TEST 2 principles
Which of these describe a belief that corporations have a social responsibility beyond pure profit?
CSR
Which of the following describe values of an organization?
What do we stand for and believe in? What standards can be used to evaluate us and judge us?
Which of the following describe mission of an organization?
What is our strategic purpose for operating?
ABC Products is described as having a _______ when it successfully attracts more customers, earns more profit, or returns more value to its shareholders than rival firms do.
competitive advantage
In the retail industry, ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price. ABC can be described as utilizing which of the following strategy?
differentiation strategy
List four common causes for business failure.
economic factors, financial causes, lack of experience, and personal reasons such as the owner's decision to move onto another opportunity
Which of the following defines those markets in nondeveloped countries that present tremendous potential for multinationals?
emerging markets
International trade specialists that buy goods at a discount from small businesses and resell them abroad are called:
export trading companies
Which of the following a strategy where a company sends its product to an international market and fills the order just as it fills a domestic order?
exporting
Collectively, Internet users amount to about 80 percent of the world's population.
false
Ethical blindness refers to when leaders are not able to see inconsistencies among values they say they follow.
false
FDI is a contractual agreement whereby, in exchange for a royalty or fee, a company gives the right to another company to use a trademark, know-how, or other proprietary technology.
false
The DHL Global Connected Index, which tracks the flow of capital, information, trade, and human resources, indicates that the degree of globalization continues to decline.
false
A firm's ______ environment contains elements that can impact the firm but are generally beyond its direct control. These elements are characteristics of the world at large and are factors that all businesses must contend with, regardless of the industry they are in or type of business they are.
macro
According to Hofstede, the degree to which a society emphasizes traditional qualities such as advancement and earnings refers to which of these?
masculinity
Which of the following SWOT factors are external to the firm?
opportunities and threats
_____ involves selflessly working with followers to achieve shared goals that improve collective, rather than individual, welfare
servant leadership
A(n) _____ is any group or individual who can affect or is affected by an organization's strategies, major transactions, and activities.
stakeholder
A firm's decisions on how to serve customers and compete against rivals is called ______.
strategic positioning
Which of the following approach best defines the sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfillment?
the common good
All of the following are characteristics of an entrepreneurial personality EXCEPT:
the willingness to be a follower rather than a leader
Which of the following represents a duty-based approach?
universalism
"V" in VRIO refers to which of these?
value
Which of these principles is related to universalism?
virtue ethics
____ is based on character traits such as being truthful, practical wisdom, happiness, flourishing, and well-being.
virtue ethics
Once you have decided to go into business for yourself, there are three ways that you can acquire this business. List them.
(1) start from scratch, (2) buy an existing business, and (3) buy a franchise
Which of these refers to our choices and decision-making processes and our moral principles and values that govern our behaviors regarding what is right and wrong? Group of answer choices
ethics
In low uncertainty avoidance countries managers are advised to provide structure and order to reduce uncertainty and ambiguity for subordinates.
false
In societies with low power distance, people are more likely to accept that power inequality is good and acceptable.
false
It is not advisable for small businesses to use the services of CPAs and lawyers because most businesses are too small to afford the expense.
false
Rivalry is weakest within a strategic group, and the actions of one firm in a group generally does not elicit responses from other group members, as market share in the industry is rarely affected.
false
Strong rivalry in an industry increases the profit potential for all firms because consumers have many firms from which to purchase products or services and can make at least part of their purchasing decisions based on prices.
false
Support activities, according to the value chain, are the actions a firm takes to directly provide a product or service to customers.
false
Unfortunately, rights principle is grounded in legal but not moral rights.
false
Once the business plan is finished, the next step is to:
find financing
In the management assistance area, the Small Business Administration (SBA) provides all of the following EXCEPT:
free college credit courses in management
All individuals should be treated equally is a basic tenet of which principle?
justice
______ is a contractual agreement whereby, in exchange for a royalty or fee, a company gives the right to another company to use a trademark, know-how, or other proprietary technology.
licensing
Which dimension of cultural intelligence reflects the ability and desire to continuously learn new aspects of cultures and adapt to them?
motivational dimension
Which of the following elements does NOT typically appear in a well-prepared business plan?
names of all employees
In the GLOBE project, Denmark and Finland are part of which country clusters?
nordic europe
______ refers to the field of ethics concerned with our asking how should and ought we live and act.
normative ethics
Our choices and decision-making processes and our moral principles and values that govern our behaviors regarding what is right and wrong are also part of ethics.
true
To achieve a competitive advantage over rivals in the industry, the successful cost leader tightly controls costs throughout its value chain activities.
true
When researchers examined the ongoing assumption that all residents of a given country will behave according to broad cultural norms, they found that 80% of variation in cultural values is actually within countries.
true
A firm's _____ is the progression of activities it undertakes to create a product or service that consumers will pay for.
value chain
_____ 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
List five reasons why small businesses thrive in the United States.
(1) Independence and a better lifestyle comes with owning a small business. (2) Small business owners receive personal satisfaction from their work. (3) Rapidly changing technology has made it easier for small businesses to compete with larger ones. (4) There is a growing use of outsourcing. Many small business owners support larger companies by providing outsourcing services. (5) Small businesses offer their owners the best route to success. (6) Corporate restructuring and downsizing has forced many people to look for new jobs and new careers.
In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an appropriate question to ask?
Are there any problems with the business? Why are you selling? Will the customers stay with the business? Is the business operating at a profit?
