B&E 201 EXAM #1
Market research teams will be formed for each geographic division to conduct ongoing surveys and focus groups with customers.
more responsiveness
Planning
Establishing goals for the organization and developing strategies to accomplish them.
The maximum individual tax rate varies from country to country. The lowest maximum individual tax rate is in the British Virgin Islands (0%).
The right to create wealth
Entrepreneurship
accepting the risk of starting and running a business
leveraged buyout
an attempt by employees, management, or a group of private investors to buy out the stockholders in a company, primarily by borrowing the necessary funds
3 primary styles of leadership
autocratic, participative, and laissez faire
higher efficiency
centralized
New employees at Disneyland receive approximately one week of training before actually performing their jobs. The training includes an explanation of the dress and conduct code, a description of how to interact with customers, a review of safety procedures, and a tour of the entire park. Select the objective that best describes the training structure at Disneyland.
control
FCPA Foreign Corrupt Practices Act
criminalizing the act of paying foreign business or government leaders to get business, complained that this law put their businesses at a competitive disadvantage when bidding against non-U.S. companies, since foreign companies don't have to abide by it.
Decision making occurs rapidly
line
Individuals can provide key regulatory oversight
line and staff
A clear specified path for communications
line structure
How will individuals be grouped to work together?
second
On average, it requires over 100 days to incorporate a company, and obtaining necessary permits takes 400 days. And some key industries are owned by the state, so you would need to evaluate whether private businesses in your industry are even allowed.
Socialist
Citigroup: Our goal for Citigroup is to be the most respected global financial services company. Like any other public company, we're obligated to deliver profits and growth to our shareholders. Of equal importance is to deliver those profits and generate growth responsibly. Citigroup supports the
Socioeconomic Model
What is the first step in the design planning process?
design product line
greater top management control
centralized
faster decision making
decentralized
A highly-mechanized assembly line that produces washing machines
wide span
meat processing plant
wide span
3 phases of HRM
1. Acquisition: recruiting and hiring new personnel. 2. Maintenance: encouraging employees to remain with the firm and work effectively. 3. Development: improving employee skills and expanding their capabilities.
Small Business Administration (SBA)
A U.S. government agency that provides information, advice, and funding to small businesses.
six sigma
A disciplined approach that relies on statistical data and improved methods to eliminate defects.
supply chain manufacturing
A disciplined approach that relies on statistical data and improved methods to eliminate defects.
limited liability company (LLC)
A form of business that combines the benefits of a corporation and a partnership while avoiding some of the restrictions of those forms of ownership.
corporation
A form of business that is a separate legal entity with most of the legal rights of a real person.
Just-in-time inventory
A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line.
human resource management (HRM)
All the activities involved in acquiring, maintaining, and developing an organization's human resources.
Capitalism
An economic system where individuals own and operate the majority of businesses, with very limited government intervention.
Organizing
Arranging resources and activities in a way that effectively and efficiently accomplishes the goals.
Ethical Dilemmas
Choices are not always easy, and the obvious ethical solution may have personal or professional drawbacks. Sometimes there is no easy alternative in such ethical dilemmas because you must choose between equally unsatisfactory alternatives.
Another printing company is opening an office several blocks away
Competitive
Printing companies from China have begun to aggressively market their services in the U.S. by offering very low prices and fast overseas shipping.
Global
GDP
Gross Domestic Product - the total value of final goods and services produced in a country in a given year
Meet with union officials to promote joint union/management activities
Interpersonal
Controlling
Measuring results against goals and making corrections when needed.
With no minimum capital standards, starting a company only requires some simple paperwork. Flexible labor regulations means you can hire employees as long as you follow certain guidelines and laws.
Mixed
Venture Capital
Money invested in high-growth companies that have the potential to become large and successful.
Chipotle Mexican Grill refers to themselves as a "fast casual" restaurant in order differentiate themselves from "fast food" chains like McDonald's and Burger King. In addition, Chipotle also emphasizes their commitment to using naturally raised animals and buying ingredients from local, family farms - something that most of their competitors don't do. Based on this example, what degree of competition exists within this industry?
Monopolistic Competition
You are the head of resource planning at a major diversified products company based in London, England. Your company has multiple product divisions engaged in everything from the construction of oil pipelines to business financing. Which of the following resources is least likely to be required by the business financing division of your company?
None of these
United and Delta recently cut their prices for flights between Los Angeles to Seattle to $199. In response, Alaska Airlines cut their price from $239 to $199 for flights between Los Angeles and Seattle in order to remain competitive. Based on this example, what degree of competition exists in the airline industry?
Oligopoly
Younger consumers do not seem to use your products as frequently as older consumers do.
Social
ADM: To unlock the potential of nature to improve the quality of life. ADM supports the
Socioeconomic Model
joint venture
The creation of a separate company that will be run jointly by partnering firms.
Right to be Heard
The customer switchboard is open weekdays from 11:00 am to 3:00 pm
Right to Safety
Their bestselling car model has been recalled for steering problems three times in the past year.
Crowdfunding
When entrepreneurs invite people to contribute to a business or project, usually via an online platform.
Fiscal Policy
Whether to change the levels of taxation and government spending to influence the economy
Monetary Policy
Whether to make changes to the money supply or interest rates to influence the economy
You are opening a small appliance repair business to serve your local community. You need funds to purchase tools, testing equipment, and appliance repair manuals. You also need to lease and renovate a facility. Your likely source of funds for this startup business is
a home equity loan
SWOT
analyzes the organization's strengths and weaknesses, and the opportunities and threats it faces, usually in that order
he Volvo Group's vision is to become the world leader in sustainable transport solutions by creating value for customers in selected segments; pioneering products and services for the transport and infrastructure industries; improving driving quality and safety; advancing environmental care; and working with energy, passion, and respect for the individual. Businesses can benefit society by offering valuable products. Based on the above description what values does Volvo provide? Select all that apply.
b. Increasing value for money c. Increasing safety and health d. Increasing quality
Division of Labor
begins with determining what work needs to be done and then dividing up the tasks among workers
sole proprietorship
business owned, and usually managed, by one person, most common form
Your brother Ron is going to be part owner in the business; you will operate the business together.
business ownership and control
Cooperatives
co-op, is owned and controlled by the people who use it—producers, consumers, or workers with similar needs who pool their resources for mutual gain
A manufacturer of medical supplies must ensure that its products meet strict FDA standards.
control
Evaluate the quality of the good or service
conversion stage
trade associations can promote ethical behavior by
exerting pressure on members to stop unethical practices
The marketing campaigns created by our department are hugely popular and customer interest is off the charts. If only the operations department would stop being so picky about their quality control processes so that we can get this product out the door. My team's bonuses are based on sales, not reject rates.
function
utilize nominal grouping
generate alternatives
Business startup costs over $3,000
hinder
Cultural tradition of loyalty to specific employers for life
hinder
One month processing of business license application
hinder
ask the why questions five times
identity problem
created project plan with schedule and cost
implement and evaluate solution
Vietnam increases exports of furniture and clothes to other countries in Asia and Europe.
