BUSN Ch 5,6,7,9 test
In 2005, BridgePort Brewing Company expanded sales of its BridgePort India Pale Ale, and BridgePort Black Strap Stout into Alabama, Georgia, Kansas, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee and Texas. These states will join BridgePort's current distribution markets of Alaska, Arizona, California, Colorado, Idaho, Montana, New Mexico, Oregon, and Washington. When the brewery allocated resources to increase its production and distribution, it would have relied on which of the following management functions?
organizing
The Austrian-company Wienerberger is the world's largest brickmaker. It had to use the management function of _____ when it integrated the employees and manufacturing facilities that it gained from a merger with a brickmaking company in Great Britain.
organizing
Pharmacie & Upjohn, a pharmaceutical company, uses a functional structure (research, development, manufacturing, and marketing) within each of its three largest major product divisions. This company is an example of a:
matrix structure
in order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his employees. Siegel used a(n) _____ style to increase Lacoste's sales.
autocratic
Among managers there are three distinctive leadership styles. They are:
autocratic, participative, and free-rein
Which of the following is NOT one of the four functions of management?
Budgeting
The difference between the small business owner and the entrepreneur is that the entrepreneur:
assumes the risk of the business
_____ is financing obtained from investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.
Venture capital
A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.
committee
The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).
debt; equity
Specialization refers to the:
degree to which tasks are subdivided into smaller groups
A business plan:
describes in detail the idea for the new business and how it will be carried out
Top management usually performs all of the following tasks EXCEPT:
direct workers on the assembly line
Once the business plan is finished, the next step is to:
find financing for the business
Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to:
look for customers
Dean Jager is the supervisor of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all its volunteer staff efficiently. Jager is involved in _____ planning.
operational
Many organizations that experienced success using problem-solving teams expanded the team concept to allow team members to have greater responsibility in making decisions, implementing solutions, and monitoring outcomes. These highly autonomous groups are called:
self-managed work teams
Who provides the start-up financing for the majority of new small businesses?
the business owner and his or her family and friends
Andy Yocom was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group Inc. What should he include in his business plan?
the elements of the company that make it unique a management plan a financial plan an analysis of the market in which the company will operate
Division of labor refers to:
the process to dividing work into separate jobs
All of the following are characteristics of an entrepreneurial personality EXCEPT:
the willingness to be a follower rather than a leader
In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an appropriate question to ask?
Are there any problems with the business? Why are you selling? Is the business operating at a profit? Will the customers stay with the business?
____ could be used to explain why members of the night shift at a textile mill refuse to fill openings on the day shift even though most of the people who work at the plant feel day work is preferable to night work.
Group cohesiveness
_____ is the degree to which group members want to stay in the group and tend to resist outside influences.
Group cohesiveness
Intrapreneurs:
-receive regular salaries and employee benefits -have a high degree of autonomy in spite of the fact they work for a large corporation -run mini-companies within large corporations -have the characteristics of creativity, vision, and risk taking.
Which of the following is a characteristic of the entrepreneurial personality?
Ambitious
_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.
Angel investors
Which of the following statements about the committee structure is true?
Committees can be slow to reach a decision.
_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.
Debt
____ is the process of dividing the work and assigning tasks to workers.
Division of labor
_____ financing is a form of financing consisting of funds raised through the sale of stock in a business.
Equity
Businesses close down for many reasons. Which of the following is NOT a typical reason for a business failure?
Expenses were lower than the owner expected.
Which of the following is NOT one of the five key types of power?
Influential RATIONALE: Reward power is power derived from an individual's control over rewards.
_____ are entrepreneurs who apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own. They enjoy a high degree of autonomy while receiving a regular salary and financial backing from their employer.
Intrapreneurs
____ is the process of guiding and motivating others toward the achievement of organizational goals.
Leadership
_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.
Management
_____ managers are the managers concerned with implementing the plans and policies of top managers and supervising lower-level managers.
Middle
_____ are entrepreneurs who start a series of companies.
Multipreneurs
Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The establishment of a new company and assigning the employees in the division the task of making an idea a reality requires which management function?
Organizing
_____ involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals.
Organizing
_____ provides the structure of people, positions, departments, and activities within which the company objectives can be accomplished.
Organizing
The world's largest bank. Deutsche Bank set as its objective to make its name more recognizable in the United States. The success of its decision to sponsor a PGA golf tournament to accomplish this organizational objective will ultimately depend on which management function?
Planning
Hannah Li wants to quit her job as a legal secretary and start her own small business. She knows that she will be successful if she can find the right idea. Where can Li look for ideas for her new business?
Problems she noticed in her old job Other businesses in other regions of the country Suggestions from her family Her interest in the history of Asian art
_____ planning is the creation of long-range, comprehensive objectives and the development of long-term courses of action.
