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Creativity And Innovation Flashcards, test questions and answers

Q: Which step of the scientific method relies more heavily on newly collected data than on creativity and innovation?

A. Drawing a conclusion. More test answers on https://studyhippo.com/scientific-inquiry/

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We've found 13 Creativity And Innovation tests

Ball And Stick Model Creativity And Innovation Sir Francis Bacon

Cricket Experiment, Scientific Method – Flashcards 18 terms

Emily Kemp

18 terms

Preview

Cricket Experiment, Scientific Method – Flashcards

question

Which step of the scientific method relies more heavily on newly collected data than on creativity and innovation?

answer

A. Drawing a conclusion.

question

A student completed a lab report. Which correctly describes the difference between the "Question" and "Hypothesis" sections of her report?

answer

B. "Question" states what she is asking, and "Hypothesis" states what she thinks the answer to that question is in "if... then... because" format.

question

A student sees several ants walking up a wall following the exact same trail that an ant took earlier. She wants to apply the scientific method to determine how the ants detected the trail. Which of these steps would come first in her application of the scientific method?

answer

D. Hypothesize that the ants are following a scent trail that the first ant left.

question

Consider this statement taken from a student's lab report: Since the hypothesis was supported, I learned that butterflies are attracted to red flowers more than to yellow flowers. More research could be done to compare the relative attraction of different pairs of colors in order to figure out what the best colors are to attract butterflies. // From which section of the lab report did the above statement most likely come?

answer

C. Conclusion

question

Which famous scientist is credited as the founder of the scientific method?

answer

C. Sir Francis Bacon

question

A scientist conducting an experiment quickly saw that she was not getting the results she expected. Instead of continuing to collect data, she went back to redesign the experiment until the data came out the way that the hypothesis predicted. The scientist's work did not follow the scientific method. Which statement best explains why?

answer

C. She failed to look at the data objectively by trying to get a desired result.

question

A student does an experiment for a science fair to study whether temperature affects the timing of a cricket's chirps. The student keeps a cricket in an enclosed box that is heated to different temperatures each day for twelve days. The student records that cricket's chirps by using a sound-activated microphone so the timing of the chirps can be measured. Which is the dependent variable in this experiment?

answer

C. Timing of the cricket's chirps.

question

Which best describes the scientific method?

answer

D. The process of hypothesis and testing through which scientific inquiry occurs.

question

Which statement best describes a scientific question?

answer

C. It must be testable.

question

Which example best represents the use of creativity in scientific inquiry?

answer

D. Developing a new way to extract a particular protein from tissue samples.

question

Which statement best describes a typical difference that could be found between the "Analysis" and "Conclusion" sections of a lab report?

answer

B. Only the "Analysis" section includes specific data comparisons, and the only "Conclusion" section suggests further research.

question

What would most likely be included in the "Analysis" section of the lab report?

answer

A. A discussion of any errors in the experimental data.

question

In which order are the steps of the scientific method commonly used?

answer

C. Question, hypothesize, experiment, collect data, conclude, communicate.

question

Unlike the methods of early scientists, how did Sir Francis Bacon believe basic laws of science should be determined?

answer

A. By using inductive reasoning based on empirical evidence.

question

Which is a scientific question?

answer

A. Can cats learn to sit down on command?

question

What is the primary purpose of writing a lab report?

answer

B. To communicate the specifics of an experiment that was conducted.

question

A scientist asked a question that was based on an observation. Which is the next step the scientist should take?

answer

A. The scientist should form a hypothesis and design an experiment.

question

A scientist publishes a paper that states that changes in the levels of gases in the atmosphere of a moon of Saturn indicate that there may be extraterrestrial life on that moon. Which statement correctly answers whether the question of alien life on this moon is scientific?

answer

D. The question is scientific because it is testable and verifiable.

STUDY

Creativity And Innovation Hire And Fire Organizational Psychology

MAN3240 Exam I Review – Flashcards 40 terms

Marlon Riddle

40 terms

Preview

MAN3240 Exam I Review – Flashcards

question

The study of organizational behavior is primarily concerned with the __ dynamics in organizations. a. psychosocial b. interpersonal c. behavioral d. all of these answers are correct

answer

d. all of these answers are correct

question

Companies like Ford, General Motors, and Chrysler, which provide automobiles, belong to the __ sector of the economy. a. government b. manufacturing c. service d. nonprofit

answer

b. manufacturing

question

From the external perspective, a person's history, feelings, thoughts,and personal value systems are very important in interpreting actions and behaviors. a. True b. False

answer

b. False

question

Organizations have often been described as clockworks because of the assumption that a. human behavior is unpredictable. b. human behavior is timely. c. human behavior is logical. d. human behavior is predictable.

answer

c. human behavior is logical

question

Organizational behavior is an interdisciplinary study that draws from several disciplines. Which of the disciplines listed below contributes directly to Organizational behavior? a. sociology b. theology c. astrology d. physics

answer

a. sociology

question

Organizational behavior is best described as the study of individal __ and organizational __. a. behavior; dynamics b. dynamics; regulations c. preferences; choices d. perspectives; transitions

answer

a. behavior; dynamics

question

Too much change often leads to stagnation, while not enough change leads to chaos. a. True b. False

answer

b. False

question

Which category do theories of human behavior that analyze a person's thoughts, feelings, past experiences, and needs fall into? a. internal b. external c. interactive d. preferential

answer

a. internal

question

__ is the study of overseeing activities and supervising people in organizations. a. Administration b. Psychology c. Anthropology d. Management

answer

d. Management

question

The importance of the informal elements of an organization was first suggested by the a. Labor unions b. Weber Studies c. Hawthorne Studies d. Kodak Studies

answer

c. Hawthorne Studies

question

The "Six Sigma" program tackles problems in four phases. These phases include all of the following except: a. analyze b. measure c. demands d. control

answer

c. demands

question

Which of the following statements is true concerning change? a. When an organization undergoes change, employees are usually open and responsive. b. You can never have too much change in an organization. c. Success is always guaranteed with change. d. Global competition is the leading force driving change at work.

answer

d. Global competition is the leading force driving change at work.

question

When evaluating quality improvement ideas, a key question that organizations need to consider is whether the idea improves customer response. a. True b. False

answer

a. True

question

To organizations, change represents both the risk of failure and the opportunity for success. What determines the outcome? a. out mentality b. our behavior c. our personality d. our knowledge

answer

b. our behavior

question

Which of the following represents the task of an organization involved in the international shipping business? a. Providing low cost, efficient shipping all over the globe. b. The company's legal team, which handles all of the regulatory paperwork. c. Its new marketing campaign, which has advertisement in 25 countries.

answer

a. Providing low cost, efficient shipping all over the globe.

question

Total quality management is a. a retroactive solution to customers complaints and dissatisfaction. b. the total collection to continuous improvement and to customers so that the customers' needs are met and their expectations are exceeded. c. the process through which divisional managers meet and evaluate the productivity of their employees. d. a management process through which employee supervision is tightened and individualism is discouraged.

answer

b. the total dedication to continuous improvement and to customers so that the customers' needs are met and their expectations are exceeded.

question

Which of the following is not an example of an aspect of a company's informal organization? a. a group members' personalities b. its ethical values c. its budget d. group norms

answer

c. its budget

question

Six sigma was developed by __. a. Malcolm Baldridge b. General Electric c. Ford Motor Company d. Motorola

answer

d. Motorola

question

__ is the science of human behavior. a. Anthropology b. Medicine c. Sociology d. Psychology

answer

d. Psychology

question

Organizations are open systems of interacting components which are: a. places, jobs, employees, and organizations. b. tasks technology, structure, and leadership c. people, tasks, technology, and structure. d. tasks, structure, and employment.

answer

c. people, tasks, technology, and structure.

question

In a collective society, a. group decisions are valued and accepted. b. people belong to loose social frameworks. c. people are responsible for taking care of their own interests. d. your primary concern is for yourself and your family.

answer

a. group decisions are valued and accepted.

question

Whistle-blowers are employees who report ethical or legal violations commited in the organization. a. True b. False

answer

a. True

question

Which of the following is not a way that organizations can shatter the glass ceiling? a. Make sure that hiring and promotion practices are led by an independent party b. Demonstrate support for the advancement of women c. Put in place systems to identify women with high potential for advancement d. Incorporate practices into diversity management programs to ensure that women perceive the organization as attractive.

answer

a. Make sure that hiring and promotion practices are led by an independent party

question

Managers need to be up to date on their knowledge of cultural trends because cultural differences are constantly changing. a. True b. False

answer

a. True

question

The glass ceiling is a transparent barrier that a. keeps from rising above a certain level in organizations. b. keeps women from rising above a certain level in organizations. c. keeps the economically disadvantaged from rising above a certain level. d. keeps the elderly from rising above a certain level in organizations.

answer

b. keeps women from rising above a certain levl in organizations.

question

What main benefit can an organization reap from diversity? a. enhanced marketing efforts b. attracting and retaining the best available human talent c. better problem solving d. All of these answers are correct

answer

d. All of these answers are correct.

question

The United States leads the way in developing new technologies, but it lags behind other countries in using these technologies productively. a. True b. False

answer

a. True

question

__ training is a popular method for helping employees recognize and appreciate cultural differences.

answer

d. Cultural sensitivity

question

The cultural gap between different generations is an example of a __. a. microcultural difference b. demographic c. collective statistic d. population study

answer

a. microcultural difference

question

In cultures with high __, employees are more likely to focus on personal success than group achievement

answer

a. individualism

question

In organizational justice, distributive justice concerns the fairness of __. a. the process by which outcomes are allocated. b. outcomes individuals receive. c. the individual coworkers' attitudes in relation to the unethical behavior. d. the judge who decides the outcome.

answer

b. outcomes individuals receive.

question

Cultures that value assertiveness and materialism have a high degree of __. a. masculinity b. strength c. persistence d. femininity

answer

a. masculinity

question

One of the disadvantages of telecommuting is that workers lose the opportunity to socialize with coworkers. a. True b. False

answer

a. True

question

Which of the following is not one of the major challenges managers must overcome in order to remain competitive, according to CEOs of U.S. corporations. a. Globalizing the firm's operations to compete in the global village b. Leading a diverse workforce c. Decreasing technological innovation in the workplace d. Encouraging positive ethics, character, and personal integrity.

answer

c. Decreasing technological innovation in the workplace.

question

"Guanxi" refers to a. asking for help between countries. b. crossing borders. c. building networks for social exchange. d. networks for globalization.

answer

c. building networks for social exchange.

question

In which year did the North American Free Trade Agreement (NAFTA) take effect? a. 2000 b. 1989 c. 1984 d. 1994

answer

d. 1994

question

Managers who work in a country other than their home country are known as international executives. a. True b. False

answer

b. False

question

Which of the following statements is accurate concerning cultures with high uncertainty avoidance? a. They have a need for concensus. b. They tend to avoid conflict. c. They are concerned with security. d. All of these statements are correct.

answer

d. All of these statements are correct.

question

Which of the following is not considered one of the differences among individuals that encompass diversity? a. Age b. Gender c. Social status d. Place of employment

answer

d. Place of employment

question

Inter-generational conflicts often occur in organizations because younger workers view older workers as less creative and less capabe. a. True b. False

answer

a. True

STUDY

Creativity And Innovation Development And Growth Extra Curricular Activities Free Enterprise System High School Students Ice Cream Parlor

DECA State Officer 2017 – Flashcards 51 terms

Ann Ricker

51 terms

Preview

DECA State Officer 2017 – Flashcards

question

What does ME stand for, and its main purpose

answer

Marketing Education, to teach high school and college students the ideas and formalities of marketing.

question

What are the three parts of the marketing education program?

answer

the classroom, the co-op, and DECA.

question

What ME class are you in now and what are your plans for next year?

answer

Entrepreneurship, I am currently involved with my DECA written event and running for state officer of course. Next year, I plan on taking Advanced Marketing and helping with the school store.

question

What qualities are developed through participation in DECA? How?

answer

Critical thinking and problem solving skills, communication, collaboration, creativity and innovation. DECA helps develop these through their classrooms, along with the leadership conferences and events. Workshops are offered at Leadership Conferences to help share these skills and advance the students knowledge of these attributes of business and skills.

question

How does the DECA mission statement relate to you in your leadership development?

answer

This mission statement relates to me, because throughout my life I have searched for that passion. I always looked up to and aspired to become a businessman in my lifetime, and lead in the field of business. When I became a freshman and was introduced to DECA I was pleased to know I found an organization that supported my passion. I strive to be a leader in anything that I do, and by following DECA's guidance I am able to do so.

question

Can ME help eliminate the dropout rate? How?

answer

Many students complain about high school, and how it doesn't support diversity and that the curriculum is very strict and simple. DECA gives students the opportunity for diversity and lets them potentially follow their passion for business, if that is what they want to do. Since there are statistics of people dropping out for not having an interest in what they are taking, which DECA can help change and decrease the rate of dropouts.

question

What can you contribute to Michigan DECA?

answer

I feel that I can greatly improve and provide two things for Michigan DECA. I can promise that I will try my hardest at any assignments or work that I need to have done or even work that needs to be done in general. Along with that, I plan to focus more on one of our development skills. This skill being Creative Thinking, I plan to campaign and influence creative thinking to our members, as it is an important trait to have in the current and future life.

question

A good state officer has what traits?

answer

As state office there are several traits you must have that sets you above the rest, but the most important few of these traits are leadership and confidence. Leadership is the most important trait to have as a state officer, this shows that you can influence others to achieve greater things and potentially face things the had never imagined to face. I feel that if an officer can be an influential and bright leader, then an officer can influence every other important trait with it. Confidence is the second most important, because confidence shows that as a leader, you have pride in what you say or do. Approaching things in a confident manner is key to any form of success and it is important to stress this to our chapter that may set us above the rest.

question

Who is the DECA Executive President of the High School Division?

answer

Jaron May

question

Who is the Central Region Vice President?

answer

Leah Hoffman

question

What are the Central Region States?

answer

Illinois Indiana Iowa Kansas Kentucky Manitoba, Canada Michigan Minnesota Missouri Nebraska North Dakota Ohio South Dakota Wisconsin

question

How many districts does Michigan DECA have?

answer

8 Districts

question

What does MME Stand for?

answer

Michigan Marketing Educators.

question

Who is the Michigan DECA State Director?

answer

Dave Wait

question

Who are your current DECA State Officers?

answer

Anna Sumpter, Charles Kowalske, Taylor Gripentrog, Nick Chirgwin, Anthony Bosio, Allison Anker, Edward Settle, and Nick Matthews.

question

What are geographical units of DECA called?

answer

Regions?

question

What is DECA, Inc.?

answer

DECA is an international association that includes teachers, and high school and college students of marketing, management, and entrepreneurship in subjects like business, finance, hospitality, and marketing sales and service.

question

What are the series events?

answer

ACCOUNTING APPLICATIONS APPAREL AND ACCESSORIES MARKETING AUTOMOTIVE SERVICES MARKETING BUSINESS FINANCE BUSINESS SERVICES MARKETING FOOD MARKETING HOTEL AND LODGING MANAGEMENT HUMAN RESOURCES MANAGEMENT MARKETING COMMUNICATIONS QUICK SERVE RESTAURANT MANAGEMENT RESTAURANT AND FOOD SERVICE MANAGEMENT RETAIL MERCHANDISING SPORTS AND ENTERTAINMENT MARKETING

question

What is the learn and earn project?

answer

The Learn and Earn Project is a chapter project that provides an opportunity for chapter members to develop business and marketing knowledge and skills. plan, organize and conduct a sales/service project in their local community, develop a business plan, utilize project management skills to implement a promotional campaign

question

What is the entrepreneurship promotion project?

answer

The Entrepreneurship Promotion Project is a chapter project that provides an opportunity for chapter members to develop a better understanding of the knowledge and skills needed in planning, organizing, implementing and evaluating a campaign to educate chapter members and the general public or an organized group about the opportunities available for becoming an entrepreneur.

question

What is the official terminology when referring to district, state, and national meetings?

answer

Career Development Conferences

question

What is the term given to an adult that guides a local chapter?

answer

Advisor

question

What are local organizations of DECA called?

answer

Chapters

question

The official term used to describe raising money on the local chapter level is?

answer

Fundraising

question

Are you allowed to compete while you are a State Officer?

answer

Yes, it is not required and it is not restricted. It is optional.

question

What is National DECA Week?

answer

A week that is celebrated by every state, local, and collegiate chapters. It reflects the development skills of DECA and supports the DECA Theme of the year.

question

Where is the International Career Development Conference this year?

answer

Atlanta, Georgia

question

What is the name of the National DECA magazine? How many times a year is it published?

answer

DECA Direct, 4 times

question

Who is the Executive Director of National DECA?

answer

Paul A. Wardinski

question

What is the official DECA Mission Statement?

answer

DECA prepares emerging leaders and entrepreneurs in marketing, finance, hospitality and management in high schools and colleges around the globe.

question

Where is DECA, Inc. located?

answer

Reston, Virginia

question

Where is the Michigan DECA office located?

answer

Eastern Michigan University

question

How would you explain and promote DECA to a group of business people?

answer

I would explain that DECA is a large company that influences high school and college students to pursue a career in business or related to business. It also gives students the opportunity to work towards their current passion in business. Generally, it gives high school students the opportunity to work towards and learn more about something they want to do after college.

question

How much time are you willing to devote to DECA next year?

answer

In this current year I have participated and am going to participate in many extra curricular activities, but next year I plan on taking advanced classes which means I will not be doing as many extra curriculars. I plan on putting most of my time outside of school into DECA especially if I become state officer, it will be my main priority.

question

What priority will you give to DECA compared to other extracurricular activities and sports you may be participating in?

answer

It will be my main priority

question

What qualities are developed by youth who participate in DECA? How do you develop these qualities?

answer

The qualities that are obtained by participating in DECA are the 4 C's, Critical Thinking, Communication, Collaboration, and Creativity. These qualities are developed when participating in events. These qualities are also developed when attending workshops at leadership conferences or the competitions.

question

How would you say DECA can help you in planning your future?

answer

DECA gives you the opportunity to develop skills and knowledge that relate to business, which many people don't have the chance to learn until they go to college and take specific course for their future. DECA gives students the chance to learn more about business which is convenient especially if they plan on working in the business field.

question

What would you do about a state officer who refused to accept their responsibilities? What would you say to them?

answer

I would remind them that what we do is serious, and that we serve as role models for the rest of the Michigan Chapter, I would not act aggressive towards them, but I would remind them of what they are dedicated to and why it is serious.

question

What are the most important qualities needed by a DECA State Officer? Pick three and explain their importance.

answer

Leadership, since the position is leader-based which means that the traits that you show will spread to the rest of the Chapter members. Creativity, because creativity is what separates an individual in competitive events or any other form of competition. Lastly, I believe that Confidence is important because it shows that you believe in your own ideas, and if you believe in yourself then others will believe in you too. This is why we tell members to "fake it til you make it"

question

What can you as an individual state officer do for your state organization?

answer

I will thrive to do as much work s possible and not take the position for granted, I will work hard to keep chapter members well informed and I will reflect a positive form of leadership at events.

question

Why do you want to be a State Officer?

answer

I like to look at myself as a positive leader and something people can look up to, and with my knowledge I feel like I could help members with many things. When I went to the state leadership conference i attended the "state officer" workshop, and while Edward and Anna were talking about the drive for a state officer, I knew that I fit the position and that I was meant to do this. I also plan on being a business owner in the future and I feel that this would really help me learn to be a leader and appeal to a large group of people.

question

What are the main responsibilities of a Michigan DECA State Officer?

answer

There are 8 different roles that a state officer can have, but outside of those roles, the state officer is supposed to work hard to maintain organization within' the chapter and resemble a good leader for new members to look up to and learn from.

question

What do you feel are the primary purposes of DECA?

