1. Which of the following is a part of an organization‘s external environment?
a.
Board of directors
b.
Physical work environment
c.
Inflation
d.
Organization’s culture
e.
Labor unions
2.
In Asia, consumers have historically had an aversion to debt. However, in recent years credit card use has grown significantly
aggressive marketing and government policies in the region to promotegrowth in the region.This example comprises the _____
organization’s general environment.
a.
economic
b.
technological
c.
sociocultural
d.
political-legal
e.
task
a
vitality of the economic system in which the organization operates.
Challenging
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United States – BUSPROG: – Analytic
United States – AK – DISC: Environmental Influence
The Organization’s Environments
Bloom’s: Application
Digital Story: Perform
affect it.
Easy
p.37
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
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3. A business manufactures top-of-the-line cabinets. The _____ dimension of its general environment includes computer-
assisted design software that helps to convert wood and people’s idea into lovely, functional cabinets.
a.
legal
b.
sociocultural
c.
technological
d.
political
e.
economic
4. Alex, one of the proprietors of Atlas Corp. is worried.The stock market was not doing well, unemployment was 10
percent, inflation was on the rise again, and government debt was still increasing. These concerns of Alex are related to
the _____ dimension of the general environment of Atlas Corp.
a.
legal
b.
sociocultural
c.
technological
d.
political
e.
economic
e
vitality of the economic system in which the organization operates.
Challenging
p.37
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The Organization’s Environments
Bloom’s: Application
Digital Story: Perform
5. The set of broad dimensions and forces in an organization’s surroundings that determines its overall context is called
the:
a.
b.
c.
c
Challenging
p.37
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The Organization’s Environments
Bloom’s: Application
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d.
e.
6. Which of the following is a concern of the economic dimension of an organization’s general environment?
a.
Organization’s policies and practices
b.
Inflation, interest rates, and unemployment
c.
Tools, methods, and technology
d.
Government regulations
e.
Offices, production facilities, and cafeteria
Easy
p. 37
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The Organization’s Environments
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7. A company would to begin business in another country only if the trade relationships with that country are relatively
well defined and stable. In the context of general environment, which of the following does this point of view reflect?
a.
Task
b.
Economic
c.
Technological
d.
Political-legal
e.
Competitive
p.37
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8. The _____ dimension of the general environment consists of government regulation of business and the relationship
between business and government.
a.
technological
b.
task
c.
political–legal
d.
competitive
e.
socio–economic
c
Easy
p. 38
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
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9. Which of the following is a part of the task environment of organizations?
a.
Owners
b.
Board of directors
c.
Employees
d.
Politicians
e.
Competitors
e
Easy
p.39
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The Organization’s Environments
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Moderate
p.38
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Legal Responsibilities
The Organization’s Environments
Bloom’s: Comprehension
Digital Story: Connect
10. Jeffry’s Foodbar, a locally owned restaurant is experiencing competition from an internationally known chain of fast
food restaurants, which has recently started business in its neighborhood. Jeffrey’s Foodbar is experiencing a change in
its:
a.
b.
c.
d.
e.
a
Challenging
p.39
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The Organization’s Environments
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11. Which of the following is an accurate difference between the task environment and the general environment?
a.
The general environment is quite complex, whereas the task environment is very simple.
b.
The task environment provides useful information more readily than the general environment.
c.
The task environment deals with more abstract dimensions than the general environment.
d.
The general environment’s impact is short term, whereas that of the task environment is long term.
e.
The general environment includes competitors and regulators, whereas that of the task environment
includes customers, suppliers, and strategic partners.
Moderate
p.39
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The Organization’s Environments
Bloom’s: Comprehension
Digital Story: Connect
12. Hike and Loiters are two shoe manufacturers. Their products are similar, they are in the same price range, and
their consumers keep switching between their products. This makes them:
Digital Story: Engage
a.
strategic allies.
b.
competitors.
c.
associates.
d.
regulators.
e.
suppliers.
