BUS211 Business Management - Final Exam Review

Market

A place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services.

Strategy

A plan for your company to succeed

Opportunities

A set of circumstances that makes it possible to do something

Planning

A strategy for a company to reach its goals

Global, local strategy

A strategy that a company develops to expand into the global market

Goals

An achievement that a company wants to accomplish, aim, milestone

Threats

An obstacle or barrier that comes from outside the organization that hinders it from growing (The economy, Competition)

e-commerce

Commercial transactions conducted electronically on the internet

______ refers to identity-based differences among and between two or more people that affect their lives as applicants, employees, and customers.

Diversity

Which of the following defines those markets in nondeveloped countries that present tremendous potential for multinationals?

Emerging Markets

Growth

Expanding the company's revenue and product line

Which term describes a foreign employee who moves to and works in another country for an extended period of time?

Expatriate

Businesses close down for many reasons. Which of the following is NOT a typical reason for a business failure?

Expenses were lower than the owner expected.

Compensation and benefits are the two elements that make up the total reward strategy used by organizations to attract, motivate, retain and engage employees.

False

Higher-potential employees, no matter what the level, often display the following competencies: business acumen, strategic thinking, leadership skills, people skills, learning agility, and technology skills.

False

T/F: A positive aspect of opening a small business is that it takes very little management skill because it is small.

False

T/F: In the past few years, the federal government has cut back burdensome government regulations and paperwork to the point that they are almost non-existent for small business owners.

False

Which term describes a collective of individuals who share the same demographic characteristics such as race, sex, or age?

Identity group

Control

Monitoring employees based on performance or what kind of control you have in the market share

Exporting

One country sells its products to other countries

Which of these refers to the increasing competition for recruiting?

Talent acquisition

Which of these refers to significant shifts in an organizational system that may cause significant disruption to some underlying aspect of the organization, its processes, or structures?

Transformational change

A plan includes decisions about when and how actions should be accomplished and what resources will be required to complete the actions.

True

Demographics includes facts about income, education levels, age groups, and the ethnic and racial composition of a population.

True

Planned change is an intentional activity or set of intentional activities that are designed to create movement toward a specific goal or end.

True

______ occurs when an employee or an applicant is treated unfairly at work or in the job hiring process due to an identity group, condition, or personal characteristic.

Workplace discrimination

A firm's internal environment contains elements that can impact the firm but are generally beyond its direct control.

false

A dysfunction in decision-making that occurs in homogeneous groups as a result of group pressures and group members' desire for conformity and consensus is called ____.

groupthink

Who provides the start-up financing for the majority of new small businesses?

the business owner and his or her family and friends

The major determinant of the most effective style of leadership will be:

the leader's personality

One way to ease the burden of managing a business is to hire an outside consultant. Which of the following is an example of an outside consultant that might be useful to a small interior design company?

A. a company to mail its brochures to building contractors within a 200 mile area B. an advertising company to design its ad in the local newspaper C. a certified public accountant to manage its money D. an attorney who is well-versed in small business law ->E. all of the above <-

Entrepreneurship

Accepting the risk of starting and running a business.

____ is a process in which the performance standard is based on another firm's superior performance.

Benchmarking

The worldwide phenomenon whereby the countries of the world are becoming more interconnected and where trade barriers are disappearing refers to

Globalization

The first step in starting your own business is a self-assessment. Inadequate early planning is often at the core of small business failures. 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?

Her interest in the history of Asian art

Which of these is perhaps the most common way of depicting the formal organization?

Organizational design

Importing

Other countries bring in goods

Tariffs

Tax

Firms in an industry may or may not compete directly against one another, as we'll discuss shortly, but they all face similar situations in terms of customer interests, supplier relations, and industry growth or decline.

True

Strong rivalry in an industry increases the profit potential for all firms because consumers have many firms from which to purchase products or services and can make at least part of their purchasing decisions based on prices.

True

T/F Because tariffs are usually passed along to the consumer in the form of higher prices, imposing tariffs on imported goods gives domestic companies a price advantage and protects them from foreign competition.

True

T/F Culture tells people who they are, which behaviors are appropriate, and which are not acceptable in any society.

True

T/F: A global strategy is based on the assumption that the world is extremely interconnected, and that patterns of consumption and production are fairly homogeneous worldwide.

True

T/F: The most common use of a business plan is to persuade lenders and investors to finance the venture.

True

Which term is commonly used to refer to ways in which organizations seek to ensure that members of diverse groups are valued and treated fairly within organizations in all areas including hiring, compensation, performance evaluation, and customer service activities?

Valuing diversity

"W" in the SWOT analysis stands for ______.

Weaknesses

In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an inappropriate question to ask?

What are you going to do with the down payment?

Maturity

When a company's product is doing well and becoming a "cash cow"

Which of the following is NOT one of the advantages of owning a small business?

avoidance of taxes

Complex

being very big

A _____ strategy is a strategy for a company to maintain its current income, market share, or geographic reach.

defensive

Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result, Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n):

entrepreneur

_____ financing is a form of financing consisting of funds raised through the sale of stock in a business.

equity

An essential ingredient for effective leadership is the exercise of:

power

The type of leadership most appropriate when major changes are needed in an organization would be:

transformational