Intro to Business (Exam Two)
_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.
management
_____ are groups of employees who share resources and coordinate efforts so as to help members better perform their individual duties and responsibilities. The performance of this group can be evaluated by adding up the contributions of the individual group members.
work groups
The Austrian-company Wienerberger is the world's largest brickmaker. It had to use the management function of _____ when it integrated the employees and manufacturing facilities that it gained from a merger with a brickmaking company in Great Britain.
organizing
Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The establishment of a new company and assigning the employees in the division the task of making an idea a reality requires which management function?
organizing
_____ involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals.
organizing
_____ is the process of arranging the structures and relationships of human and material resources to carry out an organization's plans.
organizing
The difference between the small business owner and the entrepreneur is that the entrepreneur:
assumes the risk of the business
Jack Welch, former CEO of General Electric, was known by his employees as "Bloody Jack" because of the downsizing and restructuring he insisted the company do if its various departments were unable to achieve organizational goals. Knowing this nickname, you can assume that Welch used _____ power to accomplish his goals for GE.
coercive
A network of Bennetton retail sales agents select the Bennetton designs that they feel will appeal to Bennetton retail customers. The responsibility for picking the next "hot style" is in the hands of this group. This is an example of a _____ structure.
committee
The disadvantages of group cohesiveness include:
conflict with other work groups in the organization
The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).
debt; equity
A supervisor engaged in ______ is grouping people, tasks, and resources into organizational units to facilitate the planning, leading, and control processes.
departmentalization
The management activity of organizing.
determines, groups, and assigns work activities
An advertising agency that has separate departments for artwork, creative design, print advertising, radio advertising, television advertising, and specialty advertising is using _____ departmentalization.
functional
Coca-Cola Enterprises (CCE) is the largest bottler and distributor of Coke products in the world. It is organized around its North America division and its European division. This departmentalization by _____ allows CCE to respond to the demands of different markets.
geography
Hugh Larrimore, Wilson Knight, and Frieda Perez have worked together for twelve years. They always clock in and clock out together. If one of the threesome happens to be late, the others will wait for him or her. This commonly accepted behavior for this informal group is called a(n):
group norm
Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to:
look for customers
Both Kennedy and LaGuardia Airports have established airport management committees. These structures are advantageous because it:
makes the coordination of activities much easier
_____ is a permanent organization structure that combines functional and product departmentalization.
matrix structure
The typical problem-solving team:
meets on a regular basis to share information and discuss ways to improve processes
Dean Jager is the supervisor of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all its volunteer staff efficiently. Jager is involved in _____ planning.
operational
In 2005, BridgePort Brewing Company expanded sales of its BridgePort India Pale Ale, and BridgePort Black Strap Stout into Alabama, Georgia, Kansas, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee and Texas. These states will join BridgePort's current distribution markets of Alaska, Arizona, California, Colorado, Idaho, Montana, New Mexico, Oregon, and Washington. When the brewery allocated resources to increase its production and distribution, it would have relied on which of the following management functions?
organizing
When Maslow wrote, "A musician must make music, an artist must paint, a poet must write, if he is to be at peace with himself. What a man can be, he must be," he was more than likely referring to man's:
self-actualization needs
The first step in starting your own business is:
self-assessment
Many organizations that experienced success using problem-solving teams expanded the team concept to allow team members to have greater responsibility in making decisions, implementing solutions, and monitoring outcomes. These highly autonomous groups are called:
self-managed work teams
_____ is financing obtained from investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.
venture capital
Frederick Taylor's scientific management emphasized:
work effiecency
The father of scientific management was:
Frederick Taylor
Motivation and maintenance factors are essential parts of a job-satisfier theory formulated by:
Frederick Herzberg
Which of the following statements about the committee structure is true?
Committees can be slow to reach a decision.
Theories X and Y management styles are the result of studies by:
Douglas McGregor
Businesses close down for many reasons. Which of the following is NOT a typical reason for a business failure?
Expenses were lower than the owner expected.
_____ are entrepreneurs who apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own. They enjoy a high degree of autonomy while receiving a regular salary and financial backing from their employer.
Intrapreneurs
Which of the following is NOT an advantage associated with matrix structures?
Managers can build large, permanent teams of specialists.
_____ are entrepreneurs who start a series of companies.
Multipreneurs
Fourteen million office workers in the US have their online activities under constant surveillance, according to the Denver-based Privacy Foundation. Worldwide, it reckons the number of employees under such surveillance totals around 27 million people.According to the foundation's Workplace Surveillance Project the low cost of snooping technology is the main reason why employers are employing a _____approach to management.
Theory X
Andy Yocom was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group Inc. What should he include in his business plan?
all of the above the elements of the company that make it unique a management plan an analysis of the market in which the company will operate a financial plan
Which of the following is NOT one of the four functions of management?
budgeting
Kathy Elliot has decided that she will start an Internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliot's next step is to write a formal _____ before she applies for a business loan.
business plan
The original Hawthorne studies were set up to study:
lighting
Mark Ghermizian had quit his job and was looking to start a small business so he could be his own boss. When he read that people spend up to fifteen minutes every day staring at a bathroom stall door, he decided he would find advertisers who wanted to pay to have their advertising messages on bathroom stall doors. Since he has his idea, Ghermizian's next step is to:
choose a form of business organization
When Art Baer read that Singapore would lift its ban on chewing gum, he thought to himself, "There has to be a market there." Baer, 26, knew if he was going to move beyond the daydreaming stage, he had to move fast. After investing $20,000 of his own money into developing a product he called Impress Gum, Baer quit his job, flew to Singapore, talked to the right people in the government, lined up a manufacturer, and hired a marketing firm to promote his gum, which fights tooth decay. Baer is an example of a(n) ______ entrepreneur.
classic
A large furniture and appliance rental business is considering sponsorship options. It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers. The rental company has established a:
cross-functional team
American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors. American Express uses _____ departmentalization.
customer
As part of her marketing project, Lily Unruh is studying how Marriott operates. Since she thought it was simply a hotel chain, she was amazed to learn that its food divisions provide food for school cafeterias, airlines, hotels, and fast-food restaurants. Marriott's food divisions are departmentalized by:
customer
Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n):
entrepreneur
A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:
horizontally-organized team
Venture capital:
is financing obtained from investment firms that specialize in financing small, high-growth companies
One of the disadvantages of the matrix structure is:
lack of cohesiveness
_____ is the process of guiding and motivating others toward the achievement of organizational goals.
leadership
_____ managers are the managers concerned with implementing the plans and policies of top managers and supervising lower-level managers.
middle
An organization's _____ is its general purpose or reason for existence.
mission
A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out.
mission statement
A common use of business plans is to:
persuade lenders and investors to finance the venture
Another name for the matrix structure is the:
project management approach
Angel investors:
provide funding for start-up businesses
Hassan Nasrallah, the leader of Hizbullah: grew up very poor but very smart, and although he wears the robes of a minor Shiite cleric, he is a world-class politician. He has been called the most charismatic figure in the Muslim world. Nasrallah exerts _____ power over his followers.
referent
Dean Jager is in charge of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all of its volunteer staff efficiently. Jager is a _____ manager.
supervisory
After the World Cup soccer games, Puma, the German sporting goods manufacturer, increased its end-of-year sales target by $641 million. Puma developed _____ plans with a goal that extra sales would come from new product categories the company was introducing, sale of soccer equipment, and consolidation of several subsidiaries.
tactical
An article on the health care industry revealed several assumptions that health care administrators have adopted during the last decade. The administrators assume their (1) employees have several interests other than work and will work only to the degree necessary. (2) employees will accept additional responsibilities only if they receive rewards, and (3) employees exhibit little loyalty and will leave employment for reasons that are in their short-term interest. These assumptions lead support to the _____ approach to management.
theory x style of management
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. In terms of the managerial hierarchy, its president Antonino Aquino is in _____ management.
top
Dewayne Gibbons of Burger King decided to introduce a new sliced chicken sandwich without consulting any of his subordinates or the franchise. Managers who use this style of decision making exhibit the _____ style of leadership.
autocratic
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his employees. Siegel used a(n) _____ style to increase Lacoste's sales.
autocratic
Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. During the development of this high-growth company, Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with ______ financing.
equity
A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.
committee
Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times music is played and shared among peers. Jain used _____ financing.
equity
_____ is at the core of most business failures.
inadequate planning
Michael Bronner made a killing in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. The 40-year-old Bronner will more than likely start at least one more new company before he retires because Bonner is a(n):
multipreneur
One of the primary goals of Burberry, a British retailer, is to expand its market. When the company allocated resources so that it could open two stores in Japan, it was engaged in which management function?
organizing
Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. Early in the development of this high-growth company, Arnold and Bradford attracted a group of investors who provided them with money needed to acquire other Internet companies with similar missions. The investment group is called:
angel investor
_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.
