Exam 2: The Environment of Business

The economy in the African nation Sponeto has been stagnant for a long time. The government and central bank of Sponeto have been considering options for what can be done to help stimulate investment and growth in the economy. Some in the Sponeto government would like the country to appeal to the World Bank for funding toward economic development, rather than short-term monetary stimulation. Which of the following, if true, would strengthen the case for this course of action? Sponeto has come under criticism in the United Nations for alleged human rights abuses. Sponeto has been able to grow enough food to export to surrounding nations. Corruption is a major problem among Sponeto's government officials. Sponeto urgently needs humanitarian aid due to a recent natural disaster. Chronic and widespread poverty is Sponeto's biggest economic problem.

How does the external environment affect business?

When Molson and Adolph Coors merged, this was an example of a horizontal merger.

When unemployment is low, businesses raise the wages that they are willing to pay.

Which of the following best describes the term gross domestic product? Total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system Conditions of the economic system in which an organization operates The total value of all goods and services produced within a given period by a national economy through domestic factors of production The total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located The total quantity of goods and services produced by an economic system

Since the increase in unemployment in a small Atlantic Canadian town, retailers have noticed that sales have decreased. The retailers are being affected by which element of the external environment? Socio-cultural Economic Environmental Global Political‒legal

Companies that continue to act unethically (especially in the area of accounting) will most likely have their shares appreciate in value because shareholders like aggressive accounting practices which help increase the price of their stock. have their shares depreciate in value as shareholders become leery of aggressive accounting practices which distort a company's real financial condition. never be able to sell shares of stock to the public. find that their share price will be unaffected by this practice. no pattern is evident.

What is a recession?

Ben is unemployed, but he is currently in a training program designed to increase the skills he needs to perform the kinds of jobs that are available. Ben is experiencing __________ unemployment. frictional seasonal cyclical structural none of these

What is inflation and how does it threaten economic stability?

PepsiCo created a new corporation called Tricon Global Restaurants (now called Yum! Brands Inc.) which included Pizza Hut, KFC, and Taco Bell. This is an example of a(n) hostile takeover. acquisition. spinoff. merger. divestiture.

The more money the Canadian government borrows (by issuing savings bonds) , the ________ money is available for private borrowing and investment that increases ________. more; productivity less; productivity more; purchasing power parity less; GDP more; GDP

List the three primary factors that threaten economic stability.

List the five forces in Porter's model.

Marquand says: Information technology has had its biggest impact on business in communication and access to data. With the networking and streamlined communication modalities now available to businesses, businesses can collaborate with each other as well as within a business at different locations with the greatest of ease. Businesses also have access to a greater range of information and at a greater speed than ever before. And with this information being constantly updated, businesses now have the ability to plan in response to market conditions with much greater efficiency than before. Stevenson responds: Information is important, but what's most important is how that information is used. And there is no more direct way that information technology has helped businesses than the ability to sell directly. Selling online has opened up entirely new markets that allow businesses to make greater profits, with greater efficiency, than ever before. Many businesses, such as Amazon, have been able to use online selling exclusively to dramatic effect: without having to spend money on bricks-and-mortar storefronts, they can make billions in profits selling products at low prices. Which of the following is at issue between Marquand and Stevenson? Whether online selling is an important factor in business today Whether information technology has made a significant difference to businesses Whether doing business is significantly helped by online communications What the most important effect of information technology has been on business What has changed in business since the advent of the latest information technology

What is outsourcing? Give an example of outsourcing.

Stability, as an economic goal, is a condition in which there is a balance between money available and goods produced.

Under what circumstances can inflation be a positive factor?

________ refers to the skills and resources with which the company competes best and creates the most value for its owners. Labour Outsourcing Core competencies Viral marketing Business process management

Which of the following best describes the breadth of socio-cultural environment factors? Customs, attitudes, and values Demographic characteristics, customs, and values Values, attitudes, customs, and demographic characteristics Customs, values, religious beliefs, and consumer wealth Values, religious beliefs, and consumer wealth