BA Exam 3 Review

Maslow's Hierarchy of Needs

(bottom to top): physiological, security, social, esteem, self-actualization

Partnership

- 2 or more owners - individual owners' income taxed - somewhat limited liability - easy way for 2 individuals to conduct business

Information Systems

- Data: the root and purpose of information systems - Hardware, software, and telecommunications networks: the components of information systems - People: the builders, managers, and users of information systems - Organizations: the context of information systems

The Transformation Process of Operations Management

- Inputs: land, labor, capital, raw materials, time, information, energy, (customer) - Transformation or Conversion: procedure, equipment, facilities, technology, knowledge - Outputs: goods, services, ideas, (feedback)

Service Characteristics

- Intangibility - Inseparability of production and consumption - Perishability - Customization - Customer Contact

Managers

- Planning: activities to achieve the organization's objectives - Organizing: resources and activities to achieve the organization's objectives - Directing: employees' activities toward achievement of objectives -Controlling: the organization's activities to keep it on course

S Corporation

- Up to 100 shareholders - taxed as a partnership - limited liability - legal entity with tax advantages for restricted number of shareholders

Motivational Factors (Herzberg)

- achievement - recognition - work itself - responsibility - advancement - personal growth

Corportation

- any number of shareholders - corporate and shareholder taxed - limited liability - legal entity with shareholders or stockholders

Theory Y

- assume workers will seek out responsibility and satisfy social needs -less control and supervision; address higher levels of Maslow's hierarchy -commitment to objectives with self-direction - collaborative - united states

Hygiene Factors (Herzberg)

- company policies - supervision - working conditions - relationships with peers, supervisors, and subordinates - salary - security

Theory Z

- employee participation in all aspects of company decision making - trust and intimacy with workers sharing responsibilities - relaxed but required expectations - commitment to workers total lives - participative - japan

The Digital Divide

- many people are being left behind in the information age - strong linkage btw computer literacy and a person's ability to compete in the information age - people in rural communities, the elderly, people with disabilities, and minorities lag behind national averages for internet access and computer literacy -the challenges in overcoming the digital divide are ever greater in developing countries

5 IT Megatrends that shape the Digital Future

- mobile - social media - internet of things - cloud computing - big data

Sole Proprietorship

- one owner - individual income taxed - unlimited liability - owned by a single individual / easier way to conduct business

Theory X

- tight control over workers - considerable specialization - tight control - limited concern - managerial - china

Limited Liability Company

- unlimited number of shareholders - taxed as a partnership - limited liability - avoid personal lawsuits

What is a disadvantage of sole proprietorship?

Lack of continuity

Which form of business ownership has the most freedom from government regulation?

Sole proprietorship

Which form of business ownership is the easiest to establish?

Sole proprietorships

At Just Right Thermostats, managers and workers share responsibilities, managers stress employee participation in all aspects of company decision making, and employment is long term. What theory of management does Just Right Thermostats follow?

Theory Z

Theory Z was first described by

William Ouchi

Which form of business ownership provides limited liability but is taxed like a partnership?

a limited liability company

Brewer Bikes, Inc. is a company that sells bicycles and accessories. It has been owned and operated by the Brewer family for 25 years. The Brewers own all the corporation's stock, and they are not required to disclose financial information publicly. What type of business is this?

a private corporation

A(n) ________ is like a calendar, containing both specific and vague items, which helps a manager figure out what must be done and how to get it done to meet the objectives set by the organization.

agenda

The Food Palace, Inc. is a large grocery chain that was incorporated in the United States. Over the years, the corporation has grown, and it has now opened locations in five other nations. In those nations, The Food Palace is considered to be a(n)

alien corporation

When a company issues a poison pill to try to head off a hostile takeover attempt, the company will

allow stockholders to buy shares of stock at prices lower than the market value

The legal documents that identify the basic agreements between partners are called

articles of partnership

An advantage of a corporation over a partnership is that

as a legal entity, a corporation can enter into contracts without as much difficulty as a partnership

