question

what is a business

answer

individual or organization that: satisfy needs, provides goods and/or services, and makes profit. It also provides employment, contributes to standard of living/quality of life, provides invest opportunities, manipulates, narrows definition of quality of life, exploits, pollutes, and influences politics

question

define goods and services

answer

goods: tangible (e.g., car, iPad) services: intangible (e.g., consulting)

question

define revenues, expenses, profit, and loss

answer

revenues: money flowing in expenses: money flowing out profit: revenues > expenses loss: expenses > revenues profits/losses are dynamic

question

what are the three types of businesses?

answer

manufacturing (Toyota), service (Goldman Sachs), and intermediaries (Costco)

question

nonprofit organizations

answer

primary object: make this work a better place. they still need to make money and they are run like businesses

question

businesses use which resources?

answer

land, labor, capital, entrepreneurship, and knowledge

question

what are stakeholders and name them

answer

they are affected by or are part of the business world. customers, owners, employees, suppliers, investors, politicians, media, environment

question

what's government's role in business?

answer

taxes, regulations, laws, establish currency (tradeable), fiscal and monetary policy.

question

standard of living vs quality of life

answer

what do you get for your money vs what is the general well-being of society?

question

define effectiveness, efficiency, and productivity

answer

effectiveness: achieving goal efficiency: achieving goal with minimum sources productivity: quantitative measure relating output to input. technology has led leaps in productivity

question

define e-commerce and what are the two kinds?

answer

conducting commercial transaction over the internet. B2C: business to consumer (e.g., Amazon) B2B: business to business (e.g., supply-chaining)

question

demography

answer

study of population characteristics

question

TRUE OR FALSE: businesses provide goods, jobs, and services to others.

answer

true

question

TRUE OR FALSE: Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable

answer

true

question

TRUE OR FALSE:The only way a firm can increase its profits is to increase its sales revenue.

answer

false

question

TRUE OR FALSE: Tools, machinery, and buildings are examples of capital resources.

answer

true

question

TRUE OR FALSE: The "pay-as-you-go" Social Security system will ensure that the young people of today will have Social Security benefits in the future when they retire.

answer

false

question

TRUE OR FALSE: China and India have become major U.S. competitors.

answer

true

question

TRUE OR FALSE: Over many years the nature of U.S. business has changed very little from century to century.

answer

false

question

__________ is the amount a business earns after deducting what it spends for salaries and other expenses.

answer

profit

question

Which of the following is the best example of a business whose goal is to earn a profit?: A community college The Salvation Army Boy Scouts of America Best Buy, Inc.

answer

Best Buy

question

The resources that contribute to the creation of wealth are known as _______.

answer

factors of production

question

Taxes and government regulations are part of the ________________ environment of business.

answer

economic and legal

question

Efficiency means: producing the desired result. producing goods and services using the least amount of resources. the amount of output you generate given the amount of input. the buying and selling of goods using the most amount of resources.

answer

producing goods and services using the least amount of resources.

question

The statistical study of human population to learn its size, density, and characteristics is called:

answer

demography

question

Businesses that produce and sell tangible products such as steel and machines are part of the: manufacturing industry. knowledge-based industry. service industry. production sector.

answer

manufacturing industry

question

TRUE OR FALSE: The study of how society chooses to employ resources to produce goods and services and to distribute them for consumption among various competing groups and individuals is known as sociology.

answer

false

question

TRUE OR FALSE: Studies about the effects of population growth on the economy are part of macroeconomics.

answer

true

question

TRUE OR FALSE: In capitalist countries, the government decides what to produce and how the goods and services will be produced.

answer

false

question

TRUE OR FALSE: In perfect competition, each firm produces a product that is clearly differentiated from the products of other firms in the same market.

answer

false

question

TRUE OR FALSE: Socialists believe that the primary economic function of the government is to promote rapid economic growth.

answer

false

question

TRUE OR FALSE: In command economies, the government plays a major role in deciding which goods are produced and who will get them.

answer

true

question

TRUE OR FALSE: The total value of a country's output of final goods and services in a given year is known as the gross domestic product (GDP).

answer

true

question

TRUE OR FALSE: Deflation means prices are declining.

answer

true

question

TRUE OR FALSE: Fiscal policy refers to the federal government's efforts to keep the economy stable by controlling the amount of money in circulation.

answer

false

question

____________ looks at the behavior of individual people and organizations in specific markets. Macroeconomics Finite economics Microeconomics Nanoeconomics

answer

microeconomics

question

_________ is the name of a free-market economic system in which most of the factors of production and distribution - such as land, factories, railroads, and stores - are owned by individuals. Socialism Capitalism Communism Marginalism

answer

capitalism

question

A(n) _____________ curve shows the relationship between the price of a good and the quantity of that good people are willing and able to buy in a given time period. demand supply utility equilibrium

answer

demand

question

When the market price of a good is below the equilibrium price, and all other determinants are unchanged: the quantity demanded will exceed the quantity supplied. the supply curve will be to the right of the demand curve. a surplus will exist in the market. the government will regulate the price of the good to ensure equilibrium is attained.

