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Test Bank for The Business Environment Themes and Issues in a Globalizing World, 4e Paul Wetherly, Dorron Otter (All Chapters) 1 / 4
Wetherly and Otter: The Business Environment, 4
th edition
© Oxford University Press, 2018. All rights reserved.
Type: multiple choice question
Title: Chapter 1 - Question 01
01) According to John Kay the profit-seeking paradox is that:
*a. The most profitable companies are not the most profit-oriented Feedback: There is a paradox because it might be expected that the most profit-oriented companies, which pursue profit single-mindedly, would be the most profitable, but Kay says this is not the case. Thus, according to Kay, the goal of making a profit is best approached obliquely or indirectly and might be achieved, for example, by striving for excellence.
Page reference: 17
- The most profitable companies are the most vulnerable to takeover
Feedback: There is a paradox because it might be expected that the most profit-oriented companies, which pursue profit single-mindedly, would be the most profitable, but Kay says this is not the case. Thus, according to Kay, the goal of making a profit is best approached obliquely or indirectly and might be achieved, for example, by striving for excellence.
Page reference: 17
- The most profitable companies give their customers the worst deal
Feedback: There is a paradox because it might be expected that the most profit-oriented companies, which pursue profit single-mindedly, would be the most profitable, but Kay says this is not the case. Thus, according to Kay, the goal of making a profit is best approached obliquely or indirectly and might be achieved, for example, by striving for excellence.
Page reference: 17
- The most profitable companies pay the highest wages to employees
Feedback: There is a paradox because it might be expected that the most profit-oriented companies, which pursue profit single-mindedly, would be the most profitable, but Kay says this is not the case. Thus, according to Kay, the goal of making a profit is best approached obliquely or indirectly and might be achieved, for example, by striving for excellence.
Page reference: 17
Type: multiple choice question
Title: Chapter 1 - Question 02
02) Christine Lagarde is head (in 2018) of which international organization?
- World Bank
Feedback: Christine Lagarde is head of the International Monetary Fund (IMF), which describes itself as ‘an organization of 189 countries, working to foster global monetary co- operation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.’ In 2017 Lagarde called for the benefits of globalization to be distributed more evenly and for national governments to take steps to reduce inequality.
Page reference: 8
*b. International Monetary Fund (IMF) Feedback: Christine Lagarde is head of the International Monetary Fund (IMF), which describes itself as ‘an organization of 189 countries, working to foster global monetary co- operation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.’ In 2017 Lagarde called for the benefits of globalization to be distributed more evenly and for national governments to take steps to reduce inequality.
Page reference: 8
- United Nations
Feedback: Christine Lagarde is head of the International Monetary Fund (IMF), which describes itself as ‘an organization of 189 countries, working to foster global monetary co- operation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.’ In 2017 Lagarde called for the benefits of globalization to be distributed more evenly and for national governments to take steps to reduce inequality.
Page reference: 8
- International Labour Organization (ILO) 2 / 4
Wetherly and Otter: The Business Environment, 4
th edition
© Oxford University Press, 2018. All rights reserved.Feedback: Christine Lagarde is head of the International Monetary Fund (IMF), which describes itself as ‘an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.’ In 2017 Lagarde called for the benefits of globalization to be distributed more evenly and for national governments to take steps to reduce inequality.
Page reference: 8
Type: multiple choice question
Title: Chapter 1 - Question 03
03) The basic economic problem facing society is:
- Inflation
Feedback: Inflation is a persistent problem in market economies but it varies over time and is not the basic economic problem.
Page reference: 10
*b. Scarcity Feedback: The argument is that all societies face scarcity at all times in the sense of having to allocate limited resources between competing wants and needs. However, this view is controversial as it can be argued that in rich economies such as the UK scarcity has been conquered.
Page reference: 10
- Greed
Feedback: Some people argue this is a significant problem in the UK and some other societies, but it is not the basic economic problem.
Page reference: 10
- Pollution
Feedback: Pollution is a prime example of market failure. There is growing awareness of this problem particularly in connection with climate change, but it is not the basic economic problem.
