Test 2 Prep

Question 1

Accepting the risk of starting and running a business

Answer 1

Entrepreneurship

Question 2

What are four reasons people are willing to take the risk of being an entrepreneur?

Answer 2

Opportunity
Profit
Independence
Challenge

Question 3

What are five attributes that an entrepreneur must have?

Answer 3

Self-Directed
Self-Nurturing
Action-Oriented
Highly-energetic
Tolerant of Uncertainty

Question 4

Entrepreneurs that are interested in maintaining a balanced lifestyle.

Answer 4

Micropreneurs

Question 5

Basic services such as accounting, legal advice, and secretarial help, offered to new businesses in the critical stage of early development low-cost offices

Answer 5

Incubators

Question 6

What is the definition of a small business according to the SBA?

Answer 6

A business that is independently owned and operated, not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts

Question 7

An SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses)

Answer 7

SCORE (Service Corps Of Retired Executives)

Question 8

What are 4 advantages that a small businesses have over a large business in international trade?

Answer 8

-Overseas buyers often enjoy dealing with individuals over large corporate bureaucracies
-Small companies can usually begin shipping much faster
-Small companies can provide a wide variety of suppliers
-Small companies can give customers personal service and undivided attention because each overseas account is a major source of business to them

Question 9

What are the four functions of management?

Answer 9

-Planning
-Organizing
-Leading
-Controlling

Question 10

What are 5 things that leaders do well to succeed?

Answer 10

-Communicate a vision and rally others around that vision
-Establish corporate values
-Promote corporate ethics
-Embrace change
-Stress accountability

Question 11

Dealers who buy products to sell to others and ultimate consumers who buy product for personal use are known as _______.

Answer 11

External Customers

Question 12

Individuals and units within the firm that receive services from other individuals and units.

Answer 12

Internal Customers

Question 13

What are the ten principles of organization introduced by Henry Fayol?

Answer 13

-Unity of command
-Hierarchy of authority
-Division of Labor
-Subordination of individual interest to the general interest
-Authority
-Degree of centralization
-Clear communication channels
-Order
-Equity
-Spirit of pride and loyalty (esprit de corps)

Question 14

The optimal number of employees a manager supervises or should supervise

Answer 14

Span of Control

Question 15

What did Max Weber emphasize in his economic philosophies?

Answer 15

-Job descriptions
-Written rules, decision guidelines, and detailed records
-Consistent procedures, regulation, and policies
-Staffing and promotion based on qualifications

Question 16

The belief that large organizations demand clearly established rules and guidelines to be followed precisely. A term for an organization with many layers.

Answer 16

Bureaucracy

Question 17

A visual device that shows relationships among people and divides the organization’s work. It shows who reports to whom.

Answer 17

Organizational Chart

Question 18

The line of authority that moves from the top of the hierarchy to the lowest level

Answer 18

Chain of Command

Question 19

What are 4 decisions firms have to make when designing responsive organizations?

Answer 19

-centralization vs decentralization
-Span of Control
-Tall vs flat organizational structures
-Departmentalization

Question 20

This type of authority is when decision making is concentrated at the top level of management.

Answer 20

Centralized Authority

Question 21

This type of authority is when decision making is delegated to lower-level managers and employees more familiar with local conditions than headquarter management could be.

Answer 21

Decentralized Authority

Question 22

Details lines of responsibility, author, and position.

Answer 22

Formal Organization

Question 23

The system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority separate from the formal organizations.

Answer 23

Informal Organization

Question 24

Compares an organization’s practices, processes, and products against the world’s best.

Answer 24

Benchmarking

Question 25

Functions that an organization can do as well as or better than any organization in the world.

Answer 25

Core Competencies

Question 26

In ascending order, what are Maslow’s hierarchy of needs?

Answer 26

-Physiological needs
-Safety needs
-Social needs
-Esteem needs
-Self-actualization

Question 27

In descending order, what are Herzberg’s most important factors for enthusiasm?

Answer 27

-sense of achievement
-earned recognition
-interest in the work itself
-opportunity for growth
-possibility for advancement
-importance of responsibilty
-peer and group relationships
-pay
-supervisors fairness
-company policies and rules
-status
-job security
-supervisor’s friendliness
-working conditions

Question 28

What are four assumptions of Theory X management?

Answer 28

-The average person dislikes work and will avoid it if possible
-Because of the dislike, workers must be focused, controlled, directed, or threatened with punishment to make them put forth the effort to achieve the organizations’ goals
-the average worker prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security
-primary motivators are fear and punishment

Question 29

What are seven assumptions about Theory Y?

Answer 29

-most people like work
-most people naturally work towards goals to which they are committed
-the depth of a person’s commitment goals depends on the rewards achieving them
-under certain conditions, most people not only accept but also will seek responsibility
-people are capable of using a relatively high degree of imagination, creativity, and cleverness to solve the problem.
-In industry, the average person’s intellectual potential is only partially realized
-people are motivated by a variety of rewards

Question 30

What three steps should management follow for empowerment to be a real motivator?

Answer 30

-Find out what people think the problems in the organization are
-let them design the solutions
-get out the way and let them put those solutions into action

Question 31

Who proposed Theory Z and what two theories does it combine?

Answer 31

William Ouchi, management professor at the University of California - Los Angeles
The theory is a mix of Theory A and Theory J

Question 32

What are the five steps in human resource planning?

Answer 32

-Preparing a human resource inventory of the organization’s employees
-Preparing a job analysis
-Assessing future human resource demand
-Assessing future labor supply
-Establishing a strategic plan

Question 33

The act of obtaining of the right number of qualified people for the right time.

Answer 33

Recruitment

Question 34

What are the six steps in the selection process?

Answer 34

-Obtaining complete application forms
-Conducting initial and follow-up interviews
-Giving employment tests
-Conducting background investigations
-Obtaining results from physical exams
-Establishing trial (probationary) periods

Question 35

What type of workers are considered contingent workers?

Answer 35

-Part-timers
-temporary workers
-seasonal workers
-independent contractors
-interns
-co-op students