PART 1 BUSINESS IN THE GLOBAL ENVIRONMENT

1. Emerging market refers to:

Any developing country

A fast-growing developing country

Any growing consumer market

China and India

2. In the following list of ways by which governments exert control over businesses, which one is out of place?

Full ownership of a company

Partial stake in a public company

Privatization of a nationalized company

Sovereign wealth fund

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

Operations, Human Resource Management, Accounting

Production, Human Resource Management, Accounting, Marketing, and Research and Development.

Production, Human Resources, Finance, Sales and Marketing, Research and Development.

Operations, Human Resource Management, Accounting, Sales, Research and Development.

4. Over which of the following does the MNE parent company have most control?

An affiliate company

A strategic partner

A subsidiary in which it owns 60% of the shares

A wholly-owned subsidiary

5. Which of the following best describes the role of a companys directors:

They take day-to-day management decisions.

They have ultimate responsibility for how the company is run.

They aim to maximize the wealth of the investors.

They are the companys main investors.

6. To which body within the company is the CEO answerable?

The board of directors

The employees

The shareholders annual general meeting

The companys trade union representatives

7. Which of the following is the least appropriate in describing the ethnocentric organization?

The corporate culture is one of confidence in what the firm stands for.

The staff share corporate values.

The management welcome new ideas from other cultures.

The organization has a strong sense of identity.

8. The PEST analysis is used to represent:

Multiple dimensions of the external environment.

The company's place in the marketplace.

A countrys political and economic environment.

The institutions and processes which determine a countrys level of development.

9. Operations as a function within the company concerns:

Controlling the revenues and outgoings of the business

Making tangible products.

Delivering products to the customer

The whole process of producing and delivering a product, a service, or the combination of both to a customer.

10. In marketing, a distinctive group of consumers is known as:

A selection.

A class.

A segment.

An emerging market.