Intro to business

What is the best reason for a business to be managed ethically

An ethically managed business helps to reduce employee turnover.

Which circumstance is most likely to reduce one standard of living?

An increase in the cost of some goods such as escalating gas prices

According to Maslows theory, when a need is satisfied

Another, higher level need emerges and motivates a person to satisfy that need

Organizational ethics begins

At the top levels of management

Her native countries loss of knowledge through her excellent education and training is described as

Brain drain

Kristin recently accepted a position at a major university. One of the first things her supervisor provided her with was a large white notebook that contained rules and regulations on just about every aspect of the university's business. As a recent business graduate, Kristin realized that the university operated in a(n) __________ environment.

Bureaucratic

An equipment manufacturer makes mixing equipment for the three large bread baking companies. Each company wants to make one small design change to meet its individual needs. The manufacturer can use __________ that makes it possible to custom-design products for small markets with very little increase in cost.

CAD/CAM technology

The issue of subsidizing childcare through one's employers benefits plan is a hotly debated topic. Workers at a company who oppose this benefit

Complain that they will have to contribute to a benefit that they do not use

Which statement best illustrates why we say, "the role of management is evolving?"

Contemporary managers will focus on collaboration, and continue to emphasize the team approach to work

Grand brands, a foreign maker of washing machine tubs and pumps, sells its parts for several washing machine factories in the United States. Who brands them as their own. This is called

Contract manufacturing

Companies are focusing attention on the social issue known as elder care because it is

Decreasing productivity at work because of the need of workers to care for elders

A country exports $75 million worth of steel to the United States and sells it for $60 million in order to establish a new market in the United States. This is an example of

Dumping

The way in which a countries resources are used to produce goods and services in the way those goods and services are distributed among those who desire to have them depends upon the

Economic system under which the country operates

Cho started out with one small cupcake shop. Her business has grown so much that she now has two other shops across town. Cho has found that having three locations has greatly increased her production levels. She also notices that the price she pays for supplies (flour, butter, sugar, and packaging materials) has gone down considerably since she can now buy these items in bulk quantities. This exemplifies the principle known as

Economies of scale

When Daisy found herself doing paperwork rather than serving her customers, she most likely decided to

Embrace technology

Wally is a contemporary manager who gets things done. Which statement most likely describes Wally's approach?

Emphasizing teamwork and cooperation, and acting as a coach, rather than a boss

Recently, Raj switched jobs from a large firm to a medium-sized firm. As one of four project managers at the new firm, Raj recognizes that employees have much more respect for his expertise than he perceived at the larger firm where there were a minimum of 25 project managers. According to Maslow, which need in his hierarchy is important to Raj?

Esteem

Josie's supervisor directed her to use false information in order to enhance sales numbers, while intimating that not participating would spoil Josie's chances for promotion. Josie was faced with a(n)

Ethical dilemma

When the value of exports from a country exceeds the value of imports in the country, there is a

Favorable balance of trade

This company wants to make a commitment to the island, including the hiring of several hundred local employees. It is using a global market strategy called

Foreign direct investment

Hal serves on a committee of employees who were charged with selecting three coworkers to honor at the holiday banquet. One employee whose name was at the top of everybody's list was instrumental in helping another employee who failed to wear his protective headgear to avoid suffering a serious head injury. Although this was a noble act, Hal knew that the hero was frequently negligent about wearing his own headgear. Hal knew that several other employees followed strict company policy every day and always wore their headgear, yet they were not being acknowledged for their compliance. According to Norman Vincent Peale, which question should Hal ask as he proceeds to make an ethical decision?

How does the action I am proposing to take make me feel about myself

What must we ask when faced with an ethical dilemma?

How will it make me feel about myself?

The following chart describes opportunities and challenges in the external environments that surround businesses. Which statement best completes the empty cells?

Identity theft is a challenge in the technological environment of businesses, while the desire for green living presents opportunities for new businesses in the global environment

Buying products produced in another country is known as

Importing

With respect to the development of scientific management, Frederick Taylor's objective was to

Increase productivity at work

Inez works on an assembly line in a candy manufacturer that produces limited quantities of chocolates with a variety of fillings. Inez and the others on her line switch the type of candy produced up to three times per shift. This describes a(n)

Intermittent process

A limited partner is an owner who

Invest money in the business but does not have any management responsibility or liability for losses be on his or her investment

Adam Smith believe that one's self directed gain what eventually create prosperity for many, the process is called the

Invisible hand

The most basic question in an ethics based management system is

Is it legal?

Management expert peter Drucker said the most important factor of production in our economy is, and will always will be,

Knowledge

Keen, an operations manager at a wood processing plant, notices that there is significant scrap and inefficiencies in the plant's operations. Which technique would he most likely be interested in implementing?