Chrissy wants to develop a list of possible courses of action to draw more customers to her shop, so she calls a meeting of her sales staff. Together, they discuss the issue and suggest ideas to solve the problem. This is called

brainstorming

Aiden is assessing the appropriateness of a proposed option to resolve his company's product safety issues. When considering the consequences of the option, he should

consider its impact on the organization as a whole

________ is the process of evaluating and correcting activities to keep an organization on course.

controlling

The Dairy Farmers of America is an association of dairy farmers. Its agenda is not to make profits but to help its members market their products and to offer farmers a fair voice in national policymaking. Thus, The Dairy Farmers of America is an example of a(n)

cooperative

A ________ is a legal entity, created by the state, whose assets and liabilities are separate from its owners.

corporation

________ are typically owned by many individuals and organizations who own shares of the business, called stock.

corporations

The managers at Hydro Inc. have recognized declining sales on their water purifiers and must decide what to do to improve it. What should be their first step?

defining the situation

Production and Operations Manager

develop and administer the activities involved in transforming resources into goods, services, and ideas ready for the marketplace

What is a disadvantage of a partnership?

difficulty in selling the partnership interest

Frieda is a sales manager for a uniform supply company. Her favorite part of the day is when she gets to interact one-on-one with her employees motivating them, providing leadership, and rewarding them for doing their jobs well. Frieda enjoys the ________ function of management.

directing

A corporation doing business in the state in which it is chartered is known as a(n)

domestic corporation

Which statement is true of employee empowerment?

employee empowerment does not mean that managers are not needed

Which is a likely result of job enrichment?

employee will have more control and authority over their job

Lisa learned that although she and Linda were both hired as part-time sales clerks at the same time and have similar backgrounds, Linda is paid $2 more per hour. Lisa decided to ask her boss for $2 more per hour because she thinks the pay is unfair. This scenario is related to which management theory?

equity theory

Herzberg's motivational factors are similar to Maslow's

esteem and self-actualization needs

What theory states that motivation depends not only on how much a person wants something but also on the person's perception of how likely he or she is to get it?

expectancy theory

According to the classical theory of motivation, what would motivate employees to work hard?

financial incentives

Roger and his team members are primarily responsible for procuring the funds needed for the successful operation of the organization and investing that money to pursue organizational goals. Thus, Roger is a

financial manager

Master Marine, a boat shop, allows employees to log in at their preferred time and log off after completing eight hours. It does not have any fixed office timings. Master Marine offers ________ to its employees.

flextime

Financial Manager

focus on obtaining the money needed for the successful operation of the organization and using that money in accordance with organizational goals

A corporation doing business outside the state in which it is chartered is known as a(n)

foreign corporation

A disadvantage of the corporate form of business ownership is that the

formation of a corporation can be costly and it faces double taxation

The ________ style of leadership can be a powerful motivator because it demonstrates a great deal of trust and confidence in an employee and allows employees to meet their work demands with little or no interference.

free-rein

Human resources Manager

handle the staffing function and deal with employees in a formalized manner

Feed & Grow and Boost Products, two fertilizer companies, merge to reduce the number of corporations competing within the fertilizer industry. This merger is an example of a

horizontal merger

Which statement accurately reflects the two strategies used in Skinner's behavior modification theory?

in general, rewarding appropriate behavior is a more effective way to modify behavior than punishing unacceptable behavior

What is an advantage of partnerships over sole proprietorships?

in partnerships, the owners have access to more funds than in sole proprietorships

In an S corporation, net profits and losses of the corporation pass to the owners. What effect does this have?

it eliminates double taxation

What is an advantage of allowing employees to telecommute?

it helps reduce overhead costs for businesses

Ken is a partner in a local hardware store. He decides to sell his partnership interest. What is one challenge that Ken will face?

it may be difficult for the partners to place a value on Ken's share of the partnership

When selecting the best option among a series of possible decisions,

it may be possible to use a combination of several options

What is an advantage associated with job rotation?

it reduces the boredom created by specialization of tasks

Which option is likely to be most effective for retaining employees who are trying to juggle their work duties with other responsibilities and needs?

job sharring

All of the following are ways technology is helping today's sole proprietors succeed EXCEPT

landline telephones allow them to make free long-distance calls to customers, suppliers, and others

Administrative Manager

manage an entire business or major segment of a business; do not specialize in a particular function

________ make decisions about the use of an organization's resources and are concerned with planning, organizing, directing, and controlling the organization's activities.

managers

What is true regarding crisis management?

many companies have crisis management teams to deal specifically with problems, permitting other managers to continue to focus on their regular duties

