BA 1301 Chapters 5-8
Michael Bronner made a fortune in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. Entrepreneur Bonner would more than likely have which of the following characteristics?
All of the above
In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an appropriate question to ask?
All of the above are appropriate questions to ask
Which of the following is a characteristic of the entrepreneurial personality?
Ambitious
Managers must act in interpersonal, informational, and decisional roles.
True
One of the basic functions of management is controlling.
True
One of the reasons small businesses continue to thrive in the United States is outsourcing.
True
Technical skills are usually utilized at the lower levels of the organization.
True
In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an inappropriate question to ask?
What are you going to do with the down payment?
Richard Sands is the CEO of Constellation Brands, the world's largest wine producer. He has the legitimate power and right to make decisions about how the division is run and to influence others to carry out these decisions. He has:
authority
Gillette wanted to make its distribution system more efficient. It decided to implant a tiny computer chip in each of its products' packages, so it could track its products and improve its inventory management. Which management function would be used to achieve the goal of greater efficiency?
Controlling
Raja Hossein monitors the quality of staplers manufactured under the brand name Bostitch. If a stapler doesn't meet the standards that are agreed upon, an employee in his department puts the stapler in a reject pile. What function is Hossein performing?
Controlling
_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.
Debt
The world's largest bank. Deutsche Bank set as its objective to make its name more recognizable in the United States. The success of its decision to sponsor a PGA golf tournament to accomplish this organizational objective will ultimately depend on which management function?
Planning
New Bedford College keeps all of its records on computers. When a student registers for a class, the computer is checked to make sure that the student has all of the prerequisites for the class. Last fall, the computer went down during the first day of registration. The registrar's office had to make a _____ decision in which it was decided that the registration period would be extended to an unprecedented five days even though this would mean that classes would have to start later, and there would be fewer class meetings.
nonprogrammed
Strategic planning is long-range, formulated by top management, and made as if the company operated in a vacuum
False
The lowest level of management is engaged in strategic planning process.
False
The three participative leadership styles are consultative, democratic, and socialistic.
False
The ability to work with people and be sensitive to worker's needs are examples of human relations skills.
True
Management involves:
all of the above
One way to ease the burden of managing a business is to hire an outside consultant. Which of the following is an example of an outside consultant that might be useful to a small interior design company?
all of the above
Middle managers usually:
carry out plans and policies of top management
Creative Good is a 35-person strategy-consulting firm that believes you must create a good employee experience to offer a good customer experience. Toward this goal, Creative Good focuses on collaborative workshops, full-staff meetings, and a company-wide emphasis on relationships and communication--from the customer to the client, to the employees of Creative Good, and to the company's leaders. This description represents the _____ of Creative Good.
corporate culture
Tawna Reed was hired for a top managerial position in Nike Corporation because she had creative ability and a good overall feel for the athletic shoe industry. Reed is said to have good _____ skills.
Conceptual
Which of the following is NOT one of the four functions of management?
Budgeting
Which of the following statements about corporate culture is true?
All of the above statements about corporate culture are true.
Luca Villanova has a major decision to make about how to increase attendance for the professional soccer team he owns. He wants to call his players and coaches together, generate alternatives, and come up with a solution by mutual agreement and vote. Villanova is an example of which style of democratic leader?
Consensual
Feedback is an important part of which function of management?
Controlling
Which two different leadership styles use empowerment?
Laissez-faire and participative
_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.
Management
Hawaiian-born Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Which of the following federal agencies should Farmer contact if he needs management assistance?
Small Business Administration
An entrepreneur is a person who opens and manages his or her own business.
