MGMT 105 Final

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List at least three criteria a corporation must meet for the IRS to grant the business an S-corporation status.

* No more than 100 stockholders * Stockholders must be individuals, estates, or certain trusts * Only one class of outstanding stock * Must be a domestic corporation eligible to file for S-corporation status * The corporation has no nonresident, alien shareholders * All stockholders must agree to the decision to form an S-corporation

Which of the following scenarios would not be considered international business?

A bearing manufacturer in South Carolina sells its parts to a Toyota plant in Kentucky.

In your own words, explain the differences among a horizontal merger, a vertical merger, and a conglomerate merger.

A horizontal merger is a merger between "like" firms—firms that make and sell similar products or services in a similar manner and in similar markets. A vertical merger is between firms that operate at different but related levels in the production and marketing of a product. A conglomerate merger is between firms in completely different industries.

What is the difference between a joint venture and a syndicate?

A joint venture is an agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time. A syndicate is a temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital. Corporations and individuals may enter into a joint venture. Syndicates are primarily made up of corporations, none of which are willing to put up an entire amount required for an undertaking nor that are willing to share the risk of a venture individually.

How does an S-corporation differ from a limited-liability company? Does an LLC type of ownership appeal to you? Explain your answer.

A limited-liability corporation (LLC) is not restricted to 100 stockholders which is a limitation of an S-corporation. LLCs are also less restricted with more flexibility than S-corporations. Answers will vary, but most students will say that the LLC form of business organization appeals to them due to pass-through taxation and limited-liability protection.

What types of information should a partnership agreement contain?

A partnership agreement should generally include information about who will make the final decisions of the partnership, what each partner's duties will be, and the investment amount of each partner. It will also include how much profit or loss each partner receives or is responsible for and what happens if the partnership dissolves and one partner wants to exit the partnership or dies.

Inputs visit only selected locations Used for a large complex product where labor and materials are brought to it Used for a family of products Used for products that are routed depending on their need Used when large quantities of a single product are needed

A process layout A fixed-position layout A cellular layout A process layout A product layout

What is the difference between an absolute advantage and a comparative advantage?

Absolute advantage means having the ability to produce a specific product more efficiently than any other NATION. Whereas, comparative advantage means having the ability to produce one specific product better than another product.

One of your best employees has an undesirable habit of coming to work ten to twenty minutes late each morning. Write the advantages and disadvantages of using punishment to solve the problem.

Advantages: Complete discretion about what needs to be improved. Acts as negative reinforcement, so the employee could be motivated to show up on time to prevent more punishment. Disadvantages: The employee could lose motivation to perform well, or perform poorly out of spite from the punishment.

Which of the following levels of productivity represents the total level of productivity achieved by a country?

Aggregate

Which of the following is uncharacteristic of a socialist economy?

All capital and capital goods are privately owned.

What is an owner of a corporation called? What is the difference between a closed corporation and an open corporation?

An owner of a corporation is a stockholder. A closed corporation is a corporation whose stock is owned by relatively few people and is not sold to the general public. An open corporation is one whose stock can be bought and sold by any individual.

Which of the following is a TQM tool?

Benchmarking

Mattel, Inc. selects suppliers and obtains raw materials to make toys. The company is engaged in which function of marketing?

Buying

Historical records answer questions about cash flow problems Less uncertainty about sales and cash flow Established relationships with the community Responsible for building a customer base Can choose suppliers and employees without worrying about existing agreements Obtains ongoing access to advice from experts Provides a proven business plan More difficult to obtain information about projected revenues, cash flow

Buying an existing business Buying an existing business Buying an existing business Starting a business from scratch Starting a business from scratch Buying a franchise Buying a franchise Starting a business from scratch

Exquisite Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers. Dora is the CEO of the company. She feels that there is not enough specialization within the company and wants to organize the business in a different way. Dora thinks that the company would be more effective if it were to switch to a new way of organization. For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.Another issue that Dora wants to resolve is that of delegation. She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do. There are certain reasons that Dora has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.Refer to Exquisite Expressions. What type of departmentalization does Dora want to switch to?

By product

Kai promised to repair Krystal's car on Thursday. After picking up the necessary part at a junkyard, he discovered he could not do the job after all and that the junkyard would not buy back the part. Krystal does not know about these developments. However, she thinks Kai will be finished with her car sometime today. What should Kai do?

Call Krystal to inform her of the problem, and recommend a reputable repair shop.

_____ skills refer to a manager's abilities to both effectively convey ideas and information to others and effectively receive ideas and information from others.

Communication

____ is the ability to produce a specific product more efficiently than any other product.

Comparative advantage

What does the government encourage in order to protect the consumer's right to choose?

Competition

Liz Claiborne, Inc. has a system that combines the use of computers to aid in the development of products and the use of computers to plan and control manufacturing processes. What is this combined system called?

Computer-integrated manufacturing

Miranda recently switched careers. Previously, she was a college professor, but she felt she needed more real-world experience to help her business students more fully. She became a manager at Dazzle Magazine, where she was in charge of the layout. Always open to new ways of doing things, Miranda let her staff implement their ideas at times. Miranda learned firsthand the different roles she had to play as a manager.It always got stressful when the publication deadline neared. At one point, there was a major mix-up in the layouts for the front cover. Miranda was not sure of the correct layout because she had allowed one of her employees, Joseph, to modify and run with his idea on this matter. However, she could not ask for Joseph's help with the covers because he happened to be out of town at the time. Miranda quickly looked over the layouts but felt that they still needed some work.She decided to ask the design manager for her help. The design manager did not feel comfortable making a decision on the issue, so she did not give Miranda an answer. Miranda then went to an employee within her department for advice. That employee suggested some ideas, but Miranda was still not satisfied. Finally, Miranda called one of her top graduate students with whom she had kept in contact and asked her if she could offer some ideas. The graduate student quickly came to the magazine's office and helped Miranda decide on the alternative that should be implemented. Miranda greatly appreciated the assistance and the suggestion. The final cover design went to press, and that issue of the magazine was successful. This helped Miranda realize that considering the big picture was good, but equally important were the little details.Refer to Dazzle Magazine. As a manager, Miranda would have needed to apply all of the following skills except which one?

Conceptual

_____ skills refer to the abilities of managers to think in the abstract.

Conceptual

As a form of training and development, Jack attended a gathering where he listened to a speech from someone who was twenty years his senior and had been in the business for forty years. Jack was engaged in what form of training and development?