answer

the quantity demanded will exceed the quantity supplied.

question

Today, the economic systems of most nations could most accurately be classified as: Pure capitalism. Pure socialism. Command economies. Mixed economies.

answer

mixed economies

question

Which of the following statements about business cycles in the U.S. is most accurate? Business cycles occur precisely every 5 years. Long term business cycles have only two phases—boom and bust. Seasonal business cycles occur within a year. Business cycles are based on theories.

answer

Seasonal business cycles occur within a year.

question

When the government runs a continual budget deficit, it increases the: National debt. Balance of payments deficit. Federal capital account. Money supply.

answer

national debt

question

what are the major branches of economics and define each

answer

economics: how does a society use and allocate resources to produce and distribute products and services macroeconomics: focus on economy/nation as a whole (e.g., unemployment) microeconomics: focus on individuals and organizations (e.g, supply and demand)

question

define model building

answer

simplified frameworks to understand complex reality (base on assumptions)

question

define econometrics

answer

use statistics to analyze and interpret empirical data

question

who is Thomas Malthus?

answer

he stated that overpopulation will create starvation

question

who is Adam Smith?

answer

he wrote "Wealth of Nations" in 1776. He found Capitalism and promoted free pursuit of self-interest will create and distribute wealth ("Invisible Hand")

question

who is Karl Marx?

answer

wrote "Das Kapital" in 1867, which was the foundation of communism

question

who is John Maynard Keynes?

answer

wrote "The General Theory of Employment, Interest, and Money" in 1936. He stated that the government should stimulate the economy during economic crises

question

who is Milton Friedman?

answer

wrote "A Monetary History of the U.S." in 1963. He stated that the government should stabilize prices but that's it

question

what are the Capitalism's 4 Basic Rights?

answer

1) the right to own private property 2) the right to own a business and keep and the business's profits 3) the right to freedom of competition 4) the right to freedom of choice

question

free markets

answer

-the "market" decides how resources are used and allocated -prices are used to send signals between businesses and consumers

question

define sypply

answer

the quantities of products businesses are willing to sell at different prices

question

define demand

answer

the quantities of products consumers are willing to buy at different prices

question

market price

answer

also known as equilibrium point, where supply and demand curves intersect

question

what are the four degrees of competition

answer

1) perfect (pure competition) 2) monopolistic competition 3) oligopoly 4) monopoly

question

what are the pros and cons of free markets?

answer

pros: wealth creation, innovation, and upward mobility cons: inequality, irresponsible/unethical behavior

question

what is communism?

answer

-government controls factors of production and makes most/all economic decisions. -decisions based on plans fall short -often associated with non-democratic and corrupt political regimes

question

what's socialism?

answer

-crucial industry sectors are under governmental control -entrepreneurship still exists -high taxes redistributes wealth -more socially responsible culture

question

what are the pros and cons of socialism and communism?

answer

pros: social equality, many free services cons: shortages of products, no incentives, brain drain

question

what are the two major economic system and define?

answer

1) free-market economies: market forces determine what's produced and how it is distributed 2) command economies: the government determined what is produced and how it's distributed

question

define GDP

answer

total value of final goods and services produced in a country in a given year

question

define unemployment

answer

the percentage of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks.

question

what are the 4 types of unemployment?

answer

1) frictional 2) structural 3) cyclical 4) seasonal

question

define inflation, deflation, and stagflation

answer

inflation: the general rise in the prices of goods and services over time deflation: prices decline if money supply (demand) shrinks stagflation: economy is slow but prices are going up

question

define CPI

answer

measures inflation/deflation monthly which is measured by the government

question

define business cycles and what are the four phases of long-term business cycles:

answer

period rises and falls that occur in economies over time 1) economic boom 2) recession: two or more consecutive quarters of decline in the GDP 3)depression: a severe recession 4) recovery: economy stabilizes and starts to grow again

question

what are the two key aspects of fiscal policy?

answer

1) taxation 2) government spending

question

define national deficit, debt, and surplus

answer

deficit: (tax) revenues don't cover expenditures debt: accumulation of deficits over time surplus: revenues exceed expenditures

question

define monetary policy

answer

the management of the money supply and interest rates by the Federal Reserve Bank (the Fed)

question

what are the key activities of the Federal Reserve?

