Management midterm: Emersyn

when two firms which do not participate in the same industries, for example, a software company and a fast food restaurant company, decide to merge, the result is called a _______ merger?

Conglomerate

what is an advantage of hiring contingent workers

It is good strategy if the economic climate is uncertain.

which statement about recruiting is most accurate

It is important for a firm to recruit and hire people who are not only skilled but also fit in with the firm's culture and leadership style.

a(n) ________ analysis is used to help companies evaluate their internal strengths and weaknesses, and develop an awareness of external threats and opportunities

SWOT

what is an advantage of a partnership?

Shared management and pooled skills

What is the best example of a business whose goal is to earn a profit?

amazon

the difference between a merger and an acquisition is

a merger is the joining of resources of two companies which now become one company, where an acquisition is a buyout of one firm by the other

what is a challenge facing human resource managers of today

a shift in employees attitudes towards work

which statement accurately depicts an advantage that small businesses has over big businesses?

a small business can maneuver and change quicker than most large businesses can. it can react to market conditions and customer concerns

when the market price of a good is above the equilibrium price, and all other determinants are unchanged,

a surplus will exist in the market

which individual would tend to favor a socialist economy?

amber prefers to live in a country that promotes social equality

A common characteristic of most entrepreneurs is that they?

accept the risk involved in starting and managing a business

what should form the foundation of a firms control system

accounting and finance

what strategy is used by human resource manager to fill an open position from within the company

advertise the opportunity for a promotion to current employees

which individual would tend to favor a communist economy?

amara prefers to live in a country where the government makes almost all the economic decisions

An evaluation of franchising would conclude that this type of arrangement:

appeals to people who want to own a business, but are not comfortable starting a family from scratch

which statement provides the most accurate comparison of socialism and communism?

both socialism and communism strive to achieve a more equal distribution of income and wealth, but under communism, the government taxes greater control

a basic difference between goals and objectives is that goals are

concerned with broad, long-term accomplishments, while objectives focus on specific short-term details

a ____ is a written document that details the business idea, the target market and the business competitive advantage, financial resources available for the business and the quailfiction of the management.

business plan

a benefit of a free market can be that

businesses provide customers with quality products at fair prices

For a prospective entrepreneurs, enrolling in an introduction to business or a small business management course offered through their community college

can be helpful by offering them an opportunity to meet experienced small business owners

what is an example of an external recruitment source

college placement offices

which statement about the competitive environment is most accurate?

companies now have to offer both high quality-products and outstanding service at competitive prices

when corruption is present in the business environment, what often occurs?

company leaders threaten competitors and minimize competition

In order to make an intelligent investment decision, entrepreneurs should?

compare the risks of the potential investments to their expected profits and find the right balance between profit and risk

war and terrorism in many parts of the world often lend too?

consumer and economic hardship due to increased military spending

When managers determine that an organization is not making sufficient progress toward achieving its goals and objectives and they develop corrective measures, they are involved in:

controlling

a separation between ownership and management is most likely to occur in a

corporation

____________ comprise about 20% of all businesses but account for about 81% of U.S. business receipts.

corporations

double taxation means

corporations pay taxes on their profits. If they distribute after-tax profits to the stockholders, the stockholders also pay taxes on the distribution.

Entrepreneurs seeking financial support from bankers and potential investors should

create a detailed business plan to help the bankers and the investors understand why this business will succeed

in order to compete well and gain market share, contemporary business are changing to be more

customer-driven

Franchised businesses are successful (both domestically and internationally) because:

customers like the predictability of the product and/or service

which statement reflects a clear performance standard

decrease the number of products rejected due to manufraturing defects by 10% over the next 6 months

a good business plan will

describe all aspects of the business, including product, the target market, the nature of the competition, any financial resources, and the owner's qualifications.

because economic and competitive environments frequently change, organizations should

develop contingency plans

in a company in which an effective vision has been provided

employees are likely to have a sense of purpose and a common set of values

a characteristic of a compressed worksheet is that

employees work fewer days each week, but work more hours each workday

entrepreneurs weigh the differences in between the benefits of starting a business and those things that are likely to forego because they choose to work for themselves. Such things they are likely to pass up on are?

employer paid benefits-such as paid vacations and health insurance

which statement about factor and production is the most accurate?

entrepreneurship and knowledge are the most important in creating wealth

contemporary governments promote business development by?

