MANA3335 Practice Test Ch. 2

The local university has set up a task force and committed to increasing recycling efforts and reducing its carbon emissions by 50% in the next ten years. These efforts demonstrate a commitment to _____.

*social responsibility

Car manufacturers must meet certain emissions standards as dictated by the federal and state governments. This requirement is an aspect of which dimension of the general environment?

*Political-legal

Determinants of organizational culture include _____.

*shared experiences

An argument against social responsibility in organizations is that _____.

*there is potential for conflicts of interest

Which trade agreement uses the most favored national (MFN) principle, in which members of the agreement receive preferential treatment?

*General Agreement on Tariffs and Trade (GATT)

Jolanta was elected by stockholders to oversee a company's management. While she provides general oversight, she does not get involved with the daily activities of the company. Jolanta fills which role of a company's internal environment?

*A member of the board of directors

What is a tariff?

*A tax collected on goods shipped across national boundaries

BritTrek is a British bicycle company. It produces its mountain bikes in England and sells them throughout North America. Which of the following best characterizes this arrangement?

*BritTrek is exporting its products to North America.

Samir is the supplies purchaser for his office. Samir's brother is a sales rep at a firm that offers a competitive price on the copier paper Samir needs to buy, so Samir did not look for a less expensive supplier. What might have occurred in this scenario?

*Conflict of interest

Olesia is a strong believer in corporate social responsibility. Which argument would support Olesia's view?

*Corporations are citizens in our society.

What is a key disadvantage of licensing agreements as an approach to internationalization?

*Inflexibility

What a company stands for, how it does things, and what it considers important are all learned from the _____.

*organizational culture

Which of the following is a dimension of an organization's task environment?

*Regulators

Theo works for a data mining company. He recently discovered a coworker who has knowingly breached the company's online privacy policy to complete an important project for his manager. If Theo decides to report this breach, his actions will be considered _____.

*whistle-blowing

Keane Industries is a privately owned firm that manufactures and installs large, deep well digging equipment that can be operated with little technical expertise. The company has a cash surplus due to a highly profitable decade of sales in its domestic market. Now ready to enter foreign markets, the biggest priority for the owners is to maintain full control of any new operations. What level of international business activity is Keane Industries seeking?

*Direct investment

Which of the following occurs when a firm headquartered in one country purchases operating facilities in a foreign country?

*Direct investment

L'Meese is conducting a situational analysis in order to develop a five-year strategic plan. She is reviewing a summary of domestic GDP, inflation, and unemployment projections and trends. L'Meese is looking at potential growth patterns for which type of indicators?

*Economic

Kamiya owns a small business that has always put customer service first, even if it meant a loss in profit. Kamiya's company is being bought by another firm that has always emphasized profits to the point that some employees are fired if they cost the company profit. What will be the greatest challenge of integrating the two companies?

*Establishing a single organizational culture

If a company creates a committee to review its guidelines concerning selection and promotion, it is attempting to manage social responsibility through what?

*Ethical compliance

What is the extent to which an organization follows basic standards of moral behavior called?

*Ethical compliance

Which of the following describes an individual's personal beliefs about whether a behavior, action, or decision is right or wrong?

*Ethics

Which was the first, and often considered the most important, economic community in the world?

*European Union

Darian has a profitable software company in his home country, but he wants to sell his software in international markets. He knows he can make modifications in his current facility that will work in other markets. Which type of approach to internationalization should Darian pursue?

*Exporting

Which type of environment includes everything outside an organization's boundaries that might affect it?

*External

Although standards of ethics vary from person to person, how do we apply the concept of ethical behavior?

*Generally accepted social norms

Tate Inc. designs and produces a trendy line of small home appliances. International expansion is an important component of the company's growth strategy. As the management team considers the best approach for entering the Asian marketplace, what is one of the disadvantages of direct investment?

*Greater political risk

Which type of regulator is formed by its members to attempt to influence organizations?

*Interest group

Which of the following is a part of an organization's general environment?

*Interest rates

Which of the following is true of organizational culture?

*It consists of a firm's set of values and beliefs.

Which of the following is accurate regarding organizational culture?

*It is intangible in nature.

Who or what is generally the starting point of an organization's culture?

*Its founder

Jewel wants to expand into the South America market by purchasing a small production company in a South American country to handle production and distribution. Which of the following best characterizes this arrangement?

*Jewel wants to buy a wholly owned subsidiary in South America.

What is the basic premise of ethical leadership?

*Leaders serving as role models

Since the company's founding, Petra and her top executives have provided a consistent message to employees that customers, employees, communities where the company did business, and shareholders were all important. This is an example of which type of informal organization dimension of managing social responsibility?

*Leadership practices

As the top human resource executive, Ahmed is responsible for ensuring compliance with regulations concerning hiring, pay, and workplace safety. Which formal dimension of social responsibility is Ahmed involved in?

*Legal

Excessive transportation costs, government regulations, and home production costs might lead a firm to choose which approach to internationalization?

*Licensing

Montazar has formed an agreement with an international firm whereby he can use its brand name and technology on his products. In return, he pays the other firm a royalty, based on sales. Which type of arrangement has Montazar entered into?

*Licensing agreement

Eli's company has decided to pay workers a living wage instead of a legally required minimum wage. Eli considers this part of the ethical treatment of his employees. Which type of ethical standards is Eli promoting in his organization?

*Managerial

What is an informal organizational dimension of managing social responsibility?

*Organizational culture

Which of the following is the key element in quality decisions about what is right behavior for a situation?

*Personal judgment

Slow's BBQ donates food to the city's public library, which provides free lunches to children in the summer. Slow's is attempting to manage social responsibility through what?

*Philanthropic giving

Which of the following is a formal dimension of managing social responsibility for organizations?

