Exam 2 BA

Mentoring is a form of off-the-job training.

False

The first two stages in the selection process are the initial contact and the preliminary interview.

False

Unlike large corporations, sole proprietorships do not need a business plan.

False

Dividing up the tasks (division of labor) is an important part of organizing.

True

The ability to work with people and be sensitive to worker's needs are examples of human relations skills.

True

In a _____ organization, lower-level personnel are not given a chance to develop their decision-making and leadership skills.

centralized

A mechanistic organization has:

centralized decision making

The first step in performance planning and appraisal is to:

establish performance standards

Once the business plan is finished, the next step is to:

find financing for the business

A company with a wide span of control and short chain of command is a _____ organization. A company with a narrow span of control and long chain of command is a _____ organization.

flat; tall

One of the advantages of owning a small business is

flexibility

In the management assistance area, the Small Business Administration (SBA) provides all of the following EXCEPT

free college credit courses in management

An advertising agency that has separate departments for artwork, creative design, print advertising, radio advertising, television advertising, and specialty advertising is using _____ departmentalization.

functional

Entrepreneurs typically are innovators who start companies to pursue their ideas for a new product or service.

True

The informal channels of communication of an organization are often referred to as the grapevine, the rumor mill, or the intelligence network.

True

The nature of the task and the location of the workers affect the size of a manager's span of control.

True

To be a high-performance team, a team:

is accurately described by all of these

Raja Hossein monitors the quality of staplers manufactured under the brand name Bostitch. If a stapler doesn't meet the standards that are agreed upon, an employee in his department puts the stapler in a reject pile. What function is Hossein performing?

Controlling

Textron Corporation is establishing a legal division. The newly appointed head of the division is organizing, hiring people, and operating the division. This division head is performing a(n) _____ management role.

Decisional

Which of the following statements describes one the weaknesses of group decision making?

Group members may pressure others to conform to decrease the possibility of disagreement.

Which of the following is NOT a reason why small business thrives in the United States?

Guaranteed profits

Which of the following statements about HR demand forecasting is true?

HR demand forecasting is an internal labor supply forecast.

_____ is the process of hiring, developing, motivating, and evaluating people in order to achieve organizational goals.

Human resource management

Who provides the start-up financing for the majority of new small businesses?

the business owner and his or her family and friends

All of the following are characteristics of an entrepreneurial personality EXCEPT

the willingness to be a follower rather than a leader

All of the following are characteristics of an entrepreneurial personality EXCEPT:

the willingness to be a follower rather than a leader

Why do companies engage in outsourcing?

to cut costs and to satisfy labor needs

The most common use of a business plan is to persuade lenders and investors to finance the venture

true

Recruitment may involve all of the following EXCEPT:

writing job descriptions

Michael Bronner made a fortune in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. Entrepreneur Bonner would more than likely have which of the following characteristics? Ambitious Independent Self-confident Visionary All of the above

All of the above

Which of the following factors affects an employee's compensation?

All of the above

Which of the following is a key attribute of the virtual corporation?

All of the above are key attributes of the virtual corporation.

Which of the following is a characteristic of the entrepreneurial personality?

Ambitious

Are individual investors or groups of experienced investors who provide funding for start-up businesses.

Angel investors

_____ is the process of grouping jobs together so that similar or associated tasks and activities can be coordinated.

Departmentalization

Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Retailing for about $5 apiece, the bottles are sold at gift shops in Hawaii, as well as to travel agents nationwide who give them to clients. As a(n) _____, Farmer's annual income exceeds $100,000 annually.

Entrepreneur

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of healthcare information. During the development of this high-growth company, Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with ______ financing.

Equity

Medical diagnostic equipment specialist Georgiana Rutland was asked to attend a medical conference in which the attendees discussed new uses for laser technology in diagnosing certain types of cancer. Rutland exerted considerable influence over the decisions to adopt the laser technology because of her _____ power.

Expert

Which two different leadership styles use empowerment?

Laissez-faire and participative

Which of the following is NOT an advantage associated with matrix structures?

Managers can build large, permanent teams of specialists.

