GB 370 Gentry Final

Strategic planning includes the formation of goals, whereas operation plans define way to

Achieve goals

Hailey finds that her company is overbilling the government for services. She tells her boss, who says he will take care of it, but he does nothing. Hailey got in (something). What model of decision making does Hailey's behavior represent?

Administrative

Tactical plans

Are an organized sequence of steps designed to execute strategic plans

Inappropriate goals

Are not consistent with the organization's mission

Installment loans are paid back with equal monthly payments covering

Both principle and interest

In the _____ section of a business plan, you describe the target market and description for your product or service.

Business Description

A collection of revolving and non-revolving lines of credit by the SBA for business that need working capital on a short term or cyclical basis is

CAPLines

A disadvantage of the ____ decision-making model is that it does not use ethics.

Classical

Those stakeholders most often emphasized in mission statements are

Customers and employees

When the manager understands the available options but the probabilities associated with each option are uncertain, the manager is

Decision making under risk

Which of the following statements about the classical model of decision-making is FALSE?

Decision making will be affected by personal preferences

Using Porter's analysis, firms are likely to generate higher profits of the industry includes which of the following?

Difficult to enter

It is important to follow up and evaluate the effectiveness of a decision to

Ensure that the decision achieves the desired result

Renee made a bad decision. She stays with it, trying to convince others it was a good decision. This is an example of....

Escalation of commitment

An organization's culture has all the following characteristics except

Exactly the same throughout the entire organization

A way to test ideas in small steps is

Experimentation

A good reason to attempt to shift programmed decisions to non-programmed decisions is because of decision-fatigue.

False

An unsecure loan generally has a lower interest rate than a secure loan.

False

Competitors could not be an angel investor

False

Cost leaders must maintain their marketing or face the possible entry of more cost-effective competitors.

False

Economies of scale deals with broadening product lines

False

Even if your company isn't incorporated, you can still use the word "Inc." in your firm name.

False

If management is seeking to change vision and mission, their ability to change the organization's culture to support those new directions is impossible to achieve.

False

In high power distance countries, decision-making power is distributed equally among the groups.

False

In highly assertive countries, competition between individuals and groups is discouraged.

False

Industries with many companies that have successfully differentiated their product have more rivalry.

False

Installment loans are the most useful type of loans for small businesses.

False

Mission and vision both relate to an organization's purpose and are typically communicated orally.

False

Most of the products created in the high-technology sectors are created by large corporations.

False

One of the negatives of sole proprietorship is the tax aspect.

False

Only supervisors are affected by the principles of management.

False

Organizational design is used to match the form of the organization as closely as possible to the vision of the organization.

False

Planning starts with vision and mission, and concludes with strategizing.

False

Stakeholders are individuals, not groups.

False

Targeting teenagers is a specific enough target market for your niche.

False

The IRS does not have any restrictions on non-profit organizations.

False

The best vision statements create harmony with regard to the status quo.

False

The legal structure for your company is important, but not in relating to taxes.

False

The related diversification corporate-level strategy is where an organization manufactures one product or service and sells it in a single geographic market.

False

Typically, only big companies need assistance from accountants.

False

When a scorecard is disseminated to others in the organization, strategy becomes a tool specifically for top management.

False

World trade is declining about 7% a year for the last 10 years.

False

Circuit City went bankrupt because of a series of poor managerial decisions and down turn in the economy. In retrospect, it would seem that in the group reaching a consensus decision. As a result, many decision were made due to

GroupThink

Planning for too long or too shore a time period is

Ineffective and Inefficient

Which of the following is not a purpose of bill of lading?

It is a tax document

Working with people from different countries can be a challenge because of

Language issues and different cultural norms

This program assists borrowers who generally do not meet traditional lenders' credit cards.

MicroLoan Program

What is something you don't have to do before the trademark search of your new idea names?

Narrow to only one, maybe two, name ideas

Organizational culture is defined by all of the following EXCEPT:

Organizational mission and vision statements

What is not a benefit of a corporation?

Owners of the corporation only pay a single tax

The penetration of mobile phones is changing the way we do business because

People are are more connected and able to share more information

When choosing an accountant, you want to find out their services, fees, and

Personality

Where does strategy formulation fit within the POLC framework?