increased jobs and income
participative leadership
involves managers and employees working together to make decisions
"What if business doesn't go as planned and I get stuck owing my suppliers money? Who's ultimately responsible for paying that?"
legal and financial liability
At any given time you will need to buy at least $100,000 in inventory from suppliers and you worry about what happens if the business struggles and you can't pay these suppliers.
legal and financial liability
Autocratic Leadership
making managerial decisions without consulting others
Draft a list of prices for the services that you will provide.
marketing plan
Automobile Manufacturer
materials and labor resources
Food Processing Company
materials and labor resources
Gold Mining Company
materials and labor resources
Expertise can be shared across departments
matrix
a hollywood movie studio
narrow span
a pharmaceutical research company
narrow span
Decentralized
occurs when decision making is delegated to lower-level managers and employees more familiar with local conditions than headquarters management could be
acquisitions
one company's purchase of the property and obligations of another company
Project what type of facilities you will need.
operations plan
4 key functions of management
planning, leading, controlling, and organizing
Luxury Furniture Maker: Multiple stations are setup in the production factory and the custom furniture moves to various stations depending on specifications of the customer order.
process layout
You must evaluate the best facility layout choice for your manufacturing client using the client's list of objectives: The layout should facilitate the production of a large number of standardized products. The cost associated with handling production-related raw materials should be minimal. The processing time required to produce a given product unit should be fast. The space requirements for the facility layout should be minimal. Which facility layout should you recommend to the client?
product
Develop concept or idea for a new good or service
production inputs stage
Economies of Scale
refers to the fact that companies can reduce their production costs by purchasing raw materials in bulk. The average cost of goods decreases as production levels rise
Demand Curve
refers to the quantity of products that people are willing to buy at different prices at a specific time.
n June 2012, you traveled to France on vacation and stayed at a hotel in Paris. In January 2014, you took another trip to the same hotel for the same number of nights. The price of the room was 300 euros per night, the same as it was on your 2012 trip. The cost of your hotel bill on the 2014 trip (in U.S. dollars) compared to the cost of the 2012 trip was _____.
slightly more
Ethics
society's accepted standards of moral behavior, that is, behaviors accepted by society as right rather than wrong
An individual wants to open a small carpentry business and wants to register its name, buy a business license, and begin business operations.
sole prop
Comparative Advantage
states that a country should sell to other countries those products it produces most effectively and efficiently, and buy from other countries those products it cannot produce as effectively or efficiently
Access to free advising from SBA Score counselors
support
Business startup costs as low as $50
support
capacity
the amount of product that an organization can produce in a given period of time
facility layout
the arrangement of machinery, equipment, and personnel within a production facility.
partnership
two or more people legally agree to become co-owners of a business
Your company has been making the same product lines for years now, but you believe there are many opportunities for expanding the product mix and reaching out to entirely new markets. So you put together a strategy document to share with your supervisor.
vision
Advantages of Franchise
1.Management and marketing assistance 2.Personal ownership 3. Nationally recognized name 4.financial advice and assistance 5.lower failure rate
Advantages of a partnership
1.More financial resources 2.Shared management and pooled/complementary skills and knowledge 3.Longer survival 4.No special taxes
Departmentalization
The process of grouping people into manageable units.
You and a partner equally invested $10,000 to start a home appliance repair business. You formed the business as an LLC. After a year in operation, the business is deeply in deblt with $100,000 owed to creditors. As a result of the large amount of debt, you have agreed to close the business. Once you close the business, your creditors sue the business for the $100,000 owed to them. Which of the four outcomes below is correct?
d. As owners of the LLC, you are not liable for the $100,000.
Disadvantages of Franchise
1.Large start-up costs 2.Shared profit 3.Management regulation 4.Coattail effects 5.Restrictions on selling 6.Fraudulent franchisors
Advantages of Corporations
1.Limited liability 2.Ability to raise more money for investment 3.Size 4.Perpetual life 5.Ease of ownership change 6.Ease of attracting talented employees 7.Separation of ownership from management
Over a series of business cycles, one might find a peak, a trough, a period of expansion, and a period of contraction. Which of the following statements is true?
a. A recession is a period of contraction that follows a peak.
There are many benefits of studying business. Please select the choices below that represent benefits of studying business.
a. Potential success in a career in business. b. Ability to evaluate different career choices. c. Increase ability of making better purchasing decisions by evaluating marketing claims.
Joe Beanne, of Cup of Joe Coffee Shop, is putting together a business plan and needs to know which of the following he should include as components of the plan? Check all that apply.
a. There are a lack of coffee shops in the area c. Will open by spring and will be profitable by year 2 d. $30,000 is needed for renovations to the space he rents e. Joe sells coffee and donuts
You manage and operate a local toy store. As part of your continual efforts to bring new toys to your customers, you come across a small doll that has appeal to individuals of diverse ethnic backgrounds. You put the dolls up for sale and they fly off your shelves so quickly that you have difficulty keeping them in stock. One day you see an article online that claims the head of this doll can be easily removed and may create a choking hazard for small children. You are concerned about that, but conclude that if the doll is truly unsafe it will be recalled. You decide to keep selling the dolls. Select the two Consumer Rights that are affected by your decision.
a. the right to safety d. the right to be informed
Last year, a Swedish company began production of solar panels suitable for powering small homes. The product has a great deal of promise, but the panels are more expensive to produce than panels manufactured in Norway. As a result, Sweden has imposed a tariff on the import of solar panels from Norway. Which of the following are reasons cited by the government of Sweden for this tariff? Check all that apply.
a. to protect domestic employment c. to protect new and emerging industries
Aflac's mission statement is as follows: To combine aggressive strategic marketing with quality products and services at competitive prices to provide the best insurance value for consumers. Businesses can benefit society by offering valuable products. Based on the above mission statement what values does Aflac provide? Select all that apply.
b. Increasing quality d. Increasing value for money
You decide to leave your current job and open a picture frame franchise. The franchisor is rather large, with over 150 stores nationwide. In preparing to purchase the franchise, you recognize the need to set money aside for startup expenses. You will need to set aside money for which of the below items? Check all that apply.
b. The payment of a franchise fee to the franchisor c. The cost of remodeling the facility that you have selected d. The cost of purchasing framing materials to get started
In 2014, Facebook purchased messaging service WhatsApp for $19 billion. WhatsApp is a rapidly growing standalone messaging app that even Facebook users often utilize in place of the Facebook messaging feature. This possibly explains why Facebook was willing to pay such a high price for a company that had no profits at the time of the purchase. It has also been noted among industry experts that messaging apps have become increasingly popular as a replacement for email, especially among younger generations. Based on the information above, which of the following statements is true about the WhatsApp messaging service?
b. The shift away from email is likely caused by social factors in the business environment.
Monopolies maintain their hold on a market when there are barriers to other firms entering the industry. Which of the following statements describe barriers to entry? Select all that apply.
b. When a massive investment is required to start a business it creates barriers to other firms entering that industry. c. When the government highly regulates an industry it creates barriers to other firms entering that industry.
Redesign the good or service if necessary
conversion stage
A catering company will be formed, and once formed, its first contract will be to provide food services to a major computer company at all of its campuses in the U.S. The caterer will need to open offices, hire employees, and purchase inventory. The start-up costs will come to $250,000.
corp
When considering which structure to choose for your new business, you think through your strengths and weaknesses. One of your strengths is that you are very good at bringing people together around common goals and a shared vision. A weakness is that you don't have sufficient capital to start the business alone and you need to recruit a number of investors. The form of business that will address these strengths and weaknesses is
corp
Our team was about to close a big deal with a school district, but the business sales team sold the entire inventory to someone else. We lost the sale on our side, and the school district now sees us as unreliable.
customer
increased innovation
decentralized
Your brother's wife is an attorney who offered to handle all the startup paperwork, which is nice because you wouldn't know where to start.
ease of startup and admin
Meet with local community groups to insure that the business is seen as a good neighbor
interpersonal
Accurately communicating the objectives of top management to the entire team.
interpersonal skills
Determine how your pet care business will be unique.
product description and market analysis
Export
selling products to another country
Today's Managers
some managers tend to be more progressive, they emphasize teams and team building, emphasize teamwork and cooperation rather than discipline and order giving
Television shows where entrepreneurs pitch their idea to investors
support
Two-day processing of business license application
support
Affiliate Marketing
an Internet-based marketing strategy in which a business rewards individuals or other businesses (affiliates) for each visitor or customer the affiliate sends to its website.
stronger brand/corporate image
centralized
Draft a breakeven analysis.
financial projections
Automobile production related activities
mainly good
6 steps of recruiting
1. Attract candidate pool. 2. Screen candidates. 3. Interview candidates. 4. Compare candidates. 5. Check references. 6. Make job offer.
franchise agreement
An arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory.
Commercial Bank
Information resources
Only state enterprises can enter into economic agreements with foreigners as minority partners; ordinary citizens cannot participate. All means of production are owned by the state.
Communist
Leading
Influencing people in the organization to work toward a common goal.
You run a profitable printing business and are reviewing expenses to determine if profitability could be increased by using alternate suppliers. You notice that prices from your primary ink supplier have risen significantly in the last two years and determine that this is an area in which money can be saved. You look for other suppliers and discover several that sell ink at prices 15-20% below what you currently pay. When you notify your supplier that you plan to switch to one of his competitors, he offers you a special deal: If you continue to use his product, he will make his tropical vacation home available to you, free of charge, for one-week each summer. Identify the stakeholders who will be affected by continuing business with this supplier?
Investors
You just became CEO of the leading charter jet company. You have never been a pilot, but you know how to make companies efficient and profitable. You employ 100 pilots at 50 airports around the country. Next year the entire fleet of 50 company jets will be replaced. Your supplier has asked what configuration the pilot's cabin in each jet should have in terms of seating, controls, and panels. The price on various configurations is roughly the same and each plane can have a different configuration if needed. What form of leadership best meets the needs of this situation?
Laissez Faire leadership
Oil-producing countries such as Saudi Arabia and Russia became concerned when the price of crude oil dropped 40% in late 2014. Since their oil is fundamentally the same as oil produced by other countries, they must accept the worldwide market price for crude oil. These lower prices favor countries and drilling projects that have a lower cost of production. Based on this example, what degree of competition exists in this industry?
Perfect Competition
You run a magazine publishing company and are approached on January 10th by the salesperson from your largest ink supplier. She advises you that the company just announced a price increase effective January 1, however, she will accept an order at the old prices if you submit the order today and backdate the order to December 28. You ask why she is willing to do that and she explains that her commission rate was higher under the old pricing structure and by backdating, not only do you get a lower price, but she will get a higher commission, and you can claim this purchase as an expense for last year which will lower your taxes. Determine which of the following answers best describes the situation above and your business decisions.
Not legal and not ethical
Bristol-Myers Squibb Company: To discover, develop and deliver innovative medicines that help patients prevail over serious diseases. Bristol-Myers Squibb supports the
Socioeconomic Model
recruiting
The process of attracting qualified job applicants
Venezuela is a socialist country where the average tariff rate on imports is 8.6 percent. This rate is fairly high. Non-tariff barriers restrict imports of cars and agricultural products. It may take several weeks to import goods. This limits the ability of businesses to import goods at a reasonable price.
The right to economic freedom and the freedom to compete
Hong Kong is a mixed economy where the competitive regulatory regime aids business formation and innovation. North Korea is a communist country where entrepreneurial activity is non-existent because the state continues to regulate the economy heavily through central planning and control.
The right to limited intervention
The European Convention on Human Rights states "Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law".
The right to own property and resources
Networking
Using communications technology and other means to link organizations and allow them to work together on common objectives
During a problem solving session, participants make a number of statements about "problems" at the company. Some of the statements reflect actual problems. Others are merely symptoms of an underlying problem. Select the statement(s) that represent the actual problem. Check all that apply.
a. "We had our first injury of the year. There was an accident on our shop floor because a leak from a truck's oil pan left an oil slick on the floor." d. "Three customers complained this week that the packages they received from our new carrier were damaged in transit. We found it was due to rough handling of the packages by our new drivers."
You have opened a small business that is now thriving to the point where expansion is possible. You project moderate, but steady, growth for the next several years. Which source of funding best fits your situation and needs?
bank loan
You have been hired as global marketing director for a successful chain of sushi restaurants in the U.S. and Canada. Your company wants to expand worldwide, but is finding it particularly difficult to expand in certain Middle East countries. You notice there is only one other large chain of sushi restaurants in the Middle East, and they are very successful. Your market research indicates that the population could support more sushi restaurants. You do not have much operating experience I these countries and the local regualtions, tax laws, and other legal uncertainties make your expansion a risky endeavor. Your company's top priorities are to gain market share quickly and to have control over the quality of the restaurants; however, you also want to limit the risks associated with opening restaurants in a new market. What is your best option from the choices below?
b. Acquire the existing sushi chain in the Middle East.
You operate a business that has become stagnant; in fact, the company fell 30% short of its revenue target for the year. Your employees don't seem to have the same level of enthusiasm that they once had for being the best in your industry. As the manager, what is the best way to remedy the situation?
c. Meet with each team member to discuss their career goals and learn about what motivates them.
