Chapter 4, 5, 6 Quizzes
Chandni owns a frozen yogurt shop. Due to fluctuations in seasonal demand, her business has struggled. If Chandni fails to repay her bank loan, what will the lending institution do to recover its loss? 1. claim and sell the collateral or mortgage 2. claim and rent out the business 3. claim and sell all the owner's personal property 4. sell stock in the business 5. take over the business and keep profits
1
Downsizing is an effective way to: 1. gain the advantages of small businesses 2. increase the management layers 3. increase organizational tasks 4. reduce entrepreneurial spirit among employees 5. gain employee trust
1
Fly High Drones, a corporation owned and managed by volunteers, delivers medical supplies to remote populations in Africa. Its focus is not on earning a surplus but on serving the community. Fly High Drones is an example of a: 1. nonprofit corporation 2. domestic corporation 3. quasi-public corporation 4. limited partnership 5. private corporation
1
Gerald is assessing the appropriateness of a proposed option to resolve his publishing company's plagiarism issue. When considering the consequences of the option, he should: 1. consider its impact on the organization as a whole 2. think narrowly about the one department most affected by the decision 3. choose the option that partially addresses the problem 4. limit the evaluation to objective procedures 5. disregard the practicality of the options available
1
In the context of a business's objectives, which of the following is an ineffective practice? 1. Isolating them from the business's mission 2. Keeping them elaborate or simple 3. Stating them in such a way that they are measurable 4. Using them to make tactical plans for the business 5. Using them to establish criteria to evaluate performance
1
Kiera, an entrepreneur, borrows money from a large bank to acquire Energy Solutions, a small oil and gas company. She promises to repay the bank using the assets of Energy Solutions as collateral. In this scenario, Kiera is involved in a: 1. leveraged buyout 2. horizontal merger 3. conglomerate merger 4. vertical merger 5. poison pill
1
Ollie manages a custom manufacturing company. He is concerned about accomplishing the work—producing custom components for customers—with the least cost and waste possible. His primary managerial concern is: 1. efficiency. 2. effectiveness. 3. delegation. 4. hiring. 5. expertise.
1
Production and operations managers are concerned with: 1. transforming resources into goods and services. 2. planning, pricing, and promoting products. 3. identifying and efficiently using sources of financing. 4. recruiting new employees and developing employee programs. 5. managing an entire market segment of a business.
1
?? plans, a type of plan for meeting objectives, establish the long range objectives and the overall course of action by which a firm fulfills its mission. 1. Functional 2. Strategic 3. Tactical 4. Operational 5. Static
2
Harold is developing a tech startup. He wants to develop a strong organizational culture, a good marketing plan, and a coherent business strategy in order to attract investors and customers. What is the foundation for developing these strengths? 1. an elaborate set of business goals 2. a mission statement that delivers a clear answer to the five basic questions 3. a plan for achieving success 4. a set of clear and measurable objectives 5. a target to be achieved
2
Rehana is responsible for the specific operations of the marketing department for her company. Rehana is a: 1. external auditor. 2. middle manager. 3. chief executive officer. 4. trade creditor. 5. top-level manager
2
Theresa used her personal savings to purchase the rights to own and operate a Sonic Drive-In rather than starting her own fast-food restaurant. She is most likely to be a(n) 1. category captain. 2. franchisee. 3. venture capitalist. 4. trade creditor. 5. intrapreneur.
2
What is the main supplier of external financing to small businesses? 1. friends 2. banks 3. venture capitalists 4. the small business administration 5. family members
2
When starting a new business, two friends decide to become business partners. Together, they create the legal documents that identify the basic agreements between themselves. These documents are called: 1. partnership charters 2. articles of partnership 3. articles of incorporation 4. articles of proprietorship 5. partnership bonds
2
Which of the following is a feature of democratic leadership? 1. monitoring employee actions very closely and in great detail 2. encouraging employees to discuss concerns and provide inputs 3. allowing employees complete autonomy to work on their own 4. making decisions and telling employees what must be done and in what manner 5. using economic rewards as sole means to motivate employees
2
When selecting the best option among a series of possible decisions, 1. it is always advisable to choose just one. 2. All options must be tried and tested simultaneously 3. it may be possible to use a combination of several options 4. quantitative and qualitative analysis are foolproof at all times 5. it is always possible to use an objective procedure
3
Eli's former coworker asks him to be a part of a new company that uses blockchain technology to improve inventory tracking systems. Since the business involves high risk, Eli does not want to be held completely liable for the firm's debts if the project fails. In this case, Eli is most likely to prefer to participate as: 1. a general partner 2. a member of a cooperative 3. a sole proprietor 4. a limited partner 5. an owner of an S corporation
4
Smart Speaker Plus and AI Assist, two virtual assistant companies, merged, reducing the number of corporations competing within the smart speaker industry. This merger is an example of: 1. conglomerate merger 2. shark repellent merger 3. leveraged buyout 4. horizontal merger 5. vertical merger
4
Which of the following is an advantage of a partnership? 1. proportional distribution of profits 2. unlimited liability 3. lack of business responsibility 4. few regulatory controls 5. unrestricted access to funds
4
Maria wants to run a UPS store franchise location. Which of the following is NOT one of the advantages of franchising Maria can expect? 1. brand-name appeal 2. national and local advertising programs 3. centralized buying power 4. proven products and business formats 5. complete freedom in business decisions
5
Ricardo is opening a small boutique catering to pet owners. To start his business, Ricardo needs at least $50,000 in initial financing to do all of the following EXCEPT: 1. Rent Space 2. buy the initial inventory 3. purchase or lease equipment 4. provide working capital 5. pay off any debts so they don't affect the business
5
Laini noticed that one of the sales divisions wasn't performing as well as the others so she called a meeting of the district managers to determine what the problem was and what could be done about it. Laini was performing the management function of controlling. T or F
