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MCQs

1

A business whether national or international contains the following activities or functions:

a)
b)
c)
d)
Correct!Check Chapter One page 6. This will confirm the definitions by the author.Your answer has been saved.
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2

The 3 basic forms of businesses are:

a)
b)
c)
d)
Correct!Review Classifications of Businesses commencing page 7.Your answer has been saved.
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3

State-owned enterprises or nationalised enterprises differ from privately-funded companies because:

a)
b)
c)
d)
e)
Correct!Re-read Classification of Businesses Page 8.Your answer has been saved.
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4

Organisational structures can be divided into the following three broad categories

a)
b)
c)
d)
Correct!Review Business Organisation page 13.Your answer has been saved.
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5

Empowerment is expected to increase efficiency, what makes it effective:

a)
b)
c)
d)
Correct!This is clearly outlined and reviewed in the text pages 21 -23.Your answer has been saved.
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6

Current Corporate Governance issues can centre around the point of view of the shareholder and will centre on a set group of issues:

a)
b)
c)
d)
e)
Correct!Corporate Governance section clarifies the issues and is on pages 23 - 30, particularly note the summary at the foot of page 29.Your answer has been saved.
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7

The acronym PEST is used to represent:

a)
b)
c)
d)
e)
Correct!PEST is fully explained and discussed on pages 30 and 31.Your answer has been saved.
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8

The acronym SWOT is used to analyse the company's

a)
b)
c)
d)
Correct!SWOT is fully explained and discussed from page 31 to page 33.Your answer has been saved.
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9

The function of Operations within the company is responsible for:

a)
b)
c)
d)
Correct!The Transformation model is illustrated on page 38 figure 2.2.Your answer has been saved.
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10

An intangible product is produced by :

a)
b)
c)
d)
Correct!Refer to page 39 the paragraph commencing with the example of a camera.Your answer has been saved.
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11

Operations is defined as:

a)
b)
c)
d)
e)
Correct!Review page 38 paragraph 1.Your answer has been saved.
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12

The five performance objectives of Operations are:

a)
b)
c)
d)
Correct!If not clear re-read pages 41 to 43.Your answer has been saved.
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13

The marketing concept is:

a)
b)
c)
d)
e)
Correct!Discussed in detail on page 44.Your answer has been saved.
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14

Providing separate goods and services for distinct groups of consumers is known as:

a)
b)
c)
d)
e)
Correct!Detailed information page 45 Elements of Marketing.Your answer has been saved.
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15

Identify the correct statement(s);

a)
b)
c)
d)
e)
Correct!Read page 46 BrandYour answer has been saved.
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16

The 4P's of the marketing mix are:

a)
b)
c)
d)
Correct!Review page 47 Marketing Your answer has been saved.
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17

The marketing mix when applied to International Markets must:

a)
b)
c)
d)
e)
Correct!Review the write-up of Marketing in the International Environment page 48.Your answer has been saved.
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18

Employees are rewarded by:

a)
b)
c)
d)
e)
Your answer has been saved.
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19

The key elements of HRM are:

a)
b)
c)
d)
e)
Correct!Elements of HRM pages 51 -54.Your answer has been saved.
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20

The elements of management accounting are:

a)
b)
c)
d)
Correct!Elements in Management Accounting page 57, in-depth analysis pages 56 and 57.Your answer has been saved.
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21

Financial reporting is done by:

a)
b)
c)
d)
Correct!Refer to and review Financial reporting page 57.Your answer has been saved.
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22

Innovation is involved with more than just new product development. These include:

a)
b)
c)
d)
Correct!IncorrectYour answer has been saved.
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23

The downloading of music over the internet is an excellent example of:

a)
b)
c)
d)
e)
Correct!Check New Product Development page 60.Your answer has been saved.
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24

The downloading of music over the internet is an excellent example of:

a)
b)
c)
d)
e)
Correct!Check New Product Development page 60.Your answer has been saved.
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25

Governments can influence spending by companies and individuals by:

a)
b)
c)
d)
Correct!The macro environment: flows of economic resources pages 66 and 67.Your answer has been saved.
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26

GNI and GNP stand for:

a)
b)
c)
d)
Correct!Detailed on pages 67 to 68.Your answer has been saved.
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27