Lean manufacturing

At Derrick's Disc Encore, a store that buys and sells used CDs and DVDs, there is only one general partner, Derrick. He spends all his time running the business and making the decisions. Derrick's mother and sister put up money for him to buy the store. Although they work full time at other jobs and have no management say in the running of Derrick's Disc Encore, they share in some of the profits. This is an example of a(n)

Limited partnership

The topics of gross GDP, the unemployment rate, and price indexes are examples of which branch of economics?

Macro economics

New design and production techniques have

Made it possible to custom make products in response to customer demand

What would be required for service providers to compete in the future?

Maintaining close relationships with their suppliers

The evolving business environment has made __________ a critical managerial function.

Managing change

When J.R. joined his Uncle's oil exploration company in east Texas, he was given several hundred shares of stock in the firm, and was officially made a partner. The firm's accountant explained that this partnership looks much like a corporation and is traded on a stock exchange but is taxed like a partnership and thus avoids the corporate income tax. Income received is not taxed before it is passed on to investors as dividends as it would be if the company were a corporation.. This firm is likely a special form of ownership called a

Master limited partnership

"We believe in creating loyal customers by providing a superior experience at a great value. We are committed to direct relationships, providing the best products and services based on standards-based technology, and outperforming the competition with value and a superior customer experience." This statement is a part of Dell's

Mission statement

________ economies are economic systems were some allocation of resources is made by the market and son by the government.

Mixed

Which statement best describes a capitalistic nation?

Most or all of the factors of production and distribution are privately owned and operated for a profit.

Choose the best reason for a country's to participate in foreign trade.

No nation can produce all the products it's people want and need

Memories and melodies is best classified as a________ Organization.

Nonprofit

What must companies do to be competitive in today's market?

Offer high-quality products and outstanding service at competitive prices

All managers spend time planning. Bo is a general manager for a large baby-supplies store. Each day she plans the number of employees she will have in each department, including the number of cashiers. She plans the break schedules and the freight delivery schedules. In the business world, we refer to this as __________ planning.

Operational

Taylor started a small business a little less than 10 years ago. The business employed several social workers and nurses that visited and cared for persons who had left hospital care, but were not quite ready to be on their own at home. As the CEO of the firm, Taylor decided it was time to hire a business operations manager and a marketing manager to handle the details of the business. Which function of management was Taylor primarily performing?

Organizing

The sources of grievances in the workplace generally involves

Overtime rules, promotions, and layoffs

Elton mayo's famous experiment at the Hawthorne plant concluded

People who perceive that management permits them to contribute to work decisions might be more productive

In the past, the major purpose of organizational design was to facilitate the needs management and doing their job easier, rather than

Pleasing customers

Negotiations between union representatives and management came to a standstill at the Sports Hero Footwear Company. On the day employees went on strike, they along with the general public were asked by the union to refrain from buying the company's products. The union was asking Sports Hero employees and the general public to participate in a(n)

Primary boycott

According to Herzberg, workers felt that good pay and job security

Provided a sense of satisfaction with the job, but did not motivate them

Given the ethical lapses Prelević today, how can we restore trust in the free market system and then leaders in general?

Punish those who have broken the law.

Frederick Taylor believed that the best way to improve worker productivity was to

Scientifically determined the most efficient way to perform a task and then teach people exactly how to perform it

When Micha started his window-washing business, he wanted to keep things simple. He liked the idea of being his own boss and the possibility of leaving the business one day to his son. He chose the type of business that was easy to start, allowed him to keep company profits, and would not have any special taxes assessed. Micha's financial resources were limited, but so were his concerns; after all, "he was the business." Micha's business is most likely a(n)

Sole proprietorship

A traditional tool that serves as a way of evaluating a company's current business situation is called the SWOT Analysis. This is an acronym for

Strengths, weaknesses, opportunities, threats

Which characteristic is typical of a C corporation?

Taxed separately from its owners who also enjoy limited liability

Jada works at an upscale wine and spirits shop. When shoppers walk in the door, each is greeted with the same script: "Welcome to Caron's. My name is __________. How may I help you?" All customers must be greeted in less than one minute after they have entered the shop. Which management theorist would have approved of this method of operation?

Taylor

Why did the unauthorized AFL group called the committee of industrial organizations decide to organize

The AFL intentionally left out unskilled and semi skilled workers

The tendency for people to behave differently when they know they are being studied is referred to as

The Hawthorne effect

Jolene planned to open a pastry shop in a resort town on the East Coast. As she pondered her organizational setup, she decided she would need four employees to specialize in the creation and production of delicate pastries, and three employees to greet, serve, and sell to customers. One or two of her workers were designated as supervisors. Another preliminary organizational decision that Jolene will most likely tackle is

The allocation of resources within her operation

As a strategy for reaching global markets, licensing provides the licenser with several advantages. One advantage is

The cost of producing and marketing the product in a foreign market is significantly reduced

Most businesses follow a logical process when performing the planning function. It is important to understand __________ before creating long-term goals, objectives, and strategies.