Conference and seminars

Miranda recently switched careers. Previously, she was a college professor, but she felt she needed more real-world experience to help her business students more fully. She became a manager at Dazzle Magazine, where she was in charge of the layout. Always open to new ways of doing things, Miranda let her staff implement their ideas at times. Miranda learned firsthand the different roles she had to play as a manager.It always got stressful when the publication deadline neared. At one point, there was a major mix-up in the layouts for the front cover. Miranda was not sure of the correct layout because she had allowed one of her employees, Joseph, to modify and run with his idea on this matter. However, she could not ask for Joseph's help with the covers because he happened to be out of town at the time. Miranda quickly looked over the layouts but felt that they still needed some work.She decided to ask the design manager for her help. The design manager did not feel comfortable making a decision on the issue, so she did not give Miranda an answer. Miranda then went to an employee within her department for advice. That employee suggested some ideas, but Miranda was still not satisfied. Finally, Miranda called one of her top graduate students with whom she had kept in contact and asked her if she could offer some ideas. The graduate student quickly came to the magazine's office and helped Miranda decide on the alternative that should be implemented. Miranda greatly appreciated the assistance and the suggestion. The final cover design went to press, and that issue of the magazine was successful. This helped Miranda realize that considering the big picture was good, but equally important were the little details.Refer to Dazzle Magazine. What type of manager was Miranda at Dazzle Magazine?

Consensus

Focuses on consequences of actions

Consequentialism

Carol has worked for Centrum Springs, Inc., for many years and has now been given the opportunity to advance in the company. Her manager is retiring and hopes that Carol will take over for him. However, even though Carol is an experienced employee, there are many things that she still needs to learn. Carol has trained many new employees, but she has never held a management position. Carol needs to have a general understanding of what it takes to be a manager.There are many problems in Carol's department. There are no plans to fall back on in case the initial plan fails. Carol also will need to learn how to direct people in such a way that makes them want to do more than they absolutely have to. Carol feels that this is a great opportunity, and she is anxious to learn everything to be a great manager. She knows that if she performs well in this position, she will have the opportunity to move up the corporate ladder.Refer to Centrum Springs, Inc. In the department where Carol works, what types of plans are lacking?

Contingency

Describe the three major pricing methods that firms employ.

Cost-based pricing - based on the cost of manufacturing, production, and distribution Demand-based pricing - based on the value perceived by consumers Competition-based pricing - based on the price of other competitors

_____ is the time needed by the organization to develop, make, and distribute products or services.

Cycle time

Cindy worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but it did not want to do things differently. When Cindy went home to talk to her husband, they both realized that, given her passion, it would be better for Cindy to open her own business. After a lot of consideration, she decided to open a sporting goods store called Your Wish, Inc. She also knew just where to open the store⎯right next to her house.To be certain to address all aspects of the business, Cindy hired a marketing research firm to determine the best location. Once all the research was compiled and analyzed, she realized that it would actually be better to open the store in a different area. She also realized that deciding where to locate the business was not the only major concern. More specifically, she would have to focus on the four elements of the marketing mix as well, creating a whole marketing plan. Her husband mentioned the possibility of using online information services to help with the business. With her husband's support and a good marketing plan, Cindy felt that she would be prepared to make the right decisions.Refer to Your Wish, Inc. If Cindy were to use information services available online, they would offer her access to which of the following?

Databases

Focuses on Duties

Deontology

Harold is an analyst with Big Company. His manager has asked him to estimate the number of multi-functional vacuum cleaners Big Company will sell during the last quarter of the current year based on doubling the current marketing efforts. Harold has asked the company executives what they think the likely sales will be, he has surveyed buyers and sales personnel, developed a time-series analysis, and done correlation analysis. Which of the following most accurately describes what Harold has been asked to do?

Develop a sales forecast

Which of the following indicates a customer orientation?

Developing products that fulfill customers' needs

What are some of the disadvantages of partnerships? Are the disadvantages enough to dissuade you from forming this type of business ownership?

Disadvantages of the partnership form of business ownership include unlimited liability—each general partner is responsible for the debts of all other general partners—and the likelihood of management disagreements among partners. Lack of continuity and the challenges of getting an investment out of a partnership are also disadvantages. For many individuals, the disadvantages of a partnership outweigh the advantages. Unlimited liability for a general partner is especially troubling for partners with substantial personal wealth. If, however, partners can complement one another's strengths and can multiply the capital and credit brought into the firm by having more than one owner, the advantages may outweigh the disadvantages.

Would personal income, disposable income, or discretionary income be of the greatest interest to marketers? Explain your answer.

Discretionary income would be of the greatest interest to marketers. Discretionary income is the "leftover" money that is used to pay for needs, such as food, shelter, etc. Since this is the most needed form of income, it is of the greatest interest.

John owns stock in ABC, Inc. Mary is an employee of ABC, Inc. D'Shawn uses the products sold by ABC, Inc. Pham and Alexis are on the board of directors of ABC, Inc. Winifred lives in a housing tract adjacent to the ABC, Inc. factory. Which of the following best describes the roles of these individuals as they relate to ABC, Inc.?

Each of these individuals is a stakeholder of ABC, Inc.

The federal agency charged with enforcing laws to protect the environment is the

Environmental Protection Agency.

A person must own stock in a corporation to be considered a stakeholder.

False

A small-business investment company (SBIC) is a government agency that provides venture capital to small enterprises.

False

A tax that is levied on a foreign product entering a country is called an export tariff.

False

An oligopoly is a market situation in which there is one producer and a few large buyers.

False

In our free-enterprise system, federal and state governments decide what products and services to provide.

False

Incinerating garbage and waste produces ash that is lower in concentration of toxicity than the original garbage.

False

Productivity is the total output per worker per year.

False

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce.

False

The largest percentage of environmental crimes are air-related.

False

The term stakeholders refers only to the people who have invested money in a business.

False

The total value of a nation's exports minus the total value of its imports is known as the balance of payments.

False

Which of the following is true of ISO 9000:2000?

Firms that want to meet these standards need to apply for certification.

Tiffany graduated from college and needed to decide where she wanted to work. She had several options. Her aunt Martha owned and operated a small business that she started about twenty years ago. Martha, an individual owner of her business, informed Tiffany that she could work for her. On one hand, Tiffany thought it would be a great opportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retires. On the other hand, she also felt that she wanted something a little more challenging; a job where she could really use her education. Her other option would be to work for a company that a friend and her husband had started and jointly owned. It was a rapidly growing company with plenty of opportunity for advancement. However, Tiffany had some reservations about this choice because she was not sure she wanted to work for friends. Her last option was to work for a large retail company, headquartered in Maryland, which had stores across the United States.After much consideration, Tiffany decided she didn't want an opportunity and a job because someone knew her. She wanted to prove how motivated and hardworking she was. Once she weighed all the advantages and disadvantages of her different options, she decided to work for the large retail company so that she could gain the most experience for herself.Refer to Tiffany's Dilemma. If Tiffany worked for the large retail company in Pennsylvania, what type of corporation would that be?

Foreign

Identify and discuss three types of pricing associated with business products.

Geographic pricing - The location of the buyer influences the price of the product, like oil and gas. Transfer pricing - The price one unit of a business charges another unit of the same company Discounting - determines the present value of the payment

Zach is an environmentalist with very strong beliefs about who should pay for environmental cleanup. What is most likely to be Zach's view?

He feels environmental costs are a part of doing business, which should be paid by businesses and in turn by higher prices for consumers.

