Mgmt Test Ch 10-13,18

A wide span of management produces A. a flat organization. B. multiple layers of management. C. a parallel organization. D. a horizontal organization. E. a vertical organization.

a

After watching the royal wedding, Susan wants to start her own hat making company in the United States. Where should she look first for financing? A. Personal resources B. SBA C. Strategic alliances D. SBICs E. Venture capital companies

a

Air traffic controllers work shifts in the tower. This is an example of which form of departmentalization? A. Time B. Location C. Divisional D. Sequential E. Customer

a

Four general factors contribute to the failure rate of small businesses. They include A. managerial inexperience. B. overcapitalization. C. rapid growth. D. the lack of an innovative spirit. E. managerial competence.

a

In which of the following industries are you most likely to find small business success? A. Retailing B. Department store retailing C. Wholesaling D. Airline E. Manufacturing

a

Jane's Candy Shack was a quaint shop, in a small town, with high end items that never attracted many customers. Its failure was probably attributable to failure to A. do market research. B. pay decent wages. C. raise enough capital. D. contact the SBIC. E. hire a consultant.

a

Many high school teachers also coach a sport. They have the same autonomy in coaching that they have in the classroom. This is an example of A. job enlargement. B. job enrichment. C. work teams. D. job specialization. E. job rotation.

a

The starting point for all job design activities is determining the level of desired A. specialization. B. departmentalization. C. delegation. D. authority. E. responsibility.

a

Which of the following is NOT a part of the organizational structure? A. Decision making B. Designing jobs C. Establishing reporting relationships D. Distributing authority among jobs E. Grouping jobs

a

Which of the following is NOT a source of management advice for an entrepreneur? A. Federal Trade Commission (FTC) B. Small Business Administration (SBA) C. Service Corps of Retired Executives (SCORE) D. Active Corps of Executives (ACE) E. Small Business Institute (SBI)

a

Which of the following is an example of identifying a new niche in an established market? A. Modifying a cell phone keyboard to alphabetical order B. Reducing the number of outlets that sell computers C. Reducing the price of a printer so that it is more affordable D. Introducing a new computer in an industrialized country E. Designing a computer that can control traffic flow on a freeway

a

Which of the following is the MOST commonly used basis for departmentalization, especially among small businesses? A. Location B. Function C. Product D. Customer E. Sequence

b

An entrepreneur does all of the following EXCEPT A. organize. B. plan. C. hire professional managers. D. assume risk. E. operate.

c

Most experts say that anyone opening a new business should be financially strong enough to operate without business income for A. 1-3 months. B. 3-6 months. C. 6-12 months. D. 1-3 years. E. 2-5 years.

c

The ____ tells how much money is needed to operate a new business. A. income statement B. profit and loss statement C. cash budget D. t-account E. balance sheet

c

The most significant disadvantage to franchising as a means of acquiring a business is A. the amount of paperwork. B. the absence of economies of scale. C. high start-up costs. D. government regulation. E. low break-even points.

c

What is the most common source of funds for entrepreneurs? A. Bank loans B. Money from venture capitalists C. Personal financial resources D. Issuing stock in the business E. Forming strategic alliances

c

Which of the following statements is TRUE about the industries that small business owners may consider entering? A. Small businesses dominate the construction industry. B. Since the deregulation of banks, the small local bank has completely disappeared. C. Barriers to entry are generally small. D. There are no small businesses in the wholesaling industry. E. More than any other industry, discounting lends itself to the skills of the small business owner.

c

The most important part of the small business financial plan is the A. income statement. B. balance sheet. C. inventory analysis. D. cash budget. E. break-even chart.

d

The most significant change in small business is A. the increase in the number of male-owned businesses . B. the increase in the number of small business failures. C. the decline in the number of sources of financing for small businesses. D. the rapid emergence of electronic commerce. E. the luring of entrepreneurs back to corporate America for financial security.

