Intro to business test 2 practice test 1

When your boss gives you a raise, he or she is using _____ power.

reward

_____ is the gap between what is and what is desired, and _____ is the gap between what is and what is required.

A want; a need

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.

Angel investors

Which of the following statements about the committee structure is true?

Committees can be slow to reach a decision.

Intrapreneurs:

are accurately described by all of the above

Self-managed work teams:

are accurately described by all of the above

The difference between the small business owner and the entrepreneur is that the entrepreneur:

assumes the risk of the business

As part of her marketing project, Lily Unruh is studying how Marriott operates. Since she thought it was simply a hotel chain, she was amazed to learn that its food divisions provide food for school cafeterias, airlines, hotels, and fast-food restaurants. Marriott's food divisions are departmentalized by:

customer

Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing.

debt

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. During the development of this high-growth company, Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with ______ financing.

equity

To be a high-performance team, a team:

is accurately described by all of these

Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to:

look for customers

Both Kennedy and LaGuardia Airports have established airport management committees. These structures are advantageous because it:

makes the coordination of activities much easier

The managerial hierarchy is also called the:

management pyramid

The typical problem-solving team:

meets on a regular basis to share information and discuss ways to improve processes

_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.

Debt

_____ is the process of dividing the work and assigning tasks to workers.

Division of labor

Theories X and Y management styles are the result of studies by:

Douglas McGregor

Which of the following is NOT a commonly used method for departmentalizing a firm?

by managerial level

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:

choose a form of business organization

Which of the following statements describes one the weaknesses of group decision making?

Group members may pressure others to conform to decrease the possibility of disagreement.

_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.

Management

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

Middle

_____ is something that prompts an individual to release his or her energy in a certain direction.

Motivation

_____ are entrepreneurs who start a series of companies

Multipreneurs

_____ provides the structure of people, positions, departments, and activities within which the company objectives can be accomplished.

Organizing

Wes Johnston overheard his manager say, "Work is as natural as play, and workers seek more job responsibility." This statement supports

Theory Y assumptions

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?

_____ is responsible for identifying the Theory Z style of management.

William Ouchi

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?

all of the above

Management involves:

all of the above

Spring Airlines is a small budget airline that is based in China. The company has a strict rule against passengers bringing any food or beverage on board with them. In a country where meal time is extremely important, this has caused some passengers to slap, throttle, and insult stewardesses who tried to enforce this rule. The tenacity with which the company's employees enforce this ruling is based on how the employees predict customers will react to the news. This is an application of the _____ theory.

expectancy

In Herzberg's theory, salary is an example of a(n):

hygiene factor

A _____ is a formal document that states an organization's purpose and reason for existing and describes its basic philosophy.

mission statement

According to Frederick Taylor's scientific management theory, the most important motivator in the workplace is

money

Gambrinus is a large company that owns and operates the breweries that produce Moosehead Lager, Bridgeport Ale, Pete's Wicked Ale, Corona beer, Trumer Pilsner, and Shiner Bock. Each brewery is run as an independent division and each produces a malt liquor that appeals to a different market. This is an example of departmentalization by:

product

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

names of all employees

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. Early in the development of this high-growth company, Arnold and Bradford attracted a group of investors who provided them with money needed to acquire other Internet companies with similar missions. The investment group is called:

angel investors

In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his employees. Siegel used a(n) _____ style to increase Lacoste's sales.

autocratic

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.

classic

A network of Bennetton retail sales agents select the Bennetton designs that they feel will appeal to Bennetton retail customers. The responsibility for picking the next "hot style" is in the hands of this group. This is an example of a _____ structure.

committee

The person who takes the risk of starting and managing a business to make a profit is called a(n):

entrepreneur

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

expert

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.

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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:

growth-oriented entrepreneur

Spring Airlines is a small budget airline that is based in China. Due to the unfamiliarity of this mode of transportation in China, Spring's employees are often attacked by unhappy customers who demand compensation for flight delays. According to Herzberg, these attacks by passengers would be an example of a _____ factor.

hygiene

A Theory X manager would assume his or her workers are:

lazy employees who can't be trusted

In 2005, BridgePort Brewing Company expanded sales of its BridgePort India Pale Ale, and BridgePort Black Strap Stout into Alabama, Georgia, Kansas, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee and Texas. These states will join BridgePort's current distribution markets of Alaska, Arizona, California, Colorado, Idaho, Montana, New Mexico, Oregon, and Washington. When the brewery allocated resources to increase its production and distribution, it would have relied on which of the following management functions?

organizing

In Herzberg's model, which of the following would be an example of a motivating factor?

responsibility

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.

A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.

committee

As a believer in the Theory Y style of management, Stacey Lovett believes in all of the following EXCEPT:

constant and close supervision

A clothing wholesaler that buys most of its inventory from manufacturers in the Caribbean should have a _____ plan in the event a hurricane demolishes the manufacturing facility of one of its principal suppliers.

contingency

Victorinox is the name of the company that manufactures Swiss army knives. As a result of new regulations governing what passengers could carry with them on airplane trips, the company has lost 30 percent of its business. In other companies, this might have led to business failure, but because Victorinox had _____ plans, it was able to continue to operate profitably.

contingency

A large furniture and appliance rental business is considering sponsorship options. It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers. The rental company has established a:

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:

cross-functional team

American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors. American Express uses _____ departmentalization.

customer

The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).

debt; equity

Work group cohesiveness can benefit the organization by doing all of the following EXCEPT:

decreased resistance to change

Lachlan Stuart is employed by International Paper, a company that values his vision and creativity. To stay ahead in a very competitive industry, International Paper gives Stuart, and his division has almost complete autonomy to develop innovative and effective communications. Stuart is an example of a(n):

intrapreneur

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.

leadership

The relatively consistent pattern of behavior that characterizes a leader is called his or her _____ style.

leadership

Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The ability of the Nortel top management to create this new division and assign employees to it is a result of their having _____ power.

legitimate

The _____ of the Booth Western Art Museum reads, "The Booth Western Art Museum will educate, entertain, and inspire a diverse audience by creating a place where people feel welcome, find meaning and value, and delight in exploring the uniqueness of Western American art and culture."

mission statement

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

norms

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

Bart Pietz works as a paramedic. Because he has just worked a plane crash and has been 20 hours without rest, he is extremely sleepy. Pietz needs to satisfy his _____ need.

physiological

According to Herzberg, hygiene factors are:

potential job dissatisfiers

Kohber is a Swiss-company that makes medical equipment. It recently purchased a company, which manufactures packaging for high-value drugs. Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:

product

Angel investors:

provide funding for start-up businesses

Which of the following is NOT an example of a hygiene factor?

recognition

An employee who was more worried about having a safe work environment and a financially sound pension plan than anything else would be most concerned with which of the needs in Maslow's hierarchy of needs?

safety needs

Many rock and roll fans believe that Jimi Hendrix was the best guitarist ever and that he stretched his ability to the utmost. According to Maslow's theory of need, Hendrix more than likely satisfied his _____ need.

self-actualization

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.

strategic

In Herzberg's model, which of the following would be an example of a hygiene factor?

supervision

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.

supervisory

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.

tactical

Safeway Stores has installed dashboard computers in their trucks to monitor the delivery truck drivers as they work their routes. Safeway is checking on drivers to make sure they are working. This mistrust of employees derives from trust in the veracity of:

the Theory X style of management

According to expectancy theory, the probability of an individual acting a particular way depends on the strength of the individual's belief that:

the act will have a particular outcome and on whether the individual values that outcome

A relatively small group of managers at the head of an organization that establishes overall strategy and long-range goals is called _____ management.

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