Intro to Business Chapter 6-11 Review for Midterm

Agile methods of software development may NOT always produce:

A market release of a product

Which of the following is NOT true of a sole proprietorship?

A sole proprietor may only use his or her legal name for the business.

Why do companies often describe acquisitions as a "merger of equals"?

Acquisitions and takeovers often carry negative connotations.

Flextime is beneficial because it leads to:

All of these answers : Higher efficiency Less fatigued workers Better motivation

Which of the following can be used to measure the efficacy of a KM strategy?

All of these answers: How long it takes to respond How satisfied the employees feel, How much is made from new products

When considering a merger and acquisition, businesses must consider which of the following factors?

All of these answers: Increased willingness to pay, Shared activities ,Economies of scale

New technologies are allowing more women and young people to start businesses. This is mainly because

All of these answers: shipping companies such as FedEx allow businesses to be replicated in different cities globally. new developments in technologies allow for businesses to be scaleable across different regions. new developments in technology allow entrepreneurs to start businesses with less capital.

Framing is effective because it:

Allows people to make decisions quicker

Which one of the following is NOT one of the eight principles for the quality management system standard?

Savings approach

The basic drive of motivation is:

Minimizing pain and maximizing pleasure

A private or public corporate entity in which an existing government owns a stake through a holding company is referred to as a

government-linked company.

One of the factors driving home-based franchising is that

home-based franchisees with little financial resources can use their home as their business space.

A goal is important because:

it establishes a specified direction AND a measure of performance.

An organization where the liability of the business owners is limited to the full, paid-up value of the share capital is referred to as a

limited liability.

Industries with a high concentration of small businesses generally require

little investment capital up front.

The section of the business plan that states how a company will sell and communicate to its potential customers and suppliers is described in the

marketing and sales management section.

Expectancy is usually based on:

past experience All of these answers Perceived difficulty of goal Self efficacy

According to the U.S. Small Business Administration, what percentage of businesses fail within the first four years of launching?

56%

Successful small business owners often need a high level of _______, due to the high likelihood of drawbacks and failure.

Perseverance

The correct order of Maslow's hierarchy is: (bottom of pyramid to top)

Physiological, Safety, Interpersonal, Esteem, Self-Actualization

Which of the external environment theories describe factors in the context of an industry's competitive dynamics?

Porter's Five Forces

Functional management works best with businesses that:

Produce a standardized good or service at large volume and low cost

A Theory Y manager would NOT assume that the average person:

Is self-centered

Which of the following is NOT true about cooperatives?

Co-ops only exist in agriculture

In improving upon the 'silo' critique of functional management, matrices allow which of the following to enable strong collaboration?

Communication across task boundaries

Which of the following traits was NOT found to be related to leadership?

Manipulation

The process of dispersing decision-making governance closer to the people, citizens, employees, or other elements of the organization or sector fits the definition of which of the following?

Decentralization

Low-level managers are NOT responsible for which of the following:

Designing and implementing reward systems

Which one of the following is an example of a strategic operation decision?

Determining how labor and equipment are organized

Work specialization for greater efficiency represents which of Schein's four elements?

Division of labor

Which organizational structure is best utilized by large companies in pursuit of scope economies?

Divisional

Which type of organizational structure faces strong competition and has high levels of employee accountability?

Ecology

To be eligible for S corporation status, a corporation must have no more than

100 shareholders.

In the U.S. economy, employment generated by franchised businesses grew by what percentage between 2001 and 2005?

12.6%

What is the difference between a jury and a committee?

A committee will perform functions after the decision, while a jury is decision only.

Which of the following statements about business divisions is NOT true?

A corporation is not responsible for all its divisions

Inventory management is needed to address the following concerns, EXCEPT:

Budget surplus

The controlling process is responsible for which of the following:

Evaluating whether or not goals have been met

Middle-level managers are responsible for which of the following:

Executing organization plans in comformance with the objectives of top management

Which of the following is a disadvantage to employing job enrichment techniques?

Expectations of greater levels of pay

The critical conceptual advantage of a modular structure could best be generalized as which of the following?

Flexibility

There area variety of methods to alleviate friction in the adaptation process. Which is defined as collecting quality data from different departments through sharing opinions and experiences?

Focus groups

Which of the following is NOT an educated risk regularly taken by good managers?

