Business

Herzberg hypothesized that are two different sets of factors governing job satisfaction and job dissatisfaction. These are

"hygiene factors" and "motivation factors".

Mandy is looking to set up her business as an LLC. Which of the following statements correctly describe a limited liability company to Mandy?

A business structure that is attractive to small business owners because they provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.

A Subway franchisee does not do a good job managing food safety. Customers purchase sandwiches that contain expired turkey and become ill reflecting poorly on the brand and exposing the company to liability. This is an example of:

A disadvantage for the franchisor - a lack of control over the franchisee resulting in damage to the brand.

Carol and her friends are creating a new company that ships monthly subscription boxes filled with beauty products to customers. Carol has multiple partners and she wants to avoid both double taxation and personal liability at the same time. In addition, she wants to pay the partners based on their company ownership percentage. Carol can accomplish her goals by forming what type of business entity?

An S corporation

The basic premise of the theory of reinforcement is that

An individual's behavior depends of the consequences of that behavior

A sole proprietorship is described best by which of the following descriptions?

An unincorporated business owned and run by one individual in which there is no distinction between the business and the owner

Compared to working for an employer, an entrepreneur who starts a small business is likely to spend:

Andy has started a garage. Two of the negative elements are

Self Dealing arises when as a business owner you:

As a member of the City Council, you vote to award contracts to your business.

An automotive company was looking to expand internationally and selected three possible countries in which to build a factory. All three of the potential counties had government officials who made it clear that for a little extra kickback, they would be willing to make the process much smoother to build a plant. In one country, the government official indicated his brother-in-law had the perfect piece of land to use as well. This company has run into what type of common ethical challenges?

Bribery and conflict of interest.

What is the purpose of using need-based theories for worker motivation?

By making the effort to satisfy employee needs, organizations may ensure a more highly motivated workforce

As a Business student, you are asked to give a small business owner some advice on how to avoid failure. Which of the following would you provide?

Closely monitor the company's cash flow and stay on the right financial track

Bribery, conflict of interest, honesty and integrity, whistle-blowing are:

Common business ethical challenges

Alternative courses of action, in case of change occurring is considered:

Contingency planning

Philip is a new manager of a 15 person manufacturing operation. His predecessor has handed him a complete annual plan (with budgets) and a roster and organization chart of all of the resources in his department. Philip has presented the company's strategic plan to his department and met with each of them individually to establish rapport. After a month on the job, the owner approaches him and asks how he is doing compared to plan. Philip is stunned because he hasn't attended to which of the 4 management functions?

Controlling

Corporate philanthropy, cause-related marketing, and sustainability are examples of:

Corporate Social Responsibility programs

A business's positive impact on the environment and stakeholders is encouraged through:

Corporate Social Responsibility strategies

Corporate Philanthropy involves:

Corporation's gifts to charitable organizations

You are thinking about starting your own business. What are the most important factors you should consider when thinking about your form of business ownership?

Cost of start up, taxation and risk tolerance.

Continuity or transferability, risk tolerance, cost of start up, control vs. responsibility, profits, taxation, entrepreneurial ability, financing and are each:

Factors to consider when choosing an organizational type.

Nepotism is a form of conflict of interest and describes situations where:

Family members or their common employer gain favorable treatment because of their family ties.

Overstating the impact of environmental actions to promote "eco-friendly" products is known as:

Greenwashing

What does business ethics involve?

It refers to standards or values governing behavior and actions of individuals in a business organization and actions of the business itself.

Small businesses are important to any economy. In the U.S. small businesses have been credited with making significant contributions to the growth and prosperity of our economy. Identify one of the four ways in which small businesses can and have contributed to the U.S. economy.

Job creation

Fred Frumple is known for his planning ability as a manager. Every task and resource is carefully accounted for. However, Fred is unable to communicate or inspire employees. Which of the four management functions is Fred lacking?

Leading

Tanen Inc. follows Theory Z and assumes a relationship between the company and the employee that is not typical in the United States. The company plans for

Long-term staff development and employment.

In the National Business Ethics Survey, what do employees identify as their most serious concern about management?

Management compromising the standards of the organization.

Planning, organizing, leading and controlling are considered to be the key:

Management functions.

Mega Mining operates mining facilities around the world and as a result controls a large portion of the market. When they opened a new mineral extraction facility on the tiny island nation of Candyland they realized they would immediately become the largest private contributor to the nation's GDP thus giving them a great deal of power. Much to the delight of investors, Candyland's government has enacted almost no regulations to protect the safety of workers or preserve the environment. The CEO of Mega Mining made several decisions regarding their operations in Candyland. Which of the following are examples of the company's ethical behavior?

