Ch.1-2 Business Management
What percentage of businesses in the US are small businesses?
98%
With mass production, the cost of goods manufactured should increase for each product made
false
The parent company that provides a franchised product or service
franchisor
One who starts, manages, and owns a business
entrepreneur
With advanced technology, what happens to the cost of each unit produced? a. decreases b. increases c. remains about the same d. stagnates
a. decreases
In return for payment of franchise fees, a franchise is given a. exclusive rights to sell the franchised product b. a guaranteed profit c. complete protection from business failure d. absolute independence
a. exclusive rights to sell the franchised product
In the last two decades, the labor participation rate for women has a. increased b. decreased a little c. decreased a lot d. stayed about the same
a. increased
What type of business produces goods that other businesses use to make things? a. industrial b. manufacturing c. service d. commercial
a. industrial
When workers become empowered, what happens to the quality of their work? a. quality increases b. quality decreases c. quality remains about the same d. none of the responses
a. quality increases
About how many businesses of all kinds are there in the US according to your text?
about 25 million
Discuss the advantages and disadvantages of operating a franchise business. Give atleast three advantages and three disadvantages.
advantages: greater chance of success, only 5-10% failure rate, and provides training and advice disadvantages: may be restricted in decision making, may require franchisees to buy all items for franchisor, and cannot sell without permission
Which of the following is used as an indicator of a nations economic wealth? a. a TQM chart b. GDP c. ESOP d. none of the responses
b. GDP
Which of the following refers to a commitment of excellence? a. ESOP b. TQM c. GDP d. TMQ
b. TQM
Which statement is incorrect about flexible scheduling? a. allows employees to start work earlier than other employees b. discourages employees to adjust schedules to meet family needs c. allows employees to start work later than other employees d. helps employees avoid rush hour traffic jams
b. discourages employees to adjust schedules to meet family needs
The problem of equal opportunity a. has not been a problem for American businesses b. has been most obvious with minorities and women c. cannot be changed by individual businesses d. is likely to disappear by itself
b. has been most obvious with minorities and women
Which of the following statements is incorrect in relation to managing the environment? a. increased attention has been placed on preserving natural resources b. increased attention has been placed on conserving resources that are renewable c. increased attention has been placed on transforming discarded materials into new products d. increased attention has been placed on reducing growth of waste
b. increased attention has been placed on conserving resources that are renewable
A business changing from coal to natural gas violates environmental goals but meets conservation goals
false
A business functions successfully when it isolates itself from the people who help achieve its goals
false
A business should not have to reduce its profit in order to reduce possible physical harm to others
false
A flexible schedule permits employees to start and leave work early but does not allow employees to start and leave work late
false
A generally accepted business principle is that men should receive more pay than women for the same job
false
Business owners must be well-informed about the production and marketing activities rather than the financial activities of a business
false
Chemical products used to destroy insects and plant life have especially safeguarded waterways and land areas
false
Domestic goods refer to products made by firms in other countries
false
In measuring comparable worth, the same pay scale should be used when comparing distinctly different jobs with similar requirements
false
More managers are usually needed when workers are empowered
false
Over half of all businesses fail within the first three startup years
false
The 1945-1965 high birth rate period is referred to as the baby bust
false
The demand for both skilled and unskilled workers has been increasing
false
The demand of a product refers to the number of similar products that will be offered for sale at a particular time and at a particular price
false
The majority of workers in this country are employed by large businesses
false
The number of manufacturing firms today far exceeds the number of service firms
false
When employees learn each other's jobs and regularly switch jobs with others, productivity drops
false
Wholesalers and retailers are classified as industrial types of business
false
The quantity, or amount, produced in a given time
output
Describe some of the major social issues that face businesses today
poverty; unemployment; unequal pay; societal values; drug overuse; alcoholism; gambling
List the three activities all businesses perform
production, marketing, and finance
Groups that are affected by a firms actions
stakeholders
Name a franchise business that you would be most interested in operating and explain why you picked the particular business
Chick fil A; it is a fairly cheap franchise to buy and provides training and support to everyone, also good food
What does ESOP stand for? How does a company benefit if it has an ESOP?