"Who is going to make the day-to-day administrative decisions? Do I want to make those decisions alone, or am I willing to share them with others?"
control and transfer of ownership
You have been staying late to finish up the latest product launch, but you feel great. It has been a dream of yours to see the company bring this new product to market.
energy
Who will perform each of the tasks needed to run the business?
first
How many employees should report to each manager?
fourth
Coordinating their activities with other middle managers in the company.
interpersonal skills
Specialized support is available to managers
line and staff
Our software company has multiple departments who handle their own HR, marketing, and financial management functions. While this isn't always efficient, it serves the needs of our company in other ways.
location
Clothing and textile related activities
mainly good
You are an independent consultant. You have been hired to help a large manufacturing company implement their company's strategic plan. It is important that you first meet with those who are responsible for actually implementing the plan. You want to gather feedback from them as to what types of plans they have been asked to implement in the past, what has worked, and what has not. You should first meet with
middle management
Brazil increases imports of agriculture products from a number of countries, including countries that grow crops not available in Brazil.
more choices for customers
Two production facilities will be shut down and all manufacturing will be consolidated into the two remaining facilities.
more efficiency
Production employee teams will be formed to analyze production processes and implement quality improvements.
more empowerment
Ship completed goods or service
output stage
Five people will form a consulting business with each person investing equal amounts and expecting to receive equal profits. The owners will specify how and when other people might be allowed to become a part of the business, but they will limit admission to those who bring specific expertise the team does not already have.
partnership
Governments can promote ethical behavior by
passing legislation that protects individuals who report ethical violations
BMW/X5 SUV: X5 SUV moves along an assembly line in the BMW manufacturing plant and parts are attached by workers.
product layout
"How much of my profits will I get to keep after taxes?"
taxes and division of profits
You'll split profits with your brother 50/50.
taxes and division of profits
Ensure that current HR policies and procedures are in compliance with state, federal, and local laws
technical
Balance of Trade
the total value of a nation's exports compared to its imports measured over a particular period.
Disadvantages of partnership
1.Unlimited liability 2.Division of profits 3.Disagreements among partners 4.Difficulty of termination
Rate each alternative according to criteria.
select and alternative
Disadvantages of Corporations
1.Initial Cost 2.Extensive paperwork 3.Double Taxation 4.Two tax returns 5.Size 6.Difficulty of termination 7.Possible conflict with stockholders and board of directors
functional area
A group of employees who specialize in a particular business function, such as marketing or finance.
Monopolistic Competition
A market situation in which there are many buyers along with a relatively large number of sellers, who need to differentiate their products.
The company has just received a lawsuit from a former employee on the production line who claims they were a victim of age discrimination.
HR
You work in a very noisy environment. Your supervisor notices that you are not wearing your earplugs and directs you to put them on. You have tried wearing them in the past, but do not like the way they feel in your ears, so you refuse to put them on. After all, it's your ears that are involved, not your supervisor's. You meet with the Human Resources manager to inquire about this situation. The HR manager explains that your supervisor has the right to discipline you for failing to wear ear protection. This rule falls under what category?
Health and safety
Healthy eating habits have become a high priority for Baby Boomers. Salmon has been identified as a heart healthy antioxidant rich fish. The price of fresh salmon has increased in each of the past ten years. According to the law of supply and demand, the quantity of salmon provided should
Increase
WTO
International organization with 159 member nations formed as a permanent forum for trade negotiations and dispute settlement.
ConocoPhillips: Use our pioneering spirit to responsibly deliver energy to the world. ConocoPhillips supports the
Socioeconomic Model
Becton, Dickinson and Company: To help all people live healthy lives. Becton, Dickinson and Company supports the
Socioeconomic Model
Right to be Informed
The dealer will not allow shoppers to see the VIN number, which would allow shoppers to run a report on the vehicle's history.
Right to Choose
The dealership only sells new vehicles that it has on the lot. It will not order vehicles with customized options that are available at other dealers.
cultural ( or workplace) diversity
The differences among people in the workforce in terms of ethnicity, gender, religion, age, and physical or learning abilities.
Whistle-blowers are individuals who report misconduct on the part of their employer to state, federal or local governmental agencies. That misconduct may involve issues related to environmental protection, civil rights, safety and health, financial reporting, and more. The federal government protects individuals against discrimination by their employers if the employees report such ethical violations. The following are concerns that you may come across on the job. Which of these cases would involve whistle-blower protection should you report them? Select all that apply.
a. A supervisor directs an employee to remove a safety guard while operating a piece of machinery to save time. c. A supervisor fails to promote employees based upon their race. e. A supervisor directs employees to dump toxic materials into a storm sewer.
You are part of the facilities planning team at Caterpillar Corporation, which makes large construction equipment. Your team is evaluating a number of new sites for manufacturing facilities. There are a number of important considerations that must be weighed in your decision-making process. Select all the key variables from the list below that your team should consider when choosing a site for the new manufacturing facility.
a. Access to sufficient water resources b. Building costs of the new facility c. Close proximity to major technical and professional education institutions f. Proximity to major customers
Advanced Auto Parts: It is the Mission of Advance Auto Parts to provide personal vehicle owners and enthusiasts with the vehicle related products and knowledge that fulfill their wants and needs at the right price. Our friendly, knowledgeable and professional staff will help inspire, educate and problem-solve for our customers. Businesses can benefit society by offering valuable products. Based on the above description what values does Advanced Auto Parts provide? Select all that apply.
a. Increasing choice d. Increasing convenience e. Increasing value for money
CBRE is a large real estate company with offices all over the world. A key part of their marketing strategy is to hold networking events each month. Instead of managing these events themselves, CBRE outsources event planning and management to small, independent vendors in each city. Which of the following statements are true about CBRE's outsourcing strategy. Check all that apply.
a. It is likely less expensive to outsource the planning of local events than to have event planners on staff. c. Since all of these events are local, there is no real advantage to creating a large, centralized planning department at CBRE.
A salesman for a supplier's firm approached you and said that, as a result of an order cancellation by one of his customers, he had a truckload of print paper that he could sell you at a price 15% below what you would normally pay. You verbally agree to accept the order for shipment immediately, but the next day, as you reflect on your decision, you conclude that you acted in haste and could have probably secured an even better price. You call the salesman and cancel the order but he responds that the shipment was already dispatched and is on the way to your facility. You respond by saying you will only take delivery if you can get an extra 10% off the entire order. Determine which of the following answers best describes the situation above and your business decisions.
a. Legal but not ethical
A large electronics manufacturing firm makes HD televisions for export around the world. The firm is fairly new. This industry is extremely price competitive; building a solid market share quickly is the only path to survival. The company makes a limited number of models so that manufacturing can be standardized which keeps quality high. All employees work at the main factory, except for a handful of sales teams that have small offices in key cities around the world. Not much changes in the company from month-to-month, except that sales volume is steadily increasing. When designing their organization structure, what choices will support the goals and culture of this organization? Check the five choices that apply.
a. Organize company by function e. Managers with wide span of management i. Line structure at headquarters j. Jobs with high degree of specialization k. Centralize decision making at headquarters
If Nigeria, the Ivory Coast, and Ghana are successful at building some basic infrastructure for their economy, the next step may be to look for ways to foster free trade among African countries by creating an economic community. What are the likely goals of this economic community? Check all that apply.
a. Promote political and economic cooperation between the countries. c. Decrease import tariffs between the countries.
You work for a furniture manufacturing company and have been asked to conduct the annual review of lumber suppliers to ensure that your company is getting the highest quality lumber at the best price. After an extensive investigation, you determine the company's current supplier provides the highest-grade lumber at prices 5% lower than any other suppliers; however, while doing this research you discover that the supplier is co-owned by your best friend's wife. Which of the following most accurately describes what you should do?
a. Recommend your current supplier because they meet the criteria set by your company, but disclose to your managers that you know one of the supplier's owners.