Gehrig is the office manager of a business with 20 employees. He gives the employees their work, attempts to organize them into work teams, provides their employee reviews every quarter, and addresses their personal issues as they relate to the business. Wayne is an employee in Gehrig's department. Wayne knows every employee by name. He organizes parties for the staff, collects gifts for families going through difficult times such as illness of a family member, arranges people to take care of personal responsibilities for an employee who is having a baby, and sends flowers to the new parents on behalf of the office. When he asks people to help, they do so willingly. What is Wayne's position in the organization?

He is the leader of an informal group in this organization.

Fredrick's manufacturing business is finding it difficult to compete with a business that is comparable in size and makes a similar product. He has increased the number of his salesmen to contact potential clients, has a bank that gives him a better interest rate on his line of credit, and utilizes the benefits of day-light-savings time to adjust the lighting in the plant, but these actions seem to be inefficient to make his business competitive. With the facts given, which of the following would be most helpful in improving productivity at his business?

He should utilize lean manufacturing.

Carol has worked for Centrum Springs, Inc., for many years and has now been given the opportunity to advance in the company. Her manager is retiring and hopes that Carol will take over for him. However, even though Carol is an experienced employee, there are many things that she still needs to learn. Carol has trained many new employees, but she has never held a management position. Carol needs to have a general understanding of what it takes to be a manager.There are many problems in Carol's department. There are no plans to fall back on in case the initial plan fails. Carol also will need to learn how to direct people in such a way that makes them want to do more than they absolutely have to. Carol feels that this is a great opportunity, and she is anxious to learn everything to be a great manager. She knows that if she performs well in this position, she will have the opportunity to move up the corporate ladder.Refer to Centrum Springs, Inc. Carol's usual duties represent which of these areas?

Human resources management

What are the major phases involved in the new product development process?

Idea generation Idea Screening Concept testing Business analysis Product development Test marketing Commercialization

What does it mean when someone says that a corporation is an artificial person created by law? In your answer, describe some things that an artificial person and a real person like you could both do.

In an 1819 Supreme Court decision, Chief Justice John Marshall spoke of a corporation as "an artificial person, invisible, intangible, and existing only in contemplation of the law." The corporation is an artificial person created by the law and includes most of the following rights: * The right to start and operate a business * The right to buy or sell property * The right to borrow money * The right to sue or be sued * The right to enter into binding contracts

Explain how the basic economic questions are answered in capitalistic and command economies.

In command economies, the government decides what is being produced, how they are being produced, and who is producing/who is receiving the products. In capitalistic economies, individuals decided these factors.

One well-known corporate raider of restaurant companies visits several of the company's establishments, thoroughly reviews their menus, visually surveys the customers at the establishment, orders food and times how long it takes to arrive, then buys up controlling shares of stock in the company. Once he has a controlling interest in the company, he reduces the menu offerings, eliminating dishes that require long preparation time due to complicated recipes or multiple ingredients, eliminates menu items that require a long time to plate due to side dishes, and streamlines the operations. When the company's stock raises due to increased profitability, he sells his stock at a profit. When the corporate raider eliminates menu items, what is his goal?

Increasing production capacity

Exquisite Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers. Dora is the CEO of the company. She feels that there is not enough specialization within the company and wants to organize the business in a different way. Dora thinks that the company would be more effective if it were to switch to a new way of organization. For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.Another issue that Dora wants to resolve is that of delegation. She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do. There are certain reasons that Dora has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.Refer to Exquisite Expressions. What would be an alternative to specialization if negative consequences were to develop at Exquisite Expressions?

Job rotation

Which of the following is not a type of team?

Job-share team

Describe the array of advantages of a corporation.

Limited liability - limits each owner's financial liability (won't lose more than he/she put in) Ease of raising capital - corporations can sell stock, thus raising capital and earning a profit Ease of transfer of ownership - Sale of stock makes ownership much easier than a partnership Perpetual life - the business does not die when the owners die, which relates to ease of transfer of ownership Specialized management - Corporations are more attractive to job seekers, therefore they are able to hire people with specific skills to meet their job needs Limited liability is an important advantage of the corporate form of business organization. Limited liability is a feature of corporate ownership that limits each owner's financial liability to the amount of money that he or she has paid for the corporation's stock. Also, the greater ease of raising capital, the ease of transfer of ownership, perpetual life of the corporation, and the ability to include specialized management in the organization are all advantages of the corporate form of business ownership.

Jan runs a garment jobbing business. Her employees sew together fabric that has been cut to be assembled into garments. She has studied how many garments her employees produce per hour and has determined that the average worker produces ten garments per hour. Maggie also has a garment jobbing business. Her business produces garments that are quite similar to those made by Jan's business. Maggie's workers can sew 12 garments per hour. Which of the following is true about these businesses?

Maggie's business has greater productivity than Jan's business.

Which of the following is one of the factors responsible for the failure of a small business?

Managerial inexperience

Use Maslow's hierarchy of needs concept to explain why you would expect to be more concerned about finding somewhere to stay after your house burned down than you would be about receiving a certificate of appreciation from the non-profit for which you volunteer.

Maslow recognizes physiological needs as the most important. Therefore, seeking shelter would be a higher priority than a certificate of appreciation, which falls under esteem needs.

Daisy and Arlie are Star Wars fans. They were talking about the Clone Wars after a business class recently and debating whether the clones were mass produced through an analytical process or synthetic process. Daisy was confused about what mass production is. Which of the following best represents the definition of mass production?

Mass production is a manufacturing process that lowers the cost required to produce a large number of identical or similar products over a long period of time.

How would you go about incorporating a business?

Most experts recommend that a lawyer be used in the incorporation process. The first steps include choosing the state of incorporation and then developing and submitting the articles of incorporation to the secretary of that state or designated official. Also, stockholders' rights need to be decided. The last step includes organizing a meeting to adopt corporate by-laws and elect the first board of directors.

In the context of SWOT analysis, which of the following would be considered as an organization's strength?

Motivated employees

Which of the following represents the highest level of involvement in international business?

Multinational firm

Bart was asked to join a team with Mark, Lukusz, Mithais, and Johan to resolve a product delivery issue their company was having. Bart decided right away that he did not like Lukusz because he was loud and had a weird sense of humor that Bart didn't understand. Because Mark seemed to be friends with Lukusz, Bart avoided him. After the team had been together for about a week, they had a loud argument that resulted in the members expressing the pros and cons they saw with working with each of the other members. Bart discovered that he was not liked because he refused to take a stand and say what he meant. After the argument, the group unofficially made Johan leader because he was even-tempered and they all respected him. With the appointment of Johan as leader, the group began working in earnest on the problem because they finally understood what their roles were on the team. At what point in the team formation process was the team at the end of this scenario?

Norming

A year ago, Carl went to work for B&G, Inc. He has worked for the finance department ever since he started. He noticed that the corporation was only taxed as though it were a partnership. This was something that he found very odd when he first started working for the company, but he later realized it was a fairly common practice. He recognized that this was one of the advantages of this type of corporation.While the job was challenging, Carl was not happy. He wanted to work for a company whose main goal was to provide service to the community, not to make a profit. However, Carl felt that, considering his present financial situation, he had to continue working for B&G, Inc. A week later, Carl discovered there was going to be a merger between B&G, Inc. and one of its major competitors. Carl's boss informed him that he would be getting a promotion and a raise. While he was excited about making more money, he still was not happy. He knew then that he would not be working for the company for long.Refer to B&G, Inc. What type of organization was Carl considering switching to?

