Intro to Business Ch.6-10 – Flashcards
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Leveling the playing field for home-based businesses, ___________ has (have) made starting a home-based business much more affordable.
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broadband Internet connections and other technologies
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Entrepreneurs seeking financial support from bankers and potential investors should:
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create a detailed business plan to help the bankers and investors understand why this business will succeed.
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Miriam Njunge wants to start a small business importing some products from her native Kenya. Before she starts, some good advice to Miriam would be:
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talk to others who have been or are in the import business
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A market consists of potential buyers of a good or service. However, for a market to exist:
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people must have unsatisfied wants and needs as well as a willingness and ability to buy
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A(n) ________________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product.
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entrepreneurial team
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The primary concerns when first starting your business are:
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financing and planning
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A Small Business Investment Company (SBI is a(n):
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private investment company that is licensed by the SBA to make loans to small businesses
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While on a trip to South Africa, Erin was impressed with colorful woven outdoor placemats, floor mats, chair cushions, and umbrellas that local artisans were weaving. Upon returning to the U.S., she was confident that U.S. consumers would be as intrigued by these accessories as she was. Erin decided to explore the possibility of starting an importing business to bring these products to the U.S. Which of the following statements seems to be good advice for Erin?
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Learn from others who import goods from abroad, and particularly from Africa
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Although the business plan has a great amount of detail and requires thoroughness, a well-explained business idea will come to life almost immediately in which part of this document?
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The executive summary
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State and city governments have promoted facilities where new businesses can open up shop and share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, _______________ continue to grow in popularity.
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incubators
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Andre works for a company that promotes an entrepreneurial culture. Employees are encouraged to discuss new ideas. Development time is provided on the job for those ideas that float to the top. Employees who use their creative talents to generate ideas and create products within large companies are called ________.
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intrapreneurs
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According to SBA guidelines, a manufacturing firm with 1,000 employees:
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may be classified as a small business depending upon the size of other firms in the industry
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Chris is an angel investor. This means that he:
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invests his money in new businesses with potential for growth, hoping for a good return on his investment if they go public
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A __________ is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.
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business plan
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A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:
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venture capitalist
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One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on:
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the value of what the business owns, what it earns, and what makes it unique
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The Small Business Administration defines a small business as a firm that:
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is independently owned but not dominant in its industry
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Which of the following is a false statement about small business?
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The first job for most Americans is unlikely to be in a small business.
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What are the primary sources of funding for entrepreneurs?
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Personal savings and individual investors such as family.
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A business plan for a new business does not need to include:
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the names of the prospective lending companies
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The size of the world market is about:
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7 billion
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A creative person working within a corporation to launch new products and generate new profits is known as a(n):
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intrapreneur
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Reed Hastings created Netflix. His inspiration came from the fact that he had to pay a sizeable late fee for returning a DVD beyond the due date at a rental store. It took a few tries to develop the winning business model. Which statement accurately describes his key to success?
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His idea solved a problem.
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Enterprise zones are:
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Specific locations across the U.S. where entrepreneurs can set up shop and receive tax breaks for operating in these areas.
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Business owners who prefer to maintain their businesses at a manageable size are called:
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micropreneurs
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All managers do planning. Allison is a general manager for a large toy store. Each day she plans the number of employees she will have in each department, including the number of cashiers. She plans the break schedules and the freight delivery schedules. In the business world, we refer to this type of planning as ___________.
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operational planning
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__________ is choosing among two or more alternatives.
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Decision making
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When managers work on creating conditions and systems to ensure that everything and everyone works together to achieve the organization's goals, they are involved in the __________ function of management.
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organizing
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Supervisory managers spend most of their time on:
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technical and human relations skills
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Contemporary managers ___________.
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Emphasize teamwork and cooperation, and act as coaches, rather than bosses.
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___________ are broad, long-term accomplishments an organization wants to achieve.
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Goals
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Today's progressive managers:
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Emphasize teamwork and cooperation rather than discipline and order giving.
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Most businesses follow a logical process when performing the planning function. It is important to understand ______________________, before embarking upon creating future long-term goals, objectives, and strategies.