True
Mailtopia, a package delivery company, purchases a competitor, Global Home Delivery, by buying most of its stock. This is called acquisition. T or F
True
Maria has overall responsibility for her organization and spends most of her time planning. She makes the organization's strategic decisions. She decides whether to add products, acquire companies, sell unprofitable business segments, and move into foreign markets. Maria is a top manager. T or F
True
Muhammad owns a flower business out of his home. He employs one person to help prepare flower arrangements, but Muhammad manages the business. All of the profits from the business goes to Muhammad and is taxed at an individual rate. His business is likely to be a sole proprietorship. T or F
True
All of the following are reasons organizing is important to except it: 1. improves competitiveness 2. eliminates synergy 3. establishes lines of authority 4. improves communication 5. helps avoid duplication of resources
2
A horizontal merger results when two firms in unrelated industries merge. T or F
False
The two kinds of stock issued by corporations are common stock and dividend stock. T or F
False
A limited partnership has at least one general partner, who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her investment in the business. T or F
True
Authentic leaders form long-term relationships with stakeholders. T or F
True
How long a time period do strategic plans generally cover? 1. Longer than five years 2. one to three months 3. six months to a year 4. three to six months 5. one year or longer
5
Wells Fargo agrees to grant Nikkita's small business a ???, which is an agreement by which a financial institution promises to lend a business a predetermined sum on demand. 1. trade credit 2. mutual fund 3. nonrecourse loan 4. trust fund 5. line of credit
5
Which of the following is one of the difficulties faced by small-business owners? 1. high cost of formation 2. limited scope for innovation 3. bureaucratic decision-making 4. inability to focus on specific groups of customers 5. worries about employee problems or competition
5
?? is best described as the result a firm wishes to achieve. 1. An Agenda 2. Protocol 3. A statute 4. A referendum 5. A goal
5
Social entrepreneurship is an economic model involving the sharing of underutilized resources. T or F
False
Hakim Goals for his story that included satisfying his customers while making enough money to open a second store. Which component of a goal did Hakim leave out? 1. Hakim Forgot to include a time frame in which the goal is to be achieved. 2. Hakim Didn't leave anything out. 3. Hakim Forgot to include what his stores purpose and basic philosophy are. 4. Hakim Forgot to include exactly how much profit he wanted to make. 5. Hakim Forgot to include the overall strategy or course of action he would use to fulfill his mission.
1
Email and social networks have made it possible for many proprietorships to develop in the services area. This speaks to which advantage of sole proprietorships? 1. unlimited liability 2. secrecy 3. ease and cost of formation 4. ease of closing the business 5. distribution and use of profits
3
Nirav, Samantha, and Nev want to incorporate their small skateboard business. To do so, they must file legal documents with the appropriate state office. What are these legal documents called? 1. corporate charters 2. corporate doctrines 3. articles of incorporation 4. corporation bylaws 5. articles of partnership
3
?? can be considered as both an advantage and a disadvantage of a sole proprietorship. 1. transparency 2. taxation 3. continuity 4. secrecy 5. liability
2
The first step in the decision making process is developing options to resolve a situation. T or F
False
Determining an organization's objectives and deciding how to accomplish them is which management function? 1. Crowd sourcing 2. Planning 3. Staffing 4. Nearshoring 5. Factoring
2
Many service providers are considered retailers because they: 1. require a high initial start-up cost. 2. employ only a small number of people. 3. provide their services directly to ultimate consumers. 4. focus on large market segments and institutional buyers. 5. sell their services from a single store location.
3
Seed Tech Co., an agrochemical company, and Sprout Technologies, a biotechnology company, combine to form a new company. What is this called? 1. white knight 2. shark repellent 3. merger 4. acquisition 5. tender offer
3
A declaration of an organization's fundamental purpose and basic philosophy is known as: 1. The target 2. An agenda 3. A referendum 4. The mission 5. Protocol
4
?? Make decisions about the use of an organization's resources are concerned with the planning organizing directing and controlling the organization's activities. 1. Creditors 2. Suppliers 3. Consumers 4. Shareholders 5. Managers
5
The first step in the decision-making process is developing options to resolve a situation. T or F
False
Ingrid works at a multinational shoe company that wants to function like a smaller company. Which of the following is something the company can do to achieve this goal? 1. the company can increase its corporate staff 2. the company can increase its management layers 3. the company can increase its work tasks 4. the company can make its operating units function more like independent small businesses. 5. the company can split each operating unit into a separate business
4
Jordan is a certified yoga instructor and nutrition coach. He started offering yoga lessons and nutrition workshops at his friend's businesses on the weekends. Based on the buzz created by his new business, several other local businesses want to hire Jordan. What is one area where he may struggle in managing his new business? 1. he may get stuck in a market niche 2. he may get fired by his boss 3. he may require a lot of money to start his business 4. he may lack the skills and experience to make good management decisions 5. he may lack the flexibility to adapt to changing market demands
4
Which of the following is an implication of technological advances to small businesses? 1. it reduces a small business's ability to adapt to changing trends and market demands 2. it reduces a small company's ability to customize its services and products 3. it increases the ratio of baby boomers as employees in small business 4. it provides new opportunities for small businesses to expand their operations abroad 5. it fails to make any significant changes as small businesses cannot afford to use sophisticated technology in their operations
4
All of the following are elements of creating a corporation except: 1. the procedure for chartering a corporation is the same in all states 2. a corporation's name must end in "company," "corporation," "incorporated," or "limited" to show that the owners have limited liability. 3. each state has a specific procedure for incorporating a business. 4. the new corporation's name cannot be similar to that of another business 5. most states require a minimum of three incorporators.
