Midterm Chapter 1-10
An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a(n)
leveraged buyout
Some people argue that small business failures are
lower than traditionally reported
Businesses that produce and sell tangible products such as steel and machines are part of the
manufacturing industry
The concept that a hierarchy of human needs could be used to explain motivation was developed by:
Abraham Maslow
A command economic system is characterized by
reliance on the government to determine what is produced and who gets the output.
To many businesspeople, one of the major attractions of a sole proprietorship is:
the chance to be their own boss
_____ uses computers to help design products.
CAD
____ is lowering the value of a nation's currency relative to other currencies.
Devaluation
____ means producing the desired result
Effectiveness
Which of the following represents the value of one nation's currency relative to the currencies of another country?
Exchange rate
The federal government created _____ to help small and medium-sized businesses get involved in exporting.
Export Assistance Centers
Which of the following statements best describes a firm's commitment to its customers?
Firms that offer real value will develop a competitive advantage and gain customer trust.
____ policy refers to the efforts of the federal government to keep the economy stable by increasing or decreasing taxes and/or government spending.
Fiscal
Firms often use a(n) _____ when working on a major project involving the production of a large item such as an airplane, ship or bridge.
fixed-position layout
____ is based on the notion that setting ambitious but attainable goals will improve motivation and performance if the goals are accepted, accompanied by feedback and facilitated by organizational conditions
Goal-setting theory
Which of the following is a characteristic of an effective ethics officer?
Has a capacity to serve as a counselor and an investigator.
According to equity theory, what are employees most likely to ask?
If I do a good job, will it be worth it? What is fair?
_____ attempts to increase task efficiency by breaking down jobs into simple steps and assigning people to each of those steps.
Job simplification
_____ believed that managers were trustworthy and companies would do well if employees simply did what they were told
Max Weber
_____ planning determines the major goals of an organization and lays the foundation for obtaining and using resources to achieve those goals.
Strategic
Which of the following describes someone who reports illegal or unethical behavior?
Whistleblower
A(n) ____ occurs when one company buys the property and obligations of another company.
acquisition
Two key management functions that need particular attention when starting a business are:
planning and financing
A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a:
business plan
The social and economic goals of _____ include private ownership of land and business.
capitalism
In a(n) ______ organization, decision-making authority is concentrated at the top level of management.
centralized
In recent years, progressive firms have embarked upon _____, where they will commit company resources and expertise toward helping out in emergency type situations.
corporate social initiatives
The span of control for a manager:
depends on a number of factors, and can vary from one manager to another.
A _____ is a severe recession that is usually accompanied by deflation.
depression
The goal of an intrapreneurs is to:
develop new products and generate new profits for the corporation.
Leaders
embrace change
Maslow would classify the need for recognition from others and for self respect as _________ needs.
esteem
_____ includes dealers, who buy products to sell others, and ultimate customers who buy products for their own personal use.
external customers
The purpose of the General Agreement on Tariffs and Trade (GATT) is to
facilitate global trade
A(n) _____ leader would set objectives and give employees a great deal of freedom to decide for themselves how to accomplish those objectives.
free-rein
The traditional technique used to tdepartmentalize an organization is by
function
Empowerment means
giving employees the authority to make decisions
Globalization
has greatly improved living standards around the world
An unfavorable balance of trade occurs when the value of
imports exceeds the value of exports.
The measure used to report price changes at the wholesale level is the:
producer price index (PPI)
Maintaining _________ involves producing what the customer wants while reducing errors before and after delivery to the customer
quality
In recent years, almost all new job creation in the United States has occurred in the ____________ sector.
service
_____ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels.
statistical process control
Staff positions in an organization
support and assist line positions
If a group of stockholders or management obtain all the stock of a previously publicly traded firm for themselves, this is referred to as:
taking the firm private
A major trend in business is _________, where employees work at least part-time at home using a computer.
telecommuting
One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on:
the value of what the business owns, what it earns, and what makes it unique
Determining what is involved for a firm to be socially responsible
varies even among those who are interested in corporate responsibility.
A _____ merger unites firms at different stages of related businesses.
vertical
Management is more progressive today. There is more emphasis on:
working in teams.