establishing a currency that is traceable in world markets

Job rotation helps lower-level managers prepare for higher-level positions by:

exposing them to different functions within the organization, thus giving them the broad perspective needed by top managers

a firm would implement a policy of holding exit interviews if it wanted to

find out why good employees were quitting

manufacturing firms in the United States have consistently been laying off workers. the best explanation of this thread is?

firms in many industries have became so efficient that they need fewer workers

Communist values are disappearing because

food and other product shortages overwhelm citizens since the government must guess what citizens need.

which statement most accurately identifies a limitation of the free market economic system?

free market economies tend to result in unequal distribution of wealth

a(n) _______ leader would set objectives and give employees a great deal of freedom to decide for themselves how to accomplish those objectives

free-rein

the purpose of a farm cooperative is to

give individuals more economic power as a group then they would have as individuals

which activity is part of the organizing function of management

giving front-line workers additional resources needed to provide faster and better service to customers

enterprise zones are investor visas are examples of

government programs that encourage economic growth through entrepreneurship

There are innovations involving new ways to produce and conserve energy. If we can turn this new technology into marketable products and services that produce energy to run our businesses and homes, the U.S. could see a surge in output of goods and services. What would be measured to document this surge?

gross domestic product

Compared to partnerships and sole proprietorships, a major advantage of the C (conventional) corporation as a form of business ownership is that it:

has the ability to raise more money

one difference between partnerships and sole proprietorships is that partnerships

have a greater chance of long term survival due to accountability of each partner

which statement about home-based work is most accurate

home-based work allows workers to choose their own hours and interrupt work for childcare and other tasks, but this freedom and flexiablity can create problems for some workers

When a firm makes use of SWOT analysis, one of its objectives is to:

identify the things it does well as an organization and the things it needs to improve

which statement explains how people working in their own self interest produce goods, services, and wealth for others?

in order to earn money and produce goods that improves lives, self-directed gain ultimately provide jobs, and subsequently wages for others.

the main goal of resource development is to find ways to

increase the amount of resources and create conditions that will make better use of those resources

what is an important premise of Adam smith conclusions about economic prosperity?

individual freedom is necessary a society is to prosper

Adam smith believed that countries would prosper if businesspeople were free to start and run their own businesses. Business people would make a profit by providing the goods, services and ideas that others in the economy wanted, and they would hire others to help increase those profits, leading to social and economic benefits. This idea was called the?

invisible hand

a major purpose of employee orientation program is to

invite new employees to the organization, their fellow employees and their immediate supervisors

a distinguishing feature of a cooperative is that it

is owned and operated by the people who use it

one of the reasons many firms have chosen to use temporary employees rather than rehire full-time employees is that

it enables them to avoid the high costs associated with terminating employees

what statement is accurate about the threat of terriorism and business?

it is costly to most firms because of increased costs for security, equipment and insurance

one of the challenges of running a home-based business is?

keeping work and family tasks separated

One way to eliminate some of the risk of your partners making costly mistakes that could jeopardize your personal assets is to set-up a:

limited liability partnership

the information contained in performance appraisal help managers

make decisions about promotions, compsentation, training and firing

one difference between managers and leaders is that

managers work to achieve stability while leaders embrace change

small business owners often struggle in attracting qualified workers. what contributes to this problem

many jobs in small firms have low pay and few benefits

According to SBA guidelines, a manufacturing firm with 1,000 employees:

may be classified as a small business depending upon the size of others in the same industry

general and divisional managers, plant managers, and deans and departments heads at Colleges are classified as

middle management

what policies would tend to foster entrepurnerships?

minimize taxes and regulations

There's a large number of bakeries in the United States and each of these bakeries produces similar, but not identical, products. Some bakeries will claim to have the best cupcakes in town, while others will brag about other items like cookies or specialty breads. The bakery market is an example of

monopolistic competition

Just a few sellers dominate the markets for laundry detergents, soft drinks, and automobiles. Economists would classify these markets as

oligopolies

Compared to the C-corporation, the limited liability company is an attractive form of business ownership because:

once formed, the limited liability company has fewer requirements, and has the option to avoid double taxation

Managers who listen to their subordinates and allow them to participate in decision-making are using the ____________ style of leadership.

participative

one of the most significant problems faced by communist nations is

persistence shortages of basic goods such as food and clothing

When managers identify a market trend that suggests a new opportunity and then devise a strategy to go after this new opportunity, they are involved in the function of:

planning

Two key management functions that need particular attention when starting a business are

planning and financing

what is an advantage of utilizing technology in business?