1
which of the following is a difference between strategic and tactical plans? 1. Strategic plans are short term, while tactical plans are long term 2. strategic plans are long term, while tactical plans are short term. 3. Strategic plans are narrow in scope, while tactical plans are broader 4. strategic plans cover a period of one year or less, while tactical plans cover a period of one year or more 5. strategic plans are easier to adjust or abandon than tactical plans
2
In the process of starting a business, the step that immediately follows the development of a business plan involves: 1. filing for tax returns for the business with the IRS 2. organizing resources like labor and supplies 3. deciding an appropriate legal form of business ownership 4. developing some general business ideas 5. promoting the business to the customers
3
Sebastian borrowed $75,000 from his stepmother to fund his new animation business. He said that she would be a partner in the business and would be entitled to a significant percentage of profits from the business. This is an example of: 1. bartering 2. franchising 3. equity financing 4. bootlegging 5. initial public offering
3
Eugene is an expert in genealogy. He runs an online business where he teaches people how to trace their family history through videoconferencing and workshops and provides digital tools for doing so. What must he first do to make sure this business will succeed? 1. He must convince the community to donate funds to help him start his genealogy business 2. he must find partners to help in fund his genealogy business 3. he must convince the community that genealogy is a worthwhile hobby 4. he must identify whether a genuine market niche exists for genealogy 5. he must find suppliers who are willing to take a chance on his genealogy business
4
Tactical plans usually cover a period of: 1. three years 2. one year or less 3. ten years 4. five years or more 5. one week or less
2
Ayana, Nia, and John decide to start a new law firm, so they draft articles of partnership. All of the following are items they should include except: 1. the business's name, purpose, and location 2. how much each partner is allowed to withdraw 3. the total money and assets of each partner's estate 4. the authority and responsibility of each partner 5. the duration of the agreement
3
Millennials represent a huge business opportunity in the US. Which of the following is a defining feature of Millennials? 1. this cohort consists of people born between 1946 and 1964 2. this cohort prefers face-to-face meetings over virtual communication 3. this cohort is solely concerned about money 4. this cohort is concerned with advancement, recognition, and improved capabilities 5. this cohort is opposed to working remotely
4
Which form of business is least used in the United States? 1. S corporations 2. C corporations 3. joint ventures 4. sole proprietorships 5. partnerships
5
Which of the following refers to the process of building relationships and sharing information with colleagues who can help a manager achieve the items on his or her agenda? 1. Benchmarking 2. Monitoring 3. Controlling 4. Directing 5. networking
5
An S corporation is taxed just like any other corporation. T or F
False
Jasmine runs a store that sells commercial kitchen equipment. She started the business with her own money and solely manages the day-to-day operations of the business. Which of the following is true in this scenario? 1. Jasmine can easily dissolve the business whenever she wants. 2. Jasmine's business will be constantly regulated by federal and state laws. 3. Jasmine's business will be subjected to double taxation 4. Jasmine will have to share her profits with stockholders 5. Jasmine must file articles of incorporation to start her business.
1
Whitney secures a license to use another's name in business and sell their products. This is called a: 1. collusion 2. mortgage 3. collateral 4. cartel 5. franchise
5
Aditi's company is currently organized into departments such as marketing and production. She wants to reorganize for greater efficiency. How would this company most likely organize the work? 1. around individuals 2. into teams 3. to other managers 4. around traditional departments 5. to independent consultants
2
Maria, Landon, and Kim meet quarterly to determine their organization's objectives and decide how to accomplish them. Together, they forecast events and identify various options to determine the best course of action. This is which management function? 1. staffing 2. planning 3. organizing 4. nearshoring 5. crowdsourcing
2
The right of owners of common stock to have the opportunity to purchase new shares of stock is called a: 1. first offer right 2. preemptive right 3. profit-sharing right 4. cooperative right 5. stock-split right
2
Which of the following statements is true about corporations? 1. many smaller firms typically elect to incorporate as C corporations. 2. they account for the majority of all US sales income 3. only mega-companies can incorporate 4. they can't sue or be sued in court 5. they can't enter into contracts with individuals
2
Julianne is a human resource (HR) manager for a marketing strategy firm. After conducting an internal survey, she discovered the majority of employees belong to Generation Z. In this scenario, which of the following HR strategies should Julianne implement in order to best serve the needs of the employees? 1. She should avoid giving regular, direct feedback to the employees. 2. She should use financial rewards to motivate the employees to improve their productivity. 3. She should create a fun, flexible work environment. 4. She should keep the training sessions highly formal and standardized. 5. She should restrict the employees from using work from home or telecommuting options.
3
Which of the following is an advantage of a corporation over a partnership? 1. setting up a corporation is easier, while setting up a partnership requires legal charters. 2. a corporation only pays taxes once, while a partnership is subject to double taxation 3. as a legal entity, a corporation can enter into contracts without as much difficulty as a partnership 4. a corporation has fewer regulatory controls than a partnership 5. a corporation does not need to send out quarterly financial statements, but a partnership does
3
Big Hawaii Resorts, a prominent hotel chain, hires a public relations firm, The Smith Agency, to create a plan to deal with a reputation crisis in the unlikely event of unethical or illegal conduct by a Big Hawaii Resort employee or affiliate. This is an example of: 1. enterprise resource planning. 2. supply chain management. 3. value chain management. 4. contingency planning. 5. materials requirement planning.