You are president of a small business industry association that has been called to testify before the U.S. Congress. Due to budget constraints, there is fear that funding for the Small Business Administration (SBA) might be cut. Which of the following are facts about small business in the U.S. that you would use to argue against cuts to the SBA? Check all that apply.
a. Small businesses employ over 40% of high-tech workers. b. Over 50% of net new jobs come from small businesses. e. The vast majority of all firms with employees are small businesses, making them a huge source of jobs for our economy.
Ministers from the western African countries of Nigeria, Ivory Coast, and Ghana recently met in an effort to discuss ways to increase the economic vitality of their countries. They all agree that the primary problem faced by their countries is lack of basic infrastructure, such as roads, schools, utilities, and medical facilities. They would like to appeal for help from the international community, which organization should they approach for help?
a. The World Bank
The United States has long had an embargo on goods from Cuba. However, recently there have been discussions about lifting that embargo. If that embargo is lifted, what are the likely outcomes? Check all that apply.
a. The volume of trade between Cuba and the U.S. will increase. d. Trade relations between Cuba and the U.S. will improve.
You are a snack food company that sells a variety of healthy snack products to various customer groups, such as: Independent health food stores Large supermarkets Gyms Convenience stores There is quite a bit of overlap in the products that each of these customers buys from you. Each of your major product lines does over $5 million in annual sales, but a few of them do over $10 million. As a result, you decide it would be best to divide your business along product lines to improve your responsiveness to the changing needs of the end consumer. What are some likely divisions that will exist within your newly reorganized company? Check all that apply.
b. Granola Snacks Division d. Kale Chips Division
You recently entered into a licensing agreement with Wilson Sporting Goods to manufacture and distribute its footballs, basketballs, and volleyballs in Asia. Wilson has given you permission to use its name, manufacturing specifications, and marketing designs. You will build and maintain the factory overseas. Wilson gains several advantages by entering this agreement with you. What is the key disadvantage for Wilson Sporting Goods?
b. Lack of quality and branding control.
The balance of trade equals exports minus imports. Since the inception of NAFTA, U.S. exports to Mexico have grown from $50 billion to $221 billion, while imports from Mexico have risen from $49 billion to $270 billion. During that same period, U.S. exports to Canada have grown from $114 billion to $287 billion, while imports from Canada have risen from $128 billion to $317 billion. Select two trends from the list below that have resulted from the NAFTA agreements:
b. Mexico's balance of trade with the U.S. has increased. f. Canada's balance of trade with the U.S. has increased.
You are the lead engineer for an athletic shoe company. Top management has asked you to somehow reduce the weight of your product by 20% without losing any of its function or durability. They want this new product ready for production within six months. You believe this goal is possible and have promised top management it will be achieved. You have a team of 20 industrial designers who are responsible for designing your company's shoes. Which leadership style should be adopted for this situation?
b. Participative leadership
On an overseas business trip you stop in Ukraine to meet with one of your primary suppliers to discuss the excellent partnership you have built in the last year. Sales and profits have increased for both of your companies. During the conversation, the owner of your supplier says, "If it weren't for the IMF, none of this would have been possible." Her mention of the IMF most likely means that Ukraine_______.
b. recently experienced an economic crisis and needed funds to stabilize its economy.
You eventually hope to buy the building you are leasing. You and Ron have agreed that in 15 years you hope to sell the business, and having real estate packaged with the deal will make your business more valuable.
business ownership and control
Business Plan
business plan is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s)
Import
buying products from another country.
A woman who recently migrated from Romania is hired to serve as a customer service representative. Three weeks into her employment, seven different customers have complained. All insist that they cannot understand her strong accent. That concern was noted during the employee's job interview, but the decision to hire was made anyway. You can terminate the individual because, as a result of her strong accent, she is unable to communicate effectively with customers. What was the cause of this employee's termination?
c. Inability to perform the job
A situation has arisen which requires an ethical decision to be made. To make an ethical decision the following steps are followed: 1) the situation is discussed and the associated problems explored, 2) the situation is carefully reviewed to determine how individuals are affected, and 3) ___
c. put strong feelings aside and come up with alternatives.
Create a long-term staffing strategy to einsure that trained individuals will be available should the business choose to expand
conceptual
Evaluating organizational goals and incorporating them into departmental goals.
conceptual skills
Sales revenue is down 10% last month compared to the same month a year ago.
marketing
It can be challenging for startups to access most outside sources of funding. You mentioned this when your good friend Colby confided in you that he really wants to finish school quickly so he can get on with his career as a music performer. He said he needs about $50,000 to record his first album and go on a short tour to promote it. Colby mentions that in today's music industry, artists often make more from touring than from album sales - but the album is needed as a platform for promoting yourself as an artist. Colby's uncle has said that he might be willing to provide these funds if Colby can first show that there is a market for his work and that he can make a living at this venture. In other words, Colby must provide "proof of concept" before he's willing to invest. Select the items below that will help Colby provide proof of concept. Check all that apply.
d. Using social media, Colby promotes one of his songs and builds a list of over 300 people who prepay for the album. e. Colby performs a concert at a local hangout, charging $10 per ticket and selling the place out.
Many corporations have chosen to downsize and outsource to remain profitable. As a result, many talented individuals have been forced to find other sources of employment. Corporate downsizing _______________
d. has led to an increase in small business formation because corporations often have specialized needs that can be filled by former employees.
Commercial Airplanes: Airplane is stationary in the production hanger and workers and equipment move to it.
fixed position layout
Your family has owned an Italian restaurant since before you were born. In the last 5 years, your family has opened three new locations - all of which have been successful. Now your family is considering moving to a franchise business model. They ask you to specify how the franchise will be set up. You create an arrangement where there are many advantages for the franchisee. However, there is one tradeoff that could drive away potential franchisees. What is it?
. The franchisee will cover the cost of remodeling the franchise location.
You are meeting with your company's raw materials purchasing agents. As a group, you are discussing when raw materials orders should be placed based on production needs and supplier lead times. You have compiled the following production needs and lead time information: After you place an order for raw materials, the shipment usually arrives at your warehouse five days later. You determined that your production processes use about 300 units of raw materials per day. You want to keep your inventory carrying costs down and your supplier has a 100% on time-delivery rate; as a result, you decide to carry no inventory buffer. Based on the information presented, and given your daily raw materials usage and the lead time for raw materials orders, what minimum units of raw materials inventory should your company maintain at all times?
1500
You are the senior financial analyst in the Operations Management department at Silicon Graphics. Your manager has asked you to determine how much the company could save each year if it converted to a just-in-time inventory system. Currently, the company maintains an inventory of raw materials that must be stored in a warehouse until they are requisitioned for production. If converting to just-in-time, you would no longer carry inventory because suppliers would deliver raw materials as needed. The following inventory-related information is relevant to your analysis: A. On average, Silicon Graphics maintains 100,000 units in its raw materials inventory daily. B. The inventory holding cost is approximately $0.10 per unit per day. C. The annual rent expense for the inventory warehouse is $75,000. D. If Silicon Graphics converts to a just-in-time inventory system, the holding cost will be eliminated and the warehouse will no longer be needed. Based on the information provided, how much could Silicon Graphics save on inventory carrying costs each year if it converts to a just-in-time inventory management system (assume a 365-day year)?
