Business Final
_____ is the gap between what is and what is required.
A need
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 an example of an unethical business activity?
All of the above are examples of unethical business activities.
_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.
Angel investors
_____ are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership.
Cooperatives
_____ refers to the core values and beliefs that support the mission and the business model of the firm and guide employee behavior.
Corporate culture LEARNING OUTCOME: 10 RATIONALE: Corporate culture refers to the core values and beliefs that support the mission and the business model of the firm and guide employee behavior.
_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.
Corporate philanthropy
What type of business organization generates the most total sales?
Corporation
With its ease of registration and pro-corporate policies, _____ is called the "state of incorporation." About half of the Fortune 500 companies are incorporated there
Delaware
Which of the following statements about the employee selection process is true?
During the initial job screening, the applicant usually completes an application form and has a brief interview of 30 minutes or less.
The _____ is a 1993 law that requires employers to provide unpaid leave for up to twelve weeks.
Family and Medical Leave Act
The father of scientific management was:
Frederick Taylor
_____ is at the core of most business failures.
Inadequate planning
Which of the following is NOT one of the five key types of power?
Influential RATIONALE: Reward power is power derived from an individual's control over rewards
_____ are entrepreneurs who apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own. They enjoy a high degree of autonomy while receiving a regular salary and financial backing from their employer.
Intrapreneurs
_____ is the process of guiding and motivating others toward the achievement of organizational goals.
Leadership
Which of the following statements about Maslow's hierarchy of needs is true?
Maslow claimed an upper level of need was not activated until a lower level of need was satisfied.
_____ managers are the managers concerned with implementing the plans and policies of top managers and supervising lower-level managers.
Middle
_____ is something that prompts an individual to release his or her energy in a certain direction.
Motivation
Penny Clovis works as a maintenance supervisor for a large hotel. She is new in her position and the first woman to ever hold this position for this hotel chain. Clovis has become increasingly concerned about negative statements she has overheard like, "Well, Penny's promotion should get the affirmative action people off our back for awhile." According to the definition, does Clovis have a grievance?
NO. She does not have a grievance because there is no contract violation here.
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
_____ is the process of arranging the structures and relationships of human and material resources to carry out an organization's plans.
Organizing
_____ is the assignment of various functions, like human resource management, accounting, or legal work, to outside firms.
Outsourcing
Which of the following statements about a general partnership is true?
Partners in a general partnership co-own the company's assets.
Which of the following is a type of off-the-job training?
Programmed instruction RATIONALE: Job rotation is reassignment of workers to several different jobs over time so that they can learn the basics of each job.
_____ involves presenting an accurate and positive image of the firm to those it is recruiting for jobs.
Recruitment branding
To avoid double taxation, a new entrepreneur may elect to organize as a(n)
S corporation
_____ are all the individuals or groups to whom a business has a responsibility
Stakeholders
_____ 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
Which of the following statements about Theory Z style of management is true?
Theory Z contains many elements from Japanese management.
Which of the following describes the first step in the union organizing process?
Union makes contact with employees.
_____ 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
_____ is responsible for identifying the Theory Z style of management.
William Ouchi
What is another name for a job fair?
a corporate open house
Which of the following businesses provides its customers with a service?
a law office
Articles of incorporation do NOT include
a list of all stockholders' names
Croutakie seemed like a great idea. Chef Leo Nyami and Sara Rice decided to take advantage of the popularity of shitake mushrooms and create some shitake mushrooms products that could be sold to restaurant patrons and other gourmets through their new company. The mushrooms are expensive, and there were other unexpected financial problems, so Nyami and Rice asked Bill Ng to become a limited partner. This means that Ng:
agrees not to participate in day-to-day management of the firm
A well-written business plan should contain:
all of the above
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
Franchisors in foreign countries must be aware of:
all of the above
Social responsibility should extend beyond the shareholders to include
all of the above
Social responsibility should extend beyond the shareholders to include:
all of the above
Which of the following factors affects an employee's compensation?
all of the above
Which of the following is a characteristic of pure competition?
all of the above
Which of the following is an example of a business?
all of the above
Which of the following would be stakeholders for a manufacturer of agricultural pesticides?
all of the above
The government does not consider full employment to mean 100 percent of its citizens are employed because:
all of the above conditions can and do exist
Intrapreneurs:
are accurately described by all of the above
Dewayne Gibbons of Burger King decided to introduce a new sliced chicken sandwich without consulting any of his subordinates or the franchise. Managers who use this style of decision making exhibit the _____ style of leadership.
autocratic RATIONALE: A democratic leader solicits inputs from all members of the group and then allows members to make the final decision through a vote.
