Learnsmart 4-9

__________ is a management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything works together to achieve the organization's goals and objectives.

Organizing

The organization structure that creates a chain of command with one person at the top and others in ranked order to the bottom is a ____________.

hierarchy

Long hours and a feeling of isolation are two disadvantages of __________-__________ franchises.

home-based

Customers prefer to do business with companies they trust, proving the old saying that __________ is the best policy

honesty

The joining of two films in the same industry is a(n) __________ merger.

horizontal

The definition of __________ __________ skills states: skills that involve communication and motivation; they enable managers to work through and with people.

human relations

A necessary and invaluable aid to entrepreneurs is a competent, experienced __________ who knows and understands small business. This person can help with leases, contracts, partnership agreements, and protection against liabilities.

lawyer

When operations serve different customers with differing needs an intermittent __________ layout should be used in production.

process

Finding the highest quality material resources, the best suppliers, and then negotiating the best prices are all responsibilities of someone in a ___________ role.

purchasing

Rank the forms of business ownership based on ease of starting. Put the easiest form at the top. __________ 1. Sole proprietorship 2. Corporation 3. Partnership

1. Sole proprietorship 3. Partnership 2. Corporation

Rank the following jobs according to their importance in influencing the implementation of ethical standards. List the most influential on top. 1. Supervisor 2. Part-time co-worker 3. Top management 4. Full-time co-workers

3. Top management 1. Supervisor 4. Full-time co-workers 2. Part-time co-worker

Principles proposed by Weber and Fayol that are still useful in today's organizations include: A. written rules, decision guidelines, and records B. staffing and promotion based on qualifications C. fluid and flexible procedures and regulations D. job description

A. written rules, decision guidelines, and records and B. staffing and promotion based on qualifications and D. job description

__________ leadership is a leadership style that involves making managerial decisions without consulting others.

Autocratic

In a decentralized organization the decision-making authority is delegated as far __________ the chain of command as possible. A. Up B. Down

B Down

Which are considered disadvantages of incorporating? A. Limited Liability B. Double Taxation C. Initial Cost D. Extensive paperwork

B. Double Taxation and C. Initial Cost and D. Extensive paperwork

Started by the Small Business Administration in 1991, the __________ program provides very small loans (up to $50,000) and technical assistance to small-business owners. A. help B. microloan C. start-up D. finance

B. microloan

The objective, "avoid criminal misconduct," describes which type of ethical code? __________ A. Integrity-based ethics codes B. Religious-based C. Compliance-based D. Sarbanes-Oxley

C. Compliance-based

When you are faced with an ethical decision, what should be the question you ask yourself that relates to self-esteem? __________ A. Is the proposed action legal? B. Will the action offend anyone? C. How will it make me feel about myself? D. Is it balanced?

C. How will it make me feel about myself?

An employee ordering personal goods from a website during work hours without permission from his employer is __________ A. unethical and illegal B. legal and ethical C. unethical D. illegal

C. unethical

The acronym for using computers to design products is referred to as ___________.

CAD

Analyzing and sequencing tasks and then estimating the time needed to complete each task are the first two steps used in ___________.

PERT

T/F: Corporate Social Responsibility (CSR) and corporate profits can at times go hand in hand

T

T/F: A company that treats employees with respect will usually have employees who respect the company in return.

True

__________ are insiders who report illegal or unethical behavior.

Whistleblowers

Many people do not like working for someone, so being your own __________ is an advantage of sole proprietorships.

boss

The definition of __________ states: coming up with as many solutions as possible in a short period of time with no censoring of ideas.

brainstorming

If a software company and a snack food company merged, it would be called a(n) __________ merger.

conglomerate

Companies that allow their managers to make key decisions to cater to local markets are __________.

decentralized

The benefits of ____________ ____________ ___________ are any department can see the status of an order at any time, shorter time lags between orders and payment, and less staff required to process orders.

enterprise resource planning

The SBA determines whether a business is considered "small" only analyzing how a particular business measures up compared to other businesses in its ____________.

industry

Of the various forms of business ownership, a __________ is an easy way for two individuals to conduct business.

partnership

Positive moral values common to the cultures that subscribe to the Bible, Aristotle's Ethics, the Koran, and the Analects of Confucius include: _________ A. honesty B. cruelty to others C. respect for human life D. cheating and cowardice

A. honesty and C. respect for human life

Compliance-based ethics codes focus on: __________ A. increasing control B. an individual's ethics C. general guiding values D. penalizing wrong-doers

A. increasing control and D. penalizing wrong-doers

A sole proprietorship has a limited life span unless: __________ A. it is taken over by an heir B. one of the partners buys remaining shares C. it is sold to someone else D. there is a leveraged buyout

A. it is taken over by an heir and C. it is sold to someone else

The number ____________ is placed after the ISO, the Greek word for "oneness", to represent the international standard for quality management and assurance.

9001

Choose the answer that refers to a production process that puts components together. A. Process B. Intermittent C. Continuous D. Assembly

D. Assembly

___________ customers are individuals and units withing the firm that receive services from other individuals or units

Internal

__________ are creative who work as entrepreneurs within corporations.

Intrapreneurs

____________ is creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives.

Leading

__________ is a management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

Planning

T/F: Quality control inspectors were historically conducted at the end of the production line.

