How is a firm's task environment different from its general environment? Provide examples of both types of environments.
What will be an ideal response?
Student answers will vary. A sample answer follows:
One common approach to understanding how external forces impinge upon a firm is to consider the source or proximity of these forces. For example, external forces in the firm's general environment are ones that managers have little direct influence over, such as macro-economic factors (e.g., interest or currency exchange rates). In contrast, external factors in the firm's task environment are ones that managers do have some influence over, such as the composition of their strategic groups (a set of close rivals, such as McDonald's Corp. and The Wendy's Company) or the structure of the industry.
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On September 1 . 2014, Clownfish Corporation declared and issued a 1 . percent common stock dividend. Prior to this date, Clownfish had 25,000 shares of $2 par value common stock that were both issued and outstanding. The market value of Clownfish' stock was $20 per share at the time the dividend was issued. As a result of this stock dividend, Clownfish' total stockholders' equity
a. decreased by $37,5000. b. decreased by $375,000. c. increased by $375,000. d. did not change.
HP sells an inexpensive printer for an entry-level user, but the printer cartridges that need continual replacement are fairly expensive. This demonstrates the concept of ________.
A. captive pricing B. reference pricing C. product line pricing D. prestige pricing E. price bundling
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 makes it more difficult for debtors to file for bankruptcy and have their unpaid debts discharged
Indicate whether the statement is true or false