(MGT253)Homework Quiz 3

Which of the following statements is true of legitimacy indicators?

A. A small business cannot survive without incorporating all the 30 characteristics of the three types of legitimacy indicators. B. Part of legitimacy and building trust for a firm comes from changing the legitimacy characteristics frequently. C. It is easy for businesses to incorporate all the elements of the different types of legitimacy indicators. D. Repeating one legitimacy characteristic daily does more to build social capital than changing the legitimacy characteristics.

The owner of Elixir Force Inc. received the most prestigious corporate award and was also titled as "the most outstanding new entrepreneur of the year." In the context of people-based legitimacy, this is typically an indicator of:

A. Brand equity B. Public recognition** C. Business network membership D. Experiential supports

Thomas has started a new business venture for which he has been using highly economical resources, such as the market research data available in public libraries, low-interest funds borrowed from national banks, and equipments hired on lease. This technique used by Thomas to overcome resource constraints in his start-up firm is best known as _____.

A. Caveat emptor B. Moonlighting C. Bootstrapping D. Collective bargaining

A firm will be recognized for its industry leadership, a product-based legitimacy building characteristic, typically when:

A. Its employees dress in casual attire to work. B. Its service standards are benchmarked by competitors.** C. It refuses to use outdated technology. Incorrect D. It uses common technologies of the industry.

Which of the following statements is true of social capital?

A. Social capital cannot be found on a business's balance sheet. B. The less of social capital a firm has, the greater the value of the firm. C. Social capital is capital in the same sense that cash or land can be.** D. Small businesses high in social capital are treated less fairly by regulators.

Erion Inc. is an e-commerce company that sells its food products under the brand name Heal Meal. Its business partners have planned to enter into a strategic alliance with a well-reputed retailer in the Asian market in order to expand its operations to the Asian continent. Which of the following is a reason for the company having a lack of organization-based legitimacy in the Asian market?

A. The absence of a physical location to conduct business** B. It's partnership with another well-reputed business C. The use of a brand name to sell products D. Its legal form as a partnership firm

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

A. The task environment of a firm is larger than its general environment B. This part os the environment is made up of the people a firm deals with every day** C. It is extremely easy to recognize new trends and changes among the members of the task environment D. It is a part of the internal environment made up of employees, owners, and board of directors

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

A. This part of the external environment is smaller than the task environment. B. The task and internal environments of a firm are independent of its general environment. C. It excludes the broad trends of the environment affecting law, government, and politics. D. It always needs to be considered in terms of its social supports and institutional supports.**

The CEO at River Castle Inc. asked the employees to prepare a report on ways in which the company could become more environmental friendly. The reports revealed areas in which the company had been unnecessarily adding to its carbon footprint and consuming excessive energy due to faulty machines. As a corrective action, all the faulty and outdated equipment were replaced with efficient equipment. This is an example of a(n) _____.

A. arraignment B. green audit** C. positive feedback D. bootstrap paradox

Sylvia had helped Jonathan, one of her previous subordinates, in establishing his business by referring him to an important venture capitalist. As an appreciation of her help, Jonathan has now agreed to hire and personally mentor her son as a trainee in his company. Both Sylvia and Jonathan are typically exhibiting _____.

A. collectivism B. bicameralism C. mutuality** D. autocracy

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 _____.

A. effectuation B. social loafing C. cognitive resonance D. ethical dilemma**

A way to minimize the need for high-pressure ethical decision making situations in business is by:

A. getting down to every detail of what to permit or prohibit in positively managing a firm's external relations. Incorrect B. using lapses in external relations as learning experiences for the rest of the firm by talking openly about the issues. Correct C. excluding the lessons of legitimacy, social networking, crisis management, sustainability, and ethical decision making from everyday activities. D. getting emotional when counseling around external relations issues and by keeping the consequences of external relations lapses inconsistent.

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) _____.

A. mutuality B. ethical dilemma** C. caveat emptor D. cognitive dissonance

Ivan has recently started his new business venture, and he has been busy visiting trade exhibitions, business organizations, electronic business forums, and his previous colleagues in order to build contacts. This will help him use their expertise to the benefit of his business. Ivan is typically working on building a _____.

A. social network** B. concern C. focus group D. global common

When compared to large businesses, small business owners start their business typically to take advantage of:

A. the caveat emptor business philosophy. B. an innovative idea** C. the large amounts of resources they have. D. their ability to scan the environment better.