MNGT 4800 Exam 2 Questions with Correct
Answers
Which of the following innovative ideas helped Airbnb develop a successful business in
the peer-to-peer rental space?
- Ensuring a smooth transaction between hosts and guests
- Presenting a well-designed website
Managers have ______ direct influence over external forces in the firm's general
environment than those in the firm's task environment.
less
According to the PESTEL model, which of the following are kinds of forces that exist in
the general external environment?
ecological, technological, and economic
Which factors result from the processes and actions of government bodies that influence
the decisions and behavior of firms?
political
___ pressure from groups like NGOs often results in legal changes.
political
Why are political pressures related to legal factors?
Political pressure may lead to changes in laws.
Which of the following statements about Airbnb is correct?
It handles more accommodations than the three biggest hotel chains combined.
,When managers understand the forces in the external environment, they are better able
to ___.
mitigate threats and leverage opportunities
Which of the following are employed as nonmarket strategies to influence government
bodies?
lobbying, litigation, and public relations
Through use of the PESTEL model, firms are able to do which of the following?
monitor external factors and evaluate external trends
The economic factors that affect a firm's external environment are ______.
largely macroeconomic
In the PESTEL model, political factors are those that relate to ______.
government bodies
The overall ______ is a measure of the change in the amount of goods and services
produced by a nation's economy.
economic growth rate
In the early 2000s, easy credit made real estate the investment of choice in the United
States. By the end of the decade, however, a recession had set in, impacting almost all
businesses in the country. What does this example show?
Multiple choice question.
Economic boom periods can overheat and lead to speculative bubbles.
,In a period of economic boom, unemployment is ______, and human resources become
expensive.
low
In order to influence changes in their political environment, firms pursue ___.
nonmarket strategies
The amount that savers are paid for use of their money and the amount that borrowers
pay for that use is known as ______.
an interest rate
Which of the following are examples of economic factors in the firm's general
environment?
price stability, interest rates, and growth rates
Which are reasons that price stability is hard to achieve?
- Economic growth is dynamic.
- The central bank's actions are unpredictable.
- Measurements of gross domestic product may be incorrect.
A rise in economic growth is reflected by ______.
businesses expanding operations to satisfy demand
The economic recession that began in 2008 in the United States was the result of unwise
investment in ______.
real estate
, Which term describes an increase in the overall price level?
Multiple choice question.
inflation
It might be a good idea to expand or upgrade a firm's human capital base during a
______, because unemployment is high and therefore human capital is abundant and
wages usually ______.
downturn; fall
Which is a negative effect of inflation?
It reduces purchasing power.
Consumers tend to buy homes, automobiles, and computers when interest rates are
______ because credit is inexpensive.
low
The ______ rate determines how many dollars one must pay for a unit of foreign
currency.
currency exchange
Which of the following are examples of sociocultural factors?
- growth of the Hispanic population
- increased number of health-conscious consumers
Which is the most frequent cause of inflation?
too much money chasing too few goods and services
Answers
Which of the following innovative ideas helped Airbnb develop a successful business in
the peer-to-peer rental space?
- Ensuring a smooth transaction between hosts and guests
- Presenting a well-designed website
Managers have ______ direct influence over external forces in the firm's general
environment than those in the firm's task environment.
less
According to the PESTEL model, which of the following are kinds of forces that exist in
the general external environment?
ecological, technological, and economic
Which factors result from the processes and actions of government bodies that influence
the decisions and behavior of firms?
political
___ pressure from groups like NGOs often results in legal changes.
political
Why are political pressures related to legal factors?
Political pressure may lead to changes in laws.
Which of the following statements about Airbnb is correct?
It handles more accommodations than the three biggest hotel chains combined.
,When managers understand the forces in the external environment, they are better able
to ___.
mitigate threats and leverage opportunities
Which of the following are employed as nonmarket strategies to influence government
bodies?
lobbying, litigation, and public relations
Through use of the PESTEL model, firms are able to do which of the following?
monitor external factors and evaluate external trends
The economic factors that affect a firm's external environment are ______.
largely macroeconomic
In the PESTEL model, political factors are those that relate to ______.
government bodies
The overall ______ is a measure of the change in the amount of goods and services
produced by a nation's economy.
economic growth rate
In the early 2000s, easy credit made real estate the investment of choice in the United
States. By the end of the decade, however, a recession had set in, impacting almost all
businesses in the country. What does this example show?
Multiple choice question.
Economic boom periods can overheat and lead to speculative bubbles.
,In a period of economic boom, unemployment is ______, and human resources become
expensive.
low
In order to influence changes in their political environment, firms pursue ___.
nonmarket strategies
The amount that savers are paid for use of their money and the amount that borrowers
pay for that use is known as ______.
an interest rate
Which of the following are examples of economic factors in the firm's general
environment?
price stability, interest rates, and growth rates
Which are reasons that price stability is hard to achieve?
- Economic growth is dynamic.
- The central bank's actions are unpredictable.
- Measurements of gross domestic product may be incorrect.
A rise in economic growth is reflected by ______.
businesses expanding operations to satisfy demand
The economic recession that began in 2008 in the United States was the result of unwise
investment in ______.
real estate
, Which term describes an increase in the overall price level?
Multiple choice question.
inflation
It might be a good idea to expand or upgrade a firm's human capital base during a
______, because unemployment is high and therefore human capital is abundant and
wages usually ______.
downturn; fall
Which is a negative effect of inflation?
It reduces purchasing power.
Consumers tend to buy homes, automobiles, and computers when interest rates are
______ because credit is inexpensive.
low
The ______ rate determines how many dollars one must pay for a unit of foreign
currency.
currency exchange
Which of the following are examples of sociocultural factors?
- growth of the Hispanic population
- increased number of health-conscious consumers
Which is the most frequent cause of inflation?
too much money chasing too few goods and services
