business final exam
coercive
Airline stewards in China will remove someone from the plane if they attempt to bring their own food with them. Instead, passengers must buy the food sold on the plane. The stewardesses have been given _____ power to deal with passengers who won't obey the rules.
makes the coordination of activities much easier
Both Kennedy and LaGuardia Airports have established airport management committees. These structures are advantageous because it:
micropreneur
When Suzanne Pogell wanted to learn to sail, but she could find no one to teach her because men were the ones who sailed, and women were their crew. She finally convinced someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship. Pogell started small and plans to stay small. She would be correctly called a(n):
owns and operates
An entrepreneur is a person who _____ a business.
mission
An organization's _____ is its general purpose or reason for existence.
business format franchise
Franchisee pays for the right to use the name, trademark, and business and production methods of the franchisor
merger
Two formerly independent business entities combine to form a new organization
nonverbal communication
does not use words; includes gestures, posture, facial expressions, tone of voice, and eye contact
communication
the transmission of information between a sender and a recipient
partnership
voluntary agreement between two or more co-owners of a business for profit
ambitious
which of the following is a characteristic of the entrepreneurial personality
the business owner and his family and friends
who provides the start-up financing for the majority of new small businesses
corporation
business is considered a legal entity that is separate and distinct from its owners
Franchise Disclosure Document (FDD)
description of all aspects of a franchise that the franchisor must provide to the franchise
intrapreneurs
Gord Larose and his friend David Allan worked in Ottawa at Nortel Networks, a giant telecommunications-equipment maker. One Friday afternoon, over a few beers in Larose's kitchen, they dreamed up a scheme for renting software over the Internet. Instead of quitting their jobs, they reported to work on Monday, explained their plan to their boss, and began working to make their idea a reality. Four years later, their idea has evolved into an important division of Nortel called Channelware. Larose and Allan are examples of:
group norm
Hugh Larrimore, Wilson Knight, and Frieda Perez have worked together for twelve years. They always clock in and clock out together. If one of the threesome happens to be late, the others will wait for him or her. This commonly accepted behavior for this informal group is called a(n):
strategic
Reader's Digest Association, Inc., has published Reader's Digest magazine for over 80 years, and many believe the publication is dated and can no longer attract many readers. They believe _____ plans are needed to revamp the magazine's content, editorial staff, and readership.
plan and schedule their own work activities, take responsibility for setting their own goals, work without any formal supervision, and are highly autonomous teams
Self-managed work teams:
managerial hierarchy
The ______ refers to the levels of management within the organization. These levels usually conform to the shape of a pyramid.
supervisory
The lowest level of management, which usually has the most people to manage, is called _____ management.
determines, groups, and assigns work activities
The management activity of organizing.
entrepreneur
The person who takes the risk of starting and managing a business to make a profit is called a(n):
leadership
The relatively consistent pattern of behavior that characterizes a leader is called his or her _____ style.
debt; equity
The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).
tactical
The world's largest bank, Deutsche Bank, set as its objective to make its brand name as recognizable in the United States as FedEx and Visa are over the next ten years. The implementation of this long-range plan would require _____ planning.
planning
The world's largest bank. Deutsche Bank set as its objective to make its name more recognizable in the United States. The success of its decision to sponsor a PGA golf tournament to accomplish this organizational objective will ultimately depend on which management function?
venture capital firms
companies that invest in start-up business with high growth potential in exchange for a share of ownership
limited partnership
includes at least one general partner who actively manages the company and accepts unlimited liability
angel investors
individuals who invest in start-up companies with high growth potential in exchange for a share of ownership
franchise
licensing agreement under which a franchisor allows franchisees to use its name, trademark, products, and business methods
passive voice
the subject does not do the action expressed by the verb, but the subject is acted upon
active voice
the subject of one's sentence performs the action expressed by the verb
divestiture
transfer of a total or partial ownership of some of a firm's operations to investors or another company
sole proprietorship
Single owner who manages the company
controlled
Hassan Nasrallah, the leader of Hizbullah: grew up very poor but very smart, and although he wears the robes of a minor Shiite cleric, he is a world-class politician. He has been called the most charismatic figure in the Muslim world. Nasrallah exerts _____ power over his followers.