Not-for-profit corporation

Harry is a businessperson who works for a successful and admired Fortune 500 company. About how often is Harry likely to encounter ethical issues in the workplace?

On a daily basis

Tiffany graduated from college and needed to decide where she wanted to work. She had several options. Her aunt Martha owned and operated a small business that she started about twenty years ago. Martha, an individual owner of her business, informed Tiffany that she could work for her. On one hand, Tiffany thought it would be a great opportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retires. On the other hand, she also felt that she wanted something a little more challenging; a job where she could really use her education. Her other option would be to work for a company that a friend and her husband had started and jointly owned. It was a rapidly growing company with plenty of opportunity for advancement. However, Tiffany had some reservations about this choice because she was not sure she wanted to work for friends. Her last option was to work for a large retail company, headquartered in Maryland, which had stores across the United States.After much consideration, Tiffany decided she didn't want an opportunity and a job because someone knew her. She wanted to prove how motivated and hardworking she was. Once she weighed all the advantages and disadvantages of her different options, she decided to work for the large retail company so that she could gain the most experience for herself.Refer to Tiffany's Dilemma. What type of company does Tiffany's friend operate?

Partnership

Princess and Eternal have an idea for a business that will deliver meals to homes. Customers would place meal orders from one of 10 local restaurants and pay for the meal and delivery online. Once the meal order is placed, Princess and Eternal would be notified of the order and address of the customer. They would pick it up at the restaurant and deliver it to the customer's business or residence. They formerly lived in a community with this service and know it will work if set-up properly. What is the first thing they must do to have a successful business?

Plan

Cindy worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but it did not want to do things differently. When Cindy went home to talk to her husband, they both realized that, given her passion, it would be better for Cindy to open her own business. After a lot of consideration, she decided to open a sporting goods store called Your Wish, Inc. She also knew just where to open the store⎯right next to her house.To be certain to address all aspects of the business, Cindy hired a marketing research firm to determine the best location. Once all the research was compiled and analyzed, she realized that it would actually be better to open the store in a different area. She also realized that deciding where to locate the business was not the only major concern. More specifically, she would have to focus on the four elements of the marketing mix as well, creating a whole marketing plan. Her husband mentioned the possibility of using online information services to help with the business. With her husband's support and a good marketing plan, Cindy felt that she would be prepared to make the right decisions.Refer to Your Wish, Inc. Cindy thought about focusing on the four elements of the marketing mix. Which of the following is one of those elements?

Price

_____ is an economic measure of efficiency that summarizes the value of outputs relative to the value of the inputs used to create them.

Productivity

What is profit and why is it important to a business?

Ratios are division, profit = revenue - expenses

Which of the following is an example of Herzberg's motivation factors?

Responsibility

S-corporation

Dr. Pace told you to remember a specific name. It was on his list of "favorites".

Scooby Doo

Miranda recently switched careers. Previously, she was a college professor, but she felt she needed more real-world experience to help her business students more fully. She became a manager at Dazzle Magazine, where she was in charge of the layout. Always open to new ways of doing things, Miranda let her staff implement their ideas at times. Miranda learned firsthand the different roles she had to play as a manager.It always got stressful when the publication deadline neared. At one point, there was a major mix-up in the layouts for the front cover. Miranda was not sure of the correct layout because she had allowed one of her employees, Joseph, to modify and run with his idea on this matter. However, she could not ask for Joseph's help with the covers because he happened to be out of town at the time. Miranda quickly looked over the layouts but felt that they still needed some work.She decided to ask the design manager for her help. The design manager did not feel comfortable making a decision on the issue, so she did not give Miranda an answer. Miranda then went to an employee within her department for advice. That employee suggested some ideas, but Miranda was still not satisfied. Finally, Miranda called one of her top graduate students with whom she had kept in contact and asked her if she could offer some ideas. The graduate student quickly came to the magazine's office and helped Miranda decide on the alternative that should be implemented. Miranda greatly appreciated the assistance and the suggestion. The final cover design went to press, and that issue of the magazine was successful. This helped Miranda realize that considering the big picture was good, but equally important were the little details.Refer to Dazzle Magazine. The graduate student's assistance represents which step of the decision-making process?

Select alternative

William and Carrie go to the local Farmer's Market every Saturday morning. The market attracts many consumers and has many vegetable stands, many flower stalls, many artisan craft stalls selling handmade soaps and scented oils, and many stalls selling yard ornaments. All of the sellers within a sales category (vegetables, flowers, artisan crafts, and ornaments) sell their goods for essentially the same price, with little variation. Carrie comments to William that the vegetable stands enjoy perfect competition. What factors did she take into consideration when making this comment?

She is considering that there are many buyers and sellers of a product and no single buyer or seller is powerful enough to affect the price of that product.

Implementing _____ requires making corrections until errors virtually disappear.

Six Sigma

By establishing Ronald McDonald Houses, temporary lodging for individuals with seriously ill family members, McDonald's has committed itself to more than just shareholder wealth maximization. The corporation's active role in improving societal conditions suggests that it is responsive to which of the following arguments?

Social responsibility promotes environmental stability and long-run profitability.

Tiffany graduated from college and needed to decide where she wanted to work. She had several options. Her aunt Martha owned and operated a small business that she started about twenty years ago. Martha, an individual owner of her business, informed Tiffany that she could work for her. On one hand, Tiffany thought it would be a great opportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retires. On the other hand, she also felt that she wanted something a little more challenging; a job where she could really use her education. Her other option would be to work for a company that a friend and her husband had started and jointly owned. It was a rapidly growing company with plenty of opportunity for advancement. However, Tiffany had some reservations about this choice because she was not sure she wanted to work for friends. Her last option was to work for a large retail company, headquartered in Maryland, which had stores across the United States.After much consideration, Tiffany decided she didn't want an opportunity and a job because someone knew her. She wanted to prove how motivated and hardworking she was. Once she weighed all the advantages and disadvantages of her different options, she decided to work for the large retail company so that she could gain the most experience for herself.Refer to Tiffany's Dilemma. Based on the information provided, what type of business does Tiffany's aunt operate?

Sole proprietorship

Frumpy Enterprises is considering redesigning its gray offices and changing its name to give it a more up-beat and modern appearance and synergy. Because there are numerous problems and costs associated with instituting such changes, what kind of committee should the management appoint to study the issues and report back to them?

Task force

Who are the members of NAFTA?

The United States, Canada, and Mexico

Which of the following is true about incinerating garbage?

The ash resulting from incineration often has a higher concentration of toxicity than the original garbage.

