Chapter 3-ENTR-202: Small Business Environment: Managing External Relations

Which of the following are examples of a network connection?

Business associations Family and friends Religious and civic organizations

Which of the following statements about the golden rule are correct?

It can be the easiest way to think about ethical dilemmas. Many world religions have a version of it. It requires individuals to ask whether they would like someone to take the same action toward them.

In the context of low-cost and fast ways to monitor the business environment, which of the following is true of the Flipboard application?

It can be used to create a free customized feed of news from all kinds of brand-name sources.

Mutuality is the

action of each person helping another.

Which statement regarding how to handle a crisis are correct? (Check all that apply.)

Deal with the crisis quickly Get to the scene as soon as possible Have one person as the firm's spokesperson

Which of the following are one of the three forms of legitimacy that entrepreneurs can develop?

Based on the organization. Based on a product. Based on people.

______ is an ethical model that asks whether someone would be comfortable having his or her decisions and name advertised for all to see.

Billboard principle

Which of the following are approaches to managing a firm's external relations?

Building legitimacy. Developing a social network.

Which of the following are examples of the political-legal sector of the general environment?

Changes in political parties and players. New legal and policy initiatives. Federally mandated laws and programs that affect businesses.

Which of the following are among the three steps involved in making ethical decisions?

Defining a moral problem Generating alternatives that meet a business's ethical, legal, and economic goals

_____ entrepreneurship is another term for sustainable entrepreneurship because of the positive outcomes associated with this form of entrepreneurship.

Green

Which of the following statements about the billboard principle are correct?

It causes one to think about the consequences of everyone knowing what he or she did. Its name comes from billboards found on the side of the road. It focuses on publicizing one's deeds.

Which of the following statements regarding ethics are correct? (Check all that apply.)

People consider ethics in determining whether decisions are good or bad People make judgments about actions based on their personal ethics Ethics is a system of values

PROFIT

Property, Relational, Organizational, Financial, Intellectual, Technological

Which of the following statements about utilitarianism are correct? (Check all that apply.)

The focus is on the communities' best interest in the future. Basically, it's about actions resulting in the greatest good for the greatest number. It has a strong community focus.

The external environment

The forces, institutions, and people (i.e., the rest of the world) outside the boundary of the firm.

______ is an ethical model that supports seeking the greatest good for the greatest number of people.

Utilitarianism

Which of the following statements reflects the idea of universalism?

What if everybody did what I want to do? What kind of world would it be?

The ______ sector of the general environment includes the trends and current conditions of the overall market for goods and services, the availability of equity and credit, and employment.

economic

A set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done refers to _____.

organizational culture

The ______ sector of the general environment includes cultures often based on factors such as nationality or religion, and subcultures that are based on groups formed around shared interests within a larger culture.

sociocultural

______ is/are the general description for the processes and skills used in the management of a firm's interactions with people, organizations, and institutions outside of its boundary.

External relations

Networking is

interacting with others in order to build relationships useful to a business.

Which of the following statements about ethical dilemmas are correct? (Check all that apply.)

Always making decisions that are ethical is difficult. Ethical dilemmas often aren't simply a yes or no answer. Often the best choice is not clear.

Which of the following statements about a crisis are correct?

It poses a major problem for the business or its people. The survival of the business is at stake. Immediate action is necessary.

Which of the following are examples of a network connection?

Small business support organizations. Co-workers and customers. Electronic networks like Linkedin.com.

True or false: In the process of ethical decision making, firms are required to choose the most cost-effective alternative to meet their ethical, legal, and economic goals.

This is false. In the process of ethical decision making, firms are required to choose the best alternative to meet their ethical, legal, and economic goals.

The ______ sector of the general environment includes innovation, invention, and modernization.

technological

______ are publications that target specific industries and professions.

Trade magazines

A(n) ______ dilemma is a situation that occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do.

ethical

Which of the following statements about sustainable entrepreneurship are correct?

Nearly half of small businesses recycle paper and cans. It maximizes the use of recycled material, improves the environment, or both. It exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources.

Which of the following statements about the six types of resources are true?

The acronym PROFIT stands for the six types of resources needed. Studying competitors can help decide which resources your business will need. Start-ups need some of all six.

True or false: According to research by Thomas, Schermerhorn, and Dienhart, managers tend to focus the least on government fines and penalties, which have relatively large costs to their firms.

This is false. According to research by Thomas, Schermerhorn, and Dienhart, managers tend to focus on government fines and penalties, which have real but relatively small costs to their firms.

True or false: Trade magazines are an important source for information concerning industry trends and other external environmental factors.

This is true. Nearly every industry has a trade magazine or journal. Many are published by their trade association.

____ an ethical model that suggests that there is a code of right and wrong that everyone can see and follow.

Universalism

Which of the following are components of the entrepreneurial ecosystem? (Check all that apply.)

Universities Government agencies Mentors

Ethics

______ is a system of values that people consider in determining whether actions are right or wrong.

Which of the following statements about legitimacy are correct?

Entrepreneurs who are seen as different often have difficulty establishing legitimacy. Building trust among customers and other key groups is important to gaining legitimacy. Gaining it is a top challenge that new businesses face.

Which of the following statements about the costs of ethical failures are correct?

Managers tend to focus on government fines and penalties. Level two costs include corrective actions and remedial education. Customer defections, loss of reputation, and lower morale are often more damaging to businesses.

Which of the following are true statements in the context of organizational culture? {(Check all that apply.)

Organizational culture is a key element of a firm's organizational identity. Compared to larger businesses, it is easier for small businesses to manage organizational culture.

______ is part of the BRIE model; composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters, and stories.

Organizational identity

The ______ consists of people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm.

internal environment

The ______ sector of the general environment reflects the broad trends affecting law and government.

political-legal

______ entrepreneurship is an approach to the operation of a firm, the line of business of a firm, or both, which identifies or creates and then exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources, maximizes the use of recycled material, improves the environment, or any combination of these outcomes.

Sustainable

External relations

______ is/are the general description for the processes and skills used in the management of a firm's interactions with people, organizations, and institutions outside of its boundary.

Legitimacy

______ is the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors.

The task environment

is made up of those components that a firm deals with directly such as customers, suppliers, consultants, media, and interest groups.

The ______ environment is made up of those components that a firm deals with directly such as customers, suppliers, consultants, media, and interest groups.

task

Which of the following are inexpensive ways to monitor a firm's external environment?

Regularly read trade and professional magazines. Keep a notebook on things that bother you. Speak to customers, suppliers, and professionals like accountants.

Which of the following is said to be the most important source of legitimacy according to small business owners?

Understanding the product

The environment is

the sum of all the forces outside the firm or entrepreneur.

The sum of all the forces outside the firm or entrepreneur is known as the ______.

environment

The ______ environment is a part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments.

general

Organizational identity is

composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters, and stories.

The entrepreneurial ______ is the specific configuration of the environment that reflects the components that are most central to developing a strong and active community of start-up businesses.

ecosystem

The ______ rule is an ethical model that suggests you should treat others in the manner you wish to be treated.

golden

General environment

is made up of sectors of major forces that shape the people and institutions of the task and internal environments.