True
_____ is financing obtained from investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.
Venture capital
A well-written business plan should contain:
all of the above
Among managers there are three distinctive leadership styles. They are:
autocratic, participative, and free-rein
Which of the following is NOT one of the advantages of owning a small business?
avoidance of taxes
As the CEO of Constellation Brands, the world's largest wine producer, Richard Sands would:
be at the very top of the managerial pyramid
The three types of participative leaders are:
consensual leaders, democratic leaders, and consultative leaders
After graduating from college, Joseph Tantillo decided to start a retail Web site that specializes in personalized Greek apparel. To fund his Web site, he borrowed money from his parents (who expect to be repaid with interest). In other words, he used _____ financing.
debt
Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing.
debt
Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Retailing for about $5 apiece, the bottles are sold at gift shops in Hawaii, as well as to travel agents nationwide who give them to clients. As a(n) _____, Farmer's annual income exceeds $100,000 annually.
entrepreneur
The person who takes the risk of starting and managing a business to make a profit is called a(n):
entrepreneur
Once the business plan is finished, the next step is to:
find financing for the business
A company with a wide span of control and short chain of command is a _____ organization. A company with a narrow span of control and long chain of command is a _____ organization.
flat; tall
One of the advantages of owning a small business is:
flexibility
At IBM, the MDX group is at a crossroad about how to market a new software package. Judy Ramsby, the head of the group, has told the group of managers that "it is up to the group. As long as they don't violate company policy, the decisions are up to them." Judy Ramsby is practicing a(n) _____ leadership style.
free rein
Which of the following is NOT a reason why small business thrives in the United States?
guaranteed profits
The Small Business Administration (SBA):
helps people start and manage small businesses
One way to ease the burden of managing a business is to:
hire outside consultants
Which of the following is NOT a current trend in management and leadership?
increasing dependence on autocratic leadership
A business plan:
is accurately described by all of the above
Venture capital:
is financing obtained from investment firms that specialize in financing small, high-growth companies
Antony Johnson works in the human resources department of a small wholesale company. His boss has delegated to Johnson the job of finding a replacement for the company's shipping dock supervisor who has recently retired. Johnson will have total responsibility for filling this position. Johnson will be:
made accountable
Plant manager Peter Kwillen receives the master budget from divisional headquarters and breaks it down for the three shift managers. He coordinates with other plant managers and manages lower-level managers. Kwillen is a(n) _____ manager.
middle
According to the _____ of the New Mexico Nurses Association, the organization "is committed to advocating for all licensed nurses, promoting lifelong learning, and improving health care for all people."
mission statement
The Austrian-company Wienerberger is the world's largest brickmaker. It had to use the management function of _____ when it integrated the employees and manufacturing facilities that it gained from a merger with a brickmaking company in Great Britain.
organizing
An entrepreneur is a person who _____ a business.
owns and operates
Angel investors:
provide funding for start-up businesses
Which of the following is a reason why small business thrives in the United States?
rapidly changing technology
Pele Arnaz is a plant foreman for a generator manufacturer. He spends his day carrying out operational plans for the ongoing daily activities of the plant. Arnaz is a _____ manager.
supervisory
According to the Sports Business Journal, Levy Restaurants is the leading purveyor of premium food at major sports venues. It has chefs that specialize in the preparation of various foods working at different sports venues. For the Super Bowl, Levy flew in more than two dozen of its chefs from venues to prepare food to feed the Super Bowl crowd. The chefs had the necessary _____ skills.
technical
Decentralization is usually desirable in a company when:
the firm is operating in a dynamic environment
Dividing up the tasks (division of labor) is an important part of organizing.
True
_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.
Angel investors
A good manager is never faced with unforeseen problems.
False
A positive aspect of opening a small business is that it takes very little management skill because it is small.
False
An organization's _____ is its general purpose or reason for existence.
Mission
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. Its primary challenge will be to convince the 2,000 employees it inherited from the government-owned facility to work more efficiently. Manila Water sought to boost employee morale by linking pay to performance. In other words, management has used its _____ power to improve employee productivity.
Reward
The first step in starting your own business is:
a self-assessment
All of the following are human relations skills EXCEPT:
ability to program a computer
Which of the following factors has NO effect on the size of a manager's span of control?
age of the subordinates
_____ financing is a form of financing consisting of funds raised through the sale of stock in a business.
equity
A common use of business plans is to:
persuade lenders and investors to finance the venture
Victorinox is the name of the company that manufactures Swiss army knives. As a result of new regulations governing what passengers could carry with them on airplane trips, the company has lost 30 percent of its business. In other companies, this might have led to business failure, but because Victorinox had _____ plans, it was able to continue to operate profitably.