answer

setting reserve requirements, setting interest rates, and open-market operations (buying and selling of government bonds

question

TRUE OR FALSE: Importing is the selling of products to another country

answer

false

question

TRUE OR FALSE: with respect to free trade, many U.S. citizens prefer "fair trade, not free trade"

answer

true

question

TRUE OR FALSE: a favorable balance of trade occurs when the value of a country's imports exceeds the value of the exports

answer

false

question

TRUE OR FALSE: the U.S. currently enjoys a favorable balance of trade with the rest of the world

answer

false

question

TRUE OR FALSE: through licensing, domestic firms give foreign manufactures/producers the right to produce their product and use their trademark in exchange for royalities

answer

true

question

TRUE OR FALSE: the disadvantage of creating a foreign subsidiary is the loss of control technology and expertise used in the production pf the product

answer

false

question

TRUE OR FALSE: governments directly participate in global markets through sovereign wealth funds

answer

true

question

TRUE OR FALSE: the complete ban on the sale of Cuban cigars in the U.S. is an example of import quota

answer

false

question

the concept of free trade means: buyers and sellers contract with each other and offer some goods at no cost. goods and services can be traded freely across borders without political and/or economic barriers. there is no exchange of currency for these products. there is no exchange of currency, but the trading partners determine the value of the product and perform a bartering process to exchange goods.

answer

goods and services can be traded freely across borders without political and/or economic barriers.

question

The __________ is the difference between money flowing into a country from exports, and money leaving the country for imports, plus money flows coming from other factors such as tourism, foreign aid, military expenditures, and foreign investment. balance of payments balance of trade surplus balance of cash flows balance of trade

answer

balance of payments

question

When foreign firms build production facilities in the United States, they are engaging in: exporting. foreign direct investment. importing. countertrading.

answer

foreign direct investment

question

Which of the following terms describes the set of values, beliefs, rules, language, and institutions held by a specific group of people? Culture Ethnocentricity Institutional society Social myopia

answer

culture

question

A major force that often impeded global trade occurs when government regulations limit the import of goods and services. We call this: anti-trade concessions. countertrading. de-facto trading. trade protectionism

answer

trade protectionism

question

When studying abroad last year, Blake found that his U.S. dollars did not stretch as far as he had hoped. Each time he exchanged U.S. dollars for euros, he gave up more U.S. dollars in exchange for less euros. The exchange rate indicates: the dollar has gained strength against the euro. the euro is weak against the U.S. dollar. the euro has gained strength against the dollar. the demand for dollars is stronger than the demand for euros.

answer

the euro has gained strength against the dollar.

question

In an effort to protect domestic jobs, some countries will place a limit on the number of certain types of products that can be imported. These limits are called: revenue tariffs. protective tariffs. import quotas. tariffs.

answer

import quotas

question

define importing and exporting

answer

importing: buying products from another country exporting: selling products to other countries

question

define free trade

answer

the movement of products (goods and services) with little or no friction imposed by geography and political borders

question

define global trade

answer

(ideally) makes use of relative efficiency of producing goods and services in different parts of the world

question

what are the non-economic benefits of global trade?

answer

increased literacy, increased life expectancy, and reduced risk of military conflict

question

how to measure global trade? (and define)

answer

balance of trade: the total value of a nation's exports compared to its imports measured over time trade surplus: when the value of a country's exports is more than that of its imports trade deficit: when the value of a country's exports is less than that of its imports

question

what is the balance of payments?

answer

the difference between money coming into a country (from exports) and money leaving the country (from imports) plus other money flows. the goal is to have more money flowing into a country than out - favorable balance. an unfavorable balance is the opposite

question

define dumping

answer

unfair trade practice that means selling products in a foreign country at lower prices than those charged in the producing country.

question

define licensing

answer

when a firm (licensor) provides the right to manufacture its product or use its trademark to a foreign company (licensee) for a fee (royalty). benefits: gaining revenues it wouldn't have otherwise generated and spending little or no money to produce or market their products

question

define franchsing

answer

a contractual agreement whereby someone with a good idea for a business sells others the rights to use the name and sell a product/service in a given area. franchisers need to be careful to adapt their product int the countries they serve

question

define contract manufacturing

answer

a foreign co produces private-label goods to which a domestic co then attaches its own brand name or trademark. a form of outsourcing.

question

define joint venture

answer

a partnership in which two or more companies join to undertake a major project.

question

define strategic alliance

answer

a long-term partnership between two or more companies established to help each co build competitive market advantages

question

define foreign direct investment and foreign subsidiary

answer

foreign direct investment (FDI): the buying of permanent property and businesses in foreign nations foreign subsidiary: a co owned in foreign country by another co called the parent co. (most common form of FDI.

question

define multinational corps

answer

a co that manufactures and markets products in many different countries and has multinational stock ownership and management

question

define sovereign wealth funds (SWFs)

answer

investment funds controlled by governments holding large stakes in foreign companies

question

what forces affect global trade?

answer

-sociocultural -economic and financial -legal and regulatory -physical and environmental

question

define exchange rate

answer

the value of one's nation's currency relative to the currencies of other countries

question

define devaluation and countertrading

answer

devaluation: lowers the value of a nation's currency relative to others countertrading: complex form of bartering in which several countries each trade goods or services for other goods and services

question

define trade protectionism

answer

use of government regulations to limit the import of goods and services.

