Unit 2 Exam (IB) Flashcards
Sole Proprietorship
a business that is owned (and usually operated) by one person.
Unlimited liability
a legal concept that holds a business owner personally responsible for all the debts of the business
limited partner
a person who invests money in a business but has no management responsibility or liability for losses beyond the amount they invested in the partnership
corporation
(sometimes referred to as a regular or a C corporation) an artificial person, created by law, with most of the legal rights of a real person
partnership
a voluntary association of two or more persons to act as co-owners of a business for profit
general partner
a person who assumes full or shared responsibility for operating a business
stock
the shares of ownership of a corporation
open corporation
(sometimes referred to as a public corporation) a corporation whose stock can be bought and sold by any individual
domestic corporation
a corporation in the state in which it is incorporated
stockholders
a person who owns a corporation’s stock
closed corporation
(sometimes referred to as a private corporation) a corporation whose stock is owned by relatively few people and is not sold to the general public
foreign corporation
a corporation in any state in which it does business except the one in which it is incorporated
alien corporation
a corporation chartered by a foreign government and conducting business in the United States
preferred stock
stock owned by individuals or firms who usually do not have voting rights but whose claims on dividends are paid before those of common-stock owners
common stock
the most basic form of corporate ownership and whose owners may vote on corporate policies
dividend
a distribution of earnings to the stockholders of a corporation
S corporation
a corporation that is taxed as though it were a partnership
proxy
a legal form listing issues to be decided at a stockholders’ meeting and enabling stockholders to transfer their voting rights to some other individual or individuals
board of directors
the top governing body of a corporation, the members of which are elected by the stockholders
Corporate officers
the chairperson of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors
Limited liability
a feature of corporate ownership that limits each owner’s financial liability to the amount of money that they have paid for the corporation’s stock
limited liability company (LLC)
a form of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership
joint venture
an agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time
not-for-profit corporation
(sometimes referred to as nonprofit) a corporation organized to provide a social, educational, religious, or other service rather than to earn a profit
syndicate
a temporary association of individuals or firms organized to perform a specific task that requires a large amount of money
merger
the combining of two corporations or other business entities to form one business
hostile takeover
a situation in which the management and board of directors of a firm targeted for acquisition disapprove of the merger
stockholder
a person who owns a corporation’s stock
After many months in business, Horatio decides that there are some negative aspects of having a sole proprietorship. All of the following are negatives except _____.
lack of money
pride of ownership
lack of continuity
unlimited liability
pride of ownership
Imelda wants to form a business in the easiest way possible. What form of business should she use?
Corporation
Sole proprietorship
Joint venture
Partnership
Sole proprietorship
Karume starts his own business as a sole proprietor. This form of business has the advantage of ____.
guaranteed income since he is the owner
payment of only small dividends to other owners
steady income
the owner keeping all of the profits from the business
the owner keeping all of the profits from the business
When Marquesa began her business, she did not have sufficient personal funds to own the businesses she operated so she brought in friends and family members to help with the funding. The businesses she operated were formed with an agreement, but no formal filing was required, and taxes were passed through directly to the business owners. What business form did she use to create these businesses?
Limited liability company (LLC)
Partnership
Corporation
Sole proprietorship
Partnership
Felicia and Bernard have decided to go into the quarry business together. They start by writing an agreement that explains the parameters of the business they will own and the responsibilities and roles each of them will have in the business. They have created a(n) ____.
corporate charter
licensing agreement
business plan
article of partnership
article of partnership
Ismaya and Aditya have created a business together. The business was Ismaya’s idea and he operates the business day-to-day. Aditya invested money in the business, but he doesn’t have any management responsibilities. The main advantage for Aditya in this arrangement is _____.
he does not pay any taxes on profit earned from the business
he can withdraw his investment in the business at any time
he gets to participate in daily responsibilities of the business
he is only financially liable for the amount he invested in the business
he is only financially liable for the amount he invested in the business
Serita and Tyler decide to form a partnership after discussing it for a few days. They have determined that a partnership has all of the following advantages except _____.
unlimited liability
ease of start-up
combined skills and knowledge
better access to money to fund the partnership
unlimited liability
Moe, Edita, and Hunter have been operating a business together as partners without a partnership agreement for several years. Hunter unexpectedly passes away, what will most likely become of the partnership?