leadership, planning, controlling, and organizing
Management involves:
distributorship
frachisor makes a product and licenses the francisees to sell it
active listening
occurs when a listener focuses his or her complete attention to the speaker
Angel investors
provide funding for start-up businesses
capitalistic adventurer
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):
an analysis of the market in which the company will operate, a management plan, a financial plan, and the elements of the company that make it unique
Andy Yocom was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group Inc. What should he include in his business plan?
supervisory
Dean Jager is in charge of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all of its volunteer staff efficiently. Jager is a _____ manager.
growth-oriented entrepreneur
In 2000, Eric Baker and Jeff Fluhr came up with a concept that would do away with scalping if they had their wish, and everyone used StubHub.com. The Internet company brings people who want tickets and people who have tickets that they are not using together. The company has assisted in the sale of tens of millions dollars worth of tickets annually and is always trying to sell more. It charges a small fee for its assistance. Baker and Fluhr would be classified as:
are there any problems with the business? Is the business operating at a profit? Will customers stay with the business? Why are you selling?
In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an appropriate question to ask?
coercive
Jack Welch, former CEO of General Electric, was known by his employees as "Bloody Jack" because of the downsizing and restructuring he insisted the company do if its various departments were unable to achieve organizational goals. Knowing this nickname, you can assume that Welch used _____ power to accomplish his goals for GE.
debt
Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _________ financing.
strategic
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. To achieve this goal, Manila Water's top management will first need to engage in _____ planning to determine what resources are needed to achieve this goal.
self-managed work teams
Many organizations that experienced success using problem-solving teams expanded the team concept to allow team members to have greater responsibility in making decisions, implementing solutions, and monitoring outcomes. These highly autonomous groups are called:
choose a form of business organization
Mark Ghermizian had quit his job and was looking to start a small business so he could be his own boss. When he read that people spend up to fifteen minutes every day staring at a bathroom stall door, he decided he would find advertisers who wanted to pay to have their advertising messages on bathroom stall doors. Since he has his idea, Ghermizian's next step is to:
reduced employee turnover
One of the advantages of work group cohesiveness is:
classic
When Art Baer read that Singapore would lift its ban on chewing gum, he thought to himself, "There has to be a market there." Baer, 26, knew if he was going to move beyond the daydreaming stage, he had to move fast. After investing $20,000 of his own money into developing a product he called Impress Gum, Baer quit his job, flew to Singapore, talked to the right people in the government, lined up a manufacturer, and hired a marketing firm to promote his gum, which fights tooth decay. Baer is an example of a(n) ______ entrepreneur.
reward
When your boss gives you a raise, he or she is using _____ power.
names of all employees
Which of the following elements does NOT typically appear in a well-prepared business plan?
influential
Which of the following is NOT one of the five key types of power?
aquisition
one firm buys another firm
institutional investor
organization that pools contributions from investors, clients, or depositors and uses these funds to buy stocks and other securities
business plan
A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out.
persuade lenders and investors to finance the venture
A common use of business plans is to:
commitee
A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.
cross-functional team
A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:
mission statement
According to the _____ of the New Mexico Nurses Association, the organization "is committed to advocating for all licensed nurses, promoting lifelong learning, and improving health care for all people."
debt
After graduating from college, Joseph Tantillo decided to start a retail Web site that specializes in personalized Greek apparel. To fund his Web site, he borrowed money from his parents (who expect to be repaid with interest). In other words, he used _____ financing.
general partnership
All partners take an active role in managing the business and have unlimited liability for claims against the firm
autocratic, participative, free rein
Among managers there are three distinctive leadership styles. They are:
operational
Dean Jager is the supervisor of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all its volunteer staff efficiently. Jager is involved in _____ planning.
entrepreneur
Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Retailing for about $5 apiece, the bottles are sold at gift shops in Hawaii, as well as to travel agents nationwide who give them to clients. As a(n) _____, Farmer's annual income exceeds $100,000 annually.