4
Expression, a national clothing chain, wants to promote its products and encourage online orders. What direct marketing activity can the store use? 1. It can open additional store locations. 2. It can send sales associates door to door to sell its clothing. 3. It can run an in-store sale. 4. It can send catalogs to its customers. 5. It can customize its clothing to meet specific customer needs.
4
Which of the following is a challenge associated with the sharing economy? 1. inability to set rates 2. higher cost of services through this model 3. lack of flexibility 4. pressure over whether workers are independent contractors 5. competition from established firms
4
In the context of corporations, what is a white knight? 1. an attempt to fend off a hostile takeover by selling stock at prices below the market value 2. a group of investors who have borrowed money to acquire a firm 3. an attempt to fend off a hostile takeover by raising capital through an initial public offering 4. an attempt to find off a hostile takeover by requiring the deal to be approved by a majority of shareholders 5. a more acceptable firm that is willing to acquire the firm threatened by a hostile takeover
5
Which type of stockholders usually has the right to vote and elect the board of directors? 1. a preferred stockholder 2. a capital stockholder 3. a proxy stockholder 4. a perpetual stockholder 5. a common stockholder
5
Technological advances and an increase in service exports have eliminated opportunities for small companies to expand their operations abroad. T or F
False
Archie checks his investment app and sees a corporation he invested in has distributed profits in the form of cash payments to stockholders. What is this cash payment called? 1. dividends 2. bonds 3. common stocks 4. preferred stocks 5. retained earnings
1
What is the first function of management? 1. Planning 2. crowdsourcing 3. directing 4. factoring 5. staffing
1
Marvin and Troy co-own a ski rental shop in Colorado for profit. This is an example of a: 1. partnership 2. c corporation 3. cooperative 4. quasi-public corporation 5. sole proprietorship
1
Computer World, a small business, sources microchips and keyboards from Technology with Integrity, Inc. Because the two businesses have a good relationship, Technology with Integrity, Inc. agrees to supply Computer World with the necessary goods from its next purchase order and pay for them at a later date. This is an example of: 1. mutual fund. 2. nonrecourse loan. 3. trade credit. 4. stock dividend. 5. trust fund.
3
Oban plans to open an African restaurant in his neighborhood. He will be solely responsible for the management of the restaurant. Which of the following problems is Oban likely to face while running the business? 1. his business will not be able to quickly adapt to changing market demands 2. he will find it difficult to make quick decisions 3. he may experience physical and psychological stress 4. his restaurant may not be able to focus on a specific group of customers 5. he will not have the flexibility to make critical decisions independently
3
Shun owns a karate studio. He conducts lessons for both children and adults and offers a self-defense class once a week. Shun can be regarded as a(n): 1. corporate employee 2. inventor 3. shareholder 4. entrepreneur 5. investor
4
Which of the following is a disadvantage of sole proprietorships? 1. sharing of profits with major stockholders 2. stringent government regulations 3. absence of a tax-exempt retirement account. 4. lack of business control 5. lack of continuity
5
Kevin is the president of an advertising firm. He has many years of varied experience and he spends most of his time making strategic decisions about how to use the company's resources. On which management function does he spend most of his time? 1. Staffing 2. Controlling 3. organizing 4. benchmarking 5. planning
5
Which of the following statements is true of taxation in partnerships? 1. they pay taxes before distributing profits 2. they report their share of profits as partnership incomes 3. they are exempted from tax 4. they are taxed based on the number of shareholders 5. they pay taxes at the income tax rate for individuals.
5
Robo Tron Tech is a robotics business that depends heavily on advanced scientific and engineering technology. Robo Tron Tech is a high technology business. T or F
True
dividing work into small units and assigning it to specific individuals is a task related to the management function of: 1. Organizing 2. Recruiting 3. Controlling 4. Evaluating 5. Staffing
1
?? are typically owned by many individuals and organizations who own shares of the business in the form of stocks. 1. limited partnerships 2. corporations 3. general partnerships 4. franchises 5. sole proprietorships
2
Adam is the CEO of a large oil and gas company. After severe losses, he met with other leaders at the company to discuss what to do next. His human resources manager suggested that the company should reduce its workforce to help the company cut costs and continue working on current projects. In this scenario, which of the following strategies is Adam's company planning to use? 1. crowdsourcing 2. downsizing 3. outsourcing 4. franchising 5. offshoring
2
Fatima and Joseph own and operate a dairy farm. They want to obtain a small-business loan after suffering from poor sales during the summer months, but their rural bank lacks assets sizable enough to counter the risks involved with small-business loans. Which of the following problems is his business facing? 1. competition 2. undercapitalization 3. bureaucracy 4. lack of product 5. overregulation
2
Shazia manages a butcher shop. Recently, the butcher shop has had trouble competing with national grocery store chains. Shazia wants to develop a list of possible courses of action to attract more customers, so she gathers her team. They discuss the issue and suggest ideas to solve the problem. This is called: 1. moderated discussion. 2. brainstorming. 3. groupthink. 4. crowdsourcing. 5. analyzing options.
