CH. 5, 8, 9, 14, 15, 17 Flashcards
________ is the management function that involves checking performance and making adjustments as needed.
Controlling
Who among the following is a middle–management employee in a company?
The division head
In the context of Maslow’s hierarchy, which of the following refers to the needs that contribute to survival, such as food and water?
A physiological need
In the context of Maslow’s hierarchy, a self–actualization need is a need:
to realize one’s full potential.
In the context of job enrichment, workers who have _______ have freedom and authority regarding their jobs.
autonomy
Which of the following theories says that a worker will be motivated if he or she believes that effort will lead to performance, and performance will lead to a meaningful reward?
Expectancy theory
Which of the following is true of operational planning?
Operational plans typically have a daily or weekly timeframe.
The span of control refers to the:
number of people that a manager supervises.
Staff managers supervise the functions that contribute directly to profitability, such as production and marketing.
False
Free–rein leaders hoard decision–making power for themselves, and typically issue orders without consulting their followers.
False
In the context of manufacturing, _________ refers to producing a product at the lowest cost.
efficiency
Which of the following is an example of a nondurable good?
Paper Towel
The ________ strategy is the production of small quantities of goods and services that tailored to more precisely meet the needs of specific customers—with very little increase in costs.
mass customization
Firms use a _______ when they produce goods that are relatively standardized and produced in large volumes, organizing machinery, equipment and other resources according to the specific sequence of operations that must be performed.
product layout
In the context of a project network diagram, which of the following is the characteristic of a critical path?
It is the sequence of activities that takes the longest to complete.
If a manufacturing firm invests in its processes by directly investing in its own foreign facilities, it is engaging in _______.
offshoring
A ________ software program helps engineers to find and correct design flaws before production.
CAE
“Poka–yoke” refers to:
simple methods incorporated into a production process designed to eliminate or greatly reduce errors.
_______ refers to a set of strategies and practices to eliminate waste, which is defined as any function or activity that uses resources but doesn’t create value.
Lean production
Just–in–time manufacturing requires the manufacturer to maintain a large inventory of goods, increasing storage costs.
False
The gap between the pay packages of CEOs and workers has been consistently decreasing over the past 30 years.
False
In the context of recruitment, _______ is primarily a tool to reject unqualified candidates, rather than to actually choose qualified candidates.
the job application
In the context of recruitment, _______ are highly regulated by state and federal law to ensure that firms don’t use them just to screen out certain individuals.
physical exams
In the context of recruitment, the _________ period is a specific timeframe during which a new hire can prove his/her worth on the job.
probationary
Which of the following is a contingency type of worker?
An independent contractor
In the context of employment training, the ________ approach is used by trainers to train workers on “real” equipment similar to what they would actually use on the job.
vestibule
In the context of employee’s compensation, which of the following is a benefit?
A paid sick day
________ refers to a system that allows employees to work a full–time number of hours in less than the standard workweek.
A compressed workweek
In the context of employee benefits, the ________ approach involves giving employees a set dollar amount per person that they must spend on company benefits.
cafeteria–style
The term _________ refers to policies meant to increase employment and educational opportunities for minority groups—especially groups defined by race, ethnicity, or gender.
affirmative action
A system for recognizing, organizing, analyzing and reporting information about the financial transactions that affect an organization is known as ________.
accounting
GAAP uses FASB in order to bring consistency to accounting among companies.
False
Items that a company owns are considered its __________.
assets
What are amounts a company owes referred to as?
liabilities
What is a company’s profit or loss is determined by?
subtracting expenses from revenues
All of the following statements about the cash flow statement are true except:
a. the cash flow statement covers a period of time.
b. the cash flow statement shows the change in cash on hand from the beginning of the period to the end of the period.
c. shows inflows and outflows of cash in the following categories: operating, investing, and financing.
d. shows revenues earned during the period.
d. shows revenues earned during the period.
The purpose of an independent audit is to verify that the financial statements were prepared in accordance with GAAP and that they fairly present the financial condition of the organization.
True
Companies provide comparative financial statements so that potential investors can perform ________.
horizontal analysis
While financial accounting is intended to provide financial information to outside parties, such as stockholders and creditors, _________ accounting is intended to provide information to parties inside the organization.
managerial
The ________ budget represents the firm’s overall plan of action for a specified time.
master
The duties of a financial manager include all of the following except:
a. planning for the effective use of financial resources.
b. evaluating long–run investment opportunities.
c. managing the firm’s working capital.
d. establishing price points for the company’s products.
d. establishing price points for the company’s products.
Financial capital refers to the funds a firm uses to acquire its _________ and finance its ___________.
assets, operations
The main financial ratios presented all fall into one of these four categories: LAPL
liquidity, asset management, profitability, and leverage.
