MBA 705 LSUS Mclaughlin Practice Guide Exam 2 2026

MBA 705 LSUS Mclaughlin Practice Guide Exam 2 2026 Business-to-Business (B2B): - -The segment of electronic commerce whereby businesses utilize the Internet to solicit transactions from each other. Business-to-Consumer (B2C): - -The segment of electronic commerce whereby businesses utilize the Internet to solicit transactions from consumers, also known as e tailing. Business-to-Government (B2G): - -The segment of electronic commerce whereby businesses utilize the Internet to solicit transactions from government entities. Clicks and Bricks: - -The simultaneous application of both electronic ("clicks") and traditional ("bricks") forms of commerce. Commoditization: - -A process whereby firms are having a more difficult time distinguishing their products and services from those of their rivals. Consumer-to-Business (C2B): - -The segment of electronic commerce whereby consumers utilize the Internet to solicit transactions from businesses. Consumer-to-Consumer (C2C): - -The segment of e-commerce whereby consumers utilize the Internet to solicit transactions from each other. Culture: - -A society's generally accepted values, traditions, and patterns of behavior. E-tailing: - -Another term for B2C. Economies of Scale: - -The decline in unit costs of a product or service that occurs as the absolute volume of production increases. Environmental Scanning: - -The systematic collection and analysis of information about relevant macroenvironmental trends. Information Asymmetry: - -When one party has information that another does not. Information Symmetry: - -When all parties to a transaction share the same information concerning that transaction. Mass Customization: - -The ability to individualize product and service offerings to meet specific buyer needs MBA 705 MBA 705 Mobile Commerce (M-Commerce): - -Transactions conducted in an entirely wireless environment, such as using a smartphone to both purchase and download an airline ticket or piece of music. Outsourcing: - -Contracting out a firm's noncore, non-revenue-producing activities to other organizations primarily to reduce costs. Partnerships: - -Contractual relationships with enterprises outside the organization. Self-Reference Criterion: - -The unconscious reference to one's own cultural values as a standard of judgment. Societal Values: - -Concepts and beliefs that members of a society tend to hold in high esteem. True - -T/F In many respects, social forces are the drivers of consumer markets. True - -T/F The expansion of a religion in an emerging country is an example of a social force. False (this is self reference criterion) - -T/F The unconscious reference to one's own cultural values as a standard of judgment is known as cultural bias. False - -T/F Commoditization refers to the ability to individualize product and service offerings to meet specific buyer needs. True - -T/F Reading business publications can serve as a means of environmental scanning. True - -T/F Environmental scanning can be difficult for large firms because of the availability of too much information. C. Social forces include such factors as societal values, trends, traditions, and religious practices. - -Which of the following is not an example of a social force? A. trends B. values C. industrial change D. all of the above B. A recession tends to help firms in most industries, but it does not benefit all industries. - -When a recession occurs __________. A. all industries benefit B. some industries benefit C. no industries benefit D. none of the above MBA 705 MBA 705 D. Technological forces vary across industries and can eliminate existing industries and create new ones. - -Technological forces often __________. A. decimate an entire industry B. spawn new industries C. vary substantially among industries D. all of the above D. The Internet promotes information symmetry, can be used as a distribution channel in some instances, and has the potential for cost shifting and cost reductions. - -How has the Internet changed strategic management? A. It promotes information symmetry. B. It can often be used as a distribution channel. C. It often reduces costs. D. all of the above B2C Commerce - -E-tailing is synonymous with __________. Environmental Scanning - -The systematic collection and analysis of information about relevant macroenvironmental trends is known as __________. A. strategic planning B. strategic management C. environmental scanning D. none of the above. Adverse Selection: - -The inability of shareholders to identify the precise competencies and personal attributes of top managers when they are hired. Agency Problem: - -A situation in which a firms' top managers (i.e., the "agents" of the firms' owners) do not act in the best interests of the shareholders. Diversification: - -The process of acquiring companies to increase a firm's size. Employee Stock Ownership Plans (ESOPs): - -Formal programs that transfer shares of stock to a company's employees. Ethical Relativism: - -The idea that ethics is based on accepted norms in a culture, meaning that what is ethical in one nation or culture might be unethical in another. Goals: - -Desired general ends toward which efforts are directed. Integrative Social Contracts View of Ethics: - -Perspective suggesting that decisions should be based on existing norms of behavior, including cultural, community, or industry factors. MBA 705 MBA 705 Justice View of Ethics: - -Perspective suggesting that all decisions will be made in accordance with established rules or guidelines. Leveraged Buyout (LBO): - -A takeover in which the acquiring party borrows funds to purchase a firm. Managerial Ethics: - -An individual's responsibility to make business decisions that are legal, honest, moral, and fair. Moral Hazard: - -When parties in an arrangement do not share equally in the risks and benefits. Objectives: - -Specific, verifiable, and often quantified versions of a goal. Objectivism: - -A philosophical perspective, espoused by Ayn Rand, that emphasizes an objective reality understood by logic and reason and focuses on individual freedom and property rights. Offshoring: - -Relocating some or all of a firm's manufacturing or other business processes to another country typically to reduce costs. Religious View of Ethics: - -Perspective that evaluates organizational decisions on the basis of personal or religious convictions. Rights View of Ethics: - -Perspective that evaluates organizational decisions on the extent to which they protect individual rights. Self-Interest View of Ethics: - -Perspective suggesting the benefits of the decision maker should be the primary consideration when