Kohber is a Swiss-company that makes medical equipment. It recently purchased a company, which manufactures packaging for high-value drugs. Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:

Product

The Cooke family has worked for various General Motors's divisions for over four decades. Bennett Cooke works at the Cadillac division. Rondella Cooke works at the Buick division. Their son Tyrone works at the Corvette plant, and their daughter Niome works at the Saturn plant. The Cooke family could tell you that GM is departmentalized by:

Product

Hawaiian-born Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Which of the following federal agencies should Farmer contact if he needs management assistance?

Small Business Administration

_____ is the degree to which tasks are subdivided into smaller jobs.

Specialization

Reader's Digest Association, Inc., has published Reader's Digest magazine for over 80 years, and many believe the publication is dated and can no longer attract many readers. They believe _____ plans are needed to revamp the magazine's content, editorial staff, and readership.

Strategic

A company with a narrow span of control, which tends to have many managerial levels and a long chain of command, is said to have a ______ organizational structure.

Tall

Which of the following statements about the informal organization is true?

The informal organization learns information about the formal organization through the grapevine.

A labor union is an organization that represents workers in their disputes with management over wages, hours, and working conditions

True

A study of the tasks required to do a job well is called a job analysis.

True

A falling box injured Beatrice Hix while she was helping to unload a truckload of aquariums for her employer, a pet store operator. She is receiving pay for lost work time due to the work-related injury. _____ paid her for her lost work time.

Worker's compensation

What is another name for a job fair?

a corporate open house

One of the advantages of a narrow span of control is:

a high degree of control

All of the following are human relations skills EXCEPT:

ability to program a computer

The difference between small business owners and entrepreneurs is that small business owners:

accept the status quo and take a short-term view of the future

One way to ease the burden of managing a business is to hire an outside consultant. Which of the following is an example of an outside consultant that might be useful to a small interior design company? a company to mail its brochures to building contractors within a 200 mile area an advertising company to design its ad in the local newspaper a certified public accountant to manage its money an attorney who is well-versed in small business law all of the above

all of the above

The difference between the small business owner and the entrepreneur is that the entrepreneur:

assumes the risk of the business

Which of the following is NOT one of the advantages of owning a small business?

avoidance of taxes

The number of people or subordinates that a manager effectively controls and directs is called the manager's span of:

control

Which of the following is NOT one of the main activities for a human resource manager?

coordinating marketing and production activities

Creative Good is a 35-person strategy-consulting firm that believes you must create a good employee experience to offer a good customer experience. Toward this goal, Creative Good focuses on collaborative workshops, full-staff meetings, and a company-wide emphasis on relationships and communication--from the customer to the client, to the employees of Creative Good, and to the company's leaders. This description represents the _____ of Creative Good.

corporate culture

The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).

debt; equity

Top management usually performs all of the following tasks EXCEPT:

direct workers on the assembly line

At your neighborhood Burger King, some employees take and fill orders, others prepare food, a few clean and maintain equipment, and some supervise. This process of dividing work into separate jobs and assigning tasks to workers is called:

division of labor

During a typical employee performance appraisal, the employee's supervisor evaluates the employee's work in terms of

his or her contribution to the organization

The purpose of reengineering is to:

identify and abandon the outdated rules and fundamental assumptions that guide current business operations

When John Mackey, CEO of Whole Foods Markets, hosted a fundraising event in his role as honorary chairman of the national People for the Ethical Treatment of Animals (PETA) organization, he is fulfilling his _____ managerial role.

interpersonal

A business plan:

is accurately described by all of the above

A business plan: describes in detail the idea for the new business and how it will be carried out is used to persuade lenders and investors to finance the venture may take many months to write serves as the first operating plan for a new business is accurately described by all of the above

is accurately described by all of the above

An organization's _____ is its general purpose or reason for existence.

mission

One of the primary goals of Burberry, a British retailer, is to expand its market. When the company allocated resources so that it could open two stores in Japan, it was engaged in which management function?

