BUS EXAM #2

FALSE

TRUE OR FALSE: A small business is one that is dependent, is operated as a not-for-profit organization, and is not dominant in its field.

TRUE

TRUE OR FALSE: A typical planning horizon for many firms is one year.

TRUE

TRUE OR FALSE: An advantage for the franchisee is the opportunity to start a business with limited capital.

TRUE

TRUE OR FALSE: An advantage to the franchisor is that he or she gains fast and selective distribution of the product.

FALSE

TRUE OR FALSE: An analytical process combines raw materials or components to create a finished product.

FALSE

TRUE OR FALSE: Basic research consists of activities undertaken specifically to put new or existing knowledge to use in producing goods and services.

FALSE

TRUE OR FALSE: Because of their small size, small businesses affect the U.S Economy very little.

TRUE

TRUE OR FALSE: Franchising is the actual granting of a franchise.

TRUE

TRUE OR FALSE: Informational resources should include information generated outside an organization, such as by the economy, consumer markets, and technology.

FALSE

TRUE OR FALSE: Job specialization is the systematic shifting of employees from one job to another.

FALSE

TRUE OR FALSE: Middle-level managers are generally responsible for developing an organization's mission.

FALSE

TRUE OR FALSE: Most small and new organizations base departmentalization on customers.

FALSE

TRUE OR FALSE: Of the four main resources available to management, perhaps the most important is the organization's financial resources.

FALSE

TRUE OR FALSE: Of the three styles of leadership, the most effective is the participative style.

TRUE

TRUE OR FALSE: Planning is one vital element in the success of a small business.

TRUE

TRUE OR FALSE: Reducing production costs by selecting suppliers that offer higher-quality raw materials and components at reasonable prices is one way U.S firms are trying to become more competitive in the global market.

TRUE

TRUE OR FALSE: Scheduling involves both routing and timing of production activities.

TRUE

TRUE OR FALSE: Span of management and span of control are synonymous terms.

TRUE

TRUE OR FALSE: Span of management is the number of subordinates who will report to each manager.

TRUE

TRUE OR FALSE: Staff managers usually provide support, advice, and expertise to line managers.

holding costs and storage costs

inventory control is concerned about

the Small Business Administration

A government agency that was created to assist, counsel, and protect the interests of all business in the United States is called

SCORE

A group of retired businesspeople who volunteer their time to help small-business owners is known as

interpersonal

A manager performing the function son figurehead, liaison, or leader would be fulfilling a(n) _____________ role

synthetic process

A manufacturing process that combines raw materials or components to create a finished product is referred to as a(n)

small-business investment company

A privately owned company that provides venture capital to small firms is a(n)

accountability

A subordinate's obligation to accomplish an assigned job is called

product

A(n) ___________ line is a group of similar products that differ only in relatively minor characteristics.

flexible manufacturing

A(n) ____________ system combines robotics and computer-integrated manufacturing in a single production process.

boredom from repetition is eliminated

All of the following are reasons for job specialization except that

pretty impressive, with productivity increasing due to innovation and increased output per worker

Although the number of manufacturing jobs in the United States has declined, productivity is

All of the above

Businesses seem to cluster in which of the following industries?

Job rotation

Employees at a chemical factory are systematically moved every two weeks among three different departments in the organization. This is called

function

Grouping all jobs related tot he same organizational activity is departmentalization by

quality circles

Groups of employees who meet on company time to solve problems are

small-business institutes

Groups of senior and graduate students in business administration who provide management counseling are called

improve quality management

ISO 9000 standards help a firm to

DECISIONAL

If Mike Smith, a buyer for FORD, negotiates with a supplier on the price of a wheel, he is in a(n) ____________ role.

Adam Smith

In his book, The Wealth of Nations, _____________ emphasized the power of specialization.

the ability to influence others

Leadership is

developing personal relationships with customers and employees.

One advantage a small business has is

focus of the production

Operations managers often refer to the resource or resources that comprise the major or most important input as the

First-line

Part of Susan's responsibilities is to create a work schedule for her employees and to motivate them. What type of manager is she?

design

Product _________ is the development of a plan for converting a product idea into an actual product.

all of the above

Small businesses provide

objectives

Specific statements detailing what the organization intends to accomplish as it goes about its mission are known as its

General Motors

Steel, glass, and fiberglass would most likely be material resources for

TRUE

TRUE OR FALSE: Strategic planning is the process of establishing an organization's major goals and objectives and allocating the resources to achieve them.

FALSE

TRUE OR FALSE: The SBA is more likely to help non minority small businesses.

FALSE

TRUE OR FALSE: The U.S productivity growth rate has fallen in recent yeas.

FALSE

TRUE OR FALSE: The common leadership styles are authoritarian, democratic, and existential.

FALSE

TRUE OR FALSE: The degree to which resources are physically changed is referred to as the focus of a production process.

FALSE

TRUE OR FALSE: The majority of small businesses are found in the production industry.

TRUE

TRUE OR FALSE: The most fundamental type of goal in an organization is its mission.

TRUE

TRUE OR FALSE: The objective of purchasing is to ensure that required materials are available when they are needed in the proper amounts and at minimum cost.

TRUE

TRUE OR FALSE: The obligation of a worker to accomplish an assigned job or task is called accountability.

TRUE

TRUE OR FALSE: The primary reason for small-business failure is mismanagement resulting from lack of business know-how.

TRUE

TRUE OR FALSE: The step that distributes responsibility and authority within an organization is called delegation.

TRUE

TRUE OR FALSE: The type of person likely to start a small business is independent, has a desire to determine his or her own destiny, and is willing to find and accept a challenge.

TRUE

TRUE OR FALSE: There are fewer conflicts when the areas of responsibility for line managers and staff managers are clearly defined.

FALSE

TRUE OR FALSE: There seems to be a movement from variety in jobs to more specialization.

TRUE

TRUE OR FALSE: Today, the American economy is characterized as a service economy.

TRUE

TRUE OR FALSE: Understanding the technical side of things is an effective management aid at every level.

TRUE

TRUE OR FALSE: When a manager allocates resources between different departments, he or she is acting in a decisional role.

TRUE

TRUE OR FALSE: When a manager has many subordinates, a wide span of management exists.

TRUE

TRUE OR FALSE: When labor-intensive technology is used, people must do most of the work.

FALSE

TRUE OR FALSE: The administrative manager is charged with managing an organization's human resource program.

Material

Tangible, physical resources that a manufacturer uses in carrying out its business are known as what type of resource?

delegation

The act of distributing park of a manager's work and power to workers is called

Franchisor

The individual or firm that grants a franchise is known as the

chain of command

The line of authority extending from the top to the bottom of the organization is known as a(n)

the franchisee

The main disadvantage of franchising affects

franchisee

The person or firm that purchases a franchise is called a(n)

motivating

The process of providing reasons for people to work in organization's best interests is called

organization

Two or more people working together in a predetermined way to achieve common goals is known as a(n)

Usually moves from top to bottom

Under the autocratic leader, communication

decentralized

When authority is spread to lower-level management, a business is said to be

inventory

Which one of the following is not considered an area of specialization in management?

basic research

_______________ consists of activities aimed at uncovering new knowledge and scientific advancement.