Planning

The design and development plan charts its developments within the contexts of ______, marketing, and the company itself.

Production

A firm's tangible resource includes which of the following?

Production Equipment

Structured problems align well with which type of decision making?

Programmed

The different aspects of strategy as distinguished by Mintzberg include which of the following?

Realized

Which is not something to consider when looking for your attorney?

Reasonable Fees

Which of the following is not a disadvantage of franchising?

Reduced financial risk of new business success

The industry characteristics that make it very difficult for firms to achieve strategic competitiveness and earn above- average returns includes all of the following EXCEPT:

Relatively moderate rivalry

The most common forms of business are sole proprietorship, partnership, corporation, and

S-Corporation

In the value chain, which of the following activities is deemed to add direct value to a firm?

Sales and Service

Which of the following is not a type of manager described in the Levels of Management?

Section Managers

Which option below is the fastest growing segment of small-business enterprise?

Services

Which is the legal structure with the easiest start-up process?

Sole Proprietorship

A city's policy concerning skateboarding on downtown sidewalks that provide guidance for police action would be considered what type of plan?

Standing

While there are different schools of thought about how strategy comes about, researchers generally agree the common characteristic across successful organizations is:

Strategic Focus

Industry characteristics of an attractive industry, one where firms may achieve strategic competitiveness and earn above-average returns, includes which of the following?

Suppliers and buyers with little bargaining power

Which of the following is not an element of a corporation?

Taxes are easy and tied to the individual owner's income tax

The rational model of decision making assumes all of the following EXCEPT

The decision maker will select the least expensive acceptable alternative

Many organizations develop professional planning staff with overall responsibility for the planning process. Which of the following is NOT a reason?

The need to reduce coalition formation in the organization

What is the first step in a typical MBO program?

The organization's overall objectives and strategies are formulated

Which of the following circumstances would most likely result in the use of planning task force to help develop plans?

There is a special circumstance to be addressed

Frederick Taylor is most famous for

Time studies

Human resources management alignment means

To integrate decisions about people with decisions about the result of an organization

A cost-focus is a low-cost, narrowly focused market strategy.

True

A firm that possesses valuable and rare resources will not gain a competitive advantage unless it can actually put that resource to effective use.

True

A firm's performance relative to industry peers is likely to vary according to the level to which resources, capabilities, and ultimately core competencies satisfy VRIO criteria.

True

A letter of credit is used by a bank at the request of an importer and states that the bank will pay a specified sum of money to an exporter on presentation.

True

As a manager, if you feel like you are wearing a lot of hats, this is a good thing.

True

Assessing performance through financial returns only provides information about how well the organization did prior to the assessment

True

Depending on the state you are in, the business owner will be automatically included or excluded from workers' compensation.

True

Firms pursuing a differentiation strategy are vulnerable to different competitive threats that firms pursuing a cost leader strategy.

True

In countries like Russia and Greece, family and background count for more than performance does.

True

Keeping operating control and power of your company can be more difficult with outside investors

True

Large businesses outsource many routine business operations such as packaging, delivery, and distribution to small businesses.

True

Managers do not spend all of their time managing.

True

Many firms have valuable and rare resources that they fail to exploit.

True

Self-financing is the most common form of financing in business start-ups.

True

Sometimes mission statements also include a summation of the firm's values.

True

The ability to learn faster from customers is the essential competitive advantage startups must posses.

True

There are three ways an organization can respond to their environment: combine (merge), purchase (acquisition), or form new venture partnerships.

True

Unless you expect to have many passive investors, limited partnerships would generally not be the best choice for a new business.

True

You can refer to a lawyer who does a good job for our company as a valuable asset.

True

Most of the significant decisions in contemporary organizations are made under which decision-making condition?

Uncertainty

Hierarchy as an organization is necessary for

Unity of Command

The company that relies on computer and telecommunications technologies instead of physical presence for communication between employees is a

Virtual Organization

People in societies where uncertainty avoidance is high

Want strict rules, laws, and policies

Controlling consists of the following steps EXCEPT:

Write a mission and vision statement

Which is NOT an example of debt-financing?

Your personal assets