productivity increases

which statement about democracy is most accurate? Demographic studies:

provide businesses and individuals with insights into business and career opportunities for the future

the most likely reason a firm would pay its sales representatives a comminsion rather than a salary is that it wants to

provide sales representatives with a strong incentive to generate more sales for the company

when establishing criteria to measure the success of a customer-orientated business, managers should

recognize that while financial measures are important and should be considered, the purpose of the firm is to satisfy both internal and external customers

the most popular types of businesses for Franchising are gas stations with convenience stores and

restaurants

a ____ is a share of profits or percentage of sales a Franchisee pays to Franchisor

royalty

the immigrant population(both legal and illegal)is having the most dramatic effect on?

schools, hospitals and other services industries

entrepreneurs learn that there are many legal and financial issues involved in starting their business. the best way for the small business owner to resolve these issues and protect the firms resources is to?

seek and pay for expert guidance and assistance

The standard for living for a nations people depend on

their income and prices of the goods and services they can buy

appliance repair firms, tax consultants, law firms and insurance companies are all business firms that are part of the _______ sector.

service

Recently, many small businesses have found that __________ were more willing to lend money to smaller operations.

smaller community banks

an entrepreneur who wishes to start a business with little delay or hassle, and wants to be his or her own boss, should organize the business as a

sole proprietorship

the _____ is the most common form of business ownership

sole proprietorship

one of the greatest concerns associated with capitalism is that

some people may let greed guide their behavior

Historically entrepreneurs in the U.S.

started many small firms that later became major corporations employing thousands of workers.

one of the most important responsibilities for professionals in the HR field is

staying current with employment related legislation

_____ planning determines the major goals of an organization and lays the foundation of obtaining and using resources to achieve those goals

strategic

which statement about networking is the most accurate

students can begin building network connections in college even before they take on their first full-time job

the type of planning that is concerned with developing detailed short-term actions about what is to be done, who is to do it, and how it is to be done is known as _________ planning

tactical

As part of the HR planning process, the manager begins by assessing the current labor situation at his/her company. Essentially, this means:

taking an inventory of current employees and their capabilities

supervisory mangers spend most of their times

technical and human relation skills

increased participation in small business exporting owes credit to

technological advantages such as the internet and PayPal for safely fulfilling orders

Which U.S. issue does entrepreneurship most directly affect?

the ability to create job offers for others

which statement about performance appraisals is the most accurate

the decisions of the results of the performance evalution with an employee should allow the employee an opportunity to make suggestions about how to improve on current procedures

which statement about the federal reserve bank(the fed)is most accurate?

the fed manages the U.S. money supply and interest rates

a human resource inventory is designed to reveal whether

the firms labor force is technically up-to-date and well trained

which statement about government deficit spending is most accurate?

the government has a hard time reducing deficits because there is a great deal of need for new social programs each year

if you were to discuss and analyze the social changes affecting the future of businesses, which statement should be apart of that conversation?

the increase in older citizens may impact an employees take home pay if programs such as Social Security needed to be funded at a higher level. Skilled employees may require higher wages to make up the short fall.

autoractic leadership is likely to be effective when

the organization faces an emergency situation

when the market price of a good is below the equilibrium price, and all other determinants are unchanged,

the quantity demand will be greater than the quantity supplied

what is an essential element of a job description

the responsibilities and working conditions

Any debts or damages incurred by a firm organized as a sole proprietorship are:

the responsibility of the owner

what best describes why individuals accept the risks of business ownership?

the sense of creativity and independence

are you reading the online edition of your local newspaper, you quickly scan a report in the business section that says government spending will again exceed tax revenues in the current year. what does this mean for the economy?

the total national debt is likely to increase

One way to get into business is to buy an existing company. The value of the business used to determine a fair purchase price is based on:

the value of what the business owns, what makes it unique, and what it earns.

small businesses are important to the U.S. economy because

they create about 65% of new jobs each year and generate over 40% of the U.S. GDP

what statement is accurate about small business employees

they often find more job satisfaction than their counterparts in big business

which activity would be a part of the leading function of management

training and coaching workers to help them understand their job and preform it efficiently

which statement describes the relationship between employee training and employee development

training is short termed skills orientated while development is long-term career orientated

a firm or individual providing financial capital to small businesses in exchange of an ownership stake in the company is called a

venture capitalist

a merger involving a commercial bakery and a grocery retailer would be an example of a ________ merger?

vertical

when we compare the factors of production in wealthy verses poor nations, we find?

wealthy nations have knowledge and entrepreneurial opportunities, while poor nations are often lacking in this area