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the current situation
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__________ planning prepares alternative courses of action that may be used if the primary plans are not achieving objectives.
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Contingency
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Managers who listen to their subordinates and allow them to participate in decision making are using the ____________ style of leadership.
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participative
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___________ is the management function of creating a vision for the organization and guiding, training, coaching, and motivating employees to help achieve the goals and objectives of the organization.
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Leading
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Ben oversaw the work of six pharmaceutical sales managers in the southeast region of the U.S. Each sales manager managed a team of 8-10 pharmaceutical sales representatives that developed relationships with doctors, clinics, hospital pharmacies and local drug stores. Ben met regularly with four others in his company whose jobs were similar to his position. How would you describe the level of management Ben has achieved?
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Middle management
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A traditional tool that serves as a way of evaluating a company's current business situation is called the SWOT Analysis. This is an acronym for ___________.
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Strengths, Weaknesses, Opportunities, Threats
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__________ is the management function that involves allocating resources, assigning tasks, and establishing procedures for accomplishing the organizational objectives.
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Organizing
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The first step in controlling consists of:
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setting clear performance standards
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Select the statement that best substantiates why we say, "The role of management is changing."
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Contemporary managers will focus on global issues and green issues, and continue to emphasize the team approach to work.
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__________ are specific, short-term, measurable results an organization wants to achieve in order to fulfill its long-term goals.
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Objectives
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__________ is a problem solving technique that attempts to come up with as many solutions as possible in a short time without censoring the ideas.
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Brainstorming
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__________ planning determines the major goals of an organization and lays the foundation for obtaining and using resources to achieve those goals.
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Strategic
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_____________ means giving employees the authority and responsibility to respond quickly to customer requests.
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Empowerment
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When a firm makes use of SWOT analysis, one of its objectives is to:
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identify the things it does well as an organization and the things it needs to improve
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__________ is the management function that involves determining whether an organization is progressing toward its goals, rewarding employees for doing a good job, and taking corrective action when they are not.
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Controlling
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Which of the following is involved in setting work standards and schedules needed to implement the firm's tactical objectives?
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Operational planning
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"We believe in creating loyal customers by providing a superior experience at a great value. We are committed to direct relationships, providing the best products and services based on standards-based technology, and outperforming the competition with value and a superior customer experience." This statement is a part of Dell's:
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mission statement
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Which of the following leadership styles focuses on making decisions without consulting others?
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Autocratic
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Technical skills that apply to the business at hand are most often necessary at __________.
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lower levels of management
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__________ is the art of utilizing organizational resources to accomplish goals at work.
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Management
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The management function concerned with anticipating future trends and determining the best strategies to achieve an organization's goals and objectives is known as:
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planning
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Employees often work with managers to develop a(n) __________ that outlines the fundamental purposes of their organization.
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mission statement
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Cara started a small business a little less than 10 years ago. The business employed several social workers and nurses that visited and cared for persons who had left hospital care, but were not quite ready to be on their own at home. As the CEO of the firm, Cara decided it was time to hire a business operations manager and a marketing manager to handle the details of the business. Which of the following functions of management was Cara primarily performing?
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Organizing
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________ refers to the process of dividing organizational functions (sales, production, accounting/bookkeeping) into separate units.
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Departmentalization
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Julie recently started working at a major urban university. One of the first things her supervisor provided her with was a large white notebook that contained rules and regulations on just about every aspect of the university's business. As a recent business graduate, Julie realized that the university operated in a(n) ___________ environment.
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bureaucratic
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The first step in the process of organizing a business is to:
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determine the work that needs to be done
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__________ are responsible for directly achieving organizational goals.
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Line personnel
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The evolving business environment has made ____________ a critical managerial function.
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managing change
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Which of the following describes a temporary networked organization made up of replaceable firms that join and leave as needed?
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Virtual corporation
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In a _____________ organization, specialists from different parts of the organization are brought together on a temporary basis to work on specific projects.
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matrix
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Employees who perform functions that advise and assist line personnel are known as:
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staff personnel
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In a(n) _____________ organization, decision-making authority is concentrated at the top level of management.
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centralized
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______________ organizations are characterized of many layers of management and function with well-defined rules and procedures.
