The Federal Trade Commission informed Tropicana that it would have to stop advertising that one of the benefits of "heart-healthy" Tropicana orange juice was to lower blood pressure. For Tropicana, this situation was a significant development in the:

a. economic environment.

b. social environment.

c. competitive environment.

d. internal company environment.

e. legal environment.

Answer: e. legal environment.

Many states have appointed or elected commissions that oversee the business practices of utilities and other industries that serve the public interest. For a company operating in one of these industries, dealing with this important state-level regulatory commission is an important element of the:

a. legal environment.

b. social environment.

c. monopoly environment.

d. technological environment.

e. corporate environment.

Answer: a. legal environment.

Chrysler announced that it would begin offering Bluetooth wireless technology as an option in some of its vehicles. The development of Bluetooth is a significant development in the:

a. technological environment.

b. legal environment.

c. corporate environment.

d. social environment.

e. personal environment.

Answer: a. technological environment.

Rising interest rates have slowed the housing market in the United States, slowing business for real estate developers, mortgage lenders, and construction firms. This is a trend in the:

a. competitive environment.

b. technological environment.

c. cultural environment.

d. economic environment.

e. legal environment.

Answer: d. economic environment.