BA 1301 Ch. 5-8

Victorinox is the name of the company that manufactures Swiss army knives. As a result of new regulations governing what passengers could carry with them on airplane trips, the company has lost 30 percent of its business. In other companies, this might have led to business failure, but because Victorinox had _____ plans, it was able to continue to operate profitably.

contingency

Which of the following is NOT one of the advantages of owning a small business?

avoidance of taxes

Tawna Reed was hired for a top managerial position in Nike Corporation because she had creative ability and a good overall feel for the athletic shoe industry. Reed is said to have good _____ skills.

conceptual

_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.

debt

Leonora Whatley is the head of the marketing research department for a cosmetics manufacturer. Whatley delegates as much authority as possible to her fourteen subordinates although she still retains ultimate responsibility. Whatley manages a _____ department.

decentralized

Top management usually performs all of the following tasks EXCEPT:

direct workers on the assembly line

Who provides the start-up financing for the majority of new small businesses?

the business owner and his or her family and friends

All of the following are characteristics of an entrepreneurial personality EXCEPT:

the willingness to be a follower rather than a leader

Recruitment may involve all of the following EXCEPT:

writing job descriptions

A supervisor engaged in ______ is grouping people, tasks, and resources into organizational units to facilitate the planning, leading, and control processes.

depatmentalization

____ could be used to explain why members of the night shift at a textile mill refuse to fill openings on the day shift even though most of the people who work at the plant feel day work is preferable to night work.

Group cohesiveness

An excellent way of putting the informal organization to work for the good of the company is to bring informal leaders into the decision-making process.

true

Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit.

true

Entrepreneurs typically are innovators who start companies to pursue their ideas for a new product or service.

true

In deciding how to pay workers, the firm must be concerned with the salaries paid by competitors.

true

Managers must act in interpersonal, informational, and decisional roles.

true

The informal channels of communication of an organization are often referred to as the grapevine, the rumor mill, or the intelligence network.

true

is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.

management

Collective bargaining:

is the process of negotiating labor agreements

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. Its primary challenge will be the management function of ____ because it needs to convince the 2,000 employees it inherited from the government-owned facility to work more efficiently.

leadership

Management's refusal to let workers enter a plant or building to work is a:

lockout

An organization's _____ is its general purpose or reason for existence.

mission

Strategic planning is long-range, formulated by top management, and made as if the company operated in a vacuum

False

A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:

cross-functional team

American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors. American Express uses _____ departmentalization.

customer

The standards used to determine actions acceptable to the group are called norms.

true

The goal of ______ is to redesign business processes to achieve improvements in cost control, product quality, and customer service.

reengineering

The tool most widely used in making hiring decisions is the:

selection interview

Most firms have three distinguishable levels of management. They are:

supervisory, middle, and top

A company that is centralized has given a great deal of decision-making authority to lower-level managers.

false

Due to their size large businesses tend to have greater flexibility than small businesses.

false

Established small businesses are defined as companies that have been in business at least fifteen years and employ between 50 to 500 employees.

false

In the past few years, the federal government has cut back burdensome government regulations and paperwork to the point that they are almost non-existent for small business owners.

false

Process departmentalization is a grouping of jobs by activity, such as marketing, finance, and production.

false

The first step in setting up a control process is to measure performances

false

The first step in starting your own business is the creation of a unique marketable idea.

false

Unemployment compensation pays employees for lost work time caused by work-related injuries.

false

Unlike large corporations, sole proprietorships do not need a business plan.

false

One way to ease the burden of managing a business is to:

hire outside consultants

The purpose of reengineering is to:

identify and abandon the outdated rules and fundamental assumptions that guide current business operations

The informal organization does NOT:

improve salary levels

Entrepreneurs, as a general group, dislike risk taking.

False

Leadership is:

guiding others to achieve specific goals

Programmed instruction:

is a self-paced, highly structured training method

Typical line positions are found in _____ departments.

production and marketing

_ is a permanent organization structure that combines functional and product departmentalization.

A matrix structure

Which of the following is a key attribute of the virtual corporation?

All of the above are key attributes of the virtual corporation.

Entrepreneurial activities are not influenced by changes in the external environment.

False

Which of the following is NOT an advantage associated with matrix structures?

Managers can build large, permanent teams of specialists.

In 2005, BridgePort Brewing Company expanded sales of its BridgePort India Pale Ale, and BridgePort Black Strap Stout into Alabama, Georgia, Kansas, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee and Texas. These states will join BridgePort's current distribution markets of Alaska, Arizona, California, Colorado, Idaho, Montana, New Mexico, Oregon, and Washington. When the brewery allocated resources to increase its production and distribution, it would have relied on which of the following management functions?

ORGANIZING

____ provides new employees with information about company policies, salary and benefits, and parking. It also includes work rules and performance expectations

Orientation

Which of the following is a type of off-the-job training?

Programmed instruction

In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an inappropriate question to ask?

What are you going to do with the down payment?

