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The Firm & Its Environment

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

A smaller number of firms increase rivalry because fewer firms must compete for the same customers and resources.

a)

True

b)

False

2.

Which of the following is an advantage of a sole proprietorship?

a)

Pride ownership

b)

Ease of starting a business

c)

Being your own boss

d)

All of the given options

3.

A sole proprietorship is the simplest form of business organization.

a)

True

b)

False

4.

Which of the following is not a commonly used term to describe an element of the business environment?

a)

Macro-environment

b)

Micro-environment

c)

Extrinsic environment

d)

Internal environment

5.

Which of the following is an opportunity for an organization?

a)

Poor marketing skills

b)

Good distribution skills

c)

Limited management skills

d)

Rapid market growth

6.

Which of the following is a threat for an organization?

a)

Economic downturn

b)

Out-of-date products / technology

c)

Higher costs

d)

Rapid market growth

7.

With regard to a sole proprietorship, the owner of the business is the business; in other words, there is no separate legal entity.

a)

True

b)

False

8.

Which of the following does not form part of a firm's macro-environment?

a)

political environment

b)

economic environment

c)

technological environment

d)

internal environment

9.

Corporation pertains to the establishments, operations, and profits of large business which was handled by groups of people.

a)

True

b)

False

10.

This is something that at some time in the future may destabilize and/or reduce the potential performance of the organization.

a)

Strength

b)

Opportunity

c)

Threat

d)

Weakness

11.

Walt Rostow’s Economic Development model has five major stages.

a)

True

b)

False

12.

The three major forms of business ownership are (1) sole proprietorships, (2) partnerships, and (3) co-operatives.

a)

True

b)

False

13.

Which of the following is considered as a Social Factor?

a)

Career attitudes

b)

R & D quality

c)

Environmental regulations

d)

All of the choices

14.

In SWOT Analysis, which among the following are considered as internal factors which can greatly affect our strategies in managing our business?

a)

Opportunities; Weaknesses

b)

Threats; Opportunities

c)

Threats; Strengths

d)

Strengths; Weaknesses

15.

It is NOT easy to enter an industry if there is:

a)

Difficulty in brand switching

b)

Restricted distribution channels

c)

Patented of propriety know-how

d)

All of the choices