True

Jason has prepared a comprehensive __________ __________ which includes a cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix.

business plan

The main idea behind mass production is to produce a large number of a limited variety of products at a very low ___________.

cost

When you give employees as much freedom as possible to become self-directed and self-motivated you __________ them.

empower

Integration of all functions into one software program in order to manage operations and inventory in a firm is known as __________ __________ __________.

enterprise resource planning

ISO 14001 is a system that manages a firm's impact on the __________.

environment

A major factor to consider in forming a partnership is the ability of partners to provide additional __________ resources.

financial

An advantage of a __________ organization structure is that lower level employees have authority to respond more quickly to customer needs.

flat

Ed has decided to purchase and follow a business format by becoming a franchise. The ___________ ___________ he will sign gives him the right to use the business name and sell the products of the firm.

franchise agreement

Adjusting to changing markets is a critical ____________ function.

managerial

A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place is referred to as ____________ requirement planning.

materials

A ___________ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting line of authority.

matrix

In a __________ organization, project managers are in charge of teams made up of members from several departments.

matrix

The result of two firms (usually corporations) combing to form one company is called a __________.

merger

Entrepreneurs who are not interested in starting a mammoth corporation, but rather are interested in a balance between lifestyle and work are called __________

micropreneurs

Kendra is considering opening a new business. While writing the business plan, she is answering the following questions: What external success factors affect the industry? How does her business measure up to competition? What can my bakery do to survive and prosper during a recession? What was Kendra performing? A. Operational planning B. A risk analysis C. Tactical planning D. A SWOT analysis

D. A SWOT analysis

According to some research, three out of five new businesses fall. Accordingly, if a business is to have a chance of survival, it is important to be __________ when dealing with customers. _________ A. clear B. cordial C. quick D. honest

D. honest

In the organization with many layers of managers the pyramidal organization chart would be quite tall due to ___________ spans of control (exists when a manager directly supervises only a few subordinates). A. departments B. customers C. broad D. narrow E. suppliers

D. narrow

__________ by function groups workers according to their skills and expertise so they can work together more effectively.

Departmentalization

___________ is the term for giving employees the authority to make a decision without consulting the manager and responsibility to respond quickly to customer requests.

Empowerment

__________ help the country prosper by taking risks and creating thousands of jobs that generate wealth and strengthen the economy.

Entrepreneurs

T/F: Designing machines to do multiple tasks so they can produce a variety of products is called computer-aided design.

False

T/F: If you and a friend start a business together, you have started a sole proprietorship.

False

T/F: In a limited partnership, the liability of the limited partners is unlimited and personal assets are at risk.

False

A modern quality control standard that allows for 3.4 defects per one million opportunities is called __________ ___________ Quality.

Six Sigma

Wayne is starting a small business, but needs help with management training, financial advice, and loans. He should contact the __________ __________ __________.

Small Business Administration (SBA)

_________ __________ force organizations to evaluate their efforts to be socially responsible rather than just feel good about them.

Social audits

T/F: Facility layout depends greatly on the processes that are to be performed.

True

__________ __________ are individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

Venture capitalists

Which organizational theorist promoted the pyramid-shaped organization structure as critical to his bureaucracy-based philosophy?

Weber

In the past many organizations designed rules and regulations to give managers control over employees. An organization's reliance in these rules is called ___________.

bureaucracy

It is extremely important to develop a(n) __________ __________ before going to a bank for a loan, because it shows that you are ware of who the target market is, who the competition is, how much money you need, and exactly how you intend to turn a profit.

business plan

If the structure of an organization is a tall pyramid, it would be likely to have __________ decision making.

centralized

The line of authority that moves from the top of a hierarchy to the lowest level is called __________ __________ __________.

chain of command

A bank has a department for customer accounts and another department for corporate accounts. The bank is departmentalizing by ___________ ____________.

customer group

Tailoring products to meet the needs of individual customers is referred to as mass __________.

customization

The process of setting up individual departments to do specialized tasks is called ____________.

departmentalization

A(n) __________ assumes risk when deciding to start and run a business.

entrepreneur

Getting fired for refusing to support your boss's inflated expense report is a negative consequence of acting __________

ethically

People learn their organizational __________ from observing the standards, values, and behaviors of leaders and other employees.

ethics

Societies set the standards for moral behavior, known as _________.

ethics

It is important to have a committed workforce because employee _________ costs U.S. based businesses about 5% each year and causes about 30% of all business failures

fraud

Departmentalization by __________ may create groupthink, where all members think alike and so make poorer decisions.

function

Gaining financing, knowing how to get started in exporting, and navigating bureaucratic paperwork are major hurdles to consider when getting started in __________ business.

global

The broad, long-term accomplishments an organization wishes to attain are its ____________.

goals

Some companies create __________ structures because the sales department has geographic departments, production is by function, and marketing is by customer groups.

hybrid

According to recent study, offering low-cost offices with basic services to new businesses in the early stages of __________ graduates.

incubator

The __________ cost of incorporating can be expensive because of the need for accountants and lawyers to get started.

initial

A(n) __________ __________ ethics code creates an environment which supports ethically sound behavior by stating an organization's guiding values, shared responsibilities

integrity based

The __________-__________-__________ inventory method is designed to keep a minimum of parts, supplies, and other materials on hand just in time to go on the assembly line.

just-in-time

Guiding and motivating employees to work effectively to accomplish organizational goals and objectives, giving assignments, explaining routines, clarifying policies, and providing feedback on performance are all tasks associated with the ___________ function of management.

leading

When a sole proprietor leaves an ongoing business to future generations, it is said that the owner is leaving a __________.

legacy

A __________ __________ can be initiated by employees, managers, or investors who borrow necessary funds to purchase all shares of a firm's stock.

leveraged buyout

Although members may choose to reconstitute an LLC after it dissolves, limited ___________ __________ is considered a disadvantage of this form of business.

life span

Bob and Dan are doctors in a medical practice. Dan is being sued for malpractice, but it will not affect Bob's assets because they formed a(n) __________ __________ partnership.

limited liability

In line-and-staff structures, staff managers provide advice and support to __________ departments on specialized matters such as finance, engineering, human resources, and the law.

line

Those directly responsible for the achievement of organization goals through production, distribution, and marketing of the company's products and services are its ___________ managers.

line

The __________ function of management designs the structures and systems in which everyone works together to achieve the organization's goals and objectives.

organizing

A common form of cheating in schools today that cuts and pastes information from the internet without giving credit is _________.