Page reference: 10
Type: multiple choice question
Title: Chapter 1 - Question 04
04) The definition of a stakeholder in a private sector business is:
- Just the owners and managers of the business
Feedback: The answer is ‘Any individual or group that is affected by a decision of the business’.
Page reference: 5
- Just the owners, managers, and employees
Feedback: The answer is ‘Any individual or group that is affected by a decision of the business’.
Page reference: 5
- The owners, managers, employees, and customers
Feedback: The answer is ‘Any individual or group that is affected by a decision of the business’.
Page reference: 5
*d. Any individual or group that is affected by a decision of the business Feedback: Thus stakeholders can be defined very widely to include, in some cases, the whole of society, e.g. in relation to the banking crisis.
Page reference: 5 and 25–6
Type: multiple choice question
Title: Chapter 1 - Question 05
05) Which four economies constitute the BRIC group?
- Bulgaria, Romania, Italy, Cyprus
Feedback: The BRIC economies are Brazil, Russia, India, and China. The term was
introduced by the economist Jim O’Neill in 2001 to draw attention to the importance of these 3 / 4
Wetherly and Otter: The Business Environment, 4
th edition
© Oxford University Press, 2018. All rights reserved.fast-developing economies. By 2017 a group of five BRICS economies also included South Africa.
Page reference: 7
- Brazil, Russia, India, Cuba
Feedback: The BRIC economies are Brazil, Russia, India, and China. The term was
introduced by the economist Jim O’Neill in 2001 to draw attention to the importance of these fast-developing economies. By 2017 a group of five BRICS economies also included South Africa.
Page reference: 7
*c. Brazil, Russia, India, China
Feedback: The BRIC economies are Brazil, Russia, India, and China. The term was
introduced by the economist Jim O’Neill in 2001 to draw attention to the importance of these fast-developing economies. By 2017 a group of five BRICS economies also included South Africa.
Page reference: 7
- Brazil, Russia, Indonesia, China
Feedback: The BRIC economies are Brazil, Russia, India, and China. The term was
introduced by the economist Jim O’Neill in 2001 to draw attention to the importance of these fast-developing economies. By 2017 a group of five BRICS economies also included South Africa.
Page reference: 7
Type: multiple choice question
Title: Chapter 1 - Question 06
06) In the UK the hourly rate below which, by law, pay for employees aged over 25 years
must not be allowed to fall is known as the:
*a. National living wage Feedback: The National Minimum Wage (NMW) was introduced in the UK in 1999 to provide decent minimum standards and fairness for all employees and a ‘level playing field’ for employers. The National Living Wage for employees aged over 25 was introduced in 2016 as, in effect, an enhancement of the NMW. Both the NMW and NLW can be defined in terms of guaranteeing a decency threshold though they are not generally referred to using this term.Jobseeker’s allowance is a benefit paid to the unemployed to help them while they are looking for work.
Page reference: 14
- National minimum wage
Feedback: The National Minimum Wage (NMW) was introduced in the UK in 1999 to provide decent minimum standards and fairness for all employees and a ‘level playing field’ for employers. The National Living Wage for employees aged over 25 was introduced in 2016 as, in effect, an enhancement of the NMW. Both the NMW and NLW can be defined in terms of guaranteeing a decency threshold though they are not generally referred to using this term.Jobseeker’s allowance is a benefit paid to the unemployed to help them while they are looking for work.
Page reference: 14
- Jobseeker’s allowance
Feedback: The National Minimum Wage (NMW) was introduced in the UK in 1999 to provide decent minimum standards and fairness for all employees and a ‘level playing field’ for employers. The National Living Wage for employees aged over 25 was introduced in 2016 as, in effect, an enhancement of the NMW. Both the NMW and NLW can be defined in terms of guaranteeing a decency threshold though they are not generally referred to using this term.Jobseeker’s allowance is a benefit paid to the unemployed to help them while they are looking for work.
Page reference: 14
- Decency threshold
- / 4
Feedback: The National Minimum Wage (NMW) was introduced in the UK in 1999 to provide decent minimum standards and fairness for all employees and a ‘level playing field’ for employers. The National Living Wage for employees aged over 25 was introduced in 2016 as,
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