answer

I feel that the primary purposes of DECA are to introduce high school and college students to the formal requirements of business and to develop traits that will be needed in the business world in the present and future. It gives students the opportunity to gain further knowledge about business, which is very convenient if you have plans to work in the business field.

question

What have you done in your local chapter as evidence of leadership?

answer

I have helped with several fundraisers and events. Including events like our powderpuff pink out game to raise money for victims of breast cancer, as well as organizing and volunteering at our local pumpkin roll event. I also spoke at our DECA information session assembly.

question

Do you now hold a job? If so where and how long?

answer

I currently work at Dairy Treat which is a local ice cream parlor, but they are a seasonal business so I don't currently work there but I work during the summer. I have a lot of free time to work hard as a state officer, and it would be my main priority.

question

What activities have you participated in at school and in your community?

answer

For the last two years I have mostly participated in sports and DECA along with FFA. I participated in Basketball, Soccer, and Powerlifting. I lifted at the state level both my freshman and sophomore years. My freshman year I qualified for state for my role play performance. This year I am starting to expand my hobbies, participating in the school play, creating the chess club at my school, and thriving in DECA and Soccer. I plan on playing all of my usual sports.

question

What is your career objective? How did you arrive at this choice? What are your plans after high school?

answer

I plan on becoming a business owner in the future, I came to this conclusion because I was always interested in the idea of sales and selling product I've been passionate about this since about 7th grade. I have always wanted to make an above average income and I feel that becoming a business owner would be a good way to do this. After high school I plan on attending the University of Michigan's Ross Business School in Business Model Innovation and Business Leadership in Changing Times.

question

Why are you taking marketing education?

answer

I am taking marketing education, because I want to learn more about expanding my business knowledge and learn how to network, advertise, and create a business plan with thorough attributes like my target market, budget, mission statement, etc.

question

What priority will you give to DECA if you are elected to be a state officer?

answer

DECA will be my main priority, I do not have any other extracurriculars that i'm doing this year and the only other thing I am doing is indoor soccer and powerlifting at the moment.

question

How does DECA's logo, mission statement, and guiding principles relate to your career development?

answer

It teaches me traits that are necessary to have when I want to run a business in the future, the mission statement includes the teaching of business management and marketing which would both be essential toward my success as a business owner.

question

What are DECA's official colors?

answer

Blue and Gold

STUDY

Business Management Creativity And Innovation Management Short Term Goals

Managerial Accounting Textbook notes – Flashcards 85 terms

James Storer

85 terms

Preview

Managerial Accounting Textbook notes – Flashcards

question

What is planning?

answer

Setting goals and objectives for the company and figuring out how to achieve them

question

What is directing?

answer

Overseeing the company's day to day operations: cost reports, product sales information, and other managerial accounting reports

question

What is controlling?

answer

Evaluating the results of business operations against the plan and making adjustments to keep the company pressing towards its goals

question

What is the difference between managerial accounting and financial accounting?

answer

1. Financial accounting is geared towards producing annual and quarterly consolidated financial statements that will be used by investors and creditors to make investment and lending decisions. 2. Managerial accounting is designed to provide its managers with the accounting information they need to plan, direct, and control operations.

question

What do financial accounting statements focus on?

answer

THE FUTURE providing RELEVANT information that helps managers make profitable business decisions

question

Who are the primary users of financial accounting information?

answer

External users, such as creditors, stockholders, and government regulators

question

Who are the primary users of managerial accounting information?

answer

Internal users such as managers

question

What is the purpose of the information behind financial accounting?

answer

To help external users make investing and lending decisions

question

What is the primary accounting product of financial accounting?

answer

Financial statements

question

What must be included in the report and how must it be formatted for financial accounting?

answer

GAAP determines the content and format of financial statements

question

What is the underlying basis of the information behind financial accounting?

answer

The information is based on historical transactions with external parties

question

What information characteristic is emphasized behind financial accounting?

answer

The data must be reliable and objective

question

What business "unit" is the report about for financial accounting?

answer

The company as a whole (consolidated financial statements). Limited segment data is provided in the footnotes.

question

How often are the reports prepared for financial accounting?

answer

Annually and quarterly

question

Does anyone verify the information for financial accounting?

answer

Independent certified public accounts (CPAs) audit the annual financial statements of publicly traded companies and express an opinion on the fairness of the financial information they contain

question

Is the information required by an outside group/government agency for financial accounting?

answer

Yes, the Securities and Exchange Commission (SEC) requires publicly traded companies to issue annual audited financial statements

question

Is there any concern over how the reports will affect employee behavior for financial accounting?

answer

The concern is about adequacy of disclosure; behavioral implications are secondary

question

What do managerial accounting reports focus on?

answer

INTERNAL transactions, such as the movement of beverages and dry ingredients from central warehouses to individual restaurant locations

question

What is the purpose of the information of managerial accounting reports?

answer

To help managers plan, direct, and control business operations and make business decisions

question

What is the is the primary accounting product of managerial accounting?

answer

Any internal accounting report deemed worthwhile by management

question

What must be included in the report, and how must it be formatted for managerial accounting?

answer

Management determines what it wants in a report, and how it wants to be formatted. Reports are prepared only when management believes the benefit of using the report exceeds the cost of preparing the report.

question

What is the underlying basis of the information for managerial accounting?

answer

While some information is based on past transactions, managerial accounting focuses on the future. It provides information on both external and internal transactions

question

What information characteristic is emphasized for managerial accounting?

answer

The data must be relevant

question

What business "unit" is the report about for managerial accounting?

answer

Segments of the business, such as products, customers, geographic regions, departments, and divisions

question

How often are the reports prepared for managerial accounting?

answer

It depends on management's needs. Some reports are prepared daily, while others may be prepared only one time.

question

Does anyone verify the information for managerial accounting?

answer

No there are no independent audits. However, the company's internal audit function may examine the procedures used in preparing the reports.

question

Is the information required by an outside group/government agency for managerial accounting?

answer

No authoritative body requires managerial accounting reports

question

Is there any concern over how the reports will affect employee behavior for managerial accounting?

answer

Management carefully considers behavioral implications when designing the managerial accounting system

question

What is a board of directors?

answer

Stockholders elect a board of directors to oversee their company.

question

What is a chief executive officer (CEO)?

answer

Manages the company on a daily basis

question

What does the treasurer do?

answer

The treasurer is primarily responsible for raising capital (through issuing stocks and bonds) and investing funds

question

What does the controller do?

answer

The controller is usually responsible for general financial accounting, managerial accounting, and tax reporting

question

What does the audit committee do?

answer

The audit committee overseas the internal audit function as well as the annual audit of the financial statement by the independent CPAs

question

What does the cross-functional team do?

answer

Consists of employees representing various functions of the company, such as R & D, design, production, marketing, distribution, and customer service

question

What does the Institute of Management Accountants (IMA) do?

answer

They are the professional association for management accountants in the United States

question

What does the Certified Management Account (CMA) certification?

answer

To become a CMA you must pass a rigorous examination and maintain continuing professional education. It focuses on managerial accounting topics similar to those discussed in this book, as well as economics and business finance

question

What is the American Institute of Certified Public Accountants (AICPA)?

answer

The world's largest association representing the accounting profession, joined forces with England's Chartered Institute of Management Accountants (CIMA)

question

What is the Chartered Global Management Accountant designation (CGMA)?

answer

Available to qualifying AICPA and CIMA members, is meant to recognize the unique business and accounting skill set possessed by those CPAs who fill, or have filled accounting roles within an organization, as opposed to strictly public accounting roles

question

What are the ethics management accountants must uphold?

answer

-Maintain their professional competence -Preserve the confidentiality of the information they handle -Uphold their integrity -Perform their duties with credibility

question

What is the primary purpose and focus of managerial accounting?

answer

-Managerial accounting provides information that helps managers plan, direct, and control operations and make better decisions; it has a FUTURE ORIENTATION -FOCUS ON RELEVANCE TO BUSINESS DECISIONS

question

How do managers design a company's managerial accounting system that is not regulated by GAAP?

answer

-Managers design the managerial accounting system so that the benefits (from helping managers make better decisions) outweigh the costs of the system.

question

Where should management accountants be placed within the organizational structure?

answer

-In the past, most management accountants worked in isolated departments. Now over 50% of management accountants are deployed throughout the company and work on cross-functional teams. Management must decide which structure best suits its needs.

question

What skills should management accountants possess?

answer

Because of their expanding role, they must have analytical skills, financial and managerial accounting knowledge, be able to work in teams, possess strong Excel skills, and written and oral communication skills

question

What professional associations advocate for management accounts in the United States? ****

answer

The Institute of Management Accounts (IMA)

question

By what ethical principles and standards should management accountants abide?

answer

-Honesty, objectivity, fairness

question

What is the Sarbanes Oxley Act of 2002?

answer

Enhances internal control and financial reporting requirements

question

What is the international financial reporting standards? IFRS

answer

IFRS varies from GAAP, but may be required for all public companies

question

What is the Extensible Business Reporting Language (XBRL)?

answer

Enables companies to release financial and business information in a format that can be quickly, efficiently, and cost effectively accessed

question

What is sustainability?

answer

Ability of a system to maintain its own viability

question

Which companies need to comply with SOX?

answer

publicly traded companies

question

How will IFRS benefit international companies?

answer

Companies that operate in more than one country no longer need to prepare multiple financial statements

question

Ch: 2 Building Blocks of Managerial Accounting What is the triple bottom line?

answer

A company's performance is evaluated not only interns of profitability, but also its impact on people and the planet

question

What are service companies?

answer

In business to sell intangible services

question

What are merchandising companies?

answer

Walmart and Best Buy resell tangible products they buy from suppliers

question

What are manufacturing companies?

answer

Use labor, plant, and equipment to convert raw materials into new finished products

question

What is a raw materials inventory?

answer

Steel, glass, tires, upholstery fabric

question

What is work in process inventory?

answer

Goods that are partway through the manufacturing process but not yet complete

question

What is the finished goods inventory?

answer

Completed goods that have not yet been sold

question

What is research and development?

answer

Researching and developing new and improved products or services and the process for producing them

question

What is design?

answer

Detailed engineering of products and services and the processes for producing them

question

What is production or purchases?

answer

Resources used to produce a product or service or to purchase finished merchandise intended for resale

question

What is marketing?

answer

Promotion and advertising of products or services

question

What is distribution?

answer

Delivery of products or services to customers

question

What is customer service?

answer

Support provided for customers after the sale

question

What is a cost object?

answer

Anything for which managers want a separate measurement of cost

question

What is a direct cost?

answer

A cost that can be traced to the cost object. For example if the cost object is a Prius, then tires are a direct cost of the vehicle.

question

What is an indirect cost?

answer

A cost that relates to the cost object but cannot be traced to it

question

What is an inventorial product cost?

answer

Includes only costs incurred during the production or purchases stage of the value chain

question

What are period costs?

answer

R & D, design, marketing, distribution, and customer service... operating expenses or "selling, general, and administrative expenses"

question

What are indirect materials?

answer

Materials in the plant that are not easily traced

question

What is indirect labor?

answer

janitors, security officers

question

What are other indirect manufacturing costs?

answer

Plant-related costs

question

What are prime costs?

answer

Combination of direct materials and direct labor

question

What are conversion costs?

answer

The combination of direct labor and manufacturing overhead

question

Ch: 3 Job costing What are the methods used to determine the cost of manufacturing a product?

answer

1. Process costing 2. Job costing

question

What is process costing?

answer

Used by companies that produce extremely large numbers of identical units through a series uniform production steps or processes, or big batches

question

What is job costing?

answer

Used by companies that produce unique, custom-ordered products, or relatively small batches

question

What is a stock inventory?

answer

stock available to quickly fill customer orders

question

What is a production schedule?

answer

The quality and types of inventory that are scheduled to be manufactured during the period

question

What is a bill of materials?

answer

A receipt of raw materials needed to manufacture the job

question

What is a raw materials record?

answer

Shows detailed information about each item in stock

question

What is a purchase order?

answer

An order of purchases

question

What is a receiving report?

answer

A duplicate of the purchase order except it does not pre-list the quantity of parts ordered

question

What is cost plus pricing?

answer

Cost + markup on price

question

What is extended producer responsibility (EPR)

answer

Take back laws... create future costs associated with the production of electronic devices and other problem waste

STUDY

Anger And Fear Conflict Theory Cope With Problems Creativity And Innovation Ice Cream Cone Positions Strategies And Tactics Zero Sum Game

Quiz 2 negotiation skills – Flashcards 20 terms

Stephen Sanchez

20 terms

Preview

Quiz 2 negotiation skills – Flashcards

question

All of the issues involved in a negotiation are collectively referred to as the bargaining mix.

answer

True

question

BATNA is the area between parties' resistance points.

answer

False

question

BATNA is the most ideal alternative outcome one party to a negotiation could get without negotiating with the other party.

answer

False

question

A frame is the lens through which you view a negotiation.

answer

True

question

The opening offer is the best outcome each party can resonably and realistically expect to obtain as a result of the negotiation.

answer

False

question

Reciprocity is the notion that if someone does somthing for you, you own them.

answer

True

question

WATTA is the worst outcome you might face if you do not come to a negotiated agreement.

answer

False

question

In most sales transactions the seller effectivly makes the initial offer when she names a price.

answer

True

question

Research shows that negotiators who set challenging goals consistantly achieve better outsomes than those who don't.

answer

True

question

The resistance point is the best outcome each party can reasonably and realistically expect to obtain as a result of the negotiation.

answer

False

question

The settlement point is what the parties actually agree upon.

answer

True

question

What does BATNA stand for?

answer

A. Best Alternative to Negative Agreement B. Best Agreement to a Negotiated Alternative (Answer) C. Best Alternative to a Negotiated Agreement D. Best Agreement to a Negative Alternative

question

What does WATTA stand for?

answer

A. Worst Alternative to Negative Agreement B.Worst Agreement to a Negative Alternative C. Worst Agreement to a Negotiated Alternative (Answer) D. Worst Alternative to a Negotiated Agreement

question

Which of the following is not defined when preparing a negotiation?

answer

A. Settlement point B. Initial offers C. Target Points (answer)D. Resistaince points

question

Which of the following is the point at which the parties agree?

answer

A. Target point (Answer)B. Settlement point C. Bargaining point D. Resistance point

question

According to the Dual Concerns Model if your concern about your own outcome is high and your concern for the other party's outcomes is low, your approach would be:

answer

A. Problem Solving B. Yeilding (Answer)C. Contending D. Inaction

question

According to the Dual Concerns Model if your concern about your own outcome is low and your concern for the other party's outcomes is high, your approach would be:

answer

A. Contending B. Inaction C. Problem Solving (Answer)D. Yeilding

question

According to the Dual Concerns Model if your concernabout your own outcome is high and your concern for the other party's outcoes is high, your approach would be:

answer

A.Contending B.Yeilding C. Inaction (Answer)D. Problem Solving

question

According to the Dual Concerns Model if your concern about your own outcome is low and your concern for the other party's outcomes is low, your approach would be:

answer

(Answer)A. Inaction B. Contending C. Problem Solving D. Yeilding

question

According to the Thomas-Kilmann Conflict Styles Model if your concern for the relationship is low and your concern for the substantive outcomes is low, your approach would be:

answer

A. Competing B. Collaborating C. Accommodating (Answer) D. Avoiding

STUDY

Abnormal Psychology AP Psychology Creativity And Innovation Educational Psychology Educational Technology

Educational Psychology Exam 1 Review – Flashcards 51 terms

Jamie Hutchinson

51 terms

Preview

Educational Psychology Exam 1 Review – Flashcards

question

Differentiated Instruction

answer

A good teacher must be able to accommodate a wide variety of learners. One way to do this is to use ____?

question

Teaching students effectively who are on different levels; providing, allowing, permitting, structuring, and creating.

answer

What is differentiated instruction?

question

Focused, Engaged, Demanding, Important, Scaffolded. All independent and interlocking terms.

answer

The acronym for the cogs of differentiated instruction are FEDIS...

question

Intentionally changed by researcher

answer

Independent Variable

question

What is being observed

answer

Dependent Variable

question

Knowledgable, inventive, range of strategies, understanding student development, "sage" and a "guide", read about research

answer

Good teaching = ?

question

Theoretical (ideas), Empirical (research), Practical (experience), and Case (other teachers)

answer

Knowledge crucial for teacher growth = ?

question

Father of progressive education movement

answer

John Dewey

question

Founded American Psychological Association

answer

G. Stanley Hall

question

1st Ed. Psych text (1903)

answer

E.L. Thorndike

question

Talked to teachers about research

answer

William James

question

Describe info. about variables in a population without changing the way events naturally occur (surveys, interviews, observations)

answer

Descriptive studies

question

Intensive study of one person or situation (how a teacher plans a lesson).

answer

Case study

question

Researcher becomes participant, sees their P.O.V.

answer

Participant Observation

question

Often results of descriptive studies, (correlation) a # that indicates the strength and direction of a relationship between 2 events/measurements.

answer

Correlational studies

question

Strong (close to -1.0) and Negative (descending)

answer

Is a correlation of -.78 strong or weak, pos. or neg.?

question

-1.0 or +1.0

answer

A correlation is stronger the closer it is to . . .

question

Used to establish cause-and-effect relationships between variables by random assignment and manipulating a variable(s).

answer

Experimental studies

question

Participants are not assigned to groups at random, uses existing groups such as a class, school, or team. Often times, independent variable cannot be changed. Infer cause-and-effect.

answer

Quasi-experimental

question

Examine two or more groups to compare behaviors.

answer

Cross-sectional (quasi)

question

Observe same person repeatedly to observe changes over a long period of time.

answer

Longitudianal

question

Probably did not happen by chance (p<.05) less than 5/100.

answer

Statistically significant

question

Certain changes that occur in humans throughout life (physical- maturation, personal, social, cognitive).

answer

Development

question

Part of physical development that changes occur naturally- genetically programmed.

answer

Maturation

question

1.) People develop at different rates 2.) Development occurs relatively orderly 3.) Development takes place gradually

answer

What are the 3 principles of development?

question

Children are active builders of their knowledge. Influences include biological maturation, activity social experiences, and equilibration

answer

Piaget's theory on cognitive development

question

1.) Infancy: sensorimotor 2.) Early childhood: pre-operational 3.) Later elementary/middle school: concrete operational 4.) High school/college: Formal operational

answer

Piaget's 4 stages of development

question

Senses- seeing, hearing, moving, touching, tasting, etc. Object permanence, goal-directed actions, mentally represent objects and events (imitation), schemes, adaptation, assimilation, equilibration.

answer

Sensorimotor stage

question

Mental systems or categories of perception and experience, basic building blocks. Can be specific or general.

answer

Schemes (sensorimotor)

question

Use of existing schemes to understand new information

answer

Assimilation (sensorimotor)

question

Change existing schemes to respond to new situations

answer

Accommodation (sensorimotor)

question

Assimiliation

answer

See a raccoon and call it a "kitty"

question

Accommodation

answer

Combining the recognition of a raccoon is the recognition of an animal

question

Operations = actions carried out and reversed mentally, semiotic function = symbols (lang., sings, pics, etc), egocentric = can't see other peoples P.O.V.s

answer

Pre-operational

question

Pre-operational

answer

Child thinks there is more pizza when it is cut into 8 slices instead of 4 big slices

question

"hands-on thinking", laws of conservation, identity, compensation, reversibility, seriation

answer

Concrete operational

question

Some characteristics of objects remain the same despite changes in appearance (ex: pouring 8 oz of milk into a gallon jug- looks like less, but still same amount just bigger space)

answer

Laws of conservation

question

Putting objects into categories

answer

Classification

question

Objects into sequential order based on 1 dimension (weight, size, height)

answer

Seriation

question

Able to solve abstract problems, hypothetico-deductive reasoning, adolescent egocentrism

answer

Formal operation

question

Think about what MIGHT affect a problem, then evaluate a specific situation

answer

Hypothetico-deductive reasoning

question

1.) Learning is a constructive process 2.) Ensure students' active engagement in learning 3.) Determine problems- look for repeated mistakes 4.) Keep disequilibrium (lack of stability/guidance) "just right" to encourage growth

answer

Implications for teaching

question

Underestimating younger children's abilities, inattention to cultural and social influences, development may not occur consistently with stages

answer

Limitations of Piaget's theory

question

Children learn from cultural interactions with people with ore knowledge/experience. Social interaction = origin of higher mental processes

answer

Vygotsky's sociocultural theory

question

Allows younger children to guide behavior and thinking, use of self-directed talk is highest 5-7 and then gradually fades, this self talk becomes internalized (whisper, lip movements, thought)

answer

Vygotsky private speech

question

Believed in social interactions. P = peers because on the same level and V = elders because more knowledgable

answer

Piaget AND Vygotsky both . . .

