Business Midterm
A Boeing factory in Everett, Washington, manufactures 787 Dreamliner jet aircraft. What type of layout is most likely used in this factory?
fixed position
As the price of jeans rises, manufacturers that make and sell jeans are likely to:
increase production and thus increase the supply.
Managers at Southwest Airlines periodically analyze their salary structure for different levels of employees, as well as their mix of health and retirement benefits. These are activities in which phase of HRM?
maintenance
Perfect competition is characterized by:
many buyers and many sellers.
Every year, manufacturing contributes approximately _____ to the US economy.
2 trillion
The United States, whose economy exhibits elements of both capitalism and socialism, has what is known as a _____ economy.
mixed
A market or industry with only one seller is referred to as:
monopoly
Gerry is in charge of making sure the raw steel brought into her company's factory is converted into high-quality cookware for sale to customers. Gerry is a(n) _____ manager.
operations
FitBit makes wearable fitness technology devices. While performing a SWOT analysis on their business, they become aware of market research stating that consumer demand for these types of devices will increase rapidly in the next few years. This would be classified as a(n) _____ for the company.
opportunity
During ___________ you were given your ID badge, computer login information, and received a copy of the employee handbook.
orientation
Trey regularly spends his entire working day ensuring that goods were produced in accordance with design specifications. Trey works in:
quality control
You work at a fast food chain and are paid $10 per hour. This form of compensation is called:
wages
Approximately _____ of all private sector employees work for small businesses.
50%
The top governing body of a corporation is known as the:
board of directors.
During the period after World War II, the United States was the most productive country in the world for approximately _____ years.
30
Capitalism stems from the theories of which eighteenth-century Scottish economist?
Adam Smith
Chevrolet assembly factories make several different models of cars along the same assembly line. During a visit to a factory, you might see a Trailblazer being assembled right behind a Cruze or Corvette. In order to have the right parts on hand for several different models, Chevrolet utilizes _________, which is a computerized system that integrates production planning with inventory control.
MRP
Kelly manages all of the employees at her firm that are in charge of accounting and financial analysis functions. She reports to the CFO. In terms of her functional specialty, Kelly is a(n) _____ manager.
financial
Many organizations today are moving toward a _____ organization in an effort to make decisions more quickly and implement them right away. Although this entails less management control, it increases efficiency and market responsiveness.
flatter
The managers at a large soft-drink company prefer that employees be grouped with others doing the same activity, as this simplifies supervision. However, they are concerned that this slows decision making and may cause employees to emphasize the needs of their own departments. They are most likely departmentalized by:
function
A large furniture manufacturer is building a new facility and has decided to purchase land next to their largest lumber supplier. This relates to which consideration when selecting a new facility location?
access to key resources
After estimating the number of people the firm will need in the next five years, you perform a job analysis of your current staff. These activities are in which phase of HRM?
acquisition
A doctor's office allows 30 minutes for each appointment. If taking a one-hour lunch break, the doctor's office has a(n) _____ of 16 patients a day if it is open from 8:00 a.m. to 5:00 p.m.
capacity
McDonald's makes many different types of sandwiches, including hamburgers, chicken sandwiches, a fish sandwich, and others. The fast food restaurant also offers many other menu items. The kitchen is organized in a way that makes the production process efficient. In addition, members of McDonald's staff are responsible for various parts of the production process: one person may cook the hamburgers while another person assembles and wraps the sandwich.
cheese
New employees at Disney World in Orlando spend their first several days learning Disney's customer service standards. They do this by meeting as a group and listening to lectures from experienced cast members and managers at Disney World. This type of training is:
classroom teaching
Augustus, sales manager for a pharmaceutical sales company, sees that his team's sales numbers for the first quarter are well below the goal. He decides to hold a mandatory training session with the entire team, as well as individual meetings with each team member, in an attempt to increase the team's sales numbers. This is an example of:
controlling
If all leading corporations in the soft-drink industry merged, forcing all smaller soft-drink companies out of business, this would:
create a monopoly
Location, product, function, and customer are common bases for a firm's:
departmentalization.