Purchasing power parity (PPP) is used in addition to GNI and GNP as it more accurately reflects:

a)
b)
c)
d)
Correct!Explained on page 69.Your answer has been saved.
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28

The sectors of the national economy are:

a)
b)
c)
d)
Correct!Refer to Industrial Structure page 70.Your answer has been saved.
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29

Two of the most commonly advanced reasons for inflation are:

a)
b)
c)
d)
Correct!Detailed and discussed pages 71 and 72.Your answer has been saved.
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30

Unemployment is defined as:

a)
b)
c)
d)
Correct!Study pages 74 and 75.Your answer has been saved.
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31

The Balance of Payments Current Account is made up of

a)
b)
c)
d)
Correct!Full explanation on pages 75 and 76.Your answer has been saved.
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32

The short term fluctuations of the business cycle are divided into four phases that are:

a)
b)
c)
d)
Correct!The business cycle page 79 and 80.Your answer has been saved.
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33

Capitalism comprises three key elements:

a)
b)
c)
d)
Correct!Refer to page 95.Your answer has been saved.
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34

The relationship between supply and demand determines:

a)
b)
c)
d)
Correct!See Competitive Markets: supply and demand, page 97 to 99.Your answer has been saved.
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35

Income elasticity is calculated by:

a)
b)
c)
d)
Correct!Competitive markets supply and demand, page 97 to 99.Your answer has been saved.
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36

Price elasticity is calculated by:

a)
b)
c)
d)
Correct!Competitive markets supply and demand, page 97 to 99.Your answer has been saved.
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37

IP is the acronym for Intellectual Property which is defined as :

a)
b)
c)
d)
Correct!See Private Property page 101.Your answer has been saved.
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38

An oligopoly is defined as:

a)
b)
c)
d)
e)
Correct!See Monopoly and Oligopoly page 105.Your answer has been saved.
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39

The law in the UK and EU can constrain mergers and acquisitions of companies where competition may be seen to be threatened and reduced. They can act on what is perceived to be an infringement as shown below:

a)
b)
c)
d)
e)
Correct!Competition Policy page 106.Your answer has been saved.
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40

The process of privatisation is where:

a)
b)
c)
d)
Correct!See page 108.Your answer has been saved.
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41

The social market model of capitalism has:

a)
b)
c)
d)
e)
Correct!Social market capitalism pages 109 to 112.Your answer has been saved.
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42

The Asian model of capitalism relies heavily on:

a)
b)
c)
d)
e)
f)
Correct!See Asian Capitalism pages 112 to 116.Your answer has been saved.
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43

The acronym FDI is short for:

a)
b)
c)
d)
Correct!See Internationalisation versus globalisation: the role of FDI page 140.Your answer has been saved.
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44

The acronym TNC stands for:

a)
b)
c)
d)
Correct!Pages 141 to 145 cover the TNCs and their effect on the global economy.Your answer has been saved.
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45

The power of FDI has changed over the closing years of the last century leaving:

a)
b)
c)
d)
e)
Correct!Trends in globalisation starts page 148.Your answer has been saved.
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46

The best theoretical attempt to explain FDI is the OLI paradigm which means:

a)
b)
c)
d)
Correct!See Globalisation of the firm page 152.Your answer has been saved.
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47

Three ways of internationalising production are available to a TNC :

a)
b)
c)
d)
Correct!See Globalisation of the Firm pages 152 to 154.Your answer has been saved.
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48

Involvement with a joint venture is popular with foreign investors because:

a)
b)
c)
d)
Correct!Globalisation of the Firm pages 152 to 154.Your answer has been saved.
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49

The emergence of the Japanese and newly industrialised countries caused:

a)
b)
c)
d)
Correct!See pages 154 to 156.Your answer has been saved.
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50

The concept of kaizen is:

a)
b)
c)
d)
Correct!See pages 156 to 158.Your answer has been saved.
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51

The innovation of e-commerce has allowed:

a)
b)
c)
d)
Correct!Global and local markets page 159.Your answer has been saved.
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52

How did the Hoover Corporation show the ability of the TNC to alter their production strategies:

a)
b)
c)
d)
Correct!Review the Transnationality of the firm pages 161 to 163.Your answer has been saved.
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53

Globalisation has brought:

a)
b)
c)
d)
e)
Correct! See the globalisation debate page 163 and 164.Your answer has been saved.
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54

Culture as a barrier to trade can be illustrated by:

a)
b)
c)
d)
Correct!See pages 179 to 187.Your answer has been saved.
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55

The are three broad approaches to integrate ethnic minorities:

a)
b)
c)
d)
Correct!Multicultural Societies page 189 and 190.Your answer has been saved.
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56

The global media companies have found they must:

a)
b)
c)
d)
Correct!

