
b. organization structure
c. management team
d. stakeholders in the company
8. Which of the following would be an example of a company’s mission?
a. We employ over 5,000 employees.
b. We focus on bringing the best customer service to anyone in the world.
c. Customer product orders are filled and shipped to the customer.
d. We have a U.S. headquarters and subsidiaries in other countries.
9. Which of the following consists of the values, beliefs, and assumptions about
appropriate behavior that members of an organization share?
a. organizational culture
b. management culture
c. mission statement
d. internal environment
10. Robert works for Nordstrom and loves his job. He attributes the love for his job to
the values and beliefs that the company shares with its employees. Robert’s affinity for
his job is most likely due to the company’s ______.
a. organizational culture
b. organizational structure
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
c. mission statement
d. management team
11. Peter is starting his own delivery company called “Ding Dong Delivery.” He is
currently starting the company for his home town and the surrounding area (20-mile
radius). Peter currently has $500,000 in capital, an office space with Internet and
telephones, and 10 delivery trucks, but no employees. What resource is Peter missing
that is crucial for his business to get running?
a. physical
b. human
c. informational
d. financial
12. ______ is/are the technology used to transform inputs into outputs.
a. Physical resources
b. Management tools
c. System process
d. Human resources
13. Which of the following provides a means of control to ensure that the inputs and
transformation process are producing the desired results?
a. transformation
b. outputs
c. inputs
d. feedback
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
14. Donald’s transformation of bread and hamburger meat into one of the best-selling
products in the world is an example of utilizing which internal environmental factor?
a. management and culture
b. mission
c. resources
d. systems process
15. Which of the following is NOT part of the systems process?
a. inputs
b. outputs
c. feedback
d. structure
16. Jim is the logistics manager and a large portion of his position requires him to utilize
computer-driven data to keep track of orders and inventory. Which part of the systems
process is Jim most likely exhibiting?
a. transformation
b. feedback
c. inputs
d. outputs
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
17. Hachiro noticed that sales of his bakery’s normally best-selling bread decreased
after he switched to a different brand of flour. This is an example of a problem at which
part of the systems process?
a. transformation
b. feedback
c. inputs
d. outputs
18. Adilah modified the order of procedures on the assembly line at her plant, which
produces toy dinosaur figures. By painting the parts before they are assembled, she
was able to increase the line’s daily production by 5%. This was a change to which part
of the systems process?
a. transformation
b. feedback
c. inputs
d. outputs
19. Products and services offered to customers are ______.
a. resources
b. physical inputs
c. outputs
d. internal factors
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
20. ______ is the process that involves everyone in an organization focusing on the
customer to continually improve product value.
a. Quality
b. Customer value
c. Systems process
d. Total quality management
21. The Japanese term for continuous improvement is ______.
a. keisatsu
b. kaizen
c. kiken
d. kaishain
22. What are the two primary principles of Total Quality Management?
a. focusing on delivering customer value and continually improving the system and its
processes
b. focusing on delivering customer value and continually developing new products
c. focusing on controlling costs and continually improving the system and its processes
d. focusing on controlling costs and continually developing new products
23. ______ is what motivates us to buy products.
a. Quality
b. Envy
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
c. Value
d. Wealth
24. ______ is the perceived benefit of a product, used by customers to determine
whether to buy the product.
a. Customer quality
b. Customer wealth
c. Customer value
d. Customer thought process
25. The ______ includes the factors outside its boundaries that affect a business’s
performance.
a. business environment
b. internal environment
c. external environment
d. competitive environment
26. Julia runs a sporting goods business that supplies equipment for the schools in her
area. She is forced to delay her shipment of equipment this week because some of the
tennis balls were shipped late from the factory. What major external environmental
factor is to blame?
a. competition
b. suppliers
c. labor force
d. technology
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
27. Renata’s video rental store has seen a drastic decline in business over the past five
years. What major external environmental factor is to blame?
a. shareholders
b. suppliers
c. labor force
d. technology
28. Which of these is a task factor, not a general external environmental factor?
a. customers
b. society
c. technology
d. governments
29. ______ is searching for important events or issues that might affect the firm.
a. Opportunity scanning
b. Competitive scanning
c. Strategic scanning
d. Environmental scanning
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
30. Which managers make changes only when forced to by external factors?
a. proactive managers
b. reactive managers
c. responsive managers
d. interactive managers
31. According to the text, ______ try to adapt to the environment by predicting and
preparing for change before they are required to do so.
a. proactive managers
b. reactive managers
c. responsive managers
d. interactive managers
32. ______ design a desirable future and invent ways of bringing it about.
a. Proactive managers
b. Reactive managers
c. Responsive managers
d. Interactive managers
33. Business environments generally change at a(n) ______ pace.
a. steady
b. slow
c. fast
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
d. irregular
34. ______ can be considered founders or others who have made outstanding
contribution to their organizations.
a. Heroes
b. Slogans
c. Stories
d. CEOs
35. What are the six artifacts of organizational culture?
a. stories, heroes, slogans, rituals, ceremonies, and behavior
b. symbols, customers, competition, ceremonies, heroes, and stories
c. stories, value, symbols, ceremonies, money, and heroes
d. heroes, slogans, rituals, ceremonies, symbols, and stories
36. Keeshawn has hired a local advertising firm to create a new logo for his restaurant
using the restaurant name. The new logo will be a ______ of the restaurant.
