Business quiz three

Javier works as an assistant manager at a home improvement center. He wants to be promoted to the position of manager but feels that it is unlikely to happen. As a result, Javier is not motivated to achieve this goal. Which theory best explains Javier's situation?

expectancy theory

A work program that allows employees to choose their starting and ending times, as long as they are at work during a specified core period is called

flextime

What strategy benefits both companies and employees since it increases a company's ability to recruit and retain workers and allows employees to balance work and home life by allowing them to choose their starting and ending times, as long as they are there during a specified core period?

flextime

A corporation doing business outside the state in which it is chartered is known as a(n)

foreign corporation.

Bradley is a manager at a company that has made the difficult decision to downsize. After his company eliminated 50 employees, what must Bradley do to effectively manage his remaining employees and help them through the situation?

promote optimism and positive thinking

Articles of partnership usually cover issues, including

provisions for leaving the partnership.

Which form of business ownership provides limited liability but is taxed like a partnership?

a limited liability company

A(n) ________ is like a calendar, containing both specific and vague items, which helps a manager figure out what must be done and how to get it done to meet the objectives set by the organization.

agenda

Job ________ is the incorporation of motivational factors such as opportunity for achievement, recognition, responsibility, and advancement into a job.

enrichment

________ are typically owned by many individuals and organizations who own shares of the business, called stock.

Corporations

What is a drawback of job rotation?

It is unable to totally eliminate the problem of boredom.

Darlene runs an antique store in her local community. She started the business with her own money and solely manages the day-to-day operations of the business. What is true in this scenario? Darlene's business will be constantly regulated by federal and state laws. Darlene must file articles of incorporation to start her business. Darlene can easily dissolve the business whenever she wants. Correct Darlene will have to share her profits with stockholders.

Darlene can easily dissolve the business whenever she wants.

Theory X and Theory Y are most closely associated with

Douglas McGregor.

Which is a likely result of job enrichment?

Employees will have more control and authority over their job.

Isra manages a small coffee house. In fact, this business is so small that Isra is the only manager. What level manager is Isra?

Isra assumes the responsibilities of all three levels.

Sasha works for a large corporation, and sometimes, she finds it difficult to see how she fits into the corporate picture. However, recently, her company decides to establish an employee stock ownership plan. Which is a benefit of this type of plan?

It can boost employee productivity.

Vince starts his own tutoring business. He wants to write a good mission statement that explains his company's reason for existence. What is one guideline he should follow in writing his mission statement?

It should be clear and concise.

What is true of top management compensation?

Many firms are trying to align CEO compensation with performance

Felicia is the principal of a charter school. She believes that her employees like to work and that under proper conditions, they will seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs. What theory of management would Felicia most likely follow?

McGregor's Theory Y

Nathan is a sole proprietor. How is the income earned in his business taxed?

Nathan pays one tax that includes both the business and his personal income.

Taryn, Kate, and Jillian all work at a department store in the mall. They have been working there for the same amount of time, and they all have similar educational and employment backgrounds. Jillian has just discovered that Taryn and Kate both make more money than her. What is an unethical or illegal behavior Jillian may exhibit to equalize the situation?

She may equalize the situation by stealing items from the store. Correct

What is a defining characteristic of public corporations?

Their stock can be bought, sold, or traded by anyone.

What is the difference between Theory X and Theory Y managers as it relates to Maslow's hierarchy of needs?

Theory X managers focus on physiological and security needs, while Theory Y managers address Maslow's high-level needs as well as physiological and security needs.

What is a true statement about the board members of a corporation?

They have a duty of care and loyalty to oversee the management of the firm.

A company has started using methods to give employees more responsibility and control and to involve them more in their work. The company views employees as team members and encourages them to share their ideas about how to improve its technology products. What is the benefit to using these methods?

They motivate employees to higher levels of productivity and quality.

What is an effective practice with regards to tactical plans?

They should be periodically reviewed and updated by an organization's management.

Theory Z was first described by

William Ouchi.

A corporate raider is trying to take over the Cliff Company. In an attempt to avoid this hostile takeover, The Cliff Company is requiring a large majority of stockholders to approve the takeover. Which method of evading a takeover attempt does this describe?

a shark repellant

Which form of business ownership is directly linked to the life of its owner and his or her ability to work?

a sole proprietorship

A characteristic of joint ventures is that they

are popular in situations that call for large investments.

The legal documents that identify the basic agreements between partners are called

articles of partnership.

Pierre is a manager at a women's clothing store. He is very particular about how things are done, right down to how the shirts are folded and the positioning of the mannequins. He uses his authority and economic rewards to get his employees to comply with his directions. What type of manager is Pierre?

autocratic

McGregor's Theory X assumes that workers

avoid responsibility

Chrissy wants to develop a list of possible courses of action to draw more customers to her shop, so she calls a meeting of her sales staff. Together, they discuss the issue and suggest ideas to solve the problem. This is called

brainstorming

When two companies of different industries join together, it is an example of a

conglomerate merger.

Aiden is assessing the appropriateness of a proposed option to resolve his company's product safety issues. When considering the consequences of the option, he should

consider its impact on the organization as a whole.

A ________ is a legal entity, created by the state, whose assets and liabilities are separate from its owners.

corporation

What is a disadvantage of a partnership?

difficulty in selling the partnership interest

Emma manages workflow at a magazine. She sets and implements the deadlines and encourages the writers and editors to do their work. What managerial function is Emma fulfilling?

directing

Providing incentives to employees to motivate them toward achieving organizational objectives relates to the management function of

directing

Tasty Joe is a chain of small coffee shops that are located in college towns and mostly employ students. The company offers flexible scheduling, employee scholarship programs, and opportunities for advancement. As a result, it has loyal employees who have high levels of productivity. Based on this scenario, employees of Tasty Joe should have

high morale

When selecting the best option among a series of possible decisions

it may be possible to use a combination of several options.

