Intro to Business (Chapters 7-10) Test #3

Which are functions of management? Select all that apply.

- Developing relationships with people - Applying organizational resources effectively - Complying with legal responsibilities of the community

What are some reasons why a person might choose to become an entrepreneur? Select all that apply.

- Innovative ideas - Dissatisfaction with current job - Ambitions to change society for the better

Which statements are core principles of scientific management? Select all that apply.

- Look at each job or task to determine the best way to perform the job. - Monitor worker performance and provide instruction and training when needed. - Hire the right workers for each job and train them to work at maximum efficiency. - Divide the work between management and labor so that management can plan and train, and workers can execute the task efficiently.

Which of the following traits are most commonly associated with entrepreneurial success? Select all that apply.

- creativity - passion - vision

Which are considered intellectual resources? Select all that apply.

- knowledge - experience

Which are considered material resources? Select all that apply.

- money - equipment

Which of the following best explains why entrepreneurs are willing to take on the risks of starting a new business?

A personal passion and a desire to lead a fulfilling life

What are the Small Business Administration's guidelines around what legal form(s) a small business can be?

A small business can be any type of legal form.

Which statement best describes Maslow's hierarchy of needs?

All human beings have basic needs that must be met before individuals can focus on higher needs.

What is the basic premise of the theory of reinforcement?

An individual's behavior depends on the consequences of that behavior.

Theory X creates a command-and-control environment, which McGregor says is ineffective because of its reliance on lower needs for motivation. He argues that because modern society mostly satisfies lower-level needs, they are no longer strong factors in employee motivation. If this is the case, what would employees in a command-and-control environment do?

Be uninterested in organizational goals

Max Weber established the _____ Approach to management.

Bureaucratic

Which best describes how a small business can support a large business?

By providing parts, services, and distribution

Entrepreneurs commonly share which of the following traits?

Creativity, persistence, and resilience

Which is an example of an employee-centered leadership style?

Factoring in the backgrounds of each of the employees when making task assignments

Which list identifies Fayol's duties of management?

Foresight, organization, command, coordinate, control

Who analyzed worker activity with a focus on the individual worker's well-being?

Frank and Lillian Gilbreth

Which concept is attributed to Mary Parker Follett?

Group principle

Which sets of factors did Herzberg hypothesize govern levels of job satisfaction?

Hygiene and motivation

What is one of the questions used to determine the rational calculation in Vroom's expectancy theory?

Is the offered incentive desirable to me?

Which is a benefit of the Gantt chart?

It identifies which tasks are dependent upon a prior task.

Who is credited with the concept of integration?

Mary Parker Follett

Employees of a call center are rewarded with lunch each week they achieve a 99 percent calls answered rate. What is this an example of?

Operant conditioning

Most companies address these two needs, identified by Maslow, with salary and benefits and rely on higher level needs to keep employees motivated day-to-day.

Physiological and safety needs

Which is an example of a task-centered leadership style?

Placing a visible tracker of task progress on the wall

What does SWOT stand for?

Strengths, weaknesses, opportunities, threats

Which statement best describes the concept of task significance?

The task provides the employee with a feeling of contribution to the greater good.

What is one reason why many small businesses fail within their first five years?

They fail to do adequate planning.

There are several reasons why individuals would want to become entrepreneurs, including which of the following?

They feel dissatisfaction with their current job or career.

Upper management of a clothing store in the mall has decided that a good way to motivate employees is to consult with them about ways to bring in more customers. A memo is sent to store managers asking them to encourage participation from all employees. One store manager has hired five new employees who just graduated from high school and are working the three summer months before leaving for college. The manager scrutinizes and directs them in every detail of their job. Each time they make a mistake they are reprimanded, told their pay may be docked, and reminded that there are always other people who will gladly take their place. This manager decides he will forward his suggestions to management but not ask his workers for suggestions. What approach is upper management using, as opposed to the store manager?

Upper management uses Theory Y; the store manager uses Theory X.

Which is also called a code of ethics?

Values statement

Which is an example of a values statement?

We will not hire workers under the age of 15.

A leader of a company makes a decision to implement a new process because she read about it and wanted to implement it. This is an example of _____.

a autocratic leader

_____ is in closest contact with workers in a company.

a first-line manager

An entrepreneur is primarily defined by his or her willingness to _____.

accept risk

David McClelland's acquired-needs theory splits the needs of employees into three categories, which are _____.

achievement, affiliation, and power

In the Hawthorne studies, Mayo discovered that workers were highly responsive to additional _____.

attention from their managers

Which type of leader makes decisions without significant employee investment in the process?

autocratic

According to the Small Business Administration (SBA), a small business must NOT _____.

be dominant in its field on a national basis

A lifestyle entrepreneur focuses primarily on _____.

building his or her primary enterprise

Taylor's Scientific Approach called for managers to stop _____ employees.

bullying

The conclusion of the Hawthorne studies was that _____.

business organizations are social systems

The _____ provides a high-level overview of the elements of your business.