Which of the following demographic groups is having the greatest impact on the growth of the franchising industry?
baby boomers
Which of the following businesses provides its customers with a good?
bicycle manufacturer
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 did convince someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship as a sole proprietorship. When she dies, the:
business dies with her
Which of the following provides the legal and managerial guidelines for operating the firm?
bylaws
Individual ownership of property is a key element in
capitalism
Middle managers usually:
carry out plans and policies of top management
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
The _____ for the Music Teacher's National Associations establishes a standard of conduct and recommends a set of responsibilities teachers should have toward students, colleagues and the public. These guidelines assist the professional music teacher in gaining the respect of peers and avoiding conflicts and complaints with students and others. It points out to members what are and what are not considered fair, honest and reasonable practice when dealing with students, colleagues and the public, it provides guidance for such aspects as advertising practices, appropriate relationships, and personal and professional integrity.
code of ethics
Jack Welch, former CEO of General Electric, was known by his employees as "Bloody Jack" because of the downsizing and restructuring he insisted the company do if its various departments were unable to achieve organizational goals. Knowing this nickname, you can assume that Welch used _____ power to accomplish his goals for GE
coercive
U.S. Lumber Company's purchase of EnviroPlastics, a manufacturer of plastic cutlery, is an example of a _____ merger.
conglomerate
Management needs to be prepared to deal with problems and seize opportunities as they arise. A company often identifies alternative courses of action to be taken if events undercut a strategic or tactical plan. These are called _____ plans.
contingency
Truman Pao was sitting in a stockholder meeting for a company that manufactures African-American beauty aids. Pao was startled when a group of workers disrupted the meeting by standing up on the furniture and making claims about unfair working conditions. Since the company is unionized, Pao should recognize that what happened during the meeting was an example of a:
corporate campaign
The Chubb Group, an insurance company, regularly supplies funds for programming on the public television network. Its donations are an example of
corporate philanthropy
The Healing Garden is the manufacturer and marketer of organic beauty aids. Its annual $40,000 donation to The Nature Conservancy in support of the nonprofit organization's pledge to preserve the environment is an example of
corporate philanthropy
In a(n) _____ election, the workers may vote out an existing union.
decertification
A business plan:
describes in detail the idea for the new business and how it will be carried out
Top management usually performs all of the following tasks EXCEPT:
direct workers on the assembly line
Double taxation in a corporation means:
earnings of the corporation and dividends of the shareholders both are taxed
A homebuilder who disposes of asbestos shingles by burying them on his own property may please the home owner because it is a less expensive means of disposal but will be punished by various legal agencies if any become aware of his crime. At which stage of the social responsibility pyramid is the builder most likely operating?
economic
It has been alleged that a Coca-Cola water bottling plant in India has caused illegal water shortages in fifty villages that surround the bottler. If this accusation is true, than Coke was operating at which stage of the social responsibility pyramid?
economic
The Occupational Safety and Health Act requires:
employers to provide a safe and healthful workplace
In employee selection, the initial screening consists of two stages. They are the:
employment application form and the preliminary interview
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
The headquarters, seller, and supplier of the service or method of operation of a franchise is called the:
franchisor
Croutakie seemed like a great idea. Chef Leo Nyami and Sara Rice decided to take advantage of the popularity of shitake mushrooms and create some shitake mushrooms products that could be sold to restaurant patrons and other gourmets through their new company. Nyami and Rice have recently abandoned their business because they could not pay its outstanding business debts. Since Nyami and Rice are both liable for the debts, their business was a(n):
general partnership
A firm's stockholders have the right to do all of the following EXCEPT:
get discounts on the company's product or service
The key element in socialism is
governmental control
A ______ is a formal complaint, by an employee or by the union that management has violated some part of the contract.