d

Under the guidance of the ____, veteran business professors and students seeking advanced degrees work with small business owners to help solve specific problems like shoplifting and ineffectual advertising. A. Active Corps of Executives (ACE) B. National Federation of Independent Businesses (NFIB) C. Small Business Development Center (SBDC) D. Small Business Institute (SBI) E. Service Corps of Retired Executives (SCORE)

d

____ are most alike in terms of the amount of authority and responsibility workers are given with each. A. Job rotation and job enrichment B. Work teams and job enlargement C. Job rotation and work teams D. Job enrichment and work teams E. Job enlargement and job enrichment

d

Which of the following is NOT a source of management advice for an entrepreneur? A. Management consultants B. Small Business Administration (SBA) C. Networking D. Advisory boards E. Securities and Exchange Commission (SEC)

e

Which of the following is NOT generally considered to be a role performed by small businesses? A. Creation of new jobs B. Development of new products C. Manufacture of materials for large businesses D. Distribution of products made by large businesses E. Provision of capital for expansion of large businesses

e

GM has a division for GMC trucks and one for Buicks, Oldsmobiles, and Cadillacs. This is an example of ____ departmentalization. A. product B. location C. divisional D. sequential E. customer

a

Target stores have departments for groceries, clothing, electronics, jewelry, and home goods. This is an example of departmentalization by A. product. B. location. C. division. D. sequence. E. customer.

a

A municipal government has departments for construction, fire, first aid, schools, taxes, public works, and recreation. It uses ____ departmentalization. A. product B. functional C. location D. customer E. sequential

b

Graicunas quantified three kinds of interactions with subordinates. They are A. functional, product, and customer. B. direct, cross, and group. C. direct, indirect, and indeterminate. D. delegated, centralized, and decentralized. E. group, individual, and team.

b

In which of the following areas of retailing are small businesses most likely to create jobs through success? A. Gas station B. Creating organic health products C. General hardware D. Department store E. Factory outlet

b

Which of the following is an advantage of tall organizations? A. Less expensive to operate than flat organizations B. Less administrative and supervisory responsibility for managers C. Increased worker productivity D. Increased worker morale and job satisfaction E. Fewer communication problems than in flat organizations

b

____ is the grouping of jobs into some logical arrangement. A. Specialization B. Departmentalization C. Job rotation D. Delegation E. Job design

b

An appropriate basis of departmentalization for multinational companies is A. product. B. function. C. location. D. customer. E. sequence.

c

At Haldeman Ford dealership employees specialize in sales, service maintenance, customer service, and accounting. What form of departmentalization does Haldeman use? A. Customer B. Product C. Functional D. Divisional E. Location

c

High schools register seniors first, then juniors, sophomores and finally freshmen. What basis of departmentalization does this represent? A. Time B. Function C. Sequence D. Location E. Product

c

In large organizations you would expect to find ____ departmentalization(s). A. location B. customer C. a combination of two or more D. functional E. product

c

Product departmentalization has the disadvantages that ____ and administrative cost is increased. A. decision making is slowed B. performance of individual product lines is hard to assess C. managers often fail to focus on what is good for the organization as a whole D. experts are concentrated in one area E. the organization must have skilled specialists to deal with each client group

c

Span of management is the A. extent to which authority is delegated at the individual level. B. extent to which authority is systematically delegated to middle and lower levels of management. C. number of subordinates reporting to a particular manager. D. process of grouping jobs according to some logical pattern. E. number of managers assigned to a department.

c

The term ____ suggests that there must be a clear and unbroken line of authority and responsibility from the lowest to the highest position. A. autonomy B. delegation C. chain of command D. unity of command E. scalar principle

c

Which of the following methods of departmentalization groups jobs according to their involvement in the same or similar activities? A. Customer B. Product C. Functional D. Divisional E. Location

c

Which of the following statements does NOT describe an advantage of product departmentalization? A. Decision making can be done at the top management levels. B. All similar activities within an organization can be done simultaneously. C. Administrative costs are lower. D. Sales forecasting is easier. E. Performance of individual product lines is easy to assess.

c

____ is defined as clear and distinct lines of authority among all positions in an organization. A. Autonomy B. Delegation C. Chain of command D. Span of management E. Departmentalization

c

____ is the determination of an individual's work-related responsibilities. A. Organization structure B. Organization design C. Job design D. Departmentalization E. Delegation

c

Another name for span of management is span of A. delegation. B. authority. C. centralization. D. control. E. influence.