13. Nonstop is a free instant messaging and voice chat service that allows users to communicate with each other, using a
microphone and/or a webcam, over the Internet. Its popularity is increasing and, as a result, the number of people using
Chatterbox, another instant texting service, has decreased. Nonstop is a _____ to Chatterbox.
a.
competitor
b.
supplier
c.
customer
d.
strategic partner
e.
regulator
a
Challenging
p.39
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG: Analytic
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The Organization’s Environments
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Digital Story: Perform
14. Organizations that provide resources to other organizations are known as:
a.
suppliers.
b.
competitors.
c.
regulators.
d.
interest groups.
e.
importers.
a
Moderate
p.39
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The Organization’s Environments
Bloom’s: Comprehension
Digital Story: Connect
15. For a private college, parents of students may be considered part of the _____ dimension of the task environment.
a.
supplier
b.
competitor
c.
regulator
d.
strategic partner
e.
customer
e
Customers include whoever pays money to acquire an organization’s products or services.
Moderate
p.39
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The Organization’s Environments
Bloom’s: Comprehension
Digital Story: Connect
16. In the external environment of an organization, the _____ environment’s impact is often vague, imprecise, and long
term.
a.
general
b.
regulatory
c.
physical work
d.
cultural
e.
competitive
a
customers, suppliers, strategic partners, and regulators.
Easy
p. 39
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
Suppliers are organizations that provide resources for other organizations.
Easy
p.39
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The Organization’s Environments
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17. _____ are elements of the task environment that have the potential to control, legislate, or otherwise influence an
organization’s policies and practices.
a.
Board members
b.
Owners
c.
Strategic partners
d.
Employees
e.
Regulators
e
Regulators are elements of the task environment that have the potential to control, legislate,
Easy
p.40
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The Organization’s Environments
Bloom’s: Knowledge
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18. Ralph Corp. and Swan Inc. are strategic partners. In this context, which of the following statements is most accurate?
a.
Ralph and Swan produce the same goods and share the same market.
b.
Ralph procures and provides all the raw materials and labour used by Swan for production.
c.
Ralph purchases raw materials from Swan in large volumes and uses it to manufacture its products for retail
sale.
d.
Ralph sells Swan’s merchandise at its stores and Swan promotes Ralph stores in its advertisements.
e.
Ralph has been using the media to call attention to the negative impact of using Swan’s products.
Strategic partners are two or more companies that work together in joint ventures or other
partnerships.
Challenging
p.40
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United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The Organization’s Environments
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19. A diner received many warnings from the local Board of Health regarding the quality of its food. The Board of Health
objected to the trans-fats used for frying and the freshness of bread and meat used at the diner. The Board is playing the
role of a(n) _____ in the restaurant’s environment.
The Organization’s Environments
Bloom’s: Knowledge
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a.
competitor
b.
customer
c.
supplier
d.
regulator
e.
investor
20. Canyon LLC, a television manufacturing company, is about to launch its smart TV. The television will come with a
built-in web browser by a company called Wayfarer Inc. to access Internet. Canyon is Wayfarer’s _____.
a.
strategic partner
b.
business rival
c.
franchisee
d.
supplier
e.
owner
a
Challenging
p.40
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United States – BUSPROG: Analytic
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The Organization’s Environments
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21. Which of the following would supply capital to a business?
a.
Employment agencies
b.
Regulators
c.
Banks
d.
Board of directors
e.
Employees
c
Challenging
p.40
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG: Analytic
United States – AK – DISC: Environmental Influence
The Organization’s Environments
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Digital Story: Perform
22. A group organized by its members to attempt to influence organizations is known as a(n):
a.
interest group.
b.
board of directors.
c.
strategic ally.
d.
competitor.
e.
ethics committee.
a
Interest group is a group organized by its members to attempt to influence organizations.
Easy
p. 40
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23. An interest group is a form of a _____.
a.
supplier
b.
board of directors
c.
strategic partner
d.
competitor
e.
regulatory agency
e
Easy
p. 40
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United States – BUSPROG – Analytic – Business knowledge and analytic skills
Easy
p. 40
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United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The Organization’s Environments
Bloom’s: Comprehension
Digital Story: Connect
24. A person who purchases stock in a company becomes a(n) _____ of the company.
a.
member of the board of directors
b.
customer
c.
strategic partner
d.
owner
e.
regulator
Moderate
p.41
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Environmental Influence
The Organization’s Environments
Bloom’s: Comprehension
Digital Story: Connect
25. In a business, which of the following people have legal property rights to that business?
a.