One of the advantages of a narrow span of control is:

a high degree of control

Which of the following factors has an effect on the size of a manager's span of control?

ability of the manager to delegate responsibility

The difference between small business owners and entrepreneurs is that small business owners:

accept the status quo and take a short-term view of the future are accurately described by all of the above

A well-written business plan should contain:

all of the above

The final stage in a typical employee grievance procedure is:

arbitration

Middle managers usually:

carry out plans and policies of top management

Entrepreneurial activities are not influenced by changes in the external environment. True or False?

False

Hawaiian-born Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Which of the following federal agencies should Farmer contact if he needs management assistance?

SBA

Which of the following statements about the management pyramid is true?

The person with the most formal authority is at the top of the pyramid.

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. Early in the development of this high-growth company, Arnold and Bradford attracted a group of investors who provided them with money needed to acquire other Internet companies with similar missions. The investment group is called:

angel investors

A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out.

business plan

Kathy Elliot has decided that she will start an Internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliot's next step is to write a formal _____ before she applies for a business loan.

business plan

The person who takes the risk of starting and managing a business to make a profit is called a(n):

entrepreneur

Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times music is played and shared among peers. Jain used _____ financing.

equity

_____ financing is a form of financing consisting of funds raised through the sale of stock in a business.

equity

To be a high-performance team, a team:

is accurately described by all of these

Human resource _____ is the creation of a strategy for meeting future human resource needs.

planning

Which of the following is a reason why small business thrives in the United States?

rapidly changing technology

A manager who makes one-directional decisions and seeks no input from her subordinates can be described as having an autocratic leadership style.

true

A study of the tasks required to do a job well is called a job analysis.

true

Once the business plan is finished, the next step is to:

names of employees

An entrepreneur is a person who _____ a business.

owns and operates

Andy Pearson ran PepsiCo Inc. for nearly 15 years, driving revenues from $1 billion to $8 billion. In 1980, Fortune named him one of the 10 toughest bosses in the United States. Pearson was singled out for the relentless demands that he put on his people. As one employee put it, Pearson's talents were often "brutally abrasive." Every year, without hesitation, he fired the least productive 10% to 20% of his workforce. Pearson used a(n) _____ leadership style.

autocratic

Kirk McCoy is district sales manager for the Jimmy Dean division of Sara Lee Corp. He has six sales managers that report to him. McCoy makes most of the decisions for his people and demands that they check with him on any changes in pricing, sales scheduling and routing, and sales presentation material. McCoy operates a ______ department.

centralized

When a person at a lower level skips a level in the organization chart and consults his or her boss's boss, that person is said to be violating the:

chain of command

Mark Ghermizian had quit his job and was looking to start a small business so he could be his own boss. When he read that people spend up to fifteen minutes every day staring at a bathroom stall door, he decided he would find advertisers who wanted to pay to have their advertising messages on bathroom stall doors. Since he has his idea, Ghermizian's next step is to:

choose a form of business organization

A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.

committee

The disadvantages of group cohesiveness include:

conflict with other work groups in the organization

Asan Linhoud has a major decision to make regarding whether to create a new sales territory or simply add customers to existing territories. He asks for suggestions from his sales reps but will make his own decision. This style of leadership is called:

consultative

Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing.

debt

At your neighborhood Burger King, some employees take and fill orders, others prepare food, a few clean and maintain equipment, and some supervise. This process of dividing work into separate jobs and assigning tasks to workers is called:

division of labor

Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n):

entrepreneur

Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to:

find the idea for his business

Gambrinus is a large company that owns and operates the breweries that produce Moosehead Lager, Bridgeport Ale, Pete's Wicked Ale, Corona beer, Trumer Pilsner, and Shiner Bock. Each brewery is run as an independent division and each produces a malt liquor that appeals to a different market. This is an example of departmentalization by:

product

Larry Gomez is a warehouse manager for a company that markets electric generators. In this small entrepreneurial firm, there are direct lines of communication and authority flowing from the company's CEO down to Gomez and through her to the workers in the warehouse. Gomez works in a _____ organization.

line

Both Kennedy and LaGuardia Airports have established airport management committees. These structures are advantageous because it:

makes the coordination of activities much easier

Pharmacie & Upjohn, a pharmaceutical company, uses a functional structure (research, development, manufacturing, and marketing) within each of its three largest major product divisions. This company is an example of a:

matrix structure

A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.

organization chart

Marc Adler is the owner of Macquarium, a multimillion-dollar communications company that does everything from video productions to creating Web sites to public relations campaigns. Macquarium has done this sort of work for BellSouth and SnapOn Tools. Even though these companies could have prepared their videos and created their Web sites in-house, these tasks were:

outsourced

Ethan Djuna is a territorial salesperson for Lennox heating and air conditioning systems. Every six months Djuna's sales manager gives him feedback by showing Djuna a comparison between his actual sales figures and his sales objectives. This feedback is called a _____ appraisal.

performance

The most common use of a business plan is to persuade lenders and investors to finance the venture

true

____ is financing obtained from investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.

venture capital

Which of the following management terms is NOT associated with the ideal virtual corporation?

core competency

A company with a wide span of control and short chain of command is a _____ organization. A company with a narrow span of control and long chain of command is a _____ organization.

flat; tall