PRINCIPLES OF MANAGEMENT FINAL
EXAM QUESTIONS & VERIFIED
ANSWERS RATED 100% CORRECT
NEWEST VERSION
External Environments - Correct Answer ✔✔ All events outside a company that have
the potential to influence or affect it
Environmental Change - Correct Answer ✔✔ The rate at which a company's general
and specific environments change
Stable Environment - Correct Answer ✔✔ An environment in which the rate of change is
slow
Dynamic Environment - Correct Answer ✔✔ An environment in which the rate of
change is slow
Punctuated Equilibrium Theory - Correct Answer ✔✔ The theory that companies go
through long periods of stability, followed by short periods of dynamic, fundamental
change, and finishing with a return to stability
Environmental Complexity - Correct Answer ✔✔ The number and the intensity of
external factors in the environment that affects organizations
Simple Environment - Correct Answer ✔✔ An environment with few environmental
factors
Complex Environment - Correct Answer ✔✔ An environment with many environmental
factors
Resource scarcity - Correct Answer ✔✔ The abundance or shortage of critical
organizational resources in an organization's external environment
Uncertainty - Correct Answer ✔✔ Extent to which managers can understand or predict
which environmental changes and trends will affect their businesses
General Environment - Correct Answer ✔✔ The economic, technological, sociocultural,
and political trends that indirectly affect all organizations
,Specific Environment - Correct Answer ✔✔ The customers, competitors, suppliers,
industry regulations, and advocacy groups that are unique to an industry and directly
affect how a company does business
Business Confidence Indices - Correct Answer ✔✔ Indices that show managers' level of
confidence about future business growth
Technology - Correct Answer ✔✔ The knowledge, tools, and techniques used to
transform input into output
Competitors - Correct Answer ✔✔ Companies in the same industry that sell similar
products or services to customers
Competitive Analysis - Correct Answer ✔✔ A process for monitoring the competition
that involves identifying competition, anticipating their moves, and determining their
strengths and weaknesses
Suppliers - Correct Answer ✔✔ Companies that provide material, human, financial, and
informational resources to other companies
Supplier Dependence - Correct Answer ✔✔ The degree to which a company relies on a
supplier because of the importance of the supplier;s product to the company and the
difficulty of finding other sources of that product
Buyer Dependence - Correct Answer ✔✔ The degree to which a supplier relies on a
buyer because of the importance of that buyer to the supplier and the difficulty of finding
other buyers for it's products
Opportunistic Behavior - Correct Answer ✔✔ A transaction in which one party in the
relationship benefits at the expense of the other
Relationship Behavior - Correct Answer ✔✔ The establishment of mutually beneficial,
long-term exchanges between buyers and suppliers
Industry Regulation - Correct Answer ✔✔ Regulations and rules that govern the
business practices and procedures of specific industries, businesses, and professions
Advocacy Groups - Correct Answer ✔✔ Concerned citizens who band together to try to
influence the business practices of specific industries, businesses and professions
Public Communications - Correct Answer ✔✔ An advocacy group tactic that relies on
voluntary participation by the news media and the advertising industry to get the
advocacy group's message out
Media Advocacy - Correct Answer ✔✔ An advocacy group tactic that involves framing
issues as public issues
, Product Boycott - Correct Answer ✔✔ An advocacy group tactic that involves protesting
a company's actions by persuading consumers not to purchase it's product or service
Environmental Scanning - Correct Answer ✔✔ Searching the environment for important
events or issues that might affect an organization
Internal Environment - Correct Answer ✔✔ The events and trends inside an
organization that affect management, employees, and organizational culture
Organizational Culture - Correct Answer ✔✔ The values, beliefs, and attitudes shared
by organizational members
Organizational Stories - Correct Answer ✔✔ Stories told by organizational members to
make sense of organizational events and changes and to emphasize culturally
consistent assumptions, decisions, and actions
Organizational Heroes - Correct Answer ✔✔ People celebrated for their qualities and
achievements within an organization
Company Vision - Correct Answer ✔✔ A company's purpose or reason for existing
Consistent Organizational Culture - Correct Answer ✔✔ A company culture in which the
company actively defines and teaches organizational values, beliefs, and attitudes
Behavioral Addition - Correct Answer ✔✔ The process of having managers and
employees perform new behaviors that are central to and symbolic of the new
organizational culture that a company wants to create
Behavioral Substitution - Correct Answer ✔✔ The process of having managers and
employees perform new behaviors central to the "new" organizational culture in place of
behaviors that were central to the "old" organizational culture
Visible Artifacts - Correct Answer ✔✔ Visible signs of an organization's culture, such as
the office design and layout, company dress code, and company benefits and perks,
like stock options, personal parking spaces, or the private company dinning room
Ethics - Correct Answer ✔✔ The set of moral principles or values that defines right and
wrong for a person or group
Ethical Behavior - Correct Answer ✔✔ Behavior that conforms to a society's accepted
principles of right and wrong
Ethical Intensity - Correct Answer ✔✔ The degree of concern people have about an