Strategic
_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is less than one year long.
Tactical
The first step in starting your own business is:
a self-assessment
The difference between small business owners and entrepreneurs is that small business owners:
accept the status quo and take a short-term view of the future
Kathy Elliot has decided that she will start an Internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliot's next step is to write a formal _____ before she applies for a business loan.
business plan
Mark Ghermizian had quit his job and was looking to start a small business so he could be his own boss. When he read that people spend up to fifteen minutes every day staring at a bathroom stall door, he decided he would find advertisers who wanted to pay to have their advertising messages on bathroom stall doors. Since he has his idea, Ghermizian's next step is to:
choose a form of business organization
Victorinox is the name of the company that manufactures Swiss army knives. As a result of new regulations governing what passengers could carry with them on airplane trips, the company has lost 30 percent of its business. In other companies, this might have led to business failure, but because Victorinox had _____ plans, it was able to continue to operate profitably.
contingency
A large furniture and appliance rental business is considering sponsorship options. It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers. The rental company has established a:
cross-functional team
Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Retailing for about $5 apiece, the bottles are sold at gift shops in Hawaii, as well as to travel agents nationwide who give them to clients. As a(n) _____, Farmer's annual income exceeds $100,000 annually.
entrepreneur
In 2000, Eric Baker and Jeff Fluhr came up with a concept that would do away with scalping if they had their wish, and everyone used StubHub.com. The Internet company brings people who want tickets and people who have tickets that they are not using together. The company has assisted in the sale of tens of millions dollars worth of tickets annually and is always trying to sell more. It charges a small fee for its assistance. Baker and Fluhr would be classified as:
growth-oriented entrepreneur
A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:
horizontally-organized team
Gord Larose and his friend David Allan worked in Ottawa at Nortel Networks, a giant telecommunications-equipment maker. One Friday afternoon, over a few beers in Larose's kitchen, they dreamed up a scheme for renting software over the Internet. Instead of quitting their jobs, they reported to work on Monday, explained their plan to their boss, and began working to make their idea a reality. Four years later, their idea has evolved into an important division of Nortel called Channelware. Larose and Allan are examples of:
intrapreneurs
One of the disadvantages of the matrix structure is:
lack of cohesiveness
The relatively consistent pattern of behavior that characterizes a leader is called his or her _____ style.
leadership
Many classic entrepreneurs are _____ who start small and plan to keep their business small.
micropreneurs
Plant manager Peter Kwillen receives the master budget from divisional headquarters and breaks it down for the three shift managers. He coordinates with other plant managers and manages lower-level managers. Kwillen is a(n) _____ manager.
middle
An organization's _____ is its general purpose or reason for existence.
mission
A _____ is a formal document that states an organization's purpose and reason for existing and describes its basic philosophy.
mission statement
A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out.
mission statement
According to the _____ of the New Mexico Nurses Association, the organization "is committed to advocating for all licensed nurses, promoting lifelong learning, and improving health care for all people."
mission statement
A common use of business plans is to:
persuade lenders and investors to finance the venture
Self-managed work teams:
plan and schedule their own work activities take responsibility for setting their own goals are highly autonomous teams work without any formal supervision
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. The development, maintenance, and allocation of resources to achieve its goal will require:
planning
Management involves:
planning leadership controlling organizing
Angel investors:
provide funding for start-up businesses
One of the advantages of work group cohesiveness is:
reduced employee turnover
Hassan Nasrallah, the leader of Hizbullah: grew up very poor but very smart, and although he wears the robes of a minor Shiite cleric, he is a world-class politician. He has been called the most charismatic figure in the Muslim world. Nasrallah exerts _____ power over his followers.
referent
When your boss gives you a raise, he or she is using _____ power.
reward
Dean Jager is in charge of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all of its volunteer staff efficiently. Jager is a _____ manager.
supervisory
A relatively small group of managers at the head of an organization that establishes overall strategy and long-range goals is called _____ management.
top
Jack Welch, former CEO of General Electric, was known by his employees as "Bloody Jack" because of the downsizing and restructuring he insisted the company do if its various departments were unable to achieve organizational goals. Knowing this nickname, you can assume that Welch used _____ power to accomplish his goals for GE.
coercive
Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing.
debt
Medical diagnostic equipment specialist Georgiana Rutland was asked to attend a medical conference in which the attendees discussed new uses for laser technology in diagnosing certain types of cancer. Rutland exerted considerable influence over the decisions to adopt the laser technology because of her _____ power.
expert
After the World Cup soccer games, Puma, the German sporting goods manufacturer, increased its end-of-year sales target by $641 million. Puma developed _____ plans with a goal that extra sales would come from new product categories the company was introducing, sale of soccer equipment, and consolidation of several subsidiaries.