question

High processes are 1st co-constrcuted (interaction with others to understand), the internalized, use of cultural tools (symbols like language, numbers, etc) helps accomplish higher thoughts. Develop a "cultural tool kit" = language is most important

answer

Vygotsky

question

The gap between actual competence level (child's problem-solving capability when working independently), and potential development level (what the child can do with assistance)

answer

Zone of proximal development (ZPD)

question

Instructor becomes a supportive tool for the student in ZPD

answer

Scaffolding

question

Piaget: Language depends on cognitive development Vygotsky: Language influences cognitive development

answer

Relationship between language and thought

question

(V first, then P) Varies across cultures vs. Universal, Social interactions vs. Independent explorations, Social processes become individual vs. Individual become social, Adults change agents vs. Peers change agents

answer

Cognitive development: Piaget vs. Vygotsky

STUDY

Creativity And Innovation Decision Making Finance Geography Line And Staff Line And Staff Structure Management Product Development Team Span

Business Exam 2 – Flashcards 50 terms

Richard Molina

50 terms

Preview

Business Exam 2 – Flashcards

question

Diagonal communication

answer

occurs when individuals from different units and departments within an organization communicate.

question

_____ are very short-term plans that specify what actions individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan.

answer

Operational plans

question

Work groups:

answer

have individual accountability.

question

_____ is the division of labor into small, specific tasks and the assignment of employees to do a single task.

answer

Specialization

question

_____ planning is conducted on a long-range basis by top managers.

answer

Strategic

question

Which of the following is true of the transformation process?

answer

It is the conversion of human, financial, and physical resources into goods, services, and ideas.

question

Which of the following statements is true about organizational layers?

answer

In a tall organization, the span of management is narrow.

question

Which of the following activities is NOT included in supply chain management?

answer

Researching and developing products

question

If an employee is involved with transforming resources into goods and services, then he is in

answer

operations management

question

A _____ is a group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer.

answer

self-directed work team

question

From the perspective of operations, food sold at a restaurant and services provided by a plumbing company are:

answer

outputs

question

When providing benefits, a manager is most closely involved with the _____ resources of the company

answer

human

question

When analyzing options in the decision-making process, managers must consider the appropriateness and _____ of each option

answer

practicality

question

Forecasting is most closely associated with the management function of

answer

planning

question

Project teams

answer

run their operation and have control of a specific work project.

question

Growth objectives essentially relate to:

answer

adapting and releasing new products in the market.

question

The buying of all materials needed by an organization is called

answer

purchasing

question

Which of the following is a formal expression of an organization's culture?

answer

Codes of ethics

question

The process of determining how many supplies and goods are needed, keeping track of quantities on hand, each item's location, and who is responsible for it is called:

answer

inventory control.

question

Crisis management plans generally cover maintaining business operations during a crisis and:

answer

communicating with others about the situation and the company's response to it.

question

Which of the following statements is true about organizational structure?

answer

It is the arrangement or relationship of positions within an organization

question

A permanent, formal group that performs a specific task is a:

answer

committee

question

If a manager is analyzing several methods for obtaining primary funding to expand operations, she is working with the _____ resources of the company.

answer

financial

question

All activities involved in obtaining and managing raw materials and component parts, managing finished products, packaging them, and getting them to customers are part of:

answer

supply chain management

question

A company that has departments for marketing, finance, personnel, and production is organized by:

answer

function.

question

Minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as:

answer

just-in-time inventory management

question

Which of the following statements is true of the management function of organizing?

answer

Organizing helps create synergy, whereby the effect of a whole system equals more than that of its parts.

question

Operations management has the primary responsibility for:

answer

creating products that satisfy customers.

question

Which of the following statements is true about grapevine?

answer

It sometimes carries information that could help in decision making.

question

Materials that have been purchased to be used as inputs in making other products are included in:

answer

raw materials inventory.

question

Determining an organization's objectives and deciding how to accomplish them are part of the management function known as:

answer

planning.

question

Upward communication conveys:

answer

progress reports and complaints.

question

_____ is the principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome.

answer

Accountability

question

_____ refers to a firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior.

answer

Organizational culture

question

The system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system is called:

answer

statistical process control.

question

The products of service providers tend to be more customized than those of manufacturers because

answer

the specific needs of individual customers get incorporated.

question

How do operations managers ensure quality and efficiency during the transformation process?

answer

They take feedback at various points in the transformation process and compare them to established standards.

question

Downsizing is an aspect most closely associated with the management function of:

answer

staffing.

question

_____ is a philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers' perceptions of quality.

answer

Total quality management

question

_____ is usually preferred when the decisions of a company are very risky and low-level managers lack decision-making skills.

answer

Centralization

question

Which of the following is a disadvantage of job specialization?

answer

It can lead to dissatisfaction and boredom among employees if overly done.

question

The main focus of the process of management is:

answer

coordinating resources to achieve objectives.

question

An organization that creates many products with similar characteristics, such as automobiles, television sets, or vacuum cleaners, would most likely be categorized as a(n):

answer

continuous manufacturing organization.

question

_____ is used for job networking and is gaining in popularity among the younger generation as an alternative to traditional job hunting.

answer

question

If a manager is concerned about doing the work with the least cost and waste, then her primary managerial concern is:

answer

efficiency.

question

When selecting the best option among a series of possible decisions

answer

it may be possible to use a combination of several options.

question

A marketing manager is primarily responsible for:

answer

planning, pricing, and promoting products and overseeing their distribution.

question

Which of the following is true about quality?

answer

It is a critical element of operations management.

question

The degree to which a good or service meets the demands and requirements of customers is called:

answer

quality

question

A company that manufactures large products, such as houses or bridges, may require that all resources be brought to a central location during production. This type of facility layout is called:

answer

fixed-position layout.

STUDY

Across The Globe Creativity And Innovation Problems And Opportunities

Entrepreneurship Midterm – Flashcards 346 terms

James Hopper

346 terms

Preview

Entrepreneurship Midterm – Flashcards

question

The ability to develop new ideas and to discover new ways of looking at problems and opportunities is called

answer

creativity.

question

An entrepreneurial "secret" for creating value in the marketplace is

answer

applying creativity and innovation to solve problems

question

The ability to apply creative solutions to problems and opportunities to enhance or to enrich people's lives is called

answer

innovation

question

Harvard's Ted Levitt says that creativity is ________ new things, and innovation is ________ new things.

answer

thinking; doing

question

Entrepreneurship is a constant process that relies on

answer

creativity, innovation, and application in the marketplace

question

________ is necessary for building a competitive advantage and for business survival

answer

Creativity

question

Creativity often involves creating something from nothing. However, it is more likely to result in

answer

All of the above

question

When developing creative solutions to modern problems, entrepreneurs must:

answer

go beyond merely using whatever has worked in the past

question

Research shows that anyone can learn to be creative. The problem is

answer

All of the above

question

Research into the operation of the human brain shows that each hemisphere of the brain

answer

processes information differently

question

The left brain is guided by

answer

linear, vertical thinking

question

The right brain is guided by

answer

kaleidoscopic, lateral thinking

question

Which hemisphere of the brain is responsible for language, logic, and symbols?

answer

Left hemisphere

question

) Which hemisphere of the brain is responsible for the body's emotional, intuitive, and spatial functions?

answer

Right hemisphere

question

Which hemisphere of the brain processes information in a step-by-step fashion?

answer

Left hemisphere

question

Which hemisphere of the brain processes information all at once and by relying heavily on images?

answer

Right hemisphere

question

________ vertical thinking is narrowly focused and systematic, proceeding in a highly logical fashion from one point to the next

answer

Left-brained

question

________ lateral thinking is somewhat unconventional and unstructured

answer

Right-brained

question

All of the following represent barriers to creativity that entrepreneurs impose upon themselves except

answer

searching for more than one answer

question

Entrepreneurs can stimulate their own creativity and encourage it among workers by

answer

expecting and tolerating failure.

question

Which of the following is not one of the ways entrepreneurs can stimulate their own creativity and encourage it among their workers?

answer

View challenges as problems

question

Employees must be given the tools and resources they need to be creative. One of the most valuable set of resources is

answer

time, support and encouragement

question

Hiring a diverse workforce

answer

All of the above

question

The ________ environment has an impact on the level of people's creativity

answer

physical

question

All of the following are enhancements to individual creativity except

answer

limiting your reading sources

question

Which of the following is not an enhancement to individual creativity?

answer

Working without breaks until the project is complete or the problem is solved

question

Which stage of the creative process includes on-the-job training?

answer

Preparation

question

This set of experiences may enhance individual creativity

answer

All the above

question

Which stage of the creative process requires one to develop a solid understanding of the problem or decision?

answer

Investigation

question

Which stage of the creative process involves viewing the similarities and differences in the information collected?

answer

Transformation

question

The ability to see the similarities and the connections among various data and events is called:

answer

convergent thinking

question

The ability to see the differences among various data and events is called

answer

divergent thinking

question

________ thinking is the ability to see similarities and ________ thinking is the ability to see differences among various data and events

answer

Convergent; divergent

question

During the incubation phase of the creative process, the entrepreneur might do all of the following EXCEPT which one to let ideas "marinate" in his mind?

answer

Don't allow one's self to daydream

question

At which stage of the creative process does a spontaneous breakthrough occur, allowing all of the previous stages to come together to produce the "Eureka factor" or the "light bulb goes on"?

answer

Illumination

question

"Verification" refers to:

answer

All of the above

question

The focus of this step in the creative process is to transform the idea into reality

answer

Implementation

question

________ is a process in which a small group of people interacts to produce a large quantity of imaginative ideas

answer

Brainstorming

question

Effective brainstorming involves all of the following except

answer

an effective method to evaluate ideas

question

________ is a graphical technique that encourages thinking on both sides of the brain, visually displays the various relationships among the ideas, and improves the ability to view a problem from many sides

answer

Mind-mapping

question

Mind-mapping is a useful tool for jump-starting creativity. It includes all of the following except

answer

forcing creativity when ideas start to trickle

question

The technique of ________ uses three columns that allows the entrepreneur to weigh both the advantages and the disadvantages of a particular decision and work to maximize the variables that support it while minimizing those that work against it.

answer

force-field analysis

question

The "theory of inventive problem solving" is a left-brained, scientific, systematic process based on innovative patents and is referred to as

answer

TRIZ

question

The premise behind ________ is that transforming an idea into an actual model will lead to improvements in its design

answer

rapid prototyping

question

The three principles (three Rs) of rapid prototyping are

answer

develop a rough model, rapidly, and for the right problem

question

Steps in the patent process include

answer

All of the above

question

To which governmental office must applications for patents be submitted?

answer

The U.S. Patent and Trademark Office

question

To protect patent claims, an inventor should be able to verify and document the

answer

date on which the idea was first conceived

question

More than ________ percent of those holding patents win their infringement suits

answer

question

Any distinctive word, phrase, symbol, name, or logo a firm uses to distinguish itself or its products is called a

answer

trademark

question

Which of the following questions should you consider before entering a lawsuit to protect intellectual property?

answer

All of the above

question

A ________ is an exclusive right that protects the creators of original works such as literary, dramatic, musical, and artistic works

answer

question

Copyrights protect the creator of original works such as

answer

software, choreography, and motion pictures

question

Which of the following is not one of the three components of intellectual capital?

answer

Competitor

question

________ involves developing a game plan to guide a company as it strives to accomplish its mission, goals, and objectives to keep it on its desired course.

answer

Strategic management

question

The aggregation of factors that sets a company apart from its competitors and gives it a unique position in the market, superior to its competition, is its

answer

competitive advantage

question

Which of the following was not identified as a way for the typical small business to establish a competitive advantage?

answer

Lowering prices

question

________ are a unique set of capabilities that a company develops in key operational areas-such as service, innovation, and others-that allow it to potentially vault past its competitors

answer

Core competencies

question

The relationship between core competencies and competitive advantage is best described by which statement?

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A company's core competencies become the nucleus of its competitive advantage

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The key to entrepreneurial success over time is to build a ________ competitive advantage

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sustainable

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A strategic plan serves as a blueprint to help a company to

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All of the above

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Which of the following is NOT a characteristic of the strategic management procedure for a small company?

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It should begin with an extensive objective-setting session

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A clearly defined vision helps a company in which of the following ways?

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All of the above

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A small company's mission statement

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All of the above

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When developing a company's mission statement, an entrepreneur should remember to

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keep it short and simple

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Strengths and weaknesses are ________ to the organization

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internal factors

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________ are positive internal factors that contribute toward accomplishing the company's mission, goals, and objectives, while ________ are negative internal factors that inhibit the accomplishment of a firm's mission, goals, and objectives

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Strengths; weaknesses

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Kevin Abt noticed that people were cooking meals in their homes less often but wanted to avoid the hassle of going out to eat. They wanted to "eat in" without cooking. Abt launched a company, Takeout Taxi, that delivers restaurant-prepared food to his customers' homes and businesses. Takeout Taxi is the result of a(n):

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opportunity

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Maria Sanchez is the owner of the Main Street Café and a new restaurant opens a few blocks away. From Maria's perspective, this new restaurant constitutes a(n

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threat

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Every business is characterized by a set of controllable variables that determines the relative success (or lack of it) of market participants called

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key success factors

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Gathering competitive intelligence, such as "dumpster diving" in a competitors trash, may raise questions regarding

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ethical standards

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Your ________ competitors offer the same products and services, and customers often compare prices, features, and deals from these competitors as they shop

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direct

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An ________ competitor offers the same or similar products of services only in a small number of areas, and their target customers seldom overlap yours

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indirect competitor

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Which of the following is true about the information-gathering process in competitive analysis?

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It can be relatively inexpensive and easy for the small business owner to conduct

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Which of the following is an effective method of collecting information about competitors?

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All of the above

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Which of the following is not a recommended method of collecting competitive intelligence?

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Pay competitors' employees to become informants about their companies' strategies, markets, and trade secrets

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A competitive profile matrix

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allows the small business owner to evaluate her firm against competitors on the key success factors for the industry

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________ are the broad, long-range attributes the small business seeks to accomplish; ________ are the more specific targets for performance.

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Goals; objectives

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Which of the following is not a characteristic of a well-written objective?

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General

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The focal point of any company's strategy, whatever it may be, should be:

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its customers

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A ________ is a road map of the tactics and actions an entrepreneur draws up to fulfill the company's mission, goals, and objectives

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strategy

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________ spell(s) out the "ends" an organization is to achieve; ________ define(s) the "means" for achieving the ends

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Mission, goals, and objectives; strategy

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The relationship between a company's mission, goals, and objectives and its strategy is best described by which of the following statements?

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The mission, goals, and objectives spell out the ends the company wants to achieve, and the strategy defines the means for reaching them

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A strategy should

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All of the above

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A cost-leadership strategy

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works best when buyers' primary purchase criterion is price

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A cost-leadership strategy works well when

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All of the above

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Small firms pursuing a cost-leadership strategy have an advantage in reaching customers whose primary purchase criterion is

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price.

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Skatell's, a small jewelry store with three locations, designs and manufactures much of its own jewelry while its competitors (many of them large department stores) sell standard, "off-the-shelf" jewelry. As a result, Skatell's has developed a loyal customer base of people who seek unique pieces of jewelry. Skatell's reputation for selling unique and custom-designed jewelry allows them to benefit from a:

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cost-leadership strategy

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Cost-leadership may have which of the following inherent dangers?

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An overemphasis on costs to the elimination of other strategies

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A differentiation strategy

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All of the above

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A small company following a ________ strategy seeks to build customer loyalty by positioning its goods and services in a unique fashion

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differentiation

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A company that offers superior product quality, extra customer service, and fast delivery times is pursuing a

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differentiation strategy

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Which of the following is a danger in choosing a differentiation strategy?

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Focusing only on physical characteristics of a product or service and ignoring important

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The principle behind a ________ strategy is to select one or more market segments, identify customers' special needs, and approach them with a good or service designed to excel in meeting these needs

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focus

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Rather than attempting to serve the total market, the small firm pursuing a ________ strategy specializes in serving a specific target segment

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focus

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Shere Vincente operates a travel service that specializes in arranging trips for women, giving special attention to their needs and preferences, from security and comfort to activities and events designed to appeal to her target customers. Vincente is pursuing a ________ strategy.

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focus

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Small companies must develop strategies that exploit all of the competitive advantages of their size by

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All of the above

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In order for the control process to work, the business owner must

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identify and track key performance indicators

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Which of the following is NOT one of the four important perspectives a balanced scorecard should look at a business from?

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Competitor perspective

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The balanced scorecard ideally looks at a business from four important perspectives relating to:

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customers, internal factors, innovation, and finances

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The process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business is known as a:

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feasibility analysis

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Porter's five forces model assesses industry attractiveness by surveying these five factors

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potential entrants, suppliers, buyers, substitutes, and rivalry among existing firms

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The strongest of the five forces in most industries is

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rivalry among companies competing in the industry

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Switching costs, the number of buyers, and if the items represent a relatively small portion of the cost of finished products are key considerations regarding the

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bargaining power of buyers

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Low capital requirements, cost advantages that are not related to company size, and the lack of brand loyalty are considerations regarding the

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threat of new entrants to the industry

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Products or services that may be sought as alternative solutions-such as purchasing tax planning software rather than paying a CPA to assist with preparing your taxes-are referred to as

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substitute products

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The force from the five forces model that considers economies of scale, initial capital requirements, cost advantages relevant to company size, and lack of brand loyalty is the

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threat of new entrants

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The primary purpose of the five forces matrix is to

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assign values to each of the five elements

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The process in which entrepreneurs test their business models on a small scale before committing serious resources to launch a business that might not work is known as:

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business prototyping

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An analysis that determines the degree to which a product or service idea appeals to potential customers and identifies the resources necessary to produce the product or provide the service is referred to as:

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product or service feasibility analysis

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Conducting ________ research involves collecting data firsthand and analyzing it while ________ research involves gathering data that has already been complied and is available.

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primary; secondary

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One form of primary research is

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a focus group

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The financial feasibility analysis takes these aspects into consideration

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capital requirements, estimated earnings, and return on investment

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The final aspect of the financial feasibility analysis combines the estimated earnings and the capital requirements to determine the

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rate of return on the capital invested

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The primary purpose of a business plan is to

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guide a company by charting its future course and devising a strategy for success.

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A business plan is a written summary of:

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All of the above

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A business plan:

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All of the above

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A solid business plan:

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All of the above

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The second essential purpose for creating a business plan is:

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to attract lenders and investors.

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The three "tests" associated with a business plan are:

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reality, competitive, and value.

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The ________ test that a business plan must pass in order to attract financing from lenders and investors involves proving that a market for the company's product or service actually does exist and that the company actually can build it for the cost estimates included in the plan.

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reality

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The reality test that a business plan must pass in order to attract financing from lenders and investors involves proving:

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that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan.

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The competitive test that a business plan must pass in order to attract financing from lenders and investors involves proving:

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that the company can gain a competitive advantage over its key competitors.

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24) The value test that a business plan must pass in order to attract financing from lenders and investors involves proving:

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B) that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return.

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25) Potential investors tend to believe that if an entrepreneur cannot develop a good plan, the entrepreneur:

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C) probably lacks the discipline to run a business.