2
A(n) ?? is a legal entity, created by the state, whose assets and liabilities are separate from its owners. 1. proprietorship 2. general partnership 3. corporation 4. unlimited partnership 5. strategic group
3
Eduardo owns a small specialty ice cream shop. When a chain ice cream store opened across the street from his business, Eduardo lowered his prices and added more unique flavors. His ability to make these decisions on the spot without anyone else's approval gave him a: 1. guaranteed profit 2. loyal customer base 3. competitive advantage 4. quick profit 5. trade secret
3
Gwendolyn manages a resort boutique. Her goal is to run this business in such a way that she achieves the desired result providing her customers with items they need to enjoy their vacation period thus her primary managerial concern is: 1. Efficiency 2. Standardization 3. Effectiveness 4. Innovation 5. Expertise
3
Mega Marketing is a large digital marketing company with partners that specialize in email, social media, advertising, and e-commerce. Since each partner specialized in a different area, customers would likely to: 1. view the service as lower quality than that provided by one person. 2. prefer to work with one person who has diverse skills 3. view the service as higher quality than that provided by one person 4. take their business to a sole proprietor, rather than this partnership. 5. question the qualifications of each partner.
3
Grow Farming Collective is an association of farmers from rural communities. The company does not aim to make profits but to help its members market their produce and purchase supplies at discounted prices. Thus, Grow Farming Collective is an example of a(n): 1. limited liability company 2. sole proprietorship 3. general partnership 4. cooperative 5. s corporation
4
Hakim wants his shaved ice business to satisfy its customers, so he develops a wide variety of popular flavors made with high-quality ingredients. What key component of a goal is this example most closely related to? 1. a target 2. a mission 3. an objective 4. an attribute 5. a time frame
4
Managers need adequate ?? resources to pay for essential activities. 1. Nonrenewable 2. Intangible 3. Human 4. Financial 5. Biological
4
Margo runs a video game arcade and bar for adults. In addition to being the owner, Margo serves as the manager, head bartender, bookkeeper, and custodian. She often worries about receiving deliveries on time and employee problems. Which of the following is the most applicable challenge Margo faces? 1. pricing mistakes 2. underestimating the time commitment for success 3. having poor business concepts 4. a high stress level 5. lack of funding
4
Which of the following statements is true about sole proprietorships? 1. sole proprietorships net far more sales and income than corporations 2. sole proprietorships are typically small businesses employing fewer than 100 people 3. most sole proprietorships have limited liability for their debts 4. most sole proprietorships focus on services rather than on manufacturing of goods 5. sole proprietorships are the least common form of business organization in the United States
4
?? are often the Small Business Administration's principal means of providing direct management assistance to small businesses and entrepreneurs. 1. Service Corps of Retired Executives 2. Local Chambers of Commerce 3. Small Business Institutes 4. Active Corps of Executives 5. Small Business Development Centers
5
Which of the following statements is true regarding the sources of funds available to a sole proprietor? 1. Sole proprietors cannot obtain funds from commercial banks. 2. Sole proprietors have access to many sources of funds 3. Sole proprietors pay lower interest rates on funds borrowed from banks than do large corporations 4. Sole proprietors can sell stocks and bonds to the public to raise money 5. Often, sole proprietors must pledge a car, a house, or other real estate, or other personal assets to guarantee a loan
5
Anna makes decisions about the use of her company's resources. She plans, organizes, leads, and controls the organization's activities so as to reach its objectives. Based on this information, Anna is a manager. T or F
True
Cameron, a certified yoga instructor, opens a small studio in her neighborhood after noticing a rise in the popularity of yoga. She charges $20 per class. Cameron is an example of an entrepreneur. T or F
True
Providing incentives to employees to motivate them toward achieving organizational objectives relates to the management function of: 1. Evaluating 2. Controlling 3. Benchmarking 4. Directing 5. Factoring
4
Adam is a senior product developer looking for a new job. He wants to work for a business that can introduce new products in a short period of time. Adam should work for a small business. T or F
True
Bonnie received a small inheritance, so she decided to use the money to open an ice cream parlor. When she began to have costly equipment issues, she quickly ran out of money. This is a case of undercapitalization. T or F
True
When Dr. Eicholz, a local veterinarian, retired, she sold her clinic to a young, new veterinarian. What is likely to be the greatest challenge to this new veterinarian will face initially in taking over the business? 1. assuring customers that the business will continue to meet their needs. 2. figuring out the best way to distribute profits 3. preventing the business from experiencing double taxation 4. fending off government regulation 5. replacing the outdated equipment with new equipment
1
Mandy owns a pest control company. Over the years, the market has changed, and Mandy has had to adapt how she structures the company's resources and activities to continue to accomplish her business objectives efficiently and effectively. What does this scenario demonstrate? 1. organizing only occurs once 2. organizing duplicates resources 3. organizing slows down decision making 4. organizing rarely occurs 5. organizing occurs continuously
5
A(n) ?? Like a calendar containing both specific and vague items that help a manager figure out what must be done and how to get it done to meet the objectives set by an organization. 1. Proforma invoice 2. balance sheet 3. executive summary 4. agenda 5. referendum
4
Wonhee is a talented graphic designer who starts her own graphic design firm, using her personal savings to start the company. Initially, she is able to find clients and complete projects successfully. However, as her business grows, she fails to make good decisions in hiring new employees, billing the clients, and negotiating prices. She eventually ends up liquidating the business. Which of the following causes of small-business failure does this scenario best illustrate? 1. debt factoring 2. debt financing 3. economies of scale 4. undercapitalization 5. managerial inexperience
5
which of the following question does the mission statement of an organization seek to answer? 1. How do we expand our business? 2. What are our staffing requirements? 3. Why are we not cost-effective? 4. How do we meet the annual sales target? 5. What business are we in?
