Ch.1-2 Business Management

What percentage of businesses in the US are small businesses?

98%

With mass production, the cost of goods manufactured should increase for each product made

false

The parent company that provides a franchised product or service

franchisor

One who starts, manages, and owns a business

entrepreneur

With advanced technology, what happens to the cost of each unit produced? a. decreases b. increases c. remains about the same d. stagnates

a. decreases

In return for payment of franchise fees, a franchise is given a. exclusive rights to sell the franchised product b. a guaranteed profit c. complete protection from business failure d. absolute independence

a. exclusive rights to sell the franchised product

In the last two decades, the labor participation rate for women has a. increased b. decreased a little c. decreased a lot d. stayed about the same

a. increased

What type of business produces goods that other businesses use to make things? a. industrial b. manufacturing c. service d. commercial

a. industrial

When workers become empowered, what happens to the quality of their work? a. quality increases b. quality decreases c. quality remains about the same d. none of the responses

a. quality increases

About how many businesses of all kinds are there in the US according to your text?

about 25 million

Discuss the advantages and disadvantages of operating a franchise business. Give atleast three advantages and three disadvantages.

advantages: greater chance of success, only 5-10% failure rate, and provides training and advice disadvantages: may be restricted in decision making, may require franchisees to buy all items for franchisor, and cannot sell without permission

Which of the following is used as an indicator of a nations economic wealth? a. a TQM chart b. GDP c. ESOP d. none of the responses

b. GDP

Which of the following refers to a commitment of excellence? a. ESOP b. TQM c. GDP d. TMQ

b. TQM

Which statement is incorrect about flexible scheduling? a. allows employees to start work earlier than other employees b. discourages employees to adjust schedules to meet family needs c. allows employees to start work later than other employees d. helps employees avoid rush hour traffic jams

b. discourages employees to adjust schedules to meet family needs

The problem of equal opportunity a. has not been a problem for American businesses b. has been most obvious with minorities and women c. cannot be changed by individual businesses d. is likely to disappear by itself

b. has been most obvious with minorities and women

Which of the following statements is incorrect in relation to managing the environment? a. increased attention has been placed on preserving natural resources b. increased attention has been placed on conserving resources that are renewable c. increased attention has been placed on transforming discarded materials into new products d. increased attention has been placed on reducing growth of waste

b. increased attention has been placed on conserving resources that are renewable

A business changing from coal to natural gas violates environmental goals but meets conservation goals

false

A business functions successfully when it isolates itself from the people who help achieve its goals

false

A business should not have to reduce its profit in order to reduce possible physical harm to others

false

A flexible schedule permits employees to start and leave work early but does not allow employees to start and leave work late

false

A generally accepted business principle is that men should receive more pay than women for the same job

false

Business owners must be well-informed about the production and marketing activities rather than the financial activities of a business

false

Chemical products used to destroy insects and plant life have especially safeguarded waterways and land areas

false

Domestic goods refer to products made by firms in other countries

false

In measuring comparable worth, the same pay scale should be used when comparing distinctly different jobs with similar requirements

false

More managers are usually needed when workers are empowered

false

Over half of all businesses fail within the first three startup years

false

The 1945-1965 high birth rate period is referred to as the baby bust

false

The demand for both skilled and unskilled workers has been increasing

false

The demand of a product refers to the number of similar products that will be offered for sale at a particular time and at a particular price

false

The majority of workers in this country are employed by large businesses

false

The number of manufacturing firms today far exceeds the number of service firms

false

When employees learn each other's jobs and regularly switch jobs with others, productivity drops

false

Wholesalers and retailers are classified as industrial types of business

false

The quantity, or amount, produced in a given time

output

Describe some of the major social issues that face businesses today

poverty; unemployment; unequal pay; societal values; drug overuse; alcoholism; gambling

List the three activities all businesses perform

production, marketing, and finance

Groups that are affected by a firms actions

stakeholders

Name a franchise business that you would be most interested in operating and explain why you picked the particular business

Chick fil A; it is a fairly cheap franchise to buy and provides training and support to everyone, also good food

What does ESOP stand for? How does a company benefit if it has an ESOP?

