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True or False Quiz
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1

For the typical manager, opportunities and threats which result from changes in the task environment are more difficult to identify than events in the general environment.
A)TRUE
B)FALSE
2

An organizational environment is the set of forces and conditions that operate inside an organization's boundaries that affect a manager's ability to acquire resources.
A)TRUE
B)FALSE
3

A task environment is the set of forces and conditions that originate with suppliers, distributors, customers, and competitors.
A)TRUE
B)FALSE
4

The general environment considers factors such as demographic, political, and legal forces on the organization.
A)TRUE
B)FALSE
5

When new competitors enter an industry, prices in the industry typically increase.
A)TRUE
B)FALSE
6

The higher the barriers to entry in an industry, the greater is the threat of competition.
A)TRUE
B)FALSE
7

Rivalry between companies is potentially the most threatening force with which managers must deal.
A)TRUE
B)FALSE
8

Poor economic conditions make environments more complex, and managers' jobs more difficult and demanding.
A)TRUE
B)FALSE
9

Barriers to entry are illegal.
A)TRUE
B)FALSE
10

Economies of scale are factors that make it difficult and costly for a business to enter an environment.
A)TRUE
B)FALSE
11

Falling trade barriers create opportunities but not threats for organizations.
A)TRUE
B)FALSE
12

A good way for the organization to respond to its changing environment is for the organization to change its structure.
A)TRUE
B)FALSE
13

Forces in an organization's general environment affect the task environment.
A)TRUE
B)FALSE
14

The complexity of the external environment is a function of the age of the organization.
A)TRUE
B)FALSE
15

In general, the larger an organization is, the greater is the number of forces that managers must respond to.
A)TRUE
B)FALSE







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