Exam 3: Small Business Environment: Managing External Relations

BATNA,or the "Best Alternative To a Negative Situation" happens when the best outcome is identified by the parties involved.

Justin is a sales executive at a manufacturing company.One of his clients who purchases products from him at a higher price than that quoted by competitors is facing financial problems.Since Justin's promotion depends on his achieving the sales target,he cannot decide whether he should inform his client about the lower prices its competitors are paying.Justin is facing a situation known as _____.

Which of the following statements is true about the general environment?

Being a small business makes managing organizational culture harder than in larger businesses.

Briefly discuss LaRue Hosmer's model for making ethical decisions in business.

Jake is a small business owner of Macho Doors,a manufacturer and installer of garage doors.His business has earned the reputation as being reliable,trustworthy,and one that makes high quality,long-lasting doors.However,with rising gasoline and wood prices,Jake is finding it hard to maintain the existing quality standards.If he continues with the existing quality standard,his profit margins will go down and he will not be able to hike his employees' salaries; if he inserts panels of lower quality wood the reputation of his business will be lost.These are typically _____ legitimacy building features.

_____ means that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers,suppliers,investors,or competitors.

Which of the following legitimacy-building features does having trademarks,service marks,patents,or copyrights typically indicate?

Gathering resources for a business is easier during economic recessions than during economic boom times.

Which of the following legal forms of business is typically considered the least legitimate?

One emerging way to focus on your immediate environment is called the _______.These are the elements that make up the settings most helpful to promoting entrepreneurship.

As the owner of a business,quickly admitting that the firm is in trouble indicates a lack of accountability.

Compared to a corporation,a sole proprietorship is usually considered more legitimate by customers,suppliers,and investors.

_____ refers to a set of shared beliefs,basic assumptions,or common,accepted ways of dealing with problems and challenges within a company that demonstrate how things get done.

Jake is a small business owner of Macho Doors,a manufacturer and installer of garage doors.His business has earned the reputation as a reliable,trustworthy business that makes high quality,long-lasting doors.However,with rising gasoline and wood prices,Jake is finding it hard to maintain the existing quality standards.If he continues with the existing quality standard,his profit margins will go down and he will not be able to hike his employees' salaries; if he inserts panels of lower quality wood the reputation of his business will be lost.The situation that Jakes faces is typically described as a(n)_____.

Which of the following questions in LaRue Hosmer's approach to ethical decision making best reflects a decision maker's real or presumed obligations to people and institutions in a firm and in its task environment?

Which of the following is the most appropriate approach to building organization-based legitimacy?

_____ means "let the buyer beware," and is a philosophy sometimes used by businesses to put the burden for consumer protection onto a customer.

In a negotiation settlement,_____ refers to the second-best outcome identified by the parties to help clarify the value of achieving a successful negotiation.

What are the three general forms of legitimacy that small businesses can develop?