plagiarizing

SWOT Analysis is a ___________ tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.

planning

Corporate __________ is the dimension of social responsibility that refers to a position a firm takes or statement it makes on social and political issues.

policy

Using factors like land, labor, and capital to create goods and services is referred to as ___________.

production

When a firm reduces errors before and after delivery to the customer and thus delivers what the customer wants, the firm is said to exemplify the definition of __________.

quality

Making ethical decisions that are fair and balanced over the long term is important to maintaining healthy __________.

relationships

For a department to operate effectively, the organization must allocate it sufficient __________ such as funds and personnel.

resources

Lean manufacturing aims to produce more high quality goods while decreasing the __________ needed.

resources

Factors like the customer needing a lot of personal attention, the product not being easily made, and sales not being large enough to appeal to a larger firm all create opportunities for __________ business success.

small

A systematic evaluation of a company's progress toward implementing socially responsible programs is known as a(n) __________ __________

social audit

Many companies believe they have a role in promoting __________ __________, so they donate to local food banks, promote literacy, and provide computer lessons for inner city children.

social justice

Ease of formation is an advantage of a(n) __________ __________.

sole porprietorship

Employees who advise and assist line managers in meeting their goals are called __________ personnel.

staff

In a line and staff organization, those who advise line personnel but do not have the authority to issue direct orders to them are the company's __________ personnel.

staff

ISO is not part of the government, but is a federation of national ___________ bodies.

standards

Testing samples of the product at all phases of the process to ensure that quality is built in from the beginning is called __________ __________ __________.

statistical quality control

An advantage of partnerships is a longer __________ rate than sole proprietorships, because they become more disciplined and the business's life is based on all the partners.

survival

The definition of __________ __________ states: skills that involve the ability to perform tasks in a specific discipline or department.

technical skills

Less dependence on locating near sources of labor, a firm's ability to choose less expensive locations, and having employees who are in touch with the company from home are all considered the primary benefits of __________.

telecommuting

Working from home via computer and communications technology is called __________.

telecommuting

In a virtual corporation the replaceable firms are joined together on a(n) ____________ basis to create a flexible organization.

temporary

Strategic planning is done by __________ level management.

top

The responsibility of the owner of a sole proprietorship for all the debts of the business is __________ liability

unlimited

A merger between a soft drink company and an artificial sweetener maker could be considered a(n) __________ merger.

vertical

__________-__________ ethics codes emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers. __________-_________ ethics codes define an organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability.

1. Compliance-based 2. Integrity-based

Rank the five steps of the control process. The first step should be on top. 1. Taking corrective action when needed and providing positive feedback 2. Monitoring and recording actual performance or results 3. Communicating results and deviations to appropriate employees 4. Comparing results against plans and standards 5. Establishing clear performance standards

5. Establishing clear performance standards 2. Monitoring and recording actual performance or results 4. Comparing results against plans and standards 3. Communicating results and deviations to appropriate employees 1. Taking corrective action when needed and providing positive feedback

match the goals with the type of business person. A. Entrepreneur B. Micropreneur 1. Desire to grow the business and generate wealth. 2. Desire to remain small and balance lifestyle with work.

A. = 1. B. = 2.

Small companies started by entrepreneurs may grow into large corporations that employ thousands of people. Match the entrepreneurs below with the corporations they started. A. Amazon.com B. Avon C. Kodak D. Facebook E. Starbucks 1. Jeff Bezos 2. Howard Schultz 3. Mark Zuckerberg 4. David McConnell 5. George Eastman

A. = 1. B. = 4. C. = 5. D. = 3. E. = 2.

Select the characteristics of an entrepreneurial team that will be developing and marketing a new product. A. Each from different areas of business B. Members have complementary skills and are creative C. A group of experienced people D. Members compete with each other in order to receive individual credit for outputs

A. Each from different areas of business and B. Members have complementary skills and are creative and C. A group of experienced people

Which of these categories should social audits measure? _________ A. Product safety B. Profit margins C. Profits D. Losses E. Community relations F. Environment

A. Product safety and E. Community relations and F. Environment

Which of the following are quality of life issues that must be considered by companies when choosing a facility location? A. Schools B. Strategy C. Crime D. Climate

A. Schools and C. Crime and D. Climate

One company's purchase of the property and obligations of another is called a(n) __________ A. acquisition B. merger C. LLC D. partnership

A. acquisition

The concern businesses have for the welfare of society, not just for their owners is: __________ A. based on a commitment to integrity and respect B. unethical C. corporate social responsibility D. called stakeholder interest

A. based on a commitment to integrity and respect and C. corporate social responsibility

Working in a successful business is a good way to learn the operations and could: A. be a step in buying out the owner B. be unethical C. teach bad business habits D. lead to a loss of time and money

A. be a step in buying out the owner

Department managers are given authority and responsibility for the work of a department to: A. control its entire process B. reduce the controls needed for the process C. increase the controls needed for the process D. reduce the number of employees needed

A. control its entire process

Among the reasons that disagreements can ruin a partnership are: __________ A. disagreement over workload B. the ability to borrow more money C. opposing management styles D. arguing over profits

A. disagreement over workload and C. opposing management styles and D. arguing over profits

When the corporation pays a tax on its profits and individual stockholders each pay tax on dividends distributed by the corporation, it is called: __________ A. double taxation B. return taxes C. a stock option D. splitting the stock

A. double taxation

Select the attributes of a corporation. __________ A. liability separate from owners B. state chartered C. unlimited liability D. legal entity

A. liability separate from owners and B. state chartered and D. legal entity

Entrepreneurs must recognize that they need competent and motivated employees. Since they can't compete with larger firms' pay and benefits, they need to: A. provide more challenging opportunities to learn B. delegate more often C. pay higher wages and provide more benefits D. be respectful of employees' opinions

