business test 2

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A successful web-based strategy that helps a business spread the word about its web site and products is called _____________.
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affiliate marketing
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The goal of an intrapreneur is:
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to develop new products and generate new profits for the corporation.
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Business incubators are usually government-funded facilities intended to:
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offer startup firms low-cost office space and basic business services.
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Successful entrepreneurs are self-nurturing. This means they:
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believe in themselves and their ideas.
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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) _____________.
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micropreneur
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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.
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incubator
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Which of the following statements accurately depicts an advantage that small business has over big business?
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A small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster.
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Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in:
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the manufacturing sector.
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Successful small business owners are:
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valuable sources for information since you can learn from their experiences.
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Small business employees:
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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.
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For a business, catering to the needs of locavores:
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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.
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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
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Microloans are awarded on the basis of the borrowers’ integrity and the soundness of their business ideas.
question

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:
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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.
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Antoine is considering marketing his bicycles in Brazil. If he enters the Brazilian market, he is likely to learn that ___________.
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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.
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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.
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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).
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____________ skills include the ability to perform tasks of a specific department or job, such as selling (marketing) or bookkeeping (accounting).
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Technical
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Leaders
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strive to maintain order and stability.
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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 do—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.
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empowered
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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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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.
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technical
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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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A meaningful mission statement should address topics such as the organization’s:
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self-concept and company philosophy.
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The first step in controlling consists of:
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setting clear performance standards.
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Leadership, coaching, and morale building are all part of a manager’s _________ skills.
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human relations
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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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A basic difference between goals and objectives is that goals are:
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Goals are broad, long-term accomplishments an organization wishes to attain. Objectives are specific, short-term statements detailing how to achieve the goals.
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As firms make greater use of empowerment and teams, managers will find that they:
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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.
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When establishing criteria to measure the success of a customer-oriented business, managers should:
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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

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.
answer

knowledge management
question

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?
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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.
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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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One advantage of a bureaucratic organization is that:
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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.
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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:
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The practices of Patriot Mills reflect Henri Fayol’s principles of unity of command, division of labor, hierarchy of authority, and equity.
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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:
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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.
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An organization with only a few layers of management is known as a(n):
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flat organization.
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Vaughn Studios organizes its operations by activity, such as production, marketing, accounting, and finance. Vaughn utilizes _____________ departmentalization in order to maximize their efficiency:
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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.
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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.
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Centralized authority may be advantageous when the corporation is trying to achieve consistency in its operation and image.
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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.
answer

matrix
question

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

Matrix organizations provide for efficient use of organizational resources.
question

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):
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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

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):
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

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

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 ________________.
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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.
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In recent years, the service sector of the U.S. economy has:
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grown much more rapidly than the manufacturing sector.
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__________ is the operations management planning function that searches for quality material resources, finds the best suppliers, and negotiates the best price.
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purchasing
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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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The resurgence of U.S. manufacturing firms in recent years can be credited to:
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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.
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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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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 _______________.
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Materials Requirement Planning
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A firm would be most likely to employ statistical process control (SPC) if it wanted to:
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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.
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The Deming Cycle is:
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a process for finding potential quality errors before they occur.
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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?
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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.
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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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The first step in the development of a PERT chart is:
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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.
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Operations management is a specialized area in management that converts resources into:
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both goods and services.
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Operations management becomes a(n) ____________ when companies outsource several processes and create a network of firms that cooperatively produce products and services.
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interfirm process
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Maintaining ___________ involves producing what the customer wants while reducing errors before and after delivery to the customer.
answer

quality
question

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:
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Safety needs are the needs people have for security both at work and at home.
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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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Which of the following problems would indicate that a manager failed to apply the basic concepts of expectancy theory?
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.
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Equity theory states that employees will perform well if they:
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believe the reward they receive fairly compensates them for their efforts when compared to others in similar positions.
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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?
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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

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

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:
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Job enlargement is a method of increasing motivation by combining a series of tasks into one job that is more challenging and interesting.
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Even across generations, motivation is likely to:
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come from the job itself.
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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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Rewards that come from someone else in recognition of good work are _________ rewards.
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extrinsic
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According to equity theory, employees are likely to ask:
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If I do a good job, will it be worth it? What is fair?
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As a contemporary manager, your employees will be motivated to provide you with important feedback if:
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Open-ended responses are more effective questioning techniques that motivate employees to respond in thoughtful ways that often result in creative solutions.
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Theory ____ assumes that the average person likes work, and has a relatively high degree of imagination and creativity.
answer

Y
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As a contemporary manager, your employees will perceive that their opinions are more valued if:
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Open communication is enhanced by removing barriers to communication. One way to achieve this is to provide settings where employees and management can enter into verbal exchanges. Communication is also enhanced with the removal of special titles/designations such as Dr., Ms., Mr., and President.
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The theme of the Connecting Through Social Media box titled, “Make the World Your Office” emphasizes ______________.
answer

the communication expectations of today’s workers. They expect to use the same contemporary modes of communication at work that they do in their personal lives “Keeping the Lines Open” reflects today’s communication requirements at work. Employees will be more motivated if they can communicate in real-time and have online interaction with co-workers.

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