quiz 2

which type of business is least likely to be bought by large companies?

businesses that sell personalized services

a company that retains decision making at the top is known as: _____.

centralized

all of the following are core responsibilities of human resource managers EXCEPT _____.

company budget forecasts

even though the united states manufactures textiles, china is able to produce them more efficiently. thus, china has a _____ in manufacturing textiles.

comparative advantage

hasim is a bank manager who believes his bank should expand nationally for greater profit and efficiency. hasim is using his _____ skills.

conceptual

as someone moves up the managerial hierarchy, which skills become relatively more important?

conceptual skills

a home furnishing store issued a recall notice about a base that easily cracks. before the notice was publicly issued, the company had assembled a crisis management team to enact a(n) _____.

contingency

ramon's job is to establish performance standards, monitor actual performance, and compare actual performance to the standards. ramon is engaged in the _____ managerial function.

controlling

an organization's system of principles, beliefs, and values is called _____.

corporate culture

maria is the middle eastern sales manager for a large company. she avoids giving pork products and wine to arab customers as gifts. maria is being sensitive to _____.

religious differences

juanita is the captain of her college basketball team. her long-term goal is to be named to the all american women's basketball team. juanita is motivated by _____.

self-actualization needs

which government agency establishes standards for small businesses?

small business administration

_____ are pioneers of innovations that benefit humanity.

social entrepreneurs

mario is part of a strategic planning team. he has identified that his company is the low-cost producer in its industry. this should be listed on a SWOT analysis as a(n) ______.

strength

jackie is a manager who spends most of her time in day-to-day decisions assigning non-managerial employees to specific jobs. jackie is considered a _____ manager.

supervisory

_____ planning involves implementing activities specified by strategic plans.

tactical

a complaint that management is violating a provision of a union contract often results in _____.

the filing of a grievance

corporations have all of the following advantages EXCEPT _____.

favorable tax treatment

anita established a corporation in nebraska, but she recently moved to colorado where she now conducts her business. what type of corporation does anita own?

foreign corporation

mcdonald's offers a contractual business arrangement in various countries around the world. mcdonald's is an example of a(n) international ______.

franchise

greg buys a mcdonald's franchise. greg is the _____ and _____ for mcdonald's.

franchisee; does not work

the two principal parties in a franchising agreement are the ______.

franchiser and franchisee

claire announces to her staff that she intends to lower costs in their department by 5 percent. which component of goal setting is claire utilizing?

goal specificity

as a company grows, what happens to its organizational structure?

it usually becomes more complex

human skills involve _____.

leading and motivating workers

nonviolent picketing is _____.

legally protected free speech

autocratic leaders _____.

make decisions on their own, often without consulting others

what makes entrepreneurs unique is their overwhelming desire to _____.

make their business grow

a written explanation of an organization's business intentions and aims is called a(n) _____.

mission statement

studies indicate the most entrepreneurs spend _____ on their new business.

more than 60 hours per week

a need produces _____, which leads to _____.

motivation; goal-directed behavior

companies such as dell computer adapt their web sites to specific countries. these companies are following a(n) _____ strategy.

multi domestic

innovation is possible in small businesses because they _____.

provide more fertile ground for new ideas

when a government unit owns and operates an organization, the arrangement is known as _____.

public ownership

_____ has a long-standing and well-known record of encouraging entrepreneurship.

3M

all of the following are examples of flexible working arrangements EXCEPT ______.

401 (k) plans

the majority of all u.s. firms employ: _____

500 or fewer employees

which of the following persons is LEAST likely to become an entrepreneur?

a calm, low-energy person

_____ newly-launched businesses fail within two years after commencing operations.

about one of every three

which of the following demographic/economic trends has increased the opportunities for entrepreneurs?

aging population

which of the following is an example of on-the-job training?

apprenticeship program

which of the following is NOT a key principle of MBO?

autocratic decision making

the united states has an international trade deficit in the sale and pitches of goods but a trade in services.

false

for its favorable legal climate, as well as the ease and simplicity of its incorporation process, _____ is the most popular state of incorporation for many members of the fortune 500.

delaware

all of the following are important characteristics of entrepreneurs EXCEPT: _____.

dependence on others

a country has a good change of selling more of its goods abroad if it _____.