A. provide more challenging opportunities to learn and B. delegate more often and D. be respectful of employees' opinions

Advantages of home-based work include: __________ A. relief from commuting stress B. shorter work hours C. less feeling of isolation from the company D. low overhead expenses

A. relief from commuting stress and D. low overhead expenses

Line personnel are those responsible for the achievement of organizational goals such as making a product. They include such employees as: A. the supervisor of a department that cuts out tabletops B. the payroll department C. members of the human resources department D. the public relations group

A. the supervisor of a department that cuts out tabletops

Which of these steps are used in PERT? A. Identifying supplies needed B. Analyzing and sequencing tasks C. Estimating time for tasks D. Creating a bar graph

B. Analyzing and sequencing tasks and C. Estimating time for tasks

Who performs tactical planning in an organization? A. Staff managers at all levels B. Managers or teams of managers at lower levels C. Managers or teams of managers at upper levels D. Only top management

B. Managers or teams of managers at lower levels

Which of the following is true regarding businesses with low failure rates, such as veterinary services, dental practices, and medical practices? A. They grow very large in a short time. B. They tend not to produce much growth. C. They are easy to start. D. They often require advanced training to start.

B. They tend not to produce much growth. and D. They often require advanced training to start.

Venture capitalists try to safeguard their investment by taking some control over the business. What could happen if venture capitalist takes too large a stake in your company? A. You could run out of money. B. You could lose control of the business. C. You could gain control of the business. D. You could destroy employee morale.

B. You could lose control of the business.

Managers classified as middle management include A. supervisors B. division managers C. plant managers D. general managers

B. division managers and C. plant managers and D. general managers

Lean manufacturing uses: A. more resources B. less resources C. less time D. more time

B. less resources and C. less time

The advantages of centralized authority in organizations include: A. increased flexibility B. more efficiency C. less top management control D. more responsiveness to customers

B. more efficiency

Home-based franchises have many advantages such as: __________ A. ease of obtaining financing B. relief from the stress of commuting C. feeling more isolated D. low overhead expenses

B. relief from the stress of commuting and D. low overhead expenses

Which of the following is an advantage related to conducting quality control throughout production instead of at the end of the production line? A. Scrapping the entire product is less costly. B. More employees are required to inspect items. C. Finding defects prior to completion saves expensive resources. D. Reduced customer satisfaction if a defective product is missed.

C. Finding defects prior to completion saves expensive resources.

A firm that has a marketing department organized geographically and a production process organized by a function has which type of department structure? A. Process B. Customer group C. Hybrid D. Geographic

C. Hybrid

Which of the following represent examples of how corporations set positive standards of ethical behavior? __________ A. Paying employees on specified pay dates most of the time. B. Ignoring hazardous job conditions that exist in the company's facilities C. Reevaluating its ethics codes based on the input of its customers. D. Periodically asking every employee to evaluate the company's ethics performance.

C. Reevaluating its ethics codes based on the input of its customers. and D. Periodically asking every employee to evaluate the company's ethics performance.

During the most recent economic crisis, Macy's department store switched to a decentralized structure by giving local managers more authority to buy, price, and promote merchandise. Why would they take such measures? A. To layoff corporate level employees. B. To narrow the span of control. C. To merchandise appropriately for each area. D. Local managers salaries are lower than they are at corporate.

C. To merchandise appropriately for each area.

One of the greatest advantages small businesses have is the ability to know their customers better and: A. increase supply as much as needed B. obtain the needed financial resources C. adapt quickly to their needs D. benefit from economics of scale

C. adapt quickly to their needs

The arrangement of jobs around the needs of various types of customers is known as: A. job specialization B. departmentalization by process C. departmentalization by customer group D. departmentalization by geographic location E. departmentalization by product

C. departmentalization by customer group

A partnership where all owners share in operating the business and in assuming unlimited liability for the business's debts is a: __________ A. cooperative B. master limited partnership C. general partnership D. limited partnership

C. general partnership

John started his small business with only a few employees, but in a few years had twice as many. The community around his business also flourished, partly helped by a new stream of money. This exemplifies: A. how to start a business B. how to eliminate business competition C. how small businesses influence the economy D. the large demand for landscaping

C. how small businesses influence the economy

Problem solving differ from decision making because problem solving A. is a more formal and lengthy process B. deals with setting strategic plans C. is less formal D. usually requires faster action

C. is less formal and D. usually requires faster action

The definition of ___________ states: specific, short-term statements detailing how to achieve the organization's goals. A. vision B. mission C. objectives D. goals

C. objectives

When a firm assigns one or more of its functions to an outside organization, it is : A. insourcing B. delegating C. outsourcing D. inefficient

C. outsourcing

A mission statement should address an organization's A. financial resources B. equity holdings C. self-concept D. customer needs

C. self-concept and D. customer needs

The definition of __________ __________ states: the process of developing detailed, short-term statements about what is to be done, who is to do it, and how. A. business plan B. swot analysis C. tactical planning D. operational planning E. strategic planning

C. tactical planning

The type of structure in a firm where there are several levels of managers each with a narrow span of control is called a: A. flat organization B. matrix organization C. tall organization D. centralized organization

C. tall organization

The first step in the decision-making process is to define the situation. Rank the remaining steps in the process with the next step on top and the last step ranked at the bottom of your list. 1. Decide which alternative is best 2. Develop alternatives 3. Determine whether the decision was a good one, and follow-up 4. Describe and collect needed information 5. Do what is indicated (begin implementation)

4. Describe and collect needed information 2. Develop alternatives 1. Decide which alternative is best 5. Do what is indicated (begin implementation) 3. Determine whether the decision was a good one, and follow-up

Rank the order in which members of a corporation are chosen in order to separate ownership from management. Start at the top of the managerial hierarchy. 1. Managers hire employees 2. Board of Directors hire officers of the corporation 3. Officers hire managers of the corporation 4. Owners/stockholders elect board of directors

4. Owners/stockholders elect board of directors 2. Board of Directors hire officers of the corporation 3. Officers hire managers of the corporation 1. Managers hire employees

Match the type of planning to its focus A. Strategic B. Operational C. Tactical 1. looks at the organization as a wold; long-range 2. focuses on specific supervisors, department managers, and individual employees; very short-term 3. designed to implement the activities and objectives specified in the strategic plan; short-range

A. = 1. B. = 2. C. = 3.

As the owner of a small bookstore, while monitoring the environment, you discover that Barnes and Noble will pen a store in your area. What must you do based on this information? A. Adjust to the new realities. B. Plan for changes, but wait and see if you need them. C. Hope the information is inaccurate, and do nothing. D. Close shop and move to a different location.

