Question 1

A successful web-based strategy that helps a business spread the word about its web site and products is called _____________.

Accepted Answer

affiliate marketing

Question 2

The goal of an intrapreneur is:

Accepted Answer

to develop new products and generate new profits for the corporation.

Question 3

Business incubators are usually government-funded facilities intended to:

Accepted Answer

offer startup firms low-cost office space and basic business services.

Question 4

Successful entrepreneurs are self-nurturing. This means they:

Accepted Answer

believe in themselves and their ideas.

Question 5

Pete inherited a thriving dry cleaning business from his father and mother. He continued the tradition of offering quality service to the customers he served. As the surrounding towns expanded, several people suggested that Pete expand the business to offer service in new locations. He chose to maintain only one operation, so as not to lose control and to keep his work life and home life balanced. Pete is a good example of a(n) _____________.

Accepted Answer

micropreneur

Question 6

Located on Monsanto\'s world headquarters campus, the Nidus Center is a unique ___________ facility. The tenants are biotechnology companies who are at various stages of product development. The agricultural giant, Monsanto, the Danforth Foundation, Washington University St. Louis, St. Louis University, and several venture capital firms contribute seed money for these small start-up ventures that receive approval to further develop their ideas at the Nidus Center.

Accepted Answer

incubator

Question 7

Which of the following statements accurately depicts an advantage that small business has over big business?

Accepted Answer

A small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster.

Question 8

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 9

Successful small business owners are:

Accepted Answer

valuable sources for information since you can learn from their experiences.

Question 10

Small business employees:

Accepted Answer

Employees in small businesses are often more satisfied with their jobs than their counterparts in big business because their jobs are more challenging, their ideas are more accepted, and their bosses are more respectful.

Question 11

For a business, catering to the needs of locavores:

Accepted Answer

Going local isn\'t easy. Foods that are plentiful in some areas can be unavailable in others, which can create trouble in planning menus or stocking shelves.

Question 12

Samantha recently applied for a microloan from the SBA. Although several criteria are important, the Small Business Administration\'s decision to grant or deny the loan will largely depend upon

Accepted Answer

Microloans are awarded on the basis of the borrowers\' integrity and the soundness of their business ideas.

Question 13

Ben got a phone call from one of his regular customers asking if he had time to repair a couple of broken sprinkler heads on the customer\'s underground sprinkling system. Although it was already 6:00 p.m. and Ben had put in a full day of work, he turned his car around and headed for the customer\'s house. As a small business owner, Ben demonstrates:

Accepted Answer

Small businesses have the ability to know their customers better and adapt quickly to their every-changing needs. Customers will appreciate the prompt service that a small business can provide.

Question 14

Antoine is considering marketing his bicycles in Brazil. If he enters the Brazilian market, he is likely to learn that ___________.

Accepted Answer

Although some foreign buyers may prefer doing business with major corporations, many actually enjoy dealing with individuals rather than with big corporate bureaucracies. Moreover, foreign buyers may appreciate the fact that the smaller firms often provide personalized service and may be able to begin shipping more quickly. The main problem he will face is adapting to the cultural differences between the U.S. and Brazil.

Question 15

Peppy Roaney believes that pizza is a much more versatile dish than most people realize. As the national marketing manager for Pizza Guys, he observed how consumers were delighted with barbecue pizza, Hawaiian pizza, Mexican pizza and other unique combinations. His suggestions for other unusual pizzas, however, were met with a negative response by his superiors. Even some of his colleagues laughed at his ideas. Peppy\'s confidence in his ability to understand the market has led him to focus on planning a business of his own. Peppy realizes that he will take a risk when he leaves his job with Pizza Guys and embarks upon a new venture: Peppy\'s Pizzazzeria. Peppy is excited about the potential of profitably catering to the unmet desires of pizza consumers.

Accepted Answer

The easiest businesses to start (like restaurants) have the greatest potential for failure. The easiest to keep alive are difficult to get started (like manufacturing).

Question 16

____________ skills include the ability to perform tasks of a specific department or job, such as selling (marketing) or bookkeeping (accounting).

