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
