It is difficult to define small bussiness because smallness is relative True
Relatively low start up costs is an advantage of a small business True
The entrepreneurship movement is declining because of technological advances False
Franchisees pay the franchiser a monthly or annual fee based on the percentage of sales and profits True
BLANK has helped small businesses compete with larger businesses Technology
Your textbook uses the term small business to refer to an owner managed business that employs not more than 500 people
Which of the following is an advantage of a small business Greater Flexibility of change
Which of the following fields are most attractive to small businesses? Retailing and wholesaling, services, manufacturing, and high technology.
In the context of starting a new business, a retailer differs from a manufacturer in that the retailer is less likely to make a heavy investment in equipment and distribution systems
The BLANK sector accounts for the majority of jobs in the US service
One of the major reasons people want to own and operate their own business is to Be their own boss
A small businesses ability to focus on narrow niches can help it develop Enviable reputations for quality and services
Which of the following is an advantage of a small business ownership Lower cost of formation
Which of the following isnt an advantage of a small business ownership Low failure rate
One advantage that small businesses have other large businesses is that they are better able to focus on a few key customers
When market conditions change rapidly, a small business usually has fewer layers of management to work through in making decisions. this advantage of a small business is flexibility
The lack of funds to operate a business normally is called undercapitalization
Many financial institutions decide whether to loan a small business money based on its business plan
Which of the followng is not a source of equity financing
A mortgage is an example of Debt financing
A license to sell anothers product or to use anothers name in business franchises
persons of organizations that agree to provide some funds for a business in exchange for ownership, interest or stock are called venture capitalists
which industries will likely to continue to grow as baby boomer age Travel, financial plans, and health care
individuals who champion the development of innovations of any kind within lager organizations are called intrapeneur
managers can run a business with only human and physical resources False
The decision to introduce new products in order to reach objectives is often key management duty True
Planning involves forecasting events and determining the best course of action from a set of options or choices True
Staffing is the structure of resources and activities to accomplish goals in a effective and efficient manner False
an important part of good directing is administering awards and recognition true
Middle managers are responsible for tactical planning True
All managers perform all five management functions but not to the same degree true
although managers may not actually perform specific jobs in organizations they need technical expertise required to perform jobs related to their area of management in order to train employees and answer questions True
In the analyzing options stage managers should consider the practicality and appropriateness of each option true
when making a decision; selecting the best option is often an objective procedure false
if a manager is concerned about doing the work with the least cost and wast then her primary managerial concern is efficiency
when providing benefits, a manager is most closely involved with which of the following resources? Human
Organizations must have adequate supplies of all types of BLANK and coordinate their use carefully to achieve their objective Resources
Crisis management plans generally cover maintaining business operations during a crisis and BLANK communicating with others about the situation
dividing work into small units and assigning it to individuals are tasks related to organizing
Maria and Harold just finished interviewing four candidates who want to work for Jackson Office Inc. They are involved in which of the following management functions? Staffing
A person in charge of designing product facilities, purchasing supplies, and ensuring that products meet quality standards is probably a ________. Production and operation manager
The development of a performance-appraisal system is primarily the concern of _______. Human Resources management
Which of the following is best used when employees know the organization standards and are highly motivated to attain them? Free-rein
Having good human relation skills means: Work with others
A(n) ________ leadership style is the best for stimulating unskilled or unmotivated employees. Autocratic
Effective implementation of a major decision requires __________. Planning
Selecting the best option in the decision-making process is ________. Often Subjective
When analyzing options in the decision-making process, managers must consider the appropriateness and _______ of each option. Practicality
Organizational structures are always explicitly defined. False
An organizations structure develops of managers assign tasks to work groups and specific individuals and coordinate diverse activities required to attain organizational objectives. True
The more complex organizations become, the more they need to develop formal structures to efficiently. True
An advantage of functional departmentalization is that managers need only skills that apply to their position. True
In decentralized organizations, lower level mangers have a good understanding of their external environment and need to react quickly to it. True
A company with many layers is considered tall. True
Matrix structure are often complex and expensive and can lead to confusion regularly who has the ultimate authority. True
All groups are team but not all teams are groups. False
Horizontal communication involves the traditional flow of information from upper organizational levels downward. False
Communication flows within an organization are always formal. False
Organizational structure is defined as: The arrangement or relationship of positions within an organization
When managers assign work activities to groups and: structure individuals and coordinate the diverse activities required to attain organizational objectives.
Organizational cultures that lack positive values may result in: unproductive and indifferent employees
The benefits of division of labor were described in The Wealth of Nations by: Adam Smith
Adam Smith illustrated improvements in efficiency through the application Specialization
Many experts believe people can perform most efficiently if they master one task rather than all tasks. A famous book that supports this point is: The Wealth of Nations
A company that has departments for marketing, finance, personnel, and production is organized by: Function
Joe is a copywriter in his company’s marketing department. The copy for an ad was misspelled and placed in Times Magazine. Who would be to blame? The marketing vice president
When the decisions of a company are very risky and low-level managers lack decision-making skills the company will tend to: Centralize
One of the things to consider when determining the appropriate span of management is: physical distances between subordinate supervisor and subordinate competence
An advantage of line structure in organizations is: A clear chain of command
Which of the following organizations form is most likely to be complex and expensive? Matrix Structure
Teams: share leadership and create collective work products
Downward communication conveys: explanations of decisions and orders
Upward communication conveys: progress reports and complaints
The transformation process occurs online in companies that manufacture tangible goods. False
Outputs include labor, materials, energy and money. False
The transformation process is at the heart of the operations management. True
In non-profit organizations like Habit for Humanity, inputs such as money, materials, information and volunteer time and labor are used to transfer raw materials into homes. True
Service providers are generally less labor intensive because of the high degree of customization. False
Consumer needs and wants often dictate a production process. True
Taxes are an important consideration when deciding where to locate a production facility. True
Managing finished products and packaging them are activities most closely associated with marketing. False
The majority of companies purchase all materials needed to make their finished products. False
Service businesses cannot incorporate quality services. False
An employee is associated with producing goods, services, and ideas that satisfy needs of customers. She works most closely with: Operation
The transformation process is: The conversion of human….