Employee Stock Ownership Plan; increases productivity and motivates employee to work harder and better

Which statement is true about pollution? a. smog is not a form of pollution generated from motor vehicles b. pollution creates breathing problems c. pollutants do not kill fish or other marine life d. pollution dangers have become less and less apparent throughout the decade

b. pollution creates breathing problems

The demand for a product refers to a. the number of similar products that will be offered for sale at a particular time and at a particular price b. the number of similar products that will be bought at a given time at a given price c. the price at which a product will sell most readily d. the most competitive price of a product

b. the number of similar products that will be bought at a given time at a given price

The period that created a shortage of young workers

baby bust

What is the main reason there is a decline in the number of young workers in recent years?

baby bust and many people over 55 are returning to work

Discuss which is more important, effectiveness or efficiency

both are equally important

An important characteristic of business is that it is dynamic, or constantly changing. Give an example to illustrate this statement.

business needs to change with society; people aren't driving as much anymore and people in the car industry noticed this therefore creating Uber to accompany society's needs

The price of a product is determined primarily by a. supply only b. demand only c. both supply and demand d. competition

c. both supply and demand

The most challenging way to achieve efficiency is through a. specialization b. technology c. reorganization d. innovation

c. reorganization

All are factors in determining comparable worth, except a. requiring special skills b. requiring certain physical ability c. specifying a male or female for the position d. specifying a particular educational background

c. specifying a male or female for the position

Which of the following is a renewable resource? a. coal b. natural gas c. sunshine d. iron ore

c. sunshine

Which of the following statements is true about work teams? a. the quality of work increases while quantity decreases b. the quantity of work increases while quality decreases c. the quality of work increases while quantity also increases d. the quality of work decreases while quantity also decreases

c. the quality of work increases while quantity also increases

Paying workers equally for jobs with similar but not identical requirements

comparable worth

A video rental store is an example of a(n) a. industrial business b. manufacturing business c. wholesale production business d. commercial business

d. commercial business

Which of the following statements about the treatment of employees is NOT true? a. employees want more variety in their work b. employees want to participate in decisions affecting their work lives c. employees are participating in wellness programs d. employees want less on the job responsibility

d. employees want less on the job responsibility

The point at which birth and death rates balance is called a. census growth rate b. balancing growth rate c. leveling-off rate d. zero population growth

d. zero population growth

Cut back on goods and services provided

downsize

Occurs when an organization makes the right decisions about what products or services to offer

effectiveness

Occurs when an organization produces needed goods and services quickly at a low cost

efficiency

Workers decide how to improve the work process

empowerment

List two reasons why a large business would encourage intrapreneurship

encourages creativity and keeps employee from quitting to start their own business

The rules of conduct that set standards for what is valued as right or wrong behavior of a person or group

ethics

An invisible barrier to job advancement

glass ceiling

List two reasons why the population continues to grow despite zero population growth

improved healthcare and immigration

All organizations within a category

industry

The process of producing large quantities of identical goods

mass production

Describe the changing nature of the population and the labor force

shifts in age groups (more over age 55); more women working outside home; as population grows so does the labor force

Name three techniques that American businesses can use to improve efficiency and productivity

specialization, innovation and technology, and reorganization

Suggest two ways in which businesses can be socially responsible

sponsor little league teams and develop school partnershipd

Underdeveloped nations

third world

A business advances its own interests when it becomes involved socially

true

A business that trains gang members in job related skills is being socially responsible

true

A code of ethics usually includes such issues as bribing government officials and using company property for personal use

true

A franchise is one method of starting a business if a person has limited business experience

true

A good measure of a nations wealth is its GDP

true

A physically unfit employee is absent more than a fit employee but tends to be more productive

true

American consumers spend more money on restaurant meals than on grocery purchases

true

An example of the underground economy occurs when a parent gives a child $3 for doing a household chore

true

An unemployed 16 year old student is considered part of the labor force

true

Drug overuse leads to poor job performance and causes accidents

true

ESOPs have been shown to increase productivity

true

Ethical behavior relates to practices that are considered acceptable as well as unacceptable

true

Industrial businesses engage in producing things

true

Intrapreneurs risk neither their salaries nor their savings to launch a new business

true

Knowing what customers want is critical to achieving effectiveness rather than efficiency

true

Profit is the difference between earned income and costs

true

Social responsibility refers to the duty of a business to contribute to the well-being of society

true

The GDP of a country must grow faster than its population in order to improve its living standards

true

The failure rate for non franchised businesses is higher than the failure rate for franchised businesses

true

The most difficult way to obtain increased efficiency is through reorganization

true

The success of a business depends greatly on managerial effectiveness

true

What was the major factor which caused the rise in the labor participation rate in recent years?

women joining workforce