BUS101 Unit 3
An entrepreneur is a person who opens and manages his or her own business.
True
Arranging a firm's human and material resources to carry out plans is called organizing.
True
Dividing up the tasks (division of labor) is an important part of organizing.
True
Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit.
True
Entrepreneurs typically are innovators who start companies to pursue their ideas for a new product or service.
True
Leadership is the process of guiding and motivating others toward the achievement of organizational goals.
True
Management is the process of guiding the development, maintenance, and allocation of objectives.
True
Micropreneurs are entrepreneurs who start small and plan to stay small.
True
More than half of small businesses have between one and four employees.
True
One of the basic functions of management is controlling.
True
Planning is the process of deciding what needs to be done to achieve organizational objectives; identifying when and how it will be done, and determining by whom it should be done.
True
The difference between small business owners and entrepreneurs is that small business owners:
accept the status quo and take a short-term view of the future
Management involves:
All of the above
Which of the following is not one of the four functions of management?
Budgeting
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
Entrepreneurs, as a general group, dislike risk taking.
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
Multipreneurs are businesspeople who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful.
False
Strategic planning is long-range, formulated by top management, and made as if the company operated in a vacuum.
False
The first step in starting your own business is the creation of a unique marketable idea.
False
The lowest level of management is engaged in strategic planning process.
False
The short-range, detailed planning that focuses on current operations is called functional planning.
False
_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.
Management
The difference between the small business owner and the entrepreneur is that the entrepreneur:
NOT is accurately described by all of the above NOT is responsible for the profits of the business
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
_____ planning is the creation of long-range, comprehensive objectives and the development of long-term courses of action.
Strategic
_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is less than one year long.
Tactical
When Art Baer read that Singapore would lift its ban on chewing gum, he thought to himself, "There has to be a market there." Baer, 26, knew if he was going to move beyond the daydreaming stage, he had to move fast. After investing $20,000 of his own money into developing a product he called Impress Gum, Baer quit his job, flew to Singapore, talked to the right people in the government, lined up a manufacturer, and hired a marketing firm to promote his gum, which fights tooth decay. Baer is an example of a(n) ______ entrepreneur.
classic
When he read Chicken Soup From the Soul, Joe Farmer was struck by how many of the stories mentioned the scent of the islands. So Farmer created bottles filled with Hawaiian air and some scented essence beads. When customers shake the bottles up and open the lids, they're transported back to paradise. While many marketing experts did not think that consumers would buy bottles of air, Farmer has earned more than half a million dollars of sale during his first year of operation. Farmer was an example of a _____ entrepreneur.
classic
Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n):
entrepreneur
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
When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market. As a result, she has started her own small business to produce and market corn-free desserts. It is a small market, and Logue plans to keep her business small. Logue is an example of a(n):
micropreneur
When Suzanne Pogell wanted to learn to sail, but she could find no one to teach her because men were the ones who sailed, and women were their crew. She finally convinced someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship. Pogell started small and plans to stay small. She would be correctly called a(n):
micropreneur
An organization's _____ is its general purpose or reason for existence.
mission
An entrepreneur is a person who _____ a business.
owns and operates
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. The development, maintenance, and allocation of resources to achieve its goal will require:
planning
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. To achieve this goal, Manila Water's top management will first need to engage in _____ planning to determine what resources are needed to achieve this goal.
strategic
Reader's Digest Association, Inc., has published Reader's Digest magazine for over 80 years, and many believe the publication is dated and can no longer attract many readers. They believe _____ plans are needed to revamp the magazine's content, editorial staff, and readership.
strategic