A job _______ is a list of objectives and responsibilities for a particular job.
description
Purina has a new product idea to create cat food that gives cats more energy and healthier joints. Management appoints a team to develop a plan for converting this idea into an actual product. This process is called:
design planning
When Apple decided to produce and market a watch, it had to consider a number of issues: what the watch would look like, where and how it would be produced, what options it would include, and so on. Supplying answers to these questions is part of:
design planning
As Vice President of HR, you are alarmed to review performance appraisals and see how many employees in the company don't know basic safety procedures. You immediately create a training class to address these issues. These activities are in which phase of HRM?
development
You are an operations manager who just completed performance appraisals for your team. You found that poor communication among team members was common, so you work with a human resources manager to create a training class on communication and conflict management. These activities are in which phase of HRM?
development
You are looking for a summer job and see the following in a job advertisement: "Must have two years' previous life guarding experience, experience working with elementary-age children, must be Red Cross CPR certified." This is an example of a:
job specification
Activities that increase employee satisfaction such as satisfaction surveys, employee communication programs, and exit interviews are all part of which phase of the human resources management process?
maintenance
After looking at résumés, the hiring committee you are on ranks the candidates, based on their qualifications, and then decides which ones to contact for interviews. This describes which step in the recruiting process?
screening candidates
Small businesses make up _____ of all exporters.
97.5%
Which of the following is necessary for starting a sole proprietorship?
A business license
A clothing manufacturer built a new plant in Bangladesh because textile workers there are paid a fraction of what workers in the United States would be paid. This most relates to which consideration when selecting a new facility location?
Availability and cost of labor
Jackson Inc. is a bicycle and cycling product manufacturer. Sales have been declining in the last several years, and executives have determined that the company has produced too many different products and lacks focus. As a result, executives wish to reorganize in an effort to revitalize the company. Efficiency and control will be Jackson's focus as they move to cut costs and streamline product lines. Additionally, executives feel it is important to restrict decision making to key functional managers who will communicate decisions to their subordinates. What type of organizational design would best fit Jackson Inc.?
Centralized with line structure
John just became CEO of a large company that operates mainly in the United States. It manufactures the same basic type of product as other companies in this industry. As a result, the organization's priorities are efficiency and control—because profit margins are very low in this industry. Which of the following aspects of organizational design would best fit John's company?
Centralized with line structure
While performing background checks on your top three candidates, you find that one of them has a criminal record that she did not disclose on her application. As a result, she is eliminated from consideration for the job. This describes which step in the recruiting process?
Checking references
The advantages of this type of training are that it is inexpensive, easy to implement, and provides real-world immersion for the trainee.
Classroom training
What does corporate taxation mean?
Companies must pay taxes on their earnings, and then stockholders pay taxes on their dividends.
After candidate interviews, you meet with the hiring committee to select the top two or three candidates. This describes which step in the recruiting process?
Comparing candidates
A company that produces solar panels built its factory in Alabama, where taxes are low and land is readily available at reasonable prices. This most relates to which consideration when selecting a new facility location?
Cost of construction and operation
BMW was offered significant tax incentives to open a factory in South Carolina, where real estate prices are lower than many other parts of the country. This relates to which consideration when selecting a new facility location?
Cost of construction and operation
GE Aviation is based in Cincinnati, Ohio. Cincinnati is ranked number1 as having low costs for facility leasing, access to transportation (rail and highway/interstates), and low property taxes. GE likely considered Cincinnati for which two considerations when selecting a new facility location?
Cost of construction and operation, and access to key resources
Johnson & Johnson has a Consumer group, a Professional group, a Pharmaceutical group, and an Industrial group. Johnson & Johnson has which form of departmentalization?
Customer
With regard to taxation of partnerships, which of the following statements is true?
Each partner is taxed in the same way as a sole proprietor.
Sue had a performance appraisal where she received low scores for not making progress on a market research project. Sue is disappointed because she was never informed that this project was part of her job. What performance appraisal objective did Sue's manager fail to achieve?
Evaluating performance against standards
Which of the following is HRM legislation aimed at protecting the overall rights of employees in a workplace?
Family and Medical Leave Act (1993)
When Robert Keening became president of Snow Bird Airlines, he began brainstorming with groups of employees to get their opinions on how to turn around the airline's declining sales, which he had determined were due to increased competition. These meetings with employees represent which part of the decision-making process?
Generating alternatives
An electronics manufacturing plant has many enormous pieces of machinery. The main function of the factory employees is to set up new production runs, transport the finished products, and repair any breakages that occur. Which of the following best describes the cost of this type of production setup?
High initial cost, low operating cost
Sami has a very engaging management style, but some employees are still underperforming. So she meets individually with each of them to find out what might help influence them toward meeting the team's common goals. Which function of management is Sami utilizing?
Leading and motivating
A winery owns hundreds of acres of grape vineyards. The grape vines are tended and manually picked by a large staff of workers. Which of the following best describes the cost of this type of production setup?
Low initial cost, high operating cost
Phil is the art director for a video game production company. He works with the writers, graphic artists, and programmers to bring the team's ideas to life. Although the theme of each game is set by the executive team, Phil is able to take that basic theme in just about any direction he chooses. Which of the following best describes Phil's job?