d

If a manager has only a few subordinates, she has a span of management that is A. wide. B. functional. C. delegated. D. narrow. E. direct.

d

Pastors at a large church specialize in meeting the needs of different age groups. They are organized on the basis of A. product. B. function. C. location. D. customer. E. time.

d

Siemens created Siemens One to group employees together that serve the same client. For example people from medical and building technology both serve hospitals, so a Siemens One representative talks to a hospital about all of Siemens products and services. Siemens One uses ____ departmentalization. A. product B. function C. location D. customer E. sequence

d

Which of the following refers to the number of subordinates who report directly to a given manager? A. Responsibility B. Departmentalization C. Delegation D. Span of management E. Authority

d

Yoshiko is the manager of the accounting department. She has an assistant manager who reports to her. Six supervisors also report to her from other divisions. The supervisors have three subordinates each. Yoshiko has a span of management of A. eighteen. B. nineteen. C. ten. D. seven. E. six.

d

____ departmentalization has the advantage of reducing the number of skills a manager must possess. A. Location B. Customer C. Sequential D. Functional E. Product

d

All of the following are bases for departmentalization EXCEPT A. function. B. location. C. product. D. customer. E. competition.

e

Job ____ requires that autonomy be part of the job. A. specialization B. rotation C. delegation D. enlargement E. enrichment

e

Procter & Gamble is departmentalized, in part, on the basis of product. Which of the following characteristics would you expect to find at Procter & Gamble? A. High levels of functional specialization B. Narrow range of skills in each department to enhance supervision C. A dual command structure D. Slow and bureaucratic decision making E. More effective evaluation of the performance of individual products or product groups than with functional departmentalization

e

The advantages of a flat organization include A. greater communication between upper and lower levels of management. B. lower total managerial costs. C. flexibility. D. improved employee productivity. E. All of these choices

e

Which of the following is a common disadvantage inherent in product, customer, and location departmentalization? A. Decision making is slowed. B. Managers are unable to delegate as much. C. It is difficult to pinpoint the cause of failures. D. The organization tends to become more centralized. E. Administrative costs tend to rise due to an increase in the size of staff.

e

In which alternative to specialization does the job itself remain the same, which means satisfaction usually wanes quickly? A. Job characteristics approach B. Job rotation C. Job enrichment D. Job enlargement E. Work teams

b

In which of the following industries are you LEAST likely to find a small business owner performing well due to a lack of economies of scale? A. Construction B. Transportation C. Service D. Retailing E. Manufacturing

e

Laundry is never done. Unless it is done naked, doing laundry creates more work. Laundry lacks ____. A. autonomy B. feedback C. task significance D. skill variety E. task identity

e

Which of the following statements about service businesses that are classified as small businesses is TRUE? A. Service businesses appeal to the innovative nature of many entrepreneurs. B. A service company that gift wraps gifts for people too busy to do it themselves is an example of a small business if it is privately owned and has only four employees. C. A small business offering a car repair service is like other service businesses in that it offers a higher return on time invested. D. The service industry attracts small business owners because it requires so few start-up resources. E. All of these choices

e

Which of the following statements are accurate about job specialization? A. Workers are more proficient. B. Equipment is more specialized. C. Training is simplified. D. Workers are more likely to be bored. E. All of these choices

e

A regional manufacturing operation has the following divisions: manufacturing, finance, human resources, marketing, and shipping/receiving. This is an example of ____ departmentalization. A. functional B. location C. product D. customer E. sequential

a

Kristen owns and operates a photography studio. She has no employees. She is a(n) A. small business owner. B. intrapreneur. C. venture capitalist. D. networker. E. leaseholder.

a

Research has shown that manufacturing costs often fall as the number of units produced by an organization increases. This relationship between cost and production is called A. economy of scale. B. the scalar principle. C. the equifinality principle D. synergy. E. the 80/20 principle.

a

Sara Blakely started Spanx after unsuccessfully searching for control undergarments that would not ride up while being worn. This is an example of A. identifying a niche. B. a company with a first-mover advantage. C. a distribution company. D. a new market identifier. E. a product assimilator.

