Test Bank For Effective Management 7th Edition BY Chuck Williams

Test Bank For Effective Management 7th Edition BY Chuck Williams
EDITION


1. The two kinds of external organizational environments are the general environment and the specific environment.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 2-2
NATIONAL STANDARDS: United States - Level V Synthesis
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence

2. External environments are the forces and events outside a company that have the potential to influence or affect it.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 2-1
NATIONAL STANDARDS: United States - Level III Application
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence

3. According to its rate of environmental change, an organization's environment can be either stable or dynamic, but not
both.
a. True
b. False
ANSWER: False

RATIONALE: According to punctuated equilibrium theory, companies often experience both stable and

dynamic external environments.

POINTS: 1

DIFFICULTY: Difficult

REFERENCES: 2-1a
NATIONAL STANDARDS: United States - Level II Comprehension
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence | Strategy

4. Environmental complexity refers to the degree of change in the external factors that affect organizations. a. True
b. False
ANSWER: False

, Test Bank For Effective Management 7th Edition BY Chuck Williams
RATIONALE: Environmental complexity is the number of external factors in the environment that affect

organizations. Environmental change refers to the rate at which a company's general and

specific environments change.

POINTS: 1

DIFFICULTY: Moderate

REFERENCES: 2-1b

NATIONAL STANDARDS: United States - Level I Knowledge
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence | Strategy

5. Resource scarcity is the degree to which an organization's external environment has an abundance or lack of critical
organizational resources.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 2-1c
NATIONAL STANDARDS: United States - Level I Knowledge
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence | Strategy

6. Under conditions in which the rate of both environmental change and complexity go up while environmental
resources become scarce, environmental uncertainty can be expected to increase.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 2-1d
NATIONAL STANDARDS: United States - Level I Knowledge
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence | Strategy

7. The general segment of a company’s external environment consists of the economy and the technological,
sociocultural, and political/legal trends that indirectly affect all organizations.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 2-2

, Test Bank For Effective Management 7th Edition BY Chuck Williams
NATIONAL STANDARDS: United States - Level I
Knowledge
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence

8. The general segment of a company’s external environment is unique to each firm's industry and directly affects the
way it conducts day-to-day business.
a. True
b. False
ANSWER: False

RATIONALE: This is the definition of the specific environment. The general environment consists of the

economy and the technological, socio-cultural, and political/legal trends that indirectly affect

all organizations.

POINTS: 1

DIFFICULTY: Easy

REFERENCES: 2-2
2-3
NATIONAL STANDARDS: United States - Level I Knowledge
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence

9. Changes in any sector of the general environment eventually affect most organizations. a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 2-2
NATIONAL STANDARDS: United States - Level I
Knowledge
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence

10. The specific segment of an organization's external environment is unique to its region of the country. a. True
b. False
ANSWER: False

RATIONALE: The specific environment is unique to the firm's industry, not region of the country.

POINTS: 1

DIFFICULTY: Easy

REFERENCES: 2-3
NATIONAL STANDARDS: United States - Level I Knowledge

, Test Bank For Effective Management 7th Edition BY Chuck Williams
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence

11. Business confidence indices are a viable alternative to economic statistics for management decision making. a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 2-2a
NATIONAL STANDARDS: United States - Level I Knowledge
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence | Strategy

12. Managers often prefer economic statistics to business confidence indices as tools for managerial decision making
because of their inherently greater accuracy.
a. True
b. False
ANSWER: False
RATIONALE: Managers often prefer business confidence indices to economic statistics because they know that the
level of confidence reported by real managers affects their business decisions. Unfortunately, the
economic statistics that managers rely on when making these decisions are notoriously poor
predictors of future economic activity.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 2-2a
NATIONAL STANDARDS: United States - Level I Knowledge
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence | Strategy

13. The best way to manage legal responsibilities is to retain a large staff of legal specialists to defend the company
against any charges.
a. True
b. False
ANSWER: False
RATIONALE: The best way to manage legal responsibilities is to educate managers and employees about laws and
regulations and potential lawsuits that could affect a business.
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 2-2d
NATIONAL STANDARDS: United States - Level I Knowledge
TOPICS: AACSB Analytic
KEYWORDS: Environmental Influence | Legal Responsibilities

14. In contrast to the general segment of the external environment that DIRECTLY influences an organization, changes in
the specific segment of an organization's external environment INDIRECTLY affect the way a company conducts its
business.