grievance
In 2000, Eric Baker and Jeff Fluhr came up with a concept that would do away with scalping if they had their wish, and everyone used StubHub.com. The Internet company brings people who want tickets and people who have tickets that they are not using together. The company has assisted in the sale of tens of millions dollars worth of tickets annually and is always trying to sell more. It charges a small fee for its assistance. Baker and Fluhr would be classified as:
growth-oriented entrepreneur
North American Van Lines and Allied Van Lines combined in a _____ merger that will create the world's largest moving company. Prior to the merger, North American was the leading company in moving high-end merchandise such as computer and hospital equipment, while Allied specialized in households.
horizontal
One of the keys to ethical business behavior is
how the company's top management conducts themselves
According to Herzberg, _____ factors must be present to prevent work dissatisfaction, but these factors cannot serve as a source of satisfaction or motivation.
hygiene
In Herzberg's theory, salary is an example of a(n):
hygiene factor
One criticism of Herzberg's motivator and hygiene theory is that it:
ignores the impact of situational variables
A key element in capitalism is:
individual ownership of property
Lachlan Stuart is employed by International Paper, a company that values his vision and creativity. To stay ahead in a very competitive industry, International Paper gives Stuart, and his division has almost complete autonomy to develop innovative and effective communications. Stuart is an example of a(n):
intrapreneur
Programmed instruction:
is a self-paced, highly structured training methodWhat is another name for a job fair?
Utilitarianism
is difficult to implement because it is hard to tell how one decision will impact a large number of people
Venture capital:
is financing obtained from investment firms that specialize in financing small, high-growth companies
Social investing:
is the practice of limiting investments to companies that have ethical policies that match those of the investor
A Theory X manager would assume his or her workers are:
lazy employees who can't be trusted
Stuart McFarland is sales manager for a hotel. His job entails leading, motivating, and communicating with employees. McFarland's main management activity is:
leadership
The relatively consistent pattern of behavior that characterizes a leader is called his or her _____ style.
leadership
Many weight-loss programs advertise that they can help individuals lose a great deal of weight without any changes in the individual's lifestyle. Typically when the person who has lost the weight leaves the program, he or she regains all the lost weight. This yo-yoing is almost as bad for the body as the excess weight. These weight-loss programs are engaged in _____ behavior
legal but irresponsible
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 ability of the Nortel top management to create this new division and assign employees to it is a result of their having _____ power.
legitimate
The Theory Z style of management emphasizes:
long-term employment
As one of the factors of production, natural resources includes all of the following EXCEPT:
machinery
The combination of two companies that join to form one company is called a:
merger
Many classic entrepreneurs are _____ who start small and plan to keep their business small.
micropreneurs
A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out.
mission statement
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
Which of the following elements does NOT typically appear in a well-prepared business plan?
names of all employees
An industry in which a few firms produce most or all of the output of a product and in which large amounts of capital are needed is called a(n):
oligopoly
Robin Banyan applied for a job at Shane Printing, which is unionized. She was told that she need not join the union and did not have to pay union dues if she did not want to. Shane Printing's labor contract supports a(n) _____ shop.
open
For most agricultural products, farmers produce homogeneous products, sell them to a common market, and generally cannot affect prices greatly. This is an example of which kind of market structure?
perfect competition
Like many other companies, Robert Mondavi Winery uses _____ to systematically compare the actual performance of each employee with his or her expected performance.
performance appraisals
A common use of business plans is to:
persuade lenders and investors to finance the venture
During a two-month period Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, donated ten percent of its retail profits to the Susan G. Komen Breast Cancer Foundation. The action was legal and ethical and allowed the company to still be profitable. According to the pyramid of corporate social responsibility, it was acting at the _____ responsibilities level.
philanthropic
Bart Pietz works as a paramedic. Because he has just worked a plane crash and has been 20 hours without rest, he is extremely sleepy. Pietz needs to satisfy his _____ need.
physiological
When union members carry signs and march near the entrance of their employer to publicize their view of the dispute and discourage customers, they are engaging in:
picketing
Human resource _____ is the creation of a strategy for meeting future human resource needs.