organizing

Marc Adler is the owner of Macquarium, a multimillion-dollar communications company that does everything from video productions to creating Web sites to public relations campaigns. Macquarium has done this sort of work for BellSouth and SnapOn Tools. Even though these companies could have prepared their videos and created their Web sites in-house, these tasks were:

outsourced

Like many other companies, Robert Mondavi Winery uses _____ to systematically compare the actual performance of each employee with his or her expected performance.

performance appraisals

Andy Pearson ran PepsiCo Inc. for nearly 15 years, driving revenues from $1 billion to $8 billion. In 1980, Fortune named him one of the 10 toughest bosses in the United States. Pearson was singled out for the relentless demands that he put on his people. As one employee put it, Pearson's talents were often "brutally abrasive." Every year, without hesitation, he fired the least productive 10% to 20% of his workforce. Pearson used a(n) _____ leadership style.

Autocratic

Mandy Ewing has been working as a veterinarian's assistant for almost a year. Her friend recently told that her employee was in violation of the _____ because she was not being paid the minimum wage.

Fair Labor Standards Act

A positive aspect of opening a small business is that it takes very little management skill because it is small.

False

Entrepreneurial activities are not influenced by changes in the external environment

False

Entrepreneurial activities are not influenced by changes in the external environment.

False

In business, an example of a protected class would be the spotted owl, whose habitat loggers and the paper industry may not disturb.

False

Job description refers to the specific location or office where a job is done.

False

A warehouse manager who is placing a reorder for maintenance supplies for delivery vehicles would be making a programmed decision.

True

A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out.

business plan

Mark Ghermizian had quit his job and was looking to start a small business so he could be his own boss. When he read that people spend up to fifteen minutes every day staring at a bathroom stall door, he decided he would find advertisers who wanted to pay to have their advertising messages on bathroom stall doors. Since he has his idea, Ghermizian's next step is to

choose a form of business organization

Human resource management is the process of _____ people in order to achieve organizational goals. hiring developing motivating evaluating doing all of the above

doing all of the above

Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The ability of the Nortel top management to create this new division and assign employees to it is a result of their having _____ power.

legitimate

Antony Johnson works in the human resources department of a small wholesale company. His boss has delegated to Johnson the job of finding a replacement for the company's shipping dock supervisor who has recently retired. Johnson will have total responsibility for filling this position. Johnson will be:

made accountable

The ______ refers to the levels of management within the organization. These levels usually conform to the shape of a pyramid.

managerial hierarchy

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. The development, maintenance, and allocation of resources to achieve its goal will require:

planning

The virtual corporation expands the traditional boundaries of an organization.

True

_____ is financing obtained from investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.

Venture capital

Which of the following is NOT a key attribute of the virtual corporation?

Vertical integration is easy with this form of organization.

The CEO of Whole Foods Markets is John Mackey. It has a set of quirky management rules that makes Whole Foods an odd but effective workplace. Every store is divided into about eight functional teams: An employee is hired provisionally to a store team. After four weeks of work, the team votes whether to hire him or her; a two-thirds yes vote is necessary to join the staff permanently. Which leadership style appears to be used by Whole Foods?

Democratic (participative)

The _____ role of a manager consists of relationships with other people as figurehead, leader, and liaison.

Interpersonal

An organization that has undergone reengineering has completely redesigned its business structures and processes in order to improve operations.

True

Inadequate early planning is often at the core of small business failures

True

One of the biggest advantages that a small business has over a large business is a greater ability to serve specialized markets.

True

A _____ is an organization of employees formed to represent workers in their disputes with management over wages, hours, and working conditions.

labor union

In the past few years, the federal government has cut back burdensome government regulations and paperwork to the point that they are almost non-existent for small business owners.

False

The time that an employee spends on a particular job determines his or her specialization of labor.

False

The two sources for debt financing are angel investors and venture capitalists.

False

Syntel is a software development company that originated in Michigan. The company once employed 6,500 workers in the U.S. In August of 2006, it reduced its U.S. workforce to 500 who are primarily in the marketing department and hired an Indian company to take charge of its production area. Syntel engaged in:

outsourcing