The partnership will be immediately dissolved.
Moe and Edita will need to find a new partner to take Hunter’s place.
Hunter’s interest will automatically be divided between Moe and Edita.
Moe and Edita will be able to purchase Hunter’s interest from his estate.
Moe and Edita will be able to purchase Hunter’s interest from his estate.
A closed corporation is one that _____.
sells stock, but is taxed as if it were a corporation
has stock that can be bought and sold by any individual
has a limited number of stockholders and sales and exchanges of the stock are restricted
does not sell stock
has a limited number of stockholders and sales and exchanges of the stock are restricted
How corporations are designated changes depending on where the corporation is doing business. When a corporation is in the state in which it is incorporated it is known as a(n) ____.
alien corporation
domestic corporation
foreign corporation
public corporation
domestic corporation
Which of the following forms of business create a double taxation situation?
Sole proprietorship
Corporation
Limited liability company (LLC)
Partnership
Corporation
Jadyn wants to form a business that has very little government regulation. He has investigated different forms of business and determined that he will avoid forming a ____ because it is the most heavily regulated by the government.
sole proprietorship
partnership
corporation
syndicate
corporation
One of the main advantages of corporations as a form of business is _____, or each owner’s financial liability is equal to the amount of money that they have paid for the corporation’s stock.
the ease of ownership transfer
the right to dividends
limited liability
unlimited liability
limited liability
When Mark Kalish and John Berthold formed their company, Envirotech, raising capital and tax implications were their biggest concerns. They wanted to avoid having the company’s earnings taxed twice, but also realized that to expand Envirotech, they would need access to significant capital. Which form of business would meet the requirements for both the tax implication and access to capital for Envirotech?
S corporation
Sole proprietorship
C corporation
Nonprofit corporation
S corporation
Jacques and Kelly would like to form a business that gives them protection from liability but is taxed like a partnership. They have investigated S corporations but rejected them as having too many government regulations. They should form a ____.
limited liability company (LLC)
corporation
general partnership
joint venture
limited liability company (LLC)
Bongseon and Karim would like to form a corporation to provide string music education to children in their area. They want to form this business as a way to give back to the community and plan to have the children perform concerts in rest homes for older people who are unable to travel. Bongseon and Karim will most likely form a(n) ____.
limited liability company (LLC)
not-for-profit corporation
quasi-government organization
S corporation
not-for-profit corporation
A _______ is a partnership formed to operate for a specific time period or to accomplish a specific purpose.
limited partnership
joint venture
limited-liability family partnership
general partnership
joint venture
If Citigroup, JPMorgan Chase, KeyCorp, and Deutsche Bank joined together to make an extremely large loan, this association would be referred to as a(n) ____.
acquisition
partnership
syndicate
merger
syndicate
If Spotify purchased Pandora, leaving only one company remaining at the conclusion of the purchase, this would be referred to as a(n) ____.
acquisition
syndicate
merger
proxy
merger
If Mattel and Hasbro merged, this would be known as a ____.
vertical merger
horizontal merger
sideways merger
conglomerate merger
horizontal merger
Which of the following businesses would not be considered a small business?
A manufacturing firm with $17 million in revenue and 95 employees
A real estate development company with $100 million in revenue and 54 employees
A car repair shop with over $250,000 in revenue and eight employees
A wholesale trade company with $1 million in profit and 300 employees
A wholesale trade company with $1 million in profit and 300 employees
Small businesses are important to the U.S. economy for all of the following reasons except _____.
that they represent 99.9 percent of all employer firms
pay 40 percent of total U.S. private payroll
they employ about half of all private-sector employees
they have generated 50 percent of net new jobs over the past 20 years
they have generated 50 percent of net new jobs over the past 20 years
Frustrated that she was working many hours for someone else, Morgan decided to start her own business. She could work when she wanted to and take a day off as needed instead of having to work on a set schedule. Morgan was likely influenced by ____ when starting her own business.
family background
independence
age
money
independence
______ entrepreneurs own 42 percent of all businesses.
Teen
Black
Immigrant
Women
Women
Portia knows the customers of her hat shop by name and knows each of their preferences. What small business advantage does this demonstrate?
