Bus 100 Ch 5-8 T or F – Flashcards
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False.
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Small businesses account for all non-government employment.
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True.
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Some advantages of sole proprietorship also apply to small business.
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False.
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Economically, the U.S is not concerned with whether or not small businesses make it.
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False.
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The SBA is a private organization.
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False.
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The average length of an SBA loan is about 25 years.
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True.
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A license to operate an individually owned business as though it is part of a chain is a franchise.
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True.
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The purchaser of a franchise is called the franchisee.
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False.
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Franchising is limited to only fast foods.
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False.
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All franchisors give geographical protection to their franchise holders.
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True.
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Small businesses are expected to remain the dominant form of organization in this country.
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True.
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The SBA has defined a small business as one independently owned, operated for profit, and not dominant in its field.
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False.
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The various types of businesses attracting small business are generally grouped into service industries, distribution industries, and financial industries.
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False.
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Small businesses are generally managed by professional managers.
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True.
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Small firms have traditionally added more than their proportional share of new jobs to the economy.
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False.
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SCORE is a group of active business executives offering their services to small businesses for a fee.
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False.
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A small-business investment company (SBIC) is a government agency that provides venture capital to small enterprises.
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False.
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The purchaser of a franchise is called the franchisor.
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False.
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An agreement between two franchisors in which the two franchisors offer their products together is called double franchising.
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True.
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International trade will become more important to small-business owners in the new century.
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True.
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The four basic management functions are planning, organizing, leading and motivating, and controlling.
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False.
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The primary focus functions a manager performs include planning, solving problems, leading and motivating, and controlling.
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True.
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Core competencies of an organization are the aspects that a company performs well.
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True.
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A plan is an outline of the actions by which the organization intends to accomplish its goals and objectives.
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False.
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Top managers probably makeup the largest group of managers in most organizations.
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True.
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Accounting and investments are specialized areas within financial management.
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True.
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Making a successful sales presentation or holding an effective press conference takes quality communication skills.
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False.
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The ability to write and speak effectively within an organization is an example of interpersonal skills.
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True.
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In the entrepreneurial style of leadership in an organization, leaders take responsibility for the success or failure of their firm.
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False.
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Managerial decision making involves a four step process that begins with generating alternatives and ends with selecting an alternative.
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False.
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Management functions occur according to a rigid, preset timetable.
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False.
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As managers carry out their functions, the first step is to control, the second to organize, and the third to plan.
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True.
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An organization 's mission is the means by which it fulfills its purpose.
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False.
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SWOT analysis is the identification and evaluation of a firm's strengths and weaknesses and external opportunities
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True.
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Operational plans aimed at increasing sales would include specific advertising activities.
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False.
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Measuring actual performance is the first step in the control process.
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False.
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Top managers rely on technical skills more than managers at other levels.
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False.
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A democatic leader makes all the decisions and tells subordinates what to do.
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True.
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Brainstorming is a common technique used to generate alternatives in solving problems.
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True.
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Implementation of a decision requires time, planning, preparation of personnel, and evaluation of results.
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True.
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A benefit of specialization is improved efficiency and increased productivity.
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False.
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Job rotation involves assigning an employee more tasks and greater control.
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True.
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The power to make decisions is granted through authority.
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True.
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Accountability is created, not delegated.
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False.
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The span of management should be wide when a great deal of interaction is required between the supervisor and worker.
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True.
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Line positions support staff positions in decision making.
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False.
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Many firms find that by using matrix organiza-tion, the motivation level is lowered, and personal growth of employees is limited.
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False.
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In the mercenary culture, employees work "at" the organization, not "for" it.
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False.
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Creating a culture of trust can lead to decreased productivity and job satisfaction.
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True.
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Ad hoc committees can be used effectively to review a firm's employee benefits plan.
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False.
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Capacity is the degree to which input resources are physically changed by the conversion process.
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True.
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Reshoring is sometimes referred to as onshoring or insourcing.
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False.
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Operations management is the process of creating a set of specifications from which the product can be produced.
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False.
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A purchasing agent need not worry about a tiny difference in price when a large quantity is being bought.
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True.
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A synthetic process combines raw materials or components to create a finished product.
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False.
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When work stations are arranged to match the sequence of operations, a process layout is being used.
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False.
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Work-in-process inventories are raw materials and supplies waiting to be processed.
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True.
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The purpose of research and development is to identify new ideas that have the potential to result in new goods and services.
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False.
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For a food-processing plant such as Kraft Foods, capacity refers to the number of employees working on an assembly line.
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True.
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Labor -intensive technology is accompanied by low initial costs and high operating costs.
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True.
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The ultimate goal of every business firm should be to satisfy the needs of its customers.
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False.
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The term stakeholders refers only to the people who have invested money in a business.
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True.
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Economics is the study of how wealth is created and distributed.
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True.
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A business provides goods and services in exchange for sales revenues.
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True.
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The government uses taxes to purchase resources and products required to provide services.
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False.
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Command economies include capitalism, socialism, and communism.
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False.
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Productivity is the total output per worker per year.
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False.
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Fewer workers producing more goods and services can lead to higher overall employment rates.
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True.
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Inflation is a general rise in the level of prices experienced by people in a nation.
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True.
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Deflation is a general decrease in the level of prices.
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False.
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Capacity is the degree to which input resources are physically changed by the conversion process.
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True.
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Reshoring is sometimes referred to as onshoring or insourcing.
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False.
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Operations management is the process of creating a set of specifications from which the product can be produced.
