Barriers to Entry and Learning Objective

Chapter 04

The External Environment

Multiple Choice Questions

1. (p. 81) The external environment can be divided into various subcategories:
A. Remote, political, social
B. Remote, social, operational
C. Remote, industry, operating
D. Technological and social

Difficulty: Easy
Learning Objective: 1

2. (p. 81) A firm's external environment includes a remote sector, industry sector and an operating sector. The remote sector includes which of the following categories?
A. Political, technological, economic and social
B. Political, supplier power, economic and labor
C. State government, production, social and economic
D. Mission, company profile and competition

Difficulty: Easy
Learning Objective: 1

3. (p. 81) The remote external environment includes:
A. Creditors
B. Industry factors
C. Employee
D. Ecological factors

Difficulty: Easy
Learning Objective: 1

4. (p.81) The factors beyond the control of the firm that influence its choice of direction and action, organizational structure and internal processes refers to
A. Directional strategies
B. External environment
C. Organizational processes
D. Internal environment

Difficulty: Easy
Learning Objective: 1

5. (p. 81) The ______ environment compromises factors that originate beyond and usually irrespective of, any single firm's operating situation.
A. Remote
B. Industry
C. Operating
D. Internal

Difficulty: Easy
Learning Objective: 2

6. (p. 81) Supplier power is an example of a factor that falls within the _________ environment.
A. Economic
B. Operating
C. Industry
D. Remote

Difficulty: Easy
Learning Objective: 1

7. (p. 81) Which environment compromises factors in the immediate competitive situation that affect a firm's success in acquiring needed resources?
A. Industry
B. Remote
C. Economic
D. Operating

Difficulty: Hard
Learning Objective: 1

8. (p. 81) When we