UARK MGMT 2053 chapter assignments

Southwest Airlines is known for closely following its mission statement: Southwest Airlines is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. In keeping with this statement, the company has developed inner rites, rituals, heroes, and values including holding a Christmas party in a hanger in Dallas every year and flying in employees from throughout the United States to attend. Awards are given at the party, entertainment is provided by employees, and dinner is provided for everyone. What do these activities describe?

A communal corporate culture

Franchising agreements fall into three general categories, which of the following is not one of those categories?

A distributor franchises the channels of distribution to franchisees.

Which of the following is a definition of "franchise"?

A franchise is a license to operate an individually owned business as if it were part of a chain of outlets or stores.

There are many kinds of partnerships. Which of the following best describes a general partnership?

A general partnership is a partnership in which the partners have full or shared responsibility for operating the business

MBSC has noticed several new trends in strength and conditioning. Often, MSBC has implemented the trend before clients even have a chance to ask about it. This demonstrates which advantage of small business?

Ability to adapt to change

There are many disadvantages to forming a sole proprietorship, such as lack of continuity and difficulty raising capital. Which of the following is not an advantage of forming a business as a sole proprietorship?

Ability to pay all taxes

Which of the following is an accurate statement about business profitability?

According to the SBA, the most profitable companies in the United States are small firms that have been in business for more than ten years and employ fewer than 20 people.

Which of the following is not a way that Warby Parker differentiates itself from its competition?

Advertising on social media

Which of the following best describes the relationship between productivity and economic growth?

An increase in productivity results in economic growth because a larger number of goods and services are produced by a given labor force.

Delegation assigns work and power to other workers as required by the centralization or decentralization of authority within the organization. What is the last step in the delegation process?

Assign accountability

is the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs.

Business

The Small Business Administration (SBA) defines a small business as "one which is independently owned and operated for profit and is not dominant in its field." How small must a firm be to not dominate its field?

By the SBA's definition, the factors that determine the size of a business depend on the particular industry it is in.

Companies, the military, the government, and nonprofit organizations can operate because they have determined the levels of authority and reporting structure for their organizations. What is the name given to this line of authority?

Chain of command

What type of leader seeks input from almost all workers and makes the final decisions based on their support?

Consensus leaders

What type of leader is one who consults workers before making decisions, helps workers understand their goals, and imposes and fosters a sense of ownership and commitment, and makes the final decisions him- or herself after gathering employee input?

Consultative

Corporations can grow in a variety of ways, which of the following is not a way corporations grow?

Corporations grow by creating more corporations.

When managers are engaged in problem solving, there are several steps they should go through in order to prevent themselves from providing a resolution to a problem that is unrelated to the actual issue under examination. Which of the following most correctly delineates the steps in problem-solving?

Defining the problem, generating alternatives, selecting an alternative, implementing and evaluating the solution.

Departmentalization is the grouping together of work units or departments to create manageable units. What is the name given to departmentalization of a group of employees based on them all doing the same organizational activity?

Departmentalization by function

What is the name given to determining what a product will look like, what options it will have, where it will be made, and other variables that arise when a company has an idea for a product and moves it into research and development?

Design planning

What is the first step for a service business to begin planning and provide the services its customers want?

Determine who the customer is and what needs the customer has

A corporation can elect to change its tax status to an S corporation. Which of the following is an advantage of electing S corporation status?

Double taxation is eliminated as profits and losses pass directly to stockholders through the business and are reported on the owners' personal income tax returns.

is the study of how wealth is created and distributed.

Economics

What do business people mean when they talk about lean manufacturing?

Eliminating waste from all of the activities required to produce a good or service

Which of the following most closely explains the purpose of economics as used by experts?

Experts use economics to explain the choices we make and how these choices change as we cope with the demands of everyday life.

There are many ways in which corporations can merge. Which of the following describes a vertical merger?

Firms that operate at different but related levels in the production and marketing of a product join together.