a

Teachers at South Elementary School are allowed to pair up and teach a class twice as large as others. This allows the teachers to specialize in the subjects they most enjoy. The team teachers now share control over the classroom. The team teaching decreases A. autonomy. B. compensation. C. task significance. D. feedback. E. task identity.

a

Teachers at South Elementary School are allowed to pair up and teach a class twice as large as others. This allows the teachers to specialize in the subjects they most enjoy. This is an example of A. work teams. B. feedback. C. task significance. D. skill variety. E. task identity

a

The overall purpose of a business plan is to A. identify all actions required up to the point when the firm opens its doors. B. outline activities for the business in its first year of operation. C. provide prospective lenders with a blueprint for action. D. determine potential demand for the firm's product or service. E. determine the most appropriate form of ownership.

a

The text lists several questions that the business plan should answer for the entrepreneur who is planning to open a business. Which of the following is one of the questions? A. What does she or he want to accomplish? B. What financing is available? C. What is the demand for the product/service? D. What is the most effective production strategy? E. What does the competitive situation look like?

a

Which of the following is an example of a first-mover advantage? A. Orange County Choppers, builders of custom motorcycles, can exploit their own reality television show. B. The manufacturer of Blistex lip cream, a U.S.-made product, is introduced for the first time to consumers in Europe. C. Coca-Cola introduces its own brand of bottled water after the success of a number of other brands of water. D. Kroger supermarkets add a new line of cosmetics for teens to its shelves. E. Purina introduces a new package design for its dog food.

a

Which of the following statements describes a characteristic of job rotation? A. The jobs themselves remain the same. B. As a training device, it reduces flexibility and worker skills. C. The jobs involved are usually difficult and complex. D. It tends to significantly enhance employee motivation. E. It requires no additional training.

a

Which of the following statements describes an advantage of job specialization? A. Employees become experts. B. The development of equipment is facilitated. C. Managers can exercise greater control. D. Managers become experts. E. All of these choices

a

While watching her Dad cook bacon in the microwave, 10-year-old Abby Fleck asked, "Wouldn't it be less messy if you hung the bacon to cook?" After breakfast, she and her Dad went to the basement and created the Makin Bacon, a gadget for making bacon cooking less messy. Abby, her parents, and her grandparents own and operate a company that makes and sells Makin Bacon trays. Her first big customer was Armour Bacon, which purchased the gadget to sell as a premium on its packages of bacon. This is a small business that has contributed by its A. innovation and its importance to a big company. B. financial performance and impact on its external environment. C. innovation and its impact on the internal environment of Armour. D. job creation, innovation, and importance to big business as a whole. E. job creation and innovation.

a

Whole Foods has succeeded in bringing natural foods to mainstream retail. A small business entering the natural food retail market would have a(n) A. established market competitor. B. advantage due to size. C. niche market. D. price advantage. E. advantage in exporting.

a

Why should a new entrepreneur who has to be careful how she spends every penny join the National Federation of Independent Businesses (NFIB)? A. The organization offers excellent networking opportunities. B. The organization is the source of financial resources. C. The organization is full of venture capitalists. D. The organization provides generic promotional campaigns free of charge to new businesses. E. There is no good reason for wasting money on this organization.

a

____ can be used to balance with specialization. A. Job rotation B. Job enlargement C. Work team creation D. Job enrichment E. All of these choices

a

Although a pay increase would be useful when a change in job design is made, for which of the following would it be expected? A. Job enrichment B. Job enlargement C. Job rotation D. Creation of work teams E. Job specialization

b

Army officers use an expression "not in my lane," which derives from the basic marksmanship function of establishing firing lanes for who fires at which targets. The idea is to spread people over the whole area so you do not miss anything and to prevent everyone from firing at the same target. This is an example of A. delegation. B. job specialization. C. job rotation. D. job enrichment. E. job design.

