Exam 2 - Business
Minorities are not interested in becoming entrepreneurs.
Business ownership by minorities is increasing at a much faster rate than the national average.
An excellent way of putting the informal organization to work for the good of the company is to bring informal leaders into the decision-making process.
True
An organization that has undergone reengineering has completely redesigned its business structures and processes in order to improve operations.
True
One of the reasons small businesses continue to thrive in the United States is outsourcing.
True
One of the reasons why there has been a dramatic increase in the number of small business startups is rapidly changing technology.
True
The most common use of a business plan is to persuade lenders and investors to finance the venture.
True
Export management companies:
Handle all aspects of exporting, for a percentage fee of the business
Andy Yocom was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group Inc. What should he include in his business plan?
*All of the above* - an analysis of the market in which the company will operate, management plan, financial plan, and the elements of the company that make it unique.
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* - A business plan is a formal written statement that describes in detail the ideas for a new business and how it will be carried out.
Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing.
*Debt* - Debt financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.
The two sources for debt financing are angel investors and venture capitalists.
*False* - Those are the two sources of equity financing.
_____ 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* - Group cohesiveness is the degree to which group members want to stay in the group and tend to resist outside influences.
Like many other companies, Robert Mondavi Winery uses _____ to systematically compare the actual performance of each employee with his or her expected performance.
*Performance appraisals* - A performance appraisal is a comparison of actual performance with expected performance to assess an employee's contributions to the organization.
One of the advantages of a narrow span of control is:
A high degree of control
Which of the following is a key attribute of the virtual corporation?
All of the above are key attributes of the virtual corporation.
One of the advantages of the matrix structure is:
All of these
_________are individual investors or groups of experienced investors who provide funding for start-up businesses.
Angel investors
_____ is the process of negotiating labor agreements between union members and management.
Collective bargaining
A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:
Cross-functional team
______ is the sharing of job duties and authority with subordinates.
Delegation of authority
List four common causes for business failure.
Economic factors Financial causes lack of experience Personal reasons such as the owner's decision to move onto another opportunity
What is the first step in the employee selection process?
Initial screening
What two documents do human resource planners use to find the right people for the right job?
Job description and Job specification
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
Which of the following elements does NOT typically appear in a well-prepared business plan?
Names of all employees
The _____ Act protects the retirement income of employees and retirees.
Pension Reform
A tall organization structure has many managerial levels and a long chain of command.
True
What is job rotation?
Reassignment of workers to several different jobs over time so that they can learn the basics of each job
One of the advantages of work group cohesiveness is:
Reduced employee turnover
Privately owned and managed _____ are licensed by the SBA and provide long-term financing for small businesses.
Small Business Investment Companies
The quality control engineer at a petrochemical refinery is in a _____ position.
Staff
What is human resources management?
The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals
List three advantages that small businesses have over larger, more complex companies.
The text lists the following four: Greater flexibility More efficient operation Greater ability to service specialized markets More personal service.
Venture capital:
is financing obtained from investment firms that specialize in financing small, high-growth companies
The virtual corporation expands the traditional boundaries of an organization.
True
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
The _____ corporation is a network of independent companies linked by information technology to share skills, costs, and access to one another's markets.
Virtual