Bfound Final Exam

The _________________ is concerned with dealings between business firms and labor unions.

National Labor Relations Act

Many parties take part in the operation of a corporation. Which of the following describes the duties of corporate officers?

They help make plans, carry out strategies, hire employees, and managed day-to-day business activities.

What is meant by dual-branded franchises?

Two franchisors offer their products together

The purpose of job analysis is to help a manager

Understand the nature of a job

Mergers and acquisitions have existed for a very long time; however, the reasons behind mergers and acquisitions has changed. Historically mergers and acquisitions

Were made by companies desiring to expand their business by using the processes of the acquired companies to improve the acquiring company

Studies show that the incidence of innovation among _____ -business workers is significantly higher than among workers in _______ businesses

small large

According to the textbook, a partnership usually has more capital available than a sole proprietorship because partners can pool their funds. This additional capital, in addition to the general partners' unlimited liability and partners working together in management skills, may encourage _______________ to extend more credit or approve larger loans to a partnership than to a sole proprietor.

Banks and suppliers

When a manager plans for the future of his business and is able to see how all of the parts of the organization work together, it is said that he or she is engaging _______________ to see the "big picture."

Conceptual skills

What type of leader seeks input from almost all workers and makes the final decisions based on their support?

Consensus leaders

What type of leader is one who consults workers before making decisions, helps workers understand their goals, and imposes and fosters a sense of ownership and commitment, and makes the final decisions him- or herself after gathering employee input?

Consultative

Corporations can grow in a variety of ways, which of the following is not a way corporations grow?

Corporations grow by creating more corporations.

When managers are engaged in problem solving, there are several steps they should go through in order to prevent themselves from providing a resolution to a problem that is unrelated to the actual issue under examination. Which of the following most correctly delineates the steps in problem-solving?

Defining the problem, generating alternatives, selecting an alternative, implementing and evaluating the solution.

What is the name given to determining what a product will look like, what options it will have, where it will be made, and other variables that arise when a company has an idea for a product and moves it into research and development?

Design planning

What is the first step for a service business to begin planning and provide the services its customers want?

Determine who the customer is and what needs the customer has

The purpose of job analysis is to systematically study positions to determine

Elements and requirements

What do business people mean when they talk about lean manufacturing?

Eliminating waste from all of the activities required to produce a good or service

There are many ways in which corporations can merge. Which of the following describes a vertical merger?

Firms that operate at different but related levels in the production and marketing of a product join together.

The coordinated effort of the three levels of managers is required to implement the goals of any company. Which of the following best represents the three basic levels of management?

First-line managers, top managers, and middle managers

The manufacturing process requires the use of a variety of technologies. Which of the following is not one of the technologies used in the manufacturing process?

Flexible production systems

Supply and demand are important in human resources planning because the planners must ___________ then determine if they are available.

Forecast future demand for human resources

Utility is the ability of a good or service to satisfy a human need. Which type of utility is the concern of operations management?

Form utility

A franchise arrangement includes a franchisor and a franchisee with the franchisor ______ to the franchisee

Granting a franchise

Partnerships operate as both an entity and as a collection of individuals. When it comes to taxes, partnerships are a (an) ___________ and ___________

collection of individuals pay no income tax

Part of the development of a product involves ____________ and ___________ as the product is improved, which generally results in an essentially new product.

refinement; extension

Total quality management (TQM) has been shown to benefit a company beyond improving a product. Which of the following is not a benefit of TQM?

Improved ability to engage in competitive pricing

Manufacturing in the United States has dropped significantly, however the cost of manufacturing has decreased. Which of the following can be attributed to the increase in manufacturing productivity in the United States?

Innovation and skilled workers

Managers must coordinate an organization's resources to achieve the organization's goals. Which of the following is not typically considered as an organization's resource?

Intellectuals

Three business students are having a discussion regarding leadership styles. One argues that autocratic leadership is best, another argues that participative leadership is best, and the last argues that entrepreneurial leadership is best. Studies have shown however that the most effective style depends on the right balance between

Interaction among employees, the work situation, and manager's personality

_______________ is the process of managing inventories in such a way as to minimize costs, including both holding costs and potential stock-out costs.

Inventory control

A business plan is essential for starting a new business because it

Is a guide for the person starting the business

Which of the following is true concerning total quality management (TQM)?

It is the coordination of efforts directed at improving customer

There are many reasons for encouraging cultural diversity within the workplace, which of the following is not a good reason to engage in hiring for cultural diversity?

It reduces payroll expenses

Are formed by two or more groups or businesses to form a business entity to achieve a specific goal or to operate for a specific period of time.

Joint ventures

A(n) ______________ of appraisal is used when a manager estimates the employee's performance level using a ranking.

Judgmental method

The _______________ refers to the degree to which resources are physically changed during the conversion process.

Magnitude of change

Human resources management (HRM) is all activities involved in acquiring,________ , and developing an organization's human resources.

