Exam #2

Elevator pitch

A 60 second, upbeat speech

Franchise

A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area

Democratic leadership

A form of leadership in which the leader solicits input from subordinates.

SBA

A government agency that helps small businesses

Click all that apply: Which of the following are true regarding taxes according to the lecture on How to Start a Business?

A solid accounting system or a good bookkeeper is important for a sole proprietor Sole proprietors are responsible for paying self employment taxes

Tall organization

An organization in which the hierarchy has many levels relative to the size of the organization

Flat organization

An organization with few layers management

Which of the following is NOT a step in starting a business (as discussed in lecture?)

Apply to the SBA (small business administration) for the right to open a business

You watched a video on leadership with a "lone nut" creating a movement in 3 minutes. Which of the following was NOT a lesson from that video?

Be careful as a lone nut as you won't look very much like a leader

All corporations are public companies.

False

Entrepreneurial activities are not influenced by changes in the external environment.

False

Though the informal organization may be a force in an organization, it has no real power; so managers don't need to worry much about it.

False

Kirk McCoy is district sales manager for the Jimmy Dean division of Sara Lee Corp. He has six sales managers that report to him. McCoy makes most of the decisions for his people and demands that they check with him on any changes in pricing, sales scheduling and routing, and sales presentation material. McCoy operates a ______ department.

centralized

A(n) ________________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product.

entrepreneurial team

All of the following were part of the definition discussed in the lecture for chain of command (Mary Cassoni's definition) EXCEPT:

it's only important in the military and not so much in an organization

Stuart McFarland is sales manager for a hotel. His job entails leading, motivating, and communicating with employees. McFarland's main management activity is:

leadership

Autocratic leadership

leadership style that involves making managerial decisions without consulting others

Miniature Precision Corporation, a microprocessor manufacturer, recently acquired Cameron-Price, a plastics mold manufacturer. Miniature Precision financed the transaction with 90 percent borrowed money and used Cameron-Price's assets as collateral. This type of merger is commonly known as a(n):

leveraged buyout

LLC

limited liability company

According to what you learned about management and leadership in business, you could say that_______ strive to produce order and stability, whereas _______ embrace and manage change.

managers; leaders

In a _____________ organization, specialists from different parts of the organization are brought together to work on specific projects.

matrix

A(n) _________is similar to a marriage, joining two individuals as one family. An__________is one company's purchase of the property and obligations of another company. It is more like buying a house than entering a marriage.

merger; acquisition

Fayol's _____________ principle states that each worker should report to one, and only one, boss.

unity of command

What did you learn about available resources for entrepreneurs and small business owners through the SBA?

workshops to learn about business links to potential sources of capital a physical location where you could talk to mentors and coaches about small business

Which of the following best describes the difference between an intrapreneur and an entrepreneur?

Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business. Explanation: Intrapreneurs are creative people who work within a corporation to develop new products and generate new profits for the firm. Entrepreneurs start their own businesses, without any financial tie to a larger company.

All of the following are TRUE about empowerment EXCEPT:

Managers are usually happy to give up their decision-making power and often embrace empowerment.

__________ believed that employees simply needed to be told what to do. In addition, we can thank him for the concept of job descriptions.

Max Weber

__________ believed/believes that managers were trustworthy and companies would do well if employees simply did what they were told.

Max Weber

_____ managers are the managers concerned with implementing the plans and policies of top managers and supervising lower-level managers.

Middle

This graphic illustrates that all of the following are true in relation to skills sets at various levels of management

Moving among the various levels of management is usually only possible with an advanced degree.

Before selling stock to the public, a corporation must register with the:

Securities and Exchange Commission

Hawaiian-born 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. Which of the following federal agencies should Farmer contact if he needs management assistance?

Small Business Administration

A reseller's permit

Special permit, required by most states, that retailers must have to purchase goods tax-free from wholesalers and collect sales tax from end buyers.

Matrix style organization

Specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line-and-staff structure.

Dividing up the tasks (division of labor) is an important part of organizing.

True

Mass production and the industrial revolution created the need for organization.

True

Starting a sole proprietorship with all the right forms should cost less than $100.

True

You need a reseller's permit ONLY if you plan to sell taxable items.

True

You usually get a business license from the city hall where your business operates.

True

Sole proprietor

a business owned and controlled by one person

Mission statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment

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):

group norm: The standards used to determine whether a group member's actions are acceptable are called group norms.

Which of the following is NOT a reason why small business thrives in the United States?

guaranteed profits

The franchisor generally does NOT provide the franchisee with:

help in employee selection

One way to ease the burden of managing a business is to:

hire outside consultants

Angel investors

individuals who invest in start-up companies with high growth potential in exchange for a share of ownership

Carlos is the person to see in the welding department if you are a new employee. While he is not a manager, he is the person that most of the others in the department look to for advice, for what's REALLY going on, and a free cup of coffee! Carlos is an important member of the firm's:

informal organization Explanation: Although Carlos may have little authority in the formal organization, the respect others in the department have for him makes him an important part of the informal organization. The informal organization is the system of relationships that evolve spontaneously as employees meet and form power centers.

Which of the following elements does NOT typically appear in a well-prepared business plan?

names of all employees

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.

operational

A(n) ________________ is a visual device which shows relationships among people and divides the organization's work.

organization chart

Henri Fayol and Max Weber are best known for their contributions to:

organization theory

Henri Fayol and Max Weber are best known for their contributions to:

organization theory.

Spring Airlines is a start-up business in China. It uses the management function of ____ to arrange that the three airplanes it operates are where they are supposed to be when they are supposed to be and have the appropriate number of operating personnel.

organizing Explanation: Organizing is the process of arranging the structures and relationships of human and material resources to carry out an organization's plans.

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:

self-managed work teams

The form of business ownership that has the most difficulty in raising capital is the:

sole proprietorship

The quality control engineer at a petrochemical refinery is in a _____ position.

staff

An organization that consists of many layers of management is referred to as a(n) ____________ organization.

tall

Planning, organizing, leading and controlling refer to:

the 4 functions of management

One of the advantages of the matrix structure is:

the ability to balance conflicting objectives higher performance flexibility teamwork