Accepted Answer

Technical

Question 17

Leaders

Accepted Answer

strive to maintain order and stability.

Question 18

When we think of successful music entertainment groups of the past sixty years, the Beatlesâ¢ almost always appear in the top 5! In the early days, the entertainment group\'s life cycle could have ended as so many other rock groups doâhere today, gone tomorrow. The four musicians were definitely creative and passionate about their craft and genre of music. As the informal leader of the group, John Lennon _____________ the others to make important compositional contributions. All four members had the opportunity to create musical compositions and receive copyright credit for their contributions.

Accepted Answer

empowered

Question 19

Managers who listen to their subordinates and allow them to participate in decision-making are using the ____________ style of leadership.

Accepted Answer

participative

Question 20

By completing the courses needed to obtain a college major in accounting, marketing, or some other field, a student can go a long way toward acquiring the _________ skills managers need to rise through the ranks of their area of specialization.

Accepted Answer

technical

Question 21

Today\'s progressive managers:

Accepted Answer

emphasize teamwork and cooperation rather than discipline and order-giving.

Question 22

A meaningful mission statement should address topics such as the organization\'s:

Accepted Answer

self-concept and company philosophy.

Question 23

The first step in controlling consists of:

Accepted Answer

setting clear performance standards.

Question 24

Leadership, coaching, and morale building are all part of a manager\'s _________ skills.

Accepted Answer

human relations

Question 25

_____________ means giving employees the authority and responsibility to respond quickly to customer requests.

Accepted Answer

Empowerment

Question 26

A basic difference between goals and objectives is that goals are:

Accepted Answer

Goals are broad, long-term accomplishments an organization wishes to attain. Objectives are specific, short-term statements detailing how to achieve the goals.

Question 27

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

Accepted Answer

Empowerment means giving workers the authority and responsibility to respond quickly to customer requests. For empowerment to work, employees must be given the knowledge, tools, and freedom to make decisions without waiting for approval from their manager. Thus, a manager in an organization that relies on empowerment must be more like a coach and counselor than a boss or director who tells the workers exactly what to do.

Question 28

When establishing criteria to measure the success of a customer-oriented business, managers should:

Accepted Answer

Financial measures of success, such as profit and return on investment, are important and should not be ignored. In fact, these measures have traditionally been the measures most frequently used to judge success. Today, however, the purpose of a customer-oriented firm is to please all of its stakeholders. Thus, non-financial criteria also play an important role in measuring the success of a firm.

Question 29

Last year, Idle Time Gaming, Inc., experienced one of the most successful introductions of one of its new action videos since the company\'s inception. The CEO announced that sales and profits had exceeded company projections. He attributed the success to a flexible plan, which included good design, accurate product testing, and innovative marketing and sales tactics. In order to have good recall of the procedures that were put in place for this successful introduction, he has charged a team of managers to develop a(n) __________________ system, so the company can avoid \"reinventing the wheel.\" For future introductions, he wants to be able to recall what worked and what didn\'t work.

Accepted Answer

knowledge management

Question 30

As your good friend ponders putting some structure to his/her graphic design business idea, which of the following do you not advise him/her to do?

Accepted Answer

Organizing or structuring the business consists of creating a division of labor, setting up teams or departments to do specific tasks, and assigning responsibility and authority to various employees.

Question 31

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 32

One advantage of a bureaucratic organization is that:

Accepted Answer

Max Weber believed that as organizations grew, it was necessary to define strict rules and guidelines for workers. These rules were created for the purpose of making management\'s job easier. The organization would realize more efficiency.

Question 33

The management at Patriot Mills works hard to ensure that no one in its organization has more than one boss and all workers are treated with fairness and respect. Additionally, the firm divides the work into areas of specialization so that everyone knows to whom they should report. The management of Patriot Mills reflects the ideas and principles of:

Accepted Answer

The practices of Patriot Mills reflect Henri Fayol\'s principles of unity of command, division of labor, hierarchy of authority, and equity.