question

define tariffs. name and define the two types

answer

tariffs: taxes on imports - protective: raise the retail price of imports so domestic goods are competitively priced -revenue: raise money for governments

question

define import quota

answer

limits the number of products in certain categories a nation can import

question

define embargo

answer

a complete ban on the import or export of a certain product or the stopping of all trade with a particular country

question

define world trade organization

answer

headquartered in Geneva, the WTO is an independent entity of 153 member nations whose purpose is to oversee cross-border trade issues and global business practices

question

define general agreement on tariffs and trade

answer

a global forum for reducing trade restrictions on goods, services, ideas, and cultural problems

question

define common market

answer

a regional group of countries with a common external tariff, no internal tariffs and coordinated laws to facilitate exchange among members

question

define North American Free Trade Agreement (NAFTA)

answer

ratified in 1994, created a free-trade area among the U.S., Canada, and Mexico

question

define outsourcing

answer

purchasing goods and services from sources outside a fir, rather than providing them within the co

question

what are ethics?

answer

the standards of moral behavior. behaviors that are accepted by society as right vs. wrong

question

define compliance-based ethics codes

answer

emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers

question

define integrity-based ethics code

answer

define the organization's guiding values, create an environment that supports ethically sound behavior and stress a shared accountability among employees

question

define whistleblowers

answer

people who report illegal or unethical behavior

question

define caveat emptor and caveat venditor

answer

caveat emptor: "let the buyer beware" caveat venditor: "let the seller beware"

question

define corporate social responsibility

answer

the concern businesses have for the welfare of society

question

who are the opponents and the proponents?

answer

opponents: the only responsibility of businesses is to make money (for their owners and shareholders) proponents: businesses operate in a social and physical environment and have the responsibility to be good citizens and stewards

question

define corporate philanthropy and corporate social initiatives

answer

corporate philanthropy: includes charitable donations corportate social initiatives: includes enhanced forms of corporate philanthropy

question

define corporate responsibility and corporate policy

answer

corporate responsibility: includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment corporate policy: the position a firm takes on social and political issues

question

what is the Consumer Bill of Rights

answer

written by John F Kennedy in 1962: -the right to safety -the right to be informed -the right to choose -the right to be heard

question

define insider trader

answer

insiders using private co info to further their own fortunes or those of their family and friends

question

define social audit

answer

a systematic evaluation of an organization's progress toward implementing programs that are socially responsible and responsive

question

what are the four types of sicla audit watchdogs

answer

-socially conscious investors -environmentalists -union officials -customers

question

define proprietorship

answer

a business owned, and usually managed by one person

question

define partnership

answer

two or more people legally agree to become co-owners of a business

question

define corporation

answer

a legal entity with authority to act and have liability apart from its owners

question

major benefits of sole proprietorship

answer

-ease of starting and ending the business -being your own boss -pride of ownership -leaving a legacy -retention of co profit -no special taxes

question

define unlimited liability

answer

any debts of damage incurred by the business are your debts, even if it means selling your home, car, or anything else

question

define general partnership

answer

all owners share in operating the business and in assuming liability for the business's debts

question

define limited partnership

answer

a partnership with one or more general partners and one or more limited partners

question

define master limited partnership

answer

a partnership that looks much like a corp but is taxed like a partnership and thus avoids corp income tax

question

define limited liability partnership

answer

limits partners' risk of losing their personal assets to the outcomes of only their own acts and omissions and those of people under their supervision

question

define general partner

answer

an owner (partner who has unlimited liability and is active in managing the firm

question

define limited partner

answer

an owner who invests money in the business but enjoys limited liability

question

define limited liability

answer

the liability for the debts of the business is limited to the amount the limited partner puts into the co; personal assets are not at risk

question

what are the advantages of partnerships

answer

-more financial resources -shared management and pooled skills and knowledge -longer survival -no special taxes

question

what are the disadvantages of partnerships

answer

-unlimited liability -division of profits -difficult to terminate -disagreements among partners

question

define conventional (C) corp

answer

a state-chartered legal entity with authority to act and have liability separate from its owners (its stockholders)

question

name the advantages of corps

answer

-limited liability -ability to raise more money for investment -size -perpetual life -ease of ownership -ease of attracting talented employees -separation of ownership from management

question

name the disadvantages of corps

answer

-initial costs -extensive paperwork -double taxation -two tax returns -size -difficulty of termination -possible conflict with stockholders and board of directors

question

define s corporation

answer

a unique government creation that looks like a corp but is taxed like sole proprietorships

question

define limited liability co (LLCs)

answer

similar to S corps but without the eligibility requirements

question

what are the advantages of LLCs

answer

-limited liability -choice of taxation -flexible ownership rules -flexible distribution of profit and losses -operating flexibility

question

what are the disadvantages of LLCs

answer

-no stock, therefore the ownership is nontransferable -limited life span -fewer incentives -taxes -paperwork