For an organization, the first step in the management function of controlling is to

measure the actual performance

Sven manages the computer department at his company. He helps the organization implement its general guidelines by managing the specific operations related to his department. Sven is a

middle manager

An inner drive that directs a person's behavior toward goals is called

motivation

Liz manages a large floor refinishing company. She spends a lot of time communicating with a variety of people and participating in activities that do not seem to have much to do with goals of her company but are crucial for getting the job done. What is this called?

networking

A similarity between limited liability companies and S corporations is that both

offer limited liability to owners

Which is an assumption of Theory Y?

organizations today do not make full use of workers' intellectual potential

Determining an organization's objectives and deciding how to accomplish them is the management function known as

planning

Kishan is a top-level manager at an accounting firm. He has many years of varied experience and he spends most of his time making strategic decisions about how to use the company's resources. On which management function does he spend most of his time?

planning

Ross is one of the senior managers of a large company. He is part of a team that determines the objectives of the company based on future trends in the industry and decides how to accomplish them. Ross is involved in the management function of

planning

Hallie manages a fitness club, which employs front desk personnel, personal trainers, and fitness instructors. She wants to motivate her employees to work hard and maintain high levels of productivity. What should Hallie do to motivate her employees?

provide growth opportunities for employees

Which is the first step in decision making?

recognizing and defining the decision situation

A compressed workweek is most likely to

reduce a company's operating expenses

Information Technology (IT) Manager

responsible for implementing, maintaining, and controlling technology applications in business, such as computer networks

Marketing Manager

responsible for planning, pricing, and promoting products and making them available to customers through distribution

Elton Mayo and his team conducted research on workplace conditions and productivity at the Hawthorne Works Plant of the Western Electric Company from 1924 to 1932. Throughout the study, as Mayo and his team introduced various physical conditions, the workers' productivity increased. When the researchers asked the workers about their behavior, they expressed

satisfaction because their supervisor had asked for their help and cooperation in the study

Juanita manages a large boarding stable that employs several people who clean stalls, feed the horses, teach riding lessons, and do training rides on boarders' horses. According to Herzberg's theory, what can Juanita do to motivate her employees to work harder, in terms of content of the work itself?

she can involve them in the stable's processes and decisions

Tahlia manages a grocery store, which employs several baggers, cashiers, floor managers, and stockroom workers. According to Herzberg's theory, what can Tahlia do to ensure that her employees are satisfied with their work setting?

she can provide adequate wages

Taryn, Kate, and Jillian all work at a department store in the mall. They have been working there for the same amount of time, and they all have similar educational and employment backgrounds. Jillian has just discovered that Taryn and Kate both make more money than her. What is an unethical or illegal behavior Jillian may exhibit to equalize the situation?

she may equalize the situation by stealing items from the store

Wayne is a manager of a large pharmaceutical firm. He often meets with consumer groups to discuss the safety of the company's new drugs. When he does this, he is acting as a

spokesperson

Hiring people to carry out the work of an organization is known as

staffing

What is a difference between strategic and tactical plans?

strategic plans are long term, while tactical plans are short term

What type of plan helps keep the organization on the course established in the strategic plan?

tactical plans

Lawlor Inc., a pharmaceutical company, allows its employees to work at home a few days per week, staying connected via computers, modems, and telephones. This arrangement is called

telecommuting

Which trait would be part of a person's human relations skills?

the ability to understand the needs of others

Maslow's theory maintains that

the more basic needs at the bottom of the hierarchy must be satisfied before higher-level goals can be pursed

The rationale behind a job enlargement strategy is that jobs are more satisfying when

the number of tasks performed by an individual increases

In an organization, decisions regarding adding new products, acquiring companies, and moving into foreign markets would most typically be made by

the top management

Frederick Herzberg proposed

the two-factor theory

What is a true statement about the board members of a corporation?

they have a duty of care and loyalty to oversee the management of the firm

Keesha, Mandy, and Isabel are starting their own pet grooming business, and they are drafting articles of partnership. What item should they be sure to include in their articles of partnership?

what to do if one of the partners becomes disabled

When are limited partnerships generally used?

when a project is risky and the chance of loss is great

According to managers who adopt McGregor's Theory X,

workers must be forced to do their jobs