Creativity And Innovation Flashcards, test questions and answers
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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.
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
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
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
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
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
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
LinkedIn
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.
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
60
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
copyright
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?
answer
A company's core competencies become the nucleus of its competitive advantage
question
The key to entrepreneurial success over time is to build a ________ competitive advantage
answer
sustainable
question
A strategic plan serves as a blueprint to help a company to
answer
All of the above
question
Which of the following is NOT a characteristic of the strategic management procedure for a small company?
answer
It should begin with an extensive objective-setting session
question
A clearly defined vision helps a company in which of the following ways?
answer
All of the above
question
A small company's mission statement
answer
All of the above
question
When developing a company's mission statement, an entrepreneur should remember to
answer
keep it short and simple
question
Strengths and weaknesses are ________ to the organization
answer
internal factors
question
________ 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
answer
Strengths; weaknesses
question
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):
answer
opportunity
question
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
answer
threat
question
Every business is characterized by a set of controllable variables that determines the relative success (or lack of it) of market participants called
answer
key success factors
question
Gathering competitive intelligence, such as "dumpster diving" in a competitors trash, may raise questions regarding
answer
ethical standards
question
Your ________ competitors offer the same products and services, and customers often compare prices, features, and deals from these competitors as they shop
answer
direct
question
An ________ competitor offers the same or similar products of services only in a small number of areas, and their target customers seldom overlap yours
answer
indirect competitor
question
Which of the following is true about the information-gathering process in competitive analysis?
answer
It can be relatively inexpensive and easy for the small business owner to conduct
question
Which of the following is an effective method of collecting information about competitors?
answer
All of the above
question
Which of the following is not a recommended method of collecting competitive intelligence?
answer
Pay competitors' employees to become informants about their companies' strategies, markets, and trade secrets
question
A competitive profile matrix
answer
allows the small business owner to evaluate her firm against competitors on the key success factors for the industry
question
________ are the broad, long-range attributes the small business seeks to accomplish; ________ are the more specific targets for performance.
answer
Goals; objectives
question
Which of the following is not a characteristic of a well-written objective?
answer
General
question
The focal point of any company's strategy, whatever it may be, should be:
answer
its customers
question
A ________ is a road map of the tactics and actions an entrepreneur draws up to fulfill the company's mission, goals, and objectives
answer
strategy
question
________ spell(s) out the "ends" an organization is to achieve; ________ define(s) the "means" for achieving the ends
answer
Mission, goals, and objectives; strategy
question
The relationship between a company's mission, goals, and objectives and its strategy is best described by which of the following statements?
answer
The mission, goals, and objectives spell out the ends the company wants to achieve, and the strategy defines the means for reaching them
question
A strategy should
answer
All of the above
question
A cost-leadership strategy
answer
works best when buyers' primary purchase criterion is price
question
A cost-leadership strategy works well when
answer
All of the above
question
Small firms pursuing a cost-leadership strategy have an advantage in reaching customers whose primary purchase criterion is
answer
price.
question
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:
answer
cost-leadership strategy
question
Cost-leadership may have which of the following inherent dangers?
answer
An overemphasis on costs to the elimination of other strategies
question
A differentiation strategy
answer
All of the above
question
A small company following a ________ strategy seeks to build customer loyalty by positioning its goods and services in a unique fashion
answer
differentiation
question
A company that offers superior product quality, extra customer service, and fast delivery times is pursuing a
answer
differentiation strategy
question
Which of the following is a danger in choosing a differentiation strategy?
answer
Focusing only on physical characteristics of a product or service and ignoring important
question
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
answer
focus
question
Rather than attempting to serve the total market, the small firm pursuing a ________ strategy specializes in serving a specific target segment
answer
focus
question
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.
answer
focus
question
Small companies must develop strategies that exploit all of the competitive advantages of their size by
answer
All of the above
question
In order for the control process to work, the business owner must
answer
identify and track key performance indicators
question
Which of the following is NOT one of the four important perspectives a balanced scorecard should look at a business from?
answer
Competitor perspective
question
The balanced scorecard ideally looks at a business from four important perspectives relating to:
answer
customers, internal factors, innovation, and finances
question
The process of determining whether an entrepreneur's idea is a viable foundation for creating a successful business is known as a:
answer
feasibility analysis
question
Porter's five forces model assesses industry attractiveness by surveying these five factors
answer
potential entrants, suppliers, buyers, substitutes, and rivalry among existing firms
question
The strongest of the five forces in most industries is
answer
rivalry among companies competing in the industry
question
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
answer
bargaining power of buyers
question
Low capital requirements, cost advantages that are not related to company size, and the lack of brand loyalty are considerations regarding the
answer
threat of new entrants to the industry
question
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
answer
substitute products
question
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
answer
threat of new entrants
question
The primary purpose of the five forces matrix is to
answer
assign values to each of the five elements
question
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:
answer
business prototyping
question
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:
answer
product or service feasibility analysis
question
Conducting ________ research involves collecting data firsthand and analyzing it while ________ research involves gathering data that has already been complied and is available.
answer
primary; secondary
question
One form of primary research is
answer
a focus group
question
The financial feasibility analysis takes these aspects into consideration
answer
capital requirements, estimated earnings, and return on investment
question
The final aspect of the financial feasibility analysis combines the estimated earnings and the capital requirements to determine the
answer
rate of return on the capital invested
question
The primary purpose of a business plan is to
answer
guide a company by charting its future course and devising a strategy for success.
question
A business plan is a written summary of:
answer
All of the above
question
A business plan:
answer
All of the above
question
A solid business plan:
answer
All of the above
question
The second essential purpose for creating a business plan is:
answer
to attract lenders and investors.
question
The three "tests" associated with a business plan are:
answer
reality, competitive, and value.
question
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.
answer
reality
question
The reality test that a business plan must pass in order to attract financing from lenders and investors involves proving:
answer
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.
question
The competitive test that a business plan must pass in order to attract financing from lenders and investors involves proving:
answer
that the company can gain a competitive advantage over its key competitors.
question
24) The value test that a business plan must pass in order to attract financing from lenders and investors involves proving:
answer
B) that the business venture will provide lenders and investors a high probability of repayment or an attractive rate of return.
question
25) Potential investors tend to believe that if an entrepreneur cannot develop a good plan, the entrepreneur:
answer
C) probably lacks the discipline to run a business.
question
26) Which of the following statements is not true according to the "two-thirds rule"?
answer
D) Only two-thirds of entrepreneurs will take the time to prepare a business plan.
question
27) Before putting their money into a business idea, potential lenders and investors:
answer
D) All of the above
question
28) ________ is an entrepreneur's best insurance against launching a business destined to fail or mismanaging a potentially successful company.
answer
B) Creating a solid business plan
question
29) Which of the following is true regarding the process of building a business plan?
answer
D) All of the above
question
30) Which of the following is true about the preparation of a business plan?
answer
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.
question
31) Ideally, a business plan should range from ________ pages in length.
answer
B) 20 to 40
question
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.
answer
D) executive summary
question
33) The executive summary section of the business plan:
answer
D) All of the above
question
34) The executive summary section of the business plan:
answer
C) should summarize the essence of the plan in a capsulated form and should capture the reader's attention.
question
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.
answer
B) mission statement
question
36) The company history section of the business plan typically includes:
answer
D) All of the above
question
37) The ________ highlights significant financial and operational events in the company's life and should concentrate on the company's accomplishments.
answer
B) company history
question
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.
answer
C) business and industry profile
question
39) The ________ acquaints lenders and investors with the nature of the business and the general goals and objectives of the company.
answer
C) business and industry profile
question
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?"
answer
A) Goals
question
41) ________ are short-term, specific targets which are attainable, measurable, and controllable.
answer
A) Objectives
question
42) The section that describes "how to get there" and describes a competitive edge that sets the business apart is referred to as the:
answer
A) business strategy.
question
43) In the business strategy section of the business plan, the entrepreneur should explain to investors:
answer
B) how she intends to accomplish the company's goals and objectives.
question
44) Which of the following would be included in the description of the product or service section of the business plan?
answer
D) All of the above
question
45) A ________ is a descriptive fact about a product or service; a ________ is what the customer gains from that characteristic.
answer
A) feature; benefit
question
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?"
answer
B) The plan should describe how the business will transform tangible product or service features into important, but often intangible, customer benefits.
question
50) Which of the following questions will probably not be addressed in the marketing strategy section of the business plan?
answer
C) What exit policy do I have in place for my investors?
question
51) When formulating a marketing strategy, small companies usually are most successful when they:
answer
B) focus on a particular market niche where they can excel at meeting customers' needs and wants.
question
52) Defining the company's target market, its characteristics, and its potential is part of which element of the business plan?
answer
B) Marketing strategy
question
53) Proving that a profitable market exists involves:
answer
D) A and B only
question
54) An explanation of how the product will be distributed is contained within the ________ section of the business plan.
answer
B) marketing strategy
question
55) When creating financial forecasts in a business plan for a proposed venture, an entrepreneur should:
answer
A) be sure that all forecasts are realistic.
question
56) The focus of the competitor analysis section of the business plan is on:
answer
C) demonstrating your company's advantage over competitors.
question
57) The plan of operation of the company within the business plan should detail:
answer
C) plans for keeping the important officers in place with the company.
question
58) The organization chart is described in which section of the business plan?
answer
A) The plan of operation
question
59) The form of ownership under which a company is organized appears in which section of the business plan?
answer
C) Plan of operation
question
60) The loan proposal section of a business plan should include all but which of the following?
answer
A) A general request for funds without stating a specific dollar amount
question
61) Which of the following statements about the preparation of a business plan is/are not true?
answer
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.
question
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:
answer
C) the five C's of credit.
question
63) A synonym for capacity is:
answer
A) cash flow.
question
64) The most common reason cited by banks for rejecting small business loans is:
answer
B) undercapitalization and too much debt.
question
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?
answer
D) She should use a great deal of technological jargon to impress the audience with her knowledge.
question
66) After presenting her business plan to a group of potential lenders and investors, an entrepreneur should:
answer
C) take a proactive approach by following up with every potential lender and investor to whom she makes a presentation.
question
1) The key to choosing the right form of ownership is:
answer
B) understanding the characteristics of each form and knowing how they affect your business and personal circumstances.
question
2) Which of the following issues would influence an entrepreneur's choice of a form of business ownership?
answer
D) All of the above
question
3) The most common form of business ownership that is also the simplest to create is the:
answer
A) sole proprietorship.
question
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):
answer
D) sole proprietorship.
question
5) The most critical disadvantage of the sole proprietorship is:
answer
A) the owner's unlimited personal liability.
question
6) Which form of ownership generally has the least ability to accumulate capital?
answer
B) Sole proprietorship
question
7) A partnership agreement defines how the partners will be compensated. Normally,
answer
A) partners are not entitled to salaries or wages, but are compensated by a share of the profits of the business.
question
8) Probably the most important reason to have a partnership agreement is that:
answer
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.
question
9) Which of the following issues would a typical partnership agreement address?
answer
D) All of the above
question
10) All of the following are advantages of a partnership except:
answer
C) partnerships have the greatest ability to accumulate capital of all of the forms of ownership.
question
11) In a partnership, the ________ partner(s) has (have) unlimited liability for the partnership's debts.
answer
D) general
question
12) In a general partnership:
answer
A) each partner is held responsible for an agreement/decision made by any one of the partners.
question
13) Which of the following is required to form a partnership?
answer
A) A general partner
question
14) A special type of limited partnership in which all partners who, in many states must be considered to be professionals, are limited partners.
answer
A) Limited liability partnership (LLP)
question
15) Which of the following is not true of a limited liability partnership?
