Quiz #2 (ch. 4-6)
Who owns a corporation? its employees its board of directors its president its board of directors and major stockholders everyone who owns a share of stock in the corporation
everyone who owns a share of stock in the corporation (majority stockholders make most of decisions)
The lowest level of management, which usually has the most people to manage, is called _____ management. Top middle Strategic Supervisory Functional
Supervisory
Which of the following is NOT one of the four functions of management? Planning Controlling Organizing Budgeting Leadership
Budgeting
_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals. Functional coordination Strategic planning Tactical planning Motivation Management
Management
Many classic entrepreneurs are _____ who start small and plan to keep their business small. Interpreneurs Multipreneurs Intrapreneurs growth entrepreneurs Micropreneurs
Micropreneurs
An organization's _____ is its general purpose or reason for existence. Concept Mission Tactic business technique corporate culture
Mission
A manager who makes one-directional decisions and seeks no input from her subordinates can be described as having an autocratic leadership style. True, False
True
Control is the mechanism for making sure the other three managerial functions--planning, organizing, and leadership--are operating smoothly. True, False
True
Dividing up the tasks (division of labor) is an important part of organizing. True, False
True
Leadership is the process of guiding and motivating others toward the achievement of organizational goals. True, False
True
Managers must act in interpersonal, informational, and decisional roles. True, False
True
Micropreneurs are entrepreneurs who start small and plan to stay small. True, False
True
Planning is the process of deciding what needs to be done to achieve organizational objectives; identifying when and how it will be done, and determining by whom it should be done. True, False
True
Technical skills are usually utilized at the lower levels of the organization. True, False
True
A business plan: describes in detail the idea for the new business and how it will be carried out is used to persuade lenders and investors to finance the venture may take many months to write serves as the first operating plan for a new business is accurately described by all of the above
is accurately described by all of the above
A _____ is a formal document that states an organization's purpose and reason for existing and describes its basic philosophy. corporate manifesto mission statement Vision company proclamation principle of existence
mission statement
A common use of business plans is to: comply with SEC regulations persuade lenders and investors to finance the venture persuade customers to buy the new product or service use as a recruitment tool showcase innovative factors to production to make the company a success
persuade lenders and investors to finance the venture
A corporation's board of directors: is appointed by the SEC is selected by the agency that chartered the corporation acts as organizational figureheads sets major corporate goals and policies should never have more than seven members
sets major corporate goals and policies (usually made up of senior level experts in several different backgrounds of knowledge, more diversity allows for more profitable decisions)
The most common form of business organization is the: general partnership corporation sole proprietorship cooperative limited partnership
sole proprietorship
Most firms have three distinguishable levels of management. They are: low, middle, and chief functional, middle, and staff supervisory, middle, and top operational, supervisory, and top functional, operational, and strategic
supervisory, middle, and top
The specialized knowledge and ability that a person brings to a job, such as computer programming, is called a(n) ______ skill. hierarchical Technical functional subordinate tactical
Technical
The difference between small business owners and entrepreneurs is that small business owners: are innovators started the business to pursue their idea for a new product or service are risk takers accept the status quo and take a short-term view of the future are accurately described by all of the above
accept the status quo and take a short-term view of the future (the first three describe entrepreneurs)
A corporation has: limited liability ease of transferring ownership continuity of life ability to attract financing all of the above
all of the above
Which of the following describes a disadvantage associated with a corporation? double taxation cost of formation government regulations complexity of formation all of the above
all of the above
Middle managers usually: act as representatives to other firms set overall goals and objectives manage the employees on the assembly line carry out plans and policies of top management act as figureheads for the company
carry out plans and policies of top management
With its ease of registration and pro-corporate policies, _____ is called the "state of incorporation." About half of the Fortune 500 companies are incorporated there. New York Delaware Ohio Georgia California
Delaware
_____ financing is a form of financing consisting of funds raised through the sale of stock in a business. Credit Debt Equity Monetary Venture
Equity
A good manager is never faced with unforeseen problems. True, False
False
A person who buys a franchise has the same level of control as an entrepreneur who opens his or her own sole proprietorship. True, False
False
Crisis, both internal and external, do not affect well-managed organizations. True, False
False
Entrepreneurs, as a general group, dislike risk taking. True, False
False
Multipreneurs are businesspeople who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful. True, False
False
The lowest level of management is engaged in strategic planning process. True, False
False
The proliferation of information technology no longer has any effect on today's managers. True, False
False
Unlike large corporations, sole proprietorships do not need a business plan. True, False
False (a business plan is a guide, but businesses need to be flexible to new ideas)
The two sources for debt financing are angel investors and venture capitalists. True, False
False (equity financing uses investors who expect financial return in company profits vs debt is bank loan)
Registration procedures for incorporation are uniform from state to state across the U.S. True, False
False (#1 state for incorporation is Delaware)
_____ are entrepreneurs who start a series of companies. Multipreneurs Intrapreneurs Multi-venturists Multi-faceted venturists Growth capitalists
Multipreneurs
A type of business entity that provides liability protection but is taxed like a partnership is a: Franchise general partnership C corporation S corporation joint venture
S corporation (a C corporation has its own tax structure)
_____ planning is the creation of long-range, comprehensive objectives and the development of long-term courses of action. Tactical Strategic Operational Functional Supervisory
Strategic
_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is less than one year long. Tactical Strategic Hands-on Procedural Functional
Tactical
The corporation's board of directors elects the corporate officers. True, False
True
When companies in the same industry merge to achieve economies of scale and to expand their product lines, it is called a horizontal merger. True, False
True
A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts. True, False
True (be careful of who you go into business with!!)