Employee Stock Ownership Plan; increases productivity and motivates employee to work harder and better
Which statement is true about pollution? a. smog is not a form of pollution generated from motor vehicles b. pollution creates breathing problems c. pollutants do not kill fish or other marine life d. pollution dangers have become less and less apparent throughout the decade
b. pollution creates breathing problems
The demand for a product refers to a. the number of similar products that will be offered for sale at a particular time and at a particular price b. the number of similar products that will be bought at a given time at a given price c. the price at which a product will sell most readily d. the most competitive price of a product
b. the number of similar products that will be bought at a given time at a given price
The period that created a shortage of young workers
baby bust
What is the main reason there is a decline in the number of young workers in recent years?
baby bust and many people over 55 are returning to work
Discuss which is more important, effectiveness or efficiency
both are equally important
An important characteristic of business is that it is dynamic, or constantly changing. Give an example to illustrate this statement.
business needs to change with society; people aren't driving as much anymore and people in the car industry noticed this therefore creating Uber to accompany society's needs
The price of a product is determined primarily by a. supply only b. demand only c. both supply and demand d. competition
c. both supply and demand
The most challenging way to achieve efficiency is through a. specialization b. technology c. reorganization d. innovation
c. reorganization
All are factors in determining comparable worth, except a. requiring special skills b. requiring certain physical ability c. specifying a male or female for the position d. specifying a particular educational background
c. specifying a male or female for the position
Which of the following is a renewable resource? a. coal b. natural gas c. sunshine d. iron ore
c. sunshine
Which of the following statements is true about work teams? a. the quality of work increases while quantity decreases b. the quantity of work increases while quality decreases c. the quality of work increases while quantity also increases d. the quality of work decreases while quantity also decreases
c. the quality of work increases while quantity also increases
Paying workers equally for jobs with similar but not identical requirements
comparable worth
A video rental store is an example of a(n) a. industrial business b. manufacturing business c. wholesale production business d. commercial business
d. commercial business
Which of the following statements about the treatment of employees is NOT true? a. employees want more variety in their work b. employees want to participate in decisions affecting their work lives c. employees are participating in wellness programs d. employees want less on the job responsibility
d. employees want less on the job responsibility
The point at which birth and death rates balance is called a. census growth rate b. balancing growth rate c. leveling-off rate d. zero population growth
d. zero population growth
Cut back on goods and services provided
downsize
Occurs when an organization makes the right decisions about what products or services to offer
effectiveness
Occurs when an organization produces needed goods and services quickly at a low cost
efficiency
Workers decide how to improve the work process
empowerment
List two reasons why a large business would encourage intrapreneurship
encourages creativity and keeps employee from quitting to start their own business
The rules of conduct that set standards for what is valued as right or wrong behavior of a person or group
ethics
An invisible barrier to job advancement
glass ceiling
List two reasons why the population continues to grow despite zero population growth
improved healthcare and immigration
All organizations within a category
industry
The process of producing large quantities of identical goods
mass production
Describe the changing nature of the population and the labor force
shifts in age groups (more over age 55); more women working outside home; as population grows so does the labor force
Name three techniques that American businesses can use to improve efficiency and productivity
specialization, innovation and technology, and reorganization
Suggest two ways in which businesses can be socially responsible
sponsor little league teams and develop school partnershipd
Underdeveloped nations
third world
A business advances its own interests when it becomes involved socially
true
A business that trains gang members in job related skills is being socially responsible
true
A code of ethics usually includes such issues as bribing government officials and using company property for personal use
true
A franchise is one method of starting a business if a person has limited business experience
true
A good measure of a nations wealth is its GDP
true
A physically unfit employee is absent more than a fit employee but tends to be more productive
true
American consumers spend more money on restaurant meals than on grocery purchases
true
An example of the underground economy occurs when a parent gives a child $3 for doing a household chore
true
An unemployed 16 year old student is considered part of the labor force
true
Drug overuse leads to poor job performance and causes accidents
true
ESOPs have been shown to increase productivity
true
Ethical behavior relates to practices that are considered acceptable as well as unacceptable
true
Industrial businesses engage in producing things
true
Intrapreneurs risk neither their salaries nor their savings to launch a new business
true
Knowing what customers want is critical to achieving effectiveness rather than efficiency
true
Profit is the difference between earned income and costs
true
Social responsibility refers to the duty of a business to contribute to the well-being of society
true
The GDP of a country must grow faster than its population in order to improve its living standards
true
The failure rate for non franchised businesses is higher than the failure rate for franchised businesses
true
The most difficult way to obtain increased efficiency is through reorganization
true
The success of a business depends greatly on managerial effectiveness
true
What was the major factor which caused the rise in the labor participation rate in recent years?
women joining workforce