angel investors
When he read Chicken Soup From the Soul, Joe Farmer was struck by how many of the stories mentioned the scent of the islands. So Farmer created bottles filled with Hawaiian air and some scented essence beads. When customers shake the bottles up and open the lids, they're transported back to paradise. While many marketing experts did not think that consumers would buy bottles of air, Farmer has earned more than half a million dollars of sale during his first year of operation. Farmer was an example of a _____ entrepreneur.
classic
Airline stewards in China will remove someone from the plane if they attempt to bring their own food with them. Instead, passengers must buy the food sold on the plane. The stewardesses have been given _____ power to deal with passengers who won't obey the rules.
coercive
Gambrinus is a large company that owns and operates the breweries that produce Moosehead Lager, Bridgeport Ale, Pete's Wicked Ale, Corona beer, Trumer Pilsner, and Shiner Bock. Each brewery is run as an independent division and each produces a malt liquor that appeals to a different market. This is an example of departmentalization by:
product
Kohber is a Swiss-company that makes medical equipment. It recently purchased a company, which manufactures packaging for high-value drugs. Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:
product
The Cooke family has worked for various General Motors's divisions for over four decades. Bennett Cooke works at the Cadillac division. Rondella Cooke works at the Buick division. Their son Tyrone works at the Corvette plant, and their daughter Niome works at the Saturn plant. The Cooke family could tell you that GM is departmentalized by:
product
According to Maslow, people need to feel secure, to be protected from physical harm, and to avoid the unexpected. These needs are called _____ needs.
safety
On an automotive assembly line, Naif Marrot checks to make sure that recently painted car bodies are free of paint bubbles. Other people are assigned the task of seeing that other parts of the car are built to specifications. The task of building an automobile has been subdivided into a series of subtasks. The concepts of _____ have been employed in this situation.
specialization and division of labor
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. To achieve this goal, Manila Water's top management will first need to engage in _____ planning to determine what resources are needed to achieve this goal.
strategic
Reader's Digest Association, Inc., has published Reader's Digest magazine for over 80 years, and many believe the publication is dated and can no longer attract many readers. They believe _____ plans are needed to revamp the magazine's content, editorial staff, and readership.
strategic
The world's largest bank, Deutsche Bank, set as its objective to make its brand name as recognizable in the United States as FedEx and Visa are over the next ten years. The implementation of this long-range plan would require _____ planning.
tactical
Which of the following statements describes one the strengths of group decision making?
Group decision making results in a higher-quality decision then individual decision making.
Which of the following statements describes one the weaknesses of group decision making?
Group members may pressure others to conform to decrease the possibility of disagreement.
After graduating from college, Joseph Tantillo decided to start a retail Web site that specializes in personalized Greek apparel. To fund his Web site, he borrowed money from his parents (who expect to be repaid with interest). In other words, he used _____ financing.
debt
Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing.
debt
In 2000, Eric Baker and Jeff Fluhr came up with a concept that would do away with scalping if they had their wish, and everyone used StubHub.com. The Internet company brings people who want tickets and people who have tickets that they are not using together. The company has assisted in the sale of tens of millions dollars worth of tickets annually and is always trying to sell more. It charges a small fee for its assistance. Baker and Fluhr would be classified as:
growth-oriented entrepreneur
Which of the following is NOT one of the five key types of power?
influencial
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. Its primary challenge will be the management function of ____ because it needs to convince the 2,000 employees it inherited from the government-owned facility to work more efficiently.
leadership
Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The ability of the Nortel top management to create this new division and assign employees to it is a result of their having _____ power.
legitimate
When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market. As a result, she has started her own small business to produce and market corn-free desserts. It is a small market, and Logue plans to keep her business small. Logue is an example of a(n):
micropreneur
_____ provides the structure of people, positions, departments, and activities within which the company objectives can be accomplished.
organizing
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. The development, maintenance, and allocation of resources to achieve its goal will require:
planning
The world's largest bank. Deutsche Bank set as its objective to make its name more recognizable in the United States. The success of its decision to sponsor a PGA golf tournament to accomplish this organizational objective will ultimately depend on which management function?
planning
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. Its primary challenge will be to convince the 2,000 employees it inherited from the government-owned facility to work more efficiently. Manila Water sought to boost employee morale by linking pay to performance. In other words, management has used its _____ power to improve employee productivity.
reward
Many rock and roll fans believe that Jimi Hendrix was the best guitarist ever and that he stretched his ability to the utmost. According to Maslow's theory of need, Hendrix more than likely satisfied his _____ need.
self-actualization
_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is less than one year long.
tactical
Elton Mayo, America's first industrial psychologist, was responsible for formulating:
the explanation of the Hawthorne effect
Division of labor refers to:
the process to dividing work into separate jobs