module 6: operations and HR

Which of the following statements about legal entities are correct? (Check all that apply.)

They may own property. They have rights and duties apart from the owners of a company.

The name under which a business is operated is called a(n) ______ name.

trade

is the process of communicating within or to the organization about how the outputs worked or were received.

Feedback

Which of the following statements about managing the risk of an employee violating government regulations are correct? (Check all that apply.)

Ignorance of the regulation in question is not an acceptable excuse. Business are financially responsible for employees who violate regulations. Being proactive is the best way to avoid violating a regulation.

Identify a true statement about employer-sponsored health care.

It is quite common among medium-sized companies.

Which of the following statements correctly describes employee fit?

It is the match between the needs, expectations, and culture of a small business with the expectations and skills of an employee.

Which of the following statements about entrepreneurial leadership are correct? (Check all that apply.)

Its three main components are innovation, operation, and inspiration. An owner should be the one thinking about the business' future. A business will suffer if the leader spends all of his or her time worrying about the present.

______ is a management philosophy of selecting and promoting people based on family ties.

Nepotism

______ inventory is the process of physically counting business assets on a set schedule.

Periodic

______ is the ratio measure of how well a firm does in using its inputs to create outputs.

Productivity

Behavioral

The person solely determines how the work is to be done.

Which of the following are ways that attorneys typically charge for their services? (Check all that apply.)

flat fee contingency fee retainer hourly fee

The ______ value is the amount of an asset for which a company will write an insurance policy.

insurable

Which of the following statements is true of the process of pledging receivables? (Check all that apply.)

In this process, a business is liable solely for the amount borrowed and accrued interest on the loan. It involves using receivables of a business as collateral for loan. It is usually less expensive than factoring.

Which of the following are key components of an entrepreneurial leader? (Check all that apply.)

Inspiration Operation Innovation

______ is a formal dispute resolution method that operates using the court system, typically with a lawyer representing each party.

Litigation

Which of the following describes the equation for productivity?

Outputs/Inputs

Financial

The person pays his or her personal expenses directly instead of having an employer pay the expenses.

The match between the needs, expectations, and culture of a small business with the expectations and skills of an individual employee is referred to as ______. Multiple choice question.

employee fit

True or false: Few small businesses provide credit directly to customers.

true

______ are assets that are expected to provide economic benefits for periods of time greater than one year.

Capital assets

Identify the guidelines that an entrepreneur should follow to help manage and deal with any propensities he or she might have for paranoia. (Check all that apply.)

Checking with a lawyer early in a start-up process Planning to be open and honest from the start of a business

Which of the following statements about Internet recruiting are correct? (Check all that apply.)

Employers can use filters to zero in on candidates that fit the job description. Recruiting on the Internet has sped up the hiring process. Candidates often respond within minutes of a business posting a position.

Identify a guideline that employers should follow to train their employees.

Employers should think of employee training as an investment.

Violation of government regulations

Failing to provide required accommodations for employees with disabilities

Identify the main types of business risk related to events involving personnel of a business. (Check all that apply.)

Loss of crucial employees Employee theft Breach of government regulations

Which of the following statements about joint ventures are correct? (Check all that apply.)

There are a number of tax benefits to participants. They are used to lower an individual company's risk. Each business keeps its own identity and continues to conduct its own business separately.

Identify an advantage of sole proprietorships.

Unique tax benefits

Employee theft

Using company resources for making personal items

The total cost of obtaining an asset, including purchase price, transportation, and installation in order to ready it for its first productive use is called the ______ cost.

acquisition

Vicarious liability against a business is possible if _____.

an employee involved in an action leading to an injury to a person was a representative of the business

Process is the

business activities necessary to convert inputs into desired outputs.

A plaintiff is a

person or other entity filing a lawsuit.

A supply chain is

the line of distribution of a product from its start as materials outside the firm to its handling by sellers into the hands of customers.

Which of the following are advantages of renting an asset when compared with buying the asset? (Check all that apply.)