Mega Mining installs scrubbers on the smokestacks of their smelting facility to protect the environment of Candyland.

Miyagi says people will be self-directed and creative if they are committed to company goals. He also says

Most people can handle responsibility.

In Herzberg analysis, gaining status, assuming responsibility, and achieving self-realization are

Motivation factors

In 2015, the German auto maker Volkswagen revealed that it had installed software on millions of cars in order to trick the Environmental Protection Agency's emissions testers into thinking that the cars were more environmentally friendly than they were. This action was:

Non-compliant with environmental regulations

Evidence of Frederick Taylor's Principles of Scientific Management can today be seen in:

Organizational charts, performance evaluations, quality measurements and metrics, and sales and/or production goals.

Entrepreneurs commonly share traits of:

Passion, flexibility, and creativity.

One trait of successful entrepreneurs is that they are good at

Perceiving new business opportunities

The CEO of Wells Fargo resigned in October 2016 due to the scandal surrounding the bank's:

Practice of forcing employees to open new customer accounts without the customer's permission.

Entrepreneurs who have started several businesses and continue to start new businesses are known as

Serial entrepreneurs

Your sister formed her business as an LLC to protect herself from personal liability. At the same time she opens her business, the economy takes a dive and her business fails with many business debts remaining. Which of the following circumstances would make your sister personally liable for her business's debts?

She signed documents personally securing the debts of the business.

Celebrity chef Jamie Oliver started a company called Fifteen to help disadvantaged youth to create a better future for themselves. If other celebrities or individuals wanted to start a similar company with the sole purpose of helping others and giving back to society, these individuals would be known as:

Social entrepreneurs

Humans need to feel a sense of belonging and acceptance, whether it comes from a large group or a small network of family and friends. Maslow labeled this as

Social needs

The main thing that makes S Corporations different from C Corporations is:

That the business is not taxed itself. Only the shareholders are taxed.

A tornado has touched down in a town not far from a manufacturing company and it is moving toward the plant. The president of the company needs to get everyone to leave the building and get into the tornado shelter for safety. What style of management should the company president use to be the most effective in this situation?

The autocratic management style.

Employees of Fannie Mae, a financial company, are complaining that the pay is unfair and gossiping with each other about it, hurting morale and productivity.

The company should survey the market value of each job and show employees the results, demonstrating that the pay is market-based.

Heather is the president of a small company, BrainZ, consisting of 20 highly skilled software engineers. BrainZ takes on projects for other companies who do not have the expertise to create internal programs to help run their businesses. What style of management would be an effective management style for Heather to use in this situation?

The laissez-faire management style.

A healthcare service company delivering in-home treatment to the elderly receives referrals from a Medicare authorized provider for a fee. This activity becomes an illegal kickback scheme when:

The provider makes unnecessary treatment referrals and gets paid for them by Medicare

The manager of a clothing store in the mall has hired five new employees for the summer. All of them have just graduated from high school and will only work the three summer months before leaving for college. After the initial week of training, the manager continues to scrutinize and direct them in every detail of their job. Each time they make a mistake they are reprimanded, told their pay may be docked, and reminded that there are always other people who will gladly take their place. This manager is using the approach to management known as ________.

Theory X

According to the SBA, less than half of all small businesses survive their first five years. There are six major reasons why small businesses fail to survive. Identify one reason why small businesses fail:

They fail to do adequate planning

Entrepreneurs bear risk and uncertainty, long hours, and setbacks. They must be

Tolerant of risk.

A thirty-five-year old entrepreneur with dependents is considering starting a business. She is concerned about protecting her personal assets and making sure that if her company were to fail, she would not lose her home or personal savings. This is an example of an individual:

With low risk tolerance.

The main characteristic of a B corporation is that it seeks to provide:

a return to shareholders while pursuing other goals that benefit community or society.

Planning is the process of thinking about and organizing the activities needed to:

achieve a desired goal.

David McClelland's acquired-needs theory splits the needs of employees into three categories. These three categories are

achievement, affiliation, and power:

Strategic planning involves:

aligning overall plans to the company's mission

Maslow's hierarchy of needs is illustrated in a pyramid shape that represents how:

all human beings have basic needs that must be met before individuals can focus on higher needs.