company description

XYZ identified its main competing products, services, and market segments in its business plan. This is an example of a _____.

competitive analysis

You have a new idea to improve productivity. This is an example of _____ .

conceptual skill

Lee tells his managers to consider the happiness and well-being of workers because they will be with the company for a long time. They should also _____.

convey the company philosophy and culture need to be all employees, because they need to believe in the work they're doing

Which of Fayol's five duties of management is described by this statement: Make sure the diverse efforts fit together through clear communication?

coordinate

Theory Y leadership assumes _____.

creative capacity can spread throughout organizations

A leader of a company wants to improve a process. She reaches out to her employees to first offer suggestions and the conducts a poll on which improvement should be implemented. This is an example of _____.

democratic leader

Which is NOT a material resource?

employee

What is a benefit of vertical management?

everyone knows who is in charge

The most important section of a new company's business plan is the _____.

executive summary

True or false: All business owners are entrepreneurs.

false

True or false: Small businesses cannot work with large businesses without being exploited.

false

Small businesses are notable leaders in the _____ industry.

green technology

XYZ is an established business and has written a business plan to request additional funding from a local bank. Since it is not a new business, what information will its business plan include?

growth highlights

According to the Small Business Administration (SBA), a small business is one that _____.

has fewer than 500 employees

Entrepreneurs tend to be skilled at _____.

identifying new business opportunities

The leader provides mentorship to his or her followers and rewards them as they develop in _____.

individual consideration

Which is NOT one of Weber's characteristics of a bureaucracy?

informal recruitment

Humanistic management theory places a great emphasis on _____.

interpersonal relationships

Why is it important to write the executive summary of a business plan last?

it sums up all the information in the plan

Identify one of the four ways in which small businesses can and have contributed to the U.S. economy.

job creation

A serial entrepreneur is most interested in the process of _____.

launching new ventures

To make your business plan stand out, you must _____.

learn to strategize

According to the Small Business Administration (SBA), a small business is one that earns _____.

less than $7.5 million in annual average receipts

A new business may be required to acquire licenses and permits from _____.

local, state, and federal government agencies

To qualify as a small business, the business _____.

may be any legal organizational type

Who is responsible for creating single-use short-term plans?

middle management

_____ receive broad strategic plans and turn them into operational blueprints with specific objects and programs.

middle managers

Which describes what an organization needs to do now to achieve its vision?

mission statement

According to the Small Business Administration (SBA), _____ of new businesses fail within the first five years.

one-half

Details of your company's ownership should appear in the _____ section of your business plan.

organization and management

With equity theory, we _____.

perceive fairness if we see that our input-to-output ratio at work is similar to the input/output ratio of a comparable person, called a referent

A successful entrepreneur must balance risk-taking with _____.

planning

_____ is the process of setting goals and defining the actions required to achieve the goals.

planning

Which category of Maslow's hierarchy of needs is NOT included in Clayton Alderfer's ERG theory?

safety

Compared to working for an employer, an entrepreneur who starts a small business is likely to spend _____.

significantly more time working because so much depends on her

A(n) _____ plan describes the specific goals, objectives, and milestones set by an organization during a specific period for a very specific project.

single-use

During the Industrial Revolution, managers wanted new processes to ________.

take advantage of increased manufacturing speed

An entrepreneur is someone who _____.

takes a risk by innovating for profitable purposes

Olivia just learned the company payroll system. This is an example of _____ .

technical skill

Frederick W. Taylor believed _____.

that a worker should get "a fair day's pay for a fair day's work"

Henri Fayol believed _____.

that successful organizations were linked to satisfied and motivated employees

The innovation that comes from small businesses has led to _____.

the invention of new products and new ways of doing things

_____ assumes that the primary source of most employee motivation is monetary, with security as a strong second.

theory X

The nondirective interview method resulted in an increase in productivity because _____.

there was a feeling of group cohesion

In the equity theory, inputs such as _____ are the employee's contribution to the workplace.

time and level of effort, loyalty, commitment, and enthusiasm.

Starting a new business requires a great deal of _____.

time committment

Who is responsible for the long-term success of an organization?

top level managers

An example of a _____ is the chief operations officer of a company.

top-level manager

True or false: Digital Taylorism is based on maximizing efficiency by standardizing the tools and techniques for completing each task involved with a given job.

true

True or false: Small businesses are more likely than large businesses to have women and minority groups in leadership positions.

true

True or false: Small businesses have a large impact on the U.S. market.

true

True or false: Some entrepreneurs did not choose to become business owners.

true

Which defines what an organization believes in and how people in the organization are expected to behave?

values statement

A main disadvantage of _____ is that it limits information flow from the lower levels of the organization to the upper levels.

vertical management

Which is a statement of an organization's overarching aspirations of what it hopes to achieve or become?

vision statement

A business plan is like a map of how you will run your business successfully, and it should include _____.

what you will sell and to whom

The first step in starting a business is to _____.

write a business plan