The reason that companies fail is nearly always a change in

the environment.
False

Managers succeed by focusing on fundamentals and

knowing what's important.
True

The four key elements that make the current business

environment different from the past include globalization,
technological change, the importance of knowledge and
ideas, and collaboration across organizational "boundaries."
True

A global company can be headquartered anywhere, but the

managers all come from the United States.
False

Until recently, the move to globalization was growing very

quickly. Now the change from local to global has leveled off
and countries are pushing back in favor of localization.
False

The external environment includes all relevant forces outside

the organization's boundaries.
True

Strategy is an example of an input to an organization.

False

A firm's competitive environment includes new entrants, as

well as substitutes and complements.
True

An organization's macroenvironment includes its customers

and suppliers.
False

Managers often avoid taking action when faced with

challenges.
True

Managers typically face structured problems they have seen

before, which makes the decision process easier because
there is a procedure to follow already.
False

Reggie is the owner of a new bike shop and must decide how
much to withhold from employee paychecks as income tax.
This is an example of a nonprogrammed decision.

False

Programmed decisions are useful when there is no

predetermined structure on which to rely.
False

Important, difficult decisions tend to be nonprogrammed,

and they demand creative approaches.
True

The basic planning process goes in one direction: into the

future.
False

General decision-making stages and specific formal planning

steps are quite similar.
True

Situational analysis, as part of the formal planning process,

focuses on internal forces at work within the organization
and examines influences from the external environment.
True

Goals should be general rather than specific and should have

a target date for completion.
False

Contingency plans might be called "what if" plans.

True

Ethics is the system of rules that governs the ordering of

values.
True

According to public opinion polls, only about a third of

employees trust their own CEO.
True

Most people have unconscious biases that give others the

benefit of the doubt while simultaneously giving themselves
little credit.
False

Astroturfing is considered a difficult but ethical practice.

False

An ethical issue is a situation, problem, or opportunity in

which an individual is obligated to choose among several
actions that must be evaluated as legal or illegal on the
basis of law.

False

New York Times columnist Thomas Friedman wrote a bestselling book called "The Global Economy Is Flat."
False

Foreign direct investment flows to less developed countries

by firms in developed countries is declining substantially.
False

One consequence of an increasingly integrated global

economy is that imports are penetrating deeper into the
world's largest economies, such as that of the United States.
True

Offshoring occurs when an organization contracts with an

outside provider to produce one or more of an organization's
products or services.
False

North America, South America, and Asia are the three

regions that are most dominant in the global economy.
False

Entrepreneurship occurs when an enterprising individual

pursues a lucrative opportunity.
True

Allegra independently owns and operates Southwest Style, a

small business with about 30 employees. She is happy with
the size of her business, the profits it generates, and also
with the type of products it sells. Allegra's business would be
considered an entrepreneurial venture.
False

There is a difference between a small business and an

entrepreneurship venture.
True

A small business is typically defined as having fewer than 20

employees and being in the first 10 years of its existence.
False

An entrepreneurial venture is a new business having growth

and high profitability as primary objectives.
True

The organization chart depicts the types of products the

company sells and to which customers they are sold.
False

Differentiation means that the organization is composed of

many different units that work on different kinds of tasks,
using different skills and work methods.
True

Integration is achieved through division of labor.

False

The numerous tasks that must be carried out in a large

organization make specialization a necessity.
True

When there are many subunits and many kinds of specialists

who think differently in an organization, differentiation is
high.
True

Organizations are open systems that affect and are affected

by their external environments
true