In 2011, Skype, a company for making internet phone calls, was purchased by Microsoft for $8.56B in cash. This is an example of:

an acquisition

Althea works for the Sunnyvale Tax Department in the collections department. She knows that the owner of the vacant lot next door to her home owes almost 5 years back taxes and the property will soon be auctioned off at a bargain price. If the lot is sold and someone builds on it, she will no longer have a view of the lake. On a Monday morning, her supervisor asks her to contact the local newspaper and place the notice of sale in the weekend edition. Althea knows that once the notice goes into the paper, dozens of investors will show up to bid on the lot. If she "forgets" to put the notice in the paper, no one outside of the few people in the tax office will know the sale is occurring and she and her husband could purchase the lot for ¼ of its actual market value. In this situation, Althea is facing a decision that involves:

an issue of honesty and integrity

The organizing function of managers involves:

assigning activities identified in the planning process to some person, team or department.

Alderfer's "Relatedness" needs have to do with the importance of maintaining interpersonal relationships. These needs are

based in social interactions with others such as friendship, family, and sexual intimacy.

Tactical plans:

break down strategic plans into manageable, shorter-term components.

A whistleblower program helps businesses mitigate risk:

by reinforcing a culture of non-tolerance of unethical practices.

As society evolves, what constitutes legal behavior ________.

changes

A ________ ________ ________ tends to support a company's obligation to its' stakeholders, rather than regulating a profession.

code of ethics

The American Veterinary Medical Association (AVMA) is a not-for-profit association representing more than 89,000 veterinarians. They have the "Principles of Veterinary Medical Ethics" which are an example of a:

code of practice

Companies today are held to higher standards than ever before. Consumer and other groups consider not only the quality and price of a company's products but also its ________.

commitment to environmental and social concerns

XYZ Inc. identified their main competing products, services and market segments. This is an example of a ________ ?

competitive analysis

Top-level managers must scan the broad environment for opportunities and thus must possess:

conceptual skills

You work for a company that manages apartment buildings. The company did not renew their contract with a local landscaping company and are now looking for a new landscaping services provider for the apartment complex. You are asked by management to locate a new landscaping company. Your son runs his own lawn care business. If he gets the contract for the apartment complex you will no longer need to make his car payments and he might even start paying you rent. This situation brings up a potential ________ for you.

conflict of interest

A ________ is a legal entity completely separate from the entities who own it.

corporation

Which of the following entities are subject to limited liability?

corporations

Management, in any organization, can apply the conclusions of the Hawthorne studies by:

creating a business environment where people feel they are a part of decision making and that they belong

Theory Y leadership assumes:

creative capacity can spread throughout organizations

An approach of open communication and collaborative decision making suggests which type of leadership?

democratic leadership

The funding section of your business plan should:

distinguish between debt and equity funding.

Job rotation is an way for:

employees to gain new skills because of cross-training in new tasks

Besides providing direction, goals in business motivate because they:

energize people and tell them not to stop until they reach a specified end point.

Sally is a partner of a small clothing company. This week she has been hosting a group of potential investors. Several of the potential investors have asked about the company's newest technology and ability to sell clothing online. If these potential investors decide to invest in her company it could mean enormous growth, however she is being asked to divulge some specific information about the company that she and her partner decided would not be discussed. She is now faced with a (n) ________ issue.

ethical

Many businesses will set the ________ through their organizational leadership.

ethical tone

Often considered the most important part of a business plan, this section is the first opportunity to grab a potential investor's interest.

executive summary

In Vroom's theory, ________ is the individual's belief that effort will lead to the intended performance goals.

expectancy

The service or product line section goal is to ________.

explain the benefits to potential and current customers.

When choosing a location for a business, most business owners start with

exposure to customers.

Human skills are important management skills especially when:

fostering teamwork, managing conflict and encouraging improvement.

At the company where Cindy works, everyone works in units with people who perform similar jobs. All of Cindy's accounting colleagues work in one department. All the marketing and sales people work in one department, as do all the people involved in producing the company's apparel products. What type of organization is this?

functional organization

According to the Small Business Administration, a small business is one that:

has less than 500 employees

Using Theory Y, leadership can apply principles of management to improve employee motivation by:

having employees participate in goal-setting and the performance appraisal process

The goal of writing your company description is to ________?

help readers and potential investors quickly understand your business's unique proposition

Fred likes the idea of being a business owner and is now considering starting a business. Fred should think about

his motivation, a business strategy, and realistic projections of income and expenses.

