Which of the Following Is True of the General Environment

question 68

Multiple Choice

Which of the following is true of the general environment?

• A) It contains opportunities and threats that are easier to identify and respond to than those in the task environment.
• B) It comprises the set of forces that originate with global suppliers, distributors, customers, and competitors.
• C) It includes the wide-ranging global, technological, sociocultural, and political forces that affect organizations.
• D) It contains the forces that have the most immediate effect on managers and their decisions.
• E) It contains forces that have very little impact upon the performance of organizations.

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, expressed as a percentage, indicating how much profit a company generates from its total sales.

Quality of Income

A measure of how easily accounting income can be converted to cash, indicating the reliability of earnings.