Management 1301 exam 2

Get fit guy wants to make the best use of its resources. As a result, the company hires college students to work at the front desk, so personal trainers can focus on helping members in the gym and teaching classes. What type of objective is the most relevant to this example?

efficiency

Export agents either purchase products outright or take them on consignment but are not responsible for storage and transportation of the product

false

Wait owns a business in which he offers standardized test prep classes and individual tutoring for students. this is an example of a

service business

Bob and tom live and work in Texas, but they love vacationing in the Bahamas. After several years, they decide to buy a vacation home in the Bahamas. When they are not there, they rent the property to other people for $1200 a week. This is an example of

the sharing economy

A drawback of franchising is the need for franchisees to strictly adhere to standardized operations

true

A global strategy involves standardizing products for the whole world

true

The international monetary fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation

true

Trevor lives in Florida during the winter months. While in Florida, he rents out his main home in Colorado to people traveling there for the skiing season. Trevor is participating in the sharing economy

true

If a manager is concerning about doing the work with the lead cost and waste possible, then his or her primary managerial concern is

efficiency

A person who is involved in the process of creating and managing a business to achieve his or her desired objectives is engaged in

entrepreneurship

Fir Rite Fasteners, a firm based in the United States, buys metal parts from China to manufacture its fasteners. In doing so, the company is engaged in exporting.

False

Trade deficits can help businesses succeed, create more jobs, and improve the standard of living.

False

When a nation imports more than it exports, it has a positive balance of trade

False

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

promote optimism and positive thinking

Many service providers are considered retailers because they

provide their services directly to consumers

Baubles and Bangles, an independent jewelry store, acquires jewelry and accessories from producers and wholesalers and sells them to consumers. baubles and bangles is a

retailer

if Yvette wants to start her own business, what might persuade her to open a retail operation

retailing requires low initial financing

Manami and Michael recently had their first child. As two working parents, they struggled to find good, economical childcare. As a result, they developed their own software to link parents with licensed, reasonably priced childcare providers. This is an example of

sharing economy

Joey's jewelry business has grown from a small startup in his basement to a chain of outlets all over the state. His business has the potential to expand further, provided he has the resources. To attract investors and other resources, he creates a mission statement for his company. He highlights the his gems come from countries with fair labor practices. which basic question of. a well-developed mission statement is he addressing?

What are our responsibilities with respect to being a good steward of environmental, financial, and human resources?

What type of business has been growing faster than other classifiable firms and represents almost 30 percent of all small businesses

minority-owned businesses

A declaration of an organization's fundamental purpose and basic philosophy is known as a(n)

mission statement

Suppose there are several countries that efficient at producing coffee beans and Brazil is one of those countries. While Brazil is efficient at producing coffee beans, it is inefficient at producing electronics. Because of this, Brazil sells the coffee beans to other countries and buys electronics from other countries. This scenario exemplifies the concept of

comparative advantage

A company objective related to ___________ is generally stated in terms of percentage of sales increase and market share, with the goal of increasing those figures

competitive advantage

To earn a profit, managers must acquire, coordinate, and control all of the following except

competitive products

Marla manages an online shoe store. She must determine what her company's warehouse and distributing facilities need and which type of automation can maximize order efficiency. What major phase of the planning process does this example describe?

data gathering

Before an organization can plan a course of action, it must first

determine what it wants to achieve

While Justin attends college, he is working part-time for a cutlery company. he goes door-to-door and offers consumers faced-to-face presentations in their homes. this is an example of

direct-selling

Grace manages a beach rental kiosk. her goal is to run this business in such a way that she achieves the desired result, making a profit and proving her customers with the items they need to enjoy their vacation. Tush's, her primary managerial concern is

effectiveness

Marissa is a fitness expert who starts her own personal training company. She conducts fitness classes for women and provides personal training sessions for clients. Marissa can be regarded as a(n)

entrepreneur

A business that is engaging in importing and exporting must be familiar with the ratio at which one nation's currency can be exchanged for another. In other words, the business must be familiar with the balance of trade

false

A common reason for establishing quotas or tariffs is to encourage dumping

false

As an international business opportunity, direct investment provides the least amount of control but is also the least expensive way to participate in foreign trade

false

The Asia-Pacific Economic Cooperation (APEC) is a trade agreement between asian countries and does not include the United states

false

companies doing business internationally have traditionally used a globalization strategy

false

manufacturing businesses are attractive to entrepreneurs because of the low start-up costs required to establish a manufacturing business

false

mulitnational corporations are rarely targeted by activists because they provide so many benefits to the countries in which they do business

false

small businesses, by their very nature, are small and therefore do not contribute significantly to job creation

false

sociocultural differences, such as variations in body language and personal space, rarely have an impact on international business

false

When a manager makes sure there is adequate funding to pay for essential activities, he or she is managing ____________ resources

financial

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

mission statement

Melvin's fishing store has profit as an objective. As a result, he wants to have

money and assets left over after paying off business expenses

_________ is the transferring of manufacturing or other tasks-- such as data processing-- to countries where labor and supplies are less expensive

outsourcing

why has outsourcing become a controversial practice in the United States?

