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Q:
The owner of Elixir Force Inc. received the most prestigious corporate award and was also titled as "the most outstanding new entrepreneur of the year." In the context of people-based legitimacy, this is typically an indicator of:
A. brand equity.
B. public recognition.
C. business network membership.
D. experiential supports.
Q:
The _____ is the most important element of social capital to customers and supporters of a business, such as bankers, lawyers, and suppliers.
A. union
B. government
C. competitor
D. owner
Q:
_____ means that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors.
A. Bureaucracy
B. Illiquidity
C. Legitimacy
D. Insolvency
Q:
The social capital of a firm is high when:
A. legitimacy of the firm is high.
B. the firm has an underdeveloped social network.
C. the firm fails to make ethical decisions.
D. external relations of the firm are ill-managed.
Q:
Social capital is the major component of what accountants call _____, and it can be found on business's balance sheet.
A. doubtful debt
B. goodwill
C. bequest
D. excise duty
Q:
Which of the following statements about small businesses high in social capital is true?
A. They are given the benefit of the doubt when problems occur.
B. They are less trusted than businesses that are low in social capital.
C. Their balance sheets will fail to appeal to investors.
D. They are checked up on by regulators frequently.
Q:
Which of the following statements is true of social capital?
A. Social capital cannot be found on a business's balance sheet.
B. The less of social capital a firm has, the greater the value of the firm.
C. Social capital is capital in the same sense that cash or land can be.
D. Small businesses high in social capital are treated less fairly by regulators.
Q:
By efficiently managing external relations, small businesses typically aim at creating _____.
A. economies of scale
B. social capital
C. opportunity costs
D. skills inventory
Q:
_____ is best defined as the characteristics of a business, like trust, consistency, and networks that help make business operations smooth and efficient.
A. Social capital
B. Golden handshake
C. Intangible liability
D. Caveat emptor
Q:
The general description for the processes and skills used in the management of a firm's interactions with people, organizations, and institutions outside of its boundary is called _____.
A. external relations
B. organizational structure
C. horizontal integration
D. social audit
Q:
Which of the following statements is true about the general environment?
A. This part of the external environment is smaller than the task environment.
B. The task and internal environments of a firm are independent of its general environment.
C. It excludes the broad trends of the environment affecting law, government, and politics.
D. It always needs to be considered in terms of its social supports and institutional supports.
Q:
Which of the following is typically a part of a firm's general environment?
A. The media of a country
B. The firm's board of directors
C. The politics and laws of a country
D. The firm's corporate allies
Q:
Economic sector in the general environment is primarily concerned about the:
A. trends in the mix of ages, races, and gender in society.
B. availability of raw materials and changes in weather and ecological forces.
C. availability of equity, credit, and employment in a country.
D. shared interests and differences between subcultures.
Q:
_____ target specific industries and professions.
A. Trade magazines
B. Scholarly journals
C. Popular press magazines
D. Academic journals
Q:
The _____ of an organization will be a part of its task environment.
A. owners
B. board of directors
C. competitors
D. employees
Q:
Which of the following statements is true about the task environment?
A. The task environment of a firm is larger than its general environment.
B. This part of the environment is made up of those people a firm deals with every day.
C. It is extremely easy to recognize new trends and changes among the members of the task environment.
D. It is a part of the internal environment made up of employees, owners, and board of directors.
Q:
Those parts of the external environment that directly and consistently touch on a firm are called the:
A. task environment.
B. microenvironment.
C. real-time environment.
D. general environment.
Q:
The _____ of a firm refers to the forces, institutions and people (i.e., the rest of the world) outside its boundary.
A. microenvironment
B. organizational climate
C. organizational organogram
D. external environment
Q:
Factors such as the ages, races, and gender of customers would be an element of the firm's _____ environment.
A. general
B. internal
C. task
D. ownership
Q:
Which of the following is an element of a firm's task environment?
A. The economic sector where the firm does business
B. The firm's employees
C. The sociocultural sector where the firm does business
D. The firm's corporate partners
Q:
Which of the following is an element of a firm's external environment?
A. Employees
B. Suppliers
C. Owners
D. Board of directors
Q:
Which of the following is an element of a firm's internal environment?
A. Customers
B. Suppliers
C. Unions
D. Board of directors
Q:
_____ refers to a set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done.
A. Organizational portfolio
B. Organizational ergonomic
C. Organizational culture
D. Organizational layout
Q:
_____ are considered as a part of the internal environment of a firm.
A. Employees
B. Suppliers
C. Competitors
D. Unions
Q:
Thomas has started a new business venture for which he has been using highly economical resources, such as the market research data available in public libraries, low-interest funds borrowed from national banks, and equipments hired on lease. This technique used by Thomas to overcome resource constraints in his start-up firm is best known as _____.