A. Adjust to the new realities.

Which of the following exhibit subtle consequences of treating employees poorly? _________ A. Blaming mistakes on others B. Hording resources C. Increased commitment D. Making results look better than they are

A. Blaming mistakes on others and B. Hording resources and D. Making results look better than they are

What type of departmentalization is shown in this example? I. Vice President (international operations) a. Canadian division b. Japanese division c. European division d. Korean division A. By geographic location B. By product C. By process D. By customer group

A. By geographic location

Max Weber's principles of organization resembled Fayol's. In addition, Weber emphasized which of the following principles? A. Consistent procedures, regulations, and policies B. Subordination of individual interests to the general interest C. Written rules, decision guidelines, and detailed records D. Job descriptions

A. Consistent procedures, regulations, and policies and C. Written rules, decision guidelines, and detailed records and D. Job descriptions

Which of the following tasks are associated with the planning function of management? A. Developing strategies to reach those goals B. Setting organizational goals C. Determining resources needed D. Rewarding outstanding performance

A. Developing strategies to reach those goals and B. Setting organizational goals and C. Determining resources needed

Regarding ethics in business, which of the following is generally true? __________ A. Employees behave ethically if management insists upon it. B. Ethics are based on character. Individuals are either ethical or they are not. C. Ethics has nothing to do with management. D. Managers are not responsible for the unethical behavior of other individuals.

A. Employees behave ethically if management insists upon it.

There are many good reasons for going global. Which of the following are examples of such reasons? A. Exporting can absorb excess inventory B. Exporting can extend product life C. Exporting can simplify shipping needs D. Exporting can reduce the amount of bureaucratic paperwork

A. Exporting can absorb excess inventory and B. Exporting can extend product life

What does the production process add to materials? A. Form utility B. Place utility C. Time utility D. Value

A. Form utility and D. Value

Kirby was an experienced manager who gathered his team each morning and assigned tasks. Lucy supervised a second team; she did not tell them what to do but what needs to be done overall. Lucy's team constantly showed higher productivity. What does this example demonstrate? A. How managers are changing to progressive team leadership B. Why older employees make poor managers C. How a need for diversity in the workplace can cause unfair treatment D. Why order giving and discipline are the most important managerial roles

A. How managers are changing to progressive team leadership

A comprehensive set of environmental standards that encourages companies to conduct business in a cleaner, safer, and less wasteful way is known as __________. A. ISO 14001 B. ISO 16000 C. ISO 8000 D. ISO 9000

A. ISO 14001

What are some of the disadvantages of operating a franchise? __________ A. Management regulation B. Recognized name C. Shared profit D. Large start-up costs

A. Management regulation and C. Shared profit and D. Large start-up costs

Which of the following would be unethical in a business setting? __________ A. Misleading a customer so she will sign a contract. B. Secretly extending a customer's contract without permission. C. Hanging up on a customer to prevent the person from cancelling a service D. Convincing a customer to sign up for and extended warranty at the time of purchase.

A. Misleading a customer so she will sign a contract. and B. Secretly extending a customer's contract without permission. and C. Hanging up on a customer to prevent the person from cancelling a service

A mission statement outlines the organization's fundamental purposes. It should address which of the following? A. Nature of the product or service B. Why the organization exists C. Organization's self concept D. Customer needs

A. Nature of the product or service and C. Organization's self concept and D. Customer needs

Which of the following can indirectly create an unethical business environment? ________ A. Overly ambitious goals and incentive programs B. Managers who behave ethically C. Rewarding ethical behavior publicly D. Strict ethical policies and procedures

A. Overly ambitious goals and incentive programs

Which of the following are resulting outputs in the production process? A. Services B. Routing systems C. Operations D. Goods

A. Services and D. Goods

The owner of a sole proprietorship must pay which of these taxes? __________ A. Social Security and Medicare B. Estimated income tax payments C. Personal income tax D. Life insurance coverage

A. Social Security and Medicare and B. Estimated income tax payments and C. Personal income tax

Which of the following would be the result of a departmentalization process? A. The creation of a group including only accountants to process financial transactions B. The creation of an employee handbook. C. The creation of a group of specialists to process the human resources functions of the business D. Separating the functions of a taco stand into a cashier and toco maker.

A. The creation of a group including only accountants to process financial transactions and C. The creation of a group of specialists to process the human resources functions of the business

Which of the following regarding high-growth businesses (e.g., technology firms) are true? A. They are extremely difficult to keep going. B. They are easy to start. C. They are difficult to start. D. They are easy to keep going.

A. They are extremely difficult to keep going. and C. They are difficult to start.

Which of the following regarding progressive managers are true? A. They coach B. They motivate C. They see their role as giving orders to be obeyed D. They emphasize teamwork and team building

A. They coach and B. They motivate and D. They emphasize teamwork and team building

If you owned a small company, and a major competitor started promoting itself in your area, what information might you look for while monitoring the business environment? A. What new products are customers demanding? B. How is the environment changing due to pollution? C. What do your customers believe about global warming D. Who are your competitor's target clients in the area?