Cultural globalisation: myth or reality starts on page 199.

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57

The research of Hofstede and Trompenaars suggests that:

a)
b)
c)
d)
e)
Correct!Review cultural theories pages 191 to 194.Your answer has been saved.
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58

Characteristics of organizational culture include:

a)
b)
c)
d)
e)
Correct!Organisational behaviour page 195 - 198.Your answer has been saved.
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59

It is noticeable that although national and organisational culture can evolve over time but:

a)
b)
c)
d)
Correct!Review global and national culture, pages 201 and 202. Your answer has been saved.
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60

Identify the elements that are part of a primary group:

a)
b)
c)
d)
e)
Correct!Review Social Groupings page 205.Your answer has been saved.
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61

Stratification of societies have three dimensions:

a)
b)
c)
d)
Correct!See Stratification in Societies pages 208 to 211.Your answer has been saved.
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62

A demographic crisis is being caused in industrialised countries due to:

a)
b)
c)
d)
Correct!See changing populations pages 212 to 220.Your answer has been saved.
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63

What shape best describes the class structures in many developed countries:

a)
b)
c)
d)
Correct! Re-read Social Class pages 209 and 210.Your answer has been saved.
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64

The "push" factors of migration is made up of:

a)
b)
c)
d)
Correct!See International migration page 217.Your answer has been saved.
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65

In the post war economic development France and Germany:

a)
b)
c)
d)
Correct! Recent patterns of migration pages 218 to 220.Your answer has been saved.
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66

Urbanisation is generally associated with:

a)
b)
c)
d)
Correct!See Urbanism pages 221 to 224.Your answer has been saved.
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67

To endeavour to reduce strikes most countries legislate to:

a)
b)
c)
d)
e)
f)
Correct!Labour relations pages 225 to 227.Your answer has been saved.
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68

Men enjoy greater status than women in most societies but in the developed world:

a)
b)
c)
d)
e)
f)
Correct!Review Gender and Work pages 227 to 229.Your answer has been saved.
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69

Patterns of families are changing in the developed economies because:

a)
b)
c)
d)
e)
f)
Correct!Re-read section on Families starting page 230.Your answer has been saved.
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70

Contesting power in society arises from groups or individuals who are motivated by:

a)
b)
c)
d)
Correct!Re-read the section headed the political and civil society: how political factors affect business starting page 235.Your answer has been saved.
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71

The sphere in which citizens pursue their own goals coupled to businesses, trade unions, religious groups and sub-national associations form:

a)
b)
c)
d)
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72

The exercise of power and authority for the group as a whole refers to:

a)
b)
c)
d)
Correct!Re-read the section headed the political and civil society: how political factors affect business starting page 235.Your answer has been saved.
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73

The nation-state defining principles:

a)
b)
c)
d)
Correct!Review the section Nation-states and political framework, starting page 237.Your answer has been saved.
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74

None of the 34 modern African states corresponds to pre-colonial borders which has lead to:

a)
b)
c)
d)
Correct!Review content of Territoriality and the state, commencing page 238.Your answer has been saved.
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75

Internal sovereignty of a state is illustrated by:

a)
b)
c)
d)
Correct!Check the section on Sovereignty on page 240 to 241.Your answer has been saved.
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76

Businesses face political risk wherever they operate but it is generally highest where there is:

a)
b)
c)
d)
Correct!Check out Political Risk and national security, pages 242 to 246. Do note the comments in the summary points page 245.Your answer has been saved.
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77

Ideology as a source of legitimacy in the state is based upon:

a)
b)
c)
d)
Correct!

Details are contained on pages 246 and 247.

