Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
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1.
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Kathryn’s high-tech firm deals with many external factors, among them government
regulators, suppliers, and trade and industry groups. This is an example of
__________. a. | environmental
complexity | b. | environmental
change | c. | environmental
munificence | d. | punctuated
equilibrium theory | | |
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2.
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John’s firm faces a situation in which highly skilled technical workers are in
short supply. Consequently, John has increased wages and increased his recruitment activities.
John’s labour shortage is an example of __________. a. | environmental change | b. | environmental complexity | c. | environmental munificence | d. | punctuated equilibrium theory | | |
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3.
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In
terms of the issues addressed in the text, it is most correct to say that as environmental change
__________, and as environmental complexity __________, and as environmental munificence
__________, environmental uncertainty __________. a. | decreases, decreases, decreases,
increases | b. | increases,
increases, increases, decreases | c. | increases, decreases, decreases,
decreases | d. | increases,
increases, decreases, increases | | |
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4.
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Business indices generally show the level of confidence that managers have in future
business growth. These indices are an element in the firm’s __________
environment. a. | sociocultural | b. | economic | c. | competitor | d. | customer | | |
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5.
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In
Canada, people’s attitude toward drinking and driving has changed dramatically. This
increasingly negative attitude has affected many firms, particularly those in the wine, beer, and
liquor industries. This change in attitude is an example of the __________ component of the general
environment. a. | economic | b. | technological | c. | political/legal | d. | sociocultural | | |
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6.
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Valda’s firm produces component parts for a major computer manufacturer. This
manufacturer is Valda’s major customer, and it demands that certain conditions regarding quality
and delivery be met. Valda feels she has to comply. This is a good example of
__________. a. | supplier
dependence | b. | buyer
dependence | c. | relationship
behaviour | d. | industry
regulation | | |
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7.
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An
advocacy group urges citizens not to buy a certain firm’s products because of alleged abuse of
workers in its plants. This is an example of __________. a. | public communications | b. | media advocacy | c. | a product boycott | d. | industry regulation | | |
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8.
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Jill
feels that her firm should present a strong, professional, but conservative image to its clients.
Consequently, she insists that her employees dress in formal, conservative business attire. This is
an example of __________ in the culture of Jill’s firm. a. | organizational stories | b. | visible artifacts | c. | organizational heroes | d. | organizational ceremonies | | |
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9.
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Ned
runs a dynamic business-services firm and tries to promote sharing and participation among its
members. Each week he has an informal meeting over coffee with junior members of the organization to
hear about what they are doing and thinking. These meetings are an example of an organizational
___________ . a. | ritual | b. | vision | c. | story | d. | hero | | |
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10.
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In a
particular advertising firm, employees who had generally accepted the values and expected behaviours
are now expected also to work hard at reducing waste, a relatively new expectation for people in this
firm. This newly expected behaviour is an example of behavioural __________. a. | symbols | b. | substitution | c. | neutralizing | d. | addition | | |
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True/False
Indicate whether the sentence or statement is true or
false.
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11.
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A large
industrial firm went through a period of relative stability, entered a stage of increasing change and
instability, and then reentered a period of stability. This history illustrates the punctuated
equilibrium theory.
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12.
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John is
a customer of Fred’s auto store. It is correct to say that John is part of Fred’s
firm’s general environment.
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13.
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Robert,
the owner of a small chain of retail stores, has worked to establish mutually beneficial long-term
relationships with his suppliers. This is an example of opportunistic behaviour.
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14.
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MADD—Mothers Against Drunk Driving—is an organization that has influenced a
number of industries in the past few years. MADD is an example of an advocacy group.
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15.
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Karen
has developed a strong sense of the environmental factors that affect her business and how she might
best respond to them, given her firm’s strengths and weaknesses. This is an example of a
cognitive map.
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