tactical
Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The ability of the Nortel top management to create this new division and assign employees to it is a result of their having _____ power.
legitimate
When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market. As a result, she has started her own small business to produce and market corn-free desserts. It is a small market, and Logue plans to keep her business small. Logue is an example of a(n):
micropreneur
The _____ of the Booth Western Art Museum reads, "The Booth Western Art Museum will educate, entertain, and inspire a diverse audience by creating a place where people feel welcome, find meaning and value, and delight in exploring the uniqueness of Western American art and culture."
mission statement
The Cooke family has worked for various General Motors's divisions for over four decades. Bennett Cooke works at the Cadillac division. Rondella Cooke works at the Buick division. Their son Tyrone works at the Corvette plant, and their daughter Niome works at the Saturn plant. The Cooke family could tell you that GM is departmentalized by:
product
The world's largest bank, Deutsche Bank, set as its objective to make its brand name as recognizable in the United States as FedEx and Visa are over the next ten years. The implementation of this long-range plan would require _____ planning.
tactical
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. Its primary challenge will be to convince the 2,000 employees it inherited from the government-owned facility to work more efficiently. Manila Water sought to boost employee morale by linking pay to performance. In other words, management has used its _____ power to improve employee productivity.
reward
Reader's Digest Association, Inc., has published Reader's Digest magazine for over 80 years, and many believe the publication is dated and can no longer attract many readers. They believe _____ plans are needed to revamp the magazine's content, editorial staff, and readership.
strategic
When he read Chicken Soup From the Soul, Joe Farmer was struck by how many of the stories mentioned the scent of the islands. So Farmer created bottles filled with Hawaiian air and some scented essence beads. When customers shake the bottles up and open the lids, they're transported back to paradise. While many marketing experts did not think that consumers would buy bottles of air, Farmer has earned more than half a million dollars of sale during his first year of operation. Farmer was an example of a _____ entrepreneur.
classic
Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times music is played and shared among peers. Jain used _____ financing.
equity
Which of the following elements does NOT typically appear in a well-prepared business plan?
names of all employees
When Art Baer read that Singapore would lift its ban on chewing gum, he thought to himself, "There has to be a market there." Baer, 26, knew if he was going to move beyond the daydreaming stage, he had to move fast. After investing $20,000 of his own money into developing a product he called Impress Gum, Baer quit his job, flew to Singapore, talked to the right people in the government, lined up a manufacturer, and hired a marketing firm to promote his gum, which fights tooth decay. Baer is an example of a(n) ______ entrepreneur.
classic
Airline stewards in China will remove someone from the plane if they attempt to bring their own food with them. Instead, passengers must buy the food sold on the plane. The stewardesses have been given _____ power to deal with passengers who won't obey the rules.
coercive RATIONALE: Expert power is power derived from an individual's extensive knowledge on one or more areas.
Spring Airlines is a small budget airline that is based in China. Due to the unfamiliarity of this mode of transportation in China, Spring's employees are often attacked by unhappy customers who demand compensation for flight delays. According to Herzberg, these attacks by passengers would be an example of a _____ factor.
hygiene
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. To achieve this goal, Manila Water's top management will first need to engage in _____ planning to determine what resources are needed to achieve this goal.
strategic
Most firms have three distinguishable levels of management. They are:
supervisory, middle, and top
After graduating from college, Joseph Tantillo decided to start a retail Web site that specializes in personalized Greek apparel. To fund his Web site, he borrowed money from his parents (who expect to be repaid with interest). In other words, he used _____ financing.
debt
Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. During the development of this high-growth company, Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with ______ financing.
equity
Lachlan Stuart is employed by International Paper, a company that values his vision and creativity. To stay ahead in a very competitive industry, International Paper gives Stuart, and his division has almost complete autonomy to develop innovative and effective communications. Stuart is an example of a(n):
intrapreneur
Stuart McFarland is sales manager for a hotel. His job entails leading, motivating, and communicating with employees. McFarland's main management activity is:
leadership
The standards used to determine whether a group member's actions are acceptable are called group:
norms
Which of the following statements describes one the strengths of group decision making?
Group decision making results in a higher-quality decision then individual decision making.
Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. Early in the development of this high-growth company, Arnold and Bradford attracted a group of investors who provided them with money needed to acquire other Internet companies with similar missions. The investment group is called:
angel investors
Dewayne Gibbons of Burger King decided to introduce a new sliced chicken sandwich without consulting any of his subordinates or the franchise. Managers who use this style of decision making exhibit the _____ style of leadership.
autocratic RATIONALE: A democratic leader solicits inputs from all members of the group and then allows members to make the final decision through a vote.