A liquid asset is one that can be converted to cash, even if value is lost in the process.
False
The ___________ shows projected cash inflows and outflows each month.
cash budget
The budgeted income statement and budgeted balance sheet are also referred to as pro forma financial statements.
True
Sources of short–term financing include all of the following except:
a. commercial paper.
b. factoring.
c. trade credit.
d. retained earnings.
d. retained earnings.
Long–term financing sources include all of the following except:
a. corporate bonds.
b. retained earnings.
c. direct investments from owners.
d. commercial paper.
d. commercial paper.
Cash equivalents include all of the following except:
a. T–bills.
b. accounts receivable.
c. commercial paper.
d. money market mutual funds.
b. accounts receivable.
Capital budget proposals make a case for projects like upgrading old equipment to newer models that are more cost–effective.
True
Interference that causes the message you send to be different from the message your audience understands is referred to as:
noise.
There are several different types of communication barriers that can interfere with your message. These include: PLOBPC
Physical Barriers, Language Barriers, Organizational Barriers, Body Language barriers, Perceptual Barriers, Cultural Barriers.
As long as your words convey the message you mean to send, it does not matter what nonverbal signals you send.
False
When you focus all your attention on the speaker, you are practicing ________.
active listening
In communicating, it is important to consider what channels your audience will actually use.
True
Bias comes in many forms including:
age, gender, and race.
Passive voice is preferred over active voice for business communications.
False
Choose the best answer. In preparing a written message it is important to:
a. spell check your work before sending.
b. use emoticons (smiley faces, etc.) in order to set the right tone.
c. proof your work for errors, use block paragraphs, and use lists where appropriate.
d. use abbreviations whenever possible.
c. proof your work for errors, use block paragraphs, and use lists where appropriate.
The general sections of a verbal presentation are:
a. the introduction and the bulk of what you have to say followed by questions.
b. the opening, body, closing, and questions.
c. the opening and closing.
d. the opening, body, and questions.
b. the opening, body, closing, and questions.
Suggested ways to calm your nerves before a presentation include:
a. practicing over and over again until you have memorized the presentation.
b. telling a funny joke that you heard a comedian share on cable television.
c. drinking a soda or energy drink.
d. deep breathing and positive thinking.
d. deep breathing and positive thinking.
When choosing a _________ you must evaluate the needs and expectations of your audience
communication channel
uses formal communication not slang and jargon. Language barriers arise due to excessive use of jargon and slang.
Business communication
facial expressions, gestures, posture and eye contact.
Non-verbal forms of communication
Taking ____ will help improve your listening skills
notes
communication is best to communicate critical information.
Face-to-face
best for a large number of people, noncontroversial topic, detailed message
Memos
gender bias, age bias, and bias related to race ethnicity, and nationality
Common types of bias in business communication
One way to get over about speaking is to take slow, deep breaths.
anxiety
in front of a mirror is an effective way to prepare for a presentation.
Practicing your speech
Do not put too many words or topics
on a PowerPoint slide.
You should ______ questioners during your presentation even if they are hostile.
not ignore
What do stakeholders have an interest in accounting information?
Income shows how much a business is making, which is key to being able to make a profit. Stakeholders also have interest in a company’s expenses. Profit, which sustains a business and makes money for its stakeholders, comes from the difference between income and expenses. Stakeholders are interest in assets because they make a company valuable in the eyes of other investors. Liabilities cover many of the additional pieces of accounting information that matter to stakeholders.
_______ plan for effective use of financial resources and evaluate long-term investments concentrating on both the short and long term
Functions of a financial manager
plan for effective use of financial resources and evaluate long-term investments concentrating on both the short and long term
Functions of a financial manager
credit granted by sellers to customers for goods usually 30-60 days
Trade credit
Cash budgets normally cover
a one year period.
is a guaranteed line of credit that a bank makes a binding commitment to provide a business and a firm pays a commitment fee on unused funds.
Revolving credit agreement
is a requirement a lender imposes on a borrower as a condition of the loan.
Covenant
workers won’t be motivated to work harder if they think co-workers don’t work as hard and make more money
Equity theory
planning for unexpected events
Contingency plan
visual representation of the company’s formal structure
Organizational chart
the line managers supervise the functions that contribute profitability and staff managers supervise the functions that provide advice and assistance to the line departments.
In a line-and-staff organization
Leadership style is?
situational
Establishing _______ is an important part of controlling.
clear standards
The _______ monitors performance and initiates corrective actions.
control process
Poor ____________ can be costly.
human resource management
can be viewed by employees as “the enemy.”
Human resources
departments must quantify their impact on the company in dollars and cents.
