Business Management 2

The equipment, ingredients, and employee labor at a restaurant are all a. inputs. c. productivity. b. objectives. d. mass production.

a Inputs. All the resources used in producing goods and services are known as inputs. Objectives are goals to be reached. Productivity is the amount and value of goods and services produced from set amounts of resources. Mass production is the production of a few products in large quantities.

Gross domestic product per capita is a measure of a. everything a country produces within its borders. b. everything a country imports from foreign countries. c. everything a country exports. d. the average worker's productivity.

d The average worker's productivity. Gross domestic product per capita is a measure of the average productivity of individual workers. It is calculated by dividing the gross domestic product by the worker hours required to produce it. A nation's exports and imports are used to calculate just one component of gross domestic product—net exports of goods and services. Gross domestic product is a measure of everything a country produces within its borders in a year.

How does increased business productivity benefit consumers? a. More goods and services become available, so prices go down. b. More goods and services become available, so prices go up. c. Costs of labor and prices increase, so inflation goes up. d. The gross domestic product goes down, so inflation goes up.

a More goods and services become available, so prices go down. Increased business productivity can create a greater variety of goods and services, and as more products become available, prices are likely to drop. Increased business productivity reduces inflation and increases the gross domestic product per capita.

Research and development speed up production by a. simplifying existing products. b. providing employees with adequate job training. c. limiting inflation. d. reviewing company goals with employees.

a Simplifying existing products. Researchers can speed up production by simplifying existing products, developing new products, and determining better processes. Management should provide employees with adequate job training. Overall, national productivity can limit inflation. Communication between management and labor involves reviewing company goals with employees.

A positive effect that productivity has on a business is helping it a. determine the health of the nation's economy. b. increase sales and profits. c. increase the standard of living. d. stop inflation.

b Increase sales and profits. A positive effect that productivity has on a business is helping it increase sales and profits. Productivity allows a business to produce more from set resources. Greater outputs may result in lower prices, which in turn may result in higher sales and profits. Productivity can be used to measure the strength of the nation's economy, but this is not a benefit that is specifically related to businesses. Productivity can affect society by increasing the standard of living. Productivity can limit, but not stop, inflation.

What is a method that managers can use to motivate employees? a. Encouraging employees to specialize b. Offering performance-based financial rewards c. Investing in new technology d. Sharing customer information with employees

b Offering performance-based financial rewards. Methods for motivating employees include offering financial rewards, treating employees with respect, and praising them for excellence. Encouraging employees to specialize is not a form of motivation. Investing in new technology is capital investment. Sharing customer information with employees is a form of communication.

Even though Brad isn't a manager, his boss encourages him to give his input on issues affecting the company. Brad's boss is using a. motivation. c. specialization. b. participative decision-making. d. quality of work life.

b Participative decision-making. When businesses encourage employees to give input, share suggestions, and take part in decision-making, participative decision-making occurs. Motivation involves giving employees rewards and incentives for being productive. Specialization is the process of making the best use of resources in the production of outputs. Quality of work life is the general conditions in which employees work.

A company produces only one type of shoe, since this is the product it is best able to produce with its resources. This is an example of a. specialization. c. productivity. b. division of labor. d. competitive advantage.

a Specialization. Making the best use of resources in the production of goods and services is known as specialization. Division of labor involves dividing a large job into smaller job tasks that are assigned to different workers. Productivity is the amount and value of goods and services produced from set amounts of resources. Competitive advantage is the edge achieved by businesses that offer something better than the competition.

Why should productivity be measured? a. To see whether the business's objectives are being met b. To locate new sources of inputs c. To determine the best ways to invest company profits d. To find new ways to meet customer needs

a To see whether the business's objectives are being met. Productivity may be measured to see whether a business's goals and objectives are being reached. Productivity doesn't aid in the location of new sources of inputs. Members of the finance department are responsible for determining the best ways to invest company profits. Research and development may find new ways to meet customer needs.

Lack of standardization occurs when a. employees don't understand how to use a machine or tool. b. tasks and processes are done differently every time. c. products are complex and difficult to assemble. d. team members do not get along with each other.

b Tasks and processes are done differently every time. To achieve standardization, work must be organized so that it is always done in the same way. When employees don't understand how to use a machine or tool, there is a lack of worker knowledge and education. Poor product design can result in products that are complex and difficult to assemble. Personality conflicts arise when team members do not get along with each other.

A factory that mass produces clothing increases productivity because it reduces a. employee wages. c. research and development costs. b. wasted resources. d. levels of management.

b Wasted resources. Mass production increases productivity because it reduces wasted resources, including time and energy. Mass production does not affect employee wages, research and development costs, or levels of management.