Employees
b.
Suppliers
c.
Customers
d.
Owners
e.
Regulators
Easy
p.41
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26. A corporate _____ is a governing body that is elected by the stockholders and charged with overseeing a firm’s general
management to ensure that it is run to best serve the stockholders’ interests.
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a.
council of strategic partners
b.
board of directors
c.
regulators directorate
d.
whistle-blowing committee
e.
economic community
27. _____ are hired for short periods of time and provide greater flexibility, earn lower wages, and often do not participate
in benefits programs.
a.
Temporary workers
b.
Regulatory agencies
c.
Interest groups
d.
Strategic allies
e.
Suppliers
a
flexibility, earn lower wages, and often do not participate in benefits programs.
Easy
p.42
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28. Which of the following is an element of an organization’s internal environment?
a.
Government regulations
b.
Competitors
c.
Facilities
d.
Strategic allies
e.
Technology suppliers
Easy
p.42
MGMT.GRIF.16. 2-1 – LO: 2-1
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29. Which of the following accurately describes the responsibility of a corporate board of directors?
a.
Exerting considerable influence by using the media to call attention to their positions
b.
Helping the company get the expertise they lack from other companies
c.
Ensuring the firm is run to best serve the stockholders’ interests
d.
Gaining legal property rights to the business by buying stock
e.
Protecting the public from certain business practices or to protect organizations from one another
c
Moderate
p.42
MGMT.GRIF.16. 2-2 – LO: 2-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Ethical Responsibilities
The Organization’s Environments
Bloom’s: Comprehension
Digital Story: Connect
30. The term _____ refers to an individual’s personal beliefs about whether a behavior, action, or decision is right or
wrong.
a.
justice
b.
culture
c.
ethics
d.
aesthetics
e.
regulations
c
Easy
p.43
c
Easy
p.42
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31. Which of the following is true of ethics or ethical behavior?
a.
Ethical behavior is the same for all individuals.
b.
Organizations define ethics in the context of the individual.
c.
Organizations themselves have ethics.
d.
Ethical behavior is controlled and directed according to rules made by federal agencies.
e.
Ethical behavior is an individual’s personal beliefs.
e
Moderate
p.43
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Bloom’s: Comprehension
Digital story: Connect
32. The management of a company prevents its employees from meeting in groups of three or more. Which of the
following would best describe these restrictions imposed by the management?
a.
Legal
b.
Unethical
c.
Illegal
d.
Ethical
e.
Racist
Challenging
p.43
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United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Bloom’s: Application
Digital Story: Perform
MGMT.GRIF.16. 2-1 – LO: 2-1
United States – BUSPROG: Ethics
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33. A(n) _____ occurs when an employee’s decision potentially benefits the individual to the possible detriment of the
organization.
a.
loss of confidence
b.
security breach
c.
conflict of interest
d.
violation of organizational culture
e.
act of incitement
34. Which of the following terms represents a formal, written statement of the values and ethical standards that guide a
firm’s action?
a.
Codes of ethics
b.
Business plan
c.
Standard operating procedures
d.
Strategic plan
e.
Licensing agreement
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Bloom’s: Knowledge
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35. Myrtle Wines, a chain of wine retailers, has prepared guidelines that clearly specify how employees should interact
with suppliers, customers, competitors, and other people associated with their business. These guidelines are documented
and distributed at all Myrtle outlets. The guidelines prepared by Myrtle forms its _____.
a.
business plan
b.
code of ethics
c.
strategic plan
d.
fair trade standards
Difficulty: Moderate
p. 44
MGMT.GRIF.16. 2-2 – LO: 2-2
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
e.
licensing agreement
36. Ethical issues in corporate governance are primarily the responsibility of:
a.
interest groups.
b.
employees.
c.
strategic partners.
d.
the board of directors.
e.
federal regulatory agencies.
