ch. 8 pre reading and Ch. 5&8 quiz

Sole proprietorship

An unincorporated business with one owner.

expand

As organizations adopt empowerment, reduce the number of middle managers, and hire more talented and better educated lower-level employees the trend today is to Blank______ the span of control.

General partnership

Business entity with two or more owners who own and operate the business and assume unlimited liability.

LLC

Corporate structure in which investors have limited liability; similar to S corporations without eligibility requirements.

a

Describe a company with a positive corporate culture. a. It emphasizes service to others, especially customers. b. Close supervision of employees produces a tightly knit workforce. c. An us-versus-them culture keeps employees connected. d. Formal rules and procedures create a sense of fair play.

a

Horizontal mergers have which of the following effects? a. Reduce the number of companies in the industry. b. Increase the number of companies in an industry.

Acquisition

One company's purchase of the property and obligations of another company.

Merger

The joining of two or more business entities into a single entity.

specialization

The owner of a flower shop has three employees. Two employees are better at arranging flowers in a vase while the third is skilled at preparing the flowers to be arranged. Separating the employees by these skills is called job

Franchisee

The party that buys the right to use a business's products, brand, business format, trade secrets, and so on.

F, not limited to region

True or false: A company is benchmarking when comparing its practices, processes, and products against only the best companies in its region.

taxed separately from its owners who also enjoy limited liability

Which characteristic is typical of a C corporation?

Cooperative

owned and controlled by the people who use it for their own benefit—producers, consumers, or workers with similar needs who pool their resources for mutual gain.

line, line and staff, matrix, cross functional teams

4 organizational designs include:

b

Accountants who work at the corporate headquarters of a large department store chain use state-of-the-art systems to create financial statements every day, but 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 a. for effectiveness; specialized professionals should always be grouped together. It speeds up project completion. fb. or efficiency; the employees can coordinate work within the function. c. for effectiveness; the camaraderie that emerges promotes "group think," which is always good for the business. d. for efficiency; their isolation helps them to become focused, narrow specialists

Partnership

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

economies of scale

Cho started out with one small cupcake shop. Her business has grown so much that she now has two other shops across town. Cho has found that having three locations has greatly increased her production levels. She also notices that the price she pays for supplies (flour, butter, sugar, and packaging materials) has gone down considerably since she can now buy these items in bulk quantities. This exemplifies the principle known as a. unity of command. b.empowerment. c. bureaucracy. d. economies of scale.

core competency

Company X focuses on one attribute of its business that it performs as well or better than its competitors. This attribute is Company X's:

S corporation

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

Vertical merger

Joining of two or more companies in similar industries but in different stages or steps of the manufacturing process

Conglomerate merger

Merger between two or more companies that are involved in totally unrelated business activities.

narrow

The current trend in organizations is to ___ the span of control

Franchisor

The party that sells to another party the rights to use its business format, proprietary knowledge, products, and so on.

change

The rapidly evolving business environment requires the management of ____ in the organization to respond to it effectively

networking

Using communications technology to link organizations and allow them to work together on common objectives is called

vertical merger

A large computer hardware manufacturer purchased a company that develops computer-based software training, among other types of computer-based training. The computer manufacturer has been looking for just such a company that could open up opportunities for them to diversify and grow both businesses. This strategic decision bringing the two companies together is called a

decentralized or flat

An advantage of a _____ organization structure is that lower level employees have authority to respond more quickly to customer needs.

Limited partner

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

benchmarking

Comparing an organization's practices, processes, and products against the world's best is called

flat

During the past recession, Newton Baking Company created a __________ organization when it restructured and eliminated several middle management positions and broadened the span of control for the remaining managers. As it emerged from the recession, Newton Baking realized that technology permitted the remaining employees to be just as responsive to customer needs as the firm was prior to restructuring.

unlimited liability

Full responsibility to pay the debts or obligations of a legal entity.

Horizontal merger

Joining of two or more companies in the same industry and/or with similar product lines.

a, b

Mateo wants to start his own business. He is interested in shielding his personal assets from any business liability, but does not want to deal with the complexity of a C-corporation. Which of the following would meet Mateo's needs? a. llc b. S-CorporationS-Corporation c. General partnershipGeneral partnership d. Sole proprietorship

flexible

Remaining __ is the key to an organization's success in changing times.

decentralized

To more quickly respond to customer needs, Urban Insurance Co. is changing its organizational structure to give more authority and responsibility to field managers located across the country. These managers spend time with customers and know what the customers need right away. It appears that the company is moving toward a more __________ structure.

b,d

Today's trend is to expand the span of control because: a. organizations want more control at every level b. organizations save by reducing the number of middle managers c. empowerment increases costs and reduces profits d.the workforce is better educated at all levels

product

Vorde Auto is a car company that makes four models—a hybrid sport utility, a sports car, a four-door sedan, and a compact car. Employees at Vorde basically work on only one type of vehicle; each type has an independent product development process and is marketed separately to better serve the customers. Vorde Auto is departmentalized by

a,b,c, franchise and cooperative are special forms ??

Which of the following is one of the three, primary, forms of business ownership? a. corp b. partnership c. sole proprietorship d. franchise

flat

___ organization structures respond to customer demands faster because its lower-level employees have authority and responsibility for making decisions.

matrix

a structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority.