POB OBJ 5.03 MC #2

Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and:

• injunction.

• authority.

• initiative.

• attrition.

A U.S. company would decide to offer its products in other countries as a reason to:

• subsidize developing countries.

• sell obsolete, outdated products.

• expand to new, untapped markets.

• provide jobs to people in other countries.

A group of individuals wants to open a museum that will display items from early settlers of the area. The group will charge just enough admission to pay the expenses of operating the museum. Will the museum be a business?

• No, the museum will not be considered a business.

• No, the museum will be a charitable institution.

• Yes, the museum will be a not-for-profit business.

• Yes, the museum will be a for-profit business.

If a business is not concerned about social responsibility, it is likely to:

• become solvent.

• prosper.

• grow.

• be a failure.

Which factor has aided the most in creating a global business environment?

• technology

• government

• cultural change

• exchange rate

Which is a factor that affects the business environment?

• industry competition

• staff organization

• information management

• conflict negotiation

One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually:

• provides experience that increases the business's credibility.

• assumes all legal responsibility for the business's actions.

• helps with the day-to-day operations of the business.

• evaluates the performance of the business's employees.