5
Alan wants to operate a Dunkin' Donuts franchise. Because Alan is franchising, he will not have to operate under standardized operations. T or F
False
Morgan recognizes a need for high-quality children's wigs after working in a children's hospital. He creates a for-profit organization that sells hair accessories and uses profits to create custom wigs to donate. After hiring two dozen salespeople and accounting professionals, the business is ready to launch. Morgan is an example of a microentrepreneur. T or F
False
Top level managers make an organization strategic decisions that focus on a key idea for using resources in order to take advantage of opportunities. T or F
True
Jayden owns stock in a medical device company. He does not have any say in running the company but has a claim to profits before other types of stockholders. What type of stock does Jayden own? 1. ownership stock 2. preferred stock 3. common stock 4. restricted stock 5. dividend stock
2
Bookish Publishing is a public corporation. With the desire for flexibility to make decisions for restructuring Bookish Publishing's operations, its managers bought all the stock, thus: 1. converting it to a nonprofit 2. making it quasi-public 3. taking it private 4. making an initial public offering 5. shutting it down
3
Joaquin owns Let Them Eat Cake, an independently owned and operated bakery run out of a small commercial kitchen he rents. After six months of growing his business, he hires 12 employees. Let Them Eat Cake is best described as a 1. limited liability company. 2. conglomerate. 3. small business. 4. publicly owned business. 5. publicly traded company.
3
The form of business ownership that has the ability to raise capital most easily is a: 1. private corporation 2. sole proprietorship 3. joint venture 4. limited partnership 5. public corporation
5
Vroom Company, a carmaker, partners with The Glass Company on a one-time project to develop a new type of impenetrable glass. What type of partnership is this? 1. sole proprietorship 2. conglomerate 3. limited 4. joint venture 5. cooperative
4
Stephanie, a manager for an office supply company, divides work into small units and assigns it to specific individuals. This is a task related to the management function of: 1. evaluating. 2. controlling. 3. recruiting. 4. staffing. 5. organizing.
5
Proctor & Gamble is a large corporation. Proctor & Gamble's assets and liabilities are separate from its owners. T or F
True
Computech Computers, a private corporation, became a public corporation when it sold its stock to raise the money it required for the costs associated with international expansion. As a result, anyone could buy, sell, or trade the stocks of the company. This process of obtaining financing is referred to as: 1. initial public offering 2. factoring 3. franchising 4. angel investment 5. bartering
1
Which of the following demographic segments should both small retailers and small-service providers specializing in ethnic products target? 1. immigrants 2. drivers 3. baby boomers 4. Generation X 5. echo boomers
1
An accountant offers accounting services to an office supply firm in exchange for office supplies and equipment. Which of the following sources of funding does this scenario best illustrate? 1. equity financing 2. bartering 3. trade credit 4. line of credit 5. mortgaging
2
The following provides direction for all managerial decisions and establishes criteria for evaluating performance within organizations? 1. Objectives 2. Minutes 3. Protocols 4. Statutes 5. Referendums
1
Cedric is opening a high-end butcher shop. He is working on developing the company's business plan. Which of the following is something the business plan should accomplish? 1. permanently setting the business's goals and strategies 2. limiting the business's flexibility 3. establishing rules and regulations for how the business will be run 4. eliminating any future weaknesses of the business 5. estimating the business's income and expenses
5
Makayla and Tiana own a boutique downtown called Look at Me. They purchase personal care items, such as handmade bars of soap, and jewelry from local artists and wholesalers to then sell to their customers. Look at Me is a: 1. direct sales company 2. manufacturer 3. wholesaler 4. direct marketing company 5. retailer
5
Melanie is one of the senior managers in the consumer electronics department of a large company. She is part of a team that determines the objectives of the department based on future trends in the industry and decides how to accomplish them. Melanie is involved in the management function of: 1. Staffing 2. crowd sourcing 3. recruiting 4. factoring 5. planning
5
Vicente and Simon are entrepreneurs who want to start their own business. Which of the following would attract them to retailing? 1. there are no costs associated with opening a retail business 2. retailing doesn't require interacting directly with consumers 3. gaining experience in retail is a challenge, so they would have less competition 4. retailing limits a firm's need to focus on specific groups of consumers 5. retailing requires low initial financing.
