Question 1

When comparing small businesses to their larger competitors, it is clear that:

Accepted Answer

small firms often can offer more personalized customer services than big firms.

Question 2

Which of the following U.S. issues does entrepreneurship most directly affect?

Accepted Answer

The ability to create jobs for others

Question 3

One of the hurdles small businesses face when deciding to export is:

Accepted Answer

financing is often difficult to find.

Question 4

Entrepreneurs seeking financial support from bankers and potential investors should:

Accepted Answer

create a detailed business plan to help the bankers and investors understand why this business will succeed.

Question 5

Which of the following sources of investment is the least likely type available to entrepreneurs?

Accepted Answer

Venture capitalists

Question 6

Small businesses must seek advice from outside experts. In order to put together official documents such as leases, contracts, and partnership agreements, it is important to seek the advice of _________.

Accepted Answer

an attorney

Question 7

Business owners who prefer to maintain their businesses at a manageable size are called:

Accepted Answer

micropreneurs

Question 8

Using the analogy of boulders vs. sand for filling a hole, the textbook points out that:

Accepted Answer

small businesses can serve niche markets that larger firms do not serve well.

Question 9

According to SBA guidelines, a manufacturing firm with 1,000 employees:

Accepted Answer

may be classified as a small business depending upon the size of other firms in the industry.

Question 10

Small business employees:

Accepted Answer

often find more job satisfaction than their counterparts in big business.

Question 11

Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in:

Accepted Answer

the manufacturing sector

Question 12

Entrepreneurs applying for a bank loan should realize that bankers will:

Accepted Answer

expect the entrepreneur to provide a business plan.

Question 13

Effective entrepreneurial teams combine:

Accepted Answer

creativity with marketing and production experience.

Question 14

Enterprise zones and investor visas are examples of:

Accepted Answer

government programs that encourage economic growth through entrepreneurship.

Question 15

Intrapreneurs make use of __________ to develop and launch new products and generate new profits.

Accepted Answer

their employer\'s existing human, financial, and physical resources

Question 16

Supervisory managers spend most of their time on:

Accepted Answer

technical and human relations skills.

Question 17

A __________ analysis is used to help companies evaluate their internal strengths and weaknesses, and develop an awareness of external threats and opportunities.

Accepted Answer

SWOT

Question 18

__________ is the art of utilizing organizational resources to accomplish goals at work.

Accepted Answer

Management

Question 19

__________ planning determines the major goals of an organization and lays the foundation for obtaining and using resources to achieve those goals.

Accepted Answer

Strategic

Question 20

__________ planning prepares alternative courses of action that may be used if the primary plans are not achieving objectives.

Accepted Answer

Contingency

Question 21

The __________ style of leadership is characterized by making managerial decisions without consulting others.

Accepted Answer

autocratic

Question 22

In traditional organizations, ____________ involves giving explicit instructions to workers, telling them what to do to meet the goals and objectives of the organization.

Accepted Answer

directing

Question 23

___________ skills involve a manager\'s ability to picture the organization as a whole and the relationship among its various parts.

Accepted Answer

conceptual

Question 24

__________ 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.

Accepted Answer

Controlling

Question 25

As firms make greater use of empowerment and teams, managers will find that they:

Accepted Answer

will need to provide the teams with detailed instructions to give them a clear sense of direction.

Question 26

Which of the following activities is part of the organizing function of management?

Accepted Answer

Giving front-line workers additional resources needed to provide faster and better service to customers

Question 27

Because economic and competitive environments frequently change, organizations should:

Accepted Answer

develop contingency plans.

Question 28

Which of the following goals best describes today\'s view of the organizing function? Organizing today focuses on:

Accepted Answer

designing the organization around the customer.

Question 29

One difference between managers and leaders is that:

Accepted Answer

mangers work to achieve stability while leaders embrace change.

Question 30

The revolution in management that is currently underway suggests that the most effective managers of the future will:

Accepted Answer

emphasize team work.

Question 31

Which of the following is a clear performance standard?

Accepted Answer

Decrease the number of products rejected due to manufacturing defects by 10% over the next 6 months.

Question 32

When managers determine that an organization is not making sufficient progress toward achieving its goals and objectives and they develop corrective measures, they are involved in:

Accepted Answer

controlling

Question 33

Which of the following was created as a solution to the temporary nature of the matrix structure?

Accepted Answer

Cross-functional self-managed teams

Question 34

Which of the following is considered to be an advantage of functional departmentalization?

