Chapter 2

Question 1

everything outside an organization’s boundaries

Answer 1

External Environment

Question 2

set of broad dimensions and forces in an organization’s surroundings that determine its overall context

Answer 2

General Environment

Question 3

overall health and vitality of the economic system in which the organization operates

Answer 3

economic dimension

Question 4

methods available for converting resources into products or services

Answer 4

Technological Dimension

Question 5

government regulation of business and the relationship between business and government

Answer 5

Political-legal Dimension

Question 6

specific organization’s or groups that affect the organization

Answer 6

Task Environment

Question 7

competes with other organizations for resources

Answer 7

Competitor

Question 8

pays money to acquire an organization’s products or services

Answer 8

Customer

Question 9

provides resources for other organization

Answer 9

Supplier

Question 10

body that has the potential to control, legislate, or otherwise influence the organization’s policies and practices

Answer 10

Regulator

Question 11

2 Kinds of Regulator

Answer 11

Regulatory Agency
Interest Group

Question 12

created by the government to regulate business activities

Answer 12

Regulatory Agency

Question 13

group organize by its members to influence organizations

Answer 13

Interest Group

Question 14

two or more other organizations working together in a joint venture or similar arrangement

Answer 14

Strategic Partners

Question 15

inside the organization

Answer 15

Internal Environment

Question 16

have legal property rights to that business

Answer 16

owners

Question 17

charged with overseeing the general management of the firm to ensure that it’s being run to best serve the stockholders interests

Answer 17

Board of Directors

Question 18

major element of internal environment

Answer 18

Employees

Question 19

final part of the internal environment and actual physical environment and the work that people do

Answer 19

Physical Work Environment

Question 20

individuals personal beliefs about whether a behavior, action or decision is right or wrong

Answer 20

ethics

Question 21

behavior that conforms to generally accepted social norms

Answer 21

ethical behavior

Question 22

does not conform to generally accepted social norms

Answer 22

unethical behavior

Question 23

standard behavior that guide individual managers in their work

Answer 23

managerial ethics

Question 24

a formal, written statement of the values and ethical standards that guide a firms action

Answer 24

codes of ethics

Question 25

a law that requires CEOs and CFOs to vouch personally for the truthfulness and fairness of their firms an financial disclosures and it also imposes tough new measures to deter and punish corporate and accounting fraud and corruption

Answer 25

Sarbanes-oxley Act of 2002

Question 26

BODs are expected to ensure the property and decisions made are the best interests

Answer 26

corporate governance

Question 27

a final set of issues that has emerged in recent times involves information technology

Answer 27

ethics and information technology

Question 28

set of obligations that an organization has to protect and enhance the societal context in which it functions

Answer 28

social responsibility

Question 29

complies with local, state, federal, and international laws

Answer 29

legal compliance

Question 30

follow basic ethical standard of behavior

Answer 30

ethical compliance

Question 31

awarding funds or gifts to charities or other worthy causes

Answer 31

philanthropic giving

Question 32

making a product in the firms domestic marketplace and selling it in another country

Answer 32

exporting

Question 33

bringing a good, services, or capital into the home country from abroad

Answer 33

importing

Question 34

allows another company to use it's brand name or other assets in exchange for a royalty based on sales

Answer 34

licensing

Question 35

cooperative arrangement between two or more firms for mutual gain

Answer 35

strategic alliance

Question 36

special type of strategic alliance of which the partners share in the ownership of an operation on an equity basis

Answer 36

joint venture

Question 37

purchases operating facilities or subsidiaries in a different country

Answer 37

direct investment

Question 38

tax collected on goods shipped across national boundaries

Answer 38

tariff

Question 39

limit on the number or value of goods that can be traded

Answer 39

quota

Question 40

countries voluntarily limit the volume or value of goods they expert to or import from one another

Answer 40

export restraint agreement

Question 41

set of countries that agree to markedly reduce or eliminate trade barriers among member of nations

Answer 41

economic community

Question 42

first and most important international market system

Answer 42

European Union

Question 43

an agreement among US, Canda, and Mexico to promote trade with one another

Answer 43

North American Free Trade Agreement (NAFTA)

Question 44

intended to promote international trade by reducing trade barriers

Answer 44

General Agreement on Tariffs and Trade (GATT)

Question 45

how many members and observer countries are include in the world trade organization

Answer 45

140 members 32 observer countries

Question 46

requires members to open their markets to international trade and to follow rules

Answer 46

World Trade Organization's (WTO)

Question 47

set of values, beliefs, behaviors, customs, and attitudes that helps the organization's members understand what it stands for, how it does things,and what it considers important

Answer 47

organizational culture