Unit 2 Test: Chapters 5-8

Which of the four functions of management involves establishing performance standards, monitoring actual performance, comparing actual performance with established standards, and making corrections if necessary? a. Organizing b. Directing c. Controlling d. Planning

C. Controlling

Who are most likely to make decisions regarding the purchase of other companies? a. General managers b. First-line managers c. Supervisors d. Top managers

D. Top Managers

A(n) _____ systematically evaluates a company's strengths, weaknesses, opportunities, and threats.

SWOT analysis

Kate is a full-time nurse and would like to start and end work late to better accommodate her children's school hours. Which of the following would be ideal for her situation? a. Flextime b. Job sharing program c. Telecommuting agreement d. Compressed workweek

a. Flextime

Which of the following statements regarding franchising is FALSE? a. Franchises are riskier than other forms of business ownership b. Franchisees have the benefit of name recognition c. Franchisors provide a wide range of support to franchisees d. Benefits for the franchisor include opportunities for expansion that might not otherwise be available

a. Franchises are riskier than other forms of business ownership

Assume that a tech firm decides to invest some of its excess cash by acquiring a coffeehouse chain. This would be a _____. a. conglomerate company b. vertical merger c. horizontal merger d. joint venture

a. conglomerate company

The Fair Labor Standards Act _____. a. established the federal minimum wage b. outlawed union shops c. outlawed secondary boycotts d. legalized collective bargaining in the Unites States

a. established the federal minimum wage

Corporations have all of the following advantages EXCEPT _____. a. favorable tax treatment b. limited liability c. expanded financial capacity d. limited legal risk

a. favorable tax treatment

An entrepreneur: a. is a risk taker in the private enterprise system. b. does not tolerate ambiguity. c. is a gambler in the private enterprise system. d. does not tolerate failures

a. is a risk taker in the private enterprise system.

Employees are most likely to learn about company policies regarding their rights and benefits during _____. a. orientation b. performance appraisal c. evaluation d. feedback session

a. orientation

After starting a web design company while still in college, Ricardo sold the company after graduation. He then opened a computer repair shop; and most recently, he has started a marketing firm that specializes in social media. Ricardo is an example of a(n): a. serial entrepreneur. b. social entrepreneur. c. lifestyle entrepreneur. d. classic entrepreneur.

a. serial entrepreneur.

Sole proprietorships have all of the following advantages EXCEPT _____. a. unlimited life b. ease of formation c. profits subject only to a single tax d. ease of liquidation

a. unlimited life

A business begins with a _____, which serves as the target for a firm's actions, helping direct the company toward opportunities and differentiating it from its competitors. a. vision b. symbol c. ritual d. story

a. vision

A(n) ___________ occurs when one firm purchases the property and assumes the obligations of another firm.

acquisition

A(n) _____ is an individual who invests money directly in new ventures in exchange for equity.

angel investor

When disputes cannot be solved voluntarily through mediation, parties can use _____ by bringing in an impartial outside party who renders a legally binding decision.

arbitration

People who make decisions on their own without consulting their subordinates are _____.

autocratic leaders

_____ skills are interpersonal skills that enable managers to work effectively with and through people. a. Visionary b. Human c. Conceptual d. Technical

b. Human

Which of the following instances best represents a skunkworks project? a. Fathima obtains funding from a venture capitalist to start her new venture. b. Laila obtains funding from the company she works for to turn her idea into a commercial project. c. Frank obtains funding from an angel investor who also helps him with launching his business. d. Janet obtains funding through bank loans and finance companies that she must repay.

b. Laila obtains funding from the company she works for to turn her idea into a commercial project.

Aisha wants to start a business. She takes a personality test and discovers she possesses a trait that may reduce the likelihood of her success. Which of the following is that trait? a. Creativity b. Low tolerance for ambiguity c. Vision d. Internal locus of control

b. Low tolerance for ambiguity

Which of the following is an advantage of a home-based business? a. Greater visibility to customers b. Lower costs c. Less flexibility d. Isolation

b. Lower costs

Three members of Abdul's family work at BioTechno, a multi-national drug manufacturer. Each of them owns 5% shares of the company respectively. In fact, most of the employees of BioTechno, like Abdul and his family members, are stockholders of the company. BioTechno can be regarded as a _____. a. sole proprietorship b. employee-owned corporation c. family-owned business d. partnership

b. employee-owned corporation

Dimitri is scheduled for a 360-degree performance review at Finnacle Corp. The advantage of this type of review is that: a. it involves less work for employees and managers. b. it gathers feedback from multiple perspectives. c. it results in outcomes untainted by personal disputes. d. it is less time consuming than a traditional review.

b. it gathers feedback from multiple perspectives.

