EXAM 2 (CH 5-8)

According to the Small Business Administration, one of the most common reasons for starting a business is to _____.

Be your own boss

A survey conducted by the Wall Street Journal indicates that _____ have a more satisfying business experience.

Small business owners

SWOT analysis is a common approach used to:

assess a company's fit with its environment.

The principle that a reward will motivate only if it's valued by the employee is key to the _____ theory of motivation.

expectancy

According to Abraham Maslow, safety needs, which are placed at the very bottom of his hierarchy of needs, are the easiest to satisfy.

false

Complementary workers are part-time employees hired to supplement a company's permanent workforce.

false

In contrast to a team, members of a working group:

meet primarily to share information.

_____ oversee the activities of first-line managers.

middle managers

The _____ of Contemporary Marketing's business plan affirms what the organization is generally committed to doing.

mission statement

When you're hired for your first job, it's usually because of your _____ skills.

technical

Which of the following is not a reason that many business fail?

they focus on the customer rather than their product or service

A job analysis not only identifies the tasks, responsibilities, and skills that a job entails, but also specifies the knowledge and abilities needed to perform it.

true

Among small businesses, the service-producing sector is larger than the goods-producing sector.

true

Employers who provide for flextime set guidelines and allow employees to designate starting and quitting times.

true

Generating an idea and establishing an overall course of action for the long term is known as strategic planning.

true

Grievances are worker's complaints on contract-related matters.

true

If a business is looking to hire internally, bulletin boards are good spots for posting ads.

true

The process of comparing actual to planned performance and taking corrective action is called controlling.

true

When you start a new job, a good employer will take things slowly and refrain from swamping you with facts about the company.

true

Formal organizational communication flows through different _____.

channels of communication

When each team member is encouraged by other team members to do his or her best, then:

collective results improve.

Middle managers, who direct all of the major activities that must be performed if the company is to fulfill its mission, are responsible for an organization's general health and performance.

false

Most teams are unaccountable to those higher up in the organization.

false

Employees generally dislike working for democratic leaders and like working for autocratic leaders.

false

Generally, the more that team members derive satisfaction from being on the team, the more fun they have and the less committed they become to achieving goals.

false

In today's organizations, in which team building and information sharing are important, most experts believe that the transactional leadership style is most effective.

false

Internal communication is shared by people at all levels within a company and parties outside the company.

false

It would be inappropriate to send a formal e-mail to your manager.

false

New-product design is an integrative process, meaning that contributions from other functional areas within an organization are not necessary.

false

Recently, major organizations have begun to rely less on teams and more on individuals to improve operations.

false

Some companies prefer a customer division structure because it allows them to perform operations and customer service more efficiently.

false

Team-based projects rarely fail.

false

The idea of group cohesiveness refers to the interest level of a team to the project they are working on.

false

The medley process entails gathering information on candidates, evaluating their qualifications, and choosing the right one.

false

To educate new employees, orientation trainers at Valparaiso Communications use an organization chart in which horizontal connecting lines show the firm's chain of demand.

false

Under the employment-at-will doctrine, employers can fire employees at will.

false

When a manager delegates work to subordinates, he denies them the opportunity to learn new skills.

false

When using slides in a presentation it is important to detail all of the information you intend to cover on each slide.

false

You should include multiple messages in your email, especially if you want responses to several items.

false

You'll probably be hired for your first job based on your conceptual skills.

false

The patterns of formal communication among an organization's members are called its _____.

reporting relationships

Orientation refers to the means by which employers introduce new employees to their jobs.

True

Under the Small Business Administration's SCORE program, retired executives help business people who need advice.

True

Because an owner can delegate both authority and responsibility, entrepreneurs often have more free time than people who work for someone else.

FALSE

The _____ usually performs background checks on applicants for government jobs.

FBI

Core values describe the purpose of your organization and the reason for its existence.

False

Entrepreneurs typically stay their charted courses rather than cater to changing situations.