A business may be able to return a rented property, thus avoiding future rent payments. The timing and amount of cash outflows is specified in the rental contract.

Which of the following statements regarding operations are correct? (Check all that apply.)

All businesses have some type of operations. Operations may include designing, fabricating, and assembling. It converts inputs into outputs.

Which of the following statements regarding feedback are correct? (Check all that apply.)

All inputs, materials, and labor must be compared to a predetermined standard. All control systems must have feedback. If there is a variation between the output and the standard action, management action must be undertaken to correct the situation.

Which of the following statements regarding coverages are correct? (Check all that apply.)

General liability, product liability, a malpractice coverages are examples of coverages that are not required, but can be purchased. Workers' compensation, unemployment insurance, and vehicle liability are examples of coverages. They are required by law to provide social protection from harm caused to employees, customers, and uninvolved individuals.

Which of the following questions is a behaviorally based interview question? (Check all that apply.)

Give an example of:... Tell me about a time when:... Describe:...

Which of the following are guidelines for training? (Check all that apply.)

Give employees opportunities to use their new skills. Make training an ongoing process.

Employers have been held harmless for their employees violating regulations when they can provide they have taken which of the following steps? (Check all that apply.)

Have a written policy that has been provided to each employee. Conducted employee and management training concerning those policies. Have quickly acted when notified of a complaint.

Which of the following is an example of a behaviorally based interview question?

How did you adapt to a difficult situation?

Which of the following statements about capital budgeting are correct? (Check all that apply.)

It answers the question, "Which of the available investment alternatives provides the greatest benefit relative to the cost of the investment?" Its goal is to improve the quality of decisions about how to best use a business' scarce resources. It works by determining the costs and benefits of each alternative investment.

Identify the true statements about a properly conducted and independent internal audit. (Check all that apply.)

It gives a structured evaluation of a business's processes and controls. It gives an objective assessment of a company's risk control structure.

Which of the following statements regarding periodic inventory are correct? (Check all that apply.)

It meets the requirements of both local and federal taxing agencies. It is the process of physically counting business assets. The time between counts is usually one year, but some businesses conducted them more often.

Which of the following statements regarding safety stock are correct? (Check all that apply.)

It provides a cushion when sales are greater than forecast or when deliveries are delayed. Most managers use a rule of thumb developed from experience to decide on safety stock levels. Having too little stock is often worse than having too much.

Which of the following is a disadvantage of offering credit to customers? (Check all that apply.)

Providing credit delays the receipt of cash. Often businesses will have to borrow to replace the missing cash. Sooner or later a customer will not pay his or her bill.

Which of the following is considered an acquisition cost for a new piece of equipment? (Check all that apply.)

Purchase price Transportation Installation

In the context of financial ratios for comparing investment alternatives, which of the following is the formula to calculate the rate of return on investment (ROI)?

ROI = (average annual profits)/(average investment)

Identify the characteristics that a person has to display to be an independent contractor for small businesses according to the Internal Revenue Service (IRS). (Check all that apply.)

Relational Financial Behavioral

______ is a type of internal control that separates the physical control of an asset from the person accounting for that asset.

Separation of duties

Which of the following are advantages of sole proprietorships? (Check all that apply.)

Simplest form to organize and operate Relative freedom of control

Which of the following statements about insurable value are correct? (Check all that apply.)

The value of land, excavation, and basements is not insurable. Not all the value of a property has insurable value. It is the amount of an asset for which a company will write an insurance policy.

A noncompete clause is part of a contract in which

a person agrees not to open a certain type of business or seek employment doing certain things in a particular area for a period of time.