James is the owner of a small toy manufacturing company. James primarily focuses on buying and selling of products using the Internet. Which of the following best describes James' business practice?
E-commerce
According to Hofstede, which of the following is an implication of high individualism?
Employee-employer relationship based on the market
All of the following aspects are central to servant leadership EXCEPT:
Placing self-interest before anything else
According to Hofstede, which of the following is an implication of low masculinity?
Successful managers are seen as possessing both male and female characteristics
One way to ease the burden of managing a business is to hire an outside consultant. Which of the following is an example of an outside consultant that might be useful to a small interior design company?
a certified public accountant to manage its money a company to mail its brochures to building contractors within a 200 mile area an advertising company to design its ad in the local newspaper
Which of the following strategy is one in which the company decides that it makes sense to organize its functional activities, such as marketing, finance, etc., around geographical regions that play a critical role in terms of?
a regional strategy
What is the first step for starting a new business?
a self-assessment to determine whether you have the personal traits you need to succeed, and if so, what type of business would be best for you
_____ refers to factors that prevent new firms from successfully competing in the industry
barriers to entry
Which of these describe the area of applied ethics that focuses on real-world situations and the context and environment in which transactions occur?
business ethics
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
a formal written statement that describes in detail the ideas for a new business and how it will be carried out.
business plan
Which of the following describe the beliefs and behaviors that determine how a company's employees and management interact inside an organization and also handle outside business transactions?
corporate culture
Garden Tools, Inc. (GTI) offers customers its product or service at a lower price than its rivals can. GTI can be described as utilizing which of the following strategy?
cost-leadership strategy
A small business owner that uses ___to finance his or her venture is using borrowed funds that must be repaid with interest over a stated period of time.
debt
The person who takes the risk of starting and managing a business to make a profit is called a(n):
entrepreneur
What are the two types of financing available to entrepreneurs?
equity and debt financing
When a leader can "talk the talk" but do not "walk the talk" on values, it refers to which of these symptoms of the failure of ethical leadership?
ethical muteness
When leaders are unable to act on their values from lack of knowledge or fear of the consequences of their actions, it refers to which of these symptoms of the failure of ethical leadership?
ethical paralysis
Which of the following is NOT a reason why small business thrives in the United States?
guaranteed profits
intrapreneurs
have a high degree of autonomy in spite of the fact they work for a large corporation run mini-companies within large corporations receive regular salaries and employee benefits have the characteristics of creativity, vision, and risk taking.
One way to ease the burden of managing a business
hire outside consultant
Which of the following leadership profile describe the degree to which the leader shows compassion and generosity, according to the GLOBE project?
humane-oriented
"I" in VRIO refers to which of these?
imitation
In societies with high _______ scores, individuals are valued for their achievements and are rewarded and recognized for such achievements.
individualism
Which term best describe a group of firms all making similar products or similar services?
industry
Examples of _______ are being helpful, honest, courageous, independent, and polite.
instrumental values
do not own their own companies but apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own.
intrapreneurs
classic entrepreneurs that start small and plan to stay small.
micropreneurs
Which of the following country cluster is low on charismatic leadership style, according to the GLOBE project?
middle east
____ rights are universal and based on norms in every society.
moral
are entrepreneurs that start a series of companies.
multipreneurs
Marc Adler is the owner of Macquarium, a multimillion-dollar communications company that does everything from video productions to creating Web sites to public relations campaigns. Macquarium has done this sort of work for BellSouth and SnapOn Tools. Even though these companies could have prepared their videos and created their Web sites in-house, these tasks were:
outsourced
Angel investors:
provide funding for start up businesses
Rebecca has always touted social recognition, friendship, accomplishment, and comfort as her desired goals that she is working towards in life. These are examples of ______.
terminal values
"T" in the SWOT analysis stands for ______.
threats
A firm's resources and capacities are the unique skills and assets it possesses.
true
A global strategy is based on the assumption that the world is extremely interconnected, and that patterns of consumption and production are fairly homogeneous worldwide.
true
According to the GLOBE project, countries in the Latin American cluster tend to be more collective, have high power distance, and have high uncertainty avoidance.
true
Because tariffs are usually passed along to the consumer in the form of higher prices, imposing tariffs on imported goods gives domestic companies a price advantage and protects them from foreign competition.
true
Culture tells people who they are, which behaviors are appropriate, and which are not acceptable in any society.
true
Firms in an industry may or may not compete directly against one another, as we'll discuss shortly, but they all face similar situations in terms of customer interests, supplier relations, and industry growth or decline.
true
One of the reasons small businesses continue to thrive in the United States is outsourcing.
true
While ________ are things a firm has to work with, such as equipment, facilities, raw materials, employees, and cash, _____ are things a firm can do, such as deliver good customer service or develop innovative products to create value.
resources; capabilities
Which of the following represents a moral and legal entitlement-based approach?
rights
Which of the following describe the degree to which social benefits are unequally distributed and those patterns are perpetuated for life?
social stratification
Which of the following describe empowering followers to make decisions and gain control over their work? Group of answer choices
stewardship
Which term describes the process that firms use to study and understand the many different layers and aspects of their competitive environment?
strategic analysis
Identifying and separating terminal from instrumental values in any given situation can assist individuals, groups, and work units in distinguishing between the "ends (goals) from the means (methods to reach the goals)" and vice versa in making decisions, thereby helping us choose more ethical options—or at least less unethical ones—in situations.
true
More than half of small businesses have between one and four employees.
true
One of the biggest advantages that a small business has over a large business is a greater ability to serve specialized markets.
true