MGT103 - Chapter 2 UPDATED Questions
and CORRECT Answers
1. Which of the following is a part of an organization's external environment?
a. Board of directors
b. Physical work environment
c. Inflation
d. Organization's culture
e. Employees - CORRECT ANSWER -c
2. In Asia, consumers have historically had an aversion to debt. However, in recent years credit
card use has grown significantly, supported by aggressive marketing to promote growth in the
region. This example comprises the _____dimension of an organization's general environment.
a. economic
b. technological
c. sociocultural
d. political-legal
e. task - CORRECT ANSWER -a
3. A business manufactures top-of-the-line cabinets. The _____ dimension of its general
environment includes computer-assisted design software that helps to convert wood and people's
idea into lovely, functional cabinets.
a. legal
b. sociocultural
c. technological
d. political
e. economic - CORRECT ANSWER -c
,4. Alex, one of the proprietors of Atlas Corp. is worried. The stock market was not doing well,
unemployment was 10 percent, inflation was on the rise again, and government debt was still
increasing. These concerns of Alex are related to the _____ dimension of the general
environment of Atlas Corp.
a. legal
b. sociocultural
c. technological
d. political
e. economic - CORRECT ANSWER -e
5. The set of broad dimensions and forces in an organization's surroundings that determines its
overall context is called the _____ environment.
a. task
b. general
c. physical work
d. regulatory
e. ethical - CORRECT ANSWER -b
6. Which of the following is a concern of the technological dimension of an organization's
general environment?
a. Organization's policies and practices
b. Inflation, interest rates, and unemployment
c. Tools, methods, and technology
d. Government regulations
e. Offices, production facilities, and cafeteria - CORRECT ANSWER -c
7. A company would begin to do business in another country only if the trade relationships with
that country are relatively well defined and stable. In the context of general environment, which
of the following does this point of view reflect?
a. Task
, b. Economic
c. Technological
d. Political-legal
e. Competitive - CORRECT ANSWER -d
8. The _____ dimension of the general environment consists of government regulation of
business and the relationship between business and government.
a. technological
b. task
c. political-legal
d. competitive
e. socio-economic - CORRECT ANSWER -c
9. Competitors, customers, suppliers, strategic partners, and regulators make up the _____
environment of an organization.
a. technological
b. general
c. economic
d. political-legal
e. task - CORRECT ANSWER -e
10. Eastlawn Pharmacy is a local drugstore that has been serving the neighborhood for over 25
years. Recently, a national pharmacy chain opened one of its stores two blocks from Eastlawn.
Eastlawn is experiencing a change in its
a. task environment.
b. internal environment.
c. physical work environment.
d. government regulations.
e. organizational culture. - CORRECT ANSWER -a
and CORRECT Answers
1. Which of the following is a part of an organization's external environment?
a. Board of directors
b. Physical work environment
c. Inflation
d. Organization's culture
e. Employees - CORRECT ANSWER -c
2. In Asia, consumers have historically had an aversion to debt. However, in recent years credit
card use has grown significantly, supported by aggressive marketing to promote growth in the
region. This example comprises the _____dimension of an organization's general environment.
a. economic
b. technological
c. sociocultural
d. political-legal
e. task - CORRECT ANSWER -a
3. A business manufactures top-of-the-line cabinets. The _____ dimension of its general
environment includes computer-assisted design software that helps to convert wood and people's
idea into lovely, functional cabinets.
a. legal
b. sociocultural
c. technological
d. political
e. economic - CORRECT ANSWER -c
,4. Alex, one of the proprietors of Atlas Corp. is worried. The stock market was not doing well,
unemployment was 10 percent, inflation was on the rise again, and government debt was still
increasing. These concerns of Alex are related to the _____ dimension of the general
environment of Atlas Corp.
a. legal
b. sociocultural
c. technological
d. political
e. economic - CORRECT ANSWER -e
5. The set of broad dimensions and forces in an organization's surroundings that determines its
overall context is called the _____ environment.
a. task
b. general
c. physical work
d. regulatory
e. ethical - CORRECT ANSWER -b
6. Which of the following is a concern of the technological dimension of an organization's
general environment?
a. Organization's policies and practices
b. Inflation, interest rates, and unemployment
c. Tools, methods, and technology
d. Government regulations
e. Offices, production facilities, and cafeteria - CORRECT ANSWER -c
7. A company would begin to do business in another country only if the trade relationships with
that country are relatively well defined and stable. In the context of general environment, which
of the following does this point of view reflect?
a. Task
, b. Economic
c. Technological
d. Political-legal
e. Competitive - CORRECT ANSWER -d
8. The _____ dimension of the general environment consists of government regulation of
business and the relationship between business and government.
a. technological
b. task
c. political-legal
d. competitive
e. socio-economic - CORRECT ANSWER -c
9. Competitors, customers, suppliers, strategic partners, and regulators make up the _____
environment of an organization.
a. technological
b. general
c. economic
d. political-legal
e. task - CORRECT ANSWER -e
10. Eastlawn Pharmacy is a local drugstore that has been serving the neighborhood for over 25
years. Recently, a national pharmacy chain opened one of its stores two blocks from Eastlawn.
Eastlawn is experiencing a change in its
a. task environment.
b. internal environment.
c. physical work environment.
d. government regulations.
e. organizational culture. - CORRECT ANSWER -a