The difference between the original cost of an asset and the total amount of depreciation expense that has been recognized to date is called ______ value.

book

Which of the following is an example of on-the-job training? (Check all that apply.)

coaching job rotation internships apprenticeships

A ______ is a contractual provision of an insurance policy that specifies what risks the insurance company is assuming.

coverage

A ______ is a person or other entity being sued.

defendant

A(n) is a person or other entity being sued by one or more plaintiffs.

defendant

Which of the following statements regarding just-in-time (JIT) inventory management are correct? (Check all that apply.)

it assembles product in the absolute minimum time possible. It accepts inventory as it is sold. It ships product to the customer immediately upon completion. Raw materials, work in process, and finished goods are all kept at the minimum levels possible. It is the ultimate extension of pull-through processing.

In the context of financial ratios for comparing investment alternatives, a disadvantage to using the payback period analysis is that _____.

it ignores the time value of money

In the context of financial ratios for comparing investment alternatives, the primary advantage to using the payback period analysis is _____.

its simplicity of use

A(n) ______ refers to the privileges, services, or even tangible items given to employees as part of the overall compensation and benefits package.

perk

A(n) ______ is a contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform.

subcontract

A ______ is the line of distribution of a product from its start as materials outside the firm to its handling, to its handling by sellers into the hands of customers.

supply chain

Which of the following are key elements of a consistent human resources process? (Check all that apply.)

Have transparent procedures to handle major human resources activities. Every job should have clear metrics used to measure performance. Every position should have a job description.

The business activities necessary to convert inputs into desired outputs is known as a ______.

process

______ is a contract between two or more parties in which one party agrees, for a fee, to assume the risk of another.

Insurance

property is property coming from some sort of original thought.

Intellectual

recruiting is a method of recruiting that allows businesses to search a resume database or post a job description to the web.

Internet

Which of the following is an advantage of offering credit to customers?

It reduces the cost of selling, because it is much less expensive to obtain repeat business than it is to get new customers. It increases repeat business. Increased sales result in increased profit even though giving credit raises some costs. It increases sales because people who buy on credit tend to buy more.

______ is contracting with people or companies outside your business to do work for a particular business.

Outsourcing

The amount needed for a person to meet the basic necessities of life from a single job is known as a wage.

living

Intellectual property is

property coming from some sort of original thought.

In the context of managing business risk resulting from events involving personnel, which of the following statements regarding internal control are correct?

Internal control is about setting up policies and procedures that work to make dishonesty difficult. Internal control involves separation of the duties of maintaining the security of assets from that of maintaining records of those assets.

Which of the following statements about the 501(c)(3) designation are correct? (Check all that apply.)

It refers to a section of the US Tax Code that specifies the conditions for a nonprofit organization to be certified tax-exempt. Donations to these IRS certified organizations are tax-deductible. The IRS is the agency that determines whether an organization qualifies for tax-exempt status.

_____ is giving a third party legal rights to debts owed to a business in order to provide assurance that borrowed money will be repaid.

Pledging receivables

Which of the following statements about employer-sponsored healthcare are correct? (Check all that apply.)

The insurance health care exchanges provide options for small businesses. There are tax credits for businesses with fewer than 25 employees. Businesses with under 50 employees are not required to participate in the Patient Protection and Affordable Care Act.

Which of the following statements about perks are correct? (Check all that apply.)

These are inexpensive ways of showing employees that the company cares about them. They refer to privileges, services, and tangible items given to employees. The rule of thumb is that perks should be no more than 3% of the annual personnel budget.

A design patent

lasts 14 years for a new, original, and ornamental design for an article of manufacture.

A being, human or nonhuman, such as a corporation, that is recognized as having rights and duties, such as the right to own property is known as a(n) ______.

legal entity

A ______ wage is the amount needed for a person to meet the basic necessities of life from a single job.

living

Which of the following statements about insurance are correct? (Check all that apply.)

Insurance provides a benefit by requiring a relatively small fee compared to the amount of loss that is possible. Insurance coverage is either not available or excessively expensive for common events. Not all risks are insurable.

Capital budgeting is

the process of deciding among various investment opportunities to create a specific spending plan.