Question 34

Mike prepared a paper for his class about organizational styles used in business. He found that one reason the traditional bureaucratic style is less popular than in the past is that:

Accepted Answer

Bureaucratic organizations worked well when workers were relatively uneducated and managers were expected to make all the decisions. Today, the workforce is educated and looking to be involved in decision making.

Question 35

An organization with only a few layers of management is known as a(n):

Accepted Answer

flat organization.

Question 36

Vaughn Studios organizes its operations by activity, such as production, marketing, accounting, and finance. Vaughn utilizes _____________ departmentalization in order to maximize their efficiency:

Accepted Answer

Functional departmentalization is the division of the organization into departments based on similar skills, expertise, or resource use. Typical departments would include accounting, marketing, production, and finance.

Question 37

Management at Hottie Potatee, a nationwide potato bar chain, believes that its customers value a predictable and consistent level of service and quality. When customers stop at one of its potato bar chain restaurants anywhere in the United States, they should know what to expect in terms of menu, price and quality. In order to maintain this consistency, Hottie Potatee adopted a(n) ______ structure.

Accepted Answer

Centralized authority may be advantageous when the corporation is trying to achieve consistency in its operation and image.

Question 38

In a _____________ organization, specialists from different parts of the organization are brought together on a temporary basis to work on specific projects.

Accepted Answer

matrix

Question 39

Which of the following is an advantage of a matrix organization structure?

Accepted Answer

Matrix organizations provide for efficient use of organizational resources.

Question 40

The organizational structure of the U.S. Army\'s 1st Infantry Division provides for direct two-way lines of responsibility, authority, and communication running from the top to the bottom. Additionally, each person in the division reports to only one superior. The 1st Infantry Division is clearly an example of a(n):

Accepted Answer

A line organization is characterized by direct two-way lines of authority, responsibility, and communication running from the top to the bottom of the organization. In such an organization, each person reports to only one supervisor.

Question 41

Joe, a production engineer at Freestone Tires recently joined a team of specialists from other areas, such as marketing and finance. His long-term assignment to this team has produced several new products. Joe enjoys this work environment, in part because Freestone\'s management has given the team the freedom and flexibility to make decisions. A recent development is the inclusion of \"outsiders\" from Freestone\'s major distributors and suppliers on the team. It appears that Joe\'s team is a(n):

Accepted Answer

A cross-functional team consists of specialists from different areas who work together on a long-term basis (as opposed to the temporary nature of teams in a matrix organization). These teams can include customers, suppliers, and distributors. When they are empowered to make decisions on their own, they are called self-managed teams.

Question 42

Whirlpond, a manufacturer of home appliances, has historically produced the components for their products. However, Whirlpond now contracts with other firms to produce these components. This strategy of __________ is a current trend among U.S. manufacturers.

Accepted Answer

Outsourcing is the assigning of various functions, such as accounting, production, security, maintenance, and legal work, to outside organizations.

Question 43

Gary was a politically savvy employee who had worked for his company for several years. After several promotions, he emerged as the new president of the company. Grace, a colleague of Gary\'s who reported to him when he was a first-line supervisor, understood how the human side of the organization worked and made certain that she maintained a direct line of communication with Gary at all times. On the company\'s organization chart, Grace maintained a lower level position; however, due to her open line of communication with President Gary, she seemed to successfully push her agenda. The human side of the organization is synonymous with the ________________.

Accepted Answer

The human side of the organization is similar to the informal organization. This is the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside of the formal organization.

Question 44

In recent years, the service sector of the U.S. economy has:

Accepted Answer

grown much more rapidly than the manufacturing sector.

Question 45

__________ is the operations management planning function that searches for quality material resources, finds the best suppliers, and negotiates the best price.

Accepted Answer

purchasing

Question 46

In _________, machines are designed to do multiple tasks so that they can produce a variety of products.