Exquisite Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers. Dora is the CEO of the company. She feels that there is not enough specialization within the company and wants to organize the business in a different way. Dora thinks that the company would be more effective if it were to switch to a new way of organization. For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.Another issue that Dora wants to resolve is that of delegation. She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do. There are certain reasons that Dora has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.Refer to Exquisite Expressions. What could be a possible reason for Dora not wanting to delegate work?

The employee was unreliable.

Is McDonald's "golden arches" symbol a brand name or a brand mark? Define each term, and state how they differ.

The golden arches are a brand mark. Brand name - how the brand chooses to be called (i.e. "McDonald's") Brand mark - how the brand chooses to be identified/recognized (i.e. the golden arches) Basically, a name vs. a symbol/logo

What are the primary responsibilities of the board of directors? What do corporate officers manage?

The major responsibilities of the board of directors are to set company goals and develop general plans (or strategies) for meeting those goals of the corporation. The board of directors is responsible for the firm's overall operation as well as appointing corporate officers. The corporate officers help the board to make plans, carry out the plans, hire employees, and manage day-to-day activities.

A new country is formed in central Africa. It has no absolute advantage in crude oil, diamonds, or wool. However, it does manufacture high-quality bows and arrows for specialized safari adventures. Which of the following statements is true?

The new country has a comparative advantage in the production of bows and arrows.

If the demand for a product declines, what happens to the price of the product?

The price decreases.

Manna's Coffee Eun-Sang is a highly respected person within her community. She is Asian in a largely Caucasian-populated area. Since Eun-Sang was looking for a new job, she went to a new company in the area called Manna's Coffee, where she applied for a position. After the interview, Eun-Sang felt confident that she would be hired because of her qualifications. However, she did not get a call back. Initially, Eun did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend. The company had hired an inexperienced Caucasian male with a history of unemployment. At this point, Eun-Sang was quite aggravated, but she left the issue alone.She ended up asking an associate for an espresso machine. The employee informed Eun-Sang where the machine was located and retrieved it for her. Eun-Sang asked if there were any other espresso machines of higher quality. When the associate said no, Eun-Sang purchased the item and left. After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her. Eun-Sang asked where they had purchased it, and they responded, "Manna's Coffee."Refer to Manna's Coffee. Which basic consumer right was infringed when Eun-Sang bought the espresso machine?

The right to choose

Explain the six basic rights of consumers.

The right to safety - products must not harm consumers, safe for the intended use. The right to be informed - consumers must have complete information about the product to make an informed decision. The right to choose - consumers must have choices of a product; options to fit their needs The right to be heard - a business will listen to a consumer and solve complaints. The right to consumer education - consumers are able to be fully informed of rights. The right to courteous service - manufacturers and sellers shall give consumers effective, respectful services.

Why is a sole proprietorship the most flexible type of business?

The sole proprietorship form of business ownership is the simplest type of ownership as well as the easiest to start. It is flexible because an owner can make decisions without having to consult anyone else. By comparison, a manager in a store in a large corporate chain may have to seek the approval of numerous managers and company officials before making a decision.

James' first year as parts manager for a local dealership was pretty rocky. To ensure that his subordinates would follow through on established goals, he warned them about losing their jobs. James' managerial attitude reflects assumptions underlying

Theory X.

Taiwanese manufacturers are dumping toys in Germany. What will happen to German toy manufacturers if the German government allows this dumping to continue?

They will be put out of business because they cannot compete with the prices.

Xavier and Yvette are discussing starting a business that will take little start-up capital but, nonetheless, meets the needs of customers. They have reviewed a variety of economic and business publications and found one type of business seems to fit their capital requirements. This type of business employs 86 percent of the nation's workforce. What type of business will they open?

They will open a service business.

Tina is a real estate broker who has been asked to sell a property by a client. The property is exactly what she has wanted for herself. She knows the seller is unaware of the value of the property and is relying on her to make the best decision. She knows if she markets it aggressively, she can get several thousand dollars more for the property than the seller is asking. Tina talks to her son and asks him to buy the property in his name, with her funds, and to transfer the property to her after the transaction is completed. She contacts her client and tells him she has a buyer ready who is offering to purchase the property for a thousand dollars over the listing price. The seller agrees to the sale unaware of the other issues involved. As it relates to the topic of this chapter, which of the following best describes Tina's actions?

Tina has knowingly engaged in a conflict of interest.

Describe trading companies. What is an important function of trading companies?

Trading companies act as the middle man to connect buyers and sellers in different countries. They perform the necessary actions that move a product from one country to another.

Don's Limousines Raymond & Sons & Daughters, General Contractors NuState Savings and Loan Hommok Food Distributers, seller of food to grocery stores WaterWorld, indoor water park EverGreen Lawn Care FarmFresh, makers of salsa and sauces

Transportation Construction Finance & Insurance Wholesaling Service Service Manufacturing

Explain what is meant by the Acronym TIMWOOD.

Transportation Inventory Motion Waiting Over Production Over Processing Defects It describes the seven wastes that lean manufacturing aims to eliminate/improve to increase efficiency.

A businessperson can take some comfort when faced with an ethical dilemma by talking openly about it with management because ethical decisions will always withstand scrutiny.

True

A draft is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

True

A general partner is responsible for any debts of the partnership, regardless of whether he or she was directly involved in the transaction that created the debt.

True

Absolute advantage is the ability to produce a specific product more efficiently than any other nation.

True

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

True

Businesspeople often face ethical issues every day, and some of these issues can be difficult to assess.

True

Deflation is a general decrease in the level of prices.

True

If a firm's sales revenue exceeds its expenses, the firm has earned a profit.

True

If the owner of a sole proprietorship retires or dies, the owner's heirs may take over the business and either sell it or continue to operate it.

True

In a socialist economy, the key industries are owned and controlled by the government.

True

Macroeconomists often study the effect of taxes, government spending, interest rates, and similar factors on a nation's economy.

True

No federal law forbids age discrimination against people younger than 40.

True

OPEC is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

True

One of the consequences of trade restrictions is misallocation of international resources.

True

SCORE is a group of retired and active businesspeople who volunteer their services to small businesses through the SBA.

True

The services that government provides would not be produced by private business firms or would be produced only for those who could afford them.

True

The ultimate goal of every business firm should be to satisfy the needs of its customers.

True

Unlimited liability holds a sole proprietor personally responsible for all the debts of the business.

True

Andrew opened a fast-food restaurant on the corner of First and Main Streets in a small town. He named the restaurant The Hamburger Place. He offered one type of hamburger (a juicy homemade hamburger), for which he designed a marketing mix for the entire hamburger-eater market in town. What approach did he use in choosing a target market?