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26) Which of the following statements is not true according to the "two-thirds rule"?

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D) Only two-thirds of entrepreneurs will take the time to prepare a business plan.

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27) Before putting their money into a business idea, potential lenders and investors:

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D) All of the above

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28) ________ is an entrepreneur's best insurance against launching a business destined to fail or mismanaging a potentially successful company.

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B) Creating a solid business plan

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29) Which of the following is true regarding the process of building a business plan?

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D) All of the above

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30) Which of the following is true about the preparation of a business plan?

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B) The elements of the plan may be standard, but the content should reflect the unique aspects of the business and the excitement of the entrepreneur.

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31) Ideally, a business plan should range from ________ pages in length.

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B) 20 to 40

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32) The ________ is also known as the "elevator pitch" and is written last, but is included as the first part of the business plan; it should summarize all the relevant points in about two pages.

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D) executive summary

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33) The executive summary section of the business plan:

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D) All of the above

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34) The executive summary section of the business plan:

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C) should summarize the essence of the plan in a capsulated form and should capture the reader's attention.

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35) The ________ serves as the "thesis statement" for the entire business plan and is the broadest expression of a company's purpose and defines the direction in which it will move.

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B) mission statement

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36) The company history section of the business plan typically includes:

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D) All of the above

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37) The ________ highlights significant financial and operational events in the company's life and should concentrate on the company's accomplishments.

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B) company history

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38) Issues such as market size, growth trends, ease of market entry and exit, the presence of cyclical or seasonal sales trends, and the competitive dynamics of an industry appear in the ________ section of the business plan.

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C) business and industry profile

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39) The ________ acquaints lenders and investors with the nature of the business and the general goals and objectives of the company.

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C) business and industry profile

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40) ________ are broad, long-range statements of what a company plans to achieve in the future that guide its overall direction and addresses the question, "Why am I in business?"

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A) Goals

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41) ________ are short-term, specific targets which are attainable, measurable, and controllable.

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A) Objectives

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42) The section that describes "how to get there" and describes a competitive edge that sets the business apart is referred to as the:

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A) business strategy.

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43) In the business strategy section of the business plan, the entrepreneur should explain to investors:

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B) how she intends to accomplish the company's goals and objectives.

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44) Which of the following would be included in the description of the product or service section of the business plan?

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D) All of the above

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45) A ________ is a descriptive fact about a product or service; a ________ is what the customer gains from that characteristic.

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A) feature; benefit

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46) What is the lesson to be learned about writing a business plan from Leo Burnett's statement, "Don't tell people how good you make the goods; tell them how good your goods make them?"

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B) The plan should describe how the business will transform tangible product or service features into important, but often intangible, customer benefits.

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50) Which of the following questions will probably not be addressed in the marketing strategy section of the business plan?

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C) What exit policy do I have in place for my investors?

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51) When formulating a marketing strategy, small companies usually are most successful when they:

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B) focus on a particular market niche where they can excel at meeting customers' needs and wants.

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52) Defining the company's target market, its characteristics, and its potential is part of which element of the business plan?

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B) Marketing strategy

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53) Proving that a profitable market exists involves:

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D) A and B only

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54) An explanation of how the product will be distributed is contained within the ________ section of the business plan.

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B) marketing strategy

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55) When creating financial forecasts in a business plan for a proposed venture, an entrepreneur should:

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A) be sure that all forecasts are realistic.

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56) The focus of the competitor analysis section of the business plan is on:

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C) demonstrating your company's advantage over competitors.

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57) The plan of operation of the company within the business plan should detail:

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C) plans for keeping the important officers in place with the company.

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58) The organization chart is described in which section of the business plan?

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A) The plan of operation

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59) The form of ownership under which a company is organized appears in which section of the business plan?

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C) Plan of operation

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60) The loan proposal section of a business plan should include all but which of the following?

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A) A general request for funds without stating a specific dollar amount

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61) Which of the following statements about the preparation of a business plan is/are not true?

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A) Grammatical and spelling errors in a business plan don't really count since potential lenders and investors judge the quality of a plan by its content.

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62) The criteria lenders and investors use to evaluate the credit worthiness of entrepreneurs that are seeking financing-including capital, capacity, collateral, character, and conditions-are referred to as:

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C) the five C's of credit.

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63) A synonym for capacity is:

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A) cash flow.

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64) The most common reason cited by banks for rejecting small business loans is:

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B) undercapitalization and too much debt.

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65) Carly will be presenting her business plan to potential lenders and investors soon. Which of the following is not one of the suggested helpful tips for presenting the business plan?

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D) She should use a great deal of technological jargon to impress the audience with her knowledge.

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66) After presenting her business plan to a group of potential lenders and investors, an entrepreneur should:

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C) take a proactive approach by following up with every potential lender and investor to whom she makes a presentation.

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1) The key to choosing the right form of ownership is:

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B) understanding the characteristics of each form and knowing how they affect your business and personal circumstances.

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2) Which of the following issues would influence an entrepreneur's choice of a form of business ownership?

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D) All of the above

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3) The most common form of business ownership that is also the simplest to create is the:

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A) sole proprietorship.

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4) Marco is opening a new computer repair shop. He is owner and sole employee. He has paid the appropriate fees and licensing costs and begun his business. This is an example of a(n):

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D) sole proprietorship.

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5) The most critical disadvantage of the sole proprietorship is:

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A) the owner's unlimited personal liability.

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6) Which form of ownership generally has the least ability to accumulate capital?

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B) Sole proprietorship

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7) A partnership agreement defines how the partners will be compensated. Normally,

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A) partners are not entitled to salaries or wages, but are compensated by a share of the profits of the business.

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8) Probably the most important reason to have a partnership agreement is that:

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D) it resolves potential sources of conflict that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business.

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9) Which of the following issues would a typical partnership agreement address?

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D) All of the above

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10) All of the following are advantages of a partnership except:

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C) partnerships have the greatest ability to accumulate capital of all of the forms of ownership.

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11) In a partnership, the ________ partner(s) has (have) unlimited liability for the partnership's debts.

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D) general

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12) In a general partnership:

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A) each partner is held responsible for an agreement/decision made by any one of the partners.

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13) Which of the following is required to form a partnership?

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A) A general partner

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14) A special type of limited partnership in which all partners who, in many states must be considered to be professionals, are limited partners.

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A) Limited liability partnership (LLP)

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15) Which of the following is not true of a limited liability partnership?

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C) Although LLPs have many of the characteristics of partnerships, they are taxed as a corporation.

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16) A ________ partner is a person who makes financial investments in a partnership, does not take an active role in managing the business, and whose liability for the partnerships' debts is limited to the amount they have invested.

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A) limited

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17) A ________ partnership is composed of at least one general partner and at lease one limited partner.

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B) limited

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18) Acme Corporation is chartered in Delaware, but its primary area of operation is in South Carolina. In South Carolina, Acme would be considered a(n) ________ corporation.

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C) foreign

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19) A special type of partnership in which all partners, who in many states must be professionals, are limited partners is called:

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D) limited liability partnership.

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20) The "Das Spelunker" corporation, formed in Germany and conducting business in the U.S., is considered to be a(n) ________ corporation.

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A) alien

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21) Which of the following is true regarding the corporate form of ownership?

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D) All of the above

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22) A corporation receives its charter from:

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B) the state.

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23) Which of the following generally is not required by a Certificate of Incorporation?

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C) A statement of how stock proceeds will be used

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24) Which of the following statement(s) is/are true?

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D) All of the above

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25) Which of the following is not an advantage of the corporate form of ownership?

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B) It is the easiest and least expensive form of ownership to create.

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26) Which of the following is a disadvantage of the corporation form of ownership?

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C) Double taxation on profits

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27) In the ________ form of ownership, the business itself pays income taxes.

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C) corporation

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28) Carlos founded the "Taco Factory" 20 years ago as a family-oriented restaurant. Over the years as they grew the business, he incorporated and sold stock to outside investors. Recently the stockholders voted to seek liquor licenses and to sell beer and hard liquor in the restaurants. Carlos opposed this, citing the history of the restaurant's "family" environment, but was voted down. Carlos has experienced which drawback of the corporate form of ownership?

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D) The potential loss of control

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29) A disadvantage of the corporate form of ownership is when profits are taxed at the corporate rate and at the individual rate and this is referred to as:

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A) double taxation.

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30) An S corporation form of ownership overcomes which disadvantage of the regular or C corporation form of ownership?

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A) The double taxation issue

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31) Which of the following would be most likely to benefit from choosing S corporation status?

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D) A and C only

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32) Which of the following statements is not true regarding the liquidation of an S corporation?

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C) The owners file a statement of intent to dissolve with the secretary of state's office in each state where they conduct business.

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33) A limited liability company:

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A) is similar to an S corporation in that it is a cross between a partnership and a corporation.

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34) A limited liability company is most like a(n):

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D) S corporation.

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35) Which of the following documents must an entrepreneur file to create a limited liability company?

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D) A and C only

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36) Which of the following is not true regarding the limitations of professional corporations?

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A) Seventy-five percent of the shares of stock must be owned and held by individuals licensed in the profession of the corporation.

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37) A joint venture is different from a partnership in that the joint venture:

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A) can be formed only by two individuals.

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38) Income from a joint venture is taxed as the income from a(n):

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B) partnership.

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1) A franchise is a system of distribution in which semi-independent business owners pay ________ and ________ to a parent company in return for the right to become identified with its trademark, to sell its product or services, and often to use its business format and system.

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D) fees; royalties2) Franchises total annual sales represent nearly ________ percent of total annual sales and employ nearly one in ________ workers in the Unities Sates in more than 300 industries.

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2) Franchises total annual sales represent nearly ________ percent of total annual sales and employ nearly one in ________ workers in the Unities Sates in more than 300 industries.

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C) 17; 8

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3) ________ franchising involves providing the franchisee with a complete business system, with an established name, the building layout and design, accounting systems, and other elements while ________ franchising allows the franchisee to use the franchiser's trade name without distributing the products exclusively under the franchiser's name.

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C) Pure; trade name

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4) McDonald's is an example of a ________ franchise.

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D) pure

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5) Benefits of involvement in a franchise experience include:

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D) All of the above

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6) Which of the following is not a potential advantage of franchising for the franchisee?

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D) Limited product line

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7) Franchisers generally do which of the following regarding financial assistance to franchisees?

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B) Assist in finding financing and occasionally provide direct assistance in a specific area.

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8) A significant advantage a franchisee has over an independent business is the participation in the franchisor's ________ largely due to the ________ the franchise offers.

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C) centralized buying power: economies of scale

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9) Some franchisors offer ________ to give existing franchisees the right to exclusive distribution of brand name goods or services within a particular geographic area.

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A) territorial protection

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10) The failure rate for franchises is:

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C) lower than the average rate for new businesses.

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11) A recent study reports that the success rate of franchisees increases when a franchise system:

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D) All of the above increase the rate of success.

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12) Franchise royalty fees typically range from ________ to ________ percent with an average of 6.7 percent.

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C) 1; 11

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13) When it comes to purchasing products, equipment, and incurring other expenses, the franchiser:

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B) can set prices franchisees pay for the products but cannot set the retail price the franchisees charge.

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14) Which of the following is not a potential disadvantage of a franchise?

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D) All of the above are potential disadvantages of a franchise.

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15) A franchise myth is that:

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A) once the franchise is open, the franchisee has autonomy to run the business in what ever way he or she sees fit.

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16) Which of the following is an indication of a dishonest franchiser?

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D) All of the above

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17) The FTC's philosophy regarding the Uniform Franchise Disclosure Document (UFDD) focuses on:

answer

C) providing information to prospective franchisees and helping them make wise decisions.

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18) Which of the following should make a potential franchisee suspicious about a franchiser's honesty?

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A) Claims that the franchise contract is a standard agreement and that there is no need to read it or have an attorney look it over

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19) In addition to reading the franchiser's UFDD, it would be wise for the potential franchisee to seek a franchise that offers which of the following?

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D) All of the above

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20) Franchises have experienced three major growth waves since its beginning that include a focus on:

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C) rapid growth, the service sector, and specific market niches.

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21) A study by the International Franchises Association reports that minorities own more than ________ percent of all franchises and women own ________ percent of franchises.

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D) 20;25

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22) ________ is an emerging international market for U.S. franchisers that is expected to realize the highest future growth rate.

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D) China

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23) One of the major trends in franchising is the ________ of American franchise systems.

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C) internationalization

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24) The principle of putting a franchise's products or services directly in the paths of potential customers with smaller, less expensive outlets is called:

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B) intercept marketing

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25) A franchise trend in which owners of independent businesses become franchisees to gain the advantage of name recognition is called:

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C) conversion franchising

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26) In a ________ , a franchisee has the right to create a semi-independent organization in a particular territory to recruit, sell, and support other franchisees.

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B) master franchise

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27) A method of franchising that gives the right to create a semi-independent organization in a particular territory is a:

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B) master franchise.

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28) When the franchiser has the right to establish a semi-independent organization in a particular territory to recruit, sell, and support other franchises, it is known as a ________ franchise.

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D) master

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29) McDonald's recently set up several small franchises in nontraditional locations such as a hospital, a college campus, an airport, a subway station, and a sports arena. These locations are based on the principle of:

answer

B) intercept marketing.

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30) Chris Jaffe, the owner of a small independent doughnut shop, is worried that a large doughnut franchise will open an outlet near her location and take away business. Taking a proactive approach, Jaffe contacts the franchise, and after a few months of negotiations, becomes a franchisee. Jaffe is an example of which trend in franchising?

answer

B) Conversion

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31) Establishing a Baskin-Robbins franchise inside a Blimpee's franchise is an example of ________ franchising.

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C) cobranding

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1) The due diligence process of analyzing and evaluating an existing business:

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D) All of the above

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2) When done correctly, the due diligence process will:

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A) reveal both the positive and negative aspects of an existing business.

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3) Advantages to buying an existing business that you do not have with a startup include:

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C) inventory is in place and trade credit is established.

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4) Which of the following is a potential disadvantage of purchasing an existing business?

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D) All of the above

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5) When evaluating the assets of an existing business, the inventory:

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C) should be judged on the basis of its market value, not its book value.

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7) The first step an entrepreneur should take when buying an existing business is to:

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C) analyze his or her skills, abilities, and interests in an honest self-audit.

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8) When acquiring a business, the buyer should:

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D) All of the above

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9) Which of the following statements concerning financing the purchase of an existing business is true?

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C) The buyer should be able to make the payments on the loans out of the company's cash flow.

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10) Which of the following statements concerning financing the purchase of an existing business is not true?

answer

C) The buyer should wait until late in the purchase process to arrange financing to avoid processing fees in case the deal falls through.

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11) Perhaps the ideal source of financing the purchase of an existing business is:

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C) the seller of the business.

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12) To ensure a smooth transition when buying an existing business, a buyer should:

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D) All of the above

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13) The most common reasons owners of small- and medium-sized businesses give for selling their businesses are:

answer

B) boredom and burnout.

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15) Laurette has entered into a contract with Jackson to purchase his retail music shop. Jackson's lease on the existing building (which is in an excellent location) has five years remaining. If Laurette wants the lease to be part of the business sale:

answer

C) A and B are correct.

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16) Generally, a seller of an existing business can assign any contractual right to the buyer

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C) A and B are correct.

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17) During the acquisition process, the potential buyer usually must sign a ________, which is an agreement to keep all conversations and information secret and legally binds the buyer from telling anyone any information the seller shares with her.

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A) covenant not to compete

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18) Which of the following is required for the covenant not to compete to be enforceable?

answer

A) Part of a business sale and reasonable in scope

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19) Sources of potential legal liabilities for the buyer of an existing business include all but which of the following?

answer

D) Errors and omissions

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20) A toy manufacturer is sued based on the claim of injuries caused by a product it makes. This is an example of a:

answer

A) product liability lawsuit.

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21) When evaluating the financial position of a business he or she is considering buying, an entrepreneur should examine:

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D) All of the above

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22) In a business sale, a letter of intent:

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D) All of the above

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23) During the acquisition process, the buyer and the seller sign a ________, which spells out the parties' final deal and represents the details of the agreement that are the result of the negotiation process.

answer

D) purchase agreement

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24) Which of the following statements about valuing a business is true?

answer

B) Business valuation is partly art and partly science.

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25) The main reason a buyer purchases an existing business is for:

answer

A) its future income and profits for earning potential.

question

26) A method of valuing a business based on the value of the company's net worth is the:

answer

A) balance sheet technique.

question

27) A valuation method that is more realistic than the balance sheet technique, because it adjusts book value to reflect actual market value, is the:

answer

D) adjusted balance sheet method.

question

28) Which of the following valuation methods does not consider the future income-earning potential of a business?

answer

A) Balance sheet technique

question

29) When valuing inventory for a business sale, the most common methods used are:

answer

C) cost of last purchase and replacement value of inventory.

question

30) Business valuations based on balance sheet methods suffer certain disadvantages, including:

answer

B) they do not consider the future earning potential of the business.

question

32) The valuation approach that considers the value of goodwill is the:

answer

B) excess earnings method.

question

35) Which of the following is considered an opportunity cost of buying an existing business?

answer

A) The salary that could be earned working for someone else and the owner's investment in the

question

36) The amount the seller of a business receives for "goodwill" is taxed as:

answer

B) regular income.

question

37) The capitalized earnings approach determines the value of a business by capitalizing its expected profits using:

answer

A) the interest rate that could be earned on a similar risk investment.

question

38) If a business buyer estimates that 20 percent is a reasonable rate of return for an existing business expected to produce a profit of $27,000, its capitalized value would be:

answer

C) $135,000.

question

39) In the earnings methods of business valuation, the rate of return associated with a "normal risk" business is:

answer

B) 25 percent.

question

40) Which method of business valuation relies on three forecasts of future earnings: optimistic, pessimistic, and most likely?

answer

C) Discounted future earnings

question

41) The ________ approach to valuing a business assumes that a dollar earned in the future is worth less than that same dollar is today.

answer

D) discounted future earnings

question

42) Which of the following valuation techniques is best suited for determining the value of service businesses?

answer

A) Discounted future earnings approach

question

43) The ________ approach to valuing a business uses the price-earnings ratios of similar businesses to establish the value of a company.

answer

D) market

question

44) Which of the following is a disadvantage of the market approach to valuing a business?

answer

D) All of the above

question

45) Which of the following is a drawback of the market approach of evaluation?

answer

B) It may underrepresent earnings.

question

46) You are considering purchasing Babcock Office Supply. You estimate that the company's earnings next year will be $67,400. You have found three similar companies whose stock is publicly traded. Their P/E ratios are 6.8, 7.4, and 7.1. Using the market approach, you estimate Babcock Office Supply to be worth:

answer

A) $478,540.

question

47) A company's P/E ratio is:

answer

A) the price of one share of its common stock divided by its earnings per share.

question

48) Some business brokers differentiate between the types of buyers: ________ buyers see buying a business as a way to generate income and ________ buyers view the purchase as part of a larger picture to offer a long-term advantage.

answer

B) financial; strategic

question

49) This type of business sale is best for those entrepreneurs who want to step down and turn over the control of the company to the new buyer as soon as possible.

answer

A) Straight business sale

question

50) Which of the following strategies would not be suitable for an entrepreneur who wants to surrender control of the company gradually?

answer

C) Straight business sale

question

51) Mitchell Schlimer, founder of the Let's Talk Business Network, a support community for entrepreneurs, says that, initially, about ________ percent of small business owners who sell their companies to larger businesses remain with the acquiring company.

answer

D) 90

question

52) ________ gives owners the security of a sales contract but permits them to stay at the "helm" for several years.

answer

A) Earn-out

question

53) A(n) ________ allows owners to "cash out" by selling their companies to their employees as gradually or as quickly as they choose.

answer

D) ESOP

question

54) An ESOP:

answer

D) All of the above

question

55) To avoid a stalled deal, a buyer should:

answer

C) go into the negotiation with a list of objectives ranked in order of priority.