The coordinated effort of the three levels of managers is required to implement the goals of any company. Which of the following best represents the three basic levels of management?

First-line managers, top managers, and middle managers

The manufacturing process requires the use of a variety of technologies. Which of the following is not one of the technologies used in the manufacturing process?

Flexible production systems

Utility is the ability of a good or service to satisfy a human need. Which type of utility is the concern of operations management?

Form utility

Leaders within an organization can be formed in a variety of ways. Which of the following best describes the difference between formal and informal leaders?

Formal leaders have authority within an organization to influence others to work towards the organization's objectives, but informal leaders usually have no such authority.

Which of the following is not a management resource provided by the Small Business Administration?

Free assistance in closing failed small businesses

is the total dollar value of all goods and services produced by all people within the boundaries of a country during a specified time period - usually a one-year period.

GDP

Of the four resources managed within an organization, one is considered far more important than any of the others—so much so that management of this resource is considered to have a greater impact on the organization than even the vital components of the organization. Which of the following is the resource described in this paragraph?

Human

Total quality management (TQM) has been shown to benefit a company beyond improving a product. Which of the following is not a benefit of TQM?

Improved ability to engage in competitive pricing

Which of the following is true about monopolistic competition?

In monopolistic competition there are many buyers along with a relatively large number of sellers.

An organization is a formal structure consisting of interrelated positions. What is the name given to a group created within that organization to accomplish goals that may or may not be relevant to the organization?

Informal group

Manufacturing in the United States has dropped significantly, however the cost of manufacturing has decreased. Which of the following can be attributed to the increase in manufacturing productivity in the United States?

Innovation and skilled workers

Managers must coordinate an organization's resources to achieve the organization's goals. Which of the following is not typically considered as an organization's resource?

Intellectuals

Which of the following is true concerning total quality management (TQM)?

It is the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement.

Factors that bear upon a company's organization include the external environment in which the firm operates, the nature of the decision to be made, the abilities of lower-level managers, and the firm's established practices. If a firm operates in a complex unpredictable environment with dependable lower-level managers, which of the following would be most likely true about the company?

It will be a decentralized organization.

What is the name given to the assignment of distinct tasks within an organization to different people so each person become extremely proficient at performing that single task?

Job specialization

are formed by two or more groups or businesses to form a business entity to achieve a specific goal or to operate for a specific period of time.

Joint ventures

What is the name given to a management structure in which the line managers are provided with specialists? Please select the most specific answer.

Line and staff structure

is the process of coordinating people and other resources to achieve the goals of an organization.

Management

Every business must keep records of sales, profits and losses, fixed assets, contacts, tax returns, customers, and a variety of other information that affects the growth and operability of the business. Which of the following is true about small business?

Many small firms need only a simple set of records

are affected by anything that affects supply and demand.

Market prices

Which of the following resources must a business combine in order to be successfully organized?

Materials, human, financial, and informational

Dave says that most brands of eyeglasses are owned by the same company. This illustrates which type of competition?

Monopoly

What percentage of home-based businesses have no employees?

Over 90%

There are many advantages to conducting business as a corporation. Which of the following is not an advantage of conducting business as a corporation?

Pressure to improve

Where does research and development begin?

Research and development begins with an idea.

Partnerships have both advantages and disadvantages, which of the following was not a disadvantage or advantage addressed by the authors?

Retention of profits, but when the partnership retains profits, the partners are still taxed on this money

What part of operations control involves the process of ensuring that materials and other resources are at the right place at the right time?

Scheduling

What is the name given to an economy in which less effort is devoted to the production of goods than other things?

Service economy

Which of the following is not a factor of production?

Services

Which of the following best represents the three types of business organizations today?

