Management chapter 5 and 6

Among the financial ratios often used for control purposes, Current Assets/Current liabilities is known as the _____. a. debt ratio b. net margin c. current ratio d. inventory turnover ratio

c. current ratio

_____ makes social entrepreneurship unique. a. Lack of other career options b. Focus on international markets c. Refusal to finance by loans d. Commitment to solving social problems

d. Commitment to solving social problems

_____ planning identifies alternative courses of action that can be taken if problems occur with the original plan. a. Benchmark b. Participatory c. Staff d. Contingency

d. Contingency

When you buy music downloads online, the firm selling them to your is engaging in which type of e-business strategy? a. B2C b. B2B c. infomediary d. crowdsourcing

a. B2C

_____ are special strengths that an organization has or does exceptionally well and that help it outperform competitors. a. Core competencies b. Strategies c. Alliances d. Operating objectives

a. Core competencies

Which is the question to ask when starting the strategic management process? a. What is our mission? b. How well are we currently doing? c. How can we get where we want to be? d. Why aren't we doing better

a. What is our mission?

Trend in U.S. small businesses show ______. a. a growing number owned by minorities b. fewer small businesses using the internet c. large businesses creating more jobs d. fewer small businesses family owned

a. a growing number owned by minorities

When one team member advises another team member that "your behavior is crossing the line in terms of our expectations for workplace civility," she is exercising a form of ____ control over the other's inappropriate behaviors a. clan b. market c. internal d. preliminary

a. clan

In CPM/PERT, "CPM" stand for _____. a. critical path method b. control planning management c. control plan map d. current planning matrix

a. critical path method

In _____ financing, the business owner borrows money as a loan that must be repaid. a. debt b. equity c. partnership d. limited

a. debt

If Google's top management were to announce that the firm was going to buy Federal Express, this would indicate a growth strategy of _____. a. diversification b. concentration c. horizontal integration d. vertical integration

a. diversification

A pressing problem faced by a small business in the birth or start-up stage is _____. a. gaining acceptance in the marketplace b. finding partners for expansion c. preparing the initial public offering d. getting management professional skills

a. gaining acceptance in the marketplace

An entrepreneur who strives on uncertainty displays _____. a. high tolerance for ambiguity b. internal locus of control c. need for achievement d. action orientated

a. high tolerance for ambiguity

The benefits of planning should include ____. a. improved focus b. less need for controlling c. more accurate forecasts d. increased business profits

a. improved focus

When a soccer coach tells her players at the end of a losing games, "You did good in staying the game plan," she is using a/an ____ as a measure of performance. a. input standard b. output standard c. historical comparison d. relative comparison

a. input standard

In a hierarchy of objectives, plans at lower levels are supposed to act as _____ for accomplishing higher-level plans. a. means b. ends c. scenarios d. benchmarks

a. means

After objectives and standards are set, what step comes next in the control process? a. measure results b. take corrective action c. compare results with objectives d. modify standards to fit circumstances

a. measure results

A manager is not living up to the concept of MBO if he or she _____. a. sets performance objectives for subordinates b. stays in touch and tries to support subordinates in their work c. jointly reviews performance results with subordinates d. keeps a written record of subordinates' performance objectives

a. sets performance objectives for subordinates

A common reason new small businesses often fail is ____. a. the owner lack experience and business skills b. there is too much government regulation c. the owner tightly controls money and finances d. the business grows too slowly

a. the owner lack experience and business skills

A venture capitalist that receives an ownership share in return for investing in a new business is providing _____ financing. a. debt b. equity c. limited d. corporate

b. equity

When a manager is asked to justify a new budget proposal on the basis of projected activities rather than as an incremental adjustment to the prior years budget, this is an example of _____. a. zero based budgeting b. strategic planning c. operational planning d. contingency planning

a. zero based budgeting

Almost __% of U.S. businesses meet the definition of a small business. a. 40 b. 99 c. 75 d. 81

b. 99

_____ take ownership shares in a new venture in return for start-up funds. a. Business incubators b. Angel investors c. SBDCs d. Intrapreneurs

b. Angel investors

The best goals or objectives for planning purposes would have which of the following characteristics? a. Easy enough so that no one fails to reach them b. Realistic and possible to achieve, while still challenging c. Open ended, with no clear end point identified d. No set timetable or due dates

b. Realistic and possible to achieve, while still challenging

In a CPM/PERT analysis, the focus is on ____ and the event ____ that link them together with the finished product. a. costs; budgets b. activities; sequences c. timetables; budgets d. goals; costs

b. activities; sequences

General Electric is a complex conglomerate that owns many firms operating in very different industries. The strategies pursued for each of these units within GE would best be called ____ -level strategies. a. corporate b. business c. functional d. transnational

b. business

A ____ in the BCG Matrix would have a high market share in a low-growth market. a. dog b. cash cow c. question mark d. star

b. cash cow

The ability of a firm to consistently outperform its rivals is called ____. a. vertical integration b. competitive advantage c. strategic intent d. core competency

b. competitive advantage

A total quality management program is most likely to be associated with _____. a. EOQ b. continuous improvement c. return on equity d. breakeven analysis

b. continuous improvement

The first step in the planning process is to _____. a. decide how to get where you want to go b. define your objectives c. identify possible future conditions or scenarios d. act quickly to take advantage of opportunities

b. define your objectives

Management by exception means _____. a. managing only when necessary b. focusing attention where the need for action is greatest c. the ams thing as concurrent control d. the same thing as just-in-time-delivery

