intro to business Exam 2

The size of the world market is about

7 billion

What usually happens to a business when its sole proprietor dies?

heir's have a chance to take over

Dividing tasks into smaller jobs is called

job specialization

Small businesses create about __________ percent of the new jobs in the United States.

65

Which management position is responsible for getting the right information to other managers to enable them to make better decisions?

Chief Information Officer (CIO)

The traditional technique used to departmentalize an organization is by

function

The Small Business Administration sponsors volunteers from industry, trade associations, and education who offer advice to small business owners. These volunteers are called

SCORE

A(n) __________ analysis is used to help companies evaluate their internal strengths and weaknesses, and develop an awareness of external threats and opportunities.

SWOT

Enterprise zones are specific geographic areas that

attract business investment by offering lower taxes and government support for development.

Similar to how large businesses proceed, small businesses make marketing decisions

before product is developed

__________ is a problem-solving technique that attempts to come up with as many solutions as possible in a short time without censoring the ideas.

brainstorming

A __________ is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.

business plan

In a(n) __________ organization, decision-making authority is concentrated at the top level of management.

centralized

In Weber's view of a bureaucratic organization, the organization demands

clearly established rules and guidelines that are to be precisely followed.

__________ skills involve a manager's ability to picture the organization as a whole and the relationships among its various parts.

conceptual

__________ is the management function that involves determining whether an organization is progressing toward its goals, rewarding employees for doing a good job, and taking corrective action when they are not.

controlling

A __________ is an organization that is owned and controlled by the people who use it—producers, consumers, and workers with similar needs pool their resources for mutual gain.

cooperative

__________ comprise about 20% of all businesses but account for about 81% of U.S. business receipts.

corporations

Organizing a business begins with

determining work to be done

Tactical planning is concerned with

developing detailed strategies about what is to be done, who is to do it, and how it is to be done.

Younger people today are often called __________ because they have never known life without the Internet and cell phones.

digital natives

In traditional organizations, __________ involves giving explicit instructions to workers, telling them what to do to meet the goals and objectives of the organization.

directing

Dividing the required work among a group of employees is called

division of labor

One reason why many U.S. small businesses are not involved in exporting is

dont know how to get started

Which statement is accurate about modern managers?

emphasize teamwork and coooperation

What is considered to be an advantage of functional departmentalization?

employee skills can be developed in depth

The U.S. government's Immigration Act of 1990

encouraged entrepreneurs to come to the United States through "investor visas."

Fayol's __________ principle says that workers' attitudes can create an environment of pride and loyalty within an organization.

esprit de corps

Bankers and potential investors are likely to read __________ first in a business plan.

executive summary

One reason that companies participate in mergers and acquisitions is to

expand own field or merge to new markets

An entrepreneurial team consists of

experienced professionals from different areas of business

In a partnership, a(n) __________ partner (owner) actively manages the company and has unlimited liability for claims against the firm.

general

One of the challenges facing today's managers is to

guide more educated workforce

To qualify as an S corporation, a company must

have shareholders who are individuals or estates and qualify as citizens or permanent residents of the United States.

A(n) __________ is a valuable source of information regarding techniques to reduce a firm's exposure to risk.

insurance agent

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their

integrity or sound bus idea

An organization that has contact people at the top and the chief executive officer at the bottom is known as a(n)

inverted

The Small Business Administration defines a small business as a firm that

is independently owned but not dominant in its industry.

The further up the managerial ladder a person moves, the __________ his or her original job skills become.

less important

An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a(n)

leveraged buyout

A partner (owner) who invests money in a business does not take an active role in managing the operation, and is only subject to losing the funds they invested is known as a(n) __________ partner.

limited

Which organization model follows all of Fayol's traditional management rules?

line organization

__________ is the art of utilizing organizational resources to accomplish goals at work.

management

A type of partnership called a __________ acts much like a corporation and is traded on stock exchanges, but it is taxed like a partnership with profits passing through to the owners and taxed as the owner's personal income.

master limited partenship

Opening and operating a franchise in a different country

may require the owner to adapt to social and cultural differences.

A __________ is two firms combining to form one company.

merger

Business owners who prefer to maintain their businesses at a manageable size are called

micropreneurs

General and divisional managers, plant managers, and deans and department heads at colleges are classified as

middle management

Empowering employees to better serve customers requires __________ front-line employees.

more support for

Limited liability companies are companies that are similar to S corporations but they

not restricted w eligibility requ

__________ are specific, short-term, measurable results an organization wants to achieve in order to fulfill its long-term goals.

objectives

What is involved in setting work standards and schedules needed to implement the firm's tactical objectives?

operational planning

A(n) __________ is a visual device that shows relationships among people and divides the organization's work.

organization chart

A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom.

organization chart

Henri Fayol and Max Weber are best known for their contributions to

organization theory

The widely shared values within an organization that provide unity and cooperation to achieve common goals are together known as the

organizational culture

What term describes the activity of a firm that assigns specific functions, such as accounting or legal work, to other organizations rather than performing these functions themselves?

outsourcing

The management function concerned with anticipating future trends and determining the best strategies to achieve an organization's goals and objectives is known as

planning

Two key management functions that need particular attention when starting a business are

planning and financing

A meaningful mission statement should address topics such as the organization's

self concept and philosophy

When it comes to management issues, small businesses

similar issues

Recently, many small businesses have found that __________ were more willing to lend money to smaller operations.

smaller community banks

A __________ is a form of business that is owned, and usually managed, by one person.

sole pro

The __________ is usually the easiest form of business to start and end.

sole pro

Employees who perform functions that advise and assist line personnel are known as

staff personell

__________ involves recruiting, hiring, motivating, and retaining the best people available to accomplish the company's objectives.

staffing

Staff positions in an organization

support and assist the line positions.

Although top managers most often possess __________ skills, they don't use these skills as often as a supervisory manager would.

technical

One result of taking a firm private is

the firm's stock is no longer available for purchase on the open market.

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on

the value of what the business owns, what it earns, and what makes it unique.

Which term describes a company being so open to other companies working with it that electronic information is shared as if the companies were one?

transparency

A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a

venture capitalists

A __________ merger unites firms at different stages of related businesses.

vertical

Unlimited liability means

when you own your own business, you are responsible for all the business debts.

A vision for a company is

why company exists and where want to go