In 1998, the German auto manufacturer Daimler-Benz purchased Chrysler for $36 billion which was one of the biggest mergers of its kind back then. Both of these companies were in the automotive business. Even though they had different cultures and market focus, this merger is an example of a:

horizontal merger

A legal partnership agreement should include:

how future business decisions will be made, including how the partners will divide profits, resolve disputes, change ownership, and how to dissolve the partnership.

A business plan is like a map of how you will run your business successfully. It will include:

how you will run your business

Ability to lead is a ________ management skill.

human

You have just been promoted from a supervisory role to a mid-level management position overseeing several work teams. You are eager to strengthen your managerial skill set to meet the challenges of your new role. What skill set should be your particular focus in this role as you foster teamwork, manage conflict and encourage improvement?

human interpersonal skills

When a need is met, Maslow argues that

it will no longer serve a motivating function.

________ refers to expanding the tasks performed by employees to add more variety.

job enlargement

A social media company has a process where individuals can choose to make changes to their work responsibilities, even dramatic changes, if they create or discover more efficient ways to work. This is an example of a company using ________.

job enrichment

A leader who prefers to delegate the work tasks to their employees while providing little or no direction is considered which type of management style:

laissez-faire.

In decision making, determining the ________ of a course of action may depend on statutes, regulations and codes.

legality

A company CEO created an ethics policy, made ethical training mandatory and installed feedback systems for ethics violation. When ethics violations were reported to the executives however, no changes or reprimands were made. Consequently, the policies ________ value and executives ________ the respect of employees.

lost, lost

In a functional structure, one disadvantage is that the different functional groups:

may not communicate with one another.

Goal setting theory is one of the most influential and practical theories. There is strong evidence that setting goals improves:

measured performance

A transformational leader is one who:

mentors employees and provides opportunities for challenge and growth.

A new company will be formed by combining Company A with the Company B. This type of business combination is known as a(n):

merger

Planning cannot begin with a company until they have determined what their ________ will be.

mission

Jane is a manager that is self-absorbed and has a personal egotistic need for power and admiration. This is an example of a ________ leader.

narcissistic

The market analysis section of a business plan should show that the business owner has knowledge of the market, has conducted research into the market and has ________?

narrowed the target market to a reasonable size.

An acquisition is when:

one company purchases and absorbs another company.

An entrepreneur is someone who:

organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.

Assigning activities identified in the planning process to a person, team or department is the:

organizing function

Today the key management functions are considered to be:

planning, organizing, leading, controlling

Setting standards, measuring performance against those standards, analyzing performance and taking corrective action are the four parts of the:

process of control

A franchise:

provides a proven product, business model and brand to the franchisee.

Andy has started a garage. Two of the negative elements are

risk and uncertainty

A franchisee is generally expected to pay:

royalty fees for support from the franchiser.

Merely the presence of a goal is not motivation enough. According to the goal setting theory, a goal must be SMART. This stands for:

specific, measurable, achievable, realistic, and timely

Business may be required to acquire licenses and permits from

state, local, and federal governments.

The SWOT analysis examines an organization's:

strengths, weaknesses, opportunities and threats.

A manager needing to explain the operation of equipment to an employee needs ________ skills and communication skills.

technical

Which government entity insures loans for small businesses?

the SBA (Small Business Administration)

A business hiring new employees will need to report to

the federal and state and local government.

Disadvantages for a franchisee include:

the high cost of start-up.

The organization and management section in your business plan identifies ________.

the legal structure, explaining whether liability is limited or not.

Equity theory proposes that people value fair treatment. Accordingly, equity structure in the workplace is based on

the ratio of inputs to outcomes

Conceptual skills are most essential for:

top-level managers

Managers who adopt a ________ style communicate with subordinates about what is expected of them and what happens if they meet these objectives. Their attention tends to focus on identifying problems and disciplining employees for poor performance.

transactional

Mentoring subordinates, working one-on-one to develop their team members professionally, and providing opportunities for challenge and growth are characteristics of which leadership style?

transformational

The "Dino Dig, Inc." gas company has discovered large oil deposits in North Dakota over the last three years. With money from its company profits, it purchases controlling shares and equipment in a truck transportation company and a railroad transportation company. Both of the companies continue to operate under their original names, but now "Dino Dig, Inc." uses its newly obtained assets to more efficiently and cheaply transport its crude oil around the country. Dino Dig, Inc. is great at ________.

vertical acquisitions

The Hawthorne studies discovered that:

workers are highly responsive to their managers providing additional attention and taking interest in their work

Guillerma wants to start a business after this class. His first step, as described in our textbook, is to

write a business plan