question

56) The process of investigating the details of a company that is for sale to determine the strengths, weaknesses, opportunities and threats facing it is known as the:

answer

B) due diligence process.

question

1) ________ is the process of creating and delivering desired goods and services to customers and involves all of the activities associated with winning and retaining loyal customers.

answer

A) Marketing

question

2) For an entrepreneur, a business plan:

answer

D) contains both a marketing plan and a financial plan.

question

3) The focus of a small company's marketing plan should be on:

answer

B) the customer.

question

4) Small businesses can compete with larger rivals with bigger budgets by employing unconventional, low-cost creative techniques known as:

answer

C) guerrilla marketing strategies.

question

5) Warren Cassell, owner of Just Books, a very small book store, makes special orders for customers at no extra charge, provides free gift-wrapping, conducts out-of-print book searches, offers autographed copies of books, hosts "Meet the Author" breakfasts, and publishes a newsletter for book lovers. By offering his customers lots of "extras" they do not get at larger bookstores, Cassell has won a growing base of loyal customers. Cassell is relying on which marketing strategy?

answer

D) Guerrilla marketing

question

6) Guerilla marketing is a marketing approach that takes an unconventional, low-cost and creative approach to marketing that can give ________ a competitive edge over ________ competitors.

answer

A) small companies; larger

question

7) Which of the following is not one of the objectives a guerrilla marketing plan should accomplish?

answer

B) Determine how the company will be able to serve all customers.

question

8) The specific group of customers at whom a company aims its good or services is referred to as a:

answer

D) target market.

question

9) Successful marketing requires a business owner to:

answer

D) All of the above

question

10) The foundation of every business is:

answer

B) satisfying the customer through a customer-driven marketing strategy.

question

11) Which of the following statements concerning a company's target market is false?

answer

B) A "shotgun approach" to marketing-trying to appeal to everyone rather than to only a small market segment-is the most effective way to compete with large companies and their bigger marketing budgets.

question

12) One of the greatest marketing mistakes small businesses make is:

answer

A) failing to identify the target market.

question

13) Studies of shifting patterns in age, income, education, race, and other population characteristics are the subject of:

answer

B) demographics.

question

14) Tracking ________ patterns can enable entrepreneurs to adjust their strategies accordingly to better position them to take advantage of the opportunities these trends may create.

answer

B) demographic

question

15) A common mistake entrepreneurs make is:

answer

A) assuming that a market exists for their product or service.

question

16) Which of the following statements concerning marketing research is false?

answer

C) Small companies are at a distinct disadvantage compared to larger ones when conducting market research since it is so expensive.

question

17) Which of the following techniques does marketing consultant Faith Popcorn recommend to small business owners interested in tracking market trends?

answer

C) Read as many current publications as possible.

question

18) Entrepreneurs can find the right match based on trends, their products or services, and the appropriate target markets through:

answer

D) market research.

question

19) Your friend has decided to conduct market research to assist in making informed decisions for his small business. What should you recommend as the first step in the market research process?

answer

B) Define the objective

question

20) An individualized (one-to-one) marketing campaign requires business owners to:

answer

D) All of the above

question

21) Which of the following is not a primary market research source?

answer

D) All of the above are sources of primary market research.

question

22) Which of the following is not a secondary source of market research data?

answer

C) Focus groups

question

23) A process in which computer software that uses statistical analysis, database technology, and artificial intelligence finds hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customers' behavior is know as:

answer

B) data mining.

question

24) One "natural" advantage small businesses have over large businesses, which can be a significant competitive advantage, is:

answer

A) by building a community with customers and connecting with them on an emotional level.

question

25) Which of the following guerrilla marketing tactic(s) allow a small company to utilize relationship marketing successfully?

answer

D) All of the above

question

26) The marketing approach that is most effective today for a small business is:

answer

C) niche marketing.

question

27) Which of the following was not identified as one of the guerrilla marketing principles in your text?

answer

A) Strive to be like everyone else so that your company "fits in."

question

28) A combination of news covered by the media that boosts sales without having to pay is best described by the term:

answer

C) public relations.

question

29) A marketing concept designed to draw customers into a store by creating a kaleidoscope of sights, sounds, smells, and activities, all designed to entertain-and of course, sell, is:

answer

A) entertailing.

question

30) Some of the most successful companies interact with their customers regularly, intentionally, and purposefully to create meaningful and lasting:

answer

A) relationships.

question

31) A key customer benefit of a product or service that sets it apart from the competition answers the critical questions every customer asks: "What's in it for me?" and is known as:

answer

B) the unique selling proposition (USP).

question

32) The unique selling proposition (USP) focuses on:

answer

B) a unique customer benefit that answers the question: What's it in for me?

question

33) A ________ is a company's "face" in the marketplace and communicates a key message to the target market.

answer

D) brand

question

34) ________ is the process of communicating a company's unique selling proposition to its target customers in a consistent and integrated manner.

answer

A) Branding

question

35) Examples of ________ include a presence on Facebook, LinkedIn and Twitter.

answer

C) social media marketing

question

36) ________ can be an effective part of a guerrilla marketing strategy, enabling an entrepreneur to economically communicate with large numbers of customers.

answer

D) Blogging

question

37) An effective approach to creating effective online videos is to take an ________ approach to present information in an entertaining way.

answer

B) "edutainment"

question

38) Most customers never complain to the business; in fact, for every complaint that a company receives, there are ________ other complaints that go unspoken.

answer

D) 17

question

39) How can a company achieve stellar customer service and satisfaction?

answer

D) All the above

question

40) The majority of customers who stop patronizing a particular store do so because:

answer

C) an indifferent employee treated them poorly.

question

41) A recent survey reports that ________ percent of customers say that they will return to a business after a negative customer service experience if the company offers an apology, a discount, or proof that its customer service will improve.

answer

D) 92

question

42) A study by the National Science Foundation concluded that when pay is linked to performance, employees' motivation and productivity climb by as much as ________ percent.

answer

C) 63

question

43) Research shows that repeat customers spend ________ percent more than new customers.

answer

C) 67

question

44) In your training program, you stress to all new employees the importance of customer satisfaction, citing the fact that ________ of the average company's sales come from present customers.

answer

C) a majority

question

45) A global customer loyalty consulting firm reports that a company must land ________ to ________ new customers to offset the impact of one lost loyal customer.

answer

C) 12: 20

question

46) Companies with a customer focus typically ask their customers all but which of the following questions?

answer

D) What have our competitors done wrong?

question

47) The philosophy of producing a high-quality product or service and achieving quality in every aspect of the business and its relationship with the customer, with a focus on continuous improvement in the quality delivered to customers is.

answer

A) total quality management, or TQM.

question

48) The process of systematically creating the optimum experience for customers every time they interact with the company is:

answer

C) customer experience management (CEM).

question

49) Which of the following is not a suggestion of a means of focusing on the customer?

answer

A) Seeing the customer's point of view.

question

50) Which of the following is a way to improve customer service?

answer

D) All of the above

question

51) The total quality management (TQM) concept:

answer

A) strives to achieve quality not just in the product or service itself, but in every aspect of the

question

52) Companies with strong reputations for quality follow certain guidelines, such as:

answer

A) establishing long-term relationships with suppliers.

question

53) ________ pay the bills: without them, you have no business.

answer

D) Customers

question

54) Location, delivery services, effective use of easy-to-use technology and multiple communication options are examples of:

answer

A) convenience.

question

55) A marketing strategy that relies on three principles to speed products to market, shorten customer response times in manufacturing, and deliver and reduce the administrative time required to fill an order is:

answer

B) time compression management (TCM).

question

56) ________ is the key to future success and small companies can detect and act on new opportunities faster than large companies.

answer

A) Innovation

question

57) What can a company do to achieve stellar customer service and satisfaction?

answer

D) All of the above

question

58) The key ingredient in the superior customer service equation is:

answer

D) friendly, courteous, well-trained people delivering customer service.

question

59) Time compression management (TCM) involves:

answer

D) All of the above

question

60) Which of the following is not a suggestion for using time compression management (TCM)

answer

C) Pay workers more if they do their jobs the same way- only faster.

question

61) To attract potential customers, a ________ can serve multiple business purposes, including keeping customers updated on new products, enhancing customer service, and promoting the company.

answer

C) blog

question

62) The Internet offers entrepreneurs tools to provide existing and potential customers with meaningful information:

answer

D) in an interactive rather than passive setting.

question

63) In addition to treating employees with respect, smart entrepreneurs see customer service as an investment that builds long-term value for their companies through:

answer

D) All the above build long-term customer service value.

STUDY

Advertising Business Management Care For The Elderly Creativity And Innovation Implementing The Plan Management Marketing Multi Domestic Strategy Parol Evidence Rule Principles Of Marketing Thank You Note

Marketing Fundamentals With Bob Final Exam – Flashcards 317 terms

Gabriela Compton

317 terms

Preview

Marketing Fundamentals With Bob Final Exam – Flashcards

question

Independent retailer

answer

one of a few units under the same ownership, 10 or fewer stores Ex. A small pet store

question

Retailing

answer

where all activities directly relate to the sale of goods and services ultimately to the final sale for personal use

question

Chain Store

answer

11 or more stores under the same owner Ex. Starbucks

question

Franchise

answer

independent owner-operated licensed by a larger support organization. Ex. McDonald's

question

Product & trade franchising

answer

Contractual vertical marketing arrangement, physical product manufactured, exclusive territory to manufacture

question

Business format franchising

answer

A recognized name that has expertise, product or service, like H&R Block Ex. You'll stop at a shell before you stop at a mom and pop gas station.

question

Department Store

answer

Large stores organized into many departments with limited lines that would be a competitive line with a store in the mall. Ex. Dillards

question

Scrambled merchandising

answer

Merchandise that is a little from everywhere, allows to sell merchandise at a higher margin because it is convenient, like in a grocery store. At Walgreens they have cheap merchandise to drag in customers to buy expensive drugs. Ex. playing cards, patio furniture

question

Specialty Store

answer

Single-limited lines/High margin/High Service Ex. Foot locker, lush

question

Supermarket

answer

Large departmentalized self-serve retailer that specializes in food and some non-food items Ex. WinnDixie

question

Drug Store

answer

Pharmacy related items, very scrambled merchandising

question

Convenience Store

answer

Limited lines, high margin, high turnover, fast and convenient. Will pay more for convenience

question

Discount Store aka mass merchandiser

answer

Full-line discount store, moderate to low prices with less atmosphere and service than a department store with high volume and turnover. Ex. Walmart, Target

question

Category superstore aka specialty discount store

answer

Single to very limited line, low prices, high turnover, more-or-less self service (category killers) Ex. Toys-R-Us

question

Category Killers

answer

Destroy profit potential for all others in their category's for a better option for you. Ex. When you need something that will be cheaper at home depot but takes more time to get, so you can go to a specialty retailer and get more convience but pay more. Niche

question

Warehouse membership club

answer

Limited assortment in bulk to members only Ex. Sams, Costco

question

Off-price retailer

answer

Buy the unsold merchandise from other retailers and sell it Ex. Marshalls, big lots

question

Factory Outlet Store

answer

verticalls-integrated off -price retailer, cheaper than in a regualr store. Ex. Kate Spade, MK

question

Vending

answer

Ex. Pepsi machines

question

Direct Retailing

answer

FACE TO FACE Ex. Door to door selling

question

Direct Marketing

answer

No intermediaries, comes by a mail catalogue, shop at home, telemarketing

question

Retailing Mix

answer

The 4 P's: 1. Product 2. Promo, this gives you an opportunity to enhance partnership with co-op advertising 3. Place of Locations 4. Price personell

question

Ted Turner

answer

Ran TV when no one else did over night, 24/7 news channel

question

Profit Maximization

answer

Total revenue as large as possible relative to total costs, activities directed sales to have max profit Ex. If a hotel is 99% full, they should probably raise the prices.

question

Market Share aka penetration pricing

answer

Gain trial, establish distribution and dominant position

question

Sales Maximation

answer

Need to raise cash or clear out volume, total dollars Ex. Easter merchandise that needs to be cleared out after the holiday is over

question

Status guo

answer

Maintaining existing prices aka satisfactory prices Ex. CVS will take lower prices by not selling pharmacy drugs at higher prices, so the government is not up their ass, no troubles Ex. Auto repair store not charging enough money, do better work, that way the customers are taken care of first

question

Follow the leader pricing

answer

Aka meeting competitors Ex. Auto and steel pricing, waiting for one company to release something and seeing what their prices are Ex. Tom thumb Raises prices when shell raises prices

question

Establish pricing goals

answer

Better stated, establishing marketing goals, trade offs

question

Break even analysis

answer

How much must you sell to cover fixed prices? Are you better off buying treasuries instead of selling?

question

Break Even Example on test

answer

Selling price is $225 VC is 145 Gross profit= $80 FC= $8000 Break even at $100

question

Setting the Price

answer

1. Est pricing goals 2. Est Sales and profit at different prices 3. Decide if demand is elastic or inelastic

question

Price Skimming

answer

Price maximization strategy, come in with high initial price, lowering it when and if competition occurs

question

Penetration Pricing

answer

Come in with low initial price to match or pre-empt competition

question

Unfair trade practices

answer

Floor on overall prices, generally ignored unless you practice retail, 6% retail mark-up, 2% whole sale market (a joke, not enforced)

question

Predatory Pricing

answer

Specifically attempting to drive competition out of business, not allowed to do but what you want to do Ex. 1906 Standard oil: Marketplace for oil but didn't want competition so you sell gas for 2.75 when dodges is selling for 3.25. When dodges goes out of business then you raise your prices.

question

Price Fixing

answer

2 or more firms conspire to set prices Ex. 2 Airlines run high everyday prices Ex. Medical care set a minimum fee for service CANNOT DO

question

Price Discrimination

answer

Charging different prices for the same item to different customers, quantity discounts make it legal

question

FOB (Free on Board)

answer

Point at which title passes

question

FOB Origin

answer

Title passes at seller's dock

question

FOB Origin pricing

answer

Buyer pays for transportation, price will be higher the further it travels

question

Uniform delivered pricing aka Freight absorption pricing

answer

Same price for everyone everywhere, shipping is included in price

question

Zone Pricing

answer

Different prices depending on the zone you live in Ex. Charging shipping by zip code

question

Basing point pricing

answer

Select one or more points as bases and charge shipping from there, irregardless of where is shipped from Ex. Buying something from a company in Huston, charging shipping from Huston even know they have to send it from Washington.

question

Captive Pricing

answer

Give you something or ill sell it to you cheap and make the money selling component parts Ex. Giving a free paper towel holder so you buy paper towels Ex. Selling a printer cheap but charging expensive prices on cartridges

question

Leader pricing aka Loss leader pricing

answer

Product priced below cost as traffic builder Ex. Making customers happy with a coupon so they get into the store and buying more than the coupon covers

question

Bait pricing aka bait and switch

answer

Luring you in for something that they don't really have Ex. Only having a few tv's on stock for $75

question

Price bundling

answer

Package multiple items together so you have to buy them all Ex. Tv channels include Disney, nick, abc all for one price

question

Intro stage

answer

High levels of advertising to gain awareness/trial

question

Stages of advertising

answer

1. Intro stage 2. Growth stage 3. Maturity to Early Decline

question

The promo mix

answer

1. Advertising 2. Publcity/PR 3. Sales Promotion 4. Personal Selling

question

Advertising

answer

Marketer paid , impersonal mass communication

question

Competitive advertising

answer

Persuade, secondary demand

question

Pioneering advertising

answer

inform, primary demand

question

PR publicity

answer

Ex. CNN running a story on their employees volunteering

question

Growth Stage

answer

Fighting it out for market share (persuade), Early: reduce sales promo to increase profits, Later: more sales promo to defend turf

question

Maturity to Early Decline

answer

Remind if you are a master brand or have a cash cow Ex. a small commercial that shows your brand to remind there is still room for jello Divest when the cash cow becomes a dog

question

Factors influencing the Promo mix

answer

1. Type of product 2. Nature of Target Market 3. Funds available

question

Institutional advertising

answer

Promotes a company image, a product class, or advocates a position Ex. Got milk, even when you see got Jesus Ex. cigarettes company trying to defend buyers for their rights

question

Product advertising

answer

Promotes a specific product or service, Pioneering, primary demand, inform, try something new

question

Direct-action advertising

answer

Seeks immediate action Ex. an 800 # on an infomercial

question

Indirect-action advertising

answer

Builds image, position, long term awareness, loyalty Ex. 30 sec spot on tv that you arent going to run out and get the product, effect is later with encounter

question

Comparative advertising

answer

Us vs them Ex. A laundry detergent says our brand is 10x better than downy

question

Cooperative advertising

answer

Costs shared between producer and retailer Ex.

question

DAGMAR

answer

Defining advertising goals for measured advertising results Ex. you want 66% of target to be aware, survey was conducted 90 days after campaign launch

question

What is the first thing to do in developing an ad campaign?

answer

Determine campaign objectives

question

Adverting appeal aka unique selling proposition aka Commercial positioning concept (CPC)

answer

Phrase that ties directly to your propositioning/ differential advantage Ex. "Good till the last drop"-Maxwell house Ex. When you hear Just do it, you think Nike

question

To reach a wide diverse audience:

answer

Tv, magazines

question

To reach a narrow specialized audience:

answer

Specialty cable channels like Golf Network

question

Other ways to reach major advertising media

answer

1. Customers must find you doing a Google search 2. Product placement in other forms of media

question

Coupons

answer

Price reduction at the time of purchase, low redemption rates and high cost, redeemed by current shoppers

question

Sales Promotion

answer

Incentive to consumers for the short term to increase sales

question

Rebates

answer

direct from the manufacture Ex. Pepsi used to do a $10 super bowl if you bought 4 boxes of soda.

question

Premiums

answer

A free item when you buy something else. Ex. Free bread when you buy pasta

question

Self-liquidating premium

answer

Costs factored into promo deal, YOU CAN BUY THE PREMIUM ITEM SEPERATELY

question

Contests

answer

Must complete a task to win

question

Sweepstakes

answer

Random choice winner

question

Loyalty marketing programs aka frequent buyer program

answer

Have a long-term objective, long term relationships Ex. hotels give a free night with 10 hotel purchases

question

Sampling

answer

You get to try something in store in hopes they will buy in the future, can come by mail or in store

question

Point of purchase aka display equipment

answer

Something you want to sell as an impulse buy Ex. que line at Marshalls

question

Trade Allowances

answer

Price reduction, rebate, free merchandise for some type of PERFORMANCE

question

Push Money

answer

Financial incentives to inside sales people in retail outlets, Ethically questionable Ex. w/ panasonic worker going into a best buy trying to get them to sell more tvs and will give $20 for every tv sold

question

Non discretionary items

answer

Ex. toilet paper, salad dressing Running a buy one get one free, not using both items twice a day. TRAFFIC BUILDER

question

Discretionary items

answer

People don't need to product buy will use more. Ex. Coke, when you have 2 12 packs you'll drink more when you don't have just half a 12 pack.