Daily and weekly plans, rules, and procedures for each department are examples of _____ planning. a. tactical b. operational c. strategic d. contingency

b. operational

A key premise of Maslow's hierarchy of needs theory is that _____. a. people's needs are based on their wants b. people's needs are arranged in a hierarchy of importance c. higher order needs have to be satisfied first. d. satisfied needs are motivators and unsatisfied needs are not motivators.

b. people's needs are arranged in a hierarchy of importance

Daniel is working on a project where he needs to anticipate future events and conditions, as well as avoid costly mistakes. Daniel is engaged in the _____ managerial function. a. controlling b. planning c. organizing d. directing

b. planning

_____ are specific geographic areas designated for economic revitalization. a. Economic stimulus zones b. Commerce areas c. Enterprise zones d. Investor zones

c. Enterprise zones

Which of the following is one of the most important considerations in selecting a business idea? a. Making sure no company is currently offering the product/service b. Ensuring that the idea solely appeals to a niche market c. Finding something one loves to do and is good at doing d. Choosing a product/service that is inexpensive to sell

c. Finding something one loves to do and is good at doing

All of the following are major advantages of buying an existing business over starting a new business EXCEPT: a. existing suppliers and employees are in place. b. less risk is involved. c. product or service is not known in the marketplace. d. obtaining financing is often easier.

c. product or service is not known in the marketplace.

The desire to be accepted by family, friends, and co-workers is what Maslow called _____ needs. a. physiological b. esteem c. social d. self-actualization

c. social

Janet is a manager who spends most of her time in day-to-day decisions assigning nonmanagerial employees to specific jobs. Janet is considered a _____ manager. a. top b. technical c. supervisory d. mid-level

c. supervisory

Conceptual skills are especially important for _____, who must develop long-range plans for the future direction of their organizations. a. first-line managers b. middle managers c. top-level managers d. supervisory managers

c. top-level managers

The process of negotiation between management and union representatives is called _____.

collective bargaining

Businesses with ________ respresent over half of the nation's GDP. a. more than 5,000 employees b. 1,000 to 3,000 employees c. 3,000 to 5,000 employees d. 500 or fewer employees

d. 500 or fewer employees

Which of the following is the first step in the employee recruitment process? a. Reviewing applications and résumés b. Interviewing candidates c. Conducting employment tests d. Identifying job requirements

d. Identifying job requirements

____ focus on solving society's challenges through their businesses. Select one: a. Classic entrepreneurs b. Change agents c. Atypical entrepreneurs d. Social entrepreneurs

d. Social entrepreneurs

A logistics company began moving trucks and supplies into position nearly a week before a hurricane hit the city, as specified in the company's _____ plan. Select one: a. tactical b. strategic c. operational d. contingency

d. contingency

Farid is the owner of a small mushroom farm in Pennsylvania. He would like to join hands with other growers to create an organization that will promote and distribute mushrooms. The form of ownership that would be most suited for Farid and other growers will be a(n) _____. a. joint venture b. open corporation c. government-owned collective d. cooperative

d. cooperative

All of the following are important characteristics of entrepreneurs EXCEPT: a. tolerance for failure. b. internal locus of control. c. creativity. d. dependence on others.

d. dependence on others.

Jane is the head chef in a restaurant and has decided to increase the number of tasks performed by the kitchen staff. The added tasks do not result in increased challenge or authority. Jane's efforts are called job _____. a. sharing b. enrichment c. management d. enlargement

d. enlargement

An advertising agency creates departments for creative personnel, media buyers, and account executives. This is an example of _____ departmentalization. a. process b. geographical c. product d. functional

d. functional

Valerie manages the finance department at her company, and she discovers that one of her employees is performing poorly and letting coworkers pick up the slack. Valerie knows that resentment is building, so after an initial write-up, she proceeds with a(n) _____ of the employee. a. downsizing b. voluntary turnover c. outsourcing d. involuntary turnover

d. involuntary turnover

Robert's company contracted with a third-party external to provide technical and computer support. This is an example of _____. a. restructuring the whole organization b. downsizing c. employee empowerment d. outsourcing

d. outsourcing

Stefan wants to start a new business, but his bank will not lend him the money he needs. Stefan saw an advertisement sponsored by a business organization that provides financing for early-stage, high-potential growth companies. The organization sponsoring the advertisement would be considered a _____. a. franchisor b. franchisee c. mortgage lender d. venture capitalist

d. venture capitalist

During a(n) _____, two or more firms combine to form one company

merger

A(n) _____ is a written explanation of an organization's business intentions and aims.

mission statement

A(n) _____ involves a complex and unique problem or opportunity with important consequences for an organization.

nonprogrammed decision

A(n) _____ is a business organization or group of private individuals who invest early-stage, high-potential growth companies.

venture capitalist