For most organizations the ultimate objective is for produced outputs to be Worth more than the costs of the inputs
The nature of the service providers product requires: High degree of customer contact
Actual performance of the service providers product typically occurs: At the point of consumption
Compared to service providers, manufacturers generally: Are more capital-intensive
A company that manufactures large products such as houses or bridges, or malls require all resources to be brought to a central location during production: Fixed-position layout
A metal fabrication plant with a cutting department and drilling department is: Process layout
All activities involve in obtaining and managing raw materials, component parts, managing finished products, packaging them and getting them to the customer are part of: Supply chain management
Materials that have been purchased to be used in making other products are included in: Raw material inventory
A model that identifies the optimum number of items to minimize the costs of managing them is called: The economic order quantity model
Minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is: Just In Time model
When managing quality in manufacturing when is sampling likely to be used? When inspection tests are destructive.
Quality: is a critical element of operations management
______________ is a philosophy that uniform commitment to qualify in all areas of an organization will promote a culture that meets customers perceptions of quality. Total quality management
Morale is important to managers, although it doesn’t affect profits. False
Early management theorists thought money was employee’s primary motivation. True
The Hawthorne studies found money was the primary motivator of employees. False
When laid off, a person’s attention probably shifts from fulfilling esteem needs to fulfilling psychological and security needs. True
The higher level goals in Maslow’s hierarchy and the motivational factors identified by Herzberg are important in motivating employees to work harder. True
Positive rewards for acceptable behavior tend to be more effective in the long run than negative punishments for unacceptable behavior. True
Managers without SOMETHING to Theory Y assume that people like and want to work and that people will seek out responsibilities if provided with the proper conditions. True
Theory Z is more participative and encourages lifelong employee commitment more than traditional management approaches. True
Equity theory relates a person’s willingness to contribute to the organization to the perceived fairness of the rewards received. True
Human relations is important in business primarily because: It affects worker morale and productivity
Poor morale is likely to cause: Absenteeism and high turnover
Fredrick Taylor: Analyzed jobs to improve efficiently
While trying to determine the effects of lighting and noise on worker’s productivity, which of the following found that social and psychological factors could significantly affect productivity: Elton Mayo
The Hawthorne studies were important because they introduced the idea that social and psychological factors affect: Productivity and morale
What did Hawthorne’s study reveal? That managers who understand the needs, beliefs and expectations of people will have the greatest success motivating employees
In the U.S. workers’________________needs as defined by Maslow….. Psycological and security
Maslow’s hierarchy classifies needs that motivate people in which order, starting from the most basic: Psychological, security, social, esteem, self-actualization
According to Maslow, an employee who goes to night school to get a college degree to minimize the chance of being layed off is motivated by: Security
If a store contest promises that the employee with the highest sales will be treated to dinner by the store manager, the store is helping its employees fulfill which is the following need? Esteem
Maslow’s hierarchy is important to managers because workers wont be motivated to contribute to the organization’s goals Until their basic needs are met.
Theories X and Y are most closely associated with: Douglas McGregor
The approach which suggests that imagination, ingenuity, and creativity can help solve organizational problems: Theory Y
Theory Z includes many elements associated with the _______ approach to management: Japanese
Jane learned that, although she and Jane were both…… Equity theory
TNT incorporated recently implemented a participative management…. Job enrichment
The planning function of human resources management includes determining the status of current personnel when planning her needs for the future. True
Testing is a mean of eliminating those who do not meet the job specifications. True
It is not necessary to verify an applicant’s references because most applicants tell the truth on applications and resumes. False
Training is a vital function of operations management. False
On a performance appraisal, an objective assessment is quantifiable and must take into account the work environment. True
Managers must take time to warn employees when their performance is unacceptable. True
Employees who are dissatisfied with their working conditions or compensation have to negotiate with a labor union to bring about change. False
Givebacks are concessions made by management to keep workers working. False
Picketing is a public protest against management practices. True
One of the benefits of diversity in the workforce is the ability to better serve the needs of a culturally diverse customer base. True
A human resources manager deciding how many positions an organization will need is engaging in which of the following: Planning
Internal recruiting has advantages over external sources, one of which is: Improved morale
Professionals who specialize in luring qualified people away from other companies: Headhunters
Following the interview, the next stage of the employee selection process usually involves: Testing
Managers involved in checking on applicant’s references should be aware that an applicant’s former employer will likely confirm only that the individual did indeed work there, but not provide any information about the applicant’s: Quality of work
16. Vikram, a Ph.D. has worked in the Monsanto research lab as a chemist for several years. He is currently participating in a series of management seminars at company expense. This is an example of: Development
To avoid legal problems, before firing an employee companies should ensure that: They have documented all problems and warning in the employee’s work records
Human resources department strive to: Minimize losses due to separations and transfers
To motivate employees such as care sales persons to sell as much as they can, they are paid: Commissions
The general manager at the Target store is probably paid by: A salary
An employee stock ownership plan is: Profit Sharing
If the negotiations between union and management representatives come to a standstill and a third part is brought in to make suggestions or prose solutions to help resolve the impasse, then the third party would likely to be a: Conciliator
Which of the following is not a secondary characteristic of diversity? Gender
Age, gender, and race are ____________ characteristics of diversity. Primary
Having a diverse workforce has many benefits. One benefit is: A greater ability to serve the needs of s diverse customer base

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