Accepted Answer

flexible manufacturing

Question 47

The resurgence of U.S. manufacturing firms in recent years can be credited to:

Accepted Answer

Pressures from foreign competition forced U.S. manufacturing firms to make several major changes in both production processes and management styles. The text lists seven specific changes: focusing on consumers, maintaining close relationships with suppliers and other companies, practicing continuous improvement, focusing on quality, saving on cost through site selection, relying on the Internet to unite companies, and adopting new manufacturing techniques such as ERP, computer integrated manufacturing, flexible manufacturing, and lean manufacturing.

Question 48

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

Accepted Answer

critical path.

Question 49

The operations planning practice of inputting sales forecasts into computer software that accurately predicts the amount and timing of materials needed to complete products and projects is _______________.

Accepted Answer

Materials Requirement Planning

Question 50

A firm would be most likely to employ statistical process control (SPC) if it wanted to:

Accepted Answer

Statistical process control involves examining samples at each stage of the production process and plotting the results to identify and correct undesirable variances in quality.

Question 51

The Deming Cycle is:

Accepted Answer

a process for finding potential quality errors before they occur.

Question 52

Which of the following would be most helpful to a production manager who wanted to determine the minimum time required to complete a proposed project?

Accepted Answer

PERT, which stands for program evaluation and review technique, is a method of analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.

Question 53

A bar graph that shows what projects or tasks are in process and how much of each is completed is called a(n):

Accepted Answer

Gantt chart.

Question 54

The first step in the development of a PERT chart is:

Accepted Answer

PERT consists of four steps: (1) analyzing and sequencing the tasks that need to be done, (2) estimating the time needed to complete each task, (3) drawing a PERT network to illustrate the information from the first 2 steps, and (4) identifying the critical path.

Question 55

Operations management is a specialized area in management that converts resources into:

Accepted Answer

both goods and services.

Question 56

Operations management becomes a(n) ____________ when companies outsource several processes and create a network of firms that cooperatively produce products and services.

Accepted Answer

interfirm process

Question 57

Maintaining ___________ involves producing what the customer wants while reducing errors before and after delivery to the customer.

Accepted Answer

quality

Question 58

Milo currently has a good job and can afford a decent apartment and plenty of food. Due to significant political unrest and recent street violence in his town, he is considering uprooting himself and applying for a visa to move to another country. According to Maslow, Milo\'s concern reflects a desire to satisfy his:

Accepted Answer

Safety needs are the needs people have for security both at work and at home.

Question 59

_________ theory is based on the idea that managers can use both rewards and punishments to motivate employee behavior.

Accepted Answer

Reinforcement

Question 60

Which of the following problems would indicate that a manager failed to apply the basic concepts of expectancy theory?

Accepted Answer

Expectancy theory is based on the idea that the amount of effort employees will exert to complete a task depends on their expectations about the outcome. Specifically, employees will only commit maximum effort if they believe the reward they will receive is worth the effort they must exert.

Question 61

Equity theory states that employees will perform well if they:

Accepted Answer

believe the reward they receive fairly compensates them for their efforts when compared to others in similar positions.

Question 62

Which of the following would be most closely tied to the idea that employee motivation requires that the rewards for completing a task are sufficient to justify the effort?

Accepted Answer

Expectancy theory maintains that employees consider whether or not the effort needed to complete a task is properly rewarded. If the employee values the reward and considers it adequate, the employee will be motivated to complete the task.

Question 63

Ramona works for a large Denver, Colorado ski equipment warehouse. In the past, her only chance to learn how she was doing on the job came during fairly superficial performance reviews with her boss twice a year. The company recently implemented a policy designed to give Ramona and other employees detailed information about their job performance on a monthly basis. This suggests that the ski equipment retailer now provides Ramona and her co-workers with more:

Accepted Answer

One of the five characteristics of job enrichment is feedback, which means giving employees direct and clear information about their job performance.

Question 64

Until recently, TrueTime International produced personal computers on an assembly line with each worker performing only one simple task. Three months ago, the company began allowing individual employees to assemble entire computers, test all of the components, and even install the software that TrueTime includes with each of its computers. TrueTime\'s new production method is an example of:

Accepted Answer

Job enlargement is a method of increasing motivation by combining a series of tasks into one job that is more challenging and interesting.

business test 2 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards