Question 1

The Small Business Administration defines a small business as a firm that:

Accepted Answer

is independently owned but not dominant in its industry

Question 2

Which of the following U.S. issues does entrepreneurship most directly affect?

Accepted Answer

The ability to create jobs for others

Question 3

A __________ is a written document that details the business idea, the target market and the business\'s competitive advantage, financial resources available for the business, and the qualification of the management.

Accepted Answer

business plan

Question 4

A detailed written statement that describes the nature of the business, the target market, the firm\'s competitive advantages, as well as the owner\'s resources and qualifications is a:

Accepted Answer

business plan

Question 5

The goal of an intrapreneur is

Accepted Answer

to develop new products and generate new profits for the corporation

Question 6

A new business that sets up a(n) _____________ from the start is saving itself time and grief later.

Accepted Answer

good accounting system

Question 7

After personal savings, the next largest source of capital for entrepreneurs is from:

Accepted Answer

friends and family

Question 8

Employees of small businesses often have greater job satisfaction than do employees of larger firms. One reason for this difference in job satisfaction is that employees of small businesses often:

Accepted Answer

get more respect from their bosses

Question 9

Conversations with people who start their own business often reveal that:

Accepted Answer

many small business owners got their entrepreneurial idea from a previous job

Question 10

A(n) ________________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product.

Accepted Answer

joint venture

Question 11

The Making Ethical Decisions box, \"Going Down with the Ship\" addresses a dilemma worthy of consideration. It describes:

Accepted Answer

ethical decisions that need to be considered when employees leave a faltering business to start their own, eventually competing against their previous employer

Question 12

Which of the following employment statistics about small businesses is true?

Accepted Answer

A great majority of American workers find their first jobs with a small business

Question 13

Historically entrepreneurs in the U.S.

Accepted Answer

started many small firms that later became major corporations employing thousands of workers

Question 14

For the past twenty-five years, state and city governments have promoted facilities where new businesses can open-up shop and share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, _______________ continue to grow in popularity.

Accepted Answer

incubators

Question 15

According to SBA guidelines, a manufacturing firm with 1,000 employees

Accepted Answer

may be classified as a small business depending upon the size of other firms in the industry.

Question 16

Entrepreneurs applying for a bank loan should realize that bankers will:

Accepted Answer

expect the entrepreneur to provide a business plan

Question 17

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will:

Accepted Answer

expect an ownership stake in the company in exchange for financial backing

Question 18

Successful entrepreneurs are self-nurturing. This means they:

Accepted Answer

believe in themselves and their ideas.

Question 19

One reason we have seen continued growth in home-based businesses is:

Accepted Answer

affordable computer and information technology makes it easier to compete.

Question 20

A market consists of potential buyers of a good or service. However, for a market to exist:

Accepted Answer

people must have unsatisfied wants and needs as well as a willingness and ability to buy

Question 21

Strategic planning looks at the organization as a whole, while ________ planning focuses on daily tasks and decisions.

Accepted Answer

operational

Question 22

__________ is a problem solving technique that attempts to come up with as many solutions as possible in a short time without censoring the ideas.

Accepted Answer

Brainstorming

Question 23

Employees often work with managers to develop a(n) __________ that outlines the fundamental purposes of their organization.

Accepted Answer

mission statement

Question 24

A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom.

Accepted Answer

organization chart

Question 25

___________ is the management function of creating a vision for the organization and guiding, training, coaching, and motivating employees to help achieve the goals and objectives of the organization.

Accepted Answer

Leading

Question 26

__________ is the art of utilizing organizational resources to accomplish goals at work.

Accepted Answer

Management

Question 27

_________ planning is a part of contingency planning that is used to deal with sudden and unexpected changes in the business environment.

Accepted Answer

Crisis

Question 28

_____________ involves creating a vision for others to follow, establishing corporate values and ethics, and transforming the way an organization does business so that it is more effective and efficient.

Accepted Answer

Leadership

Question 29

__________ planning determines the major goals of an organization and lays the foundation for obtaining and using resources to achieve those goals.

Accepted Answer

Strategic

Question 30

A __________ is an overall explanation of why an organization exists and where it is trying to head.

Accepted Answer

vision

Question 31

Which of the following statements about leadership styles is most accurate?

Accepted Answer

Effective managers often use a variety of leadership styles

Question 32

The revolution in management that is currently underway suggests that the most effective managers of the future will:

Accepted Answer

emphasize team work.

Question 33

Which of the following techniques would a team of workers be most likely to use if they wanted to evaluate several possible solutions to a specific problem their company needs to solve?

Accepted Answer

PMI

Question 34

In comparing the types of skills used by managers at different levels within an organization, which of the following is true?