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78

Federalism is often seen as advantageous when:

a)
b)
c)
d)
e)
Correct!Clarification is given from pages 250 to 252.Your answer has been saved.
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79

The G8 is made up of:

a)
b)
c)
d)
Correct!Check details in Global politics commencing page 266.Your answer has been saved.
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80

The United Nations Security Council has 5 permanent members with the right of veto. They are the:

a)
b)
c)
d)
Correct!Review Global Politics - the United Nations page 267.Your answer has been saved.
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81

The European Union consists of how many members at the time of publication of this book:

a)
b)
c)
d)
Correct!Check pages 269 - 273.Your answer has been saved.
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82

The European Parliament comprises of members from each state in proportion to the country's population. At the time of this book's publication what is the total membership of the parliament:

a)
b)
c)
d)
Correct!Check pages 269 - 273.Your answer has been saved.
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83

The European Commission has appointees from each member state. The Commission comprises:

a)
b)
c)
d)
Correct!Check pages 269 - 273.Your answer has been saved.
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84

The legal environment is divided into 3 interacting spheres they are:

a)
b)
c)
d)
Correct!Check Introduction page 276.Your answer has been saved.
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85

Law may be broadly classified into 2 categories which are:

a)
b)
c)
d)
Correct!Review how legal systems affect business starting page 277.Your answer has been saved.
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86

The 'burden of proof' is:

a)
b)
c)
d)
Correct!Review how legal systems affect business starting page 277.Your answer has been saved.
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87

When parties for reasons of either expense or time decide to settle out of court the process is known as;

a)
b)
c)
d)
Correct!Review how legal systems affect business starting page 277.Your answer has been saved.
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88

The western world's legal systems can be classified in terms of:

a)
b)
c)
d)
Correct!Read National legal systems starting page 280.Your answer has been saved.
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89

Sharia law prohibits 'unearned profits' so the charging of interest is forbidden Western Banks have overcome this by:

a)
b)
c)
d)
Correct!Read the section entitled Non-Western legal sytems page 285 and 286.Your answer has been saved.
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90

European Union Law-making is divided into two types:

a)
b)
c)
d)
Correct!Read the Legal Framework of the European Union pages 286 and 287Your answer has been saved.
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91

Levels of corruption are higher in certain countries than others. This means investors in those economies are:

a)
b)
c)
d)
Correct!Review the Growing Impact of International Law on Business pages 299 - 301.Your answer has been saved.
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92

David Ricardo (1817) developed the theory of:

a)
b)
c)
d)
Correct!The Theory of Comparative Advantage page 316.Your answer has been saved.
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93

Porter added two additional variables to his theory. They were:

a)
b)
c)
d)
Correct!Porters theory of competitive advantage pages 318 - 322.Your answer has been saved.
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94

Vernon's theory of the international product life cycle shows:

a)
b)
c)
d)
e)
Correct!Review Product Life Cycle theory, pages 323, 324.Your answer has been saved.
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95

Developing countries have adopted protection policies arguing that:

a)
b)
c)
d)
e)
Correct! Trade Policy and national priorities starting page 324.Your answer has been saved.
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96

The traditional tools for controlling trade/protecting markets are:

a)
b)
c)
d)
Correct!Tools of government trade policy starting page 327.Your answer has been saved.
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97

The acronym MFN stands for:

a)
b)
c)
d)
Correct!International regulation of trade pages 330-334.Your answer has been saved.
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98

In the DOHA round of discussion NGOs have caused problems through emphasising:

a)
b)
c)
d)
Correct!Trade liberalisation: the Doha Round pages 334-336.Your answer has been saved.
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99

The growth of Economic Intergration or regionalisation can be seen as:

a)
b)
c)
d)
Correct!See Regionalism pages 337 to 344.Your answer has been saved.
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100

NAFTA stands for:

a)
b)
c)
d)
Correct!Regionalism pages 337 to 344.Your answer has been saved.
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101

The threat to the WTO could be:

a)
b)
c)
d)
Correct!Globalisation and the world trading system page 346.Your answer has been saved.
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102

Innovation is not the same as invention. It means in the broadest sense:

a)
b)
c)
d)
Correct!Concepts and processes pages 351 to 353.Your answer has been saved.
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103

Schumpeter used Kondratieff's waves in his research, how many are there?

a)
b)
c)
d)
Correct! See Technological innovation theories 353/354.Your answer has been saved.
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104

Due to the rate of innovation it is critical that:

a)
b)
c)
d)
Correct!National innovation systems - Education and training pages 354 -359Your answer has been saved.
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105