Undifferentiated

Tiffany graduated from college and needed to decide where she wanted to work. She had several options. Her aunt Martha owned and operated a small business that she started about twenty years ago. Martha, an individual owner of her business, informed Tiffany that she could work for her. On one hand, Tiffany thought it would be a great opportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retires. On the other hand, she also felt that she wanted something a little more challenging; a job where she could really use her education. Her other option would be to work for a company that a friend and her husband had started and jointly owned. It was a rapidly growing company with plenty of opportunity for advancement. However, Tiffany had some reservations about this choice because she was not sure she wanted to work for friends. Her last option was to work for a large retail company, headquartered in Maryland, which had stores across the United States.After much consideration, Tiffany decided she didn't want an opportunity and a job because someone knew her. She wanted to prove how motivated and hardworking she was. Once she weighed all the advantages and disadvantages of her different options, she decided to work for the large retail company so that she could gain the most experience for herself.Refer to Tiffany's Dilemma. What would not be an advantage of Tiffany's aunt's business?

Unlimited liability

Why is the concept of unlimited liability a concern for the sole proprietor?

Unlimited liability is a legal concept that holds a business owner personally responsible for all the debts of the business. Debts of the business are not legally separated or different from the debts of the sole proprietor. Therefore, if the business is involved in a lawsuit or sustains substantial loss or debt, the sole proprietor is legally responsible and personal assets can be seized to pay creditors. Unlimited liability is perhaps the major factor that tends to discourage would-be entrepreneurs with substantial personal wealth from using the sole proprietor form of business organization.

A year ago, Carl went to work for B&G, Inc. He has worked for the finance department ever since he started. He noticed that the corporation was only taxed as though it were a partnership. This was something that he found very odd when he first started working for the company, but he later realized it was a fairly common practice. He recognized that this was one of the advantages of this type of corporation.While the job was challenging, Carl was not happy. He wanted to work for a company whose main goal was to provide service to the community, not to make a profit. However, Carl felt that, considering his present financial situation, he had to continue working for B&G, Inc. A week later, Carl discovered there was going to be a merger between B&G, Inc. and one of its major competitors. Carl's boss informed him that he would be getting a promotion and a raise. While he was excited about making more money, he still was not happy. He knew then that he would not be working for the company for long.Refer to B&G, Inc. Which of these features does not belong to this type of corporation?

Unlimited number of stockholders

How does a positive reinforcement differ from a negative reinforcement?

With positive reinforcement, good performances receive a good reward. Whereas with negative reinforcement, something is removed in order to entice the individual to perform better. Basically, positive adds something and negative removes something.

The dimension of quality of a product that refers to how a product looks, feels, tastes, and smells is the product's

aesthetics .

Andrea purchases a Blu-ray player at a store that sells refurbished merchandise. The store has a big sign stating "Caveat Emptor" posted out front and at the cash register. This sign most likely translates to a policy of

all sales are final (no refunds or exchanges).

Define business ethics.

application of morals to business

The forces that make up the external marketing environment of a firm

are generally beyond the firm's control.

A market is a group of individuals and/or organizations that have needs for products in a given category and have the ability, willingness, and ____ to purchase such products.

authority

Machines are used for almost all of the computer chip manufacturing process. These companies are said to be _____ companies.

automated

Productivity is the

average level of output per worker.

Customers expect a firm's products to

be safe, reliable, and reasonably priced.

A systematic program of reinforcement to encourage desirable behavior is known as

behavior modification.

If Southwest Airlines closely evaluates the products and processes of United Airlines with the intent of improving quality among its own products and practices, Southwest is using

benchmarking.

When people from a variety of different countries and educational and work experience backgrounds come together to work on a project, they often have varying perspectives on given issues. This benefits the company in the form of

better problem solving.

Cory's Copy Shop buys large quantities of copy paper both for making copies which are sold to customers, and to sell outright to customers. Cory's Copy Shop is a

business buyer.

Copley Pharmaceutical, Inc. recently pled guilty to federal criminal charges for falsifying drug manufacturers' reports to the Food and Drug Administration. This is an example of a company that failed to exercise proper ____________.

business ethics.

Bullies in the workplace use sarcasm, humiliation, and fear to influence others. This is a form of _____ power.

coercive

Tim Hughes works at an institutional bakery and is paid a wage dictated by the government. He does not like his job but is not allowed other options. Tim must purchase necessities for his family at fixed prices. The country Tim lives in can be described as a ____ economy.

command

Carol has worked for Centrum Springs, Inc., for many years and has now been given the opportunity to advance in the company. Her manager is retiring and hopes that Carol will take over for him. However, even though Carol is an experienced employee, there are many things that she still needs to learn. Carol has trained many new employees, but she has never held a management position. Carol needs to have a general understanding of what it takes to be a manager.There are many problems in Carol's department. There are no plans to fall back on in case the initial plan fails. Carol also will need to learn how to direct people in such a way that makes them want to do more than they absolutely have to. Carol feels that this is a great opportunity, and she is anxious to learn everything to be a great manager. She knows that if she performs well in this position, she will have the opportunity to move up the corporate ladder.Refer to Centrum Springs, Inc. The different resources available to all managers include all of the following except

competitors.

A(n) _____ occurs when an employee's decision potentially benefits the individual to the possible detriment of the organization.

conflict of interest

Carol has worked for Centrum Springs, Inc., for many years and has now been given the opportunity to advance in the company. Her manager is retiring and hopes that Carol will take over for him. However, even though Carol is an experienced employee, there are many things that she still needs to learn. Carol has trained many new employees, but she has never held a management position. Carol needs to have a general understanding of what it takes to be a manager.There are many problems in Carol's department. There are no plans to fall back on in case the initial plan fails. Carol also will need to learn how to direct people in such a way that makes them want to do more than they absolutely have to. Carol feels that this is a great opportunity, and she is anxious to learn everything to be a great manager. She knows that if she performs well in this position, she will have the opportunity to move up the corporate ladder.Refer to Centrum Springs, Inc. When Carol learns all that it takes to be a manager, she will be involved in

controlling, organizing, planning, and leading.

Miranda recently switched careers. Previously, she was a college professor, but she felt she needed more real-world experience to help her business students more fully. She became a manager at Dazzle Magazine, where she was in charge of the layout. Always open to new ways of doing things, Miranda let her staff implement their ideas at times. Miranda learned firsthand the different roles she had to play as a manager.It always got stressful when the publication deadline neared. At one point, there was a major mix-up in the layouts for the front cover. Miranda was not sure of the correct layout because she had allowed one of her employees, Joseph, to modify and run with his idea on this matter. However, she could not ask for Joseph's help with the covers because he happened to be out of town at the time. Miranda quickly looked over the layouts but felt that they still needed some work.She decided to ask the design manager for her help. The design manager did not feel comfortable making a decision on the issue, so she did not give Miranda an answer. Miranda then went to an employee within her department for advice. That employee suggested some ideas, but Miranda was still not satisfied. Finally, Miranda called one of her top graduate students with whom she had kept in contact and asked her if she could offer some ideas. The graduate student quickly came to the magazine's office and helped Miranda decide on the alternative that should be implemented. Miranda greatly appreciated the assistance and the suggestion. The final cover design went to press, and that issue of the magazine was successful. This helped Miranda realize that considering the big picture was good, but equally important were the little details.Refer to Dazzle Magazine. Now that Miranda has real-world experience, she understands more than ever that certain skills are needed for any manager's success. These skills include all of the following except

corporate behavior skills.