A. caveat emptor
B. moonlighting
C. bootstrapping
D. collective bargaining
Q:
Following the BRIE model in starting a business, an entrepreneur creates a boundary within the environment, setting his firm apart from the rest of the environment. In doing this, the entrepreneur gives the firm an _____.
A. organizational citizenship
B. organizational identity
C. organizational diversity
D. organizational collusion
Q:
_____ refers to the sum total of forces outside of an entrepreneur and a firm.
A. Environment
B. Organizational climate
C. Corporate governance
D. Social capital
Q:
In innovation, it is mandatory for a person to be sure how a new idea is going to turn out.
Q:
Small businesses are often the first to try something innovative.
Q:
In a negotiation between two parties, the BATNA's of both parties makes more sense than finding a solution together.
Q:
The billboard principle is an ethical model that asks whether someone would be comfortable having his or her decision and name advertised on a billboard for the public to see.
Q:
Universalism is an ethical model that suggests people get their ideas of right and wrong from their family, religion, education, and community.
Q:
In making moral decisions, it is possible to find oneself in the legal "right" but still unable to make a viable business decision by pursuing legal recourse.
Q:
An ethical decision should reflect a decision-maker's real or presumed obligations to people and institutions in his or her firm and in its task environment.
Q:
LaRue Hosmer's model for making ethical decisions is focused more on small business than big ones.
Q:
A business can make a profit by focusing on ways to enhance others' sustainability efforts.
Q:
As the owner of a business, quickly admitting that the firm is in trouble indicates a lack of accountability.
Q:
Electronic social networks have membership costs, but offer the all-important personal touch as well as those all-important local connections.
Q:
Social networking helps build long-lasting relationships into a person's day-to-day business operations.
Q:
Compared to a corporation, a sole proprietorship is usually considered more legitimate by customers, suppliers, and investors.
Q:
Gaining legitimacy in small businesses is especially difficult for entrepreneurs seen as "different"women, minorities, home-based businesses, or businesses started by young people.
Q:
Small businesses high in social capital are less trusted when problems occur.
Q:
The goal of any small business owner is to manage external relations in order to minimize social capital.
Q:
Inexpensive worldwide communication, shipping, and money transfers mean that small businesses compete globally for business and need to be aware of global trends.
Q:
Being a small business makes managing organizational culture harder than in larger businesses.
Q:
Gathering resources for a business is easier during economic recessions than during economic boom times.
Q:
As a firm establishes a track record for performance, that performance, along with the goods or services it creates become key elements of the firm's and entrepreneur's identity.
Q:
Briefly describe the four philosophies related to ethics a person can use to evaluate alternatives he or she has generated to solve a problem.
Q:
Briefly discuss LaRue Hosmer's model for making ethical decisions in business.
Q:
How can a business achieve sustainability? How can a business make profits out of enhancing others' sustainability efforts?
Q:
Explain in detail the steps that a small business owner should follow when faced with a crisis.
Q:
What are the four best practices that can help any online social networking effort become successful?
Q:
An approach to building organization-based legitimacy is through the creation and display of a company code of ethics. Explain.
Q:
What are the three general forms of legitimacy that small businesses can develop?
Q:
Discuss some of the feasible ways of monitoring the environment of small businesses.
Q:
Elaborate on the general environment of a firm.
Q:
What does the task environment of a firm consists of?
Q:
A way to minimize the need for high-pressure ethical decision making situations in business is by:
A. getting down to every detail of what to permit or prohibit in positively managing a firm's external relations.
B. using lapses in external relations as learning experiences for the rest of the firm by talking openly about the issues.
C. excluding the lessons of legitimacy, social networking, crisis management, sustainability, and ethical decision making from everyday activities.
D. getting emotional when counseling around external relations issues and by keeping the consequences of external relations lapses inconsistent.
Q:
When compared to large businesses, small business owners start their business typically to take advantage of:
A. the caveat emptor business philosophy.
B. an innovative idea.
C. the large amounts of resources they have.
D. their ability to scan the environment better.
Q:
Which of the following business costs of ethical failures causes the least damage?
A. Government penalty
B. Loss of reputation
C. Loss of employee morale
D. Customer defection
Q:
In a negotiation settlement, _____ refers to the second-best outcome identified by the parties to help clarify the value of achieving a successful negotiation.
A. caveat emptor
B. green audit
C. ESOP
D. BATNA
Q:
Which of the following ethical philosophies do questions like, "What if everyone did what I want to do and what kind of world would that be" best summarize?
A. Caveat emptor
B. Universalism
C. Utilitarianism
D. Imitative strategy
Q:
An ethical model conceived by the German philosopher Immanuel Kant which suggests that there is a code of right and wrong that everyone can see and follow refers to _____.
