150 PRACTICE QUESTIONS AND STRATEGIC REVIEW FOR OBJECTIVE
ASSESSMENT SUCCESS WITH MST TESTED QUESTIONS
C483 – INTRODUCTION TO BUSINESS IS A CORE WGU COURSE THAT COVERS ESSENTIAL
BUSINESS PRINCIPLES INCLUDING MANAGEMENT, MARKETING, ECONOMICS, FINANCE, AND
ORGANIZATIONAL STRUCTURE. THIS RESOURCE PROVIDES A TARGETED SET OF PRACTICE
QUESTIONS AND CONCEPT REVIEWS ALIGNED WITH THE OBJECTIVE ASSESSMENT (OA). IT IS
DESIGNED TO HELP STUDENTS MASTER FUNDAMENTAL BUSINESS CONCEPTS AND SUCCEED
ON THE 2025 WGU EXAM
Which of the following refers to the immediate environment surrounding a firm, including suppliers,
customers, rivals, and new entrants?
A. relational environment
B. business situation
C. macroenvironment
D. competitive environment
E. business atmosphere - CORRECT ANSWER-D. competitive environment
(The competitive environment is the immediate environment surrounding a firm. It includes
suppliers, customers, rivals, new entrants, and substitute products.)
In competition, a complement of a health club membership might be?
A. workout clothes.
B. free tickets to the movie.
C. an online workout program.
D. a karate club.
E. an adjacent furniture store - CORRECT ANSWER-A. workout clothes.
(A complement is a potential opportunity because customers buy more of a given product if they
also demand more of the complementary product. The two products are often used together.)
The internal environment includes?
A. competitors and the economy.
B. customers and suppliers.
C. government and social issues.
,D. legal and political factors.
E. culture and climate. - CORRECT ANSWER-E. culture and climate.
(The internal environment includes a firm's culture, climate, and values. The external environment
includes all relevant forces outside the organization's boundaries.)
In Michael Porter's competitive environment model, the five parts of the model are?
A. supply chain management, competitors, rival firms, the economy, and the macroenvironment.
B. customer satisfaction, rival firms, the macroenvironment, the economy, and suppliers.
C. new entrants, the macroenvironment, substitutes and complements, employees, and the
economy.
D. new entrants, the macroenvironment, the economy, rival firms, and competitors.
E. suppliers, new entrants, customers, substitutes and complements, and rival firms. - CORRECT
ANSWER-E. suppliers, new entrants, customers, substitutes and complements, and rival firms.
(According to Porter, successful managers do more than simply react to the environment; they act in
ways that actually change the organization's environment. His model focuses on new entrants,
customers, substitutes and complements, suppliers, and rival firms.)
Which of the following aspects of organization culture will tell you what the firm's desired public
image is?
A. the employee handbook
B. the stories people tell
C. the corporate mission statement
D. the organization's important business practices
E. the organization's symbols, rights, and ceremonies - CORRECT ANSWER-C. the corporate
mission statement
(Corporate mission statements and official goals tell you what the firm's desired public image is.)
Complexity and dynamism in the environment result in?
A. environmental uncertainty.
B. conflicting competitive intelligence.
C. organizational dynamism.
D. low levels of opportunity.
E. strategic maneuvering. - CORRECT ANSWER-A. environmental uncertainty.
,(Environmental uncertainty means that managers do not have enough information about the
environment to understand or predict the future. Uncertainty arises from two related factors:
complexity and dynamism.)
Michael Porter, a noted authority on strategic management, said that successful managers?
A. should lead by personality and not build a strong organizational culture.
B. react to the competitive environment as their primary task.
C. should primarily focus on internal strengths and weaknesses.
D. act in ways that shape or change the organization's environment.
E. should adopt the philosophies of managers of profitable companies. - CORRECT ANSWER-D.
act in ways that shape or change the organization's environment.
(According to Porter, successful managers do more than simply react to the environment; they act in
ways that actually shape or change the organization's environment.)
Why would a manager of marketing for a shopping mall be concerned with demographics of actual
and potential mall visitors?
A. so that she can become fluent in multiple languages and communicate with mall visitors.
B. so that she can attract retailers that sell products that appeal to the age, gender, and income
levels of mall visitors.
C. so that she can design facilities that meet the needs of elderly and disabled visitors.
D. so that she can determine the proper full-time/part-time employee mix.
E. so that she can ensure that her human resources department can pass an equal employment
audit. - CORRECT ANSWER-B. so that she can attract retailers that sell products that appeal to
the age, gender, and income levels of mall visitors.
(Demographics are measures of various characteristics of the people who make up groups or other
social units. A marketing manager for a shopping mall would decide what stores to attract and
products to sell based upon the demographics (e.g., age, gender, and income levels) of the mall
visitors.)
Which of the following is a characteristic of a strong culture?
A. having questions about corporate goals that only top management can answer.
B. fostering affective conflict.
C. different people holding different values within the organization.
D. having unclear principles to guide decisions.
, E. everyone believing in the organization's practices. - CORRECT ANSWER-E. everyone believing
in the organization's practices
(A strong culture is one in which everyone understands and believes in the firm's goals, priorities,
and practices. In contrast to strong cultures, weak cultures have the following characteristics:
different people hold different values, there is confusion about corporate goals, and it is not clear
from one day to the next what principles should guide decisions.)
The way people within a company dress and act, their interactions with each other and with
customers, and the qualities expected and appreciated by their managers and company are
examples of the?
A. organizational structure.
B. corporate rules and regulations.
C. business trait map.
D. business social structure.
E. organization culture. - CORRECT ANSWER-E. organization culture.
(Organization culture includes the way people dress and behave, the way they interact with each
other and with customers, and the qualities that are likely to be valued by their managers.)
Which of the following is a macroenvironmental factor that can affect an organization?
A. organizational strategy
B. economic recession
C. organization design
D. corporate culture
E. internal hiring decisions - CORRECT ANSWER-B. economic recession
(Macroenvironmental factors include the economy, technology, laws and regulations, demographics,
sustainability, and the natural environment.)
SweetStay Incorporated is a hospitality corporation that runs three chains of hotels in the United
States. Recently, in the face of sinking market share, SweetStay reduced its dependence on the
hospitality industry by opening two restaurants. This is an example of?
A. integration.
B. diversification.
C. acquisition.
D. divestiture.