Ability to adapt to change
Personal relationships with customers
Independence
Simplified record keeping
Personal relationships with customers
Sriranjani has a motorcycle and ATV store. Her customers often talk about trikes. Sriranjani orders some Harley-Davidson Trikes for her inventory. Her actions are possible because small businesses _____.
can keep all profits
have simplified record keeping
have the ability to quickly adapt to change
have personal relationships with customers
have the ability to quickly adapt to change
Giovanni would like to start his own business, but he has very little savings. Additionally, his family isn’t willing to invest any money into his business because they fear it may fail. Giovanni’s bank is also unwilling to provide a loan that is large enough to start the business. This is an example of which disadvantage of small business?
Inability to adapt to change
Limited potential
Risk of failure
Limited ability to raise capital
Limited ability to raise capital
Kushi has collected money from savings, family investments, and bank loans in order to start her own florist shop. She is optimistic that her business will be a success because she loves arranging flowers and receives many likes and comments when she posts her designs online. Kushi asks you, a business major, what advice you have about starting a business. Which of the following is correct information you can share with Kushi?
Small businesses inherently possess the ability to expand.
Starting a small business requires much more than optimism and a good idea.
Entrepreneurs should always adopt a “fast growth” mindset.
Most small businesses generate a profit in their first year of operation.
Starting a small business requires much more than optimism and a good idea.
Bhavika has created a business plan as part of an assignment for her entrepreneurship class. Her plan is for a screen-printing business. In the _____ section of the business plan, Bhavika discusses current competition, pricing, and promotion.
Company and Industry
Marketing Plan
Benefits to the Community
Introduction
Marketing Plan
Malik must submit a business plan with his loan application. He has just finished the section of the plan that discusses the weaknesses of the business and how he plans to deal with those. Malik has just completed the _____ section.
Company and Industry
Financial Plan
Executive Summary
Critical Risks and Assumptions
Critical Risks and Assumptions
The organization chart for a business would appear in which section of the business plan?
Labor Force
Management Team
Executive Summary
Appendix
Appendix
Your friend would like to own their own business one day. You have learned a lot about franchises in your business course, so you tell your friend that as a franchisee, they would benefit from _____.
the use of the brand image and design of the business
the fee paid to open the franchise
the well-controlled distribution of products
more capital to expand the business
the use of the brand image and design of the business
Suki is discussing franchising with her uncle. He owns and operates a BP franchise. Suki knows from her business courses that her uncle operates a type of franchise in which _____.
a producer licenses distributors to see a given product to retailers
a manufacturer authorizes a number of retail stores to sell a certain brand-name item
a dual-branded franchise is one in which franchisors offer their products together
a franchisor supplies brand names, techniques, or other services rather than a complete product
a manufacturer authorizes a number of retail stores to sell a certain brand-name item
The UPS store offers franchises to investors who have a net worth of at least $150,000 and can pay an initial franchise fee of $29,950. The UPS store is considered the _____ and benefits from the arrangement ______.
franchisee; by ensuring that outlets are maintained and operated according to its own standards
franchisor; by having more capital available to expand operations and use for advertising
franchisor; by making use of the business experience of others
franchisee; by starting a business with limited capital
franchisor; by having more capital available to expand operations and use for advertising
Elif is a musician who would like to raise money to start her business. She decides to use ____ as a source of financing. To do so, she posts a description about her business and products on a website and invites people to contribute.
a small business investment company (SBIC)
franchising
crowdfunding
venture capital
crowdfunding
Haamid has received an investment for his small business from a private individual who invested money in exchange for ownership in Haamid’s company. Haamid likely received the investment from a(n) _______.
small business investment company (SBIC)
bank loan
venture capital firm
angel investor
angel investor
Celeste owns a small business and needs some technical help. She contacts a university-based group that provides individual counseling and practical training to owners of small businesses. Celeste contacted ____.
a small-business development center (SBDC)
a small-business institute (SBI)
the Small Business Administration (SBA) local office
the Service Corps of Retired Executives (SCORE)
a small-business development center (SBDC)
When Betsy started her business, she knew that if she needed any assistance she could contact _____ and receive help from retired and active businesspeople who volunteer their services to small-business owners.
