Principles of Management Exam 2

______ is a tool that reminds managers to look at several distinct categories in the macro environment.

PESTEL

Which of these describe the area of applied ethics that focuses on real-world situations and the context and environment in which transactions occur?

business ethics

A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out

business plan

A firm's ______ environment includes components inside the firm and outside the firm.

competitive

_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.

debit

Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing

debt

The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).

debt; equity

Which of the following describe the systematic and intentional analysis of both a firm's internal state and its external, competitive environment?

environmental scanning

Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times music is played and shared among peers. Jain used _____ financing.

equity

_______ financing is a form of fiancing consisting of funds raised through the sale of stock in a business

equity

Which of these refers to our choices and decision-making processes and our moral principles and values that govern our behaviors regarding what is right and wrong?

ethics

______ factors are things in the global environment that may impact a firm's operations or success, examples are a rise in interest rates, or a natural disaster.

external

In low uncertainty avoidance countries managers are advised to provide structure and order to reduce uncertainty and ambiguity for subordinates

false

In societies with low power distance, people are more likely to accept that power inequality is good and acceptable.

false

Research finds that while education is necessary for job placement, it plays no role in socializing individuals into expected norms in their society.

false

the global strategy is the one in which a company adapts its products to meet the needs of the local market

false

_____ factors are characteristics of the firm itself.

internal

_____ are entrepreneurs who apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own. They enjoy a high degree of autonomy while receiving a regular salary and financial backing from their employer

intrapreneurs

_____ are entrepreneurs who start a series of companies

multipreneurs

Which of the following SWOT factors are external to the firm?

opportunities and threats

An entrepreneur is a person who _____ a business.

owns and operates

a common use of business plan is to:

persuade lenders and investors to finance the venture

which of the following represents a moral and legal entitlement-based approach?

rights

Which term describes the process that firms use to study and understand the many different layers and aspects of their competitive environment?

strategic analysis

Which of the following SWOT factors are internal to the firm?

strengths and weaknesses

In the context of Porter's model, a(n) ____ is any other product or service that can satisfy the same need for a customer as an industry's offerings.

substitue

tariffs are taxes that are added to the price of imported international products

tariffs

Which of the following describe the government policies through which countries agree to eliminate cross-border barriers to trade and to promote global integration?

trade agreements

A global strategy is based on the assumption that the world is extremely interconnected, and that patterns of consumption and production are fairly homogeneous worldwide.

true

Being honest is not simply telling the truth and avoiding deceitful behaviors; it requires leaders to be as open as possible and to describe reality fully, accurately, and in sufficient detail

true

Culture tells people who they are, which behaviors are appropriate, and which are not acceptable in any society.

true

For ethical leaders, authenticity and integrity, in addition to their values, are also important components of character and behavior that must also be translated into attitude and action toward followers, external stakeholders, and broader communities. Correct answer:

true

Our choices and decision-making processes and our moral principles and values that govern our behaviors regarding what is right and wrong are also part of ethics.

true

People who live in societies with low individualism are seen as being part of a wider group, known as the in-group.

true

The ethical dimension of stakeholder theory is based on the view that profit maximization is constrained by justice, that regard for individual rights should be extended to all constituencies who have a stake in a business, and that organizations are not only "economic" in nature but can also act in socially responsible ways. Correct answer:

true

ethical relativism holds that people set their own moral standards for judging their actions

true

imposing tariffs on imported goods gives domestic companies a price advantage and protects them from foreign competition.

true

which of the following represents a duty-based approach?

universalism

Which of the following represents a consequentialist, "ends justifies means" approach?

utilitarianism

A firm's _____ is the progression of activities it undertakes to create a product or service that consumers will pay for.

value chain