b

Cadets at West Point spend time during the summer learning about the branches in the Army like aviation, infantry, ordnance, finance, etc. In their senior year the cadets select their branch based on this experience. The academy is using job ____ as a training technique. A. specialization B. rotation C. loading D. enlargement E. enrichment

b

Gymnastic athletes train for each event. During competition they compete on each of them in the all-around. They use job ____. A. specialization B. rotation C. delegation D. enlargement E. enrichment

b

If an entrepreneur were considering a new business, which of the following would be a DESIRABLE characteristic of the industry being considered? A. Several companies are engaged in highly competitive advertising, which indicates that the product is desirable. B. The new company will sell a newly patented invention that is not yet well known but is expected to dominate the market. C. Start-up costs are high, so only a few companies are in business. D. The new company will be able to sell only to selected buyers. E. Customers have substitute products from which to choose if the new company cannot produce the products as rapidly as needed.

b

In which of the following industries are small businesses typically poorer performers than large businesses? A. Construction B. Manufacturing C. Service D. Retailing E. Transportation

b

Invacare modified the wheelchair assembly process so that workers assemble the entire wheelchair rather than simply add one or two pieces as is normal on most assembly lines. This is an example of A. job enrichment. B. job enlargement. C. job rotation. D. quality circles. E. work teams.

b

Jay wants to start a new business. With which of the following methods of starting a new business will he pay a share of the income from the business in return for the use of such things as trademarks and business formulas? A. Venture capitalism B. Franchising C. Buying an existing business whose purchase price includes goodwill D. Starting a new business with loans from the SBA E. Industrial revenue sharing

b

Large businesses are more likely to succeed in the manufacturing industry than small businesses due to A. the principle of synergy. B. economies of scale. C. divesting. D. the need for minimal start-up resources. E. proven business plans.

b

Remote work areas give employees more control over their job. This is an example of A. job enlargement. B. job enrichment. C. work teams. D. job specialization. E. job rotation.

b

The job characteristics approach to job design is a specific method for taking into account both the work system and employee preferences. It is similar to the more general ____ approach. A. job rotation B. job enrichment C. job enlargement D. work teams E. job specialization

b

Webkinz was the first toy company to sell stuffed animals with codes for play on an Internet game site. It was a A. niche creator. B. company with a first-mover advantage. C. service business. D. Strategy imitator. E. product assimilator.

b

Which activity in developing a business plan is the most important? A. Choosing a business location B. Researching the market C. Choosing a product mix D. Developing a production plan E. Developing an organization chart

b

Which of the following describes an entrepreneur? A. Richard Ames, an investor in Red Raider, which is run by his two partners B. Chad Olsen, who hired a consulting firm to research his business idea and help him set up Help-Doc, which he now manages C. James Hill, who owns Midtown TV but works as a Motorola engineer D. Sidney Pell, who runs Midtown TV for its owner, James Hill E. None of these choices

b

Which of the following is NOT an alternative to job specialization? A. Job rotation B. Job delegation C. Job enrichment D. Job enlargement E. Work teams

b

Which of the following is NOT considered to be a distinctive competency for small business? A. Ability to move quickly to seize new opportunities B. Ability to achieve economies of scale C. Ability to identify new niches in established markets D. Ability to identify new markets E. Ability to exploit a first-mover advantage

b

Which of the following statements about recent trends in franchising is TRUE? A. Franchising grew rapidly but has leveled off at one-third of retail sales. B. Franchising is growing rapidly and is projected to account for half of all retail sales. C. Franchising grew rapidly until about 1975, but its percentage of retail sales is now on the decline. D. Franchising has not been a big factor in U.S. retail sales due to its high costs. E. Franchising has declined in popularity because of the high risk it involves.

b

Which of the following statements comparing small businesses to large businesses is FALSE? A. More new jobs are created by small than by large businesses. B. Large businesses show better financial performance than small businesses. C. Small businesses represent the majority of new businesses started each year. D. Small businesses can typically produce and deliver specialty products more efficiently than large businesses. E. Small businesses outnumber large businesses by nearly 100 to 1.

b

Which of the following statements describes specialization? A. Specialization always reduces the amount of available transfer time. B. With specialization, workers are more likely to be absent. C. Employee training is more costly. D. Individual dexterity will be decreased with specialization. E. Automation of production processes is more difficult with specialization.

b

Workers in a McDonald's are trained to cook, clean, fill drinks, take orders, and fill orders. During a shift they work each job for one hour. This is an example of job A. specialization. B. Rotation. C. delegation. D. enlargement. E. enrichment.

