busn 1003 test 2
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his employees. Siegel used a(n) _____ style to increase Lacoste's sales.
autocratic
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:
Among managers there are three distinctive leadership styles. They are:
autocratic, participative, and free-rain
The difference between the small business owner and the entrepreneur is that the entrepreneur:
assumes the risk of rhe business
Airline stewards in China will remove someone from the plane if they attempt to bring their own food with them. Instead, passengers must buy the food sold on the plane. The stewardesses have been given _____ power to deal with passengers who won't obey the rules.
coercive RATIONALE:
A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.
committee
Which of the following statements about the committee structure is true?
committees can be slow to reach a decision
A clothing wholesaler that buys most of its inventory from manufacturers in the Caribbean should have a _____ plan in the event a hurricane demolishes the manufacturing facility of one of its principal suppliers.
contingency
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
Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing.
debt
The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).
debt; equity
A supervisor engaged in ______ is grouping people, tasks, and resources into organizational units to facilitate the planning, leading, and control processes.
departmentalization
A business plan:
describes in detail the idea for the new business and how it will be carried out
The management activity of organizing.
determines, groups, and assigns work activities
Top management usually performs all of the following tasks EXCEPT:
direct workers on the assemly line
Medical diagnostic equipment specialist Georgiana Rutland was asked to attend a medical conference in which the attendees discussed new uses for laser technology in diagnosing certain types of cancer. Rutland exerted considerable influence over the decisions to adopt the laser technology because of her _____ power.
expert
Once the business plan is finished, the next step is to:
find financing for the business
Hugh Larrimore, Wilson Knight, and Frieda Perez have worked together for twelve years. They always clock in and clock out together. If one of the threesome happens to be late, the others will wait for him or her. This commonly accepted behavior for this informal group is called a(n):
group norm
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-orientded entrepreneur
Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to:
look for customers
_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.
management
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
Dean Jager is the supervisor of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all its volunteer staff efficiently. Jager is involved in _____ planning.
operational
A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.
organization chart
One of the primary goals of Burberry, a British retailer, is to expand its market. When the company allocated resources so that it could open two stores in Japan, it was engaged in which management function?
organizing
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
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
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
_____ provides the structure of people, positions, departments, and activities within which the company objectives can be accomplished.
organizing
Who provides the start-up financing for the majority of new small businesses?
the business owner and his or her family and friends
Division of labor refers to:
the process to dividing work into seperate jobs
All of the following are characteristics of an entrepreneurial personality EXCEPT:
the willingness to be a follower than a leader
_____ 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 a permanent organization structure that combines functional and product departmentalization.
a matrix structure
The first step in starting your own business is:
a self-assessment
Intrapreneurs:
are acuratelty described by all of the above
The difference between small business owners and entrepreneurs is that small business owners:
accept status quo and take a short-term view of the future
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
Hannah Li wants to quit her job as a legal secretary and start her own small business. She knows that she will be successful if she can find the right idea. Where can Li look for ideas for her new business?
all of the above
Management involves:
all of the above
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 questions to ask
One of the advantages of the matrix structure is:
all of these
Which of the following is a characteristic of the entrepreneurial personality?
ambitious
_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.
angel investors
Which of the following is NOT one of the four functions of management?
budgeting
Kathy Elliot has decided that she will start an Internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliot's next step is to write a formal _____ before she applies for a business loan.
business plan
Which of the following is NOT a commonly used method for departmentalizing a firm?
by managerial level
Middle managers usually:
carry out plan and policies of top management
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
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
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
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
American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors. American Express uses _____ departmentalization.
customer
As part of her marketing project, Lily Unruh is studying how Marriott operates. Since she thought it was simply a hotel chain, she was amazed to learn that its food divisions provide food for school cafeterias, airlines, hotels, and fast-food restaurants. Marriott's food divisions are departmentalized by:
customer
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
Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. During the development of this high-growth company, Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with ______ financing.
equity
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
_____ financing is a form of financing consisting of funds raised through the sale of stock in a business.
equity
Leadership is:
guiding others to achieve specefic goals
A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:
horizontally-organized team
_____ 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
Gord Larose and his friend David Allan worked in Ottawa at Nortel Networks, a giant telecommunications-equipment maker. One Friday afternoon, over a few beers in Larose's kitchen, they dreamed up a scheme for renting software over the Internet. Instead of quitting their jobs, they reported to work on Monday, explained their plan to their boss, and began working to make their idea a reality. Four years later, their idea has evolved into an important division of Nortel called Channelware. Larose and Allan are examples of:
intrapreneurs
To be a high-performance team, a team:
is accurately described by all of these
Venture capital:
is financing obtained from investment firms that specialize in finiancing small, high-growth companies
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
_____ is the process of guiding and motivating others toward the achievement of organizational goals.
leadership
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.
legitmate
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
Many classic entrepreneurs are _____ who start small and plan to keep their business small.
micropreneurs
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
An organization's _____ is its general purpose or reason for existence.
mission
A _____ is a formal document that states an organization's purpose and reason for existing and describes its basic philosophy.
mission statement
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
The _____ of the Booth Western Art Museum reads, "The Booth Western Art Museum will educate, entertain, and inspire a diverse audience by creating a place where people feel welcome, find meaning and value, and delight in exploring the uniqueness of Western American art and culture."
mission statement
Michael Bronner made a killing 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. The 40-year-old Bronner will more than likely start at least one more new company before he retires because Bonner is a(n):
multipreneur
_____ are entrepreneurs who start a series of companies.
multipreneurs
An entrepreneur is a person who _____ a business.
owns and operates
A common use of business plans is to:
persuade lenders and investors to finance the venture
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
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
The Cooke family has worked for various General Motors's divisions for over four decades. Bennett Cooke works at the Cadillac division. Rondella Cooke works at the Buick division. Their son Tyrone works at the Corvette plant, and their daughter Niome works at the Saturn plant. The Cooke family could tell you that GM is departmentalized by:
product
Another name for the matrix structure is the:
project management approach
Angel investors:
provide funding for a start-up business
One of the advantages of work group cohesiveness is:
reduced employee turnover
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
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.
stratgetic
Dean Jager is in charge of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all of its volunteer staff efficiently. Jager is a _____ manager.
supervisory
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
After the World Cup soccer games, Puma, the German sporting goods manufacturer, increased its end-of-year sales target by $641 million. Puma developed _____ plans with a goal that extra sales would come from new product categories the company was introducing, sale of soccer equipment, and consolidation of several subsidiaries.
tactial
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
_____ 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
A relatively small group of managers at the head of an organization that establishes overall strategy and long-range goals is called _____ management.
top
The three basic levels of the managerial hierarchy are:
top, middle, supervisory