Loss of key employees

A critical employee becoming disabled

Successful business partnerships should be based on which of the following? (Check all that apply.)

Complementary skills. Shared core values

Which of the following are the costs incurred with all capital assets over time? (Check all that apply.)

The acquisition cost of the asset The cost of operating the asset The cost of owning the asset

Identify a cost incurred with all capital assets over time.

The cost of disposing of the asset

A doing business as (dba) name is also called a(n) ______ name.

trade

is the process of transforming materials, labor, and energy into goods or services.

Operations

Which of the following statements about customer-related risks are correct? (Check all that apply.)

Injuries that occur at a business may or may not be the firm's fault, but are often a business' liability. Damages or injuries that occur during the use of a business' products is referred to as product liability. A business may be liable for injuries that are a result of trespassing or a criminal act such as a robbery.

Which of the following statements about on-the-job training are correct? (Check all that apply.)

It is delivered to employees while they perform their regular jobs. A plan of what should be taught should be developed before employees start the program. They in enable employees to learn without losing time.

Which of the following statements regarding the Sarbanes-Oxley Act are correct? (Check all that apply.)

Its purpose is to make the financial activities of companies more visible to the shareholders, government, and public. It was created by legislation because of the Enron scandal. Companies must preserve data and track its use.

The ______ Act is a federal law describing the steps publicly traded businesses must take to protect and provide their key financial information.

Sarbanes-Oxley

A group of formal or informal people offering advice and a sounding board to the owner or manager of a business is called a(n) .

advisory board

Litigation is a

formal dispute resolution method using the court system, typically with a lawyer representing each party.

True or false: 501(c)(3) is the U.S. Tax Code section that specifies the conditions for a nonprofit organization to be certified tax-exempt, thus it does not pay any federal income taxes.

true

Successful business and life partnerships must have shared core and complementary . (Enter one word in each blank.)

value skills

______ are money that is owed to the business by customers who purchased products or services on credit.

Accounts receivable

______ lease is a long-term rental in which ownership of the asset never passes to the person paying the lease.

Operating

Which of the following are advantages of selecting and promoting family members? (Check all that apply.)

A family member and his or her family will be loyal and supportive. A family member is known by a owner and will likely be trustworthy. A family member will be more completely involved in a business.

A guideline that an entrepreneur should follow to help manage and deal with any propensities he or she might have for paranoia is to _____.

identify the predictable surprises of business and life

A(n) ______ clause is part of a contract in which a person agrees not to open a certain type of business or seek employment doing certain things in a particular area for a period of time.

noncompete

When an employer is sued for an accident caused by an employee, it is called a(n) liability. (Please enter one word.)

vicarious

Which of the following are commonly identified sources of business risk? (Check all that apply.)

Business property theft. Employee injuries and illnesses suffered because of their employment. Natural disasters. Customers not paying debts. Loss or harm due to the use of a business' product or service.

Which of the following are strategies to minimize a business loss if the event that leads to the loss does occur? (Check all that apply.)

Creating and enforcing an appropriate code of conduct for business owners and employees Making sure that valuable assets are physically secure Preparing specific plans and arrangements to handle foreseeable events

Which of the following are risks that arise from customers and others? (Check all that apply.)

Damage or injury that is cause during the use of a business' products. Injuries suffered while on the property. The risk that a customer will not pay a business for the product or service.

Which of the following is a statistical technique that determines the amount of inventory that a business must possess to reduce total inventory cost?

Economic order quantity

Which of the following statements regarding capital assets are correct? (Check all that apply.)

Land, buildings, and machinery are examples of capital assets. The value that these assets bring to the business is often more than if they were sold. Most small businesses have few capital assets.

Which statement about entrepreneurial leadership's operation component is true?

Operation refers to the ability to manage a business as it grows.

Loss of crucial employees Employee theft Breach of government regulations

Out sourcing does not necessarily require dealing with foreign firms. Today, companies outsource to other local companies that have expertise in a specific area. Technology has made outsourcing available.