Amongst OECD countries the resources devoted to R&D whether measured by expenditure or as a percentage of GDP vary considerably. Amongst the eight countries Australia, Finland, Germany, Finland, Spain, Sweden, the UK and USA:

a)
b)
c)
d)
Correct!See Science and technology capabilities, pages 359 and 360.Your answer has been saved.
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106

Where a country specialises in an area of specialisation which has growing global importance:

a)
b)
c)
d)
Correct!Science and technology strengths and weaknesses page 361.Your answer has been saved.
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107

Patents can measure the strength of innovation within an economy. On the basis of the applications to the European Patent Office:

a)
b)
c)
d)
Correct!Review section on patent rights starting page 366 as well as the chart page 368Your answer has been saved.
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108

To obtain a patent you must show that the product or process is:

a)
b)
c)
d)
Correct!Trade-related Aspects of Intellectual Property agreement, pages 369 and 370.Your answer has been saved.
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109

The 60 years since the 2nd World War has seen the emergence of 4 main channels of technology transfer by:

a)
b)
c)
d)
Correct!See Technology transfer, pages 370 to 372.Your answer has been saved.
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110

Some Asian economies have been able to break away from sectors depending on low wage production, developing into car and consumer durables and onto the innovative high level of specialised equipment. Examples are:

a)
b)
c)
d)
Correct! Technology diffusion and innovation, pages 372 and 373.Your answer has been saved.
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111

British, Danish and German consumers were more likely to buy products and services over the internet exceeding what percentage of the population in the 2003 survey:

a)
b)
c)
d)
Correct!Refer to pages 375 to 380, the internet and e-commerce.Your answer has been saved.
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112

The development of biotechnology and GM crops has lead to ethical concerns versus general acceptance:

a)
b)
c)
d)
Correct!Biotechnology, pages 380 to 382.Your answer has been saved.
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113

It has been suggested when looking globally innovation is causing:

a)
b)
c)
d)
Correct!Read page 383.Your answer has been saved.
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114

Cross border capital flows have become more extensive because of:

a)
b)
c)
d)
Correct!See Introduction page 387.Your answer has been saved.
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115

When a company is listed on the stock exchange it is said to have been:

a)
b)
c)
d)
Correct!Review pages 387 to 388, International capital markets.Your answer has been saved.
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116

What does the financial acronym LSE stand for:

a)
b)
c)
d)
Correct!Review Stock Exchanges starting page 388.Your answer has been saved.
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117

Stock exchanges are controlled by national regulation to ensure:

a)
b)
c)
d)
Correct!Review Stock exchanges, page 390.Your answer has been saved.
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118

Eurobonds are created to assist debt financing and are designated in:

a)
b)
c)
d)
Correct!Pages 391 and 391, Bond Markets.Your answer has been saved.
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119

Most stock markets have gone through a period known as the " Big Bang" which was:

a)
b)
c)
d)
Correct!Review Stock exchanges, page 391.Your answer has been saved.
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120

The stages in the determination of exchange rates were:

a)
b)
c)
d)
Correct!See Foreign exchange in the contemporary environment, pages 395 to 397.Your answer has been saved.
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121

The acronym IMF stands for:

a)
b)
c)
d)
Correct!See pages 397 and 398.Your answer has been saved.
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122

The World Bank was created to oversee:

a)
b)
c)
d)
Correct!Summary points page 398.Your answer has been saved.
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123

The Asian Crisis centred on the economies of:

a)
b)
c)
d)
Correct!The Asian financial crisis, pages 401 to 405. Your answer has been saved.
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124

A hostile take over is when:

a)
b)
c)
d)
Correct!See Global Markets for corporate control, pages 406 to 410.Your answer has been saved.
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125

Control is often wanted for cross border takeovers and mergers, but a more liberal attitude has developed. In Hungary in 1996 what was the percentage of foreign investment in manufacturing?

a)
b)
c)
d)
Correct!Regulation and TNC's pages 411 and 412.Your answer has been saved.
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126

Environmental issues are the responsibility of:

a)
b)
c)
d)
Correct! Refer to page 424.Your answer has been saved.
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127

"Environmental degradation" refers specifically to environmental change caused by:

a)
b)
c)
d)
Correct!Environmental degradation, pages 425 and 426.Your answer has been saved.
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128

Whose rejection of the Kyoto Protocol brought doubt into its feasibility?