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Bureaucratic
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The concept of ____________ suggests that as a firm produces more, the average cost of goods produced goes down.
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economies of scale
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__________ refer to those functions that an organization does as well as, or better than, any other organization in the world.
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Core competencies
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During the past recession, Cali-Bration Company created a __________ organization, when it restructured and eliminated several middle management positions and broadened the span of control for the remaining managers. As it emerged from the recession, Cali-Bration realized that technology permitted the remaining employees to be just as responsive to customer needs as the firm was prior to restructuring.
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flat
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Transparency refers to ____________.
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The seamless operation of organizational partners, so that each is perceived as an integral part of the operation, and appears to be part of the same company.
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The line of authority that moves from the top of a hierarchy to the lowest level is called the:
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chain of command
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Which of the following would not be used to describe a company with a positive corporate culture?
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Closer supervision of employees.
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Which of the following positions would be classified as a staff position?
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An attorney in the legal department of a manufacturing corporation.
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The ________ an organization's structure, the ________ the span of control.
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flatter; wider
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In order to more quickly respond to customer needs, Hewlett-Packard is changing its organizational structure to give more authority and responsibility to field managers located across the country. These managers spend time with customers and know what the customers need right away. It appears that HP is moving toward a _______________ structure.
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more decentralized
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The process of setting up individual departments to do specialized tasks is called:
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departmentalization
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The process of rating an organization's practices, processes, and products against the best of the world is known as:
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benchmarking
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Fayol's _____________ principle states that each worker should report to one, and only one, boss.
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unity of command
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Division of labor means ___________.
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Tasks are divided into areas of specialization among a group of employees.
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_______________ means that decision-making authority is delegated to lower-level managers and employees.
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Decentralized authority
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Even though he is not a manager, Mr. Bilko is the one to see in the company when there is something you need. He will get it quickly, and can avoid the red tape that often delays action. Mr. Bilko is also the one to see if you need advice or help. Mr. Bilko is an important member of the firm's:
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informal structure
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Production creates:
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form utility
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What statement is most accurate in describing the trend in manufacturing in the United States?
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Manufacturing jobs in the U.S. have declined significantly.
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____________ standards are concerned with the best practices for managing an organization's environmental impacts.
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ISO 14000
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__________ is about converting resources into goods and services. It includes inventory management, quality control, production scheduling, follow-up services and more.
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Operations management
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A major trend in business is _________, where employees work at least part time at home using a computer and modem.
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telecommuting
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The ________ puts together components to make a finished product.
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assembly process
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______________ means tailoring products to meet the needs of a large number of individual customers.
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Mass customization
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New production techniques have:
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Made it possible to custom-make products for individual buyers.
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___________ is a technique to analyze and sequence tasks involved in completing a project, to estimate the time needed to complete each task, and to determine the minimum amount of time needed to complete each project.
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PERT
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In a PERT network, the sequence of tasks that takes the longest to complete is called the:
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critical path
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A(n) __________ puts together components to make a product.
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assembly process
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Unlike an assembly line where workers perform only a few tasks, in a _________ layout, teams of workers combine to perform a variety of tasks needed to produce more complex units of a final product.
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modular
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___________ is a set of international standards for quality management and quality assurance.
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ISO 9000
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A production process characterized by a short production run and frequent adjustments to machines so that different products can be produced is known as a(n):
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intermittent process
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__________ is the specialized area of management that converts or transforms resources into goods and services.
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Operations management
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One strategy U.S. manufacturers have employed in order to become more competitive is:
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Relying on advanced technology and the Internet to unite companies.
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To strengthen its manufacturing base in the future, U.S. will have to:
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continue to innovate
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The Toyota assembly plant in Tennessee purchases several thousand unassembled parts for automobiles and then performs final assembly of the vehicles before delivering them to dealers all over the nation. Purchasing parts several days or weeks before they are assembled would increase the total cash outlay the plant has tied up in inventory at any given time. In order to reduce the expense of large inventories, most assembly plants have successfully adopted ________ inventory systems.
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just-in-time
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In ________, machines are designed to do multiple tasks so that they can produce a variety of products.