False

When an employee is treated unfairly on the basis of some characteristic unrelated to ability, _____.

management is guilty of discrimination

In her business plan, Shelia Pataki has included a two-page overview called the _____.

"Executive Summary"

Sometimes the only section of a business plan that readers will consider is the _____.

"Executive Summary"

In the "Marketing" section of a business plan, the _____ section describes the proposed business's typical business customer.

"Target Market"

Psychologist _____ proposed that we're motivated by five unmet needs.

Abraham Maslow

Which of the following is not a characteristic of an entrepreneur?

Avoids risk

If you're asking yourself, "What can I do to get my life back in order?" you're probably dealing with which step in the six-step approach to problem solving?

Clarifying the problem

General Motors Corp., as everyone knows, makes many brands of cars, SUVs, vans, trucks, and hybrid vehicles. Production and assembly plants are located in numerous states and countries. Each make of vehicle-such as Chevy, Pontiac, and Saturn-is produced by a separate division. Research has shown that, because car buyers' tastes vary from state to state, GM should organize its U.S. operations geographically.

False

Innovators at large businesses are the primary driving force behind the discovery of new ways of doing old things.

False

Managers who've developed a laissez-faire leadership style tend to make decisions without soliciting input from subordinates.

False

One advantage of working for someone else is the likelihood of making more money than if you were running your own business.

False

As a business owner, you're responsible for making the decisions that pertain to the profitability of your business. This decision-making freedom best reflects the _____ advantage of small business ownership.

Independence

_____ are important because they report to top-level managers while overseeing the activities of first-line managers.

Mid-level managers

_____ is the process of altering existing organizational structures to make a firm more competitive under changing conditions.

Restructuring

A small business that buys goods from other firms and sells them to consumers is known as a _____.

Retailer

If he bought a local combination miniature golf course and driving range, Bernard Blanco would find that buying an existing business is an easier option than starting from scratch.

TRUE

Which of the following statements is not true about nonverbal communication?

While nonverbal cues are important, it's what you say that always matters most.

Which of the following is an advantage of buying an existing business?

You will inherit employees.

Which of the following topics is/are included in the "Marketing" section of the business plan?

all of these (target market, promotion, pricing)

Which of the following business options makes it easiest for the owner to predict future business success?

buying an existing business

The statement "The company forecasts sales of $20,000 and profit of $2,000 for the first 12 months of operations" is best characterized as a _____.

company objective

After a manager has compared actual performance with standards, the next step is to:

determine the reasons for any deviations.

Nationwide surveys show that most companies today actively strive to develop _____ workforces.

diverse

Because she has no formal contract, Mary Murphy's workplace situation falls into which of the following legal categories?

employment-at-will

General Motors Corp., as everyone knows, makes many brands of cars, SUVs, vans, trucks, and hybrid vehicles. Production and assembly plants are located in numerous states and countries. Each make of vehicle-such as Chevy, Pontiac, and Saturn-is produced by a separate division. To reduce duplication of operations and increase efficiency in ordering parts and controlling costs, GM should reorganize into functional departments.

false

Strategic planning is often delegated to combined teams of top, middle, and first-line managers.

false

_____ are shorter-term performance targets that direct the activities of an organization.

objectives

A(n) _____ chart is a diagram or visual representation delineating the interrelationships of positions within an organization.

organization

Brothers Ronnie and Jacob are both in college; Ronnie is a senior and Jacob a sophomore. They're both majoring in business administration and want to open a small business a few years after graduation. They understand that it's important to gain more management experience and build good credit ratings. Ronnie wants more security in his work and would be satisfied working with an older partner until he "learns the ropes." More than Jacob, he'd prefer a business that's been established for a few years. Although he likes a certain degree of independence, he's willing to follow directions and take advice. Jacob, on the other hand, wants more freedom to make his own choices and to succeed or fail on his own merits. He's quite creative and likes to set his own rules. Among the disadvantages of business ownership, Jacob would probably balk at the prospect of_____.

unlimited liability

The type of communication barrier that arises when a female manager communicates with a male manager is called _____.