A task group that is made up of one member each from marketing, development, production, and manufacturing would be a(n)

cross-functional team.

Top Queen, Inc. (TQI) is a business-clothing store for professional women. The owner of the company has designed the business so that she hardly ever has to be there. There are many departmental managers who hold a lot of responsibility. While they are organized separately by department, each manager knows enough about the other departments to be able to fill in at any time. The department managers also delegate a lot of work further down to their employees as a way to empower them. The owner even delegates store-management responsibilities to a different department manager each month. Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge.The employees are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working. However, the owner realizes that she does not want to participate in these events because she does not want to seem that she is favoring certain people over others.Refer to Top Queen, Inc. TQI can best be described as a(n) ____ organization.

decentralized

Intel expects its code of ethics and shared values to provide all of the following benefits except

describe what to do in every ethical situation.

According to Theory X by McGregor, managers assume that employees

dislike work and need to be controlled.

Cindy worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but it did not want to do things differently. When Cindy went home to talk to her husband, they both realized that, given her passion, it would be better for Cindy to open her own business. After a lot of consideration, she decided to open a sporting goods store called Your Wish, Inc. She also knew just where to open the store⎯right next to her house.To be certain to address all aspects of the business, Cindy hired a marketing research firm to determine the best location. Once all the research was compiled and analyzed, she realized that it would actually be better to open the store in a different area. She also realized that deciding where to locate the business was not the only major concern. More specifically, she would have to focus on the four elements of the marketing mix as well, creating a whole marketing plan. Her husband mentioned the possibility of using online information services to help with the business. With her husband's support and a good marketing plan, Cindy felt that she would be prepared to make the right decisions.Refer to Your Wish, Inc. When Cindy's business gets going, her income less all additional personal taxes would be called her

disposable income.

The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through the Internet is known as

e-business.

Due to a recession in the United States and abroad, ski resorts have suffered from a lack of guests during the peak season. These ski resorts have felt a direct impact from ____ forces.

economic

At Jeep, teams of workers make their own job assignments, plan their own work, control their material and inventory needs, and select new team members. This is an example of job

enrichment.

Jason has started a restaurant of his own. He makes all the major operational decisions and is completely liable for the profits and losses the restaurant makes. Jason is most likely to be a(n)

entrepreneur.

If you were a manager who made sure that rewards were distributed to your employees fairly based on their performance and that each employee clearly understood the basis for his or her own pay, you would be using

equity theory.

The theory that people are motivated to achieve and receive rewards in proportion to their contribution is called

equity.

In lecture, we discussed "Kano Modeling". There were multiple ideas within that model, but there was 1 core idea that I instructed you to take note of. What was the most important idea we discussed with Kano Modeling?

exciting features will becomes expected features

explaining the purpose of each task.

A(n) ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

export-import agent

Chandler Corporation is interested in attracting managers who can contribute new perspectives to the managerial process. Chandler should concentrate on

external recruiting.

Carol has worked for Centrum Springs, Inc., for many years and has now been given the opportunity to advance in the company. Her manager is retiring and hopes that Carol will take over for him. However, even though Carol is an experienced employee, there are many things that she still needs to learn. Carol has trained many new employees, but she has never held a management position. Carol needs to have a general understanding of what it takes to be a manager.There are many problems in Carol's department. There are no plans to fall back on in case the initial plan fails. Carol also will need to learn how to direct people in such a way that makes them want to do more than they absolutely have to. Carol feels that this is a great opportunity, and she is anxious to learn everything to be a great manager. She knows that if she performs well in this position, she will have the opportunity to move up the corporate ladder.Refer to Centrum Springs, Inc. If Carol were to take this first step up the corporate ladder, she would be classified as a

first-line manager.

Foreign licensing is similar to

franchising.

gathering, recording, and analyzing data about a particular marketing issue.

Increased competition from firms in other nations is an example of the

global environment.

horizontal

All of the following are basic kinds of inventories EXCEPT

human resources.

The French government charges a 25 percent tax on all American fruits and vegetables that are sold in France. This tax collected by French authorities is a(n)

import tariff.

A consulting firm calculates an efficiency index for each of its consultants by dividing each consultant's total hours of work by the number of billable hours. This is a measure of _____ productivity.

individual

Top Queen, Inc. (TQI) is a business-clothing store for professional women. The owner of the company has designed the business so that she hardly ever has to be there. There are many departmental managers who hold a lot of responsibility. While they are organized separately by department, each manager knows enough about the other departments to be able to fill in at any time. The department managers also delegate a lot of work further down to their employees as a way to empower them. The owner even delegates store-management responsibilities to a different department manager each month. Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge.The employees are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working. However, the owner realizes that she does not want to participate in these events because she does not want to seem that she is favoring certain people over others.Refer to Top Queen, Inc. The group of employees that participate in outside activities on the weekend would be considered a(n) ____ group.

informal

When a company collects external marketing data, it looks at information about

its customers.

Amanda, a merchandise manager at Dillard's, has just been informed by her superior that all managers in the store have been reassigned departments of responsibility because top management has done some reorganizing. Amanda previously was in charge of the infants' department and the girls' department, and now she is also in charge of the boys' department. This is an example of

job enlargement.

A motivation tool that attempts to provide workers with more tasks and more control over these tasks is

job enrichment.

You have been charged with finding out whether your company has violated the concept of comparable worth. After gathering all the facts, you find the company guilty because

jobs requiring about the same level of training and skill receive significantly different pay.

An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy.

market

AST Computers purchases most of its parts from several suppliers and then assembles products based on customer specifications. The company's hard drive supplier's contract will expire soon and AST intends to shop around for a new supplier. The purchasing process could involve all of the following except

market research.

Andrea works for a retail shop called Melody's Crafts 'N Things. Andrea was often quite rude to customers when they annoyed her. One morning, her supervisor asked Andrea into her office and informed her that her behavior was unacceptable. To be rude to one customer could cause several customers not to come back. Andrea's supervisor told her that retaining a customer is much cheaper than trying to get a new one. After their constructive discussion, Andrea's boss told her that she wanted her to go out on the floor that day and attempt to be more helpful to customers.Over the next few months, Andrea began to help customers learn more about the different products in the store and often explained why the customer might want to purchase one product over another. In doing so, she realized the importance of her role in the retail shop and began to truly enjoy her job. She started to think about the future of the company. She even thought that the company could do very well if it were to sell its products on eBay. When she brought this idea to her boss, her boss thought it was excellent, and asked Andrea to look further into the pros and cons of her idea.After evaluating Andrea's research, her boss decided to move forward with the idea, asking Andrea to head up this new venture for the company. Andrea then realized that retail is not just about making the sale; the customer should be the focus of all operations. Andrea now looks up to her boss, and is very glad that she was there to mentor her.Refer to Melody's Crafts 'N Things. Andrea should understand that all of the following are different types of utilities except

market.

You have been asked to develop an effective reward system for Kroger stores. In designing such a system, you should strive to meet all of the following objectives except

maximizing the amount spent on compensation.

