Chapter 7. The business environment.

1. The political environment is of particular importance in . Trades. A. Domestic B. International C. Barter D. None of the above. 2. The .. Was set up to promote free trade and resolve disputes between trading partners. A. European union. B. Asian Trade C. Euro Zone D. World Trade Organization.

3. The theory of comparative advantage suggests that free trade is the best way to promote global economic growth and, by implication, domestic prosperity. People should be free to buy and sell goods and services anywhere in the world A. True B. False 4. Retirement ages for men and women are being . In UK. A. Different B. Subject to their health and condition C. Equalized D. None of the above. 5. Organization offer and encourage retirement on the following reasons. State the one incorrect. A. Promotion opportunities for younger workers B. Earlier retirement is an alternative to redundancy C. The age structure of an organization become unbalanced D. The cost of providing pensions rise with age. E. None of the above

6. When an employee leaves the organization it is important to A. To have a farewell party B. To gave him a certification of its work. C. To take advice from his experience D. To take an exit interview to find out the reason of exit. 7. The period of notice required for the employee to leave the job should be set out in the.. A. Notice board of the company. B. Should be on the desire of the worker C. Contract of employment. D. None of the above. 8. The European Union operates a single European market, allowing for the free movement of labor, goods and services,and free competition. A. True B. False.

9. The termination of an employee contract by the employer is not considered as dismissal in UK. A. True B. False.

60 10. is a dismissal when the worker quit the job due to the employer conduct breach the employment contract. A. Redundancy B. Voluntarily dismissal. C. Constructive dismissal D. Arbitrary dismissal. 11. An employee is entitled to a . Of the reasons for dismissal. A. Written statement. B. Oral statement. C. Not entitle D. None of the above. 12. .. Is dismissal that breaches the contract of employment? Or a situation in which anemployee's contract of employment has been terminated by the employer in circumstances where the terminationbreaches one or more terms of the contract of employment A. Arbitrary dismissal B. Redundancy C. Wrongful dismissal D. None of the above. 13. Wrongful dismissal also called wrongful termination or wrongful discharge. A. True B. False. 14. When an employee is dismissed without any fair or justify reason by the employer is called a .. A. Arbitrary dismissal / unfair dismissal. B. Redundancy C. Wrongful dismissal D. None of the above. 15. The purpose of is mainly to provide protection to employees, against unfair treatment orexploitation by employer. A. Exploitation law B. Corporate law C. General laws D. Employment law. 16. When an employer is found guilty of unfair dismissal. He is required to . (Give 2 answers)A. Say sorry to the employee. B. Pay him the substantial compensation C. Re-employ him on the job. D. Fired is fired no need for anything. 17. Redundancy is not an unfair dismissal. A. True B. False.

18. Which of the following case redundancy is not treated as dismissal? A. When the owner has decided to close the company completely. B. When the section in which he employed is closed permanently. C. When due to new technology and equipment or govt. Action work is not required? D. When the employer dismiss without any good reason

61 19. Which of the following case employer is entitled to pay compensation to the employee in the case of redundancy? A. When he has offer suitable transfer and employee reject it without good reason. B. When worker conduct deserve dismissal without notice. Or principle violation of contract. C. When the owner has decided to close the company completely D. The employee is of pensionable age or over, or has less than two years' continuous employment 20. ABC Corporation has decided to dismiss 2 employees out of 6 who are no longer required due to the installation of new computerized machine which will reduce the work. Which if the 2 will be dismissed by the company? A. The most senior 2 of the company as they are near to the age of retirement. B. One from the senior and one from the junior. C. Both from the middle so both junior and senior will protected. D. The most recent hired. 21. . Is required to provide a safe place of work for their employees. A. Supervisor B. Owner / employer C. Government D. Town administration. 22. A safe place of work is where employees are not exposed to unreasonable physical dangers or unreasonable risk of health. A. True B. False. 23. has the ultimate responsibility for health and safety of workers in a limited company. A. C E O B. Directors C. Managers D. Board of Directors. 24. Which of the following is not the duty of an employee? A. Take care of them self and the others close to them B. Allow the employer to carry out his or her duty or enforcing safety rules. C. To handle machines and tools carefully and to do its own work as per rules. D. Inform the managers or owner about possible occurring problems. E. None of the above. 25. Accident should be report on a A. Notice board B. Corner office C. Accident report form D. News paper and magazines.