Services, marketing intermediaries, and manufacturing

Jeffrey Inc. is a large business that produces off-road vehicle parts. In addition to this market stream, Jeffrey produces auto parts, boat parts, and parts for machinery and equipment. Inventions, LLC is a small business that focuses only on the off-road vehicle market and has created lighter weight, stronger, and more efficient parts for off-road vehicles. Its primary market is off-road racing which it believes will serve the dual purpose of showcasing its product and filling the needs of its customers. Inventions has significantly increased its market share in the off-road vehicle parts market over the years causing Jeffrey to revamp its marketing techniques and reanalyze its customer's needs. Which of the following is true about the relationship of small businesses to large businesses?

Small businesses challenge larger, established firms in many ways, causing them to become more efficient and more responsive to consumer needs.

The growth of women and minorities in franchising is attributable to which of the following activities?

Special outreach programs designed to encourage franchisee diversity

Two or more businesses or individuals may join together temporarily for many business reasons including to perform a specific task. If they join together to raise a large amount of capital for that specific task, what type of organization have they created?

Syndicate

If a company has a major problem, what type of committee might it create to investigate the problem?

Task force

There are many disadvantages to creating a corporation and conducting business as a corporation. One of the disadvantages is double taxation. Which of the following best describes what is meant by double taxation?

Taxation on profits when they are earned and taxation again as personal income of stockholders

Which of the following best explains the use of gross domestic product (GDP) in world economic analysis?

The GDP figure facilitates comparisons between the United States and other countries because it is the standard used in international guidelines for economic accounting.

Modern businesses must compete in a challenging technological environment. Which of the following most closely explains the technological challenges facing businesses?

The current technological environment is undergoing constant change in manufacturing equipment, distribution of products, and communication with customers.

The major resources used in production are financial, material, information, and people. What does the magnitude of change have to do with the conversion process of these resources?

The magnitude of change of a conversion process is the degree to which the resources are physically changed.

A corporation is an artificial person created by law, with most of the legal rights of a real person. Which of the following is not a legal right held by a corporation?

The right to total privacy

Many parties take part in the operation of a corporation. Which of the following describes the duties of corporate officers?

They help make plans, carry out strategies, hire employees, and managed day-to-day business activities.

Having a business plan causes a new business owner to think through all of the aspects of business ownership, costs, capital needed for start-up, and can be used to review company goals and benchmark when they are met. Which of the following is true about the company and industry portion of the business plan?

This section of the business plan gives the background of the company, explains the legal business form it will take, provides information about the products or services to be offered, reviews potential customers, current competitors, and the business's future.

Once the production process begins, a company must engage in operations control, which includes purchasing, inventory control, scheduling, and quality control. What is the objective of purchasing?

To ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost

What is the purpose of an organization's mission statement?

To make a statement of what makes the organization different from others

Total quality management can be a boon to a business in many aspects of its operation, however it will not work if management fails in two crucial areas. Which of the following statements most closely articulates the issues that, if left unaddressed, could cause TQM to fail?

Top management must be strongly committed to TQM and must coordinate the specific elements of a TQM program so they work in harmony with each other.

What is meant by dual-branded franchises?

Two franchisors offer their products together

Project Repat has a corporate charter. Which of the following would NOT likely be found in a corporate charter?

What each partners' duties will be

If a company has very competent workers, a well-established set of standard operating procedures, and few expected problems, what type of management should it adopt?

Wide span of management

"Houston, we have a problem," is one of the most famous sentences in history resulting from a problem that arose during the Apollo 13 mission to the moon. When business managers identify a problem, they are identifying _________________________________

a discrepancy between an actual condition and a desired condition

The primary difference between a limited-liability partnership (LLP) and limited partnership is

a limited partnership must have at least one general partner that has unlimited liability

Mike Boyle's Strength and Conditioning can be described as a small business in _____.

a service industry

Under the United States Uniform Partnership Act a partnership is defined as

a voluntary association of two or more persons to act as co-owners of a business for profit

Suppose the owners of Mike Boyle Strength and Conditioning feel that the neighboring city of Worcester, Massachusetts is a good market for another location. If MBSC were to franchise their brand, Mike Boyle could benefit from:

a well-controlled distribution of the brand without spending the money to construct and operate the franchise.