An employee's attitude toward his or her job, supervisors, and the firm itself is termed

morale.

Victor Vroom's expectancy theory is based on the very simple assumption that

motivation depends on how much people want something and how likely they are to get it.

Under Herzberg's theory, when ____ factors are present in the work environment, they act as satisfiers; when ____ factors are absent, they act as dissatisfiers.

motivation; hygiene

A timeline for a strategic plan can be as long as 10 years. However, Dr. Pace advised this duration is better...

one to two years.

Taking credit for others' ideas or work or not meeting one's commitments in a mutual agreement are ethical issues concerning

organizational relationships.

A person who purchases stock in a company becomes a(n) _____ of the company.

owner

Top Queen, Inc. (TQI) is a business-clothing store for professional women. The owner of the company has designed the business so that she hardly ever has to be there. There are many departmental managers who hold a lot of responsibility. While they are organized separately by department, each manager knows enough about the other departments to be able to fill in at any time. The department managers also delegate a lot of work further down to their employees as a way to empower them. The owner even delegates store-management responsibilities to a different department manager each month. Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge.The employees are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working. However, the owner realizes that she does not want to participate in these events because she does not want to seem that she is favoring certain people over others.Refer to Top Queen, Inc. It seems that TQI managers could be considered all of the following except

owners.

The process of shipping fresh flowers from California to Texas gives ____ utility to the flowers.

place

Paula formed a ___ by temporarily bringing together knowledgeable employees from different parts of the organization to form a team to solve a specific problem.

problem-solving team

The elements of the marketing mix are

product, price, distribution, and promotion.

Karen, the marketing manager of RLS Manufacturing, is evaluating factors that could affect sales of its line of golf bags over the next year. She can get all of the following from the marketing plan except

production goals.

Cindy worked for a retail company and noticed there were many things it could do better. She shared some of her ideas with upper management, but it did not want to do things differently. When Cindy went home to talk to her husband, they both realized that, given her passion, it would be better for Cindy to open her own business. After a lot of consideration, she decided to open a sporting goods store called Your Wish, Inc. She also knew just where to open the store⎯right next to her house.To be certain to address all aspects of the business, Cindy hired a marketing research firm to determine the best location. Once all the research was compiled and analyzed, she realized that it would actually be better to open the store in a different area. She also realized that deciding where to locate the business was not the only major concern. More specifically, she would have to focus on the four elements of the marketing mix as well, creating a whole marketing plan. Her husband mentioned the possibility of using online information services to help with the business. With her husband's support and a good marketing plan, Cindy felt that she would be prepared to make the right decisions.Refer to Your Wish, Inc. In preparing a marketing plan, Cindy should ensure that all of the following components are included except a(n)

production schedule.

Exquisite Expressions is a home decorating company that sells many different household accessories ranging from candles to entertainment centers. Dora is the CEO of the company. She feels that there is not enough specialization within the company and wants to organize the business in a different way. Dora thinks that the company would be more effective if it were to switch to a new way of organization. For example, there could be a manager in charge of the candles, a different manager in charge of the entertainment centers, and so on.Another issue that Dora wants to resolve is that of delegation. She believes that if she could improve her delegating, employees would feel more empowered and want to go above and beyond what they are required to do. There are certain reasons that Dora has a hard time delegating to others, but she is confident that the problem will be overcome if she works on it.Refer to Exquisite Expressions. Dora should address all of the following when it comes to organizing the business except

regulating behavior.

Martin Saunders receives $50,000 a year as a manager. This type of compensation is called

salary.

The relationship between sales and profits can be written as

sales revenue − expenses = profit.

The U.S. Army's motto to "be all that you can be" relates most closely to the ____ level of needs.

self-actualization

The most difficult need to satisfy is

self-actualization.

The HRM specialists at A&C Company took the opportunity to increase productivity and decrease manual data analysis by using their computer network along with a commercial database management system to develop a ____. Now the company can readily identify specific organizational skills, eliminating the need to comb personnel files manually.

skills inventory

Amanda is a high school student. All of her friends buy their jeans from Express, so she decides to buy Express jeans even though Levi's fit her better. Amanda's purchasing decision is most influenced by ____ factors.

social

When Hilary accepted a position with Xerox Corporation in San Francisco, she knew little about what to expect. However, all her fears soon dissolved. One week before she began, she received a thorough orientation to the company, was introduced to her co-workers, was invited to lunch daily, and was encouraged to join a company-sponsored employees' club. Xerox seems to be satisfying Hilary's ____ needs.

social

Fred Sanchez owns and operates his own small automobile repair shop. However, the prices he can charge are fixed, and he rents his land and building from the government. Most of his friends work for industries owned by the government. Fred's country is most likely a(n) ____ economy.

socialist

Jack, president of a national stationery store, believes that the business has a responsibility not only to stockholders but also to customers, employees, suppliers, and the general public. Jack subscribes to the ____________ of social responsibility.

socioeconomic model

If Stanley Jones, VP Finance, meets with Linda Sheridan, CEO, to discuss how much of the budget can be allotted to certain departments for next year's project plans, the two are engaging in

strategic planning.

Starbucks strives to make its cups from recyclable materials, to give back to the communities where it has stores, to aid the communities where the coffee beans are harvested, and to reduce its environmental impact. Starbucks promotes

sustainability.

Following the birth of his first child, Mike Simpson, a software designer for Microsoft, wished to spend more time with his family. He asked his employer if he could perform a portion of his work at home and come into the office only Tuesday through Thursday. Microsoft allowed it. By allowing Mike to work at home on Mondays and Fridays, Microsoft practices ____ as a motivational technique.

telecommuting

Cultural diversity represents

the differences among people in a workforce.

Kano Modeling

the most important thing (so far) is that customers have needs met by product features. Exciting features over time becomes expected features.

HGR Chemical Company believes the environmental regulations for its industry are much more stringent than necessary, which likely means

they are too expensive to comply with.

By selling Christmas trees from late November through December, Home Improvement is providing ____ utility.

time

Strategic goals are set by

top managers.

The use of databases, online information services, and the Internet can assist marketers in

tracing buying behavior of customers.

While the global economy continued to grow robustly until 2007, economic performance ______.

was sluggish then stopped in 2009.

_____ programs are used to develop products.

Computer-aided design (CAD)

_____ are used to assemble machinery, weld joints, and a variety of other tasks by manipulating materials and tools.

MGMT 105 Final

संबंधित स्टडी सेट्स

Econ ch 6

Chapter 7: Basic Math Skills

Chapter 6

PT 6

Introduction to AI key facts and definitions

4.2 Niches and Community Interactions WS

Equation of a line practice

Corp Day One

BIO121 Intramembranous Ossification

Grade 11 accounting for Depreciation Review

Second Triumvirate notes

Chapter 2

Accounting 230

FINC 409 Ch. 9

VATI Maternal Newborn

#11: Retailing and Wholesaling

Pharm Exam 2

MKT. 300 Chapter 10: ECHO and MindTap

Chapter 8-10 ethics

Chap 127