26. Serious accidents which result in death or major injury or at-least 3 days off work for the victim such all should benotified to the A. Accounts department B. Health and safety executive. C. Company doctor D. Supervisor. 27. .. Is the right of the individual not to suffer unauthorized disclosure of information? A. Privacy B. Secrets C. Safety D. Reporting 28. The data protection act provides protection to the private individuals and companies. A. True B. False. 29. Which of the following are the features of a health and safety policy? Select the incorrect one. A. Statement of principles / Training requirements B. Detail of safety procedures / detailed instructions on how to use equipment C. Compliance with the lawD. None of the above. 30. Computerized data belongs to individuals can be misused and easily be transferred to unauthorized third party athigh speed and low cost. A. True B. False 31. Data about organizations are also come under the classification of personal data. A. True B. False. 32. . Is information about a living individual, including expressions of opinion about him or her. A. Personal data B. Corporate data C. Computerized data. D. Government data. 33. Data protection principles. Personal data shall be accurate and, where necessary, kept up to date. A. True B. False. 34. Which of the following statement about the rights of data subject is not correct? A. In the case of unauthorized disclosure, destruction, or distress caused data subject can claim compensation in the court of law. B. He can ask the court to correct the data belongs to him in case of incorrect. C. Data subject can apply the court to obtain access (mean to view the details) to the data which he or she is subject. D. S(he) can sue the data holder for any damage cause due to his misuse of data causing any damage. E. Data holder can obtain the data and disclose it publicly. 35. Population and labor market. Increasing birth rate mean less labor and falling death rate mean more young people. A. True B. False.

36. Womans are more in work because of. Which of the following statement is incorrect? A. More part time jobs B. Rising male unemployment as many industries which employed men have declined C. The growth of the service sector D. An increase in the average age at which women have children E. None of the above. 37. Information technology makes the information processing work of middle managers redundant (extra). A. True B. False. 38. . Is the contracting out of specified operations or services to an external vendor or service provider. A. Outsourcing. B. Contract. C. SBU D. Decentralization. 39. Which of the following is not a type of outsource? Select the one incorrect. A. Ad-hoc B. Project base management C. Partial / Total D. Standing. 40. . Is an organization that has no physical hub or centre of operation. Its outsource almost all of its workand only few people are in the center to look after the company. A. Centralized Organization B. Decentralization organization C. Virtual organization / Virtual Company. D. Multination organization. 41. The virtual company has been made possible by development in .. A. Bio technology B. EngineeringC. I T Technology. D. Print and electronic media. 42. PANCAT Company was having difficulty in maintaining company accounting record. On an advice they make acontract with MS Hashmi and Sons to prepare and maintain their accounting records on permanent basis. What do wecalled this contract? A. Business deal B. Outsource or Total outsource C. Franchise D. Royalty. 43. One of the advantage of outsourcing is all the confidential information about the company is safe and secured. A. True B. False. 44. If a business organization operates in a market where there are no significant competitors. It is called A. Oligopoly B. Perfect competition C. Monopoly. D. Welfare