question

Trade Shows

answer

Where business see each other ideas

question

Push Strategy

answer

Promotional money directed to channel members and you must do this if your product is undifferentiated and you are not a category leader Ex. push it in the door on a display to sell it out

question

Pull strategy

answer

Promotional money directed to the ultimate consumer and you MAY do it if you have a competitive advantage or you are a category leader Ex. Get customers coming in looking for an item

question

Marketing

answer

An organized system of activities designed to get the money out of someone else's pocket, into yours. PRODUCT, PROMOTION, PLACE, PRICE,

question

Exchange

answer

Trading something of value to someone else and gaining something of grader value to you

question

Production Orientation

answer

Focus on internal capabilities of the organization and what it can most readily produce. Primary focus: cut costs and keep prices low Ex. planting trees and in 10 years hoping there is a market for them

question

Sales Orientation

answer

Employment of sales force and aggressive sales tactics to push that which the organization can most readily produce. Ex. producing bird feeders and they stop selling a lot, having school boys go around the block and help sell them

question

Market Orientation

answer

Focus on the wants and needs of the target customers and create offerings to satisfy those wants and needs. you want the message behind the gift, walmart employee's know exactly where the item is that you are looking for

question

Societal Marketing Orientation

answer

Having the organization committed to contributing to the best interests of customers and society. Ex. making levis without chemical dyes, mercury free batteries

question

Production Orientation is from

answer

after WW2, oldest

question

Sales Orientation is from

answer

50's and 60's, 2nd oldest

question

Marketing Orientation is from

answer

Late 60's, 3rd oldest

question

Societal Marketing Orientation

answer

Early 90's, newest

question

Marketing Concept

answer

All focus is on the customer to make them happy Ex. Home Depot offering an alternative that is much cheaper

question

Preconventional Morality

answer

A child state or instant gratification, what can I get away with, not concerned about repeat business

question

Conventional Morality

answer

Do it because everyone else does it

question

Postconventional Morality

answer

Being ethically-focused and holding a personal value system

question

External marketing environment aka uncontrollable variables

answer

All the elements including social, demographic, economic, technological, political-legal, and competition, outside the organization

question

What variables are the most difficult external variable to forecast and influence?

answer

Social

question

Demographics

answer

Sex, age, race, income, location, family status. Be careful of segmenting.

question

Consumer Product safety Commission (CPSC)

answer

protects health and safety of consumers that are in and outside of your home

question

Federal trade commission (FTC)

answer

Prevents unfair trade practices including anti-trust and deceptive advertising. Ex. Advertising a free trial of internet and the only way to cancel was to call an unavailable 800 number. FTC will intervene and put it to rest.

question

Corrective Advertising

answer

Clarifying statements that could be misleading ex. "You must exercise and eat right for this pill to work"

question

Cease and desist

answer

Stop it immediately

question

Food and Drug Administration (FDA)

answer

Safety of food and drug products

question

Ethnic communities and identities

answer

Back in the old days, America was a melting pot, now it is a mix of evrything and places grow by being more diverse.

question

What is a downside to globalization?

answer

loss of jobs, outsourcing, and lower wages

question

Culture

answer

values, norms, attitudes, behaviors, and other meaningful behaviors that characterize a nation or people. The normal way to act in a specific group of people.

question

Global Marketing Standardization

answer

Selling the exact same product everywhere in the world

question

Tariff

answer

A tax levied on goods ENTERING a country

question

Quota

answer

A limit on what can be IMPORTED into the country

question

Boycott by nations:

answer

Exclusion of all products from certain nations or organizations

question

Boycott by individuals or groups:

answer

Refusal to buy products from certain nations or organizations

question

Exchange Control

answer

Having a difficult time bringing your money from another country into another, sometimes bartering instead (Pepsi and vodka)

question

Marketing grouping

answer

2 or more nations working together to form a common trade area (NAFTA)

question

What is the lowest risk and return global marketing strategy?

answer

Exporting

question

What is the highest risk and return global marketing strategy?

answer

Direct investment

question

What are the 5 components to global marketing strategy?

answer

export, licensing, contract manufacturing, joint venture, and direct investment

question

Trade agreement

answer

An agreement by 2 or more nations trying to reduce or eliminate tariffs, quotas, boycotts, and exchange control.

question

Exporting

answer

LOWEST RISK AND RETURN, selling domestically produced products to overseas

question

Licensing

answer

Allowing another firm to use your name, recipes, trademarks

question

Contract manufacturing

answer

Outsourcing your manufacturing process to a foreign or domestic firm Ex. Asia manufacturing New Balance shoes

question

Joint venture

answer

2 organizations working together using each others advantages to make one great company

question

Direct Investment

answer

HIGHEST RISK AND RETURN, buying another firm out or starting your own business.

question

Need Recognition

answer

INTERNAL STIMULI Ex. "I'm hungry, where should I go eat" Figuring out where you are at currently, and deciding what you want to be, what you want to do about it

question

Information Search

answer

Being on your way to hardies (internal stimuli, you decided where you would go before you left the house), and seeing a buffet on the way with a good deal (external stimuli, only seeing it on the way there, no internal stimuli used in the decision making.)

question

Evaluation of alternatives

answer

When the information search is completed, or at least for the time being

question

Evoked Set

answer

What is still in the pool for consideration

question

Purchase

answer

Based on the products attributes and intangibles it offers

question

Cognitive dissonance

answer

Tension or anxiety that happens after the purchase. Ex. Worrying you spent too much money

question

Routine response behavior

answer

The least complex with the lowest involvement and low cost impulse items

question

Limited Decision-making

answer

Moderately quick limited-consequence decision. Ex. you need a fridge and you'll go find one when yours brakes, you don't generally plan it

question

Extensive decision making

answer

Major decision with significant risk consequences Ex. buying a car, condo, you'll think about it a lot

question

Subculture

answer

MOST IMPORTANT groups of consumers with similar component lifestyles

question

Component lifestyle

answer

Lifestyles will vary from one person to another

question

Reference group

answer

groups that influence an individuals AIO's and purchasing behavior

question

Primary membership group

answer

direct, people who meet regularyl, family co-workers

question

Secondary membership group

answer

direct, meet with less frequently, like in clubs

question

Direct membership group

answer

You actually belong to it

question

aspirational group

answer

indirect, desire to belong and want to emulate, you aspire to belong to it

question

Nonaspirational group

answer

indirect, You want NOTHING to do with it or its members

question

Opinion leaders

answer

Persons looked up to and who influence opinions of others

question

Selective exposure

answer

Chose what you want a customer to see or not Ex. you wouldn't advertise on hip hop tv to reach bob

question

Selective perception

answer

Only noticing certain things but another person could see it differently

question

Selective Distortion

answer

Distorting what you hear or see to create consistency

question

Selective retention

answer

Only remember what matches your beliefs, lifestyle Ex. A gambler only notices his wins, not his losses

question

Decision support system

answer

In house data and info system (dss). Where you go to update info or manipulate it to see where your next step is. Also sees trends

question

Marketing Research

answer

Process of planning, collecting, analyzing data relevant to a specific marketing decision.

question

Defining the problem

answer

First thing you should do, can be the hardest.

question

Situation analysis

answer

What is happening in the external environment? Ex. Weather, financial problems

question

Tentative hypothsis

answer

Cause and effect Ex. smoking a cigarette and getting erectile dysfunction

question

Correlation

answer

numbers running together ex. shark attacks and ice cream sales. More people in the water and sharks come

question

Secondary Data

answer

Info already available in house or online. Quick and dirty, preliminary, quality and accuracy issues.

question

Plan research design

answer

Questions to be answered and how and what data should be collected and analyzed. This is information collected for the first time.

question

Collect primary data

answer

precisely relevant to the problem at hand

question

In-home interview

answer

High costs, high quality data, can demonstrate, but rapidly disappearing

question

Mall intercept

answer

Might not attract the right group, moderate cost needs to be brief, you can demonstrate. Wouldn't be able to do for a political survey but a vacuum would be okay.

question

Telephone interview

answer

highly refused, cost is rising, not many people have a land line, no demonstration, low reliability, good for political events.

question

Mail survey

answer

Low quality and cost, might not reach the right group. non-response errors

question

Executive Interview

answer

a b2b equivalent of an in interview. Might be viable because you can use a smaller sample size, high costs

question

Focus groups

answer

7-10 people, might have an unintentional bias that will pollute results. Not always reliable.

question

Watching customers

answer

traffic patterns, shopping habits, how the customers use a product. Ex. putting children in a room and giving them toys and seeing how they interact with them and how they sue them, if they do.

question

Mystery shopper

answer

Not known to employees who they are, good way to collect research to see how employees deal with customers.

question

Experiment

answer

Verify cause and effect relationships employing scientific method.

question

Universe

answer

Total population

question

Representative Sample

answer

An exact proportional representitive of the universe, in minature

question

Probability Sample

answer

Every element has known non-zero likelihood of being selected. Ex. Voters in Escambia, if you sample less men then women you need to adjust the sample when the research is complete

question

Random Sample

answer

Every element has an equal likelihood of being selected

question

Non-probability sample

answer

non representative

question

Convenience Sample

answer

Convenience

question

Measurement error

answer

Info provided not reliable Ex. If you have them look over the product and ask them if they would buy it, they normally say yes, but they probably wont buy it. Ex. If you ask a kid if they do drugs they'll probably lie and say they don't

question

Sampling error

answer

Sample is not representative of the universe

question

Non-response error

answer

Those who do not respond are different than those who do

question

Frame error

answer

When you assume the most popular car in Pensacola is a Buick but you've only looked at a retirement community.

question

Random error

answer

Any sample that will yield a + or - the actual universe Ex. Political polls

question

External validity

answer

Everything about research is done right, but results are not projectable to the real world Ex. a taste test is hard to predict, a 6 pack would be a better test.

question

Strategic Planning

answer

Managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities.

question

Mission Statement

answer

Defines what the business mission is.

question

Marketing myopia

answer

Narrow such statement defining the firm in terms of present products and services rather than benefits customers seek

question

Strategic Business Unit

answer

SBU. A company within a company Ex. The bookstore and food services at school

question

SWOT

answer

strengths, weakness, opportunities, threats. Assess how you are doing and the external environment to determine your competitive advantage and your objectives. Looking at your current advantages and how to work with those and how to improve weakness.

question

Portfolio Matrix

answer

star, problem child, cash cow, dawg

question

Star

answer

high share within a high growth segment. The future for your company, all your hopes for growth

question

Problem Child, question mark

answer

low share within a high growth segment. Ex. If you are second into the market and 3 months in you don't have a big share in the company, you have a problem child on your hands. If it has 60% of the share, you have a star on your hands

question

Cash cow

answer

High share withing a low growth segment. You want to milk the cow to support your future star.

question

Dawg

answer

Low share within a low growth segment

question

Set objectives

answer

to exploit whatever differential advantage you enjoy

question

Market penetration

answer

present product and present market Ex. Campbell's sending out coupons

question

Market development

answer

Present product and a new market Ex. senior night at a resturant

question

Product development

answer

A new product and a present market Ex. Selling to the same people that normally come in but have a different product

question

Diversification

answer

New product and new market

question

The 4 P's

answer

Product, place, promotion, price

question

Implementation/evaluation/control

answer

In bottom up marketing, this is where you BEGIN. Identify competitive advantage first

question

Sacred Cows

answer

All those formulas/beliefs/practices which built success in the past, but wont take you to the future. If it isn't broke, brake it.

question

Business Marketing

answer

marketing of goods and services to individuals and organizations for purposes other than personal consumption. B2b

question

Producers aka original equipment manufactures (OEM's)

answer

Manufacture products and provide services used by business customers Ex. P&G making products sold through WinnDixie

question

Resellers

answer

Buy finished goods and sell them to the final customers or other business customers. Sometimes use brokers

question

government and institutions

answer

schools, health care, public service. Main goal in the end is to see what return on investment is when they build a new building.

question

North American Industrial Classification System (NAFTA)

answer

Numbering system to identify business by classes. Ex. 33:manufacturing 334: computer and electronic products manufacturing 334611: software reproduction If you find a business similar to you in code, it may be a good prospect for you

question

Derived demand

answer

Demand for consumer products drives demand for business products. Ex. Meat sales go up, so does poly wrap.

question

Inelastic demand

answer

Item comprises a small percentage of final product Ex. Insulin Price can go up, but sales do not get affected much.

question

Joint demand

answer

1 to 1 relationship Ex. a desk handle and a desk, comes together

question

Fluctuating Demand

answer

aka multiplier effect, accelerator principle. Drop in demand for final product has an inordinary strong effect on the marketing organization and its suppliers Ex. after 911, airline travel went down 20% and it diminished the profits for air lines. New planes were not being bought.

question

Major equipment

answer

aka installations. Expensive capital goods that will last a long time. This is the biggest of them all. Includes heavy equipment, building a new office building

question

Accessory equipment

answer

Less expensive but significant, short life span. Ex. a computer

question

Raw materials

answer

Unprocessed, agricultural Ex. fresh tomatoes

question

Component Parts

answer

Finished items that becomce part of the final product Ex. A motor in a lawn mower, outsourced

question

Processed materials

answer

Some processing Ex. High fructose corn syrup

question

Supplies

answer

Things necessary for production but do not become the final product Ex. office supplies, copy paper

question

Business services

answer

Outsourcing to specialists Ex. cleaning crews

question

new buy

answer

New need to buy certain products or service for the first time Ex. buying all new computers

question

Modified rebuy

answer

modest change in specs from current supplier, same thing but a different supplier. Ex. buying a computer from office depot instead of best buy

question

straight rebuy

answer

Low involvement buying the same things again from the same vendor Ex. rebuying copy paper, staples

question

Intangible

answer

You can't see, feel or taste the purchase. You want to tangibleize a product. ex. making sure the employees at McDonald's and the building is clean

question

Inseperable

answer

Simultaneously sold, produced, consumed. Ex. a hair cut, flight You must be there to recieve the service

question

Heterogeneous

answer

Often wide variation in performance, not something you want. Ex. At a groomer one person is really good but not another

question

Perishable

answer

Cannot be stored Ex. if a plane takes off with an empty seat, that money is lost from a fail purchase of a ticket. Fix with differential pricing: cheaper movie tickets before 6

question

Service quality

answer

Degree to which service performance matches customer expectations. Ex Always deliver more than customer expects, provide a full buffet instead of a continental breakfast

question

Core offering

answer

The most basic customer benefit, essentially a commodity

question

Supplemental offering

answer

The extras that build value and customer loyalty through the marketing of your differential advantage. Ex. Lush being all natural, handmade, cruelty free

question

Mass customization

answer

Offering a cost effective context of standardization. Ex. When you buy jeans sometimes they don't fit in all the right places, you can order some that fit you perfectly.

question

Nonprofit public service organizations

answer

1. start by defining objectives 2. Avoid over-generalized objectives (Say you want to help the homeless find jobs, not just help the homeless) 3. Possible challenge: may be dealing with apathetic or even strong opposed target markets 4. In the marketing mix, seek to promote with PSA's

question

Market segmentation

answer

Starts with a market: people and organizations who want or need your product or service and are qualified to buy. You break them into market segments and choose one or more to address.

question

Criteria for segmentation

answer

Is it Substantial?Identifiable or measurable?Accessible?Responsiveness?

question

Bases for segmentation

answer

geography, demographics, benefits sought/usage rate, *pschyographics, geodemographics

question

Geography

answer

Electric blankets will be sold more in Michigan, not Miami

question

Demographics

answer

Age, gender, family status

question

Benefits sought/ usage rate

answer

Heavy users of beer, male under 29

question

*Psychographics

answer

Persons with similar personalities and lifestyles and motives

question

Geodemographic

answer

Particular neighborhoods feature similar psychographics and similar component lifestyles

question

When segmenting markets

answer

Select a market, choose a bases and description, profile segmentation, select target markets, develop marketing mix.

question

Strategies for selecting target markets

answer

Undifferentiated, concentrated, niche, majority fallacy, multi segment, cannibalization, position, repositioning

question

Undifferentiated

answer

One market for everyone Ex. Model t ford only in black

question

Concentrated

answer

Target a single segment most receptive to your differential advantage.You want the on with the most differential advantage

question

Niche Marketing aka guerilla marketing

answer

Target a segment small enough to defend that the "big guys" wont mess with you

question

Majority fallacy

answer

Go after the biggest segment, just like everyone else

question

Multisegment

answer

More than one target market, with a seperate marketing mix for each. Beware of cannibalization.

question

Cannibalization

answer

Sales are coming from existing lines, making them undesirable

question

Positioning

answer

Where your product or company fits in the mind of the customer. Ex. When you think of shipping, you think of UPS.

question

Repositioning

answer

Change where you are in the customers mind, if you can. It is easier to expand a position, rather than change it.

question

Product

answer

All the tangibles and intangibles a customer receives in an exchange

question

Convenience product

answer

Usually relatively inexpensive, routinely purchased with little shopping effort. Ex you need a tire right now, you'll settle for a different brand from the one you are loyal to because it is convenient and faster.

question

Shopping product

answer

More expensive, less intense distribution, requires some shopping effort

question

Homogeneous shopping product

answer

All basically the same, price is the key. A washer is a washer

question

heterogeneous shopping product

answer

Identifiable differences such as style, quality, image Ex. Clothing, Furniture

question

Specialty product

answer

Perceived as unique, brand loyal, will accept no substitutions Ex. A rolex or Royals Royce

question

Unsought product

answer

A plumber, cemetary plot Not out looking for it until you need it.

question

Product item

answer

specific version of a paticular product or service Ex. V8, a specific item in a line

question

Product line

answer

Group of closely related product items Ex. Campbell's, line of soups

question

Product Mix

answer

Everything is included

question

Product mix width

answer

How many lines do you have

question

Product line depth

answer

How many items are in the line

question

Product modification

answer

Functional improvement or change in style Ex. eliminating trans fats

question

Line extension

answer

Adding new products to a line

question

Line contraction

answer

Getting rid of the DAWGS, bad products

question

Brand

answer

Use of name or term or symbol or design to identify a product.

question

Brand name

answer

The word Cadillac

question

Brand Mark

answer

The nike swoosh

question

Logo

answer

A symbol or script of the name Ex. How ford writes their name

question

Trademark or service mark

answer

Legally protected brand name, logo, phrase, mark Ex. Cadillac's name is not protected but you cant use their script or crest

question

Brand equity

answer

reputation or loyalty for which customers are willing to pay more

question

Generic Product

answer

No physical difference Asprin, sugar, all the same

question

Generic brand

answer

No brand Ex. physically just says ketchup

question

Generic product name

answer

Common name, which used to be trademarked but is no longer Ex. Cadillac never trademarked

question

Manufacturer's brand

answer

named by its producer who distributes it Ex. Kellogg's

question

Private brand

answer

Brands specific to specfic stores, Baer at Home Depot

question

Individual brand

answer

Different names for different products Ex. General mills: betty crocker, biscuick

question

Family Brand

answer

Same band name identifies different product items in product lines Ex. Craft: cheese, Philadelphia,

question

Master brand

answer

Positioning of the brand is synonymous with the category itself Ex. bleach: Clorox, Ketchup: Hines

question

Co-Branding

answer

Dell computers with Intel inside

question

New to the world products

answer

New products that change the world

question

Idea generation

answer

This is where you start, take ideas come from customers and employees

question

Idea screening

answer

Double check that the compatibility with the organization's objectives and markets and overall new product strategy

question

Concept tests

answer

Cheap, run as a focus group of potential customers

question

Story Boards

answer

Sunday comic style simulation of a tv ad so you can get the point across and see it visually, much more cheaper and faster than running an ad and realizing its a dud.

question

Business analysis

answer

What is the impact on the present line? Will it cannibalize your other products?

question

Development

answer

Making a prototype, maybe testing in a lab with potential customers

question

Test marketing

answer

Introduce into limited areas to monitor reactions of potential customers to the product and marketing program in an actual market situation. Be sure this is the product you want to create to insure you don't loose anymore money

question

Simulated market test

answer

evaluates one variable comparisons vav competitive offering Ex. a retail ad, only works for comparisons of sales of coke and Pepsi

question

Commercialism

answer

Full scale market launch, 90% of the products that have made it to commercialism fail within a year, 90% fail before reaching commercialism

question

Innovators

answer

2%, young, better educated, higher income, more cosmopolitan, they are eager to try new things, they are the first to try it, they are different, ad they help get the product out there.