the Small Business Administration (SBA) local office
a small-business development center (SBDC)
the Service Corps of Retired Executives (SCORE)
a small-business institute (SBI)
the Service Corps of Retired Executives (SCORE)
Hwan owns his own accounting firm and has just hired his first two employees. He seeks information from _____ who are senior and graduate students in business administration who provide management counseling to small businesses.
a small-business institute (SBIs)
the Small Business Administration (SBA) local office
the Service Corps of Retired Executives (SCORE)
a small-business development center (SBDC)
a small-business institute (SBIs)
Trevon has worked in a manufacturing industry for twenty years. He wants to open his own manufacturing firm and sell his products globally. Trevon thinks his company has a good chance to be successful internationally because he knows _____.
that real-time communications are shrinking business opportunities and he needs to act now
that national economies are becoming more self-reliant
that only one percent of small business in the U.S. currently engage in deliberate exporting
that technology only allows for large corporations to reach global markets
that only one percent of small business in the U.S. currently engage in deliberate exporting
Small Business Administration (SBA)
a government agency that assists, counsels, and protects the interests of small businesses in the United States
small business
an independent business with fewer than 500 employees, depending on its industry
business plan
a carefully constructed guide for the person starting a business
Franchising
the actual granting of a franchise
franchise
a license to operate an individually owned business as though it were part of a chain of outlets or stores
franchisor
anindividual or organization granting a franchise
franchisee
a person or organization purchasing a franchise
small-business investment companies (SBICs),
privately owned firms that provide venture capital to small enterprises that meet their investment stan ards
Small-business institutes (SBIs)
groups of senior and graduate students in business administration who provide management counseling to small businesses
venture capital
money that is invested in small (and sometimes struggling) firms that have the potential to become successful
Service Corps of Retired Executives (SCORE)
a group of businesspeople who volunteer their services to small businesses through the SBA
Small-business development centers (SBDCs)
university-based groups that provide individual counseling and practical training to owners of small businesses
small-business investment companies (SBICs)
privately owned firms that provide venture capital to small enterprises that meet their investment standards
Management
the process of coordinating people and other resources to achieve the goals of an organization
Planning
establishing organizational goals and deciding how to accomplish them
strategic planning process
the establishment of an organization’s major goals and objectives and the allocation of resources to achieve them
mission
a statement of the basic purpose that makes an organization different from others
goal
an end result that an organization is expected to achieve over a one- to ten-year period
Core competencies
approaches and processes that a company performs well that may give it an advantage over its competitors
SWOT analysis
the identification and evaluation of a firm’s strengths, weaknesses, opportunities, and threats
objective
a specific statement detailing what an organization intends to accomplish over a shorter period of time
plan
an outline of the actions by which an organization intends to accomplish its goals and objectives
tactical plan
a smaller-scale plan developed to implement a strategy
contingency plan
a plan that outlines alternative courses of action that may be taken if an organization’s other plans are disrupted or become ineffective
operational plan
a type of plan designed to implement tactical plans
Organizing
the grouping of resources and activities to accomplish some end result in an efficient and effective manner
strategic plan
an organization’s broadest plan, developed as a guide for major policy setting and decision making
directing
the combined processes of leading and motivating
leading
the process of influencing people to work toward a common goal
Motivating
the process of providing reasons for people to work in the best interests of an organization
Controlling
the process of evaluating and regulating ongoing activities to ensure that goals are achieved
middle manager
a manager who implements the strategy and major policies developed by top management
top manager
an upper-level executive who guides and controls the overall fortunes of an organization
first-line manager
a manager who coordinates and supervises the activities of operating employees
financial manager
a manager who is primarily responsible for an organization’s financial resources
operations manager
a manager who manages the systems that convert resources into goods and services
marketing manager
a manager who is responsible for facilitating the exchange of products between an organization and its customers or clients
human resources manager
a person charged with managing an organization’s human resources programs
Conceptual skills
the ability to think in abstract terms
administrative manager
a manager who is not associated with any specific functional area but who provides overall administrative guidance and leadership
analytic skills
the ability to identify problems correctly, generate reasonable alternatives, and select the “best” alternatives to solve problems
Technical skills
specific skills needed to accomplish a specialized activity
Leadership
the ability to influence others
Interpersonal skills
the ability to deal effectively with other people
Communication skills
the ability to speak, listen, and write effectively
Autocratic leadership
task-oriented leadership style in which workers are told what to do and how to accomplish it without having a say in the decision-making process
Participative leadership
leadership style in which all members of a team are involved in identifying essential goals and developing strategies to reach those goals
Transactional leadership
leadership style that emphasizes structure, performance and productivity, and reward systems
Transformational leadership
leadership style that focuses on transforming organizations and industries
Decision making
the act of choosing one alternative from a set of alternatives
charismatic leadership
personality-dependent leadership style
Laissez-faire leadership
a hands-off leadership style that provides direction, tools, and resources to employees while delegating responsibility and decision-making authority to them
problem
the discrepancy between an actual condition and a desired condition
Coordinating finances, materials, people, and other resources of an organization to achieve the organization’s goals is a process known as _____.
