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33 questions
Which of the following is a factor of microeconomics?
Unemployment rates
Supply and demand for a commodity
Interest rates
Inflation
A social environment is BEST described as:
Core values and practices in which a business is based.
The social relations between company employees and management.
Society's artificial constructs in relation to the natural environment.
The natural environment in which a person lives.
A business influences its external environment by:
Rejecting the public's opinion of the business.
Making sure its internal environment is as strong as possible.
Utilizing advertising and public relations strategies.
Producing less expensive goods and services.
Why would a niche strategy represent an example of a selective strategy?
Aims to take full control of a specific market and neglects all others
It focuses on companies that do not have a large market share and purchases them.
It aims to produce a certain product at the highest level of quality possible.
It focuses on specific groups of consumers rather than trying to compete for the entire market.
In the year 2100, the economic market now reflects the theoretical idea of perfect competition. James is deciding which car he will buy. What will be the only perceived difference for him?
Price
Quantity
Information
Quality
Which of the following is NOT true about technology?
It can improve productivity.
It's always good for everyone.
It can create new markets.
It can reduce costs.
Which of the following is NOT a barrier to trade?
Terrorism
Tariffs
War
Economic integration
How do macro-economic factors and micro-economic factors differ?
Macroeconomic factors focus on unemployment, inflation and taxes, while microeconomic factors deal with individual decision-making.
Macroeconomic factors focus on consumer preference, while microeconomic factors focus on monetary policy and regulating the amount of money present in the economy.
Macroeconomic factors focus on the local economy, while microeconomic factors focus on the world economy.
Macroeconomic factors focus on the desires of the individual, while microeconomic factors determine the supply and demand required.
Which of the following is considered part of an external business environment?
Severance packages for senior management
Office space
Standard operating procedures
Fiscal policy that affects export
The legal environment of a business includes the laws and regulations to which a business is subject, as well as the enforcement agencies and the judicial system. Which of the following describes the legal environment of a business?
It allows a business to reduce their liability risk and to identify issues that require a lawyer's help
It helps a business avoid being fined for violating the law
It helps because there is no one-size-fits-all set of laws that applies to every business
All answers are correct
How does a supply that exceeds the demand impact the price?
It causes the prices to not be impacted by inflation
It causes the prices to decline
It causes the prices to skyrocket
It causes the prices to stagnate
How does a cost leader attempt to maximize profits?
Produce products of highest possible quality, leading the market
By producing products below their market value
By producing a small number of products that are sold at very high prices
By producing goods or services at a lower cost; thus, gaining a competitive advantage
Rich has created a candle that has become popular and unique, which is why consumers can differentiate Rick's candle from competitors. Which of the following is another factor for Rick to gain a competitive advantage?
When it costs the same to manufacture a product as his competitor
When a competitor has the same marketing campaign as Rich
When the perceived difference between his products and competitors is important to consumers
When a competitor makes the same product as Rich
Which of the following would have to price-cut because it is a company's only aggressive strategy?
A perfectly competitive market
A monopoly
An oligopoly
An Imperfect market
How is an imperfect competition defined?
Multiple firms in a market where all actors have information required to make a rational decision.
A significant number of firms competing in a market with undifferentiated goods or services.
A relatively small number of firms competing in a market with differentiated goods or services.
Firms competing in a market where everyone produces the same good or service.
_____ is when the members of an organization seem less concerned with coming up with the best decision and more concerned with social cohesion and consensus.
Culture
Groupthink
Innovation
Laissez-faire leadership
The Aquatics Company wants to have created a more diverse workforce. Which of the following subgroups helps make the workplace more diverse than before?
The elderly
Millenials
Employee who practice Christianity
White males
Why is a diverse workforce important for a business?
Businesses are required by federal law to hire a certain quota of women and minorities.
Businesses with a diverse workforce are still able to maintain the corporate status quo.
Businesses can save money by paying women and minority employees less and promoting them less often.
Businesses are strengthened when they integrate the values and beliefs a diverse workforce offers.
How does the internal social environment of a business differ from its external social environment?
A business does not need to adapt to its external social environment in order to survive.
A business has absolute control over both its internal social environment and external social environment.
A business must enforce its internal social environment over its external social environment to survive.
A business has more control over its internal social environment than external social environment.
How is technology best described?
Development of online based processes to reach as many people as possible
Application of knowledge to the world to affect the environment by controlling or changing it
Development of electronic based products based on consumer demand
Expansion of scientific knowledge through research
When technology started to advance, computers took the place of typewriters. Which of the following BEST describes this process?
Technology decline
Creative destruction
Outsourcing
Social awareness
Ultimately, technology can be divided into what two categories?
Products and processes
Powered and unpowered
Electronic and non-electronic
Hardware and software
When does creative destruction occur in business?
When an old technology re-engineers an old product or process from other old products or processes
When an old technology is used to make improvements in a new product or process without destroying an old product or process
When a new technology creates a new product or process but destroys an old product or process at the same time
When an old software version is replaced by an updated version
How does an embargo differ from a tariff?
An embargo is usually aimed against a country that is a threat to global peace and security, while tariffs are aimed against countries that employ protectionism.
An embargo is when a business' government prevents it from engaging in trade with another country, while a tariff is a tax on imported products.
An embargo encourages multilateral trade, while a tariff focuses on reducing trade exchange on a bilateral level.
An embargo is a trade restriction that sets a limit on a number of products that can be imported from a specific country, while a tariff increases administrative requirements for foreign products.
Why is it important for a business to understand the culture of a country?
Because it can help the business satisfy specific consumer preferences
Because culture dictates the level of taxes a country will implement
Because it can help the business understand their competition
Because it will help them predict whether inflation will be high
Why are tariffs usually imposed?
To make domestic producers more competitive
To increase the number of administrative restrictions on foreign products
To prevent trade with another country
To increase the number of foreign products on the market
Which of the following is an issue in business as a company expands and wants to export its products?
Marketing expenditures
Environmental scanning
Dealing with import quotas and tariffs
Cultural differences
John decides to open up a small Italian restaurant. John will face some macroeconomic conditions that could affect whether his business fails or is successful. Which of the following are macroeconomic conditions that could affect his business?
The effect of global imports imports
The high costs of marketing
An increase in demand for Italian food
Low-interest rates on small loans
The Smith Corporation sells crude oil to customers. Which type of competition would the company encounter?
Perfect competition
Oligopoly competition
Monopolistic competition
Imperfect competition
The product development team of a large pet food company considers adding cheap, low-quality ingredients as a filler in one of its popular products. Based on the strength of the company brand and management's approval, the team decides to go ahead with developing the product despite each member having private concerns. This scenario illustrates which concept and why?
Groupsync, because they are staying with their original plan.
Groupthink, because they are placing group cohesion first.
Groupspeak, because they are collectively making decisions.
Groupon, because they are developing a new product.
When technology started to advance, computers took the place of typewriters. Which of the following best describes this process?
Technology decline
Creative destruction
Outsourcing
Social awareness
John is thinking about opening a new business. He is looking at different business environments based on unemployment, inflation, interest rates, and taxes. Which type of environment includes the elements discussed?
A microeconomic environment
A legal environment
A macroeconomic environment
An internal environment
Laura is the owner of a local candy shop. Laura wants to expand her company globally, but it is difficult to enter into the industry. Which of the following would BEST benefit Laura?
Partner with local shops to sell her candy
Try and develop a niche product instead
Enter right into the global market
Form a subsidiary company for the target market
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