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. The development, maintenance, and allocation of resources to achieve its goal will require:
planning
According to Herzberg, hygiene factors are:
potential job dissatisfiers
The main incentive in capitalism is
profit
Angel investors:
provide funding for start-up businesses
Which of the following is NOT a need identified in Maslow's hierarchy of needs?
psychological needs
The _____ GDP takes inflation into account and uses adjusted market prices
real
Hassan Nasrallah, the leader of Hizbullah: grew up very poor but very smart, and although he wears the robes of a minor Shiite cleric, he is a world-class politician. He has been called the most charismatic figure in the Muslim world. Nasrallah exerts _____ power over his followers.
referent
Strategic giving
refers to the practice of tying philanthropy closely to the corporation's mission or goals
In Herzberg's model, which of the following would be an example of a motivating factor?
responsibility
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
Many rock and roll fans believe that Jimi Hendrix was the best guitarist ever and that he stretched his ability to the utmost. According to Maslow's theory of need, Hendrix more than likely satisfied his _____ need.
self-actualization
A corporation's board of directors:
sets major corporate goals and policies
Alonzo Dwork will not buy stock in a company that sells bottled water because more than 1.5 million barrels of oil are used annually to make the plastic bottles used for water, and nearly 90 percent of these bottles are disposed of after one use. Dwork is a strong believer in environmental protectionism, and this _____ is his way of expressing that belief.
social investing
U.S. Steel has established an alcoholic rehabilitation program for the city of Pittsburgh. The company provides the facilities and the personnel to operate the program. U.S. Steel is practicing:
social responsibility
The form of business ownership that is easiest to dissolve is the:
sole proprietorship
For Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, its employees, suppliers of the paints used to decorate its porcelains, retailers of its products, and people who benefit from its philanthropy are all
stakeholders
For Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, its employees, suppliers of the paints used to decorate its porcelains, retailers of its products, and people who benefit from its philanthropy are all:
stakeholders
The _____ of any country is measured by the output of goods and services people can buy with the money they have.
standard of living
Seeds of Change manufactures and markets certified organic entrees. Its mission reads, "At Seeds of Change, we're committed to making delicious foods that are healthy for you as well as the planet." In support of this mission, the company donates money to support environmental protection activities. In other words, Seeds of Change engages in:
strategic giving
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
The lowest level of management, which usually has the most people to manage, is called _____ management.
supervisory
Most firms have three distinguishable levels of management. They are:
supervisory, middle, and top
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.
tactical
According to expectancy theory, the probability of an individual acting a particular way depends on the strength of the individual's belief that
the act will have a particular outcome and on whether the individual values that outcome
According to expectancy theory, the probability of an individual acting a particular way depends on the strength of the individual's belief that:
the act will have a particular outcome and on whether the individual values that outcome
Which of the following is the best example of a good?
the birthday candles you purchased to go on your sister's birthday cake
Who provides the start-up financing for the majority of new small businesses?
the business owner and his or her family and friends
Elton Mayo, America's first industrial psychologist, was responsible for formulating
the explanation of the Hawthorne effect
In which of the following industries would you expect to find the most rapid growth of unionization?
the fast-food industry
Which one characteristic most clearly defines a market structure?
the number of suppliers in a market
All of the following are characteristics of an entrepreneurial personality EXCEPT:
the willingness to be a follower rather than a leader
A relatively small group of managers at the head of an organization that establishes overall strategy and long-range goals is called _____ management.
top
Howard Cho has been hired by Greenwood Enterprises to work on an assembly line in its small engine division. He understands that he will be on probation for 30 days and then must join the union. Cho Enterprise has a(n)_____ shop.
union
The union and management agreement that allows non-union people to be hired but requires that they join the union after a probationary period creates the ______ shop.
union
One of the problems unions are experiencing today is the reluctance of autoworkers in southeastern United States to join unions. In a few instances, when the Auto Workers Union (AUW) gathered enough employee signatures to call for a(n) _____ election, the employees have voted against unionization.
union certification
When a union gets a sufficient number of authorization cards, it can ask the National Labor Relations Board for a:
union certification election
Which of the following is an example of a disadvantage associated with a partnership?
unlimited liability
Back in the late 19th century, the Carnegie Steel company controlled not only the mills where the steel was manufactured, but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore and the railroads that transported the coal to the factory. Through several _____ mergers the steel company gained control of the various resources it needed to product steel.
vertical
According to the Hawthorne effect,:
workers respond to being paid attention to