LOCAL AND INTERNATIONAL BUSINESS ENVIRONMENTS OF FIRMS

1.1.This planning tool highlights more extensively the external environment, like new entrants and the lilike.

A.PEST Analysis

B.SWOT Analysis

C.Hofstede's Cultural Dimension Framework

D.Porter's Five Forces

2.It makes the prices of international goods shoot up due to different levels of taxes and the like.

A.Tax

B. PEST factors

C. Cultural dimensions

D. Trade barriers

3. Which of the following is not a significant factor that caused the globalized business environment?

A Technological advancement

B.Regional economic alliances

C.Free trade agreements

D.Labor law

4. Mayumi Corp. is one of the few manufacturers and sellers of locally sourced, organic, premium cosmetics and skincare products. Their price range can be considered upper-middle to high. Despite the drop in the costs of raw materials, their prices continue to slowly inflate. Which of the following situations might happen?

A.Customers will start choosing more expensive imported products.

B. More brands will enter the local premium cosmetics industry.

C.Suppliers will feel deceived about the profit and cease partnership.

D.Customers will resort to cheaper brands unless prices are adjusted.

5. The Philippines entered into a consensus that seeks to establish a single market and production base with a free flow of goods in the ASEAN region. Which factors of the international business environment would result in this decision?

A economic and sociocultural versus collectivism

B.sociocultural and political

C.technological and environmental

D.political, legal, and economic

PHASES OF ECONOMIC DEVELOPMENT

6. A customer goes to a supermarket and finds varieties of soft drinks, juice, and other beverages from different local brands. This situation shows:

A.Low threat of new entrants

B. Low threat of substitute products

C. High bargaining power of supplier

D. High threat of substitute products

7. Mika is planning to establish a fast-food chain in a Muslim country that restricts the consumption of meat. Because of the religious constraints, she adjusts her offerings based on the characteristics of her target market. Which factor of the international would result in this situation?

A. Political and legal

B Economic

C. Technology

D. Sociocultural

8. Which of the following industries is not considered an industry with a high threat of new entrants?

A Clothing lines

B Food and beverages

C Retail stores

D. Imported electronic products

9. Which of the following situations does not pertain to a political factor?

A.Many investors are not interested in establishing businesses in the Middle East

because of the presence of civil wars and conflict.

B. ASEAN countries agreed to remove trade barriers to imported products.

C. A foreign business must comply with numerous laws and business registration processes before establishing a business here in the Philippines.

D. Before establishing his business, Ecko conducted market research to determine the

characteristics of his target market.

10. Which of the following industries has the most intense rivalry among competitors?

A.Computer

B. Tutorial centers

C. Oil and gas

D. Food and beverages industry

11.Which of the following is NOT one of Rostow's five stages of economic development?

A.Drive to maturity

B Take-off

C.Technological society

D Traditional society

12.Which of Rostow's stages of economic growth is marked by a few key industries driving economic growth?

A Traditional society

B.Take-off

C.Drive to maturity

D.High mass consumption

13.Which of the following is a job from the secondary sector?

A.Manufacturing

B.Mining

C.Fishing

D.Teaching

14.Burundi is one of the leading countries with the highest dependence on the

agricultural economy. The country lacks technological development in its economic processes and trade with other countries. Which stage of Rostow's economic development can the country be classified?

A.High mass consumption

B.Take-off

C.Traditional society

D. Drive to maturity

15. Paulo is the current managing director of an IT shared services company, which provides third-party IT assistance and consultancy in different fields, such as human resources, education, manufacturing, and retail. What type of activities does this company engage in?

A Primary activities

B.Secondary activities

C. Tertiary activities

D. Economic activities

16.For the past few years, Canada shows a notable decrease in the number of people living in rural areas. This is because of the availability of different government programs and investments to improve public infrastructures. What specific economic indicator is seen in this situation?

A.Urbanization

B.Population growth

C.GDP and GNP increase

D.Per capita consumption

17.Suppose that private businesses significantly reduced the country's unemployment rate from 57% to 12% this year. What impact is this intervention likely to have upon the living standards of the country?

A.It will diminish the quality of living standards by slowing economic growth.

B.It is likely to improve the living standards by boosting the buying power of people.

C.It will strengthen the standard of living by making additional products and services.

D.This will not have any impact on the country's living standards.

18. Corporate social responsibility (CSR) is a thoughtful way to give back and help the society where the organization belongs. One CSR strategy is to offer environmental sustainability programs. Why is there a need for companies to implement environmental sustainability programs? Select the best reason below.

A.Businesses will be sued if there's a lack of environmental sustainability programs.