Contingency
The CEO of Whole Foods Markets is John Mackey. It has a set of quirky management rules that makes Whole Foods an odd but effective workplace. Every store is divided into about eight functional teams: An employee is hired provisionally to a store team. After four weeks of work, the team votes whether to hire him or her; a two-thirds yes vote is necessary to join the staff permanently. Which leadership style appears to be used by Whole Foods?
Democratic (participative)
Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times music is played and shared among peers. Jain used _____ financing.
Equity
Businesses close down for many reasons. Which of the following is NOT a typical reason for a business failure?
Expenses were lower than the owner expected.
Due to their size large businesses tend to have greater flexibility than small businesses.
False
Entrepreneurial activities are not influenced by changes in the external environment.
False
Established small businesses are defined as companies that have been in business at least fifteen years and employ between 50 to 500 employees.
False
In the past few years, the federal government has cut back burdensome government regulations and paperwork to the point that they are almost non-existent for small business owners.
False
Performance standards and feedback are essential goals of the organizing function of management.
False
According to the Sports Business Journal, Levy Restaurants is the leading purveyor of premium food at major sports venues. Even before the sports event begins, George Scott, a director of the company, will have already walked more than a dozen laps. He will cover several miles in the course of a game, studying each food stand and cart for anything amiss--long lines, empty or messy condiment stations, not enough smiles from employees. Scott acts in a(n) _____ role.
Informational
Spring Airlines is a start-up business in China. It uses the management function of ____ to arrange that the three airplanes it operates are where they are supposed to be when they are supposed to be and have the appropriate number of operating personnel.
Organizing
Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The establishment of a new company and assigning the employees in the division the task of making an idea a reality requires which management function?
Organizing
_____ provides the structure of people, positions, departments, and activities within which the company objectives can be accomplished.
Organizing
_____ planning is the creation of long-range, comprehensive objectives and the development of long-term courses of action.
Strategic
The world's largest bank, Deutsche Bank, set as its objective to make its brand name as recognizable in the United States as FedEx and Visa are over the next ten years. The implementation of this long-range plan would require _____ planning.
Tactile
A manager who makes one-directional decisions and seeks no input from her subordinates can be described as having an autocratic leadership style.
True
An advantage of a small manufacturer over a large manufacturer is the speed with which new products can be introduced to the marketplace.
True
Andy Yocom was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group Inc. What should he include in his business plan?
all of the above
Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. Early in the development of this high-growth company, Arnold and Bradford attracted a group of investors who provided them with money needed to acquire other Internet companies with similar missions. The investment group is called:
angel investors
All of the following are examples of disadvantages associated with the ownership of a small business EXCEPT:
being your own boss
Kirby Frigo has opened a dog grooming business. Frigo, like other small business owners, probably will experience:
burdensome government regulations
A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out.
business plan
Mark Ghermizian had quit his job and was looking to start a small business so he could be his own boss. When he read that people spend up to fifteen minutes every day staring at a bathroom stall door, he decided he would find advertisers who wanted to pay to have their advertising messages on bathroom stall doors. Since he has his idea, Ghermizian's next step is to:
choose a form of business organization
A large furniture and appliance rental business is considering sponsorship options. It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers. The rental company has established a:
cross-functional team
The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).
debt; equity
Textron Corporation is establishing a legal division. The newly appointed head of the division is organizing, hiring people, and operating the division. This division head is performing a(n) _____ management role.
decisional
Luca Villanova has a major decision to make about how to increase attendance for the professional soccer team he owns. He wants to call his players and coaches together, generate alternatives, and come up with a solution by mutual agreement and vote. His style of leadership is called:
democratic (participative)
All of the following are characteristics of an entrepreneurial personality EXCEPT:
the willingness to be a follower rather than a leader