b. focusing attention where the need for action is greatest

When managers use benchmarking in the planning process, they usually try to ____. a. set up flexible budgets b. identify best practices used by others c. find the most accurate forecasts available d. use expert staff planners to set objectives

b. identify best practices used by others

In order to help implement her firms's strategic plans, the CEO of a business firm would most likely want marketing, manufacturing, and finance executives to develop _____. a. means-end chains b. operational plans c. flexible budgets d. project management

b. operational plans

If an organization's top management establishes a target of increasing new hires of minority and female candidates by 15% in the next six months, this is an example of a/an ____ standard for control purposes. a. input b. output c. management by exception d. concurrent

b. output

The two questions asked by Porter to identify the correct competitive strategy for a business or product line are : 1- What is the market scope? 2- What is the ____? a. market share b. source of competitive advantage c. core competency d. industry attractiveness

b. source of competitive advantage

Which is an example of a cooperative strategy? a. retrenchment b. strategic alliance c. bankruptcy d. vertical integration

b. strategic alliance

A small business owed who wants to pass the business to other family members after retirement or death should prepare a ____ plan. a. retirement b. succession c. partnership d. liquidation

b. succession

From a time management perspective, which manager is like to be in best control of his or her time? One who _____. a. tries to never say "no" to requests from others b. works on the most important things first c. immediately responds to instant messages d. always has " an open office door"

b. works on the most important things first

The ____ chart graphically displays the scheduling of tasks required to complete the project a. exception b. Taylor c. Gantt d. after-action

c. Gantt

____ is a personality characteristic common among entrepreneurs. a. External locus of control b. Inflexibility c. Self-confindence d. Low self-reliance

c. Self-confindence

The first element in a good business plan is _____. a. an industry analysis b. a marketing strategy c. an executive summary d. a set of performance milestones

c. an executive summary

When MBO is done right, who does the review of team member's performance accomplishments? a. the team member b. the team leader c. both the team member and team leader d. the team leader, the team member, and a lawyer

c. both the team member and team leader

When a supervisor working alongside of an employee corrects him or her when a mistake is made, this is an example of ____ control. a. feedforward b. external c. concurrent d. preliminary

c. concurrent

The alliances that link together firms in supply chain management relationships are examples of how business try to use ____ strategies. a. B2C b. growth c. cooperation d. concentration

c. cooperation

Porter's model of competitive strategies suggests a firm that wants to compete with its rivals in a broad market by selling a very-low price product would need to successfully implement a ____ strategy. a. retrenchment b. differentiation c. cost leadership d. diversification

c. cost leadership

In addition to providing better focus, good planning offers the benefits of _____. a. guaranteed performance success b. eliminating the need to change c. improved action orientation d. less emphasis on coordination and control

c. improved action orientation

If you start a small business and want to avoid losing any more than the original investment, what form of ownership is best? a. sole proprietorship b. general partnership c. limited partnership d. corporation

c. limited partnership

In Porter's five forces model, which of the following conditions is most favorable from the standpoint of industry attractiveness? a. many competitive rivals b. many substitute products c. low bargaining power of suppliers d. few barriers to entry

c. low bargaining power of suppliers

The planning process isn't complete until _____. a. future conditions have been identified b. stretch goals have been set c. plans are implemented and results evaluated d. budgets commit resources to plans

c. plans are implemented and results evaluated

A "no smoking" rule and a sexual harassment policy are examples of ____ that are types of ____. a. long range plans; policies b. single use plans; means end chains c. policies; standing use plans d. operational plans; short range plans

c. policies; standing use plans

An organization that is downsizing by cutting staff to reduce costs can be described as pursuing a ____ strategy. a. liquidation b. divestiture c. retrenchment d. stability

c. retrenchment

A good performance objective is written in such a way that it _____. a. has a flexible timetable b. is general and not too specific c. is impossible to accomplish d. can be easily measured

d. can be easily measured

A _____ protects small business owners from personal liabilities or losses. a. sole proprietorship b. franchise c. limited partnership d. corporation

d. corporation

When Coke and Pepsi spend millions on ads trying to convince customers that their products are unique, they are pursuing a ____ strategy. a. transnational b. concentration c. diversification d. differentiation

d. differentiation

When an automobile manufacturer is careful to purchase only the highest-quality components for use in production, this is an example of an attempt to ensure high performance through ____ control. a. concurrent b. statistical c. inventory d. feedforward

d. feedforward

When a new business is quick to capture a market niche before competitors, this is ____. a. intrapreneurship b. an initial public offering c. succession planning d. first-mover advantage

d. first-mover advantage

One of the expected benefits of participatory planing is ____. a. faster planning b. less need for forecasting c. greater attention to contingencies d. more commitment to implementation

d. more commitment to implementation

Among the global strategies that international business might pursue, the ____ strategy most directly tries to tailor products to fit local needs and cultures in different countries. a. concentration b. globalization c. transnational d. multidomestic

d. multidomestic

A marketing plan in a business firm would most likely deal with _____. a. production methods and technologies b. money and capital investments c. facilities and workforce recruiting d. sales and production distribution

d. sales and production distribution

Planning is best described as the process of ______ and _____. a. developing premises about the future; evaluating them b. measuring results; taking corrective action c. measuring past performance; targeting future performance d.setting objectives; deciding how to accomplish them

d.setting objectives; deciding how to accomplish them