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flexible manufacturing
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In __________, materials are physically or chemically changed to produce a product.
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process manufacturing
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Sophisticated software that enables computer-aided design machines to communicate with computer-aided manufacturing machines is called:
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computer-integrated manufacturing
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The goal of lean manufacturing is to:
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Produce goods and services with less of everything that goes into the process.
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Paul works in an auto plant in which parts constantly travel along a conveyor belt and each worker performs his/her specific job. The process Paul is involved with in his business is an example of a(n):
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continuous process
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A bar graph that shows what projects or tasks are in process and how much of each is completed is called a(n):
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Gantt Chart
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Which of the following statements concerning the U.S. service sector today is most accurate?
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This sector has grown much more rapidly than the manufacturing sector.
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The idea of facility layout is to:
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Have offices, machines, and storage areas in the best position to enable workers to produce goods and services for their customers.
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Frederick Taylor believed the best way to improve worker productivity was to:
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Scientifically determine the most efficient way to perform a task and then teach people exactly how to perform it.
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According to Herzberg, which of the following would be considered "motivators"?
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Sense of achievement and opportunity for growth.
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Herzberg's hygiene factors include:
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salary
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_________ blends Japanese and American management practices into a hybrid approach which calls for long-term employment, collective decision making, and individual responsibility for the outcome of decisions.
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Theory Z
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_________ theory is based on the idea that managers can use both rewards and punishments to motivate employee behavior.
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Reinforcement
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Herzberg's research identified several ___________ factors that did not necessarily motivate employees if they were increased, but could cause employees to become dissatisfied if they were missing or inadequate.
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hygiene
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In a high-context culture:
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Relationship building and group trust are considered very important and occur before performing business tasks.
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In accordance with Maslow's way of thinking, if Elizabeth secured a good-paying job that paid her enough to live in a decent apartment and buy an economical car, and if she felt that her work location and her home location were relatively safe places, she would ________.
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turn her focus to the next level of needs: social needs
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Elton Mayo's famous experiment at the Hawthorne Plant concluded ________.
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People who perceive that management permits them to contribute to work decisions might be more productive.
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The personal satisfaction people feel when they have done a job well is a(n) __________ reward.
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intrinsic
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Managers who advocate job enrichment focus on creating jobs with:
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skill variety and autonomy
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According to Herzberg, workers felt that good pay and job security:
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Provided a sense of satisfaction with the job, but did not motivate them.
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The degree to which a job has a substantial impact on the lives or work of others in the organization is referred to as:
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task significance
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Theory ___ managers see employees as having a general dislike for work and an unwillingness to accept responsibility.
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X
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With respect to the development of scientific management, Frederick Taylor's objective was to ________.
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increase productivity at work
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The basic principle of equity theory is that employees try to:
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Maintain equity between inputs and outputs compared to people in similar positions.
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Herzberg found that factors that provided the highest level of motivation were mostly associated with:
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job content
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According to Maslow's theory, when a need is satisfied:
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Another, higher-level need emerges and motivates a person to satisfy that need.
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Theory ____ assumes that the average person likes work, and has a relatively high degree of imagination and creativity.
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Y
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Maslow placed _________ needs at the highest level of his hierarchy.
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self-actualization
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The tendency for people to behave differently when they know they're being studied is referred to as:
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The Hawthorne Effect
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In Maslow's hierarchy of needs, the desire for love and acceptance would fall into the category of:
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social needs
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___________ is the characteristic of work concerned with the degree of freedom, independence and discretion an employee has in scheduling work and determining procedures.
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Autonomy
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Recently Tommy switched jobs from a large firm, to a medium-sized firm. As one of four project managers at the new firm, Tommy recognizes that employees have much more respect for his expertise than he perceived at the larger firm where there were a minimum of 25 project managers. According to Maslow, which need in his hierarchy is important to Tommy?
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esteem
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According to __________ the amount of effort employees devote to a task depends on their expectations of the outcome.
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expectancy theory
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Frank and Lillian Gilbreth thought that every job could be broken down into a series of elementary motions that they called:
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therbligs
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Rewards that come from someone else in recognition of good work are _________ rewards.
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extrinsic