a. slogan
b. symbol
c. story
d. ritual
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
37. Employees learn organizational culture primarily through ______.
a. observing people and events
b. interacting with their supervisor
c. orientation training programs
d. listening to customers’ comments about the organization
38. Which of the following cultural artifacts is critical to Level 2 culture as a way of
expressing organizations’ key values?
a. heroes
b. rituals
c. slogans
d. stories
39. ______ includes the observable things that people do and say or the actions
employees take.
a. Assumption
b. Behavior
c. Value
d. Evaluation
40. The Levels of Culture are comprised of all of the following, EXCEPT ______.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
a. values and beliefs
b. environment
c. behavior
d. assumptions
41. How many levels are there in the levels of organizational culture?
a. one
b. two
c. three
d. four
42. ______ are values and beliefs that are so deeply ingrained they are considered
unquestionably true and taken for granted.
a. Laws
b. Imperatives
c. Instincts
d. Assumptions
43. Jan, an employee of a distribution company, never speaks to anyone in her office.
From when she arrives to when she leaves, no one around her talks during the work
day. Though she has never been told she cannot mingle with her coworkers, Jan feels
as though she is not allowed to do so, since no one ever does. Jan made her decision
based on the ______ of her coworkers.
a. values
b. behaviors
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
c. beliefs
d. assumptions
44. Organizations with many employees who do not behave as expected have what the
textbook calls ______ cultures.
a. chaotic
b. strong
c. learning
d. weak
45. In a ______ culture, the group peer pressures nonconformists to behave as
expected.
a. strong
b. weak
c. mediocre
d. changing
46. Organizations with strong cultures do all of the following, EXCEPT ______.
a. have employees who subconsciously know the shared assumptions
b. consciously know the values and beliefs
c. agree with the shared assumptions, values, and beliefs
d. avoid stagnation and readily undergo change when needed
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
47. The primary benefits of a strong culture include all of the following, EXCEPT
______.
a. unity of direction
b. increased acceptance of nonconformists
c. easier-to-reach consensus
d. easier communication
48. In a ______ culture, the culture supports organizational success through positive
values.
a. learning
b. healthy
c. dynamic
d. emergent
49. In what the textbook calls a ______ culture, aspects of the culture keep the
organization from being successful in achieving objectives.
a. weak
b. obstructive
c. unhealthy
d. chaotic
50. ______ articulate a vision for an organization and reinforce the culture through
slogans, symbols, and ceremonies.
a. Mid-level managers
b. Symbolic leaders
c. Salespeople
d. Consumers
51. Symbolic leaders do all of the following, EXCEPT ______.
a. manage, change, and merge cultures
b. articulate a vision for an organization
c. reinforce the culture through slogans
d. impose cultural values
52. A ______ has a culture that values sharing knowledge so as to adapt to the
changing environment and continuously improve.
a. symbolic organization
b. learning organization
c. changing organization
d. values organization
53. The ______ was passed in 2002 to tighten laws affecting business ethics.
a. Sherman Anti-Trust Act
b. Racketeer Influenced and Corrupt Organizations Act
c. Sarbanes-Oxley Act
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
d. Taft Hartley Act
54. Mia recently made the difficult decision to lay off 50 employees. In making the
decision, she considered that the layoffs would allow the company to continue to
operate profitably for the foreseeable future, thus benefiting not only the shareholders,
but also preserving the livelihood of the remaining 300 employees. She also considered
that keeping her company open would be beneficial to the local community and to the
customers she serves. In making this decision, it appears Mia was following the
principles of the ______ view of ethics.
a. individualism
b. justice
c. rights
d. utilitarian
55. Liam is currently dealing with a conflict between two employees who have been
having some heated discussions during their breaks regarding politics. As he decides
how to handle this situation, Liam takes into consideration that both employees should
have the freedom to express their opinions, especially when on their breaks, so he
doesn’t want to limit their ability to do so. He’s arranged to meet with each privately to
discuss how they might work on their ability to respect each other’s viewpoints. He’ll
make clear to the employees that their conversation with him is confidential, and that he
will not share the details of that discussion with their fellow employees. In making this
decision, it appears Liam was following the principles of the ______ view of ethics.
a. individualism
b. justice
c. rights
d. utilitarian
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
56. Pedro is about to grade the final papers in his Principles of Management course. He
decides to use a feature in his learning management system to hide the students’
names on the assignments as he grades. He made this decision because he wants the
grade to reflect only the work that was done on this assignment, rather than being
possibly biased by who the student is or by his recollection of how they’ve done on past
assignments. In making this decision, it appears Pedro was following the principles of
the ______ view of ethics.
a. individualism
b. justice
c. rights
d. utilitarian
57. The standards of right and wrong that influence behavior are defined by the
textbook as ______.
a. morals
b. laws
c. values
d. ethics
58. When we behave unethically, we often justify the behavior to protect our ______ so
that we do not have to feel bad.
a. personal gain