HSB Principles of Business Objective Quiz

Which of the following factors affecting the business environment is represented by the business's location:

• Cultural

• Environmental

• Economic

• Political

One internal factor that affects the business environment is   

• industry trends.
• the business cycle.
• management style.
• exchange rates.

Which of the following will foster a business's ability to adapt to changing markets: 

• Proactive management 
• Reactive management
• Authoritarian leadership
•  Conservative leadership

To maintain its current customer base and attract new markets, the KMV Company lowered the prices of some of its products. What external factor most likely influenced this action?

• Changes in consumer spending 
• Operating cost increases 
• Production line improvements
•  Comprehensive employee training programs

Which of the following would be done first in an environmental scan: 

• Carrying out scanning activities
• Identify and analyzing important trends and issues 
• Selecting trends and issues to act on 
• Identifying participants and responsibilities

A business should conduct environmental scans on a continuous basis so that it can  

• control the external environment. 
• change customers' attitudes. 
• save money.
• respond to opportunities and threats quickly.  

What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit?

• Encouraging the production of wheat
• Using price supports
• Industrializing the economy
• Encouraging energy conservation

Government can prevent unqualified persons from operating a business by

• refusing to grant them a license.
• closing their bank accounts.
• raising their taxes.
• helping their competitors.

A business that fails to protect its employees from unnecessary risk or health hazards on the job may be sued for

• libel.

• misrepresentation.

• negligence.

• incompetence.

An advantage to a business of filing Chapter 11 bankruptcy is that the process allows the business to 

• liquidate. 
• reorganize.
• eliminate taxes.
• sell assets.