-not gender barrier-

A ____ is considered a blueprint for a company.

Business plan

Brothers Ronnie and Jacob are both in college; Ronnie is a senior and Jacob a sophomore. They're both majoring in business administration and want to open a small business a few years after graduation. They understand that it's important to gain more management experience and build good credit ratings. Ronnie wants more security in his work and would be satisfied working with an older partner until he "learns the ropes." More than Jacob, he'd prefer a business that's been established for a few years. Although he likes a certain degree of independence, he's willing to follow directions and take advice. Jacob, on the other hand, wants more freedom to make his own choices and to succeed or fail on his own merits. He's quite creative and likes to set his own rules. If you were a business advisor, what would you probably recommend for Ronnie?

Buy a franchise.

_____ is the exchange of information from a sender to a receiver.

Communication

Coca Cola's stated _____, which promote leadership, collaboration, integrity, accountability, passion, diversity and quality, tell employees exactly what behaviors are acceptable.

Core values

The _____ section of the business plan describes the fundamental beliefs about what is and isn't appropriate in conducting company activities.

Core values

_____ is often cited as a factor in the explosion of the space shuttle Challenger in January 1986.

Groupthink

Advice on how to survive team projects in college includes _____

Draw up a team charter.

A survey conducted by the College Board identified the following as the most frequently required business communication skill_________.

E-mail

Managers should make every attempt to eliminate the grapevine in an organization.

False

The RE in a memo stands for "reminder."

False

The bigger the team, the more satisfied members tend to be.

False

When solving a problem, generating possible solutions is the toughest part of the process.

False

If you run a _____, you may find that you must adhere to certain rules even if you disagree with some of them.

Franchise

Accounting, finance, management, marketing, and production are the _____ areas of business.

Functional

You are an airline steward for a major airline. You just learned that the airline will charge for food. In addition to serving meals, you will now have to collect payments from those buying their food onboard. What job redesign strategy has your company put into place?

Job enlargement

Meetings to discuss performance tend to make managers appear _____.

Judgmental

Which of the following factors is not important to team effectiveness?

Members have known each other for a long time

Which of the following is true regarding manager-led teams?

Team leaders are in charge of setting team goals, assigning tasks, and monitoring performance.

A small business that buys flowers from a local grower and sells them to a grocery store is an example of a wholesaler.

True

This type of team consists of geographically dispersed workers who interact electronically for the purpose of achieving a common goal.

Virtual team

Task facilitators are especially valuable when:

assignments are not clear or progress is slow.

This type of team is designed to take advantage of the special expertise of members drawn from different functional areas of the company.

cross-functional team

An organization is a group of people with complementary skills who work together to achieve a specific goal.

false

If you want to fill an opening from inside an organization, _____ would be a good recruitment method.

doing all of these things (announcing the opening in the company newsletter, posting the opening on company bulletin boards, announcing the opening at employee meetings)

As a manager who mentors and develops subordinates, providing them with challenging opportunities, Tom Jones is a transactional leader.

false

The common denominator in the successful launching of the RAZR was _____.

effective communication

Over the past several decades, the courts have undercut employers' rights under the _____ doctrine.

employment-at-will

Willowbend Tours operates a chain of 25 touring guides throughout the Appalachian Mountains in the eastern United States. Each office employs two guides, one receptionist/office assistant, and one equipment handler. One guide specializes in canoe and rafting outings while the other is a hiking specialist. Of the three job categories, guides are by far the most difficult to recruit. Next come the receptionist/office assistants, followed by the equipment handlers, who are basically unskilled workers. Turnover among guides is 20 percent, 30 percent among office staff, and 60 percent among equipment handlers. Owners find that recruiting, motivating, and keeping a quality workforce is an ongoing challenge. Willowbend equipment handlers appear to be _____ workers.

entry-level

A virtual team should be limited to five to ten members.

false

At importer/exporter Imperial Traders, a process called _____ consists of all actions that the organization takes to attract, develop, and retain quality employees.

human resource management

Which of the following is considered an employee benefit?

