MGT 100 Exam WITH ANSWERS - Full.pdf

MGT 100 Exam answer - Full.pdf Business Essentials, 9e (Ebert/Griffin) Chapter 1 The U.S. Business Environment MGT 100 Exam 1 Question: Q11. The global business environment encompasses many international forces that ...

MGT 100 Exam answer - Full.pdf Business Essentials, 9e (Ebert/Griffin) Chapter 1 The U.S. Business Environment MGT 100 Exam 1 Question: Q11. The global business environment encompasses many international forces that influence the outcomes of companies doing business in foreign countries. Which of the following scenarios would best count as evidence of globalization? Correct Answer: b. A natural disaster disables factories in Country X that produce computer chips for Company Y. Company Y reduces the number of employee shifts and raises the price of its products. Given Answer: c. Farmers in Country X have lost most of their wheat crops due to a drought. The market price for wheat triples and the government pays the farmers for a percentage of the lost wheat. Question: Q14. A city of 150,000 people has a large commercial sector bringing in businesses from the surrounding region. In 2010, there was 2.75 million square feet of commercial space available. Five years later, after a building boom, there was 5.5 million square feet of commercial space available. Which effect will most likely occur? Correct Answer: c. The price of commercial real estate will decrease, absent a dramatic increase in demand. Given Answer: e. The increase in supply will cause a corresponding increase in demand. Question: Q26. The CEO of Perry's Pizzeria, a rapidly growing restaurant chain, is committed to a high level of corporate social responsibility along with continued business success. Which action by the CEO would most enhance the company's reputation for social responsibility? Correct Answer: a. using more nutritious, but more expensive, ingredients Given Answer: e. taking steps that would cause competitors to close their doors MGT 100 Exam 2 Question: Q12. What type of departments is linked to the production and sales of specific products? Correct Answer: c. line departments Given Answer: e. entrepreneurial departments Question: Q15. Which of the following organizational systems is represented by organization chart and the formal assignment of authority? Correct Answer: b. formal organization Given Answer: c. informal organization Question: Q23. Positive reinforcement is used when a company or manager provides a reward when employee exhibit desired behaviors. Correct Answer: a. True Given Answer: b. False MGT 100 Exam 4 Question: Q10. Greg feels comfortable that no one can open and read his e-mails. What does Greg have installed in his computer? Correct Answer: c. encryption software Given Answer: d. a Trojan horse 1) The customs, values, and demographic characteristics of the society in which an organization functions are the principal elements of the political-legal environment. Answer: FALSE Explanation: These are the main considerations of the sociocultural environment. The political-legal environment reflects the relationship between business and government, usually in the form of government regulation of business. Page Ref: 5 Difficulty: Easy Objective: 1.2 Learning Outcome: Compare and contrast different economic systems Skill: Concept 2) Physical resources include the data and other information used by businesses. Answer: FALSE Explanation: Physical resources are the tangible resources that organizations use to conduct their business such as natural resources, raw materials, offices, storage and production facilities, parts and supplies, computers and peripherals, and a variety of other equipment. Page Ref: 8 Difficulty: Easy Objective: 1.3 Learning Outcome: Identify the different types of technologies used in business and describe their uses Skill: Concept 3) Economic systems differ in how factors of production are used. Answer: TRUE Explanation: Different types of economic systems manage the factors of production differently. In capitalism, for instance, they are managed by private individuals with capital resources, while in a command economy the government manages the factors of production. Page Ref: 9 Difficulty: Easy Objective: 1.3 Learning Outcome: Compare and contrast different economic systems Skill: Concept 4) The point at which the supply curve and the demand curve intersect is the market price. Answer: TRUE Explanation: When demand and supply curves are plotted on the same graph, the point at which they intersect is the point at which demand matches supply, which determines the market price. Page Ref: 12 Difficulty: Easy AACSB: Analytic skills Objective: 1.4 Learning Outcome: Discuss strategies for setting and adjusting prices Skill: Concept 5) Aggregate output refers to a company's annual production of goods or services. Answer: FALSE Explanation: Aggregate output is the total quantity of goods and services produced by an economic system during a given period. Page Ref: 17 Difficulty: Moderate Objective: 1.5 Learning Outcome: Explain how economic performance is monitored Skill: Concept 6) The United States government manages the collection and spending of its revenues through monetary policy. Answer: FALSE Explanation: The United States government manages the collection and spending of its revenues through fiscal policy. Page Ref: 23 Difficulty: Moderate Objective: 1.5 Learning Outcome: Compare and contrast different economic systems Skill: Concept 7) The pursuit of profits is how a business differs from organizations such as most universities, hospitals, and government agencies. Answer: TRUE Explanation: The pursuit of profits distinguishes a business from those organizations—such as most universities, hospitals, and government agencies—that run in much the same way but that generally don't seek profits. Page Ref: 4 Difficulty: Easy Objective: 1.1 Learning Outcome: Explain the entrepreneurship process Skill: Concept 8) The technological environment includes only electronics and telecommunications used to perform business activities. Answer: FALSE Explanation: Technology includes human knowledge, work methods, physical equipment, electronics and telecommunications, and various processing systems that are used to perform business activities. Page Ref: 6 Difficulty: Moderate AACSB: Analytic skills Objective: 1.2 Learning Outcome: Identify the different types of technologies used in business and describe their uses Skill: Concept 9) One of the four elements that are necessary for private enterprise to be carried out is reasonable prices. Answer: FALSE Explanation: The four elements that must be present in private enterprise are private property rights, freedom of choice, profits, and competition. Page Ref: 14 Difficulty: Moderate Objective: 1.4 Learning Outcome: Discuss strategies for setting and adjusting prices Skill: Concept 10) In typical modern oligopolies, the large capital investment necessary to enter the market discourages new competitors. Answer: TRUE Explanation: A major factor discouraging new competitors in current oligopolistic industries such as automobiles and large commercial aircraft is the huge capital investment that would be needed to start a new company. Page Ref: 15 Difficulty: Moderate Objective: 1.4 Learning Outcome: Compare and contrast different economic systems Skill: Concept 11) Natural monopolies exist partly because duplication of effort and resources would be wasteful in some cases. Answer: TRUE Explanation: Many electric companies, for example, are natural monopolies because they can supply all the power needed in a local area. Page Ref: 16 Difficulty: Moderate Objective: 1.4 Learning Outcome: Compare and contrast different economic systems Skill: Concept