Chapter 5 & 6 Quiz

Since Eva Chang has decided to use her capital to purchase the rights to own and operate a McDonald's fast-food restaurant rather than start her own operation from scratch, she is probably a(n): A. Franchisee B. Trade creditor C. Franchiser D. Industrialist

A

Top managers spend most of their time performing which of the following management: A. Planning B. Directing C. Organizing D. Controlling E. Staffing

A

Which of the following is not an advantage of small-business ownership? A. Low failure rate B. Lower cost of formation C. Flexibility in decision making D. Ability to gain a solid reputation

A

Which of the following is not part of the definition of a small business? A. It employés 1,000 or more employees B. Is is independently owned C. It is not dominant in its field D. It is independently operated

A

According to the text, all of the following are skills needed by managers except: A. Analytical B. Clerical C. Technical D. Conceptual

B

Management is a process designed to achieve an organization's objectives by using its resources ____________ (accomplishing the objectives with a minimum of resources) and ___________ (having intended results) A. Effectively; efficiently B. Efficiently; effectively C. Quickly; competently D. Thoroughly; completely

B

Many financial institutions decide whether to loan a small business money based on its: A. General Idea B. Business plan C. Owners D. Employees

B

The type of planning conducted on a long-range basis by top managers is usually called: A. Incremental B. Strategic C. Tactical D. Crisis

B

When Karen allows her employees to do their work with littler interference, her leadership style is: A. Democratic B. Free-rein C. Conceptual D. Autocratic

B

Which of the following is not a reason why small businesses choose to become retailers? A. Starting a retail business is relatively easy B. It is easy to compete with large chains C. Retailing does not require a large capital investment D. The owner can capitalize on personal expertise or interests

B

A license to sell another's products or to use another's name is called a: A. Venture capital B. Franchisee C. Franchise D. Mortgage

C

Effective implementation of a major decision requires: A. Perseverance B. Directing C. Planning D. Controlling

C

Many service businesses are considered retailers because they? A. Sell small quantities of goods B. Sell from a single store location C. Sell their services to consumers D. Employ only a small number of people

C

Which of the following is an advantage of a small business? A. Highly trained staff B. Better products C. Greater flexibility to change D. More diverse employee

C

All of the following are functions of management except: A. Directing B. Staffing C. Organizing D. Advertising E. Controlling

D

All of the following steps are a part of the decision-making process except: A. Defining the situation B. Developing options C. Analyzing options D. Delegating the decision E. Implementing the decision

D

If a manager is concerned about doing the work with the least cost and taste, then her primary managerial concern is: A. Effectiveness B. Accountability C. Delegation D. Efficiency

D

The majority of all new jobs created in the United States in recent years were generated by? A. Medium businesses B. Large businesses C. Corporations D. Small businesses

D

When Betsy pointed out to her supervisor that the furniture assemblers at their manufacturing plant were using 20 percent more nails than in the preceding month, she was involved in: A. Planning B. Organizing C. Staffing D. Controlling E. Directing

D

Worries about new equipment, expanding inventory, rent increases, competition, changing market conditions, and the like may contribute to: A. Over optimism B. Decreasing costs C. A low stress level D. A high stress level

D