question

define merger and acquisition

answer

merger: the result of two firms joining to form one co acquisition: one co's purchase of the property and obligations of another co

question

name and define types of mergers

answer

vertical: joins two firms in diff stages of related business horizontal: joins two firms in the same industry and allows them to diversify or expand their products conglomerate: unites firms in completed unrelated industries in order to diversify business operations and investments

question

define leveraged buyout

answer

an attempt by employees, management,or a group of investors to buy out the stockholders in a co

question

define franchise agreement

answer

an arrangement whereby someone with a good idea for a business (franchisor) sells the rights to use the business name and sell a product or service (franchise) to others (franchisees) in a given terrority

question

what are the advantages of franchising

answer

-management and marketing assistance -personal ownership -nationally recognized name -financial advice and assistance -lower failure rate

question

what are the disadvantages of franchising

answer

-large start-up costs -shared profit -management regulation -coattail effects -restrictions on selling -fraudulent franchisors

question

TRUE OR FALSE: The Enron scandal illustrates the difference between unethical behavior and illegal behavior.

answer

false

question

TRUE OR FALSE: An accurate statement regarding this chapter is: "Business law establishes ethical behavior."

answer

false

question

TRUE OR FALSE: Moral behavior refers to behavior that is accepted by society as right versus wrong.

answer

true

question

TRUE OR FALSE: A common form of cheating in schools today is plagiarizing material from the Internet.

answer

true

question

TRUE OR FALSE: When faced with slow sales and low profits, even managers with strong ethical values may feel pressured to compromise those values.

answer

true

question

TRUE OR FALSE: People who report illegal or unethical behavior are called whistleblowers.

answer

true

question

TRUE OR FALSE: Corporate social responsibility refers to the concern businesses have for the welfare of society.

answer

true

question

TRUE OR FALSE: Some experts feel that corporate social responsibility means solely making money for stockholders.

answer

true

question

Which of the following questions can help us avoid a decision that would injure our self-esteem? Is it legal? Is it balanced? How will it make me feel about myself?

answer

"how will it make me feel about myself?"

question

Which of the following is a reason why a business should be managed ethically? It is the right thing to do. Strict global regulations require it. It is the law in the U.S. Employees demand it. How can I avoid taking the blame?

answer

it is the right thing to do

question

A(n) _______ -based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers. legal corporate responsibility compliance integrity

answer

compliance

question

After developing a code of ethics, it should be communicated to: everyone with whom the business has dealings. the Attorney General in jurisdictions where the business has operations. all levels of management. stockholders.

answer

everyone with whom the business has dealings

question

Corporate social responsibility describes the firm's: exclusive responsibility to its stockholders. ability to plan for the unexpected. commitment to a management training program. concern for the welfare of society.

answer

concern for the welfare of society

question

Insider trading involves: an Internet activity that establishes a barter exchange system between businesses. investors using private company information to further their own fortunes. the exchange of assets between companies in the same industry. a payment or reward for socially conscious behavior.

answer

investors using private co info to further their own fortunes

question

The purpose of a(n) ________ is to evaluate an organization's progress towards implementing programs that are socially responsible and responsive. accountability review social audit federal disclosure statement annual report

answer

social audit

question

TRUE OR FALSE: The corporation is the most common form of business ownership.

answer

false

question

TRUE OR FALSE: The three major forms of business ownership in the U.S. are sole proprietorships, partnerships, and corporations.

answer

true

question

TRUE OR FALSE: Once a business is established, it's almost impossible to change from one form of business ownership to another.

answer

false

question

TRUE OR FALSE: A comparison of the three major forms of business ownership shows that sole proprietorships are usually the most difficult type of business to establish.

answer

false

question

TRUE OR FALSE:A general partner takes an active role in the management of the business.

answer

true

question

TRUE OR FALSE: A major objective of limited liability partnerships (LLPs) is to limit each partner's personal liability to the consequences of their own acts and those of people under their supervision.

answer

true

question

TRUE OR FALSE: One method to avoid conflicts between partners is to solicit the services of a lawyer to create a well-written partnership agreement.

answer

true

question

TRUE OR FALSE: Double taxation means that a corporation pays twice the amount of taxes as a sole proprietorship or partnership.

answer

false

question

To many businesspeople, one of the major attractions of a sole proprietorship is: The ability to obtain additional financial resources. The protection of limited liability. An unlimited lifespan. The chance to be their own boss.

answer

the chance to be their own boss

question

A partner (owner) who invests money in a business, does not take an active role in managing the operation, and is only subject to losing the funds he/she invested. Implied partner. Limited partner. Partial partner. Corporate partner.

answer

limited partner

question

A(n) ___________________ is a state-chartered legal entity with authority to act and to have liability separate from its owners. limited partnership conventional corporation unlimited partnership nonprofit organization

answer

conventional corp

question

Earnings of C (conventional) corporations can be: Taxed twice if they are distributed as dividends to stockholders. Taxed at twice the going rate of a partnership or sole proprietorship. Taxed by the federal government, but they are exempt from state taxes if the corporation owns any facilities within that state. Taxed the same as a partnership.

answer

taxed twice if they are distributed as dividends to stockholders

question

When two firms who do not participate in the same industries, for example a software company and a fast food restaurant company decide to merge, the result is called a ____________ merger. vertical horizontal linear conglomerate

answer

conglomerate

question

In a leveraged buyout, the managers of a firm, its employees, or other investors: Move the company elsewhere and start over. Obtain the assets of the company through bankruptcy proceedings. Borrow funds to buy out the firm's stockholders. Negotiate a merger with another firm to create a conglomerate.

answer

borrow funds to buy out the firm's stockholders

question

Franchised businesses are successful (both domestically and internationally) because: They require very little start-up revenue. People prefer the owners and employees of franchised businesses. Laws require franchisors to provide the same level of service to franchisees. Customers like the predictability of the product and/or service.

answer

customers like the predictability of the product and/or service

question

define entrepreneurship

answer

accepting the risk of starting and running a business

question

what are the two main types of new ventures?

answer

lifestyle and growth

question

when and what will an exit look like?

answer

-timeline -IPO (Initial Public Offering) -acquired -merger -handed down to a family member

question

why take the risk?

answer

-opporunity -profit -independence -challenge

question

define entrepreneurial team

answer

a group of experienced of people from different areas of business who join to form a managerial team with the skills to develop, make, and market a new product

question

define intrapreneurs

answer

a create person who works as an entrepreneur within a corp

question

define enterprise zones

answer

specific geographic areas to which governments attract private business investment by offering lower taxes and other government support

question

define incubators

answer

offer new businesses low-cost offices with basic services

question

define business plan

answer

a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and owners qualifications

question

what are the four questions a business plan should answer?

answer

-who are you -what do you do? -who do you do it to? -why should they care to pay attention to you and buy from you

question

define small business

answer

independently owned and operated, not dominant in its field of operation and meets certain standards or size

question

what are the advantages of small over big businesses

answer

-more personal customer service -the ability to respond quickly to opporunities

question

what's the small business administration (SBA)

answer

a U.S. government agency that advises and assists small businesses by providing management training and financial advice

question

define the market

answer

consumers with unsatisfied wants and needs who have both resources and willingness to buy

question

what is management?

answer

the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources

question

define vision

answer

more than a goal, it's a broad explanation of why the organization exists and where its trying to go

question

define mission statement

answer

outlines the organization's fundamental purposes

question

define goals and objectives

answer

goals: the broad, long-term accomplishments an organization wishes to attain objectives: specific, short-term statements detailing how to achieve the organization's goals

question

define SWOT analysis

answer

analyzes the organization's strengths, weaknesses, opportunities, and threats

question

what are the planning functions

answer

strategic planning -> tactical planning -> operational planning -> contingency planning

question

define organizational chart

answer

a visual device that shows relationships among people and divides the organization's work; it shows who reports to whom

question

name and define management levels

answer

top: highest level, includes president, who develop strategic plans middle: include general managers who are responsible for tactical planning and controlling supervisory: those directly responsible for supervising workers and evaluating daily performance

question

name and define top management: C-Level Positions

answer

-chief executive officer (CEO): introduces change into an organization -chief operating officer (COO): implements CEO's changes chief financial officer (CFO): obtains funds, plans budgets, collects funds, etc. -chief information officer (CIO): gets the right information to the right people so decisions can be made

question

name and define managerial skills

answer

-technical skills: ability to perform tasks in a specific discipline -human relations skills: skills that involve communication and motivation; they enable managers to work through and with people conceptual skills: skills that involve the ability to picture the organization as a whole and the relationship among its various parts

question

what are the qualities of a leader

answer

-communicate a vision and rally others around that vision -establish corporate values -promote corporate values -embrace change -stress accountability and responsibility

question

name and define leadership styles

answer

-autocratic leadership: making managerial decisions without consulting others -participative or democratic leadership: managers and employees work together to make decisions -free-rein leadership: managers set objectives and employees and free to do whatever is appropriate to accomplish those objectives

question

define external and internal customers

answer

external: dealers, who buy products to sell to others, and ultimate customer (or end users), who buy products for their own use internal: individuals and units within the firm that receive services from other individuals or units

question

how do you structure an organization?

answer

-create a division of labor -set up teams or departments -allocate resources -assign tasks -establish procedures -adjust to new realities

question

often change in organizations is due to evolving business environments:

answer

-more global competition -declining economy -faster technological change -faster technological change -pressure to protect the environment

question

define hierarchy and chain of command

answer

hierarchy: a system in which one person is at the top of an organization and there is a ranked or sequential ordering from the top down chain of command: the line of authority that moves from the top of the hierarchy to the lowest level

question

define bureaucracy

answer

an organization with many layers of managers who set rules and regulations and oversee all decision

question

define centralized and decentralized authority

answer

centralized: when decision-making is concentrated at the top level of management decentralized: when decision-making is delegated to lower-level managers and employees more familiar with local conditions than headquarters

question

define span of control

answer

the optimal number of subordinates a manager supervises or should supervise

question

define tall and flat orgs.