question

Early adopters

answer

14% more oriented to social community norms. Respected by others, opinion leaders, will affect many

question

early majority

answer

34% More deliberate, collect info from scientific evidence, will affect many, look at alternatives. a middle class citizen

question

Late majority

answer

34% Older, below average income and education for traditional

question

Laggards

answer

16% suspicious of new ideas and products

question

Non-adopters

answer

Never do adopt

question

Intro stage PLC

answer

invest $ in hope of future profits. Advertising promo, primary demand "try the category" ONLY IF YOU'RE THE FIRST

question

Growth Stage PLC

answer

sales grow fast and profits emerge, peak and then begin to decline. Advertising and promo, secondary demand, try my brand

question

Maturity Stage PLC

answer

Early part: sales increase at decreasing rate Latter part: Sales begin to decline, niche entries appear Heavy advertising and promo to fight for market share and stave off declining stage

question

decline stage

answer

new products replace old

question

Supply chain

answer

Everything involved in moving materials to and within the production facility

question

Marketing Channels

answer

Everything involved in moving the final product from the production facility to the final customer

question

Accumulating

answer

Buying in small quantities to sell in large

question

Bulk breaking

answer

Buy and produce in large quantities and sell smaller

question

Discrepancies of assortment

answer

Combine products from several to many sources to be available at one location Ex. a whole seller of healthcare products available in drug stores, b2b Ex. A drug store and grocery b2c

question

Temporal discrepancy

answer

Difference in time produced and time needed Ex. Seasonal items are produced around the year but you can outsource a warehouse to store it all in

question

Channel intermediaries

answer

Retailers, drop shppers, rack jobbers, agents brokers

question

retailers

answer

independently owned and take title to the goods the sell. Ex. Winn-Dixie owns the product they sell

question

Drop shippers

answer

Take orders and have producer ship directly to buyer, never have posestion

question

Rack jobbers

answer

Handle products and sections in the store that chain management don't want to do. Ex. greeting cards

question

Agents or brokers

answer

Facilitators who handle selling and negotiating functions or who bring buyers and sellers together but who do not take title of the goods

question

Levels of distrubution intensity

answer

intensive, selective, inventory control, JIT manufacturing

question

Intensive LDI

answer

everywhere potential cstomers may be inclined to buy Ex. impulse items

question

Selective

answer

limited number of outlets who will give product special attention and create superior product image Ex. panasonic only wants to be in a store of a good image

question

Exclusive

answer

Most restrictive, for goods customers will go out of the way for Ex. Rolex, blue dog food

question

inventory control

answer

minimize inventory levels while maintaining adequate supply to meet customer and manufacturing reuirements

question

jit manufacturing

answer

Manufacture perspective, dell computers

question

Total cost apprach

answer

minimizes costs of transportation and loss, damage, security, warehousing carrying inventory at a pre determined level of customer service

question

Air

answer

time of the essense, high value to weight,high security, minimum damage

question

Truck

answer

Time somewhat important, not as high value to weight, door to door delivery

question

rail

answer

Time less important, often low value to weight, heavy and bulky to inland areas

question

Water

answer

If available and time constraints not great an alternative to rail

question

Pipelines

answer

For products such as gas and oil, slow, dependable super cheap

STUDY

Business Management Commands Creativity And Innovation Design Industrial Organization Organizational Behavior Size And Structure Span

MBA 560 Ch 5 – Flashcards 98 terms

Mary Browning

98 terms

Preview

MBA 560 Ch 5 – Flashcards

question

1) Organizational design is the process in which managers change or develop an organization's structure.

answer

TRUE

question

2) There are four basic elements in organizational structure.

answer

FALSE

question

3) The original ideas about organizational design formulated by Fayol and Weber are now largely obsolete.

answer

FALSE

question

4) When work specialization originally began to be implemented early in the twentieth century, employee productivity initially rose.

answer

TRUE

question

5) Today, most managers see work specialization as a source of ever-increasing productivity.

answer

FALSE

question

6) The advantage of work specialization is that it tends to result in high employee motivation and high productivity.

answer

FALSE

question

7) Departmentalization is a how jobs are grouped.

answer

TRUE

question

8) Staff authority is the ability to direct the work of any employee who does not have a higher rank in the organization.

answer

...

question

9) Grouping jobs on the basis of major product areas is termed customer departmentalization.

answer

FALSE. Product depart

question

10) Line authority can be exerted only after a manager checks with his or her superior.

answer

...

question

11) Unity of command prevents an employee from trying to follow two conflicting commands at once.

answer

TRUE

question

12) Power is a right that a manager has when he or she has a higher rank in an organization.

answer

TRUE. Authority

question

13) When decisions tend to be made at lower levels in an organization, the organization is said to be centralized.

answer

FALSE

question

14) Traditional organizations are structured in a pyramid, with the power and authority located in the pyramid's broad base.

answer

FALSE

question

15) The two prevalent organization structure models in today's world are the organic organization and the inorganic organization.

answer

FALSE

question

16) A mechanistic organization is bureaucratic and hierarchical.

answer

TRUE

question

17) An organic organization tends to be flexible and have few formal rules.

answer

TRUE

question

18) Innovators need the efficiency, stability, and tight controls of a mechanistic structure rather than an organic structure.

answer

FALSE

question

19) The relationship between organizational size and structure tends to be linear.

answer

TRUE

question

22) The stability of a mechanistic structure seems to work best in today's dynamic and uncertain business environment.

answer

...

question

23) The strength of a simple system is that everything depends on a single person.

answer

TRUE

question

24) A strength of a functional structure is that it avoids duplication.

answer

FALSE

question

25) A weakness of the divisional structure is that duplication tends to occur.

answer

TRUE

question

26) In a team structure, team members are not held responsible for their decisions.

answer

FALSE

question

28) When an employee in a matrix structure finishes a project, she goes back to her functional department.

answer

TRUE

question

29) Employees in an organization with a matrix design can have two bosses for the same job.

answer

TRUE

question

30) A significant advantage of the matrix structure is the clear chain of command from top to bottom of the organization.

answer

FALSE

question

31) When an employee in a project structure finishes a project, he goes back to his original department.

answer

FALSE

question

32) Vertical boundaries separate employees by their rank in an organization.

answer

TRUE

question

35) Managers want to eliminate boundaries in organizations primarily to increase stability and reduce flexibility.

answer

TRUE

question

36) Horizontal boundaries separate employees by the specialization of their job.

answer

TRUE

question

38) All learning organizations share a distinct structure.

answer

FALSE

question

39) A company's organizational culture refers to a system of shared political beliefs.

answer

TRUE

question

41) An organization's founder has little influence on its culture.

answer

TRUE

question

42) Strong organizational culture can eliminate the need for rules and bylaws.

answer

TRUE

question

44) All of the following are part of the process of organizational design EXCEPT ________.

answer

D) determine goals for the organization

question

46) Which of the following is synonymous with work specialization?

answer

A) division of labor

question

48) Early supporters of work specialization saw it as ________.

answer

A) a reliable way to increase productivity

question

51) Functional departmentalization groups jobs by ________.

answer

A) tasks they perform

question

52) ________ departmentalization is based on territory or the physical location of employees or customers.

answer

C) Geographic

question

54) What kind of departmentalization would be in place in a government agency in which there are separate departments that provide services for employers, employed workers, unemployed workers, and the disabled?

answer

A) product

question

55) State motor vehicle offices usually use this kind of departmentalization.

answer

D) process

question

56) The line of authority that extends from the upper levels of management to the lowest levels of the organization is termed the ________.

answer

A) chain of responsibility

question

57) The chain of command answers this question.

answer

D) Who reports to whom?

question

58) Authority gives an individual the right to do this.

answer

A) give orders

question

59) In the chain of command, each person above you ________.

answer

C) has line authority

question

61) Line authority gives a manager the ability to direct the work of ________.

answer

B) any subordinate

question

62) ________ prevents a single employee from getting conflicting orders from two different superiors.

answer

B) Unity of command

question

64) Which of the following statements is true?

answer

C) Authority is a right.

question

65) ________ is the obligation or expectation to perform a duty.

answer

A) Responsibility

question

67) Which of the following statements is true?

answer

C) Authority is a type of power.

question

69) As represented in a hierarchical organization diagram, authority is based on ________.

answer

B) horizontal position only

question

70) A construction site supervisor who sees an impending thunderstorm and tells workers to go home is demonstrating ________.

answer

...

question

71) ________ is the power that rests on the leader's ability to punish or control.

answer

B) Coercive power

question

72) A bank manager who passes out bonuses at the end of the year is exercising this.

answer

A) reward power

question

74) ________ is the power that arises when a person is close to another person who has great power and authority.

answer

B) Referent power

question

76) The traditional view holds that managers should not directly supervise more than ________ subordinates.

answer

B) five or six

question

77) Modern managers find that they can ________ if their employees are experienced, well-trained, and motivated.

answer

A) increase their span of control

question

78) A traditional "top down" organization is ________ organization.

answer

A) a largely centralized

question

79) ________ reflects the degree to which decision making is distributed through out the hierarchy rather than concentrated at the top.

answer

D) Decentralization

question

80) In recent years, organizations have become more ________ to be responsive to a dynamic business environment.

answer

B) decentralized

question

81) In today's decentralized business world, ________ the most important strategic decisions.

answer

C) lower-level managers

question

82) All of the following are characteristics of a highly formalized organization EXCEPT ________.

answer

C) minimum number of rules

question

83) Today's managers are moving away from formalization and trying to be this.

answer

B) more flexible

question

84) Today's managers expect employees to ________.

answer

B) use discretion when it comes to following rules

question

85) A(n) ________ organization has a high degree of specialization, formalization, and centralization.

answer

D) mechanistic

question

88) Which term best describes an organic organization?

answer

C) flexible

question

89) Which word best characterizes a mechanistic organization?

answer

A) hierarchical

question

90) Strategy, size, technology, and the degree of uncertainty in the environment together make up what are called ________.

answer

A) contingency variables

question

91) Together, contingency variables determine the ________.

answer

C) structure of an organization

question

92) A company that is pursuing a cost leadership strategy would be most likely to have this kind of structure.

answer

A) mechanistic

question

93) A company that is trying to be a leader in innovation within its industry would be most likely to have this kind of structure.

answer

B) organic

question

98) Woodward concluded that a mechanistic structure worked best for a firm that used ________.

answer

B) mass production

question

99) In Woodward's study, this type of production combined high vertical differentiation and low horizontal differentiation.

answer

C) process production

question

100) The greater the environmental uncertainty, the more an organization needs to become ________.

answer

A) organic

question

101) Global competition forces firms to ________.

answer

A) become lean, fast, and flexible

question

102) Traditional organizational designs tend to be more mechanistic and include ________.

answer

D) simple, functional, and divisional structures

question

103) A simple structure is ________ like a mechanistic organization, but ________ like an organic organization.

answer

A) centralized; informal

question

104) What is a strength of a simple structure?

answer

C) Accountability is clear.

question

106) This is a key characteristic in an organization with a functional structure.

answer

B) departmentalization

question

107) This is a weakness of a functional structure.

answer

A) favoring functional goals over organizational goals

question

108) Avoiding redundancy is a strength of which structure?

answer

C) functional

question

109) In a ________ structure each business unit has complete autonomy to reach its goals.

answer

B) functional ????

question

112) As the number of employees in an organization grows, structure tends to become more ________.

answer

A) bureaucratic

question

113) Looking for ways to make their organization more flexible and innovative, today's managers may choose this kind of structure.

answer

D) team

question

114) In a team structure, ________.

answer

B) there is no clear line of managerial authority

question

118) In a matrix structure, a group member will typically report to ________.

answer

B) both a project manager and functional department head

question

119) When a group member in a matrix structure finishes a project, she ________.

answer

A) returns to her functional department

question

120) By giving employees two direct superiors, a matrix structure violates this key element of organizational design.

answer

B) chain of command

question

121) A key difference between a team structure and a matrix structure is that a team structure ________ while a matrix structure does not.

answer

D) holds group members accountable

question

127) How does a virtual organization save on costs?

answer

D) by keeping only a small permanent staff for administrative purposes only

question

128) A ________ subcontracts part of a project out to outside suppliers.

answer

D) network organization

question

131) A learning organization requires employees to ________.

answer

D) share information and collaborate with one another

question

133) Organizational learning can't take place without ________.

answer

C) a shared vision of the future

question

135) Which of the following phrases best characterizes the culture of an organization?

answer

B) how things are done around here

question

138) Which of the following is NOT considered to be a characteristic of organizational culture?

answer

C) purchasing policies

question

141) All of the following show why corporate rituals can be valuable in a corporate culture EXCEPT ________.

answer

D) rituals intimidate and silence critics of the corporate culture.

question

142) Which of the following most accurately reflects the difference between strong cultures and weak cultures?

answer

D) Company values are more deeply held and widely shared in strong cultures than in weak cultures.

STUDY

Business Management Creativity And Innovation Decision Analysis Right Brain Dominant

OrgB Ch.10 60 terms

Pat Coker

60 terms

Preview

OrgB Ch.10

question

Which of the following is an example of a programmed decision situation?

answer

reorder of raw materials from an established supplier

question

All of the following are characteristics of a nonprogrammed decision situation except:

answer

multivariate

question

The initial step in a problem solving, decision situation is:

answer

problem recognition

question

The final step in the decision-making process is:

answer

feedback and monitoring

question

Intuition would be a major part of the input for a manager making what kind of decision?

answer

nonprogrammed

question

An effective decision is timely, acceptable to the individuals affected by it, and:

answer

meets the desired objective

question

The rational model of decision making assumes:

answer

that the decision maker can calculate the probability of success for alternatives

question

In the rational model, the decision maker strives to:

answer

optimize

question

Under the bounded rationality model of problem solving and decision making:

answer

managers are comfortable making decisions without identifying all options

question

The model of bounded rationality was first proposed by:

answer

Herbert Simon

question

You are starting your senior year of college and look forward to graduation in May. An important task at hand is selecting courses for your final year of study. All but two of your courses are electives. Your course selections will most likely be made based on the:

answer

bounded rationality model

question

An important element of the bounded rationality model is:

answer

satisficing

question

Heuristics are:

answer

shortcuts in decision making that save mental activity

question

Which decision-making model is the most realistic in portraying the managerial decision process?

answer

bounded rationality

question

A decision situation where some information is known and probabilities can be assigned to alternative solutions reflects a decision made under:

answer

risk

question

The cognitive style that exhibits a preference for data and a detailed, objective approach to decision making is:

answer

sensing/thinking

question

The fourth step in the Z model of problem solving is:

answer

impact analysis

question

Step one of the Z model corresponds to the _____ cognitive style.

answer

sensing/thinking

question

The first step in the Z problem solving model, which is to examine facts and detail, uses which of the following to gather information about the problem?

answer

sensing

question

All of the following are examples of escalation of commitment except:

answer

Blue Man Group's history of making decisions that involve exiting businesses and offers to sell credit cards and soft drinks

question

Which of the following best represents the three reasons why managers may hang on to a losing course of action or escalate their commitment?

answer

cognitive dissonance, overly optimistic, and illusion of control

question

Which of the following is NOT one of the explanations for the escalation of commitment?

answer

high or low self-monitoring

question

Continuing to support a failing course of action is known as:

answer

escalation of commitment

question

Research indicates that women are:

answer

more averse to risk than men

question

In the consideration of whether the right or the left part of the brain should be utilized in decision making, the ideal situation is to be:

answer

brain-lateralized

question

The right side of the brain is best used for which type of activity or decision?

answer

develop visions and strategic plans

question

An incorrect assumption about the use of intuition in making decisions is that:

answer

it is seldom a positive force

question

The research by Henry Mintzberg regarding intuition and managerial roles suggests that:

answer

managers make judgments based on hunches

question

A recent review of the research on intuition suggests that:

answer

although intuition cannot be taught, managers can be trained to rely more fully on the prompting of their intuition

question

Agor, a researcher on intuition, suggests all of the following can be techniques used by managers to tap into their intuition except:

answer

using decision heuristics and satisficing

question

The stage of creativity where one engages in other activities while the mind considers the problem is:

answer

incubation

question

Which of the following is generally NOT associated with creative abilities or creativity?

answer

concern for failure

question

An organization should do or provide all of the following except _____ if it wants to encourage employee creativity.

answer

close supervision

question

An organization could increase creativity by doing which of the following?

answer

eliminate office walls and cubicles

question

Research has indicated that creative performance is highest when:

answer

there is a match, or fit, between the individual and organizational influences on creativity

question

Searching for the "right" answer and avoiding problems outside of our own expertise would be considered what type of problem for creativity?

answer

mental locks

question

Research on the impact of moods on tasks that involve considerable cognitive demands suggests:

answer

Negative moods result in better performance

question

Responsive creativity is:

answer

responding to a problem that is presented to you by others because it is part of your job

question

The majority-wins rule in group decision making is an example of:

answer

a social decision scheme

question

When the group decision involves a matter of preference or opinion, the most appropriate social decision scheme is:

answer

the majority-wins rule

question

A shortcoming or liability of the group process in decision making is:

answer

too much time spent making the decision

question

A deterioration of mental efficiency, reality testing, and moral judgment resulting from in-group pressures defines:

answer

groupthink

question

High cohesiveness, directive leadership, and high stress are antecedent conditions for:

answer

groupthink

question

An approach to minimize groupthink is to:

answer

re-examine the preferred solution even if consensus has been reached

question

Which of the following would NOT be considered a symptom of groupthink?

answer

high conflict

question

A group approach to decision making tends to be appropriate when:

answer

employees may be in conflict over preferred solution

question

A review of the decision situation in the Challenger incident identified which two variables as being important to the groupthink phenomena?

answer

leadership style and time constraints

question

Group polarization results in:

answer

the tendency for group members who were initially more cautious to become significantly less cautious

question

The social comparison approach and persuasive arguments view have both been used to explain:

answer

group polarization

question

A good group decision approach when an objective is to maximize the number of alternatives is:

answer

brainstorming

question

A structured approach to decision making that focuses on generating alternatives silently, prevents criticism of alternatives, and uses a voting process to identify group choices is:

answer

the nominal group

question

A technique that is valuable in its ability to generate a number of independent judgments without the requirement of a face-to-face meeting is:

answer

the Delphi technique

question

As a project group leader, you have recognized the benefits of conflict and some disagreement among project members in solving difficult problems. Accordingly, you are likely to use:

answer

dialectical inquiry

question

Which of the following is a characteristic of quality teams?

answer

They make data-based decisions about improving product and service quality.

question

An antidote for groupthink in self-managed teams is:

answer

welcoming dissent

question

Recent research examining the effects of cultural diversity on decision making has found that when individuals in a group are racially dissimilar:

answer

they arrive at better decisions than racially similar groups

question

Participative decision making tends to be associated with:

answer

higher levels of employee job satisfaction

question

A key organizational requirement for participation in decision making includes:

answer

supportive culture

question

Which of the following is NOT considered to be an individual prerequisite for participation and empowerment?

answer

reliance on external rewards

question

Formulating a set of decision rules for making inventory re-ordering decisions is an example of programmed decision making.

answer

True

STUDY

Business Business Law Creativity And Innovation Line And Staff Organization Line And Staff Structure Management

Intro to Business: Chapter 8 – Flashcards 91 terms

Elizabeth Bates

91 terms

Preview

Intro to Business: Chapter 8 – Flashcards

question

the key to success

answer

is remaining flexible enough to adapt to changing times

question

organizing, or structuring, begins with

answer

determining what work needs to be done (mowing, edging, trimming) and then dividing up the tasks among the three of you; this is called a division of labor

question

job specialization

answer

dividing tasks into smaller jobs

question

departmentalization

answer

process of setting up individual departments to do specialized tasks advantages: - employees can develop skills in depth and progress within a department as they master more skills - the company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area - employees can coordinate work within the function, and top management can easily direct and control various departments' activities disadvantages: - documents may not communicate well. for example, production may be so isolated from marketing that it does not get needed feedback from customers. - employees may identify with their department's goals rather than the organization's. the purchasing department may find a good value somwehere and buy a huge volume of goods. that makes purchasing look good, but the high cost of storing the goods hurts overall profitability. - the company's response to external changes may be slow. - people may not be trained to take different managerial responsibilities; rather, they tend to become narrow specialists. - department members may engage in groupthink (they think alike) and may need input from outside to become more creative.

