Principles of Business Exam 3

Businesses that successfully adapt to current market situations often realize that

change is an opportunity

An important factor that has a significant effect on the general business environment is

technology

Which of the following is a true statement about business ethics and the law:

The two are not the same thing, but they do overlap

Which of the following is a reason that a U.S. company would decide to offer its products in other countries:

To expand to new, untapped markets

Online chats, forums, and communities that enable businesses to learn about the wants and needs of their worldwide target market have created a new form of

social relationships

Which of the following factors affects society's basic values and behaviors that influence their buying decisions:

Cultural

Which of the following is a situation that might make business people from other countries feel uncomfortable and impact their ability to conduct business:

Standing very close to others during conversations

The U.S. produces widgets faster and cheaper than Switzerland. In this example, the U.S. has a(n) __________ advantage

absolute

Levels of inflation and unemployment are factors that affect __________ in the world market.

competition

Which of the following is an environmental factor that affects the performance of businesses that market products on a global level:

Political risk

A main reason that environmental scanning is important is so that businesses can be aware of

potential threats

Which of the following is a benefit of international trade:

An improved standard of living

Which of the following would be done first in an environmental scan:

Identifying participants and responsibilities

A country with a weak currency value tends to

decrease its imports and increase its exports

Why should a business practice good ethics?

An ethical business contributes toward its own success.

To maintain its current customer base and attract new markets, the KMV Company lowered the prices of some of its products. What external factor most likely influenced this action?

Changes in consumer spending

The law that requires businesses to hire, train, transfer, and promote employees without regard to race, color, gender, religion, or national origin is the __________ Act.

Civil Rights

Which of the following factors affecting the business environment is represented by the business's location:

Environmental

Which of the following is the best action for businesses to take in order to adapt to changing markets:

Implement innovative strategies and ideas

Which of the following is a public good that is provided by the government:

Interstate highways

Which of the following will foster a business's ability to adapt to changing markets:

Proactive management

Which of the following is an example of nonverbal communication that might have a different meaning to business people in other parts of the world:

Shaking hands when greeting a customer

Which of the following factors has aided the most in creating a global business environment:

Technology

Which of the following is an example of a demographic trend:

The aging of the population

Which of the following situations would most likely indicate the need to adapt to changes in the business environment:

The supply of materials used in manufacturing a product has decreased.

What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit?

Using price supports

A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action

is not illegal

One internal factor that affects the business environment is

management style

A business that fails to protect its employees from unnecessary risk or health hazards on the job may be sued for

negligence

Which of the following is a factor that would encourage businesses to start a business at a particular location:

Easy access to natural resources

What is one reason why the federal government awards patents to businesses that have invented new products or manufacturing processes?

To encourage research

Why does the government set and collect taxes?

To help pay the expenses of government