3,725,000
You work at Ford Motor Company and are responsible for determining weekly production capacity for the Juarez, Mexico assembly plant. There are 21 days left in the production month. Your sales manager just informed you that 4,725 vehicles need to be produced in the upcoming 21 days to meet projected sales demand in the United States. Your production capacity constraints are as follows: Each assembly line shift runs for eight hours, and you can run a maximum of three shifts per day. Each shift can produce 75 cars when operating at full capacity. You can run your assembly operations seven days a week, if necessary. A fully staffed assembly line shift requires 100 production workers. How many worker-hours (number of workers x number of shifts x 8 hours) will you need to staff over this time period?
50,400
You work at Ford Motor Company and are responsible for determining weekly production capacity for the Juarez, Mexico assembly plant. There are 21 days left in the production month. Your sales manager just informed you that 4,725 vehicles need to be produced in the upcoming 21 days to meet projected sales demand in the United States. Your production capacity constraints are as follows: Each assembly line shift runs for eight hours, and you can run a maximum of three shifts per day. Each shift can produce 75 cars when operating at full capacity. You can run your assembly operations seven days a week, if necessary. A fully staffed assembly line shift requires 100 production workers. How many assembly line shifts will you need to run over the next 21 days to reach your production goals?
63
franchisor
A company that develops a product concept and sells others the rights to make and sell the products.
To learn more about the competitive environment where your printing company operates, you hire a market research firm to survey your community. After several weeks, the market research firm reports finding numerous competitors in your community that offer similar products and services. Your industry can best be described as monopolistic competition. You have four options. They are: A. Minimize your cost of production B. Clearly differentiate product from competition C. Match competitor pricing and differentiate your product (if possible) D. Exploit your industry's natural barriers to entry and quickly achieve a large market share The strategy that best addresses your competitive situation is
B
total quality management (TQM)
Coordinated efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier relationships, and facilitating an organizational atmosphere of continuous quality improvement.
Last year, you opened a mail order computer repair business which you funded with investments from four members of your extended family who each received 10% of the company in exchange for the investment. Your business has grown and needs more space to expand. You recently saw a space at an industrial park that is available for lease and believe it presents the ideal location for your business, although the space will require some renovation. The city where the industrial park is located has targeted it as one of their priorities for economic development; as a result, they are offering tax credits to businesses that move into the industrial park. You decide to sign a lease and begin preparing for renovations. Which stakeholders are NOT affected by your decision?
Customers
The economy in your area is expected to be stagnant for at least the next 12-18 months.
Economic
Fear of diabetes, high blood pressure, and heart disease have prompted many Baby Boomers to develop healthy eating habits. As a result, they are willing to pay more for healthier food options, such as grass-fed beef. In the past, grass-fed beef has not been widely available.According to the law of supply and demand, what is the most likely outcome from this social change in the business environment? A. Supply will fall until the equilibrium price is met. B. Supply will remain the same because suppliers of grass-fed beef are able to make higher profit on the same number of cows. The price will increase until the equilibrium price is met. C. Supply will increase because higher prices make it more attractive for farmers to supply grass-fed beef. Supply will increase until supply meets demand at the equilibrium price. Supply will
Increase
You are the leader of the project management office at Cisco Systems. One of your key responsibilities is to devise contingency plans for activities that are on the critical path of any of the company's major projects. You were assigned this responsibility because Cisco wants to be able to proactively respond to potential delays. In order to carry out this responsibility, you must do a detailed analysis of all the activities in each major project to determine which activities need a contingency plan. Whether an activity is on a project's critical path is a function of four dates related to the activity: Earliest Start Date (ES) - the earliest time the activity can start. Earliest Finish Date (EF) - the earliest start time, plus the time required to complete the activity. Latest Finish Date (LF) - the latest time an activity can be completed without delaying the project. Latest Start Date (LS) - the latest finish time minus the time required to complete the activity. An activity is on the critical path if both of the following are true: ES=LS EF=LF The activities for an upcoming product release are listed below with their respective ES, EF, LF and LS dates: Activity ES Date EF Date LF Date LS Date Phase 1 Activity 5/16/2014 6/30/2014 6/30/2014 5/16/2014 Phase 2 Activity 6/16/2014 7/31/2014 7/31/2014 6/21/2014 Phase 3 Activity 7/16/2014 8/30/2014 8/30/2014 7/16/2014 Phase 4 Activity 8/16/2014 9/30/2014 9/30/2014 8/26/2014
Phase 3 Phase 1
Several years ago, you and a friend started an online home décor retail store. You each invested $30,000 to get the business off the ground. Profits were good for the first few years, then you began losing business as other large retail stores began selling online. While sales were dwindling, you kept purchasing inventory in hopes the market would bounce back. It didn't and now you must close the business. At last check, you owe these suppliers over $75,000; but there is literally $0 in the business bank account. You decide to shut the company down. For each of the ownership structures below, identify the total personal liability for you and your friend.
SP = 75000 P = 75000 LLC = 0 C = 0
More individuals printing cards and brochures from their home and business computers relates to how technology has enabled others to replicate your services, which is a 'technology' factor.
Technology
Business ethics
The application of moral standards to business situations.
performance appraisal
The evaluation of how well an employee is performing his or her job.
Franchises
The right to use a specific business's name and sell its products or services in a given territory.
China - key economy
With more than 1.3 billion people and incredible exporting prowess, China has transformed the world economic map. China has dethroned Germany as the world's largest exporter and surpassed Japan as the second largest economy in the world. According to Goldman Sachs Group economist Jim O'Neill, China could overtake the United States as the world's largest economy by 2027.
You are head of Quality Control at a major pharmaceutical company. You are on a mission to quantify the financial impact of defective products produced by the company. You believe that if executive management understood the financial cost of defective products, it would be more receptive to implementing some of the quality improvement measures you have advocated for years. You compiled the following statistics related to defective products across the pharmaceutical industry: 1. The average defective rate for the industry is 5% of total product units shipped. 2. For every percentage of defective products, a company will incur $10,000,000 of legal-related costs per year. 3. For every percentage of defective products, a company can expect to lose about $5,000,000 of sales in a given year. Additional Information: • Your company has annual sales of $50 billion. • Your company's defective product percentage is 6%. Based on the information presented above, indicate whether each of the following statements is true or false.
Your company's defective product performance is better than the average performance for the pharmaceutical industry: false Your company's defective product performance is resulting in less than $30,000,000 per year in legal costs: false If your company is able to reduce its defective product percentage rate to less than 5%, it will likely see an increase in sales: true If your company's defective product percentage rate increases to more than 7.50%, the company will see its legal costs increase and its sales decrease: true
Operations Management
a specialized area in management that converts or transforms resources, including human resources like technical skills and innovation, into goods and services
Hierarchy
a system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers and others who are responsible to that person
Organizational Chart
a visual device that shows relationships among people and divides the organization's work; it shows who reports to whom
When a manager designs a specific job, she takes many different factors into account; among them, she must consider whether efficiency or empowerment is more important for that job to be completed successfully. Select the jobs below where efficiency should take priority over empowerment. Check all that apply.
a. A florist who creates a standardized set of floral bouquets for supermarket chain stores throughout the area. c. A line chef who prepares dinners at a high volume chain restaurant.