ethical issue
EXAM QUESTIONS & VERIFIED
ANSWERS RATED 100% CORRECT
NEWEST VERSION
External Environments - Correct Answer ✔✔ All events outside a company that have
the potential to influence or affect it
Environmental Change - Correct Answer ✔✔ The rate at which a company's general
and specific environments change
Stable Environment - Correct Answer ✔✔ An environment in which the rate of change is
slow
Dynamic Environment - Correct Answer ✔✔ An environment in which the rate of
change is slow
Punctuated Equilibrium Theory - Correct Answer ✔✔ The theory that companies go
through long periods of stability, followed by short periods of dynamic, fundamental
change, and finishing with a return to stability
Environmental Complexity - Correct Answer ✔✔ The number and the intensity of
external factors in the environment that affects organizations
Simple Environment - Correct Answer ✔✔ An environment with few environmental
factors
Complex Environment - Correct Answer ✔✔ An environment with many environmental
factors
Resource scarcity - Correct Answer ✔✔ The abundance or shortage of critical
organizational resources in an organization's external environment
Uncertainty - Correct Answer ✔✔ Extent to which managers can understand or predict
which environmental changes and trends will affect their businesses
General Environment - Correct Answer ✔✔ The economic, technological, sociocultural,
and political trends that indirectly affect all organizations
,Specific Environment - Correct Answer ✔✔ The customers, competitors, suppliers,
industry regulations, and advocacy groups that are unique to an industry and directly
affect how a company does business
Business Confidence Indices - Correct Answer ✔✔ Indices that show managers' level of
confidence about future business growth
Technology - Correct Answer ✔✔ The knowledge, tools, and techniques used to
transform input into output
Competitors - Correct Answer ✔✔ Companies in the same industry that sell similar
products or services to customers
Competitive Analysis - Correct Answer ✔✔ A process for monitoring the competition
that involves identifying competition, anticipating their moves, and determining their
strengths and weaknesses
Suppliers - Correct Answer ✔✔ Companies that provide material, human, financial, and
informational resources to other companies
Supplier Dependence - Correct Answer ✔✔ The degree to which a company relies on a
supplier because of the importance of the supplier;s product to the company and the
difficulty of finding other sources of that product
Buyer Dependence - Correct Answer ✔✔ The degree to which a supplier relies on a
buyer because of the importance of that buyer to the supplier and the difficulty of finding
other buyers for it's products
Opportunistic Behavior - Correct Answer ✔✔ A transaction in which one party in the
relationship benefits at the expense of the other
Relationship Behavior - Correct Answer ✔✔ The establishment of mutually beneficial,
long-term exchanges between buyers and suppliers
Industry Regulation - Correct Answer ✔✔ Regulations and rules that govern the
business practices and procedures of specific industries, businesses, and professions
Advocacy Groups - Correct Answer ✔✔ Concerned citizens who band together to try to
influence the business practices of specific industries, businesses and professions
Public Communications - Correct Answer ✔✔ An advocacy group tactic that relies on
voluntary participation by the news media and the advertising industry to get the
advocacy group's message out
Media Advocacy - Correct Answer ✔✔ An advocacy group tactic that involves framing
issues as public issues
, Product Boycott - Correct Answer ✔✔ An advocacy group tactic that involves protesting
a company's actions by persuading consumers not to purchase it's product or service
Environmental Scanning - Correct Answer ✔✔ Searching the environment for important
events or issues that might affect an organization
Internal Environment - Correct Answer ✔✔ The events and trends inside an
organization that affect management, employees, and organizational culture
Organizational Culture - Correct Answer ✔✔ The values, beliefs, and attitudes shared
by organizational members
Organizational Stories - Correct Answer ✔✔ Stories told by organizational members to
make sense of organizational events and changes and to emphasize culturally
consistent assumptions, decisions, and actions
Organizational Heroes - Correct Answer ✔✔ People celebrated for their qualities and
achievements within an organization
Company Vision - Correct Answer ✔✔ A company's purpose or reason for existing
Consistent Organizational Culture - Correct Answer ✔✔ A company culture in which the
company actively defines and teaches organizational values, beliefs, and attitudes
Behavioral Addition - Correct Answer ✔✔ The process of having managers and
employees perform new behaviors that are central to and symbolic of the new
organizational culture that a company wants to create
Behavioral Substitution - Correct Answer ✔✔ The process of having managers and
employees perform new behaviors central to the "new" organizational culture in place of
behaviors that were central to the "old" organizational culture
Visible Artifacts - Correct Answer ✔✔ Visible signs of an organization's culture, such as
the office design and layout, company dress code, and company benefits and perks,
like stock options, personal parking spaces, or the private company dinning room
Ethics - Correct Answer ✔✔ The set of moral principles or values that defines right and
wrong for a person or group
Ethical Behavior - Correct Answer ✔✔ Behavior that conforms to a society's accepted
principles of right and wrong
Ethical Intensity - Correct Answer ✔✔ The degree of concern people have about an
ethical issue