b

____, as an alternative to specialization, has the disadvantages of raising training costs, unions arguing for more pay for doing more tasks, and worker boredom setting in. A. Job enrichment B. Job enlargement C. Job rotation D. Work teams approach E. Job characteristics approach

b

Actors usually try to get a variety of parts throughout their careers in a variety of genres so that they do not get type case into only action, or comedy, etc. The actors want A. job specialization. B. job rotation. C. job enrichment. D. job enlargement. E. a narrow span of management.

c

Four general factors contribute to the failure rate of small businesses. Which of the following is NOT one of those factors? A. Insufficient capital B. Managerial incompetence or inexperience C. Low start-up costs D. Weak control systems E. Owner neglect

c

In terms of the number of new jobs formed each year, how does small business compare to big business? A. Small business creates more than 99 percent of the new jobs. B. Big business loses the most jobs each year. C. Small business was recently passed by big business in creating new jobs D. Business success creates jobs regardless of size. E. Big business is responsible for nearly all of the new jobs created.

c

In which of the following ventures would a small business operator be most effective? A. Construction B. Transportation C. Services D. Manufacturing E. Wholesale

c

The Hospital for Special Surgery is staffed with over 200 doctors. If a patient has a toe injury she goes to a foot and ankle specialist. Later if she injures her hand, she will see a different doctor. Each doctor has assistants based around the specialty. The HSS uses a ____ basis for departmentalization. A. functional B. location C. product D. customer E. sequential

c

When fire fighters go on a call they must focus on the task at hand. They know people's lives are counting on them. They have A. autonomy. B. feedback. C. task significance. D. skill variety. E. task identity.

c

Four general factors contribute to the success rate of small businesses. Which of the following is NOT one of those factors? A. Managerial competence B. Luck C. Hard work, drive, and dedication D. Empathy with customers 3 E. Careful analysis of market conditions

d

Jane's Candy Shack has ineffective advertising. Where should she go for help with a promotion program? A. Active Corps of Executives (ACE) B. National Federation of Independent Businesses (NFIB) C. Small Business Development Center (SBDC) D. Small Business Institute (SBI) E. Service Corps of Retired Executives (SCORE)

d

Job ____ refers to the degree to which the organization's overall task is broken down and divided into smaller component parts. A. delegation B. departmentalization C. organization D. specialization E. decentralization

d

Managers plan, control, organize, and lead. They need good people abilities as well as analytical abilities. A manager's job has A. autonomy. B. feedback. C. task significance. D. skill variety. E. task identity.

d

Michelle has a low growth-need. She would not like ____. A. job enrichment B. job enlargement C. job rotation D. job characteristics approach E. job specialization

d

One of the common complaints of special education teachers is that they are not allowed to teach because of all the paperwork they are required to fill out and keep current. They once only had to teach, but now they have so many other duties that they don't feel they are doing anything well. In this case, ____ did not produce satisfied workers. A. job specialization B. job rotation C. job enrichment D. job enlargement E. a narrow span of management

d

Sara Blakely developed the idea to make Spanx undergarments. She filed a patent and researched production. She now sells Spanx through department stores. She is an example of a(n) A. intrapreneur. B. leaseholder. C. venture capitalist. D. entrepreneur. E. franchisee.

d

Teresa Walsh and Bonnie Kelly started Silpada Designs, jewelry sold through home parties. They are best classified as A. intrapreneurs. B. franchisers. C. venture capitalists. D. entrepreneurs. E. franchisees.

d

Which of the following is NOT an example of an entrepreneur? A. Madeline runs a neighborhood lemonade stand by herself. B. Diane Molberg started By Request, a successful home bakery business that guarantees that any item it sells is no more than 24 hours old. C. Elmer Olsen created the successful Bayfield Apple Jam Company using a recipe from his wife and some investment capital. D. Cindy has a yard sale once a year. E. Donna Cook wanted to start a little home business 10 years ago; now she has a company that produces and markets more than 150 dry cooking mixes.