5
Which of the following best illustrates a small business operating in a retail industry as opposed to wholesaling its products? 1. Ink & Iron, an apparel company, sells its merchandise to clothing retailers 2. Stick It manufactures unique stickers and sells them in bulk to office supply stores 3. Matthew bakes doughnuts and sells them to restaurants 4. Mother Chip manufactures computer parts that are resold by tech companies 5. Bubbles & Such imports soap and directly sells it to customers through kiosks
5
Marcia inherited a piece of land in a popular neighborhood. She sold the land and used the money to start a business. Which of the following sources has Marcia used to raise funds for the business? 1. venture capital 2. initial public offering 3. equity financing 4. angel investment 5. debt financing
3
All of the following are true of direct selling except: 1. it requires a large investment in inventory 2. those who do it have the opportunity to recruit other distributors 3. the cost of getting involved is low 4. it can be done part-time 5. those who do it receive commissions on sales
1
which of the following provides direction for all managerial decisions and establishes criteria for evaluating performance within organizations? 1. Objectives 2. Minutes 3. Protocols 4. Statutes 5. Referendums
1
Which of the following statements accurately describes intrapreneurs? 1. employees who become a part of a company's board of directors through internal promotions are referred to as intrapreneurs 2. individuals in large firms who take responsibility for the development of innovations within the organizations are intrapreneurs 3. Entrepreneurs who sell the rights to use their products to independent owners are intrapreneurs 4. independent investors who help a company raise capital through internal financing are intrapreneurs 5. entrepreneurs who are involved in international business are referred to as intrapreneurs
2
determining an organization's objectives and deciding how to accomplish them is which management function? 1. Crowd sourcing 2. Planning 3. Staffing 4. Nearshoring 5. Factoring
2
Retailing attracts entrepreneurs because gaining experience and exposure in retailing is relatively easy. T or F
True
Small-business owners tend to be victims of physical and psychological stress. T or F
True
Gayashan buys a candle business instead of starting his own from scratch. Once he assumes control of the business, he learns that there is a high volume of complaints that the company's distributor doesn't pack items with care, so items are often broken or damaged. What is Gayashan's responsibility in resolving this problem? 1. he is not responsible for problems that existed before he bought the company 2. he is responsible for taking on and resolving any problems the business already has 3. he can expect the customers and distributor to resolve the problem themselves 4. neither he nor the previous owner is responsible for resolving this problem 5. he can require the previous owner to resolve this problem
2
?? make decisions about the use of an organization's resources and are concerned with planning, organizing, directing, and controlling the organization's activities. 1. Creditors 2. Suppliers 3. Consumers 4. Shareholders 5. Managers
5
Ready Go Games is a large company that produces video game consoles. Ready Go Games has stock that anyone can buy, sell, or trade, but since it is a large company, its stockholders are far removed from its management. However, it must disclose its financial information to the public under specific laws that regulate the trade of stocks and other securities. What type of business is this? 1. limited partnership 2. public corporation 3. general partnership 4. domestic corporation 5. private corporation
2
which of the following statements is true of tactical plans? 1. They deal with potential disasters, such as product tampering, oil spills, fire, earthquake, or computer viruses 2. they allow a firm to react to changes in the environment 3. they specify what actions each individual needs to accomplish in a firm 4. they established the long range objectives of a firm 5. they help establish strategic plans
2
?? refer to the ability of an individual to think in abstract terms and to see how parts fit together to form the whole. 1. Social skills 2. human relations skills 3. technical skills 4. perceptual skills 5. conceptual skills
5
Annie wants to start her own small business. All of the following are things she needs to do before she starts her business EXCEPT: 1. make decisions about form of ownership 2. make decisions about financial resources needed 3. devise a strategy to guide planning and development in the business 4. have a general idea for the business 5. hire employees to work for the business
5
Bryan found the gluten-free product section at his local grocery stores to be lacking, so he opened a small boutique grocery store that exclusively sold gluten-free snacks, desserts, and other staples. Which advantage of small-business ownership is this scenario most closely related to? 1. reputation 2. independence 3. costs 4. flexibility 5. focus
5
Carlos and Jackson live and work in Colorado, but they frequently vacation in Los Angeles, staying at their second home. When they aren't visiting LA, they rent the property to other people for $100 per night. This is an example of: 1. retailing 2. direct selling 3. social entrepreneurship 4. a service business 5. the sharing economy
5
Trung and Dylan are business partners. Their company, Grow iO, develops pesticide-resistant seeds. They initially started the business with their savings. However, now the company plans to expand its operations, and the required amount of capital cannot be raised through savings or reinvesting profits. Thus, the partners have decided to sell stock in their business to family members, friends, and employees. Which of the following sources of capital have Trung and Dylan planned to use for the expansion of their business? 1. equity financing 2. bootstrapping 3. factoring 4. mortgaging 5. debt financing
1
Which of the following is a difference between limited liability companies (LLCs) and S corporations? 1. LLCs are very simple to run, whereas S corporations are not. 2. LLCs provide limited liability to owners, whereas S corporations do not. 3. LLCs require the members to hold meetings, whereas S corporations do not. 4. LLCs are found only in the United States, whereas S corporations are present worldwide. 5. LLCs are taxed as partnerships, whereas S corporations are taxed as corporations.
1
A corporate raider is trying to take over IRL Entertainment, a theme park company. In an attempt to avoid this hostile takeover, IRL Entertainment is requiring a large majority of stockholders to approve the takeover. Which of the following methods of evading a takeover attempt does this describe? 1. A class action 2. poison pill 3. a tender offer 4. a shark repellent 5. a compliance buyout
4
A(n) ?? It's like a calendar, containing both specific and vague items, that helps a manager figure out what must be done and how to get it done to meet the objectives set by an organization. 1. Proforma invoice 2. balance sheet 3. executive summary 4. agenda 5. referendum
4
All of the following are areas that can cause friction in a partnership except: 1. the fact that limited partners have no voice in the management of the business, but they may bear most of the risk. 2. a change in goals or objectives of one partner but not the other 3. the fact that the general partner reaps a larger share of the benefits 4. the diverse skills of the partners 5. when two business partners cannot resolve disputes
4
All of the following statements are true of the government regulation of sole proprietorships except: 1. sole proprietorships have the most freedom from government regulation 2. sole proprietors must obey employee and consumer protection regulations 3. sole proprietors must follow all laws, including federal, state, and local regulations, securities laws, and employee and consumer protection regulation 4. many government regulations apply only to businesses that have a certain number of employees 5. securities laws apply only to corporations that issue stock
3
Before an organization can plan a course of action, it must first: 1. take corrective action 2. allocate and organize the required resources 3. determine what it wants to achieve 4. develop a blueprint of the plan 5. decide on the people to be involved in the plan
3
Growth objectives essentially relate to; 1. building an organization's ability to promote diversity 2. focusing on profit as the sole indicator of growth 3. adapting and releasing new products in the market 4. coordinating and organizations resources smoothly 5. making the best use of an organization's resources
3
Misha applied for a loan from the bank for a new sporting goods store. The bank requires Misha to put up a financial interest in the property of the business to guarantee payment of the debt. What is this called? 1. venture capital 2. cash flow statement 3. collateral 4. business plan 5. trade credit
3
Taraneh wants to create a tutoring center for high school students. She develops a precise statement of the rationale for her business and a step-by-step explanation of how the business will achieve its goals. This is known as a(n) 1. promissory note. 2. business agreement. 3. business plan. 4. article of partnership. 5. article of incorporation.