outsourcing takes away jobs that could be accomplished by workers in the United States

Determining an organization's objectives and deciding how to accomplish them is the management function known as

planning

Ross is one of the senior managers of a large company. He is a part of a team that determines the objectives of the company based on future trends in the industry and decides how to accomplish them. Ross is involved in the management function of

planning

Which management function is crucial because it lays the foundation for all other management functions?

planning

Mahie owns an Indian restaurant that employs around 20 people. She is solely responsible for the management of the restaurant. Her business competes with a larger chain of restaurants that offers the same cuisine. Mahie's restaurant can be classified as a

small business

Roberts Music Center is a local music shop. Along with selling musical instruments, it also rents instruments to students in school band programs. Robert is the owner and he employs 3 full-time and 5 part-time employees. Robert's business is a

small business

Which types of business has created a majority of net new jobs annually?

small businesses

while growing up, Carlos noticed that many families in his community struggled to make ends meet and provide for their children's education. As a result, he started a business to provide low-cost tutoring and scholarship opportunities for low-income families in his community. As his company has grown, Carlos has been able to extend free tutoring and college scholarships to five impoverished students per year. Carlos is a

social entrepreneur

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

staffing

wes is a manger at a large investment banking firm. The firm is expanding, and he is tasked with hiring more people to carry suit the organization's increased workload. Wes must also determine what to pay the new hires and develop a plan to train them. Wes is engaged in

staffing

The electronics warehouse wants to make sure its products are always available to customers. Since the company sells many electronic products, including computers, TVs, printers, and gaming equipment, it will need many diverse ________ to maximize efficiencies and provide creative solutions to help the company reduce expenses and reach its o objectives

suppliers

Which scenario best illustrates a small business operating in a retail industry as opposed to wholesaling its products?

the case place imports cell phone covers and sells them directly ti customers through kiosks at the mall

Growth objectives essentially relate to

adapting and releasing new products in the market

Bolivia, South America is the only country in the world that is able to grow a rare plant that is used to produce a healing ointment for arthritis patients. Because Bolivia is the only country with access to this, it has a(n)

absolute advantage

In the manufacturing sector, small businesses sometimes have an advantage ivory large firms because small businesses

can customize products to meet specific customers needs and wants

What is the purpose of the Small Business Administration?

It offers manegerial and financial assistance to small businesses

Countries like China and Vietnam are flooded with counterfeit videos, movies, computer software, furniture, and clothing. why is this?

Copying is a tradition in those countries

What its a difference between high technology businesses and other small businesses?

High technology businesses require greater capital and have higher initial startup costs than other small businesses

What social and cultural issues should a manager consider before doing business in a foreign country?

It is important that a manager does their research on the country they intend to go to and fully understand the cultural and social differences. You need to make sure you are always respectful of their customs.

Naveen is part of the planning team in his organization that is working to develop the firm's mission statement. The team knows that along with describing the business and identifying its customers, the team should also articulate the business's operating philosophy and list ant core competencies the business has. What other item should NAveen include in the mission statement?

The firms responsibilities with respect to being a good steward of environmental, financial, and human resources

Which question does the mission statement of an organization seek to answer?

What business are we in?

Which of these basic questions will be answered by a well-developed mission statement?

Who are our customers?

What is true of wholesalers?

Wholesalers are extremely important because of the marketing activities they perform

Randy owns a small, local catering business. He has been hired for company picnics, backyard barbecues, and family celebrations. As word of mouth has spread about his delicious food, good service, and fair prices, he has started getting more business. To handle this, he has hired 3 more employees to cook and serve food at these events. what kind of entrepreneur is Randy?

a micro entrepreneur

Nellie's sweet shop, a large candy store, has historically sold a lot of chocolate and gummy candies. However, over the years, people have become more health conscious. As a result, Nellie's develops a new line of sugar-free candles that taste as good as the original but without the guilt. What type objective does that exemplify?

growth

All of the following are true of direct selling except

it requires buying a lot of inventory

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

it should be clear and concise

Entreprenuership is the process of creating and managing a business to achieve desired objectives

true

International business involves the buying, selling, and trading of goods and services across national boundaries.

true

Licensing is a good option for small manufacturers wanting to launch a well-known brand internationally

true

Many U.S. companies have taken advantage of Mexico's low labor costs and proximity to the United States to set up maquiladoras

true

Nations trade with other nations to obtain resources that would otherwise be unavailable to them

true

Political unrest in countries often creates a hostile environment fir foreign businesses and can act as a barrier to international trade

true

The general agreement on tariffs and trade (gatt) provided a forum for tariff negotiations and a place where international tase problems could be resolved

true