devalues it's currency

once a manager has determined the problem or opportunity, the next step in the decision-making process is to _____.

develop alternates

many developing nations have lower per capita incomes than highly developed countries. this fact _____.

does not mean there is little opportunity for sales. their sheer numbers may still represent significant and growing marketings

if a foreign company offers steel in the u tied states below the company's cost of production, the company might be accused of _____.

dumping

marriott has a policy of allowing employees at its hotels to immediately respond to customer problems without having to obtain prior approvals from senior managers. this policy is best described as ______.

employee empowerment

which of the following is often a negative result of downsizing?

employee morale declines

which of the following is NOT a trend in employee benefits?

employers are paying a greater percentage of health care costs.

david is the head chef in a restaurant and has decided to increase the number of tasks performed by the kitchen staff. the added tasks do not result in increased challenge or authority. david's efforts are called job _____.

enlargement

information technology can help entrepreneurs in all of the following ways EXCEPT: _____.

ensure financial success

_____ are specific geographic areas designated for economic revitalization.

enterprise zones

the fair labor standards act ______.

established the federal minimum wage

in an organization with a strong culture, _____.

everyone knows and supports the same objectives

a weak euro is a disadvantage to european exporters.

false

large businesses must be organized as corporations.

false

when the small business administration (SBA) assists a small business in applying for a major loan, it acts as the lender's ______.

guarantor

united airlines purchase of continental airlines combines the resources and capabilities of both firms to create the worlds largest airline. the newly formed company is an example of a _____.

horizontal merger

los angeles-based PMI telecom purchases cell phones manufactured in asia and sells them in the united states. PMI is engaging in the international business activity knows as _____.

importing

financial success _____.

is part of the appeal of becoming an entrepreneur

concerning education and entrepreneurs, all of the following statements are correct EXCEPT: _____.

obtaining a college degree in entrepreneurship is essential before starting your own business

an acquisition occurs when ______.

one company purchases the property and assumes the obligations of another company

some companies are replacing classroom training with computer-based and online training programs because these programs offer all of the following advantages EXCEPT ______.

online training programs are less difficult

management is the process of achieving _____ through people and other resources.

organizational objectives

rosetta classifies and divides work into manageable units by determining the specific tasks necessary to introduce a new product. rosetta is involved in the _____ managerial function.

organizing

a small business fails in the management sense when

overall business training is lacking

all of the following constitutes a country's infrastructure EXCEPT _____.

political climate

organizational structures that are based on the goods and services a company offers are usually departmentalized by _____.

product

all of the following are major advantages of buying an existing business over starting a new business EXCEPT:

product or service is not known in the marketing.

ABC corp. has established a discount schedule for large-volume clients. this _____ will allow managers to devote more time to complex issues.

programmed decision

malcom, manager of a purchasing department, keeps a close watch on his employees to make sure they don't extend their work breaks beyond the 15-minute time allotment. malcolm would be described as a _____ manager.

theory X

gloria, a supervisor of data entry clerks, includes her subordinates in decision making when possible. she believes that most people can think of creative ways to solve work-related problems. gloria's assumption about worker behavior is based on _____.

theory Y

which of the following is a concern about performance appraisals?

they may be skewed in favor of a single manager's subjective opinion.

all of the following are contributions of small businesses EXCEPT: _____.

they provide more job security than large corporations

former CEO george buckley believes that the key to supporting entrepreneurship is the willingness to allocate ______.

time and money

lucia is a chief financial officer in a large corporation. her responsibilities include the full financial authority to make appropriations and authorize expenditures. lucia is likely to be a member of _____.

top

the country artesia exported products totaling $86 billion last year. during the year, artesia imported products valued at $43 billion. artesia has a(n) _____.

trade surplus of $43 billion

a u.s. company operating in the european union (EU) is required to adhere to european regulations, such as mandatory vacation time.

true

due to its highly educated workforce and low labor costs, india has a comparative advantage in software development.

true

in a partnership, each partner is liable for the business-related debts of the other partners.

true

the international monetary fund (IMF) was created to promote trade through financial cooperation.

true

trading with other countries may increase a company's risk.

true

_____ is a perception of marketplace needs and the methods an organization can use to satisfy them.

vision

most companies base their compensation policies on all of the following factors EXCEPT _____.

worker's previous salary