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.

Chris wants to open a family-oriented restaurant in a thriving suburban area. Chris thinks a sports-based theme and broad menu will be attractive to the large number of families in the area. However, national chain restaurants, such as Chili's, TGI Friday's, and Applebee's already draw large followings in the area. The existence of these chain restaurants is a significant:

a. competitive rival.

b. monopoly.

c. competitive barrier.

d. opportunity.

e. competitive environment.

Answer: c. competitive barrier.

A moderately-priced jewelry store is trying to differentiate itself from other jewelry stores. The store prices products somewhat lower than the super-premium jewelry stores, but offers better products and services than low-end jewelry stores provide. The market situation this store faces sounds most like:

a. pure competition.

b. monopoly.

c. oligopoly.

d. monopolistic competition.

e. oligopolistic competition

Answer: d. monopolistic competition.