BUS 100 Final exam (QUESTIONS AND ANSWERS) - Moraine Valley

Chapter 1 The U.S. Business Environment 25) Which environment is NOT an important dimension of a business organization's external environment? A) the political-legal environment B) the sociocultural environment C) the technological environment D) the corporate cultural environment E) the global business environment Answer: D Explanation: D) The external environment consists of everything outside an organization's boundaries that might affect it. The corporate cultural environment is internal to the organization. Page Ref: 6-7 Difficulty: Easy Objective: 1.2 Learning Outcome: Compare and contrast different economic systems Skill: Concept 26) What term denotes a nation's basis for allocating its resources among its citizens? A) capital structure B) economic system C) ownership processes D) distribution network E) national regulations Answer: B Explanation: B) An economic system is a nation's system for allocating its resources among its citizens, both individuals and organizations. Page Ref: 7 Difficulty: Easy Objective: 1.3 Learning Outcome: Compare and contrast different economic systems Skill: Concept 27) What is the process for converting government enterprises into individually owned firms known as? A) production allocation B) privatization C) entrepreneurship D) demand assessment E) profit maximization Answer: B Explanation: B) Privatization is the process of converting government enterprises into privately owned companies, which will then have the right to run such a business for profit. Page Ref: 10 Difficulty: Easy