Business Exam 2

horizontal merger

A few years ago, in order to gain market share, Blackboard, a well-known learning management system software company used by many colleges and universities, joined forces with WEB CT, another learning management system software company. Both companies were in the same industry and originally competed against one another. In business, we would call the joining of these two firms a(n) _________

management and marketing assistance personal ownership nationally recognized name financial advice and assistance lower failure rate

Advantages of Franchising

limited partnership

At Sound Off!, a store that buys and sells used CDs, there is only one general partner, Sonia. She spends all her time running the business, and makes all the decisions. Sonia's mother and brother put up money for her to buy the store, but they work full time at other jobs and have no management in the running of Sound Off!, but share in some of the profits. This is an example of a ________

Which of the following is a FALSE statement?

General consensus is that larger companies are more responsive to customer needs than smaller companies.

Free-rein leader

Leader who favors autonomy and allows group members to make decisions and take action as needed

Goals

Long-term, measurable accomplishments to be achieved by the firm within a specific time frame

virtual corporation

Organization structure that temporarily networks replaceable firms that join together and leave as needed

flat organization

Organization with few layers of management between the executive level and the lowest level

tall organization

Organization with multiple layers of management between top executives and front-line employees

matrix organization

Organizational structure that combines employees from different parts of the organization; often used for special projects

management

The organization and coordination of the activities of a business in order to achieve defined objectives.

problem solving

The process of working through details of a problem to reach a solution.

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 he/she/they are liable for all debt

Unlimited liability means _______

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

When going into a partnership, you should always:

double taxation

You inherited 500 shares of GE stock from your Great Aunt Martha. As you contemplate selling the shares, your accountant informs you that the company pays a generous dividend, and advises you to start watching the firm's profits. When you are awarded the first dividend, you learn that it is considered a source of income and you will be taxed on that amount. You find this bothersome because the firm paid the dividend from after-tax profits (these dollars were already taxed). This phenomenon is called __________.

The controlling function closes the loop for managers. It answers the question "Did we succeed in what we set out to do?" Which of the following business departments has a very important role in the controlling function?

accounting department

Sole proprietorship

an unincorporated business with one owner

cooperative

business entity owned, controlled and operated by a group of users for their own benefit

partnership

business entity with two or more owners who share management and profits or losses

which of the following would not be used to describe a company with a positive corporate culture?

closer supervision of employees

benchmarking

comparing a firm's processes and performance to the world's best and/or best practices from other industries

acquisition

corporate action in which one company buys the assets and obligations of another company and assumes control

In order to build the next generation of gaming software, Idle Time Gaming, Inc., put together a ______________ structure. The structure consisted not only of employees but also suppliers, distributors, and customers, who joined the company experts to pursue the company's objectives.

cross-functional team

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

determine the work that needs to be done

large start-up costs shared profit management regulation coattail effects restrictions on selling

disadvantages of franchising

Robin Banks is a supervisor for a large, bureaucratic organization on the West Coast. According to the views of a bureaucratic organization, this means that Robin should:

do her work and let middle and upper level managers do the decision making

S corporation

entity taxed like a sole proprietorship or partnership but maintains benefits of incorporation like limited liability

Accountants at Idle Time Gaming, Inc., have a big job! Although they work with state-of-the-art systems that create financial statements every day, the interpretation and analysis of those statements can take several hours. The accounting department consists of financial, managerial, and tax accountants. One advantage of departmentalizing the accountants is ______________.

for efficiency, the employees can coordinate work within the function.

franchise

form of business in which one party gives another rights to sell its products or services and use its business format in a certain geographic area

limited partner

individual who has shared ownership in a partnership but takes no part in managing it and has limited liability

Democratic leader

leader who involves subordinates in goal setting, problem solving and decision making

Autocratic leader

leader who maintains individual control over all decisions and accepts little input from subordinates

bureacracy

management structure with many layers of management, a high degree of formalization and job specialization

the evolving business environment has made _______ a critical managerial function

managing change

Ben oversaw the work of six pharmaceutical sales managers in the southeast region of the U.S. Each sales manager managed a team of 8-10 pharmaceutical sales representatives that developed relationships with doctors, clinics, hospital pharmacies and local drug stores. Ben met regularly with four others in his company whose jobs were similar to his position. How would you describe the level of management Ben has achieved?

middle management

"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

Chain of command

official hierarchy of authority that dictates who is in charge of whom within the organization

decentralized authority

organization structure in which authority and decision-making is delegated to lower levels of the firm

centralized authority

organization structure in which decision-making authority is maintained at the top level of management

Dave facilitated a hiring committee for his advertising company. Six employees (including two managers) met together to discuss applicants and select the finalists for a creative writer position in the public relations department. Although the head of public relations would have the final nod on the candidate that would ultimately be hired, the evaluative work of the committee was very important because this group would send forward those persons they believed would be good work colleagues. In setting up this type of hiring process, the head of public relations was utilizing a(n) __________ style of leadership.

participative

staff personnel

personnel whose positions are typically advisory and/or facilitative in nature

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

pleasing customers

departmentalization

process of organizing employees into groups or units to accomplish specific organizational goals

objectives

statements of short-term, specific outcomes that are to be achieved by the firm

line organization

structure in which authority and responsibility move from top to bottom and each employee reports to only one manager

formal organization

structure of an organization that is typically depicted on organization charts

real time

the actual time during which a process or event occurs

Vision

the answer to the question, "Why does this organization exist"?

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

the current situation

transparancy

the full, accurate and timely disclosure of pertinent information to stakeholders of the firm

organizing

the grouping of people, resources and activities to accomplish the objectives of the organization

economies of scale

the increase in efficiency of production as the number of goods being produced increases

merger

the joining of two or more business entities into a single entity

hierachy

the levels of management within a business organization, from the lowest to the highest

span of control

the number of subordinates under the direct control of a manager or supervisor

planning

the process of establishing organizational goals and determining how to accomplish them

controlling

the process of evaluating and regulating ongoing organizational activities to ensure that goals are achieved

brainstorming

the process of generating creative ideas and solutions through unrestricted group discussion

leading

the process of guiding, influencing and motivating others to work toward common goals

decision making

the process of selecting one alternative from the available alternatives

restructuring

the reorganization of a company in order to achieve greater efficiency and adapt to new markets

corporate culture

the shared values, symbols, rituals, beliefs and traditions of an organization

core competencites

those functions that the organization can so as well as or better than any other organization

line personnel

those personnel in an organization who have direct job performance responsibilities

Mission statement

written declaration of purpose that affirms the highest priorities of the organization