a)
b)
c)
d)
Correct!Climate change pages 427 to 431Your answer has been saved.
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129

"Transboundary pollution" refers to pollution coming

a)
b)
c)
d)
Correct!See Transboundary pollution & the implications for energy policies, pages 431- 433.Your answer has been saved.
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130

The ability to apportion responsibility and gain compensation is complicated by the fact that:

a)
b)
c)
d)
e)
f)
Correct!See Transboundary pollution & the implications for energy policies, pages 431- 433.Your answer has been saved.
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131

At the UNCED at the Rio Summit in 1992 adopted the concept of "sustainable development". What does the acronym UNCED stand for:

a)
b)
c)
d)
Correct!International legal frameworks, pages 432 to 434.Your answer has been saved.
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132

The concept of sustainable development refers to:

a)
b)
c)
d)
Correct!International legal frameworks, pages 432 to 434.Your answer has been saved.
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133

Green consumerism is about focusing on:

a)
b)
c)
d)
Correct!Green consumerism, pages 442 and 443.Your answer has been saved.
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134

The challenge of sustained economic growth is due to:

a)
b)
c)
d)
Correct!See Environmental protection and changing values, pages 443 and 444.Your answer has been saved.
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135

Companies when using either PEST or SWOT are trying to:

a)
b)
c)
d)
Correct!Review Global and national environments, page 448 and 449.Your answer has been saved.
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136

Globalisation and expansion of TNC's has:

a)
b)
c)
d)
Correct!Review Global and national environments, page 448 and 449.Your answer has been saved.
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137

The transfer of industries and production to emergent economies has resulted in:

a)
b)
c)
d)
Correct!See Change in the business environment pages 449 to451.Your answer has been saved.
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138

Foreign investors have succeeded best when they have:

a)
b)
c)
d)
Correct!See Change in the business environment pages 449 to451.Your answer has been saved.
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139

Since 1980 the "gap" between the advanced countries and the developing countries has:

a)
b)
c)
d)
Correct!See Left Behind? The least developed nations, pages 451 to 460.Your answer has been saved.
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140

The biggest increase in those living on less than a $1 dollar a day between 1990 and 2000 was in:

a)
b)
c)
d)
Correct!See Left Behind? The least developed nations, pages 451 to 460.Your answer has been saved.
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141

The area that has made the most progress in fighting under nourishment through economic growth has been:

a)
b)
c)
d)
Correct!Left Behind? The least developed nations, pages 451 to 460.Your answer has been saved.
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142

Even at discounts of 90% offered by pharmaceutical TNCs the cost of the HIV drugs still represented in the worst affected countries:

a)
b)
c)
d)
Correct!See Left Behind? The least developed nations, pages 451 to 460.Your answer has been saved.
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143

Bridging the 'gap' between rich and poor countries requires rich countries to:

a)
b)
c)
d)
e)
Correct!See Left Behind? The least developed nations, pages 451 to 460Your answer has been saved.
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144

Bridging the 'gap' between rich and poor countries requires poor countries to;

a)
b)
c)
d)
e)
Correct!See Left Behind? The least developed nations, pages 451 to 460.Your answer has been saved.
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145

Social responsibility is reflected by the TNCs by:

a)
b)
c)
d)
Correct!Social responsibility of the firm, pages 460 to 463.Your answer has been saved.
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146

Carroll's pyramid of corporate responsibility has four progressive parts that build on each other. They are in order:

a)
b)
c)
d)
Correct!Theories of corporate social responsibility, pages 463 to 465.Your answer has been saved.
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147

The new information age and the globalised internet has proved that:

a)
b)
c)
d)
Correct!See the challenges of the new information age, pages 468 - 470.Your answer has been saved.
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148

APEC and ASEAN are titles for the following organisations:

a)
b)
c)
d)
Correct!Incorrect!Your answer has been saved.
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149

ECHR, ECJ, ECB, EPO and EU stand for:

a)
b)
c)
d)
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150

ILO, ISO, LDC's, NIEs and NGO stand for

a)
b)
c)
d)
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151

IP, TRIPs, WIPO stand for:

a)
b)
c)
d)
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152

UNICITRAL, UNCTAD, AND UNEP stand for:

a)
b)
c)
d)
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153

OPEC, WTO, GATT, and OECD represent:

a)
b)
c)
d)
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