If a city is considering building a new city office complex, it may appoint a(n) __________ to research possible locations for the offices within the city, then to present their findings to the city manager for review and presentation to the city council. The committee would be disbanded after its assignment has been completed.

ad hoc committee

Our economic system provides freedom that allows businesses to

adapt

Several factors contribute to the entrepreneurial spirit in the United States, but the most important is the personal characteristics of the individuals who start businesses. Studies have shown that personal factors in small-business success include family background, willingness to accept a challenge,

and a desire to determine one's own destiny

When a research and development department is engaged in activities geared toward discovering new knowledge with some potential use it is engaged in

applied research

Doug is a line manager at XYZ Corporation. He is very task-oriented and makes all of the decisions with little concern for employee opinion. Under his ______ leadership style, employees are told exactly what is expected from them and given specific guidelines, rules, and regulations on how to achieve their tasks.

autocratic

According to the textbook, a partnership usually has more capital available than a sole proprietorship because partners can pool their funds. This additional capital, in addition to the general partners' unlimited liability and partners working together in management skills, may encourage (blank) to extend more credit or approve larger loans to a partnership than to a sole proprietor.

banks and suppliers

One of the benefits of being a sole proprietorship is (blank) , which is evidenced by a sole proprietor being completely free to make decisions about the firm's operations, location, expansion plans, business hours, and other details.

being your own boss

Due to the forces of competition, providing products and services that meet the needs of customers is essential for a business to survive in a(n) (blank) economy.

capitalistic

Project Repat is classified as a(n) ______ because only a few people own shares of its stock.

closed corporation

Partnerships operate as both an entity and as a collection of individuals. When it comes to taxes, partnerships are a (an) (blank) and (blank)

collection of individuals and pay no income tax

When a manager plans for the future of his business and is able to see how all of the parts of the organization work together, it is said that he or she is engaging _______ to see the "big picture."

conceptual skills

refers to the traditions, heroes, informal methods of interacting, giving of recognition and other values of a firm and can be strong and used to bind members of the organization like a family, or weak so that connections remain on a professional-only level.

corporate culture

A company that groups its activities according to the defined geographic area in which they are performed—whether that is a city block, nation, or continent—has

departmentalization by location

A store with different sections such as household appliances, bed and bath, clothing, tools, furniture, jewelry, perfume, and cosmetics will often assign employees to work exclusively within one of those sections. In doing so the management is engaging in

departmentalization by product

A contingency plan outlines alternate courses of action that may be taken if an organization's other plans are _____ or become ________ .

disrupted, ineffective

Dave and the other founders of Warby Parker can be best described as __________, people who risk their time, effort, and money to start and operate a business.

entrepreneurs

According to the authors, franchises may become unsuccessful because the franchisor

expanded too rapidly

Line, line-and-staff, matrix, and network all refer to

forms of organizational structure

While the (blank) owns the business, the (blank) controls it.

franchisee, franchisor

When a manager gives an employee the power to accomplish an assigned job or task that might include ordering supplies, spend money on behalf of the organization, or hiring and firing employees, the manager has ___________ to that employee.

granted authority

A franchise arrangement includes a franchisor and a franchisee with the franchisor (blank) to the franchisee.

granting a franchise

The ______ is a designation given to an informal method of communication within an organization. By launching news of pending changes, it can be used by the organization for its own benefit.

grapevine

There are many reasons why entrepreneurs start businesses. Mike Boyle likely started MBSC because _____.

he had a passion for the industry

If Project Repat were to acquire another firm that makes or sells similar products in similar markets, it would be an example of a

horizontal merger.