Human resource
To ensure the effectiveness of a company ______ is key.
efficiency
3 types of management skills are:
technical, human and conceptual.
getting together with friends and co-workers.
Maslow’s social needs
Theory Y managers believe employees
can be motivated with rewards.
is learning more tasks.
Job enrichment
leaders set objectives, but give their followers the autonomy to accomplish those goals.
Free-rein
is creating the exact conditions that the trainee will face on the job.
Job stimulation
refers to the combination of pay and benefits that employees receive in exchange for their work.
Compensation
noncash compensation, health insurance, and vacation.
Benefits
The Civil Rights Act of 1964
provides broad protection against discrimination by employers.
is a set of activities or steps that combine inputs to create a good or service.
A process
hold inventories of raw materials, components and parts, work-in process, and finished goods.
Manufacturing firms
can be produced independently of the consumer and then stored and shipped.
Goods
firms hold inventories of raw materials, components and parts, work-in process, and finished goods.
Manufacturing
includes such considerations as ambience, functionality, and artifacts.
Servicescape
provides powerful drawing and drafting tools to create 3-D drawings
CAD software
is any function or activity that uses resources but does not create value.
Waste
Studies indicate that ______ in the labor force still face a significant degree of discrimination in terms of pay and promotions.
women
is defined in terms of how well a product satisfies the preferences of customers and are key to achieving improving efficiency and effectiveness.
Quality
is a network of national standards institutes in over 160 nations that develop global standards for industries.
ISO
production emphasizes production of goods to meet actual current demand thus minimizing inventories of finished goods and work-in-process.
Just-in-time (JIT)
are a lump sum payment to reward employees for strong performance.
Bonuses
When ____________ that works best for an organization the most efficient process, the best sequence of processes and the appropriate layout of production and distribution facilities must be considered.
determining the type of process
are expensive, complex and difficult to implement. ERS
Enterprise resource systems
is the network of relationships that channels the flow of inputs, information, and financial resources through all the processes directly or indirectly involved in producing goods and services.
A value chain
shares some characteristics with TQM, such as an organization-wide focus on quality and a long-term commitment t continuous quality improvement.
Six Sigma
is focused on maximizing the effectiveness of the workforce by recruiting talent, promoting career development and determining workforce strategies.
Human resource management
is hiring from inside the company.
Internal recruitment
training is a popular low-cost method of training.
On-the-job
refer to pay in exchange for the number of hours or days that an employee works.
Wages
can save both employees and employers money.
Telecommuting
__________ is Assets=Liabilities + Owners equity.
The accounting equation
are claims that outsiders have against a firm’s assets.
Liabilities
working within an organization, preparing reports and analyzing financial information such as budgets and cost management.
Management accountants
provide services such as tax preparation, external auditing, or management consulting to clients on a fee basis.
Public accountants
address the needs of external stakeholders, including stockholders, creditors and government regulators.
Financial accountants
(GAAP) guideprovide external shareholders with relevant, consistent, and comparable financial information
Generally accepted accounting principles
The ______ statement summarizes the financial results of a firm’s operations over a given period of time and indicates if a firm earned a profit or lossless
income
Statement of _______ provide information about used cash in the most recent accounting period and the cash balance at the end of the accounting period.
cash flows
The _______ process includes: making sure accountants understand GAAP, review sales receipts/invoices and count the supplies in inventory.
external audit
is concerned with preparing financial statements for external stakeholders according to a fixed schedule; managerial provides information to internal stakeholders on an “as needed” basis.
Financial accounting
believe that treating customers, employers, creditors and other stakeholders with respect and fairness often helps the firm increase value for its owners.
Financial managers
When _______ are concerned about the ability to pay off debts that will come due in the next year, they are likely to focus on liquidity ratios.
financial managers
revolving credit agreements and commercial paper are common ways to raise short-term financing.
Trade credit
represents funds that arise as a natural result of a firm’s business operations without the need for special arrangements.
Spontaneous financing
A key difference between a ___1____ and a ___2___ agreement is that under a ___1____ the bank only agrees to make funds available as long as the borrower’s credit rating doesn’t deteriorate while in a ___2___, the bank guarantees that the funds will be available.
line of credit = 1
revolving credit = 2
If a customer ______ and gets a bill from a collection agency this is an example of factoring.
writes a bad check
is a system for recognizing, recording, organizing, summarizing, analyzing, and reporting information about the financial transactions that affect an organization.
Accounting
value is the amount of future cash flows.
Net present
The richness of a _______________ refers to the amount of verbal and nonverbal communication it can convey to recipients.
communication channel
is a management tool that explicitly shows how a firm will acquire and allocate the resources it needs to achieve its goal.
Budgeting
is moving processes previously performed domestically to a foreign location.
Offshoring
