Solomon: Better Business, Second Canadian Edition Chapter 2: The Environment of Business
Incorrect: When there is a period of high sales, high employment, and high productivity (business, and therefore the economy, are said to be ―booming‖), most people have jobs and make a good income, thus consumer spending rises. d. stock markets are sluggish, but prices are falling Incorrect: When there is a period of high sales, high employment, and high productivity (business, and therefore the economy, are said to be ―booming‖), most people have jobs and make a good income, thus consumer spending rises. Answer: b Diff: 3 Type: MC Page Reference: 24 Objective: 2.2 Explain how managers use the PEST model to analyze external business opportunities and threats. 19) Which of the following is considered a part of the competitive environment of an organization? a. suppliers Correct: The competitive environment includes groups and organizations that have a direct relationship with the business. b. government Incorrect: The competitive environment includes groups and organizations that have a direct relationship with the business. c. foreign ministers Incorrect: The competitive environment includes groups and organizations that have a direct relationship with the business. d. the justice system Incorrect: The competitive environment includes groups and organizations that have a direct relationship with the business. Answer: a Diff: 1 Type: MC Page Reference: 21 Objective: 2.1 Describe the macro business environment and explain why managers must be aware of changes taking place. 20) The business environment that refers to what occurs outside the organization is described as . a. the internal environment Incorrect: The external environment (what occurs outside the organization) is referred to as the macro environment. b. the limited environment Incorrect: The external environment (what occurs outside the organization) is referred to as the macro environment. c. the macro environment 11 Copyright © 2016 Pearson Canada Inc.