A. What new products are customers demanding? and D. Who are your competitor's target clients in the area?

Many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it: __________ A. allows them to reach specific groups more directly B. allows them to connect directly with customers C. reaches broad and diverse groups D. is costly, but worthwhile in reaching specific customers

A. allows them to reach specific groups more directly and B. allows them to connect directly with customers and C. reaches broad and diverse groups

In order to motivate others and create the environment needed to motivate themselves, a leader must A. communicate a vision B. develop department budgets C. establish corporate values D. embrace change

A. communicate a vision and C. establish corporate values and D. embrace change

The line organization has direct lines of ___________ that extend from the top manager to employees at the lowest level of the organization. A. communication B. responsibility C. collaboration D. authority

A. communication and B. responsibility and D. authority

An important factor in enforcing an ethics code is: __________ A. conducting objective investigations B. allowing management to decide the outcomes of investigations C. making the charges public before the investigation D. having an ethics officer who is fair

A. conducting objective investigations and D. having an ethics officer who is fair

The dimension of social responsibility, which includes certain aspects such as producing low-emission vehicles, is called: ________ A. corporate responsibility B. social auditing C. corporate social initiative D. social policy

A. corporate responsibility

Select all that are true of entrepreneurs. A. create thousands of jobs B. strengthen the economy C. help the country prosper D. require articles of incorporation

A. create thousands of jobs and B. strengthen the economy and C. help the country prosper

External customers include A. dealers B. employees in the accounting department C. other employees in the firm D. end users

A. dealers and D. end users

A firm that makes leather coats has one department to cut the leather, another to dye it, and a third to sew the coat together. This is an example of: A. departmentalization by process B. departmentalization by product C. departmentalization by customer group D. departmentalization by geographic location

A. departmentalization by process

Having a(n) __________ is vital in enforcing the ethics code of an organization. __________ A. ethics officer B. ethics system C. ethics developer D. whistleblower

A. ethics officer

An organizational structure that has only a few levels of managers who have a broad span of control is called a: A. flat organization B. tall organization C. centralized organization D. matrix organization

A. flat organization

Enabling employees so they can be empowered successfully means A. giving them needed coaching B. training them to do the job C. assuring that they have the correct education D. allowing them to make up the rules as they go

A. giving them needed coaching and B. training them to do the job and C. assuring that they have the correct education

The reason for implementing departmentalization include: A. grouping all of those doing the same task together B. reducing communication between those doing the same task C. providing less oversight to workers D. assigning people with the correct knowledge to each task

A. grouping all of those doing the same task together and D. assigning people with the correct knowledge to each task

If you want to be both independent and rich, you need to pursue a business with high: A. growth B. reliability C. retention D. stability

A. growth

A business should be managed ethically because _________ A. it reduces the likelihood of lawsuits by employees or customers B. businesses with good reputations attract customers C. it increases the likelihood of government intervention D. it reduces employee turnover

A. it reduces the likelihood of lawsuits by employees or customers and B. businesses with good reputations attract customers and D. it reduces employee turnover

An S corporation has the liability protections of a corporation but is taxed: _________ A. like a partnership or sole proprietorship B. at corporate rates for each year C. twice D. as if it were a corporation

A. like a partnership or sole proprietorship

The personnel directly responsible for achieving organizational goals are: A. line personnel B. staff personnel C. the legal department D. human resources personnel

A. line personnel

The strong relationship between academic dishonesty and dishonesty at work is likely to __________ A. make employers reluctant to hire those who have cheated B. matter very little to employers C. make students who know how to plagiarize well acceptable to employers D. affect hiring practices very little

A. make employers reluctant to hire those who have cheated

Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to: A. manage customer records B. follow the daily sales and expenses C. travel to other area businesses D. lengthen their daily working hours

A. manage customer records and B. follow the daily sales and expenses

Some common causes of small business failure include: A. no experience in that business or industry B. starting with too little capital C. overestimating time needed to build the business D. underpricing or overpricing goods or services

A. no experience in that business or industry and B. starting with too little capital and D. underpricing or overpricing goods or services

An organization shows who reports to whom, who is accountable for accomplishing specific work, and the relationships among people in the company in a(n): A. organization chart B. vision statement C. mission statement D. annual report

A. organizational chart

Select those items considered fringe benefits that people working for a company are likely to receive, but a sole proprietor has to develop on his own: ___________ A. paid sick or vacation leave time B. paid health insurance C. a pension plan D. freedom to make your own hours

A. paid sick or vacation leave time and B. paid health insurance and C. a pension plan

Social audits should measure such activities as ________ A. respect for human rights B. return on investment C. profit to sales rations D. percentage of tax paid

A. respect for human rights

Developing countries are providing new markets for companies that can provide them with needed: A. services B. managers C. technology D. goods

A. services and C. technology and D. goods

The definition of __________ ___________ states: the process of determining the major the goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. A. strategic planning B. contingency planning C. operational panning D. tactical planning

A. strategic planning

A modular layout is used in production when: A. teams of workers produce complex units of a product B. the final product is not moveable C. producing large quantities of a few types of products D. operations serve customers in one location

A. teams of workers produce complex units of a product

Ending a partnership can be difficult because of problems deciding: __________ A. the worth of a retiring partner's share B. when a partner can retire C. whether to pay the taxes D. how to distribute assets

A. the worth of a retiring partner's share and B. when a partner can retire and D. how to distribute assets

Which of the following are important reasons for managing a business in an ethical way? __________ A. to attract new customers and keep existing customers B. to do the right thing C. to cultivate a good reputation D. to maintain an aggressive edge

A. to attract new customers and keep existing customers and B. to do the right thing and C. to cultivate a good reputation

Entrepreneurial attributes include: A. tolerant of uncertainty B. above average wealth C. action-oriented D. highly energetic

A. tolerant of uncertainty and C. action-oriented and D. highly energetic

Companies that try to act in a socially responsible way are likely to focus on such activities as __________ A. using recyclable packaging B. increasing the diversity of their workforce C. providing safety equipment and training for their workers D. hiring only women and minorities.

