Exam 2: The Environment of Business

In terms of organizational boundaries and environments, which is correct? Large business firms are heavily influenced by events in the external environment, but small business firms are much less influenced. No single firm can control the environment. Most organizations have a single environment, but some have multiple environments they must cope with. The major elements of the external environment are marketing, finance, production, and human resources. The most important features of the external environment are the political and social aspects.

If we know that it takes, on average, one Canadian worker and one Canadian dollar to make 10 soccer balls in an 8 hour work day, we can measure Canada's balance of trade. GDP. productivity. GNP. GNP and productivity.

Which of the following best describes real GDP? Total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system Total quantity of goods and services produced by an economic system Total value of all goods and services produced within a given period by a national economy through domestic and international factors of production Total value of all goods and services produced within a given period by a national economy, through domestic factors of production measured in current dollars, or with all components valued at current prices Total value of all goods and services produced by a national economy within a given period, calculated to account for changes in currency values and price changes

Why is business process management important?

The main measure of growth in an economic system is the business cycle. standard of living. gross national product. gross domestic product. aggregate output.

An approach which moves from a department-orientated organization to a process team orientation is called process improvement. business process management. six sigma. outsourcing. virtual restructuring.

Technology transfer refers to the process of moving new technological developments out of government research labs and into the private sector.

Canada's GDP per capita (in $US) is approximately $15 000. $31 000. $42 000. $50 000. $66 000.

Basic research and development describes focusing specifically on how a technological innovation can be put to use in the making of a product or service that can be sold in the marketplace. those activities that do not create value for the firm. the process involved in getting a new technology out of the lab and into the marketplace. improving knowledge in an area without a primary focus on whether any discoveries that might occur are immediately marketable. those activities that increase a company's revenues.

John is experiencing __________ unemployment because he is out of work temporarily while looking for a new job, while Sally is experiencing _______ unemployment because she is out work because of a downturn in the business cycle. seasonal; structural structural; seasonal frictional; cyclical cyclical; frictional seasonal; cyclical

Research and development (R&D) includes activities that are necessary to provide new products, services, and processes. Two basic types of R&D are deflationary and inflationary. public and economical. college and university. pure and theoretical. basic and applied.

Full employment is impossible.

Spinoffs generally occur because the company no longer wants to be in the business of the unit they are spinning off.

Viral marketing can result in ________ when compared to traditional marketing. faster consumer awareness and a wider reach slower consumer awareness and a wider reach quicker consumer awareness and higher costs lower rates of recall and slower consumer awareness lower rates of recall and higher costs

How is GDP per capita calculated?

The majority of companies that have adopted ESOPs have experienced improvement in both sales and profits.

Explain the relationship between productivity and the standard of living.

________ uses word of mouth and the internet to market products. Virtual marketing Compressed channel marketing Viral marketing Internet marketing None of these

The ________ is the economic value of all the products that a country exports minus the economic value of imported products. real GDP gross national product nominal GDP balance of trade national debt

Many firms use ________ to provide cafeteria operations for their customers. enterprise management disruption management outsourcing core competencies vertical integration