Business Environment 100 McQs and Answers

1. The level of government regulation of business has always been low. FALSE
2. Regulating the way business operates is only one of several roles the government has in its relationship with business. TRUE
3. Our goals for business focus solely on the production and distribution of goods and services. FALSE
4. The relationship between government and business has become adversarial but is improving. FALSE
5. The relationship between government and business is limited to government’s influence over business. FALSE
6. Proponents of privatization want government to be a producer of service. FALSE
7. Advocates of privatization base their positions on the need for efficiency and overall performance. TRUE
8. The monetary policy set the Federal Reserve System is completely independent of the influence of other branches of government. FALSE
9. Government regulation generally arises out of some type of market failure. TRUE
10. The new regulation focus on business’s impacts on other businesses. FALSE
11. The government uses politicking, voting and forming special- interest groups of influencing each other.
12. The question of whether current public functions should be performed by the government or private sector is addressed by PRIVATIZATION.
13. A strong industrial policy helps firm compete in a fast moving global economy.
14. There has been a strong reaction in the US to any form of industrial policy because it conflicts with the widely held view of government’s role in the economy.
15. Government influences business through all the following methods except requiring equal employment opportunities is granted to job applicants. (being a major employer; being a standard setter; providing transfer payments)
16. The primary reason for government regulation of business is MARKET FAILURE.
17. A market in which the economies of scale are so great that the largest firm has the lowest costs and is able to drive out competitor is called NATURAL MONOPOLY.
18. Government intervention in monopolistic industries is often brought about by ANTICOMPETITIVE PRACTICES.
19. COMPUTER SOFTWARE industry has not been affected by deregulation.
20. “U.S adults said government should do more” is not a concern expressed by executives about government involvement in business.
21. As the economy struggles to get out of the recession, consumers have become more cautious and selective about spending. TRUE
22. The consumer movement is generally traced back to a single cause or event, although the specific incident varies from author to author. (FALSE)
23. The effects of advertising have had a net negative effect on society. (FALSE)
24. Most consumers today understand that advertising attempts to persuade them. TRUE
25. Not telling the whole truth in advertisements is a widely used practice called concealing facts. TRUE
26. Targets of comparative advertising have no recourse if they think their competition has gone too far. (FALSE)
27. Sexual references in advertising create more of a backlash today than they did two or three decades ago. (FALSE)
28. Advertising hard liquor on television used to be illegal in the US. (FALSE)
29. Tobacco companies no longer advertise tobacco products in a way to appeal to children. (FALSE)
30. A company’s desire to portray its product in the most flattering light can lead to misinformation. TRUE
31. Ad creep has been expanding. TRUE
32. A full warranty must contain certain features, including repair within a reasonable period of time at no charge. TRUE
33. A limited warranty means that the company guarantees all parts of the product and all types of defects, but only for a limited period of time. (FALSE)
34. Self- regulation in advertising relies on the advertiser itself to control its advertising conduct and performance. TRUE
35. The consumer movement is still absolutely essential for achieving a fair and just marketplace for all consumers. TRUE
36. Obesity researchers say they have data proving that the most sugary, calorie- laden breakfast cereals are marked to children most aggressively. TRUE
37. Consumers are readily pursuing green products (FALSE).
38. The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers is CUSTOMER RELATIONSHIP MANAGEMENT.
39. To rebuild consumer confidence in brands, many companies have begun the great trust offensive.
40. “Consumers can force companies to change their behaviors through boycotts” is not a lesson from the consumer movement.
41. In most businesses, the manufacturing department is the only source of environmental pollution. (FALSE)
42. Externalities are side effects or by- products of actions that are not intended, but unavoidably impact others.
43. The main reason for global warming is overpopulation. (FALSE)
44. Manufacturing firms have been major sources of water pollution.
45. Deforestation only occurs in less developed countries (LDCs). (FALSE)
46. In addition to being a leading cause of pollution when used, fossil fuels are also often associated with armed conflict. TRUE
47. The long term effects of indoor air pollution include irritation of the eyes. (FALSE)
48. The Global Compact brings together thousands of companies to support universal environmental and social principles. TRUE
49. The triple bottom line is a system of reporting that cover economic, social, and environmental performance. TRUE
50. Hazardous wastes can be generated by manufacturing processes or they can simply result from discarded commercial products, like cleaning fluid or pesticides. TRUE
51. All living and nonliving substances present in a particular place is an ECOSYSTEM.
52. Climate change is also known as GLOBAL WARMING
53. Energy inefficiency is the wasting of precious nonrenewable sources of energy
54. The inability of humans and nature to restore environmental conditions to a previous state within a relevant time frame is IRREVERSIBILITY
55. Which of the following is not a problem central to the toxic substances issue POPULATION INCREASE
56. The prevention of solar heat absorbed by our atmosphere from returning to space is known as THE GREENHOUSE EFFECT
57. A major cause of the greenhouse effect is DEFORESTATION
58. Problems made worse by deforestation include ALL OF THESE
59. Endangered species are threatened with extinction due to all of the following reasons except DROUGHT
60. Precipitation containing harmful amount of nitric and sulfuric acids is called ACID RAIN
61. The business community now encompasses the entire world TRUE
62. Corporate philanthropy involves primarily the giving of financial resources, and managerial time and talent. TRUE
63. Monitoring the company’s community involvement projects entails review and control TRUE
64. Some observers worry that in times of crisis, corporate philanthropy becomes a zero sum game in that contributions that go to alleviate the crisis then do not go to causes that need them TRUE
65. It is usually easy to assess the true motives behind businesses’ giving FALSE
66. A company may create a positive impact in the community by giving time and talents of its managers. TRUE
67. Responsibility is considered a standard of excellence in corporate community involvement FALSE
68. The categories of recipients to whom corporations give remain stable over time TRUE
69. Cause-related marketing is one of the clearest examples of corporate philanthropy FALSE
70. In practice, it is relatively simple to determine the motives behind business giving FALSE
71. Community involvement is most commonly manifested through donating the time and talents of its employees
72. Educational recipients of giving include each of the following except STUDENT MATCHING GIFTS
73. Which of the following is not a way in which companies can benefit from volunteer programs developing strong ties with local government officials
74. The second step in managing in the performance of a community action program is knowing the company’s resources
75. Which of the following is not a reason commonly given for community involvement a way to help employees build their resumes
76. Steps in developing a community action program include all of the following except building bridges to the community
77. Selection of projects for a community action program grows out of matching community needs with a company resources
78. Guidelines for developing a community involvement strategy include all of the following steps except decisions about which projects to undertake should take place at the highest levels of management
79. Standards of excellence in corporate community involvement include all of the following except EFFICIENCY
80. Which of the following is not a category of recipient to whom corporations often give money ATHLETIC TEAMS

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