Easy
p.46
MGMT.GRIF.16. 2-2 – LO: 2-2
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
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37. _____ is a law that requires CEOs and CFOs to vouch personally for the truthfulness and fairness of their firms’
financial disclosures and imposes tough new measures to deter and punish corporate and accounting fraud and corruption.
a.
Sarbanes–Oxley Act of 2002
b.
Glass–Steagall Act of 1933
c.
Gramm–Leach–Bliley Act of 1999
d.
Commodity Futures Modernization Act of 2000
e.
Investment Company Act of 1940
a
Easy
p.46
Challenging
MGMT.GRIF.16. 2-2 – LO: 2-2
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Bloom’s: Application
Digital Story: Perform
38. The set of obligations that an organization has to protect and enhance the societal context in which it functions is
called its:
a.
legal responsibility.
b.
ethical responsibility.
c.
social responsibility.
d.
cultural responsibility.
e.
financial responsibility.
MGMT.GRIF.16. 2-2 – LO: 2-2
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Digital Story: Engage
39. People who argue in favor of social responsibility claim that:
a.
the purpose of business in U.S. society is to generate profit for owners.
b.
involvement in social programs gives businesses too much power.
c.
businesses do not create problems and should not therefore help solve them.
d.
businesses often have surplus revenues necessary the resources necessary to solve problems.
e.
there is potential for conflicts of interest among businesses.
could be used to help solve social problems.
MGMT.GRIF.16. 2-2 – LO: 2-2
United States – BUSPROG: Ethics
The Ethical and Social Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
MGMT.GRIF.16. 2-2 – LO: 2-2
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Bloom’s: Knowledge
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40. Which of the following is an accurate argument against social responsibility for organizations?
a.
Business is not a partner in our society, unlike the government and the general population.
b.
Corporations are citizens in our society.
c.
Profit generation, for the owners, is the purpose of business in U.S. society.
d.
Business does not create problems and should therefore not try to solve them.
e.
Business lacks the resources needed to solve social programs.
41. _____ is the extent to which the organization conforms to local, state, federal, and international laws.
a.
Technological compliance
b.
Philanthropic giving
c.
Ethical compliance
d.
Legal compliance
e.
Risk management
MGMT.GRIF.16. 2-2 – LO: 2-2
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
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42. Which of the following actions represents an attempt to manage social responsibility through 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 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 the Equal Employment Opportunity
Commission (EEOC) standards
MGMT.GRIF.16. 2-2 – LO: 2-2
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
43. Which of the following about the ethical compliance of an organization is true?
a.
It is a formal dimension of managing social responsibility.
b.
It cannot be enhanced by providing training.
c.
It includes awarding of funds or gifts to charities or other worthy causes.
d.
It is used to circumvent their legal obligations.
e.
It cannot be imposed by developing guidelines and codes of conduct.
p. 48
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United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
44. Development of guidelines and codes of conduct is one of the most common ways through which an organization
ensures _____.
a.
risk management
b.
technological specification
c.
philanthropic giving
d.
ethical compliance
e.
export restraint agreements
p. 48
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United States – BUSPROG: Ethics
MGMT.GRIF.16. 2-2 – LO: 2-2
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Bloom’s: Comprehension
Digital Story: Connect
45. Which of the following is an informal organizational dimension of managing social responsibility?
a.
Licensing
b.
Philanthropic giving
c.
Legal compliance
d.
Ethical compliance
e.
Organizational culture
e
Easy
p.50
MGMT.GRIF.16. 2-3 – LO: 2-3
United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
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46. Soft Bites, a factory that makes breads, has asked all its retailers to return the loaves that have not been sold till the last
date of expiry. It then donates all these loaves to shelters for the poor and the homeless. This act of Soft Bites can be
termed as _____.
a.
corporate gifting
b.
legal compliance
c.
ethical compliance
d.
philanthropic giving
e.
apprentice sponsoring
Philanthropic giving is the awarding of funds or gifts to charities or other worthy causes.
Challenging
p. 50
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United States – BUSPROG: Ethics
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Digital Story: Perform
47. _____ is an employee’s disclosure of illegal or unethical conduct by others within the organization.
United States – AK – DISC: Ethical Responsibilities
The Ethical and Social Environment of Management
Bloom’s: Comprehension
Digital Story: Connect