Low specialization, high empowerment
Which of the following is true middle management in organizations?
Middle managers implement strategic plans developed by top management.
Which of the following is HRM legislation aimed at eliminating workplace discrimination on the basis of race, gender, age, and/or other characteristics?
National Labor Relations Act (1935)
After deciding to start her own business, Lorelei decides that she would like to have 20 new clients by the end of the second quarter. In order to do that, Lorelei will have to call on 30 new clients each week. Lorelei is engaging in which management function?
Planning
A business plan is a tool that assists with which three basic purposes in a business?
Planning, management, and communication.
A food company is seeing 30% annual growth in the European market. As a result, they decide to build their next facility there. This reflects which consideration when selecting a new facility location?
Proximity to major customers
Which of the following is most characteristic of line structure in an organization?
Quick decision making and clear lines of communication
Which of the following are the basic legal requirements for setting up an LLC?
Register name, get business license, and submit articles of organization
Peggy is a hiring manager for Griffin Inc. After a recent job posting, she received over 100 résumés. Peggy is now reviewing the résumés to see if there are any candidates that don't meet the minimum qualifications for the job. Peggy is in which stage of the recruitment process?
Screening candidates
As a hospitality chain, Marriott hotels mainly produce a service. Which of the following is true about the production of services compared to goods?
Services often measure quality by the number of satisfied customers.
Which of the following is true about small businesses?
Small businesses can be found in many industries.
Which form of business is the easiest to start?
Sole proprietorship
Which of the following is one of the four key considerations when choosing business ownership structure?
Taxation and division of profits
Shift managers at Chipotle must train new cooks and line workers on how to properly assemble food orders. What two management skills does this most require?
Technical and interpersonal
Evergreen Corporation makes a product where quality is measured by counting the number of rejects. Based on this information, what else is likely true about their product?
They produce a good and use a mixture of labor and material in the production process.
Hightower Company makes a product that is immediately consumed or enjoyed by customers at the time of production. Based on this information, what else is likely true about their product?
They produce a service, not a good.
What is the primary disadvantage of a sole proprietorship that a corporation overcomes?
Unlimited liability
A health insurance plan is:
a form of non-monetary compensation.
After the last round of performance appraisals, managers across all departments at Target realized that their newest employees did not meet standards on customer satisfaction scores. As a result, the company created a series of training modules that specifically addressed how to provide exceptional customer service at Target. Creating the training modules is an example of using performance appraisals to accomplish the objective of:
assessing HRM practices.
A carefully constructed guide for the person starting a business is a(n):
business plan.
Nike produces athletic shoes. As producers of a good, Nike:
can measure quality by counting the number of rejects.
A company that seeks to maintain a consistent image throughout the organization and focus on efficiency likely has:
centralized authority.
Disney World wants to determine the various elements and requirements for jobs in its hotels. Its next step is to:
conduct a job analysis.
Alaska Airlines has established a goal of increasing profits by 12% next year. To ensure that the goal is reached, management monitors profits on a monthly basis. After three months, if profits have not increased by 3%, management will take corrective action to get the company on track. By doing so, management is carrying out its _____ function(s). controlling
controlling
The form of business organization that experiences double taxation is the:
corporation
The most effective form of business organization for raising capital is the:
corporation
The type of entity that exists independent of the owners is a(n):
corporation
Penicillin, airplanes, and air-conditioning were all:
created by individual inventors and small companies.
The more a company needs to be innovative and responsive, the more likely the company will:
decentralize the organization.
You and several coworkers from various departments just took a class at work that taught you new time-management and stress-management skills. This would be categorized as:
development-related training.
The ability to complete a task using the minimum amount of resources is:
efficiency.
Eric decides to purchase and operate a SUBWAY restaurant. Eric is the:
franchisee
In larger organizations, HRM is usually a responsibility shared by line managers and:
human resources managers.
When a worker has to learn only a specific, highly specialized task, that individual will learn to do it very efficiently. However, this efficiency could eventually become inhibited by job monotony and boredom. This situation could be alleviated through:
job rotation.
In a furniture factory, one worker cuts the wood according to the design; another glues the furniture together, and another stains and finishes the furniture. This is an example of:
job specialization.
In your first week at a new factory job, you shadow an experienced coworker as she shows you how to operate the machine you will be using on a day-to-day basis. You are currently undergoing _____.
job-related training
Toyota employs a method of inventory control demanding that suppliers deliver parts and raw materials to Toyota's production facility just as they are needed and in exactly the right amounts. This type of inventory control is known as:
just-in-time inventory.