A. using recyclable packaging and B. increasing the diversity of their workforce and C. providing safety equipment and training for their workers

Which of the following tasks are associated with the organizing function of management? A. Clarifying policies B. Preparing and organizational chart C. Taking corrective action D. Developing strategies to reach organizational goals

B. Preparing and organizational chart

An inexpensive marketing research study may help you determine which of the following? A. How to lower the cost of your product or service B. Where to locate C. Whom to select as your target market D. What is an effective strategy for reaching your target market

B. Where to locate and C. Whom to select as your target market and D. What is an effective strategy for reaching your target market

A corporation is defined as: __________ A. an unchartered entity with authority to act directly with its owners B. a chartered legal entity with authority to act apart from its owners C. an unchartered entity with authority to act apart from its owners D. a chartered legal entity with authority to act directly with its owners

B. a chartered legal entity with authority to act apart from its owners

An employee was fired for not carrying out an unethical request by his manager. This is an example of __________ A. whistle-blowing by the employee B. a negative consequence of acting ethically C. bottom up management D. using due process in a termination.

B. a negative consequence of acting ethically

When producing large quantities of a few types of products, a(n) __________ __________ layout should be used. A. fixed position B. assembly line C. cellular modular D. process line

B. assembly line

A market consists of consumers with unsatisfied wants and needs who have both resources and the willingness to: A. demand B. buy C. sell D. supply

B. buy

Nike's strength is in manufacturing athletic shoes and Apple's is in marketing innovative electronics. These are examples of each company's: A. largest cost center B. core competencies C. organizational purpose D. mission statement

B. core competencies

The most forceful way to communicate the importance of an ethics code is to: __________ A. train top management B. enforce it C. train employees D. make it available to everybody

B. enforce it

Corporate social responsibility is when businesses are concerned __________ A. only to compete and make profit B. for the welfare of society as a whole C. only with their responsibility to their shareholders D. about being fair and honest with their stakeholders

B. for the welfare of society as a whole and D. about being fair and honest with their stakeholders

For departments to operate effectively, they must be allocated resources such as: A. equipment B. funds C. personnel D. production goals

B. funds and C. personnel

LLCs do have to submit articles of organization and an operating agreement, but do not have to: __________ A. pay self-employment taxes B. hold annual meetings C. keep minutes D. file written resolutions

B. hold annual meetings and C. keep minutes and D. file written resolutions

The use of private information about a company by an employee for personal financial gain is: _________ A. acceptable B. insider trading C. legal D. proprietary sales

B. insider trading

For launching and operating a small business, what resources are often available through colleges and universities? A. low-interest business loans B. interns C. business professors D. master of business administration students

B. interns and C. business professors and D. master of business administration students

Line managers are those who have the authority to: A. provide advice about affirmative action. B. issue orders C. adjust to changing conditions D. enforce discipline

B. issue orders and C. adjust to changing conditions and D. enforce discipline

When there is one or more general partners and one or more limited partners, the firm is a(n): __________ A. general partnership B. limited partnership C. master limited partnership D. unlimited partnership

B. limited partnership

Select the disadvantages of a sole proprietorship: __________ A. unlimited growth B. management difficulties C. unlimited liability D. limited financial resources

B. management difficulties and C. unlimited liability and D. limited financial resources

Some believe that there are six steps a company must follow to improve its business ethics. Some of these steps are: __________ A. having the ethical code enforced by the SEC and Congress to be effective B. managers and others must be trained to consider the ethical implications of all business decisions C. having an ethics office to allow anonymous reports of unethical conduct D. top management must adopt and unconditionally support an explicit corporate code of conduct.

B. managers and others must be trained to consider the ethical implications of all business decisions and C. having an ethics office to allow anonymous reports of unethical conduct and D. top management must adopt and unconditionally support an explicit corporate code of conduct.

Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to: A. large increases in demand B. opportunities C. employee benefits needs for better benefits D. employee requests for higher wages

B. opportunities

If the statement "ethics is caught more than it is taught" is true, then management facilitates this by: __________ A. rewarding ethical behavior only B. setting a good example C. punishing unethical behavior and rewarding ethical behavior during employee reviews D. ignoring both ethical and unethical behavior

B. setting a good example

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts is a(n): A. corporate business B. small business C. big business D. independent business

B. small business

A business plan is a detailed written statement the describes: A. a demand forecast of employees B. the resources and qualifications of its owner(s) C. the advantages of using a chosen bank D. the target market

B. the resources and qualifications of its owner(s) and D. the target market

The internal customers of a company such as Toyota would include A. employees of their suppliers B. their assembly line employees C. automobile buyers D. the payroll department employees

B. their assembly line employees and D. the payroll department employees

The definition of __________ __________ states: highest level of management, consisting of the president and other key company executives who develop strategic plans. A. front line management B. top management C. middle management D. supervisory management

B. top management

If an organization temporarily borrows its specialists from different functional areas to accomplish a common project, it is implementing what type of organization? A. Line organization B. Virtual organization C. Matrix organization D. Self-managed team

C. Matrix organization

Which of the following exemplify line personnel in the line-and-staff organization? A. Human resource managers B. Legal advisers C. Packaging personnel D. Production workers

C. Packaging personnel and D. Production workers

Which of the following examples would be a situation in which you would want to question the legality of the decision before acting upon it? __________ A. The decision to reward employees for a job well done B. The decision to take a sick day when actually sick C. The decision to terminate an employee D. The decision to order office supplies for office use

C. The decision to terminate an employee

Ahmed is the owner of a small U.S. shoe manufacturing business. He knows he could export some of his shoes, but he does not know if they fit other markets. Also, he cannot afford to hire an international trade expert. What does this situation demonstrate? A. Why some people are not cut out to be entrepreneurs B. Why overseas exporting is a poor business decision C. Why many small business have difficulty engaging in global business

