Intro to business quiz 2

Bob Nichol and Martha Bohner own and operate a small company that bakes and sells Thunder Muffins, gigantic muffins full of blueberries, blackberries, or raspberries. They sell the muffins at a local farm that is open to the public on weekends. Since they operate the business as a partnership, they should: borrow as much as possible hire an outside consultant hire a manager to operate the business seek government assistance agree to share the business's profits and losses ~: One of the conditions of a partnership is equal sharing.

Agree to share the business

The two types of cooperatives are: buyer and seller general liability and limited liability public and private member-operated and board-of-director-operated retail and wholesale

Buyer and seller

A network of Bennetton retail sales agents select the Bennetton designs that they feel will appeal to Bennetton retail customers. The responsibility for picking the next "hot style" is in the hands of this group. This is an example of a _____ structure. matrix committee functional subordinated cluster

Commitee

Which of the following statements about the committee structure is true? Committees limit the range of possible solutions to a problem. Committees can be slow to reach a decision. Committee structures are not dominated by any single individual. Committee meetings are typically short and reach solutions quickly. All of the above statements about the committee structure are true. ~FEEDBACK: Committees expand the range of possible solutions to a problem. Committee structures can be dominated by a single individual. Committee meetings can sometimes go on for long periods with little being accomplished.

Committees can be slow to reach a decision

A _____ merger brings together companies in unrelated businesses to reduce risk. conglomerate combination horizontal vertical cooperative

Conglomerate

Which of the following management terms is NOT associated with the ideal virtual corporation? vertical integration core competency organization chart managerial hierarchy centralized decision making

Core competency

Work group cohesiveness can benefit the organization by doing all of the following EXCEPT: increased productivity enhanced worker self-image because of group success decreased resistance to change reduced employee turnover reduced employee absenteeism

Decreased resistance to change

______ is the sharing of job duties and authority with subordinates. Responsibility sharing Functionalization Delegation of authority Job enrichment Networking

Delegation of authority

The management activity of organizing. determines, groups, and assigns work activities plans and monitors strategy implementation determines goals, strategies, and tactics results in a more productive workforce due to increased levels of compensation compares expected performances with actual performances

Determines, groups, and assigns work activities

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. networked; flat matrix; narrow networked; tall flat; tall matrix; tall

Flat; tall

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 private corporation limited partnership open corporation quasi corporation

General partnership

A(n) _____ organization is a network of connections and channels of communication based on the informal relationships of individuals inside an organization. casual grapevine latent hierarchical informal

Informal

The franchise agreement: must be approved by the Securities and Exchange Commission (SEC) guarantees that the franchisee will make a profit is the contract that details the terms of the franchise guarantees that the franchisor will make a profit removes any liability from the franchisor if the franchisee does not make a profit

Is the contract that details the terms of the franchise

A _____ is when two or more companies form a special entity to undertake a specific project, usually for a specific period of time. general partnership limited-time partnership joint venture cooperative C corporation

Joint venture

Thom Georges wants to open a store where he sells nothing but antique architectural features that he can salvage from old houses being torn down to make way for progress. He has an eye for the kind of doors, windows, mantels, and so forth that decorators want, but he does not have all the funding he needs to get started. He has invited his parents to invest $40,000 in the enterprise. He has told them that if they do invest, they would have liabilities in the firm equal to but no greater than their investment. Georges is trying to get them to form a _____ with him. closely-held corporation cooperative general partnership joint venture limited partnership

Limited partnership

The managerial hierarchy is also called the: managerial continuum management pyramid control continuum management matrix span of management

Management pyramid

The ______ refers to the levels of management within the organization. These levels usually conform to the shape of a pyramid. functional group managerial hierarchy subordinated unit authoritative span control matrix

Managerial hierarchy

Which of the following is NOT an advantage associated with matrix structures? The company can tackle more complex tasks through teamwork. Managers can build large, permanent teams of specialists. Employees are more productive when they work on a special project. Special projects give employees opportunities for personal and professional development. The group can be disbanded if it is no longer needed.

Managers can build large permanent teams of specialists

Military organizations, like the Pentagon, typically have a(n) _____ organization. staff matrix mechanistic line organic

Mechanistic

The form of business ownership that has the most difficulty in raising capital is the: general partnership limited partnership cooperative corporation sole proprietorship

Sole proprietorship

The most common form of business organization is:

Sole proprietorship

Division of labor refers to: how the unity of command is assigned the width of the managerial hierarchy the degree to which tasks are subdivided into smaller groups the process to dividing work into separate jobs the size of the span of management

The process to deciding work into separate jobs

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. acquired combination horizontal functional vertical

Vertical

The merger of McKesson, the leading U.S. drug wholesaler, and HBOC, a producer of health-care inventory software, is an example of a(n) _____ merger. acquired combination horizontal functional vertical

Vertical

Which of the following statements about a general partnership is true? A general partnership is an entity separate from its owners. A general partnership is the most popular form of business ownership. The partnership agreement must be in writing to be legal. General partnerships are usually "double-taxed." Partners in a general partnership co-own the company's assets.

partners in a general partnership