controlling
management
organizing
planning
management
Managers at the Powell Corporation are discussing the four main resources of management. While each are important, they agree that _____ is/are an organization’s most important resource.
financial resources
human resources
material resources
information
human resources
Amazon uses airplanes, trucks, and drones in its operations. These are considered _____ resources for Amazon.
human
material
financial
informational
material
The ______ resources of Nike include revenues and loans from banks.
material
financial
informational
human
financial
The primary functions of a manager are _____.
leading, motivating, hiring, and firing
planning, controlling, leading, and motivating
leading, motivating, training, and organizing
controlling, organizing, planning, and leading
controlling, organizing, planning, and leading
A plan developed to implement tactical plans is known as a(n) ______.
contingency plan
strategic plan
operational plan
mission
operational plan
Jerome is a general manager for a paper mill. He needs to determine how many employees are needed to operate machines in each area of the mill. Jerome is engaged in which function of management?
Organizing
Planning
Leading
Controlling
Organizing
After graduation, you are hired as a management trainee for a rental car company. One of your main tasks is to encourage the employees in the office to work toward a goal set by upper management. Which function of management does this describe?
Controlling
Planning
Leading
Organizing
Leading
As the manager in a production facility, Cherise engages in the management function of controlling. This function includes three steps. Which of the following is not one of the steps in the controlling function?
Taking corrective action
Measuring actual performance and comparing it with the standard
Setting standards against which performance can be compared
Determining who is responsible for creating the standard
Determining who is responsible for creating the standard
Natalia was reviewing LinkedIn contacts and noticed that in Randy’s profile he said he was a manager responsible for facilitating the exchange of products between his organization and its customers through distribution and advertising. From this she could conclude that Randy is a(n) ______ manager.
administrative
operations
financial
marketing
marketing
Clara provides overall guidance and leadership for the company where she is employed. She does not provide any specialized function. What type of manager is Clara?
Marketing
Human resources
General
Operations
General
Roslyn implements strategies and major policies developed by the upper management. Roslyn is a _____.
first-line manager
top manager
general manager
middle manager
middle manager
A manager with ______ skills can see the big picture of how the various functions within the organization interact.
technical
analytic
interpersonal
conceptual
conceptual
As a first-line manager, Hugo uses many skills. Sometimes he needs to show his employees how to perform a specific task—like how to make pivot tables in Microsoft Excel. Hugo’s knowledge of pivot tables is an example of his _____.
communication skills
analytic skills
interpersonal skills
technical skills
technical skills
Lian is the CEO of a local non-profit organization. By all accounts, she is a dynamic leader and excels at building relationships with key stakeholders both inside and outside of the organization. She is very compassionate and a great listener. Lian has effective _____ skills.
communication skills
analytic skills
interpersonal skills
technical skills
Interpersonal
As the CEO of ViewSource Media, Suzanne makes all final decisions. Anything important must be routed through the hierarchy she has established. Suzanne is a(n) ______ leader.
autocratic
laissez-faire
transformational
participative
autocratic
Charlie has observed that the jump and play center he manages is suffering long periods without customers. To determine the cause of the problem, he assembles all of the staff to get their input on the matter. Although he will make the ultimate decision regarding how to address the problem, he feels comfortable asking for input from his staff. This leadership style suggests that Charlie is a(n) ______ leader.
participative
transactional
autocratic
charismatic
participative
Chance is well liked by everyone in his organization. He is able to inspire and motivate people within the organization simply due to his inherent personality. Chance is a _____ leader.