answer

tall: an org structure in which the org chart would be tall because of the various levels of management flat: an organizational structure that has few layers of management and a broad span of control

question

define departmentalization

answer

divides organizations into separate units

question

what are the four ways to structure an org?

answer

1. line 2. line-and-staff org 3. matrix-style 4. cross-functional self-managed

question

define line organization

answer

has direct two-way lines of responsibility, authority, and communication running from the top to the bottom. everyone reports to one supervisor

question

define line personnel

answer

workers responsible for directly achieving organizational goals, and include production, distribution, and marketing employees

question

define staff personnel

answer

employees who advise and assist line personnel in meeting their goals, and include marketing research, legal advising, IT, and human resource employee

question

define matrix or

answer

specialists from diff parts of the org work together temporarily on specific projects, but still remain part of a line-and-staff structure

question

define benchmarking

answer

compares an org's practices, processes, and products against the world's best

question

define core competences

answer

the functions an organization can do as well as or better than any other org in the world

question

define organizational culture

answer

the widely shared values within an organization that foster unity and cooperation to achieve common goals

question

define formal and informal org

answer

formal: details lines responsibility, authority, and position informal:the system of relationships that develop spontaneously as employees meet and form relationships

question

TRUE OR FALSE: Many business started by entrepreneurs have grown into major corporations employing thousands of workers.

answer

true

question

TRUE OR FALSE: Entrepreneurial teams combine the creative marketing and production ideas of a group of experienced people.

answer

true

question

TRUE OR FALSE: An intrapreneur is the creative person who starts and manages a nonprofit organization.

answer

false

question

TRUE OR FALSE: To be classified as a small business, a firm must have no more than 100 employees.

answer

false

question

TRUE OR FALSE: Getting a business plan into the hands of the right people is nearly as important as getting the right information in the plan.

answer

true

question

TRUE OR FALSE: When writing a business plan, prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

answer

false

question

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. feasibility product marketing plan business plan statement of intent

answer

business plan

question

A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service. market consumer cooperative consumer collective buyer's cooperative

answer

market

question

The executive summary section of the business plan contains: computerized information that readers can access interactively. information that will capture the attention of bankers and other investors who receive many business plans every day. qualifications, experience, and education of the entrepreneur and prospective employees. a financial summary prepared by the business' accountant.

answer

information that will capture the attention of bankers and other

question

After retiring as a telecommunications executive, Chad joined SCORE. As a SCORE counselor Chad will: provide venture capital funds for aspiring small businesspeople. visit high schools to advise students who are thinking about starting their own business. help in the research and development of new products for entrepreneurs to market. provide consulting services to small businesses for free.

answer

provide consulting services to small businesses for free.

question

TRUE OR FALSE: Management is the art of getting things done through organizational resources.

answer

true

question

TRUE OR FALSE: Financing is one of the four key functions of management.

answer

false

question

TRUE OR FALSE: Planning involves setting the organizational vision, goals and objectives.

answer

true

question

TRUE OR FALSE: Conceptual skills refer to the ability of a manager to perform the tasks associated with a specific discipline or department.

answer

false

question

TRUE OR FALSE: Researchers have determined that all effective leaders have similar traits.

answer

false

question

One of the four primary functions of management is: controlling. marketing. financing. designing.

answer

controlling

question

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

answer

SWOT

question

A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom. balance sheet Venn diagram stakeholder outline organization chart

answer

org chart

question

Which of the following persons is most likely to be involved in strategic planning? Chief executive officer Electrical shop supervisor Budget analyst Advertising manager

answer

CEO

question

Well-known retired basketball coach, Bob Knight, was known for his emotional antics at Indiana University and Texas Tech. If you talk with Bob, he believes in total dedication from his team and total compliance to his style of coaching. It's "his way or the highway." Bob typifies the _____________ style of leader. bureaucratic free-rein remanded autocratic

answer

autocratic

question

TRUE OR FALSE: An organization chart shows who is accountable for the completion of specific work and who reports to whom.

answer

true

question

TRUE OR FALSE: Weber believed that large organizations required everyone to follow the established rules and guidelines precisely.

answer

true

question

TRUE OR FALSE: Bureaucratic organizations are not very responsive to customers.

answer

true

question

TRUE OR FALSE: An advantage of decentralized authority is that those individuals closest to the customers and more familiar with local conditions make decisions.

answer

true

question

TRUE OR FALSE: Departmentalization is the dividing of organizational functions into separate units.