Accepted Answer

First-line managers use mainly technical and human relations skills, while top managers devote most of their time to activities involving human relations and conceptual skills

Question 35

Which of the following statements about effective leadership is the most accurate?

Accepted Answer

The most effective leadership style depends on who is being led and in what situation

Question 36

Which of the following activities is part of the planning function of management?

Accepted Answer

Looking at market forecasts to identify future business opportunities and challenges

Question 37

When managers identify a market trend that suggests a new opportunity and then devise a strategy to go after this new opportunity, they are involved in the function of:

Accepted Answer

planning

Question 38

The Social Media in Business box titled, \"Using Social Media to Build Customer Support,\" reflects upon the use of blogs and Twitter and other social media sources to measure customer satisfaction. Company employees scan various social media to stay current with customer perceptions and complaints. It is important that customers perceive that products and services are meeting or exceeding the standards that companies set. The _____________ of management involves the monitoring of product and service performance.

Accepted Answer

control process

Question 39

After thirteen years as a laborer for Hendrix Construction, Jimmy was promoted to the position of foreman. He is directly responsible for assigning various jobs to his work crew and evaluating their performance on a daily basis. Jimmy is now a member of:

Accepted Answer

supervisory management.

Question 40

Pam is a sales manager for Paradise Beauty Products. She has told her sales people that she expects each of them to increase their customer contacts by at least 5 percent in the next month. Pam has set a(n):

Accepted Answer

performance standard.

Question 41

_________ is the term used to describe those functions that a firm can do as well or better than others. It agrees to perform these functions in-house, rather than outsourcing.

Accepted Answer

Core competencies

Question 42

In recent years, large organizations have tried to improve their efficiency in communication and decision making by:

Accepted Answer

eliminating several layers of management.

Question 43

Empowering employees to better serve customers requires __________ front-line employees.

Accepted Answer

more support for

Question 44

_____________ refers to companies headquartered abroad who elect to bring production and manufacturing to domestic subsidiaries.

Accepted Answer

Insourcing

Question 45

An organization that consists of many layers of management is referred to as a(n) ____________ organization.

Accepted Answer

tall

Question 46

Which of the organization models follows all of Fayol\'s traditional management rules?

Accepted Answer

Line organizations

Question 47

The optimum number of subordinates a manager can supervise is referred to as the:

Accepted Answer

span of control.

Question 48

Line-and-staff organizations work well in organizations with:

Accepted Answer

a relatively unchanging environment.

Question 49

Which of the following describes a group of employees from different departments working together on a long-term basis?

Accepted Answer

Cross-functional self-managed teams

Question 50

Which of the following determines the degree of decentralization a firm might use?

Accepted Answer

The degree to which lower level management is empowered to make decisions.

Question 51

Which of the following correctly identifies the explanation behind the unity of command principle of management?

Accepted Answer

Workers can become frustrated and confused if they have more than one boss

Question 52

Max Weber favored which of the following?

Accepted Answer

Staffing and promotions based on qualifications

Question 53

Which of the following factors help determine a manager\'s span of control?

Accepted Answer

The level of standardization of the work to be done

Question 54

The informal organization of a business is probably best suited to:

Accepted Answer

create a feeling of camaraderie among employees and encourage teamwork.

Question 55

One of the most difficult management challenges today is managing change. This is because:

Accepted Answer

change requires cooperation and an awareness of a need for change.

Question 56

Fayol believed that decision-making authority should remain in the hands of top management:

Accepted Answer

in small organizations, but should be delegated to middle and first-line managers in large organizations.

Question 57

Within its production department, Sooner Manufacturing has shift leaders, supervisors, assistant plant managers, plant managers, product group managers, assistant division managers, division managers, an assistant vice president for production, and a vice president in charge of production. Given its multiple layer management structure, Sooner Manufacturing is an example of a(n) ____________ organization.

Accepted Answer

tall

Question 58

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

Accepted Answer

It provides for efficient use of organizational resources

Question 59

______________ organizations are characteristic of many layers of management and function with well-defined rules and procedures.

Accepted Answer

Bureaucratic

Question 60

In a bureaucratic organization:

Accepted Answer

employees follow strict rules and regulations.

Question 61

The purpose of a PERT network is:

Accepted Answer

to monitor the progress of a multi-step project during its development.

Question 62

Firms often use a(n) _____________ when working on a major project involving the production of a large item such as an airplane, ship, or bridge.

Accepted Answer

fixed-position layout

Question 63

Modular facilities layouts consist of:

Accepted Answer

teams of workers who work together on a complex assembly.

Question 64

____________ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels.

Accepted Answer

Statistical process control

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