Historically, Tom's Tool Works has used specialization to increase productivity. However, Tom has noticed that his employees seem bored with their regular tasks and productivity is actually declining. Tom decides to reduce employee boredom by allowing workers to perform a greater variety of tasks and learn new skills. He is most likely adopting

job rotation.

Which option is likely to be most effective for retaining employees who are trying to juggle their work duties with other responsibilities and needs?

job sharing

In his classical theory of motivation, Frederick Taylor believed that two things would improve worker productivity: linking pay to output and

job specialization.

All of the following are keys to a successful partnership EXCEPT partners must -have different skill sets or resource contributions. -maintain effective communication skills. -focus on customer satisfaction and product quality. -keep profit sharing equal regardless of contributions. -maintain transparency with stakeholders.

keep profit sharing equal regardless of contributions.

All of the following are ways technology is helping today's sole proprietors succeed EXCEPT -computers, copiers, scanners, and websites allow them to interact quickly with customers, suppliers, and others. -smartphones and tablet computers allow them to work as they travel. -e-mail and social networking have made it possible for them to develop in the services area. -landline telephones allow them to make free long-distance calls to customers, suppliers, and others.

landline telephones allow them to make free long-distance calls to customers, suppliers, and others.

April is a doctor who is forming her own medical practice. She wants her practice to be flexible, simple to run, and free from required meetings, minutes, or resolutions. Her goal is to blend the best characteristics of corporations, partnerships, and sole proprietorships. What form of business ownership seems most in-line with April's goals?

limited liability company

For an organization, the first step in the management function of controlling is to

measure the actual performance.

The specific operations of an organization, plant, division, or department would most typically involve the ________ of the company.

middle management

Who is responsible for tactical and operational planning in an organization?

middle managers

Jake starts his own catering business. He creates a website for the business, which states that his purpose is to provide his customers with delicious food at a fair price. For Jake's company, this is its

mission statement.

Isaac starts a consulting firm with his friend Arnie. They decide to equally share the profits and have unlimited liability for the debts of their business. Such unlimited liability can be a distinct disadvantage for Isaac if he has

more financial resources than Arnie.

The process of building relationships and sharing information with colleagues who can help a manager achieve the items on his or her agenda is referred to as

networking

Books to Grow, a corporation owned and managed by volunteers, supplies books and educational materials to impoverished children in Latin America. Its focus is not on earning a profit but on serving the community. Books to Grow is an example of a(n)

nonprofit corporation.

Strategic plans generally cover a time frame of

one year or longer.

Dividing work into small units and assigning it to specific individuals is a task related to the management function of

organizing

A ________ is an association of two or more persons who carry on as co-owners of a business for profit.

partnership

In the United States, workers' ________, as defined by Maslow, have largely been met by minimum-wage laws and federal occupational safety standards.

physiological and security needs

A difference between common stockholders and preferred stockholders within a corporation is that common stockholders

receive dividends after preferred stockholders.

According to Herzberg's theory, what is a motivational factor?

recognition

Which is the first step in decision making?

recognizing and defining the decision situation

Lately, Frank has trouble starting his car, making him late for work. Today, his car won't start at all. Since there is no public transportation for him to get to work, he needs to get a new car. After shopping and comparing models, Frank is now ready to sign the paperwork on a new SUV. What is the "need" in this scenario?

requiring a car for work and not having one that functions

Lloyd is the manager of the marketing department for a large firm. His department was given 3 new computer systems. Lloyd must determine which of his employees should get the new equipment. By doing so, Lloyd is acting as a

resource allocator.

Tanker Corp., an oil tank manufacturing company, allocates one task to an employee working from 8:00 a.m. to 12:30 p.m. and allocates the same task to be completed by another employee working from 12:30 p.m. to 5:00 p.m. This is an example of job

sharing

Wayne is a manager of a large pharmaceutical firm. He often meets with consumer groups to discuss the safety of the company's new drugs. When he does this, he is acting as a

spokesperson

Hiring people to carry out the work of an organization is known as

staffing

Sounds Deluxe, a stereo and audio electronics company, encourages its employees to work together to make decisions that reinforce the company's mission and values. Each employee brings his or her own unique insights, and by discussing these insights with other employees, they collectively develop innovative ideas or decisions that most likely would not have been reached by one or two people. This scenario explains

teamwork

Nancy works in a factory that produces dolls and other toys. To improve productivity, Nancy's manager broke down each job into its component tasks, determined the best way to perform each task, and specified the output to be achieved by each worker performing the task. As a result, Nancy is expected to add arms and legs to 50 dolls per day. She is paid $2.50 per doll, but if she exceeds 50 dolls in a day, she receives an additional $1.50 per doll. This scenario relates to

the classical theory of motivation.

Maslow's theory maintains that

the more basic needs at the bottom of the hierarchy must be satisfied before higher-level goals can be pursued.

All of the following are challenges managers confront in the business world today EXCEPT

the stagnant nature of the workforce.

Soumya manages a small diner. She notices some of her employees stealing fries and other food off patron's plates before bringing the food out to the tables. When she sees employees doing this, she punishes them by taking a portion of their tips and distributing that money to the employees who don't steal food from plates. What is an undesirable long-term side effect that may result from such punishments?

there may be increased turnover

An advantage of corporations over sole proprietorships is that

unlike sole proprietorships, the existence of corporations is unaffected by the death or withdrawal of any of the stockholders.