Several years ago you opened an electrical business. In the beginning, you handled all jobs in the company. Last year, your business grew to serve a variety of different markets, including residential, commercial, and government contracting. You hired four sales reps and four other electricians to handle this business and drive further growth. This year you grew even bigger and will hire three more sales reps and four more electricians. All of your electricians are very experienced in both low and high voltage work; in addition, your sales reps have key relationships in various customer markets that could greatly expand your business - as long as the reps stay motivated. While you can currently manage the workload without a problem, right now you have a wide span of control, since all employees report to you. You are considering hiring a sales manager and a production manager to oversee each of the teams. This will give each manager a narrower span of control than you have right now. What decision will best meet the needs of your organization?
a. Don't hire the managers, because you have a highly skilled staff and you want them to remain empowered.
You are on a team that meets to solve a problem with the current marketing campaign. After reviewing various options, the team can't decide on the best way forward. You make a case for what you believe is the best solution by laying out the rationale and asking for support. The team agrees with you and elects you to lead implementation of that solution.
confidence
Business
any activity that seeks to provide goods and services to others while operating at a profit
As you emerge from your office to the factory floor, you hear a fire alarm. In the distance you see a significant amount of smoke in your shipping area. Your employees look to you for leadership at this critical time. Select the leadership style that best meets the needs of this situation.
autocratic leadership
Trade policies have both positive and negative consequences to businesses, consumers, and governments. A company in Japan recently proposed a revolutionary new concept for home washing machines that could make all other forms of washing machine obsolete. As a result, other countries may impose a quota on the imports of washing machines from Japan. If a country imposes quotas on imports of the revolutionary new washing machine, which of the following statements would be true?
c. The number of washing machines sold to the country with quotas will decrease and the price will increase.
You just received a patent on your amazing new electronics invention. This invention could provide a legacy that generates income for your children, your grandchildren, and beyond. To bring this product to market and grow this into a real business, you need partners or investors. You find four investors who are willing to invest $100,000 each in exchange for 10% ownership. That will leave you with 60% ownership of the business. Since you will be CEO of the business, you will make all of the day-to-day decisions and if all goes well in the next few years, you might even buy back shares from your original investors so that you can own the whole company again. Once you own all of the shares, you will be able to transfer the company to your children so that the business can continue even after you are gone. Which form of ownership will best meet your needs?
corporation
You have been hired as store manager for a national retailer. The facility is large, with over 40 full-time employees. Your first goal is to increase overall revenue by encouraging sales associates to upsell and cross-sell products. You will measure their performance by tracking revenue per transaction; and you will provide incentives if goals are reached. What is your first step in this process?
d. Organize a meeting with your sales associates to discuss the current revenue per transaction and specify the new target for revenue per transaction.
For years you have been trying to penetrate the German market with your light master brew beer. After numerous failed attempts, you decided to form an international joint venture with a small German brewery to gain a foothold in the market. There are significant risks in starting an international joint venture. One is _____
d. a high level of commitment will be required to oversee the investment.
more employee empowerment
decentralized
more responsive to customer needs
decentralized
You are the head of resource planning at a major diversified products company based in London, England. Your company has multiple product divisions engaged in everything from the construction of oil pipelines to business financing. Which of the following resources will be required by the oil pipeline construction unit of your company?
e. All of these resources will be required
You oversee an assembly line that manufactures rear view mirrors for the automobile industry. Each mirror must conform to strict industry and customer specifications. The assembly line has five individual stations where the mirror is fabricated, inspected, and boxed for shipment. Recently, employee morale has decreased, causing a spike in the number of non-conforming mirrors that must be rejected by the quality control team. In terms of organizational design, what is the best solution to this problem?
e. Implement job rotation to increase sense of employee empowerment and allow them to develop new skills.
You run the manufacturing consulting practice at McKinsey and Company. You have recognized for some time that there is a resurgence of manufacturing in the United States economy. Companies from California to New York are requesting your services to help them structure their newly invigorated production processes in the most efficient and effective ways. You stress to these clients the importance of designing their production processes for long-term success. You advise your clients to design their production processes with a number of strategies in mind; however, when designing their production processes, they should not focus on certain strategies that might undermine their core objectives.Which one of the following strategies will least likely be included in your clients' production process designs?
e. Minimize training costs of production workers
The analysts in your Operations Management department use a variety of tools to document process flows and other sequenced activities. PERT diagrams and Gantt charts are two of the more frequently used tools because they both present an effective visual representation of these process flows. You give your staff the freedom to use either tool in their analyses because you know they both produce similar information about a process. Which of the following statements regarding the similarities between PERT diagrams and Gantt charts is NOT true?
e. They both show the total cost and number of workers needed for a project.
You and a friend will both invest $20,000 into a personal fitness business you are establishing. You will handle most of the day-to-day business operation and all of the marketing. You feel you should receive 70% of the profits from the business because of the time and expertise you will be providing to the business. Your friend agrees you should receive more of the profit, but believes that since you are investing an equal amount, the profits must be split equally. You consult an attorney. What advice from the attorney would be correct?
e. You can form a partnership that specifies in company agreements how the profit will be shared.
"What are the legal requirements for starting and running this business? And what is the cost?"
ease of startup and admin
A distributor of snack foods configures its staff and warehouse operations to keep cost-per-delivery low as possible.
efficiency
Studies show that approximately 4% of those surveyed between the ages of 16 and 29 in the United States are self-employed. The percentage increases to 11% for those between the ages of 30 and 49; to 15% for those between the ages of 50 and 64; and to 25% for those 65 years of age and older. This is a good example of how small businesses contribute to our economy by providing
employment
A manufacturer of automobiles uses teams of assembly line employees to solve production problems.
empowerment
A large advertising agency is headquartered in New York, but has branch offices in major cities around the world. Those offices work with key accounts in their respective cities, but branches also collaborate with each other when a client wants an international campaign. This agency is known for producing the highest quality creative work in the industry. Whether a campaign is national or international, creating the campaign requires collaboration among art directors, copyrighters, media buyers, and other specialists at the firm. This agency employs only top talent and is a prestigious place to work. When designing their organization structure, what choices will support the goals and culture of this organization? Check the five choices that apply.
f. Managers with narrow span of management h. Matrix structure at branch offices i. Jobs with high degree of variety k. Decentralize decision making to the branch offices l. Organize company by location
You are a labor economist with a major consulting firm. One of your large manufacturing clients has asked for an analysis of employment levels in the U.S. since the recession. The client would like to investigate the notion that U.S. manufacturing employment levels have fully recovered from the last recession, which began in December 2007 and ended in March 2009. Using the economic statistics database of the Federal Reserve Bank of St. Louis, you compiled the following key employment statistics from December 2007 to May 2014: (Note: Amounts stated in 000's) Based on the data in the table above, indicate whether the following statement is true or false. Manufacturing sector employment has fully recovered from the last recession:
false
You developed a new social media service that revolutionizes how individuals interact with one another throughout the day. Within a year, this new business dominates the social media landscape and accumulates 400 million active users worldwide. You have been able to do this all with a dedicated staff of only 25 employees. Because your growth rate is so high, you'd like to avoid venture capital funding for now. You would rather get a loan for expansion and retain all of your company equity for when you go public. Your accountant tells you not to worry, because the Small Business Administration was created to help businesses just like your own. Is this true or false?