The current situation

The resources used to create wealth are collectively referred to as

The factors of production

Profit is best described as

The funds available for business growth, after expenses and salaries are paid

Which statement is most accurate in describing the current trend in manufacturing in the United States?

The number of people working in manufacturing continues to fall

Which of the following statements concerning the US service sector today is most accurate?

The service sector has grown much more rapidly than the manufacturing sector.

A manager's need to exert tight controls on subordinates (span of control) is most accurately captured by which statement?

The span will narrow at higher levels of the organization, because work becomes less standardized and managers and workers need more face-to-face communication.

HomeMart operates stores in nearly every state. Drug testing before an applicant is hired and random testing of employees has helped HomeMart lessen the costs associated with drug abuse. What issue has arisen that is affecting HomeMart's drug testing program?

The testing issue has been complicated by states that have legalized marijuana in some form

In accordance with Maslow's way of thinking, if Kava secured a good-paying job that paid her enough to live in a decent apartment and buy an economical car, and if she felt that her work location and her home location were relatively safe places, she would

Turn her focus to the next level of needs: social needs

After eight years of working for a company that installed underground sprinkling systems for golf courses, Stephen was ready to venture into his own business. As he prepared his SWOT analysis, he evaluated where he stood at this time. He was fortunate to have $100,000 financing to get the business underway. He knew of three skilled installers who were willing to work and interested in working for him. However, he was also aware that new construction was at an all-time low, with several properties going through foreclosure. In reviewing his list, these events would be categorized as

Two strengths and one threat

Which movement in US history would be considered an outgrowth of the industrial revolution, according to most historians?

Union movement

According to herzburg, what is a hygiene factor?

Working conditions

A mobile veterinary business, Portable Paws, Inc., created a mission statement long before it opened its doors for business. The mission statement referred to the unique characteristic of the business: a traveling pet unit whose veterinarians went to the home of the pet owner, rather than the pet owner bringing the pet to the clinic. What other criteria should be considered for the mission statement?

a description of the customers it serves and a statement about its social responsibility to the area where it operates

Under a(n) __________ agreement, companies can hire nonunion workers who are not required to join the union, but who must pay a special union fee.

agency shop

The difference between money coming into a country from exports and money leaving a country due to imports, plus money flows from other factors, is known as the

balance of payments

The Republic of South Africa exports edible fruits and nuts into the common market known as the European Union, and imports from the European Union other products which South Africa could produce but at a higher cost than what it costs the Europeans to produce. This practice follows the theory of

comparative advantage

The process of setting up individual departments to do specialized tasks is called

departmentalization

The first step in the process of organizing a business is to

determine the work that needs to be done.

According to the text, ethical behavior begins with

each of us

The principle of __________ means that each person should know to whom they report, and that managers should have the right to give orders and expect others to follow.

hierarchy of authority

Among the changes resulting from increased global trade is

improved living standards around the world.

According to economist Thomas Piketty, income inequality

is harmful and there is little evidence that people need to be paid such excessive amounts.

When it comes to ethical behavior

many Americans decide what's ethical based upon the situation in which they find themselves.

__________ is about converting resources into goods and services. It includes inventory management, quality control, production scheduling, follow-up services, and more.

operations management

In order for the value of goods and services to be counted as part of the nations gross domestic product, the goods and services must be

produced within the physical boundaries of a particular nation.

Efficiency means

producing items using the least amount of resources

Eleanor and her best friend Julie Ann, from beauty college, are starting a salon together. Both stylists have worked for other salons but have no experience working for themselves. Before entering into a partnership, the two friends should first

put all terms of the partnership into writing in a partnership agreement.

The owners of a corporation are called

shareholders

Which form of business ownership is the most common in the United States?

sole proprietorship

Division of labor means

tasks are divided into areas of specialization among a group of employees

In terms of economic systems, the trend has been for countries

that are mostly capitalist to move toward more socialism.

Unlimited liability means

the business is responsible for the debt it incurs. If the business cannot pay its bills, the debt burden transfers to the owner(s), and they are liable for all debt.

Ethics are the standards of right and wrong set for us by society, whereas legality refers to

the collection of laws to protect society from fraud, theft, and violence.

A brother and sister team, Anthony and Rosa, took over the family's Italian restaurant business from their father. Rosa operates one of the three locations, keeps the firm's books, and orders supplies and equipment for all three locations. Anthony operates the other two restaurants. Anthony thinks he should get two-thirds of the company profits because he is responsible for the profitability of two out of three locations. Rosa sees it differently because she feels her responsibilities span the entire business. What's most important for them to remember in their situation is

the fact they both share unlimited liability, so if one or the other failed to meet his/her financial commitment, the other partner would also be liable for all debts.

Workers originally formed unions

to protect themselves from intolerable work conditions and unfair treatment