answer
C) Although LLPs have many of the characteristics of partnerships, they are taxed as a corporation.
question
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.
answer
A) limited
question
17) A ________ partnership is composed of at least one general partner and at lease one limited partner.
answer
B) limited
question
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.
answer
C) foreign
question
19) A special type of partnership in which all partners, who in many states must be professionals, are limited partners is called:
answer
D) limited liability partnership.
question
20) The "Das Spelunker" corporation, formed in Germany and conducting business in the U.S., is considered to be a(n) ________ corporation.
answer
A) alien
question
21) Which of the following is true regarding the corporate form of ownership?
answer
D) All of the above
question
22) A corporation receives its charter from:
answer
B) the state.
question
23) Which of the following generally is not required by a Certificate of Incorporation?
answer
C) A statement of how stock proceeds will be used
question
24) Which of the following statement(s) is/are true?
answer
D) All of the above
question
25) Which of the following is not an advantage of the corporate form of ownership?
answer
B) It is the easiest and least expensive form of ownership to create.
question
26) Which of the following is a disadvantage of the corporation form of ownership?
answer
C) Double taxation on profits
question
27) In the ________ form of ownership, the business itself pays income taxes.
answer
C) corporation
question
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?
answer
D) The potential loss of control
question
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:
answer
A) double taxation.
question
30) An S corporation form of ownership overcomes which disadvantage of the regular or C corporation form of ownership?
answer
A) The double taxation issue
question
31) Which of the following would be most likely to benefit from choosing S corporation status?
answer
D) A and C only
question
32) Which of the following statements is not true regarding the liquidation of an S corporation?
answer
C) The owners file a statement of intent to dissolve with the secretary of state's office in each state where they conduct business.
question
33) A limited liability company:
answer
A) is similar to an S corporation in that it is a cross between a partnership and a corporation.
question
34) A limited liability company is most like a(n):
answer
D) S corporation.
question
35) Which of the following documents must an entrepreneur file to create a limited liability company?
answer
D) A and C only
question
36) Which of the following is not true regarding the limitations of professional corporations?
answer
A) Seventy-five percent of the shares of stock must be owned and held by individuals licensed in the profession of the corporation.
question
37) A joint venture is different from a partnership in that the joint venture:
answer
A) can be formed only by two individuals.
question
38) Income from a joint venture is taxed as the income from a(n):
answer
B) partnership.
question
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.
answer
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.
question
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.
answer
C) 17; 8
question
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.
answer
C) Pure; trade name
question
4) McDonald's is an example of a ________ franchise.
answer
D) pure
question
5) Benefits of involvement in a franchise experience include:
answer
D) All of the above
question
6) Which of the following is not a potential advantage of franchising for the franchisee?
answer
D) Limited product line
question
7) Franchisers generally do which of the following regarding financial assistance to franchisees?
answer
B) Assist in finding financing and occasionally provide direct assistance in a specific area.
question
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.
answer
C) centralized buying power: economies of scale
question
9) Some franchisors offer ________ to give existing franchisees the right to exclusive distribution of brand name goods or services within a particular geographic area.
answer
A) territorial protection
question
10) The failure rate for franchises is:
answer
C) lower than the average rate for new businesses.
question
11) A recent study reports that the success rate of franchisees increases when a franchise system:
answer
D) All of the above increase the rate of success.
question
12) Franchise royalty fees typically range from ________ to ________ percent with an average of 6.7 percent.
answer
C) 1; 11
question
13) When it comes to purchasing products, equipment, and incurring other expenses, the franchiser:
answer
B) can set prices franchisees pay for the products but cannot set the retail price the franchisees charge.
question
14) Which of the following is not a potential disadvantage of a franchise?
answer
D) All of the above are potential disadvantages of a franchise.
question
15) A franchise myth is that:
answer
A) once the franchise is open, the franchisee has autonomy to run the business in what ever way he or she sees fit.