Accepted Answer

Employee skills can be developed in depth

Question 35

_____________ refers to companies headquartered abroad who elect to bring production and manufacturing to domestic subsidiaries.

Accepted Answer

insourcing

Question 36

Line-and-staff organizations work well in organizations with:

Accepted Answer

a relatively unchanging environment.

Question 37

The ____________ of a business firm is the system that details lines of authority, responsibility, and position, similar to the structure on organization charts.

Accepted Answer

formal organization

Question 38

The line of authority that moves from the top of a hierarchy to the lowest level is called the:

Accepted Answer

chain of command.

Question 39

The optimum number of subordinates a manager can supervise is referred to as the:

Accepted Answer

span of control

Question 40

Cross-functional self-managed teams work best when _______________.

Accepted Answer

leadership is shared

Question 41

Which of the following is true of cross-functional teams?

Accepted Answer

Cross-functional teams work best when the voice of the customer is brought into the organization

Question 42

One advantage of a bureaucratic organization is that:

Accepted Answer

employees know they are expected to follow the rules and regulations.

Question 43

The informal organization of a business is probably best suited to:

Accepted Answer

create a feeling of camaraderie among employees and encourage teamwork.

Question 44

In an inverted organization, the job of management is to:

Accepted Answer

assist and support front-line people.

Question 45

Which of the following statements most closely identifies the problem with adopting Fayol\'s principles of organization design for contemporary businesses?

Accepted Answer

The rule making that developed from these principles created organizations that didn\'t respond quickly to customer needs

Question 46

Which of the following correctly identifies the explanation behind the unity of command principle of management?

Accepted Answer

Workers can become frustrated and confused if they have more than one boss

Question 47

Fayol believed that decision-making authority should remain in the hands of top management:

Accepted Answer

in small organizations, but should be delegated to middle and first-line managers in large organizations.

Question 48

Douglas Pick began making and selling ear plugs out of his home near the University of Southern California. According to the Spotlight on Small Business box titled, \"When Your Workers Work for Someone Else\":

Accepted Answer

When organizing your business, you might creatively consider the outsourcing of certain functions of the business, such as the production function.

Question 49

In the Making Ethical Decisions box, titled, \"Safety versus Profit\", which of the following statements best forms the theme of this passage?

Accepted Answer

The corporate culture you create as you begin your service will last a long time. Your workers will adopt your values.

Question 50

For an inverted organization to be effective, it requires:

Accepted Answer

better educated, better trained, and better paid employees.

Question 51

___________ is a set of international standards for quality management and quality assurance.

Accepted Answer

ISO 9000

Question 52

With the __________ inventory control system, producers hold only the amount of materials and parts that they need for a short period of time - sometimes just a few hours.

Accepted Answer

just-in-time (JIT)

Question 53

In ___________, materials are physically or chemically changed to produce a product.

Accepted Answer

process manufacturing

Question 54

The purpose of a PERT network is:

Accepted Answer

to monitor the progress of a multi-step project during its development.

Question 55

__________ is the physical arrangement of resources in the production process.

Accepted Answer

Facility layout

Question 56

In a PERT network, the sequence of tasks that takes the longest to complete is called the:

Accepted Answer

critical path

Question 57

Production management is the traditional term used to describe all the activities managers do to help their firms create:

Accepted Answer

goods

Question 58

Today manufacturers are relying more heavily on:

Accepted Answer

one or two suppliers because firms share so much information.

Question 59

A big advantage of computer integrated manufacturing software is that it:

Accepted Answer

makes it possible to custom-design products to meet the needs of small markets with very little increase in cost.

Question 60

Reviewing the PERT Network below: If it takes 1, 2, or 3 weeks for each activity (represented by a box) to be completed, the critical path is represented by:

Accepted Answer

the path that begins with \"Start\" continues with one box labeled with No. 2, proceeds with all boxes labeled with No. 3, and concludes with \"Finish\".

Question 61

A just-in-time inventory system usually reduces costs for:

Accepted Answer

the producer, but not its suppliers.

Question 62

Which of the following statements best describes the distinction between production management and operations management? Production management involves:

Accepted Answer

activities managers perform to help create goods while operations management is a broader term that involves the activities involved in producing services as well as goods.

Question 63

A benefit of CAD (Computer Aided Design) and CAM (Computer Assisted Manufacturing) is:

Accepted Answer

it permits customization without a significant increase in price.

Question 64

A basic characteristic of flexible manufacturing is that it:

Accepted Answer

uses machines designed to perform multiple tasks so they can be used to produce a variety of products.

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