A. the billboard principle
B. universalism
C. caveat emptor
D. utilitarianism
Q:
Which ethical model typically advocates seeking the greatest good for the greatest number of people?
A. Utilitarianism
B. Caveat emptor
C. The Golden Rule
D. Machiavellianism
Q:
An ethical model that advocates treating others in the manner one wishes to be treated refers to _____.
A. due diligence
B. caveat emptor
C. the Golden Rule
D. the imitative strategy
Q:
Using _____ as a defense puts the entrepreneur who uses it, and, usually by association, the whole small business community, in a negative light.
A. social capital
B. utilitarianism
C. green audit
D. caveat emptor
Q:
People should typically avoid businesses that advocate:
A. utilitarianism in ethical decision making.
B. caveat emptor as the business principle.
C. bootstrapping as a means to save costs of doing business.
D. green audit and green retailing.
Q:
Which of the following statements is true about caveat emptor?
A. As a legal principle, the phrase has been routinely approved.
B. It is often the first line of defense by producers of shoddy merchandise.
C. Using it as a defense puts the entrepreneur who uses it in a positive light.
D. A business using it as a principle is considered highly legitimate and accountable.
Q:
_____ means "let the buyer beware," and is a philosophy sometimes used by businesses to put the burden for consumer protection onto a customer.
A. Caveat emptor
B. Habeas corpus
C. Laissez faire
D. Persona grata
Q:
Which of the following questions in LaRue Hosmer's approach to ethical decision making best reflects a decision maker's real or presumed obligations to people and institutions in a firm and in its task environment?
A. What does the decision maker (or the firm) owe others?
B. What do others owe the decision maker (or the firm)?
C. Who will be hurt (and how much) as a consequence of the decision?
D. Who will benefit (and how much) as a consequence of the decision?
Q:
The questions on who will be hurt and how much, who will benefit and how much, what does the owner or the firm owe others, and what do others owe the owner and the firm are typically asked when:
A. the best solution for a moral problem is being implemented.
B. the progress of a solution to a moral problem is being monitored.
C. a variety of alternatives is to be generated to handle a moral problem.
D. the moral dimension of a problem is to be determined.
Q:
The first step in LaRue Hosmer's model for ethical decision making is:
A. choosing an ethical philosophy to help make choices.
B. defining the moral dimensions of a problem.
C. generating a variety of alternatives to handle a problem.
D. creating a feedback loop to check the progress of a solution.
Q:
Which of the following includes a three-step process that has been adopted to help small businesses make better and more ethical decisions?
A. Green audit
B. LaRue Hosmer's model
C. The gold standard for crisis leadership
D. The Machiavellian approach
Q:
Jake is a small business owner of Macho Doors, a manufacturer and installer of garage doors. His business has earned the reputation as a reliable, trustworthy business that makes high quality, long-lasting doors. However, with rising gasoline and wood prices, Jake is finding it hard to maintain the existing quality standards. If he continues with the existing quality standard, his profit margins will go down and he will not be able to hike his employees' salaries; if he inserts panels of lower quality wood the reputation of his business will be lost. The situation that Jakes faces is typically described as a(n) _____.
A. mutuality
B. ethical dilemma
C. caveat emptor
D. cognitive dissonance
Q:
Justin is a sales executive at a manufacturing company. One of his clients who purchases products from him at a higher price than that quoted by competitors is facing financial problems. Since Justin's promotion depends on his achieving the sales target, he cannot decide whether he should inform his client about the lower prices its competitors are paying. Justin is facing a situation known as _____.
A. effectuation
B. social loafing
C. cognitive resonance
D. ethical dilemma
Q:
_____ refers to a situation where a person's values are in conflict, making it unclear whether a particular decision is the right thing to do.
A. Cognitive resonance
B. Mutuality
C. Ethical dilemma
D. Effectuation
Q:
A system of values people use to determine whether actions are right or wrong is referred to as _____.
A. bootstrapping
B. pathos
C. green auditing
D. ethics
Q:
The CEO at River Castle Inc. asked the employees to prepare a report on ways in which the company could become more environmental friendly. The reports revealed areas in which the company had been unnecessarily adding to its carbon footprint and consuming excessive energy due to faulty machines. As a corrective action, all the faulty and outdated equipment were replaced with efficient equipment. This is an example of a(n) _____.
A. arraignment
B. green audit
C. positive feedback
D. bootstrap paradox
Q:
_____ is a certification standard from the U.S. Green Building Council for buildings that are environmentally friendly.
A. LEED
B. ESOP
C. ISO
D. BATNA
Q:
_____ is an approach to operating a firm or a line of business which identifies, creates, and exploits opportunities to make a profit in a manner that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment.
A. Serial entrepreneurship
B. Venture capitalism
C. Sustainable entrepreneurship
D. Corporate intrapreneurship