answer

true

question

In a(n) _____________ organization, decision-making authority is concentrated at the top level of management. bottom-up decentralized inverted centralized

answer

centralized

question

Which of the following factors help determine a manager's span of control? The number of global competitors The level of standardization of the work to be done Method of accounting for production Form of business ownership

answer

The level of standardization of the work to be done

question

Employees who perform functions that advise and assist line personnel are known as: middle managers. empowered workers. secondary employees. staff personnel.

answer

staff personnel

question

Chang is a project manager at Paradox Industries. He is able to borrow specialists from the organization on a regular basis to assist in major projects. After the project ends, the specialists return to their functional units to await new assignments. Paradox Industries utilizes a: line organization model. bi-functional organization model. lateral transfer organization model. matrix organization model.

answer

matrix organizational model

question

TRUE OR FALSE: Introducing change into an organization is an easy task for a manager.

answer

false

question

define intrinsic rewards

answer

personal satisfaction felt for a job well done

question

define extrinsic

answer

something has been given as recognition of good work

question

define scientific management

answer

studying workers to determine the most efficient ways of doing things and then teaching those techniques

question

what are the key elements to increase productivity

answer

-time -methods of work -rules of work

question

define time-emotion studies

answer

studies which tasts must be performed to complete a job and the time needed to do each task

question

define principle of motion economy

answer

every job can be broken down into a series of elementary motions

question

define hawthorne effect

answer

people act differently when they know they are being studied

question

define Maslow's theory of motivation

answer

based off hierarchy of needs: theory of motivation based on unmet human needs from basic physiological needs to safety, social and esteem needs to self-actualization needs

question

what are Herberg's motivating factors?

answer

-what factors controlled by managers are most effective in increasing worker motivation? -how do workers rank job-related factors in order of importance related to motivation

question

define motivators

answer

job factors that cause employees to be productive and that give them satisfaction

question

define hygiene factors

answer

job factors that can cause dissatisfaction if mission but that do not necessarily motivate employees if increased

question

define Theory X and Theory Y

answer

-Douglas McGregor proposed managers had two different sets of assumptions concerning workers theory X: workers dislike work and seek to avoid it theory Y: people like work; it's part of life

question

define goal-setting theory

answer

setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated

question

define management by objectives (MBO)

answer

involves cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees

question

define expectancy theory

answer

the amount of effort employees exert on a specific task depends on their expectations of the outcome

question

define equity theory

answer

employees try to maintain equity between inputs and outputs compared to others in similar positions

question

define job enrichment

answer

a motivational strategy that emphasizes motivating the worker through the job itself

question

define job enlargment

answer

strategy that involves combining a series of tasks into one challenging and interesting assignmen

question

define job rotation

answer

a job enrichment strategy that involves moving employees from one job to another

question

define human resource management

answer

the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating and scheduling employees to achieve organizational goals

question

define affirmative action and reverse discrimination

answer

affirmative action: policy designed to "right past wrongs" by increasing opportunities reverse discrimination: discrimination against whites or males in hiring or promoting

question

Civil Rights Act of 1991

answer

amended title VII and gave victims of discrimination the right to a jury trial and possible damage

question

what is the Office of Federal Contract Compliance Programs (OFCCP)

answer

ensures that employers doing business with the federal government comply with the nondiscrimination and affirmative action laws

question

define job analysis, job description, and job specifications

answer

job analysis: a study of what employees who holds various job titles do job description: specifies the objectives of the job, the type of work, the responsibilities and duties, working conditions and relationship to other jobs job specifications: a summary of minimal education and skills needed to do a particular job

question

define recruitment

answer

set of activities for obtaining the right number of qualified people at the right time

question

define selection

answer

the process of gathering information and deciding who should be hired, under legal guidelines, to fit needs of the org and individuals

question

define contingent workers

answer

include part-time and temp workers, seasonal workers, independent contractors, interns, and co-op students

question

define training and development

answer

all attempts to improve productivity by increasing an employee's ability to peform

question

define management development

answer

process of training and educating employees to become good managers and tracking the progress of their skills over time

question

define networking

answer

establishing and maintaining contacts with key managers in and out of the org and using those contacts to develop relationships

question

define mentors

answer

managers who supervise, coach and guide selected lower-level employees by acting as corp sponsors

question

define performance appraisal

answer

an evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or terminiation

question

what are the 6 steps of performance appraisal

answer

1. establishing performance standards that are understandable, measurable and reasonable 2. clearly communicating those standards 3. evaluating performance against the standards 4. discussing the results with employees 5. taking corrective action 6. using the results to make decisions

question

define fringe benefits

answer

sick leave, vacation pay, pension and health plans that provide additional compensation to employees beyond base wages

question

define cafeteria-style and soft benefits

answer

allow employees to choose the benefits they want

question

define flextime plan

answer

gives employees some freedom to choose which hours to work as long as they work the required number

question

define compressed work week

answer

employees work the full number of work hours, but in fewer than the standard number of days

question

define job sharing

answer

lets two or more part-time employees share on a full-time job

question

define core time

answer

most flextime require core time: when all employees are expected to be at their job stations

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