C. Why many small business have difficulty engaging in global business

Many of today's organizations are being designed around pleasing the customer at a profit. Thus, they must remain flexible and adaptable, because when customers need change, firms must: A. find new customers B. stay the same C. change with them D. raise prices E. change customer needs

C. change with them

Corporate social responsibility is based on a ________ A. plan to maximize profits for shareholders to spend in communities B. commitment to maximizing shareholder profits in all decisions C. concern for the welfare of society D. statement by Milton Friedman that maximizing shareholder profits is businesses' only responsibility

C. concern for the welfare of society

Autocratic leadership is effective in situations such as A. working with highly professional employees B. working with long time employees C. emergencies D. working with new, unskilled workers

C. emergencies and D. working with new, unskilled workers

A(n) __________ team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product. A. business B. franchise C. entrepreneurial D. creative

C. entrepreneurial

The acronym for using computers to guide and control the manufacturing process is referred to as __________.

CAM

Why is planning a key management function? A. Planning involves measuring results against corporate objectives. B. Planning involves allocating resources, assigning tasks, and establishing procedures. C. Planning involves knowing how to motivate employees to reach objectives D. Accomplishing the other functions depends heavily on having a good plan.

D. Accomplishing the other functions depends heavily on having a good plan.

__________ __________ is finding the right information, keeping information in a readily accessible place, and making the information known to everyone in the firm. A. Accessibility management B. Enabling management C. Managing capital D. Knowledge management

D. Knowledge management

At what point is it most important to make your marketing decisions? A. After you have introduced a product B. Only if the sales of your product have began to drop C. After you have opened a store D. Long before you introduce a product or open a store

D. Long before you introduce a product or open a store

__________ states in the definition: listing all the pluses for a solution in one column, all of the minuses in another, and the implications in a third. A. planning B. brainstorming C. decision D. PMI

D. PMI

The program through which private investment companies licensed by the Small Business Administration lend money to small businesses called the: A. Private Licensed Lending Company B. Small Business Administration Company C. Entrepreneur Assistance Lending Company D. Small Business Investment Company

D. Small Business Investment Company

The bureaucratic principles proposed by Fayol and Weber would likely apply better to which of the following institutions? A. A food truck B. Google C. A hobby shop D. U.S. Army

D. U.S. Army

___________ is a broad explanation of why the organization exists and where it is trying to go. A. Mission B. Leadership C. Objective D. Vision

D. Vision

David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how: A. business owners can save money by hiring an apprentice B. all apprenticeships work well C. having your own business allows one to take long vacations D. apprenticeships can benefit both the business owner and the apprentice

D. apprenticeships can benefit both the business owner and the apprentice

Cross-functional self-managed teams are used in organizations to A. reduce team empowerment B. reduce the communication between divisions C. increase the effect of specialization D. break down barriers between functional departments

D. break down barriers between functional departments

The definition of ___________ ___________ states: skills that involve the ability to picture the organization as a whole and the relationship among its various parts. A. technical skills B. human relations C. operational skills D. conceptual skills

D. conceptual skills

The definition of __________ ___________ states: choosing among two or more alternatives. A. strategic planning B. resource allocation C. brain storming D. decision making

D. decision making

Your supervisor has asked you to pad your expense account meal and taxi charges to match his. You will both make a little extra on the recent trip you took. This has created an: __________ A. ethical absolute B. illegal dilemma for you C. excellent opportunity D. ethical dilemma for you

D. ethical dilemma for you

Companies sometimes spend millions to move location: A. for pleasant scenery B. to be near vacation spots C. at a supplier's request D. for proximity to customers

D. for proximity to customers

Time-to-market means: A. producing watches for customers B. the hours a store is open C. the time it takes to manufacture a product D. moving products quickly to customers at the lowest cost

D. moving products quickly to customers at the lowest cost

Termination of a partnership is difficult without a(n) __________ agreement. __________ A. corporate B. tax C. employment D. partnership

D. partnership

A disadvantage of buying a franchisee is: __________ A. immediate strong name recognition B. lower failure rates C. marketing assistance D. paying a share of profits as royalties

D. paying a share of profits as royalties

If you start and manage a landscaping business on your own, you have likely started a: __________ A. partnership B. corporation C. franchise D. sole proprietorship

D. sole proprietorship

The definition of __________ ___________ states: Managers who are directly responsible for supervising workers and evaluating their daily performance. A. tactical management B. middle management C. financial management D. supervisory management

D. supervisory management

Because of the poor publicity at a fellow franchise location, you notice that sales at your location have decreased. The impact of the poor publicity on your company is referred to as __________ A. changes to the franchise agreement B. reinforcement of the franchise agreement C. unlimited liability D. the coattail effect

D. the coattail effect

The SBA microloan program awards loans based on belief in the borrowers' integrity and: A. potential positive environmental impact of the business B. potential return on SBA's investment C. collateral and credit history D. the soundness of their business idea

D. the soundness of their business idea

In a sole proprietorship, any debts or damages incurred by the business are your personal debts and you must pay them. This disadvantage is known as: __________ A. responsibility B. taxation C. limited liability D. unlimited liability

D. unlimited liability

T/F: Computer-aided design was united with computer-aided manufacturing to bring computer-integrated manufacturing to the business world.

True

T/F: Personal savings, venture capitalists, and government agencies such as the Small Business Administration (SBA) are possible sources of capital and information when starting a small business.

True

PERT charts allow managers to identify the __________ __________ of a project by illustrating the sequence of tasks that takes the longest to complete.

critical path

The current trend in organization is to __________ the span of control.

expand

The birth of information technology such as texting and email is giving firms and employees increased flexibility to choose ___________ while staying competitive.

locations

The process used to accomplish organizational goals through planning, organizing, leading, and controlling organizational resources is ___________.

management