d

Which of these statements comparing large and small businesses is TRUE? A. Big businesses outnumber small businesses by a wide margin . B. Tax policies favor medium-sized businesses. C. Small businesses show consistently lower financial performance than big businesses. D. Business success creates jobs regardless of size. E. Small business formations are on the decline, but the rate for big businesses is increasing.

d

Why are some small business owners successful in the wholesaling industry? A. A wholesaling business does not require a large capital investment. B. Small businesses have access to more technology. C. Wholesaling businesses serve more customers than retail businesses. D. Small business owners are able to develop personal working relationships with their buyers. E. All of these choices

d

With job enrichment, workers can ____. This does not occur with job enlargement. A. periodically move from one job to another B. complete more of the same type of tasks C. experience enhanced pride because they excel at one narrow task D. find their authority and responsibility are increased E. take longer and more frequent breaks

d

____ are a group of small investors seeking to make profits on companies with rapid growth potential. A. Intrapreneurs B. Hierarchical allies C. Stakeholders D. Venture capitalists E. Bondholders

d

A small business A. is publicly owned. B. creates jobs faster than big businesses. C. has less than 100 employees. D. is easily discernible from a big business. E. has sales so small it cannot influence its environment.

e

After watching the royal wedding, Susan wants to start her own hat making company in the United States. To help her determine whether this is a good idea, she needs to find the answers to which of the following questions? A. Who are my customers, and where are they? B. Who are my competitors, and where are they? C. How can I differentiate my product from that of my competitors? D. In what quantities and at what price will my customers buy my service? E. All of these choices

e

An entrepreneur looking to enter the manufacturing industry is more likely to fail due to A. size of initial capital investment. B. economies of scale. C. labor requirements. D. market saturation. E. all of these choices.

e

Chris Johnson is a running back in the National Football League. He does not play other positions. NFL teams use A. job enlargement. B. job enrichment. C. job rotation. D. job characteristics approach. E. job specialization.

e

Jane's Candy Shack is in danger of failing. She needs some major consulting help but she has limited financial resources. She contacts the SBA. She will most likely get help from the A. Federal Trade Commission (FTC). B. Small Business Administration (SBA). C. Service Corps of Retired Executives (SCORE). D. Active Corps of Executives (ACE). E. Small Business Development Center (SBDC).

e

Organizing A. is the second basic managerial function; it follows planning and decision making. B. involves shaping the organization over time and is never truly finished. C. involves grouping activities and resources. D. can help the organization be flexible. E. All of these choices

e

Rose Marie's boss tells her what to do, not how to do it. Which of the following statements is TRUE? A. Rose Marie must have high growth-need strength. B. Rose Marie is apparently receiving much feedback from some source. C. The job must allow Rose Marie to use many of her skills. D. Rose Marie must view the job as important to the firm's successes. E. Rose Marie apparently has a high degree of autonomy in her job.

e

Service businesses are the fastest growing segment of small-business enterprises primarily because of A. low labor requirements. B. lack of owner commitment. C. favorable tax treatment. D. high market demand. E. size of initial capital investment required.

e

Some companies now have a chief ethics officer. They usually have a legal background and are responsible for whistle-blowing, ethics training, financial statements review, and investigations. This is an example of ____. A. decentralization B. job autonomy C. delegation D. job enrichment E. job specialization

e

The first step for the entrepreneur in planning his or her business is to A. forecast sales revenues. B. develop an organizational plan. C. choose a business location. D. develop an organizational chart. E. engage in self-analysis.

e

Which of the following statements describes an advantage of functional departmentalization? A. Organizational decision making is faster. B. Each department is staffed by experts. C. Functional managers can easily control activities within the department. D. Areas of responsibility are clearly defined. E. All of these choices

e

Which of the following statements explains why small businesses are generally more effective than large companies in specialty retailing? A. Large companies generally lack the specialists that are needed to make a retail store profitable. B. Specialty retail stores are generally located in small towns where large organizations tend not to compete. C. Specialty retailing requires a different organizational structure than is usually found in large companies. D. Innovative people leave the bureaucracy of big business to start their own firms. E. Specialty retailing relies on customization, which is not cost effective for large companies.

e

____ is defined as systematically moving employees from one job to another. A. Job enlargement B. Job enrichment C. Work teams D. Job specialization E. Job rotation

e