Maintaining

_______ is the process of coordinating people and other resources to achieve the goals of an organization.

Management

Every business must keep records of sales, profits and losses, fixed assets, contacts, tax returns, customers, and a variety of other information that affects the growth and operability of the business. Which of the following is true about small business?

Many small firms need only a simple set of records.

__________ involves three phases to convert an idea that meets customer needs to an actual good or service.

Planning for production

A compensation system is a firm's ___________ that determine employee compensation.

Policies and strategies

Statistics show that most small business failures are related to

Poor management

There are many advantages to conducting business as a corporation. Which of the following is not an advantage of conducting business as a corporation?

Pressure to improve

Management is not a step-by-step procedure that can be carefully mapped out and calendared, it is a __________ with a feedback loop that represents flow.

Process

When a company tests products to ensure that the goods and services are produced in accordance with design specifications, it is engaged in

Quality control

Refers to the activity of trying to attract qualified applicants for a job

Recruiting

Where does research and development begin?

Research and development begins with an idea.

Partnerships have both advantages and disadvantages, which of the following was not a disadvantage or advantage addressed by the authors?

Retention of profits, but when the partnership retains profits, the partners are still taxed on this money

_______________ of materials is the sequence of workstations that the materials will follow in the production process.

Routing

Employers engage in recruiting to find qualified applicants for open positions within the firm. Recruiting can be external—seeking candidates outside the business, or internal—seeking applicants from within the firm. Which of the following is not part of internal recruitment?

Selecting the candidate with the most qualifications for the position

In 1900 only 28 percent of American workers were employed in service firms but by the beginning of 2017 this figure had risen to 88 percent. This increase in service-related business has led to America being said to have a _______________

Service economy

What is the name given to an economy in which less effort is devoted to the production of goods than other things?

Service economy

_______________ is/are characterized by being consumed immediately, being provided when and where the customer desires them, is/are labor-intensive, and has/have a high degree of customer involvement.

Services

When a human resource department is considering available talent within the company, which of the following will it use to determine successors for key personnel?

Skills inventory

_________ businesses are important to the U.S. economy because, among other things, they employ about half of all private sector employees, pay 42 percent of total U.S. private payroll, and hire 37 percent of high-tech workers (scientists, engineers, computer programmers, and others).

Small

Sears, Roebuck & Co., and General Motors rely heavily on _________ to provide merchandise, parts, supplies, and other goods and services. Companies like these buy parts and assemblies for these businesses because it is less expensive than manufacturing them in their own factories.

Small business firms

Jeffrey Inc. is a large business that produces off-road vehicle parts. In addition to this market stream, Jeffrey produces auto parts, boat parts, and parts for machinery and equipment. Inventions, LLC is a small business that focuses only on the off-road vehicle market and has created lighter weight, stronger, and more efficient parts for off-road vehicles. Its primary market is off-road racing which it believes will serve the dual purpose of showcasing its product and filling the needs of its customers. Inventions has significantly increased its market share in the off-road vehicle parts market over the years causing Jeffrey to revamp its marketing techniques and reanalyze its customer's needs. Which of the following is true about the relationship of small businesses to large businesses?

Small businesses challenge larger, established firms in many ways, causing them to become more efficient and more responsive to consumer needs.

The growth of women and minorities in franchising is attributable to which of the following activities?

Special outreach programs designed to encourage franchisee diversity

The owner of a corporation is known as the

Stockholders

Planning is an essential part of managing an enterprise. A _________ plan is developed as a guide during the planning process for major policy setting and decision making.

Strategic

Two or more businesses or individuals may join together temporarily for many business reasons including to perform a specific task. If they join together to raise a large amount of capital for that specific task, what type of organization have they created?

Syndicate

During the planning stage, managers develop a ______________ plan which is smaller in scale and developed to implement strategy and will most likely cover a one- to three-year period.

Tactical

There are many disadvantages to creating a corporation and conducting business as a corporation. One of the disadvantages is double taxation. Which of the following best describes what is meant by double taxation?

Taxation on profits when they are earned and taxation again as personal income of stockholders

Which of the following is not one of the primary tasks of human resources management?

Terminating

Small businesses enjoy several unique benefits that larger firms may not have such as

The ability to adapt to change and simplified record keeping

Corporate limited liability means corporate losses are limited to

The extent of the assets of the corporation

The major resources used in production are financial, material, information, and people. What does the magnitude of change have to do with the conversion process of these resources?

The magnitude of change of a conversion process is the degree to which the resources are physically changed.

A corporation is an artificial person created by law, with most of the legal rights of a real person. Which of the following is not a legal right held by a corporation?

The right to total privacy

One of the benefits of being a sole proprietorship is __________ which is evidenced by a sole proprietor being completely free to make decisions about the firm's operations, location, expansion plans, business hours, and other details.