*Philanthropic giving

Alacorp wants to open a new plant and has narrowed the search down to three possible cities. Mikel's job is to investigate the deed and zoning restrictions of each potential location, as well as the tax rates. Mikel also must report on each city council's history in working with new businesses. Mikel is focusing on which dimension of the general environment?

*Political-legal

As the head of IT, Ramon feels strongly about online privacy and has taken measures to address this issue. What can Ramon do to ensure all employees and users of the company systems are aware of the firm's stand on privacy?

*Post the policy on the company website.

What is an effective way to establish one common vision and direction when organizations with different cultural norms merge?

*Promote employees whose behaviors are consistent with the desired culture.

Armen runs a profitable jewelry manufacturing company and sells in many international markets. However, one country he sells to has just placed a limit as to how his company can sell in that country. Which of the following will now limit how much Armen can sell?

*Quota

The culture at SilverCircle is quite weak. The management team changes often. Employees are not able to sense any direction or purpose for the company, and there is a high turnover rate. In contrast, employees at Wellesby speak very highly of their company. Many of them have worked there for years under the guidance of a steady management team. The differences in culture at the two companies are in part attributable to what?

*Shared experiences

What is an advantage of importing or exporting over other approaches to internationalization?

*Small cash outlay and little risk

Dezmon, a small parts manufacturer, is looking for quick entry into foreign markets with access to materials available in those markets. Which approach to internationalization would best fit his needs?

*Strategic alliances

Cut'n'Clip hair salon has opened locations inside many SilverCircle stores. In this situation, what are Cut'n'Clip and SilverCircle to each other?

*Strategic partners

Which of the following are two or more companies that work together in a joint venture or other partnership in the task environment?

*Strategic partners

When Amina needs additional employees on a short-term basis, she contacts an employment agency. This agency not only has employees Amina can contract with on a short-term basis, but it shares information on trends and economic conditions with Amina. Which aspect of the task environment does the employment agency work in when supporting Amina?

*Supplier

Which type of environment includes information a firm can use about competitors, suppliers, customers, and strategic partners?

*Task

Over the next several years, Sushil expects electric vehicles to change the way the retail gas and oil unit of her firm does business . The expansion of electric vehicles will impact which general environment dimension for Sushil's firm?

*Technological

Tariq's organization manufactures custom-ordered blinds. New software on its website that allows customers to select size, colors, and other features to design their own blinds is part of which dimension of its general environment?

*Technological

In a single organization, members of the sales staff always wear business attire, while the product development staff dresses more casually. What does this illustrate?

*The same culture is not found throughout the organization.

Polani is working on her firm's approach to social responsibility. How should she approach the development of this strategy?

*The same way as any other business strategy

Which of the following is a goal of the World Trade Organization?

*To establish impartial procedures for resolving trade disputes

The United States, Canada, and Mexico entered into which agreement to eliminate barriers to trade among them?

*USMCA

Where does any effort to enhance ethical behavior in the workplace begin?

*With top management

An organization's culture _____.

*can become a weakness

When Yui began a new job, included in her packet of information was a set of guidelines for how to act in accordance with the firm's values. These guidelines are the firm's _____.

*code of ethics

In light of recent ethical standards in which the boards of major companies have approved loans or bonuses to CEOs or board members, increased attention has been paid to _____.

*corporate governance

The language, values, symbols, and beliefs that guide behavior in a country are that country's _____.

*cultural environment

Pollack Food Services supplies meals for all the schools in the Culver City public school system. In the Pollack Food Services task environment, the school system is considered to be a _____.

*customer

Culture determines the organization's _____.

*feel

A disadvantage of direct investment is _____.

*greater economic risk

The Sarbanes-Oxley Act of 2002 _____.

*imposes tough measures to deter corporate and accounting fraud

The actual physical environment, such as an office or a warehouse, and the work that people do are all part of the _____.

*internal environment

The board of directors is part of an organization's _____ .

*internal environment

Destani is setting up a training program for all managers who interview candidates and make hiring decisions to ensure they follow all local, state, and federal laws in all areas, from ADA compliance to determining correct knowledge, skills, and abilities needed for the job. Destani is ensuring the firm's hiring practices follow guidelines for _____.

*legal compliance

Behaviors that relate to ethical ambiguity in areas such as advertising, purchasing, solicitations, bargaining, and other business relationships are part of _____.

*managerial ethics

The light assembly plants built in Northern Mexico close to the U.S. border, which are given tax breaks by the Mexican government, are referred to as _____.

*maquiladoras

Math-A-Mazing requires all employees to wear something math-related to work every day. They help by providing pins, scarves, and caps printed with numbers or math signs. Employees can wear one of these items or come up with their own. According to the company, this policy makes the company a fun and exciting place to work. This management decision affects the _____.

*organizational culture

Destani bought stock in her favorite technology company, giving her legal property rights to the business. Destani is now a(n) _____.

*owner

A major computer technology firm has committed to building a computer lab at the local university, and it is awarding scholarships to students who pursue this field. This action is an example of _____.

*philanthropic giving

Culture can be maintained by _____.

*slogans and ceremonies

Organizations relate to their environments in ways that often involve ethical dilemmas and decisions. These situations are generally viewed within the context of the organization's _____ .

*social responsibility

Sabine just submitted a bid to take over the paper supply contract for a large firm in town. She knows that another firm bid as well, and only one of them will win the contract. These two firms exist in each other's _____.

*task environment

Roberto is a strong believer in social responsibility and wants his company to become more socially responsible. One of the arguments he makes is that _____.

*the company has surplus revenues that could be used to solve social problems

Employees at Sabine's organization are expected to report any suspected illegal or unethical conduct by members of the organization. This is a policy that encourages _____.

*whistle-blowing