Ignoring customer needs for the benefit of the business

Who usually controls the day-today activities of a corporation?

Individuals appointed by members

Which of the following is NOT true about the staffing function?

It is an intermittent process

Which of the following is NOT a feature of capacity planning?

It requires a significant capital input

The advantages of cross-training employees include all of the following, EXCEPT:

Lowers cost per employee

Which one of the following is NOT considered a basic principle of conceptual skills?

Motivating employees on day-to-day activities

Which of the following is NOT a step in the decision making process?

Multiple decisions are made, executed and then evaluated

Which of the following is NOT true regarding the legal aspects of nonprofit organizations?

Non-for-profit organizations are not required to have board members or steering committee members.

Which of the following is NOT a step in outsourcing?

Opening a new plant in a foreign country

Most factories would likely use which type of facility layout?

Product layout

The Franchisee Payments portion of a franchise agreement typically covers which of the following?

Renewal and transfer fees

Which of the following characteristics is NOT conducive with entrepreneurial drive?

Risk aversity

Generally speaking, organizations tend to see which characteristic decline over time (as observed by organizational ecologists)?

Risk of mortality

Which of the following is currently the dominant topic of discussion among supply professionals?

Sustainability

An analytical mindset does NOT include which of the following:

The ability to make irrational decisions

System 4 management can NOT be characterized by which of the following:

The bulk of decisions are taken at the top of the organization

According to Elton Mayo, the lesson from the Relay Assembly experiments was:

The power of teams

The use of positive punishment by board-certified behavior analysts is only allowed if:

There is a danger to the person or to others

A worker cooperative is unique in that:

There is no outside owner of the cooperative

Which of the following is NOT an example of supply chain sustainability?

Using a more than necessary amount of resources

Which of the following is an example of external financing?

Venture capital investing

Which of the following is not an area in which goals affect outcomes?

affection

Small businesses often face a variety of problems related to their size because they

are often vulnerable to undercapitalization.

The amount of franchise or capital values tax limited liability companies must pay is based on

company revenues.

Which demographic has seen a great deal of recent growth in entrepreneurial areas?

women

Which one of the following is NOT an example of a Total Quality Management (TQM) practice?

working harder

Which of the following organizations would potentially benefit from a flat hierarchy?

A consultancy partnership, with each consultant holding a specialty in a functional business area

Top-level managers are NOT responsible for which of the following:

Assigning employees tasks

Entrepreneurs can increase their odds of success by avoiding which of the following drawbacks when starting a small business?

Failing to set aside cash reserves that can be used during economic downturns

Under what circumstance can corporations legally evade double taxation?

All of these answers; S corporations, The recipient of the dividend is entitled to a tax credit in some countries, In some systems, dividends are taxed at a lower rate

Which one of the following is a characteristic of the service sector?

Intangible products

A corporation can be forced to shut down by the government if:

It breaks the law

Which of the following best characterizes the last 80 years of Taylorism?

It has become obsolete as a theory but parts of it are still relevant

Often referred to as 'silos', the functional structure focuses on grouping areas of specialty within different functional areas (i.e. IT, finance, etc). It is often argued that this strategy works best for which type of company?

Large companies producing high quantities of standardized goods at a low price

The presence of the five core job dimensions lead employees to experience all of the following EXCEPT:

Lower teamwork capability

Which one of the following best explains the effect of productivity improving technologies?

Lowering factors of production that go into the production of economic output

Which of the following is NOT necessarily a result of planning?

Making a decision quickly

An organization that pools individuals with similar skills and creates information channels across task boundaries is referred to as which type of organizational chart?

Matrix

The goal of a split test is to:

Measure the impact of two different version on an actionable metric

The "version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort" is the :

Minimum viable product

One of the drawbacks of the Ouchi theory is:

Promotions tend to be slower than usual

Which of the following is NOT a result of technological change in supply chain optimization (SCO)?

SCO now focuses on delivering products to customers at low cost and high profit

Understanding how different aspects of the organization combine to form a cohesive whole is best described as:

Systems thinking

The idea of synergy defines the team-based structure. What is meant by synergistic efforts?

The end product exceeds the sum of it's parts

In response to economic conditions, employment in small businesses

declines when the economy is doing well and increases when the economy struggles.