B.If businesses do not commit to executing their activities in a more sustainable and environmentally friendly manner, the supply of necessary raw materials will become less secure.

C.If businesses do not help protect the environment, there will be fewer customers and clients.

D.If businesses engage in these types of companies, they will receive quality awards, such as ISO certifications.

19. Without government intervention, what will potentially happen in the trading inside a market economy?

A There will be a smoother flow of goods and services.

B.Firms will incur lesser costs because they will not pay taxes anymore.

C.Firms will solely dictate the price of goods and services.

D. It will be disadvantageous for the firms because consumers will dictate the price of the product

20. Rostow's Model involves a historical approach explaining how countries have tended to pass the different stages to reach their current economic status. One of the significant factors in this historical approach to development is technology. The following statements agree to the premise that technology aids economic development, except:

A.The rise in technology aids businesses to provide more quality goods and services available for consumption.

B.Heavy reliance on technology creates a workforce with heavy resistance to change.

C.Technological advancement streamlines the operations of the business resulting in lesser operating costs.

D.Technology has a significant effect on businesses and governments' ability to access natural resources that enable international trade.

FORMS OF BUSINESS ORGANIZATION

21.Which of the following is not true about partnership?

A.It is composed of shareholders.

B.Partnership consists of two or more members.

C.Disagreement can be a disadvantage of partnership.

D.Partnership can be limited and general partnership.

22.It means that the personal assets of the owner cannot be claimed by the creditors.

A Transfer of ownership

B.Juridical personality

C.Limited liability

D.Unlimited liability

23.Which of the following is not an advantage of engaging in sole proprietorship?

A.The owners do not have to share profit with other persons.

B.Ease of formation

C.Greater sources of funds

D.Direct control of the business

24. Lito Rosal is a well-known politician in your town. He lends his name to BBK Food Retail Company as one of their partners in the business. However, this partnership with Lito only exists on paper. Its purpose is to improve the credibility of the company during their loan application process in a government bank. Therefore, Lito is a:

A.Nominal partner

B.Capitalist partner

C. Industrial partner

D Real partner

25.Patty owns a management consultancy firm that aims to help start-up companies build their brands and products in the market. What form of business organization is this?

A Service

B.Manufacturing

C Hybrid

D.Merchandising

26. CCL Corporation is mostly composed of members of the Santos clan. The corporation does not accept anyone who wishes to become a shareholder of the

company. This is an example of:

A.Close corporation

B.Government-owned corporation

C.Hybrid business

D.Non-profit corporation

27. Patrick is a teacher in a public school. He is interested in becoming an entrepreneur and has adequate savings for his starting capital or investment. However, he cannot focus on starting and running a business full-time because of his overwhelming job demands. In addition, he does not want to risk his personal assets in engaging in business. What would you recommend to him?

A Resign to his full-time job and establish a corporation.

B Engage in a general partnership.

C.Invest his money in a corporation by buying stock shares.

D Establish a sole proprietorship and hire a manager.

28. Austin and Lea are general partners of GG Water Refilling Services. Their friend, Apple, is a limited partner of the business. After four years of operations, the business has experienced overwhelming financial losses and a huge debt to the different banks and several financial corporations. The company assets are not enough to cover the financial obligations of the company. What is most likely to happen?

A.Creditors will only claim the amount of each partner's investment.

B Austin's and Lea's personal assets will be claimed by the creditors. On the other hand, Apple's assets will be protected from the claims.

C All of the personal assets and properties of all the partners will be claimed by the creditors.

D. Apple's personal assets can be seized against the claims. The personal assets of Leaand Austin will be protected.

29. Park, Lee, and Kim established their car repair business two years ago as a

partnership. All of them are general partners. Park and Lee had a conflict because of disagreement in decisions involving the assets of their business. Park decided to withdraw his engagement to the partnership. What can potentially happen to their partnership agreement?

A Park will be a limited partner. Then, Kim and Lee will become general partners.

B.Their partnership agreement will be dissolved or terminated.

C.All of them will be sued.

D Park's withdrawal will not affect the partnership agreement.

30. Harold,Gloria, and Jack owned the 365 Repair Services as a partnership. Under the terms of their partnership agreement, Harold and Gloria were entitled to 40% of their profits, while the remaining 20% went to Jack.Last month, their business experienced financial loss and debt, and the company still owed its creditors Php 700,000. Since Jack does not have assets, the creditors recovered the total amount owed to him from Harold and Gloria's bank account. What can you infer in this business case?

A Harold and Gloria are general partners. Jack is a limited partner.

B.All of them are general partners.

C.Jack is a nominal partner. Harold and Gloria are real partners.

D. Jack is a general partner. Harold and Gloria are both limited partners.