weighing a decision. Social Responsibility: - -The expectation that business firms should serve both society and the financial interests of shareholders. Stakeholders: - -individuals or groups who are affected by, or can influence an organization's operations. Sustainable Strategic Management (SSM): - -The strategies and related processes that promote superior performance from both market and environmental perspectives. Takeover: - -The purchase of a controlling quantity of shares in a firm by an individual, a group of investors, or another organization. Takeovers may be friendly or unfriendly. Triple Bottom Line: - -The notion that firms must maintain and improve social and ecological performance in addition to economic performance. MBA 705 MBA 705 Utilitarian View of Ethics: - -Perspective suggesting that anticipated outcomes and consequences should be the only considerations when evaluating an ethical dilemma. False. Objectives are specific and often quantified versions of goals. - -T/F Goals are specific and often quantified versions of objectives. False. Profitability is only one stakeholder goal. - -T/F If a firm is able to consistently earn above-average profits, it is effectively balancing the goals of its stakeholders. False. The agency problem refers to a situation in which a firm's managers (i.e., the owners' agents) fail to act in the best interests of the shareholders. - -T/F The agency problem refers to the balancing act a firm must exhibit when attempting to satisfy the myriad of governmental agencies. False. Ethics is an individual phenomenon; managers and other employees can be ethical or unethical. - -T/F Most organizations can be classified as either ethical or unethical. False. The integrative social contracts view of ethics suggests that decisions should be based on existing norms of behavior, including cultural, community, or industry factors. - -T/F The integrative social contracts view of ethics suggests that decisions should be based on religious convictions. True - -T/F Offshoring refers to the relocation of some or all of a firm's manufacturing or other business activities to another country, usually to reduce costs. D. The reason for the firms existence is known as the MISSION - -The reason for the firm's existence is known as __________. A. the vision, B. organizational goals, C. organizational objectives, D. none of the above D. Stakeholders include any groups that have a "stake" in the success of the organization. - -Which of the following is not an example of a stakeholder? A. customers. B. suppliers, C. employees, D. none of the above C. - -An individual's responsibility to make business decisions that are legal, honest, moral, and fair is known as __________. A. social responsibility, B. the social imperative, C. managerial ethics, D. all of the above MBA 705 MBA 705 D. - -Leveraged buyouts can __________. A.strap the company with a large amount of debt, B. serve as a system of checks and balances, C. lead to the sale of company assets, D. all of the above B. - -The ethical perspective that suggests that organizational decisions should be made in accordance with established rules or guidelines is known as __________. A. the self-interest view, B. the justice view, C. the rights view, D. the integrative social contracts view D. (this is SSM) - -The assessment of strategies and related processes that promote superior performance from both market and environmental perspectives is known as _________. A. CSR, B. managerial ethics, C. management decision-making effectiveness, D. none of the above Acquisition: - -A form of a merger whereby one firm purchases another, often with a combination of cash and stock. Backward Integration: - -A firm's acquisition of its suppliers. BCG Growth-Share Matrix: - -A corporate portfolio framework developed by the Boston Consulting Group that categorizes a firm's business units by the market share that they hold and the growth rate of their respective markets. Conglomerate (Unrelated) Diversification: - -A form of diversification in which a firm acquires a business to reduce cyclical fluctuations in cash flows or revenues. Core Competencies: - -The firm's key capabilities and collective learning skills that are fundamental to its strategy, performance, and long-term profitability. Corporate Profile: - -Identification of the industry or industries in which a firm operates. Corporate-Level Strategy: - -The strategy that top management formulates for the overall company. Divestment: - -A corporate-level retrenchment strategy in which a firm sells one or more of its business units. MBA 705 MBA 705 External Growth: - -A corporate-level growth strategy whereby a firm acquires other companies. Forward Integration: - -A firm's acquisition of one or more of its buyers. Growth Strategy: - -A corporate-level strategy designed to increase revenues, and ultimately profits and/or market share. Horizontal Integration: - -A form of acquisition in which a firm expands by acquiring other companies in its same line of business. Horizontal Related Diversification: - -A form of diversification in which a firm acquires a business outside its present scope of operation but with similar or related core competencies. Internal Growth: - -A corporate-level growth strategy in which a firm expands by internally increasing its size and sales rather than by acquiring other companies. International Franchising: - -A form of licensing in which a local franchisee pays a franchiser in another country for the right to use the franchiser's brand names, promotions, materials, and procedures. International Licensing: - -An arrangement whereby a foreign licensee purchases the rights to produce a company's products and/or use its technology in the licensee's country for a negotiated fee structure. Liquidation: - -A corporate-level retrenchment strategy in which a firm terminates one or more of its business units by the sale of their assets. Merger: - -A corporate-level growth strategy in which a firm combines with another firm through an exchange of stock. Retrenchment Strategy: - -A corporate-level strategy designed to reduce the size of the firm. Stability Strategy: - -A corporate-level strategy intended to maintain a firm's present size and current lines of business. Strategic Alliances: - -A corporate-level growth strategy in which two or more firms agree to share the costs, risks, and benefits associated with pursuing new business opportunities. Strategic alliances are often referred to as partnerships. Synergy: - -When the combination of two firms results in higher efficiency and effectiveness than would otherwise be achieved by the two firms separately