To reduce the chance of investigations and orders to cease production, businesses should a. purchase the most up-to-date technology available. b. specialize. c. adhere to government regulations. d.lobby members of Congress.

c Adhere to government regulations. Businesses can reduce the chance of investigations and orders to cease production by obeying laws. Purchasing up-to-date technology is a form of capital investment used to improve productivity. Specializing means making the best use of resources in the production of goods and services. Lobbying members of Congress may result in legislation favorable to a business, but it won't necessarily reduce the chance of investigations.

Sharing business goals and objectives with workers is a method of increasing productivity through a. motivation. c. communication. b. mass production. d. specialization.

c Communication. Managers should communicate business goals and customer information with employees to increase productivity. Motivation involves giving employees rewards and incentives for being productive. Mass production is the rapid production of large quantities of a few products. Specialization is the process of making the best use of resources in the production of outputs.

One way that the productivity of a business can be measured is by a. determining the amount of time needed to gather all necessary inputs. b. calculating the total monetary costs of all inputs used. c. dividing the dollar value of total sales by the costs of making those sales. d. dividing the number of products made by the cost of distributing those items.

c Dividing the dollar value of total sales by the costs of making those sales. The productivity of a business can be measured by dividing the dollar value of total sales by the costs of making those sales. The amount of time needed to gather all necessary inputs is not a measure of productivity. The total monetary cost of all inputs used is not sufficient information to measure productivity—the dollar value of total sales is also needed. Dividing the number of products sold by the cost of distributing those items does not take into consideration other costs involved in producing the items.

The amount and value of outputs produced from set amounts of resources are known as a. inputs. c. productivity. b. objectives. d. mass production.

c Productivity. Productivity is the amount and value of goods and services produced from set amounts of resources. Inputs are all the resources used in producing goods and services. Objectives are goals to be reached. Mass production is the production of a few products in large quantities.

Why is the productivity of service businesses measured differently than that of manufacturing businesses? a. Service businesses are less efficient than manufacturers. b. Manufacturers measure their productivity on a regular basis. c. Service businesses are concerned about the appropriateness of their products. d. Manufacturers produce intangible goods.

c Service businesses are concerned about the appropriateness of their products. To mea-sure the productivity of a service business, the quantity, quality, appropriateness, and timeliness of the service must be considered. Service businesses can be as efficient as manufacturers. Both service businesses and manufacturers may measure their productivity on a regular basis. Manufacturers produce tangible goods, while service businesses produce intangible outputs.

Janine works for a gift-wrapping service. During a typical eight-hour work day, Janine wraps 52 gifts. What is her productivity rate? a. 17.3 gifts per hour c. 7.0 gifts per hour b. 2.2 gifts per hour d. 6.5 gifts per hour

d 6.5 gifts per hour. Janine's productivity rate is 52 gifts divided by eight hours, which equals 6.5 gifts per hour.

Which of the following is an example of using capital investment to increase productivity: a. Renegotiating a supplier's contract b. Making suggestions to improve the organization c. Giving performance-based bonuses d.Purchasing new computers

d Purchasing new computers. Capital investment occurs when a business uses a portion of its profits to purchase updated equipment or technology to improve productivity. Renegotiating a supplier's contract might save the company money, but it won't necessarily increase productivity. Allowing employees to make suggestions to improve the organization is part of participative decision-making. Giving performance-based bonuses is a method of motivating employees.

Fair salaries and wages, competitive benefits, and safe and healthful working conditions are all important in creating a good a. standard of living. c. division of labor. b. competitive advantage. d. quality of work life.

d Quality of work life. The general conditions in which employees work, including fair salaries and wages, competitive benefits, and safe and healthful working conditions, are all part of the quality of work life. Standard of living is the general conditions in which people live, not where they work, specifically. Competitive advantage is the edge achieved by businesses that offer something better than their competitors. Division of labor involves breaking a large job into smaller tasks that are assigned to different people.

Why are better trained and educated workers often more productive? a. They are more likely to become managers. b. They are less likely to take vacation and sick days. c. They tend to have a higher gross domestic product per capita. d. They tend to be more organized and able to manage their time wisely.

d They tend to be more organized and able to manage their time wisely. Better trained and educated workers are often more productive and efficient because they are more organized, better able to manage their time, more willing to adapt, and more creative. Being more likely to become a manager doesn't cause a person to be more productive. Nearly all employees take vacation and sick days at some point. Gross domestic product per capita is the average productivity of individual workers within an entire nation. It is not the mea-sure of one specific person's productivity.