question
16) Which of the following is an indication of a dishonest franchiser?
answer
D) All of the above
question
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.
question
18) Which of the following should make a potential franchisee suspicious about a franchiser's honesty?
answer
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
question
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?
answer
D) All of the above
question
20) Franchises have experienced three major growth waves since its beginning that include a focus on:
answer
C) rapid growth, the service sector, and specific market niches.
question
21) A study by the International Franchises Association reports that minorities own more than ________ percent of all franchises and women own ________ percent of franchises.
answer
D) 20;25
question
22) ________ is an emerging international market for U.S. franchisers that is expected to realize the highest future growth rate.
answer
D) China
question
23) One of the major trends in franchising is the ________ of American franchise systems.
answer
C) internationalization
question
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:
answer
B) intercept marketing
question
25) A franchise trend in which owners of independent businesses become franchisees to gain the advantage of name recognition is called:
answer
C) conversion franchising
question
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.
answer
B) master franchise
question
27) A method of franchising that gives the right to create a semi-independent organization in a particular territory is a:
answer
B) master franchise.
question
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.
answer
D) master
question
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.
question
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
question
31) Establishing a Baskin-Robbins franchise inside a Blimpee's franchise is an example of ________ franchising.
answer
C) cobranding
question
1) The due diligence process of analyzing and evaluating an existing business:
answer
D) All of the above
question
2) When done correctly, the due diligence process will:
answer
A) reveal both the positive and negative aspects of an existing business.
question
3) Advantages to buying an existing business that you do not have with a startup include:
answer
C) inventory is in place and trade credit is established.
question
4) Which of the following is a potential disadvantage of purchasing an existing business?
answer
D) All of the above
question
5) When evaluating the assets of an existing business, the inventory:
answer
C) should be judged on the basis of its market value, not its book value.
question
7) The first step an entrepreneur should take when buying an existing business is to:
answer
C) analyze his or her skills, abilities, and interests in an honest self-audit.
question
8) When acquiring a business, the buyer should:
answer
D) All of the above
question
9) Which of the following statements concerning financing the purchase of an existing business is true?
answer
C) The buyer should be able to make the payments on the loans out of the company's cash flow.
question
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.
question
11) Perhaps the ideal source of financing the purchase of an existing business is:
answer
C) the seller of the business.
question
12) To ensure a smooth transition when buying an existing business, a buyer should:
answer
D) All of the above
question
13) The most common reasons owners of small- and medium-sized businesses give for selling their businesses are:
answer
B) boredom and burnout.
question
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.
question
16) Generally, a seller of an existing business can assign any contractual right to the buyer
answer
C) A and B are correct.
question
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.
answer
A) covenant not to compete
question
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
question
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
question
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.
question
21) When evaluating the financial position of a business he or she is considering buying, an entrepreneur should examine:
answer
D) All of the above
question
22) In a business sale, a letter of intent:
answer
D) All of the above
question
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
question
24) Which of the following statements about valuing a business is true?
answer
B) Business valuation is partly art and partly science.
question
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.
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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.
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30) Some of the most successful companies interact with their customers regularly, intentionally, and purposefully to create meaningful and lasting:
answer
A) relationships.
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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
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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.
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
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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
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Franchise
answer
independent owner-operated licensed by a larger support organization. Ex. McDonald's
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Product & trade franchising
answer
Contractual vertical marketing arrangement, physical product manufactured, exclusive territory to manufacture
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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.
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Department Store
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Large stores organized into many departments with limited lines that would be a competitive line with a store in the mall. Ex. Dillards
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Scrambled merchandising
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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
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Specialty Store
answer
Single-limited lines/High margin/High Service Ex. Foot locker, lush
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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
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Warehouse membership club
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Limited assortment in bulk to members only Ex. Sams, Costco
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Off-price retailer
answer
Buy the unsold merchandise from other retailers and sell it Ex. Marshalls, big lots
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Factory Outlet Store
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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
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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
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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
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.
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
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
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
23
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