The franchisee supplies:
labor and capital, and owns and operates the outlet.
A high-end restaurant is all about delighting customers. The chefs and waiters are free to make decisions that satisfy customer needs, even if it requires extra time or cost. Because the restaurant staff is highly talented and experienced, the restaurants owners take a hands-off approach to daily operations. The firm's organizational design would most likely feature:
low control, high empowerment.
If a television supplier to Walmart had access to Walmart's television sales numbers and inventory levels in each store—and could also share that information with their raw materials suppliers—the television supplier would likely experience:
lower inventory costs.
Studies about entrepreneurship reveal that:
more than 70% of Americans would prefer to be an entrepreneur.
A training method where a trainee learns by working closely under the supervision of an experienced employee is called:
on-the-job training.
Coca-Cola makes Vitamin Water. While performing a SWOT analysis, they discover that sales of healthier functional beverages, such as Vitamin Water, are expected to grow much more quickly than the sales of cola drinks in the next five years. The fast growth of the functional beverage market would be classified as a(n) _____, and the slowing growth of the cola market would be classified as a _____.
opportunity, threat
During _____ new employees are acquainted with the organization, but during _____ employees are taught how to do their job or do it better.
orientation; training
Small businesses represent _____ of all firms with employees.
over 99%
The downside of _____ decision making is that decisions take longer, and the team may react poorly if their input is not accepted.
participative
A voluntary association of two or more people acting as co-owners of a business is known as a:
partnership
The development phase of human resources management consists of two important activities: (1) training and development and (2):
performance appraisal.
Your department is hiring a new engineer for the first time since the company launched several new products. Because the requirements for engineers in your department have changed since last year, you ask the current engineers to document their responsibilities and tasks. You are currently:
performing a job analysis.
The most common source of small business financing is:
personal funds, family, and friends.
If Heartland Corporation measures quality based on the number of satisfied customers, Heartland Corporation likely:
produces toys such as stuffed animals and remote-controlled cars.
Domino's Pizza allows franchises in various countries to utilize local preferences when designing the menu for that country. Utilizing the insights of employees in these countries to develop products is an example of how a diverse workforce:
provides a marketing edge.
HP utilizes a just-in-time inventory system to manage its supply chain. The goal of this system is to:
reduce inventory costs.
The simplest form of business owned and operated by one person is called a(n):
sole proprietorship.
In the United States, over 70% of all businesses are:
sole proprietorships.
A limited liability company is:
taxed like a partnership.
Internal drive, one of the characteristics of entrepreneurs, relates to:
the desire to control one's own destiny, which serves as motivation, and the belief that this control can help them take action to overcome setbacks.
An individual's desire to create a new business is referred to as:
the entrepreneurial spirit.
In terms of business ownership, unlimited liability means:
the owner is responsible for all business debts and legal liabilities.
Small businesses are typically managed by:
the people who start and own them.
In monopolistic competition, prices are set by:
the seller.
A physical therapy clinic with eight therapists provides a service. As producers of a service, the clinic:
uses a process that is labor intensive.
Although changes have occurred over the years, _____ is historically considered to have a communist economy.
North Korea
Specific skills needed to accomplish specialized activities, such as drafting and welding, are known as _____ skills.
technical
Your company offers three different health plan options as well as vision and dental insurance. This portion of your compensation is called:
a benefit
If Franklin & Co. uses labor and materials to create a finished product, Franklin & Co. is likely:
a toy manufacturer
A company decides that it will become the market leader in the poultry business in five years, with a 40% share of the market. This statement would be classified as a(n):
goal
Phil is the owner of a small firm that manufactures customized oil-drilling equipment. The company's manufacturing facility is organized into a fabrication section, a heat treatment section, a welding section, and a quality control section. This type of plant layout is referred to as a(n) _____ layout
process
The steps for producing Crayola Crayons are always as follows: mixing the batch of paraffin wax, mixing the pigments, molding the crayons, cooling, inspection, wrapping the crayons, and boxing the crayons. Crayola likely uses a _________ layout in their factory.
product
General Motors has separate divisions for Chevrolet, GMC, and Cadillac vehicles. This is an example of departmentalization by:
product
An increase in marketing to Hispanic consumers and an expected increase in health care spending in the United States are examples of how _____ factors are impacting the business environment.
social
The nationalization of key industries in countries such as Sweden and France is indicative of a(n) _____ economy.
socialist
Apple stores have some of the highest sales per square foot of any retailer. If you were completing a SWOT analysis, this would be classified as a(n) _____ for the company.
strength
The CEO's role at General Electric requires a great deal of time spent on strategic planning for the organization. This indicates that he is a(n) _____ manager.
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