insurance

Hiring _____ is not only a strong motivation tool but an inexpensive way to recruit employees.

internally

Manufacturing is primarily the domain of _____ businesses.

large

About 80% of top executives say that learning to _____ is the most important skill in getting things done in the workplace.

listen

A _____ is legal only when unionized workers pose a credible threat to an employer's financial viability.

lockout

Department heads at St. Claire Machine Works, a $5 million metal fabricating company with operations in four states, are meeting to determine both the management responsibilities that they share in common and those that differ according to different functions. They all set goals, allocate resources, motivate employees, and compare results with original goals. Marketing oversees sales and advertising, while production handles purchasing, engineering, and fabrication. Finance oversees accounting, raising capital, and paying/collecting bills. Each department _____ its work.

organizes

Peggy McLaughlin runs an ice cream shop. She is determining how many employees should work next week and at what times. She is performing which management function?

organizing

Determining the reasons for the deviations in work performed is part of the _____ process.

performance follow-up

In performing the _____ function, managers set goals and determine the best way to achieve them.

planning

Gathering relevant data that will shed light on a problem depends on _____ skills.

problem-solving

Efforts made to help a team maintain or improve group cohesiveness are part of the _____ roles that team members play.

relationship-building

All of the following are common titles among middle managers except _____.

supervisor

A manager who mentors and develops subordinates, providing them with challenging opportunities and working one-on-one to help them meet their professional needs, is practicing a _____ leadership style.

transformational

An organization's formal communication network consists of all communications that flow along its official lines of authority.

true

As someone who has identified a business opportunity and assumed the risk of creating and running a business to take advantage of it, Rick Jurmain is an entrepreneur.

true

At least in part, the decline in labor-union density can be attributed to the fact that more women, who are more likely to work part-time, have entered the workforce.

true

Chris Arnholt had a vision for the RAZR phone that he called "rich minimalism."

true

Chris Arnholt made recommendations for the design of the RAZR through drawings, models, and verbal communications.

true

Chris Arnholt's drawings, specs, and recommendations for the RAZR reflected his collaboration with people from all functional areas at Motorola.

true

Dale Carnegie created a four-step process for preparing and delivering presentations.

true

Good communication skills can make decisions more convincing and certain and problem solving faster.

true

In contributing to the new-product design and development process, industrial designers such as Chris Arnholt must effectively communicate both ideas and practical specifications.

true

Miscommunications can easily occur with virtual teams and it's difficult to establish trust.

true

More than two thirds of all students report having participated in some sort of group project.

true

Recipients of e-mails often use the subject line to decide whether to open or delete a message.

true

Self-managing work teams are often allowed to schedule assignments, but they are rarely allowed to fire coworkers.

true

Some governmental and not-for-profit organizations are experiencing higher than average turnover rates. To reduce the high cost of replacing employees, they're adopting techniques used in the private sector. Because many of these organizations maintain centralized authority structures with strict policies and procedures, retaining workers-and maintaining efficiency in both costs and performance-means that changes must be made these areas. During the past few decades, courts have undercut employers' rights grounded in the employment-at-will doctrine.

true

Teams are most effective when there's a good balance between task facilitation and relationship building among members.

true

The business world is dominated by teams.

true

The process whereby Starbucks works to provide satisfying jobs, a positive work environment, and fair compensation and benefits is called human resource management (HRM). Correct Answer

true

The success of small businesses in fostering creativity has caused many large companies to respond by downsizing in order to act more like small companies.

true

The tendency to conform to group pressure in making decisions is called groupthink.

true

Upward communication usually provides managers with information that they need for making decisions.

true

When a company downsizes, it lays off workers because revenues are down.

true

When late McDonald's CEO Jim Cantalupo explained his goal to revitalize the company by adding new restaurants, his objective was to assess the company's place in its business environment.

true

If you were asked to be a team leader, all of the following leadership skills and behaviors would help you influence your team except:

willingness to let team members work on their own without asking them what they are doing and how the job is going.