false
Your new business needs more startup funding, so you consider taking on a partner. When you ask your friend to be a partner, she suggests that you form a corporation instead of a partnership. She reasons that, "unlike a real person, a corporation only exists on paper, so it cannot be sued. This liability protection is why all the large companies are corporations." Is this statement true or false?
false
You have been given cash flow projections that include the costs for building a new storage facility, but no information on how that will be paid for.
finance
horizontal merger
joins two firms in the same industry and allows them to diversify or expand their products
laissez faire leadership
hands-off approach to leadership. The leader provides a basic vision and the necessary resources for the team, and then mainly acts as an advisor.
vertical merger
joins two firms operating in different stages of related businesses
You were recently transferred to Guatemala to manage a t-shirt factory that sells mainly to the United States. The employees of the facility are paid in quetzals, the Guatemalan currency. On average, each employee earns about 10 quetzals per hour, or the equivalent of $1.40. This equates to an exchange rate of $0.14 per quetzal. You recently read an article that the government of Guatemala is considering devaluating their currency so that a quetzal is only worth approximately $.07. Their rationale is that it will promote exports for their country. Whatever action the government takes, each your employees will continue to be paid 10 quetzals per hour according to your contract. If this occurs, the profitability of your Guatemala factory should
increase
Studies have concluded that in the past decade, the percent of individuals living in poverty in East Asia has dropped from approximately 17% to 3%; in Latin America from approximately 8% to 5%; and in Sub-Saharan Africa from approximately 55% to 40%. The poverty level was defined as those living on $0.75 or less per day. The decrease in poverty most closely relates to the idea that international trade can
increase jobs and income
Internal Customers
individuals and units within the firm that receive services from other individuals or units
Accounting and Bookkeeping Firm
information resources
An Online News Publisher
information resources
Whistleblower
insiders who report illegal or unethical behavior
During your performance review, you are asked about your goals at the company. You mention the desire to become a vice president someday. While it's true that very few employees from your level have ever risen to become a VP, you believe in your ability to overcome the odds and reach that goal.
internal drive
You knew an owner of an auto parts store that got sued for $20,000 because the clerk recommended the wrong part for someone's transmission and it ruined the engine of an expensive car.
legal and financial liability
Employee teams will no longer report to the operations supervisor, but directly to the VP of Operations. Any changes to operations procedures will now be reviewed by her.
less empowerment
The United States increases imports of clothing from low wage countries such as India, Pakistan, and Bangladesh.
lower prices
Furniture and household appliances production
mainly good
Arts, entertainment and recreation related activities
mainly service
Finance and investment related activities
mainly service
Health care and social assistance related
mainly service
Truck transportation and messenger related activities
mainly service
Information is shared readily
matrix
Incomes and education have steadily risen in Germany since the end of World War II. While Germany was traditionally an industrial powerhouse, their location in the middle of Europe allows them to easily import goods and services from surrounding countries. As a result, a meaningful portion of Germany's economy is now dedicated to sectors such as financial management, engineering, and design.
more valuable use of resources
You work at Ford Motor Company and are responsible for determining weekly production capacity for the Juarez, Mexico assembly plant. There are 21 days left in the production month. Your sales manager just informed you that 4,725 vehicles need to be produced in the upcoming 21 days to meet projected sales demand in the United States. Your production capacity constraints are as follows: Each assembly line shift runs for eight hours, and you can run a maximum of three shifts per day. Each shift can produce 75 cars when operating at full capacity. You can run your assembly operations seven days a week, if necessary. A fully staffed assembly line shift requires 100 production workers. Will you have any excess capacity (i.e., unused assembly line capacity) over the next 21 days?
no
You learn that three customers received their blood pressure monitors, but the arm cuffs where missing. As a result, they want to return the monitors.
operations
Your business was organized as a sole propreitorship which has met your needs until now; however you are tired of bearing all of the responsibility yourself. You work with a contractor who could contribute his expertise to the business. You would like him to invest in the business so you could both share responsibilities and profits. This would add his expertise to the business and increase the business capital. What form of ownership would best fit your needs?
partnership
Coca Cola /Soft Drinks: The soft drinks move along a conveyer belt assembly line.
product layout
What is a group of similar products that differ only in relatively minor characteristics?
product line
What is the amount of product that an organization can produce in a given period of time?
production capacity
Gather informational resources
production inputs stage
What is computer-aided manufacturing?
production technology
companies can promote ethical behavior by
providing options for individuals to report ethical violations
A food truck franchise has a data analytics team that reviews social media posts about the company and recommends locations where franchisees should park trucks each day.
responsiveness
You are starting a Christmas decor company and want to choose an ownership structure that will be simple and easy to create. You have the financing to get started and need to get up and running fast to be prepared for the busy winter months. While you hope the business can generate high profits, you still want to keep it a single-person operation that relies primarily on your creativity and design skills. While this type of business is low risk, you still plan to purchase an "umbrella" liability insurance policy to protect your personal assets. Which ownership structure best meets your needs?
sole proprietorship
Your company has recently launched a process reengineering initiative that is designed to transform the company into the most efficient and effective organization in its industry. You have been selected to lead the review of the company's production process to ensure that it is efficient; at the same time, you want to be sure the process is responsive to changes that might be necessary due to customer feedback. You have identified the following major tasks that should be performed in all conversion processes across the company: • Survey customers about their opinions of the company's products. • Plan the necessary production activities to create the products. • Redesign and improve the company's products where necessary based on customer feedback. • Execute the production plan to produce the good or service. Now, you need to organize these major tasks into a sequenced process to ensure that customer product feedback is continually considered in the production process.
task1: survey customers task2: redesign companys products task3: plan production activities task4: execute the production plan
Draft policies and procedures for managing employees
technical
Reviewing financial and other performance measures to ensure that goals will be met.
technical skills
Who will be allowed to make decisions?
third
Risk
the chance an entrepreneur takes of losing time and money on a business that may not prove profitable
Corporate Social Responsibility
the concern businesses have for the welfare of society, not just for their owners. CSR goes well beyond being ethical. It is based on a commitment to integrity, fairness, and respect.
For the following statement, identify the stakeholder that most clearly benefits from the sustainable business practice described. A factory switches from electric power to solar power to operate equipment. Although the new cost of electricity consumed per kilowatt hour increases, the move benefits
the local community
merger
the result of two firms joining to form one company
Economics
the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals
Organizational Culture
the widely shared values within an organization that foster unity and cooperation to achieve common goals. Usually the culture of an organization is reflected in its stories, traditions, and myths.
conglomerate merger
unites firms in completely unrelated industries in order to diversify business operations and investments
Flat organization
with fewer layers of management and a broad span of control (many people report to each manager), Flat structures can respond readily to customer demands because lower-level employees have authority and responsibility for making decisions, and managers can be spared some day-to-day tasks.