3
Which of the following demographic segments should both small retailers and small-service providers specializing in ethnic products target? 1. drivers 2. echo boomers 3. immigrants 4. baby boomers 5. Generation X
3
a plan specifies all of the following except: 1. how the tasks should be completed 2. what should be done 3. why the tasks should be completed 4. who should complete the tasks 5. when the tasks should be completed
3
in businesses ?? include the president and other top executives such as the chief executive officer chief financial officer and chief operations officer who have overall responsibility for an organization. 1. middle managers 2. department heads 3. top managers 4. first line managers 5. boards of directors
3
?? are legal documents that the state issues to companies based on information the company provides in the articles of incorporation. 1. articles of partnership 2. articles of proprietorship 3. state bonds 4. corporate charters 5. corporation contracts
4
?? are very short term plans that specify what actions individuals, work groups, or departments need to accomplish in order to achieve an organization's tactical plan and, ultimately, the strategic plan. 1. Executive level plans 2. static plans 3. referendums 4. operational plans 5. protocols
4
Amity Engineering is chartered in Colorado but also does work in other states such as Tennessee, Illinois, and Vermont. In the other states Amity Engineering does business, it is known as a(n): 1. horizontal corporation 2. domestic corporation 3. vertical corporation 4. foreign corporation 5. alien corporation
4
Carlos is a manager at a Mens clothing store. he is very particular about how things are done, right down to how the shirts are folded and the positioning of the mannequins. He uses his authority and economic rewards to get his employees to comply with his directions. What type of manager is Carlos? 1. Democratic 2. free reign 3. participative 4. autocratic 5. authentic
4
Many service providers are considered retailers because they: 1. require a high initial start-up cost 2. focus on large market segments and institutional buyers 3. sell their services from a single store location 4. provide their services directly to ultimate customers 5. employ only a small number of people
4
Maren wants to open a third-party logistics firm. She has enough funds to start the business, but not enough to run it effectively. What is one thing she can do to provide working capital to her company? 1. He can work to find venture capitalists to support his business. 2. He can invest his profits into other businesses. 3. He can invest in the stock market. 4. He can refrain from drawing a full salary. 5. He can use his profits to pay his salary.
4
Outta This World Toys makes stuffed animals. Top management creates a strategic plan to introduce a new product category, children's smart electronics, within a period of five years. The company's middle management creates a series of three-month plans to ensure that the objectives of the strategic plan are properly implemented. Along with these plans, each department creates short-term plans that specify the actions to be taken by specific employees and teams to meet the objectives of the strategic plan and the three-month plans. The short-term plans established at the departmental level are referred to as: 1. contingency plans. 2. executive-level plans. 3. tactical plans. 4. operational plans. 5. static plans.
4
Shari owns stock in a company but is unable to attend the annual stockholders' meeting. She chooses to vote by ??, a written authorization that assigns a stockholder's voting privilege to another. 1. leveraged buyout 2. preemptive right 3. stock certificate 4. proxy 5. profit deed
4
The ?? style of leadership can be a powerful motivator because it demonstrates a great deal of trust and confidence in an employee and allows employees to meet their work demands with little or no interference. 1. totalitarian 2. repressive 3. autocratic 4. free-rein 5. authoritarian
4
Which of the following is a reason behind the failure of small businesses? 1. favorable tax reforms 2. high costs of start-up 3. managerial experience 4. poor business concept 5. overcapitalization
4
Which of the following is a reason it is difficult for sole proprietorships to hire qualified employees? 1. sole proprietorships prefer to spend their high profits on running the business rather than on hiring qualified employees. 2. many large corporations are downsizing and outsourcing tasks, so there are less well-trained employees available. 3. there is more room for advancement with in sole proprietorships. 4. it is difficult for sole proprietorships to match the wages and benefits offered by large corporations. 5. sole proprietors prefer to do all the work themselves, so they don't want to hire qualified employees.
4
Samar seeks advice from a former professor regarding his new candle business. The professor suggests he research equity financing as a source of funds for the business. Which of the following is a source of equity financing? 1. securing government loans 2. receiving trade credit from suppliers 3. borrowing money from friends 4. securing short term loans from a family member 5. selling personal assets to raise funds
5
Which of the following statements is true of joint ventures? 1. they are mostly formed to last forever 2. they restrict the number and types of shareholders in the organization 3. they are set up not to make profits but to provide service to the community 4. they enjoy reduced government regulations when compared to general partnerships 5. they are popular in situations that call for large investments
5
which of the following best describes the importance of monitoring the consequences of decisions? 1. Monitoring the consequences of decisions is the best immediate logical step after selecting the best option. 2. Monitoring the consequences always leads to redefining the decision situation from the beginning. 3. Monitoring the consequences of decisions is not important and it is expensive. 4. The consequences of decisions have to be monitored only when the desired results are achieved. 5. The consequences of decisions may not be apparent quickly enough to make changes without monitoring.
5
Kenta wants to start a business that is relatively easy and inexpensive to form. Because of the nature of his high-tech business, he also want the greatest degree of secrecy and the most freedom from government regulation. Kenta should choose a sole proprietorship as his form of business. T or F
True
One disadvantage of general partnerships is that the general partners have unlimited liability for the debts incurred. T or F
True
Planning involves forecasting events and determining the best course of action from a set of options or choices. T or F
True