Which of the following are disadvantages of renting an asset when compared with buying the asset? (Check all that apply.)

The asset cannot be used as collateral to obtain borrowed funds. The value of the asset does not show up on a firm's balance sheet.

A job ______ defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position.

description

A ______ patent lasts 14 years for a new, original, and ornamental design for an article of manufacture.

design

Book value is the

difference between the original cost of an asset and the total amount of depreciation expense that has been recognized to date.

In the context of managing business risk resulting from events involving personnel, _____ is a set of rules and procedures that work to limit the opportunity for employee theft or malfeasance.

internal control

A ______ is an agreement between two or more entities to pool resources in order to complete a project.

joint venture

The practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer is known as _______.

just-in-time inventory

A ______ is a person or other entity filing a lawsuit.

plaintiff

A ______ contract refers to the employees' beliefs about the promises between the employee and the firm.

psychological

There are four ways attorneys typically charge: hourly fees, flat fees, contingency fees, or . (Enter one word in the blank.)

retainer

Which of the following statements regarding outsourcing are correct? (Check all that apply.)

Out sourcing does not necessarily require dealing with foreign firms. Today, companies outsource to other local companies that have expertise in a specific area. Technology has made outsourcing available.

A job description contains which of the following information? (Check all that apply.)

The job's tasks. Information about the job itself. The critical competencies that a person must have. The job's critical tasks.

Relational

The person is employed for a project and the service the person provides is not central to the operation of the business.

Which of the following statements regarding operating leases are correct? (Check all that apply.)

These are similar to renting. Ownership of the asset never passes to the lessee. At the end of the lease period the lessee either returns the asset or purchases it at the asset's fair market value.

Which of the following are strategies to minimize the likelihood and magnitude of a business loss?

The business should minimize the amount of the loss should the loss occur. The business should minimize the amount of the loss by making sure valuable assets are secure. The business should minimize the probability of the occurrence of an event that leads to the loss.

Which of the following is a key element in crafting a consistent human resource (HR) process?

The procedures to handle major HR activities should be publicly known.

Which of the following statements regarding a business's advisory board are correct? (Check all that apply.)

An advisory board is a group of people a business's owners assemble because they trust those people's judgment and goodwill toward their business. Good advisers include retired entrepreneurs, managers, or other professionals. Advisers periodically meet with a company's owners.

Which of the following statements about psychological contracts are correct? (Check all that apply.)

These beliefs are based on the perception that the business made promises, such as promotions and job training. They are based on the employees' beliefs about the promises between the employee and the firm. Employees offer their time, energy, and technical skills in exchange for the promises that a company has made to them.

Which of the following statements regarding the economic activities of local, state, and federal governments are correct?

They partner with businesses through programs that reduce the amount of risk they face.

Business is the probability that the future state of a business will be less successful than planned, resulting in the loss of value of business assets.

risk

stock is an amount of inventory carried to ensure that the business will not run out of inventory due to fluctuating sales levels.

safety

Which of the following statements is true of a subcontract?

It is a contract by which a new party consents to perform a duty that one of the original parties to a contract was legally obligated to perform.

Which of the following statements about separation of duties are correct? (Check all that apply.)

It is a core management technique to safeguard money or other valuable business assets. Business owners have more difficulty stopping two or more employees who work together to steal from the firm. Employees are the second largest source of business theft after shoplifters.

Which of the following are true of a properly conducted and independent internal audit? (Check all that apply.)

It gives an assessment of a company's overall level of business risk. It gives an analysis of the operational and financial performance of a company.

Which of the following statements are true of economic order quantity (EOQ)? (Check all that apply.)

It helps business owners know the amount of inventory to order. It is the quantity of inventory at which the final cost of inventory is minimized.

In the context of financial ratios for comparing investment alternatives, identify a true statement about rate of return on investment (ROI).

It is a measure of the connection between an initial investment and the profits that are expected to be obtained from making the investment.