Being your own boss

The Small Business Administration (SBA) defines a small business as "one which is independently owned and operated for profit and is not dominant in its field." How small must a firm be to not dominate its field?

By the SBA's definition, the factors that determine the size of a business depend on the particular industry it is in.

___________ refers to the differences among people in a workforce owing to race, ethnicity, and gender

Cultural diversity

A corporation can elect to change its tax status to an S corporation. Which of the following is an advantage of electing S corporation status?

Double taxation is eliminated as profits and losses pass directly to stockholders through the business and are reported on the owners' personal income tax returns.

The process of teaching operations and technical employees how to do their present jobs more effectively and efficiently.

Employee training

One of the first steps in hiring new employees is to prepare a job forecast to anticipate the company's employment needs. Which of the following is not part of the hiring process?

Evaluating current employees

According to the authors, franchises may become unsuccessful because the franchisor

Expanded too rapidly

Leaders within an organization can be formed in a variety of ways. Which of the following best describes the difference between formal and informal leaders?

Formal leaders have authority within an organization to influence others to work towards the organization's objectives, but informal leaders usually have no such authority.

Which of the following is not a management resource provided by the Small Business Administration?

Free assistance in closing failed small businesses

Having a business plan causes a new business owner to think through all of the aspects of business ownership, costs, capital needed for start-up, and can be used to review company goals and benchmark when they are met. Which of the following is true about the company and industry portion of the business plan?

This section of the business plan gives the background of the company, explains the legal business form it will take, provides information about the products or services to be offered, reviews potential customers, current competitors, and the business's future.

Once the production process begins, a company must engage in operations control, which includes purchasing, inventory control, scheduling, and quality control. What is the objective of purchasing?

To ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost

The goal of a diversity training program is

To improve workplace attitudes and behaviors

What is the purpose of an organization's mission statement?

To make a statement of what makes the organization different from others

Total quality management can be a boon to a business in many aspects of its operation, however it will not work if management fails in two crucial areas. Which of the following statements most closely articulates the issues that, if left unaddressed, could cause TQM to fail?

Top management must be strongly committed to TQM and must coordinate the specific elements of a TQM program so they work in harmony with each other.

__________was forged by Toyota Motor Company in Japan as a way to coordinate efforts at improving customer satisfaction, employee participation, strengthening supplier partnerships, and improving the quality of their product.

Total Quality Management

Several factors contribute to the entrepreneurial spirit in the United States, but the most important is the personal characteristics of the individuals who start businesses. Studies have shown that personal factors in small-business success include family background, willingness to accept a challenge, and

A desire to determine one's own destiny

"Houston, we have a problem," is one of the most famous sentences in history resulting from a problem that arose during the Apollo 13 mission to the moon. When business managers identify a problem, they are identifying

A discrepancy between an actual condition and a desired condition

Franchising agreements fall into three general categories, which of the following is not one of those categories?

A distributor franchises the channels of distribution to franchisees.

Which of the following is a definition of "franchise"?

A franchise is a license to operate an individually owned business as if it were part of a chain of outlets or stores.

Check My Work There are many kinds of partnerships. Which of the following best describes a general partnership?

A general partnership is a partnership in which the partners have full or shared responsibility for operating the business.

The primary difference between a limited-liability partnership (LLP) and limited partnership is

A limited partnership must have at least one general partner that has unlimited liability

Under the United States Uniform Partnership Act a partnership is defined as

A voluntary association of two or more persons to act as co-owners of a business for profit

What part of operations control involves the process of ensuring that materials and other resources are at the right place at the right time?

Scheduling

There are many disadvantages to forming a sole proprietorship, such as lack of continuity and difficulty raising capital. Which of the following is not an advantage of forming a business as a sole proprietorship?

Ability to pay all taxes

Which of the following is an accurate statement about business profitability?

According to the SBA, the most profitable companies in the United States are small firms that have been in business for more than ten years and employ fewer than 20 people.

When a research and development department is engaged in activities geared toward discovering new knowledge with some potential use it is engaged in

Applied research

Doug is a line manager at XYZ Corporation. He is very task-oriented and makes all of the decisions with little concern for employee opinion. Under his _____________ leadership style, employees are told exactly what is expected from them and given specific guidelines, rules, and regulations on how to achieve their tasks.

Autocratic

A not-for-profit corporation

Is organized for charitable purposes

A(n) _________________ manages the systems that convert resources into goods and services

Operations manager

What percentage of home-based businesses have no employees?

Over 90%

A contingency plan outlines alternate courses of action that may be taken if an organization's other plans are _____________ or become ___________

disrupted; ineffective

While the _____owns the business, the ______controls it.

franchisee franchisor

Of the four resources managed within an organization, one is considered far more important than any of the others—so much so that management of this resource is considered to have a greater impact on the organization than even the vital components of the organization. Which of the following is the resource described in this paragraph?

Human