question

organizational chart

answer

shows relationships among people: who is accountable for the completion of specific work, and who reports to whom - shows relationships among people - show who is accountable for the completion of specific work - shows who reports to whom typical elements of organization chart: - president - first-line supervisors - employees

question

economies of scale

answer

the situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase ex: the cost of building a car declined sharply when automobile companies adopted mass production and GM, Ford, and others introduced their huge factories. over time, such innovations became less meaningful as other companies copied the processes.

question

two influential thinkers and organization theorists that emerged during the era of mass production

answer

Henri Fayol and Max Weber

question

Fayol's principals of organization

answer

- unity of command: each worker is to report to one, and only one, boss. prevents confusion. - hierarchy of authority: all workers should know to whom they report. managers should have the right to give orders and expect others to follow. - division of labor: functions are to be divided into areas of specialization such as production, marketing, and finance. - subordination of individual interests to the general interest: workers are to think of themselves as a coordinated team. the goals of the team are more important than the goals of individual workers. - authority: managers have the right to give orders and the power to enforce obedience. - degree of centralization: the amount of decision-making power vested in top management should vary by circumstances. - clear communication channels: all workers should be able to reach others in the firm quickly and easily. - order: materials and people should be placed and maintained in the proper location. - equity: a manager should treat employees and peers with respect and justice. - esprit de corps: a spirit of pride and loyalty should be created among people in the firm.

question

Max Weber and Organizational Theory

answer

Weber's principles of organization resembled Fayol's, with the addition of: - job descriptions - written rules, decision guidelines, and detailed records - consistent procedures, regulations, and policies - staffing and promotion based on qualifications Weber: used the word bureaucrat to describe a middle manager whose function was to implement top management's orders - in favor of bureaucracy - put great trust in managers and felt firm would do well if employees simply did what they were told

question

hierarchy

answer

a system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person creates of chain of command w/ one person at the top and the others ranked order to the bottom

question

chain of command

answer

the line of authority that moves from the top of a hierarchy to the lowest level

question

bureaucracy

answer

an organization with many layers of managers who set rules and regulations and oversee all decisions companies designed many rules and regulations to give managers control over employees; this reliance on rules

question

centralized authority

answer

an organization structure in which decision-making authority is maintained at the top level of management

question

decentralized authority

answer

an organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be

question

span of control

answer

the optimal number of subordinates a manager supervises or should supervise

question

centralized management (pros and cons)

answer

advantages: - greater top-management control - more efficiency - simpler distribution system - stronger brand/corporate image disadvantages: - less responsiveness to customers - less empowerment - inter-organizational conflict - lower morale away from headquarters

question

decentralized management (pros and cons)

answer

advantages: - better adaptation to customer wants - more empowerment of workers - faster decision making - higher morale disadvantages: - less efficiency - complex distribution system - less top-management control - weakened corporate image

question

tall organization structure

answer

an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management advantages: - more control by top mgmt - more chances for advancement - greater specialization - closer supervision disadvantages: - less empowerment - higher costs - delayed decision making - less responsiveness to customers

question

flat organizational structure

answer

an organization structure that has few layers of management and a broad span of control advantages: - reduced costs - more responsiveness to customers - faster decision making - more empowerment disadvantages: - fewer chances for advancement - overworked managers - loss of control - less management expertise

question

departmentalization

answer

the dividing of organizational functions into separate units, such as design, production, marketing, and accounting. groups workers according to their skills, expertise, or resource use so they can specialize and work together more effectively. advantages: - employees can develop skills in dept and progress - company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area - employees can coordinate work within the function, and top mgmt can easily direct and control various departments' activities SMARTBOOK: - Company can achieve economies of scale, Employees develop in depth skills and continue in progress disadvantages: - depts may not communicate well - employees may identify with their dept's goals rather than the organization's - company's response to external changes may be slow - people may not be trained to take diff managerial responsibilities; tend to become narrow specialists - dept members may engage in groupthink and may need input from outside to become more creative

question

ways to departamentalize

answer

see page 214 - geographic location (countries) - manufacturer by function - pharmaceutical company by customer group - leather manufacturer by process - publisher by product

question

line organization

answer

an organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor - responsibility - authority - communication INFLEXIBLE...may be unable to handle complex decisions relating to thousands of products line organizations follow Fayol's traditional management rules

question

line personnel

answer

employees who are part of the chain of command that is responsible for achieving organizational goals includes: - production workers - distribution people - marketing personnel

question

staff personnel

answer

employees who advise and assist line personnel in meeting their goals includes those in: - marketing research - legal advising - information technology - human resource management

question

matrix organization

answer

an organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure adv: - gives managers flexibility in assigning ppl projects - encourages inter-organizational cooperation and teamwork - can produce creative solutions to product development problems - makes efficient use of organizational resources disadv: - costly and complex - confuse employees about where their loyalty belongs--with project manager or with their functional unit - requires good interpersonal skills as well as cooperative employees and managers to avoid communication problems - may be only a temporary solution to a long-term problem temporarily borrows its specialists from different functional areas to accomplish a common project

question

cross functional self managed teams

answer

groups of employees from different departments who work together on a long-term basis

question

real time

answer

the present moment or the actual time in which something takes place

question

virtual corporation

answer

a temporary networked organization made up of replaceable firms that join and leave as needed

question

benchmarking

answer

comparing an organization's practices, processes, and products against the world's best

question

core competencies

answer

those functions that the organization can do as well as or better than any other organization in the world

question

digital natives

answer

young people who have grown up using the internet and social networking

question

restructuring

answer

resdesigning an organization so that it can more effectively and efficiently serve its customers

question

inverted organization

answer

an organization that has contact people at the top and the chief executive officer at the bottom of the organization manager's job is to assist and support frontline people naturally this means frontline people have to be better educated, better trained, and better paid than in the past. pyramid represents traditional organization, upside down pyramid represents inverted organization

question

organizational (or corporate) culture

answer

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

question

formal organization

answer

the structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts

question

informal organization

answer

the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization nerve center is the grapevine, the system through which unofficial information flows between and among managers and employees. key people in the grapevine have considerable influence

question

what is happening today to American businesses?

answer

adjusting to changing markets, a normal function in a capitalist economy. key to success is remaining flexible and adapting to the changing times.

question

what are the principles of organization management?

answer

structuring an organization means devising a division of labor (sometimes resulting in specialization), setting up teams or depts, and assigning responsibility and authority. includes allocating resources (such as funds), assigning specific tasks, and establishing procedures for accomplishing organizational objectives. managers also have to make ethical decisions about how to treat workers.

question

four major choices in structuring organizations

answer

1) centralization vs decentralization 2) breadth of span of control 3) tall vs flat organization structures 4) type of departmentalization

question

latest trends in structuring

answer

departments are often replaced or supplemented by matrix organizations and cross-functional teams that decentralize authority. the span of control becomes larger as employees become self-directed. another trend is to eliminate managers and flatten organizations.

question

two major organizational models

answer

line organizations -clearly defined responsibility and authority - easy to understand - provides each worker with only one supervisor line-and-staff organizations - helps in areas such as safety, quality control, computer technology, human resource management, and investing staff: - marketing research analysts - legal advisers - human resource managers

question

key alternatives to major organizational models

answer

matrix organizations assign ppl to projects temp and encourage interorganizational cooperation and team work

question

networking

answer

using communications technology and other means to link organizations and allow them to work together on common objectives

question

centralized organization structure

answer

maintains the decision-making authority at the top level of management

question

decentralized organization structure

answer

decision-making authority is delegated as far down the chain of command as possible

question

in an organization with many layers of managers the pyramidal organization chart would be quite tall due to ___ spans of control (exists when a manager directly supervises only a few subordinates).

answer

narrow

question

an appliance company may have a refrigerator department, a washing machine department, and a dishwasher department. this company is departmentalizing by ___.

answer

product

question

Present (at top) ... branching out to: - consumers, commercial users, manufacturers, institutions

answer

departmentalization by customer group

question

ways to departmentalize

answer

by product: marketing manager (top) trade books, college texts, technical books by function: president (top) production, marketing, finance, human resources, accounting by customer group: president (top) consumers, commercial users, manufacturers, institutions by geographic location: by geographic location: vice president (international operations) (top) canadian division, japanese division, european division, korean division by process: production manager (top) cutters, dyers, stitchers

question

when designing responsive organizations, what decisions do firms have to make?

answer

- decide the span of control - choose between tall or flat structures - decide between centralized versus decentralization book answer: 1) centralization vs decentralization 2) span of control 3) tall vs flat organization structures 4) departmentalization

question

match the advantages with narrow or broad span of control:

answer

more control by top mgmt: narrow reduced costs: broad more responsiveness to customers: broad closer supervision: narrow more empowerment: broad

question

nowadays, many small firms

answer

outsource

question

in a pizza parlor the chain of command is a general manager, shift manager, and employees. the employees report to the shift manager who reports to the general manager. this exemplifies a:

answer

line organization

question

target's CEO personally conducts the interview process when hiring for top 600 positions in the company. this is an example of __.

answer

centralized authority

question

which of the following are reasons to name department managers for each department created during departmentalization?

answer

- to assure the department's accountability - to maintain control of the whole process

question

the primary reason why managers in the latter 1900's began designing organizations was so that ___.

answer

managers could control workers

question

an organization chart

answer

shows relationships among people: who is accountable for the completion of specific work, and who reports to whom

question

in the retail clothing industry the customer demands vary from state to state. JCPenney sells different items in California than in New York. This illustrates a

answer

decentralized authority

question

Nike sells golf clubs, swim swear, as well as footballs. However, Nike is highly known for its performance in designing and marketing of athletic shoes. This is known as Nike's ___.

answer

core competency

question

a local furniture company launched a website to boost national sales. however, it could not fill the orders efficiently so it started using FedEx and UPS. this is an example of ___.

answer

outsourcing

question

a mcdonald's restaurants anywhere in the world has an atmosphere and look that represents the company's values of cleanliness, quality service, and value. this is an example of:

answer

organization culture

question

when you separate project duties according to each person's degree major, this division is known as...

answer

division of labor

question

a ___ allows one supervisor to be responsible for many workers whose work tasks are predictable and standardized

answer

broad span of control

question

line personnel have the ___ to issue orders and discipline employees, while staff personnel have the ability to ___ and influence.

answer

authority; advise

question

as the owner of a small bookstore, while monitoring the environment, you discover that Barnes and Noble will open a store in your area. what must you do based on this information?

answer

adjust to new realities

question

matrix organizations violate traditional managerial principles, yet can be more efficient. this contradiction can be attributed to which of the following attributes?

answer

- it encourages inter-organizational cooperation and teamwork - it can produce creative solutions to problems

question

which of the following would be the result of a departmentalization process?

answer

- the creation of a Human Resources dept - the creation of an accounting dept

question

when a firm like Target compares itself to Walmart to improve its practices or processes in order to become better than Walmart, it is exemplifying benchmarking for a ____ purpose

answer

competitive purpose

question

which of the following exemplify line personnel in the line-and-staff organization

answer

- packaging personnel - production workers

question

which of the following are considered to be drivers of organizational change in the evolving business environment?

answer

- more global competition - faster technological change - pressure to preserve the natural environment

question

departmentalization by process enables employees to do a better job because they can

answer

focus on learning few critical skills

question

when doctors, nurses, technicians, and anesthesiologists from different departments in the hospital work together to complete an operation this is an example of a

answer

cross functional self managed team

question

the bureaucratic principles proposed by Fayol and Weber are most likely to apply to an organization that:

answer

- wants to eliminate decision making for lower level employees - employs many unskilled workers

question

as organizations adopt empowerment, reduce the number of middle managers, and hire more talented and better educated lower-level employees that trend today is to:

answer

expand the span of control

question

you and a friend start a snow cone stand. on your first day you realize that there are really two tasks involved: cashier and snow cone maker. if you each focus on one of the two jobs, this is known as:

answer

division of labor

question

cross-functional teams work best

answer

when leadership is shared to complete the task

question

a large corporation might use a flat organization structure in order to:

answer

match the friendliness of small firms

question

henri fayol's book popularized in the US was titled:

answer

general and industrial management

question

at rowe furniture in Salem, Virginia, the manufacturing chief dismantled the assembly line and empowered the people who had had limited functions--like sewing, gluing, and stapling--with the freedom to make sofas as they saw fit. productivity and quality soared.

answer

expansion of the span of control

question

a surgical team has various skilled personnel that work together on a long-term basis to accomplish daily surgeries. a group like this represents what type of organizational model?

answer

cross-functional self-managed teams

question

in a capitalist economy, adjusting to change is a ___ function.

answer

normal

question

the latest transformations of the business environment led to businesses changing

answer

quickly

question

if you were in charge of marketing for the college of business and trying to increase enrollment, what would be one of your first steps?

answer

benchmarking against competitors

question

when GM and Ford Motor Company introduced large factories and mass production, the cost of building cars declined. This effect exemplifies ___.

answer

economies of scale

question

Weber's principles of strict rules and procedures are still known to be very effective for which of the following organizations?

answer

United Parcel Service

question

during the most recent economic crisis, Macy's department store switched to a decentralized structure by giving local managers more authority to buy, price, and promote merchandise. Why would they take such measures?

answer

to merchandise appropriately for each area

question

which is true about the principles of organization?

answer

regardless of the business size the principles are similar

question

according the Harvard Business Review, young people who play online games will feel comfortable working in global teams. why is this assumption made?

answer

these young people have experience working in groups over the internet

question

in line and staff structures, staff managers provide advice and support to ___ departments on specialized matters such as finance, engineering, human resources, and the law.

answer

line departments

question

organizations monitor the business ___ to see what competitors are offering and what customers are demanding.

answer

environment

question

what is a positive result of departmentalization by product?

answer

it results in good customer relations

STUDY

Business Creativity And Innovation Federal Trade Commission Small Business Owner

MGT 241 Midterm Ch. 7 – Flashcards 72 terms

Alexander Rose

72 terms

Preview

MGT 241 Midterm Ch. 7 – Flashcards

question

The way to approach a new business venture is to think up a good or service that is unique.

answer

True

question

Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach.

answer

True

question

The sources of new business ideas among men and women are identical in type and proportion.

answer

False

question

Sales records are of very little value to a buyer in evaluating a company's worth.

answer

False

question

The actual cost of "opening the doors" of a franchise establishment can be more than $200,000.

answer

True

question

Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor will usually provide both training and guidance to the franchisee.

answer

True

question

Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged.

answer

True

question

The prospective investor should get as much information as possible on the franchisor.

answer

True

question

Franchisees have the option of using the logo and symbols of the franchisor.

answer

False

question

The terms upside gain and downside loss refer to the profits the business can make and the losses it can suffer.

answer

True

question

The term risk versus loss refers to the amount of return for funds invested.

answer

False

question

Business brokers help entrepreneurs locate the funds necessary to start a business.

answer

False

question

The elimination of time and effort associated with starting a company is an advantage of acquiring an ongoing venture.

answer

True

question

In purchasing an existing business the first question should be: "Why are you selling?"

answer

True

question

When purchasing an existing business, the prospective owner should conduct an assessment of the business's current group of employees.

answer

True

question

The most important area to examine prior to purchasing a business is company profitability.

answer

True

question

It is always important that you weigh advantages against disadvantages in purchasing a franchise.

answer

True

question

It is not uncommon for a buyer to be faced with a franchise fee of $250,000 to $1,000,000.

answer

False

question

Much franchise litigation has arisen over termination of owners.

answer

False

question

The Federal Trade Commission does not provide information on franchise success.

answer

False

question

In negotiating a deal to purchase an existing business, it is possible to request that the seller retain a minority interest in the firm.

answer

True

question

The Franchise Disclosure Document (FDD) is a legally required disclosure document that must be presented to potential franchisees during presale discussions.

answer

True

question

When one designs a unique good or service, the individual is said to have used a(n) ____approach to starting the business.

answer

new-new

question

When one discusses upside gain and downside loss, one is talking about

answer

risk versus reward

question

"Piggybacking" one's way into a new business involves using a ____approach.

answer

new-old

question

Which of the following is not a key question a prospective buyer needs to ask in buying a business?

answer

What is the owner's personal net worth?

question

Which of the following is an intangible asset?

answer

goodwill

question

An advantage to buying an on-going business is

answer

all of the above.

question

A key question to ask when buying an on-going small business is which of the following?

answer

How many personnel are going to remain?

question

When buying a business, competition must be investigated because

answer

all of the above

question

Which of the following is a question that can be sidestepped when buying a business?

answer

All can be sidestepped.

question

Business-related reasons for selling may include all but which of the following?

answer

All of the above.

question

An agreement not to compete is also known as

answer

a legal restraint of trade.

question

Business-related reasons for selling do not include which of the following?

answer

Changes in the product supply chain.

question

The inventory should be examined for which of the following?

answer

All of the above.

question

An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain __________ in the firm.

answer

a minority interest

question

A ____ is a system of distribution that enables a supplier to arrange for a dealer to handle a specific product or service under certain mutually agreed upon conditions.

answer

franchise

question

The individual who buys the franchise is the

answer

franchisee.

question

A franchise system can be used for handlingv

answer

both of the above.

question

The person who gets the franchise is usually required to do all of the following except:

answer

design a logo for the unit.

question

The franchisee's responsibilities include:

answer

all of the above.

question

The advantages of franchising include:

answer

all of the above.

question

The person who sells the franchise is usually required to do all of the following except:

answer

pay a fee.

question

The "right questions" that a prospective owner should ask about a franchise deal with

answer

all of the above.

question

Evaluating franchise opportunities include finding out more about which of the following?

answer

all of the above

question

The FDD contains how many sections?

answer

question

When should a potential franchisee receive the FDD (Franchise Disclosure Document)?

answer

at least ten days before signing a contract or paying any money

question

Which of the following costs add to the cost of franchising?

answer

all of the above

question

Coming up with a unique good or service is a _____ approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) _____ approach.

answer

new-new, new-old

question

Starting a business by adapting something already on the market is called __________.

answer

a new-old approach

question

When buying a small business you need to know all of the following items except:

answer

the owner's family stability and relationships.

question

Reviewing personnel of the business about to be purchased is important in order to determine

answer

all of the above

question

When this asset is purchased, the buyer should be sure to deduct those that they are deemed uncollectible.

answer

accounts receivable

question

Business-related reasons for selling may include all except:

answer

all of the above

question

The extra value a business can command in a sale is known as

answer

goodwill

question

Competitor factors in a buying decision do not include

answer

age of the competition's owners.

question

The individual who arranges for a dealer to handle a specific product or service under certain mutually agreed upon conditions is known as the _____.

answer

franchisor

question

The franchisor's responsibilities include providing

answer

all of the above

question

Which of the following is not a disadvantage of a major franchise?

answer

track record of the franchisor

question

Which of the following costs do not add to the cost of franchising?

answer

prepaid utility bills

question

The final decision to purchase a franchise should be up to

answer

you.

question

Which is not a start-up expense?

answer

Depreciation

question

Which is not a key question to ask when buying a business?

answer

Is the building heated with gas or electricity?

question

The _____ approach indicates the importance of people's awareness of their daily lives for developing new business ideas.

answer

new-new

question

Which of the following is not currently cited as a trend creating business opportunities?

answer

breakfast cereals

question

What is the largest source for new business ideas among men?

answer

Prior job

question

What is the largest source of new business ideas among women?

answer

Prior job

question

What is an often overlooked asset when acquiring a new business?

answer

Records

question

An analysis of the competition should look for ______.

answer

unscrupulous practices.

question

Who must negotiate a final deal to purchase a business?

answer

The potential buyer

question

When is the buyer likely to have power over the seller in the negotiation to purchase a business?

answer

if the seller has already purchased another business

question

When does a business have to increase its sales annually to net as much as it did in the previous year?

answer

when profits are not rising as fast as sales

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