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Business And Its Environment 7th Edition by Baron - Test Bank
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Voorbeeld van de inhoud
, Copyright ©2013 Pearson Education, Inc. publishing as Prentice HallChapter One:
Market and Nonmarket Environments
True/False Questions:
1) Firms have more control over their future in their nonmarket environment than they have
in the markets in which they operate.
Answer: False
Page reference: 1
Difficulty: Easy
AACSB:
Learning Outcome: Describe the components of the management environment
2) The long-run sustainability of competitive advantage requires managing effectively in the
nonmarket environment.
Answer: True
Page reference: 1
Difficulty: Easy
AACSB:
Learning Outcome: Describe the components of the management environment
3) Effective management in the market environment is sufficient for superior performance of the
firm over its competitors.
Answer: False
Page reference: 2
Difficulty: Moderate
AACSB:
Learning Outcome: Describe the components of the management environment
4) The nonmarket environment is characterized by the social, political, and legal arrangements
that structure interactions outside of, but in conjunction, with markets and private agreements.
Answer: True
1
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, Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall
Page reference: 2
Difficulty: Easy
AACSB:
Learning Outcome: Describe the components of the management environment
5) Activities in the nonmarket environment may be voluntary, as when the firm cooperates with
government officials or an environmental group, or involuntary, as in the case of government
regulation or a boycott of a firm’s product led by an activist group.
Answer: True
Page reference: 2
Difficulty: Moderate
AACSB:
Learning Outcome: Describe the components of the management environment
6) Nonmarket issues high on firms’ agendas include environmental protection, health and safety,
regulation and deregulation, intellectual property protection, international trade policy, antitrust as
well as other issues such as human rights.
Answer: True
Page reference: 2
Difficulty: Easy
AACSB:
Learning Outcome: Describe the components of the management environment
7) Managers do not participate in the implementation of nonmarket strategies.
Answer: False
Page reference: 3
Difficulty: Easy
AACSB:
Learning Outcome: Describe the components of the management environment
8) In formulating nonmarket strategies, managers may draw on the expertise of lawyers,
communications specialists, Washington representatives, and community relations specialists.
Answer: True
2
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, Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall
Page reference: 3
Difficulty: Easy
AACSB:
Learning Outcome: Describe the components of the management environment
9) In the nonmarket environment, legislation, regulation, administrative decisions, and public
pressure are the result of competition involving individuals, activists, interest groups, and firms.
Answer: True
Page reference: 4
Difficulty: Easy
AACSB:
Learning Outcome: Describe the components of the management environment
10) In the market environment, strategies are intermediated by public and private institutions,
whereas in the nonmarket environment, strategies are intermediated by markets.
Answer: False
Page reference: 4
Difficulty: Moderate
AACSB:
Learning Outcome: Describe the components of the management environment
11) The nonmarket environment of a firm is characterized by four I’s: independence, individuality,
ideas and income.
Answer: False
Page reference: 4
Difficulty: Easy
AACSB:
Learning Outcome: Describe the components of the management environment
12) Information is the basic unit of analysis and the focus of nonmarket action.
Answer: False
Page reference: 4
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