business plan
Kathy Elliot has decided that she will start an Internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliot's next step is to write a formal _____ before she applies for a business loan.
contingency
Management needs to be prepared to deal with problems and seize opportunities as they arise. A company often identifies alternative courses of action to be taken if events undercut a strategic or tactical plan. These are called _____ plans.
top
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. In terms of the managerial hierarchy, its president Antonino Aquino is in _____ management.
leadership
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. Its primary challenge will be the management function of ____ because it needs to convince the 2,000 employees it inherited from the government-owned facility to work more efficiently.
planning
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. The development, maintenance, and allocation of resources to achieve its goal will require:
expert
Medical diagnostic equipment specialist Georgiana Rutland was asked to attend a medical conference in which the attendees discussed new uses for laser technology in diagnosing certain types of cancer. Rutland exerted considerable influence over the decisions to adopt the laser technology because of her _____ power.
self confident, ambitious, visionary, and independent
Michael Bronner made a fortune in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. Entrepreneur Bonner would more than likely have which of the following characteristics?
multipreneur
Michael Bronner made a killing in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. The 40-year-old Bronner will more than likely start at least one more new company before he retires because Bonner is a(n):
equity
Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times music is played and shared among peers. Jain used _____ financing.
Limited Liability Company (LLC)
Offers limited liability to owners and flexible tax treatment
the ability to balance conflicting objectives, higher performance, and flexibility
One of the advantages of the matrix structure is:
organizing
One of the primary goals of Burberry, a British retailer, is to expand its market. When the company allocated resources so that it could open two stores in Japan, it was engaged in which management function?
supervisory
Pele Arnaz is a plant foreman for a generator manufacturer. He spends his day carrying out operational plans for the ongoing daily activities of the plant. Arnaz is a _____ manager.
matrix structure
Pharmacie & Upjohn, a pharmaceutical company, uses a functional structure (research, development, manufacturing, and marketing) within each of its three largest major product divisions. This company is an example of a:
classic
When he read Chicken Soup From the Soul, Joe Farmer was struck by how many of the stories mentioned the scent of the islands. So Farmer created bottles filled with Hawaiian air and some scented essence beads. When customers shake the bottles up and open the lids, they're transported back to paradise. While many marketing experts did not think that consumers would buy bottles of air, Farmer has earned more than half a million dollars of sale during his first year of operation. Farmer was an example of a _____ entrepreneur.
Committees can be slow to reach a decision.
Which of the following statements about the committee structure is true?
Intrapreneurs
_____ are entrepreneurs who apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own. They enjoy a high degree of autonomy while receiving a regular salary and financial backing from their employer.
multipreneurs
_____ are entrepreneurs who start a series of companies.
work groups
_____ are groups of employees who share resources and coordinate efforts so as to help members better perform their individual duties and responsibilities. The performance of this group can be evaluated by adding up the contributions of the individual group members.
Group cohesiveness
_____ could be used to explain why members of the night shift at a textile mill refuse to fill openings on the day shift even though most of the people who work at the plant feel day work is preferable to night work.
classic
_____ financing is a form of financing consisting of funds raised through the sale of stock in a business.
organizing
_____ involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals.
a matrix structure
_____ is a permanent organization structure that combines functional and product departmentalization.
specialization
_____ is the degree to which tasks are subdivided into smaller jobs.
organizing
_____ is the process of arranging the structures and relationships of human and material resources to carry out an organization's plans.
Departmentalization
_____ is the process of grouping jobs together so that similar or associated tasks and activities can be coordinated.
leadership
_____ is the process of guiding and motivating others toward the achievement of organizational goals.
management
_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.
middle
_____ managers are the managers concerned with implementing the plans and policies of top managers and supervising lower-level managers.
tactical
_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is less than one year long.
strategic
_____ planning is the creation of long-range, comprehensive objectives and the development of long-term courses of action.
organizing
_____ provides the structure of people, positions, departments, and activities within which the company objectives can be accomplished.
debt
________ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.
venture capital
________ is financing obtained from investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.