L3. THE FIRM AND ITS ENVIRONMENR

Question 1

MAJOR PROBLEMS FACED BY BUSINESS

Answer 1

1. uncertainty
2. globalization
3. innovation
4. government policy
5. technology
6. diversity
7. complexity
8. information overload

Question 2

the environment of the firm

Answer 2

external environment
internal environment

Question 3

consists of elements that have a direct impact on the business operations

Answer 3

internal envi

Question 4

Consists of factors that have indirect but significant influence on the operations of the business

Answer 4

external envi

Question 5

2 types of external envi

Answer 5

microenvi
macroenvi

Question 6

also known as the operating environment

Answer 6

microenvironment

Question 7

also known as the general envi

Answer 7

macroenvironment

Question 8

what comprises microenvi

Answer 8

customers
suppliers
regulatory agencies
competitors

Question 9

what comprises macroenvi

Answer 9

economic
political
social
legal
technical

Question 10

Is the actual monitoring and evaluation of information from the external and internal environment of a business organization

Answer 10

environmental scanning

Question 11

3 modes of environmental scanning

Answer 11

1. ad hoc envi scanning
2. regular scanning
3. continuous scanning

Question 12

is not often done and is usually applicable only during a crisis situation

Answer 12

ad hoc envi scanning

Question 13

envi scanning that is usually done at least once a year or at regular intervals

Answer 13

regular scanning

Question 14

envi scanning that refers to the continuous collection of data on a board range of envi factors

Answer 14

continuous scannign

Question 15

Is a technique that identifies the STRENGTHS and WEAKNESS of a company, as well as OPPRTUNITIES and THREATS if faces.

Answer 15

SWOT analysis

Question 16

pestel stands for

Answer 16

political
economical
social
technological
ecological
legal

Question 17

Is a method used in analyzing the POLITICAL, ECONOMIC, SOCIAL, and TECHNOLOGICAL forces affecting the company.

Answer 17

pest analysis

Question 18

phases of economic development

Answer 18

mercantilism
industrial revolution
fordism
post-fordism
globalization

Question 19

time period of mercantilism

Answer 19

1500-1780

Question 20

time period of industrial revolution

Answer 20

1780-1880

Question 21

time period of fordism

Answer 21

1880-1970

Question 22

time period of post-fordism

Answer 22

1970-2010

Question 23

time period of globalization

Answer 23

2010-present

Question 24

resources with economic value that are owned and controlled by the business owners

Answer 24

assets

Question 25

debts or obligations which arise in the course of the business operations

Answer 25

liabilities

Question 26

forms of business organizations

Answer 26

1. sole proprietorship 2. partnership 3. corporation

Question 27

form of business org that is owned by one person

Answer 27

sole proprietorship

Question 28

form of business org that has 2 or more owners

Answer 28

partnership

Question 29

form of business org that has a distinct personality separate from its owners

Answer 29

corporation

Question 30

Wherein the partners have unlimited liability for debts and obligations of the partnership

Answer 30

general partnership

Question 31

Wherein one or more general partners have unlimited liability and the limited partners have liability that is only up to the amount equal to their capital contributions.

Answer 31

limited partnership

Question 32

Capital stock divided into shares and dividends

Answer 32

stock corporation

Question 33

Does not issue shares and dividends. (surplus)

Answer 33

non-stock corporation

Question 34

branch office is organized to do the activities of the head office from the host country.

Answer 34

foreign business organization

Question 35

classification of business

Answer 35

1. service business 2. merchandising business 3. manufacturing business

Question 36

type of business that provides labor and other services to customers

Answer 36

service business

Question 37

type of business that purchases products from other businesses

Answer 37

merchandising business

Question 38

type of business where raw materials are transformed into finished goods

Answer 38

manufacturing business

Question 39

perspective on ethics

Answer 39

universalism egoism utilitarianism relativism virtue ethics

Question 40

principle which states that all people should have certain values

Answer 40

universalism

Question 41

principle which promotes the greatest good to oneself

Answer 41

egoism

Question 42

the principle which focuses on the greatest good for the greatest number of people

Answer 42

utilitarianism

Question 43

principle which states that ethical behavior is based on a person’s own and other relevant people’s opinion and viewpoints

Answer 43

relativism

Question 44

is the principle which states that morality depends on the maturity of a person with good moral character

Answer 44

virtue ethics

Question 45

Refers to that sense of “wholeness’’ created by the right relationships among the members of the corporation

Answer 45

corporate integrity

Question 46

Refers to business operations and activities that have the welfare of society in mind

Answer 46

corporate social responsibility

Question 47

Refers to complying with legal and ethical standards to uphold social welfare

Answer 47

social obligation

Question 48

Goes beyond prescribed standards and implements actions that aim to make an impact on society

Answer 48

social responsiveness

Question 49

The company should produce goods and services with reasonable prices.

Answer 49

economic responsibility

Question 50

The company should comply with local and international laws that apply to its business operations

Answer 50

legal responsibility

Question 51

It includes establishing norms, standards, mores, and practices that reflect fairness to the consumers, employees, shareholders, and the community.

Answer 51

ethical responsibility

Question 52

It includes the initiation if voluntary activities such as establishing corporate programs, donating to charitable institutions, and other similar charitable causes.

Answer 52

philanthropic responsibility