45. In a competitive market environment companies charge higher prices and make larger profit then it would in amonopoly. A. True B. False. 46. Which of the following are the five competitive forces influences the state of competition in the industry? State theone incorrect. A. The threat of new entrants to the industry B. The threat of substitute products or services C. The bargaining power of customers D. The bargaining power of suppliers E. The rivalry amongst current competitors in the industry F. None of the above. 47. A new entrant into an industry will . A. Will diversify into other industry and will not make any difference. B. Act and adopt same policies as other do and will have no impact. C. Will have no impact on the capacity and competition D. Will bring extra capacity and competition. 48.Economics of scale means that the companies produce and sell an item in large quantities at low cost by reducingtheir average cost. A. True B. False 49. Which of the following are the barriers of entry in a competitive force into a new industry? A. Economics of scale B. Capital investment requirement. C. Government regulation D. Switching cost. E. All of the above F. None of the above. 50. Which of the below factor is not true in respect of bargaining power of supplier that he can charge high prices of itssupplies? A. Supplier will have a less bargain position if there are more companies to provide material. B. The threat of new supplier enters in the industry or substitute products C. When the switching cost of the user / customer is low. D. The importance of the product to the customer. Mean is it essential to him E. If the customer is totally depended on the supplier. 51. Which of the following about the bargain power of the customer is incorrect? A. How much the customer buys? B. How critical the product is to the customers own business C. Switching costs (i.e. The cost of switching supplier) D. Whether the products are standard items (hence easily copied) or specialized E. If there is a monopoly, customer is in a better position to get product cheaply. 52. . Are the means by which a firm creates value in its products. A. Research B. Development C. Value activities D. Creativity.

53. Porter identified the chain of activities in the primary value chain. Which of the one is incorrect? A. Inbound logistics B. Operations C. Outbound logistics. D. Feed back. E. Marketing, sales and service. D. The bargaining power of suppliers E. The rivalry amongst current competitors in the industry F. None of the above. 54. According to Porter there are three generic strategies for competitive. Which one is false? A. Cost leadership B. Inhibitors. C. Differentiation D. Focus 55. Cost leadership means being the lowest cost producer in the industry as a whole. A. True B. False 56.. Is the exploitation of a product or service which the industry as a whole believes to be unique. A. Differentiation B. Focus C. Cost leadership D. None of the above. 57. Porters generic strategies. Which of the following is corrects in term of focus?1. Providing goods and/or services at lower cost (cost-focus)2. Providing a differentiated product or service (differentiation-focus) A. 1 only B. 2 only C. 1 and 2 D. None 58. Which of the following is not a legitimate method of influencing government policy in the interests of a business? A. Employing lobbyists to put the organizations case to ministers or civil servants B. Giving lawmakers non-executive directorships C. Offering financial incentives to public officials to use their influence on the organizations behalf D. Attempting to influence public opinion, to put pressure on the legislative agenda 59. A . is a tentative government report of a proposal without any commitment to action; the first step inchanging the law A. Red paper B. Yellow Paper C. White paper D. Green Paper. 60. . is an authoritative report or guide that is often oriented toward a particular issue orproblem. They are used to educate readers and help people make decisions, and are often requested and used in politics,policy, business, and technical fields. Green paper is the first step toward its production. A. Red paper B. Yellow Paper C. White paper

D. Green Paper. 61. Ageism, also called age discrimination. A. True. B. False. 62. . is the stereotyping of, prejudice against or discrimination against an individual due to his or herage. Usually this refers to older people, those aged 50 years or older, though it can also related to young professionals,teens and even children A. Ageism. B. Redundancy C. Equalized D. None of the above. 63. There is no such thing as a fixed term contract of employment. A. True. B. False. 64. Under employment protection legislation, the employee has to prove that he has been dismissed. on the other handit is also to the employer to prove that the dismissal was fair. A. True B. False. 65. M.I.K Electronics decide to offer redundancy to 2 of its employees out of 12. Which of the two should they when allof them doing the same work? A. 4 of them having 15 years of service and have excellent record. B. 2 of them are working for last 5 years but can do all sort of work C. 4 of them are woman and working for the last 3 years. D. 2 of them was hired 3 months earlier. 66. Accidents due to the result of statutory duty cannot be sued. A. True. B. False. 67. should be carried out regularly to prevent accidents. A. Internal audit. B. Staff medical checkup. C. Risk audit or sampling D. None of the above. 68. Personal data include all information about deceased people too. A. True. B. False. 69. When company have planned to dismiss few employee. The best option is LIFO or to dismissed the newcomer beforelong serving people. A. True. B. False. 70. Porters Value Chain. Which of the following is not belongs to the support activities of the value chain? A. Firm infrastructure B. H R Management C. Marketing and sales. D. Technology development E. Procurement