Three business students are having a discussion regarding leadership styles. One argues that autocratic leadership is best, another argues that participative leadership is best, and the last argues that entrepreneurial leadership is best. Studies have shown however that the most effective style depends on the right balance between ___________________________________ .

interaction among employees, the work situation, and manager's personality

is the process of managing inventories in such a way as to minimize costs, including both holding costs and potential stock-out costs.

inventory control

A business plan is essential for starting a new business because it

is a guide for the person starting a business

A not-for-profit corporation

is organized for charitable purposes

When employers are concerned that their employees may become bored with performing the same tasks repetitively, they use _________ to systematically shift employees to other jobs to give them opportunities to perform new tasks.

job rotation

For a firm like Project Repat, one of the advantages of incorporation is

limited liability.

The ______________ refers to the degree to which resources are physically changed during the conversion process.

magnitude of change

When a business cycle enters a trough of a recession or depression, the federal government can use (blank) and (blank) to offset its effects

monetary, fiscal policies

A(n) __________ manages the systems that convert resources into goods and services.

operations manager

When the management of a business want to show the relationships and positions within the business they create a(n)

organization chart

involves three phases to convert an idea that meets customer needs to an actual good or service.

planning for production

Statistics show that most small business failures are related to

poor management

Management is not a step-by-step procedure that can be carefully mapped out and calendared, it is a _______ with a feedback loop that represents flow.

process

During the economic periods of (blank) , the economy is at its highest point and unemployment is low, in addition, total income is high and consumers are willing to buy products and services.

prosperity

When a company tests products to ensure that the goods and services are produced in accordance with design specifications, it is engaged in

quality control

Part of the development of a product involves _________ and __________ as the product is improved, which generally results in an essentially new product.

refinement, extension

of materials is the sequence of workstations that the materials will follow in the production process.

routing

In 1900 only 28 percent of American workers were employed in service firms but by the beginning of 2017 this figure had risen to 88 percent. This increase in service-related business has led to America being said to have a

service economy

is/are characterized by being consumed immediately, being provided when and where the customer desires them, is/are labor-intensive, and has/have a high degree of customer involvement.

services

businesses are important to the U.S. economy because, among other things, they employ about half of all private sector employees, pay 42 percent of total U.S. private payroll, and hire 37 percent of high-tech workers (scientists, engineers, computer programmers, and others).

small

Sears, Roebuck & Co., and General Motors rely heavily on (blank) to provide merchandise, parts, supplies, and other goods and services. Companies like these buy parts and assemblies for these businesses because it is less expensive than manufacturing them in their own factories.

small business firms

Studies show that the incidence of innovation among (blank)-business workers is significantly higher than among workers in (blank) businesses.

small, large

The number of persons reporting to one manager is referred to as the ____________ and after years of research, it has been determined that there is no perfect ratio of subordinates to managers.

span of management

The owner of a corporation is known as the

stockholders

Planning is an essential part of managing an enterprise. A(n)_______ plan is developed as a guide during the planning process for major policy setting and decision making.

strategic

During the planning stage, managers develop a ______ plan which is smaller in scale and developed to implement strategy and will most likely cover a one- to three-year period.

tactical

Warby Parker offers customers a virtual try on feature which allows them to see how they might look in a pair of glasses. This feature shows the effect of the _______ environment on business.

technology

Small businesses enjoy several unique benefits that larger firms may not have such as

the ability to adapt to change and simplified record keeping

Corporate limited liability means corporate losses are limited to

the extent of the assets of the corporation

_________________________ was forged by Toyota Motor Company in Japan as a way to coordinate efforts at improving customer satisfaction, employee participation, strengthening supplier partnerships, and improving the quality of their product.

total quality management

Mergers and acquisitions have existed for a very long time; however, the reasons behind mergers and acquisitions has changed. Historically mergers and acquisitions

were made by companies desiring to expand their business by using the processes of the acquired companies to improve the acquiring company

According to the authors, many individuals, business leaders, and politicians, (blank) that the future of the nation's economy (blank) .

worry, could lead to a bumpy road and another recession