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TEST I. DIRECTION: TRUE or FALSE.

_______Economic Factors, these factors are not in direct relation with business, but they influence
the investment value in the future.
_______Economic Factors, these impact on the economy and its performance, which in turn directly
impacts on the organization and its profitability.
_______Environment is a commercial enterprise, a company that buys and sells products and/or
services to consumers with the aim of making a profit.
_______External Business Environment refers to the factors within the organization which may
affect, either positively or negatively, the performance of the organization.
_______Firm refers to the factors or elements affecting business organization.
_______Internal Business Environment refers to the forces outside the organization which may
affect, either positively or negatively, the performance of the organization.
_______Legal Factors, these include employment legislation, consumer law, health, and safety,
_______Opportunities refers to the factors that have the potential to harm an organization.
_______Opportunities refers to the internal factors and positive attributes of the business and
organization.
_______Opportunities- this refers to the favorable factors that could give an organization a
competitive advantage.
_______PESTEL Analysis is a framework or tool used to analyze and monitor the external
environmental factors that may have a profound impact on an organization ‘s performance.

_______PESTEL is a framework used to evaluate an organization ‘s competitive position and to

develop strategic planning developed by Jerome McCarthy.
_______Political and Legal Factors are usually bigger picture topics such as tax policy, trade policy,
or foreign trade policy, whereas legal factors tend to be more specific and relate to topics such as
discrimination laws, antitrust laws, or intellectual property laws.
_______Political Factors, these determine the extent to which government and government policy
may impact an organization or a specific industry.
_______Social Factors, these factors focus on the social environment and identify emerging trends.
_______Sociocultural Factors, these are factors consisting of customs, lifestyles, and values that
characterize the society in which the firm operates.
_______Strength refers to the internal factor and positive attributes of the business and
organization.
_______Strength this refers to the favorable factors that could give an organization a competitive
advantage.
_______SWOT is a framework or tool used to analyze and monitor the external environmental
factors that may have a profound impact on an organization ‘s performance.
_______Technological Factors, changing technology may affect the demand for a firm's products
and services, its production processes, and raw materials, may create new opportunities for the firm,
or threaten the survival of a product or industry.
_______Technological Factors, these factors consider the rate of technological innovation and
development that could affect a market or industry.
_______Threat refers to internal factor and are negative factors that detract from your strengths.
_______Threat- this refers to the factors that have the potential to harm an organization.
_______Uncontrollable aspects of the environmental forces are normally the factors that happen
internally or inside the organization.
_______Weakness refers to internal factor and are negative factors that detract from your
international as well as trade regulation and restrictions.
strengths.

_______ Factors refer to the things that happen at the individual company or consumer level. It
does not affect the whole economy. Such as demand, market size, suppliers, supply, and distribution
chain.
_______All are parts of External Business Environment, EXCEPT:
_______All are parts of Internal Business Environment, EXCEPT:
_______Do an internal assessment, seeing where your organization has succeeded and failed in
areas related to your decision.
_______Essentially, rational, or sound, is taken as primary function of management.
_______Factors could include changes in the digital or mobile technology, automation,
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_______Factors include changing family demographics, education levels, cultural trends, attitude
changes and changes in lifestyles.
_______Factors include changing family demographics, education levels, cultural trends, attitude
changes and changes in lifestyles.
_______Factors include employment legislation, consumer law, health, and safety,
_______Factors include interest rates, raw material cost and foreign exchange rates.
_______Factors refer to the things that affect the entire economy. Such as unemployment, inflation,
interest rates, GDP or Gross Domestic Product, taxes, and exchange rates.
_______Factors refer to the things that affect the entire economy. Such as unemployment, inflation,
interest rates, GDP or Gross Domestic Product, taxes, and exchange rates.
_______Factors refer to the things that happen at the individual company or consumer level. It does
not affect the whole economy. Such as demand, market size, suppliers, supply, and distribution chain.
_______It consists of customs, lifestyles, and values that characterize the
_______It Initiates action and it is from here actual work starts. Direction is said to consist of
human factors.
_______It Initiates action and it is from here actual work starts. Direction is said to consist of
human factors.
_______It is a broad, general statement that tells why your organization exists; it usually does not
change from year to year and is often the first statement in your constitution.
_______It is a goal that takes time to achieve.
_______It is a rational and systematic way of making decisions today that will affect the future of
the company.
_______It is a rational and systematic way of making decisions today that will affect the future of
the company.
_______It is a statement describing what your organization wishes to accomplish, stemming from
your purpose.
_______It is often described as single use plans or ongoing plans.
_______It is one of the key aspects of the planning process. Goals must be aggressive, but realistic.
_______It is the function of hiring and retaining a suitable workforce for the enterprise both at
_______It means getting things done through others – individually, in groups, or in organizations.
It provides direction and coordination and was developed by Henri Fayol.
_______It means getting things done through others – individually, in groups, or in organizations.
It provides direction and coordination and was developed by Henri Fayol.
_______It requires a formal structure of authority and the direction and flow of such authority
through which work subdivisions are defined.
_______It requires a formal structure of authority and the direction and flow of such authority
through which work subdivisions are defined.
_______Lifestyles differ as well among different ethnic groups.
_______Potential conflict can be reduced when top management solicits department or division
managers‘ input during the goal setting process.
_______Productivity is maximized and resources are not wasted on projects with little chance of
success.
_______Technology may also cause certain products to be removed from the market.
_______The educational level has also led to increased expectations of workers and has increased
job mobility.
_______The educational level has also led to increased expectations of workers and has increased
job mobility.
_______The introduction of products based on new technology often requires new production
techniques.
_______The scope is less than one year and breaks down the strategic plan into actionable chunks.
_______The scope is less than one year and breaks down the strategic plan into actionable chunks.
_______The scope of planning can be anywhere from the next two years to the next 10 years.
_______The scope of planning can be anywhere from the next two years to the next 10 years.
_______There is usually more than one option to consider when trying to meet a goal (Identify the
alternative)
_______These are clear, specific statements of measurable tasks that will be accomplished as steps
toward reaching your goals.
_______These factors are not in direct relation to business, but they influence the investment value
in the future.
_______These factors are not in direct relation to business, but they influence the investment value
in the future.
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_______These plans are made when something unexpected happens or when something needs to be
changed.
_______This goal is something you want to accomplish soon.
_______This helps the management of the organization to further understand their customer ‘s
needs and wants.
_______This theory is considered very helpful to traders as it predicts fluctuations in international
currency and indicates weakness.
_______This theory is considered very helpful to traders as it predicts fluctuations in international
currency and indicates weakness.
_______This would include political policy and stability as well as trade, fiscal and taxation policies
that the organization needs to consider before they plan and implement actions for their organization
themselves.
_______To decide, you must first identify the problem you need to solve or the question you need to
answer.
international as well as trade regulation and restrictions.
managerial as well as non-managerial levels.
research and development.
society in which the firm operates.

Test IV. ENUMERATION

1-5 Give the Five Primary Function of the Management

6-10 Give the Elements of Directing

11-14 Give the Types of Planning

15-19 Give the Importance of Planning

20-22 Give the Three Levels of Organizational Priorities

23-25 Give the Three Different Levels of Planning in The Firm