laissez-faire
transformational
charismatic
participative
charismatic
Huy has a managerial decision to make. The first step they will take is ____.
implement a solution
ask for help
identify an opportunity
generate alternatives
identify an opportunity
Fernando has identified a problem in the department he manages and has generated alternatives to correct the problem. Next, he will _____.
determine the best alternative
implement the solution
evaluate the decision he made
implement each solution in turn to test how it will work
determine the best alternative
organization
a group of two or more people working together to achieve a common set of goals
organization chart
a diagram that represents the positions and relationships within an organization
job design
structuring the tasks and activities required to accomplish a firm’s objectives into specific jobs so as to foster productivity and employee satisfaction
chain of command
the line of authority that extends from the highest to the lowest levels of an organization
job specialization
the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people
departmentalization
the process of grouping jobs into manageable units
Job rotation
the systematic shifting of employees from one job to another
Departmentalization by function
grouping jobs that relate to the same organizational activity
Departmentalization by product
grouping activities related to a particular product or service
Departmentalization by customer
grouping activities according to the needs of various customer populations
Authority
the power, within an organization, to accomplish an assigned job or task
Delegation
assigning part of a manager’s work and power to other workers
Departmentalization by location
grouping activities according to the defined geographic area in which they are performed
Responsibility
the duty to do a job or perform a task
Accountability
the obligation of a worker to accomplish an assigned job or task
decentralized organization
an organization in which management consciously attempts to spread authority widely across various organization levels
span of management (or span of control)
the number of workers who report directly to one manager
centralized organization
an organization that systematically works to concentrate authority at the upper levels of the organization
Organizational height
the number of layers, or levels, of management in a firm
line structure
an organizational structure in which the chain of command goes directly from person to person throughout the organization
line managers
managers who make decisions and give orders to subordinates to achieve the organization’s goals
matrix structure
an organizational structure that combines vertical and horizontal lines of authority, usually by superimposing product departmentalization on a functionally departmentalized organization
cross-functional team
a team of individuals with varying specialties, expertise, and skills who are brought together to achieve a common task
Staff managers
managers who provide support, advice, and expertise to line managers
line-and-staff structure
an organizational structure that utilizes the chain of command from a line structure in combination with the assistance of staff managers
virtual structure
an organizational structure in which administration is the primary function, and most other functions are contracted out to other firms
team
two or more workers collaborating to achieve a shared mission, goal, or work product
problem-solving team
a team of knowledgeable employees brought together to tackle a specific problem
Self-managed teams
groups of employees with the authority and skills to manage themselves
virtual team
a team consisting of members who are geographically dispersed but communicate electronically
ad hoc committee
a committee created for a specific short-term purpose
standing committee
a relatively permanent committee charged with performing some recurring task
informal organization
the pattern of behavior and interaction that stems from personal rather than official relationships
informal group
a group created by the members themselves to accomplish goals that may or may not be relevant to an organization
task force
a committee established to investigate a major problem or pending decision
grapevine
the informal communications network within an organization
Seamus works as a sales manager for an apparel company managing a team of salespeople. Seamus’s manager is the VP of sales, and their manager is the CEO of the company. This suggests that _____.
the chain of command in the organization is short
the organization chart includes line and staff members
the chain of command in the organization is unclear
the organization chart is likely outdated
the chain of command in the organization is short
Serita has just started a new job. She is curious about the positions and relationships within her company, so she looks at the ______ to determine who reports to whom.
advisory positions
chain of command
management plan
organization chart
organization chart
Dominic is a manager who is working on structuring the tasks and activities required to accomplish his company’s objectives into specific jobs to foster productivity and employee satisfaction. Dominic is looking at _____.
job design
job specialization
job rotation
the organization chart
job design
Chris owns a large farm with several employees. He has found that his employees are more efficient when one employee plows the field, another employee plants the seed, and a third employee sets up the irrigation system. This is an example of ____.
an assembly line
job specialization
job enlargement
job rotation
job specialization
Many companies move employees systematically among departments in the organization to alleviate boredom and to provide employees with a better overall view of company goals and procedures. Nicholas LLC has a program in which workers do another worker’s task for the day to acquaint employees with the contributions made by each individual and department to the overall mission of Nicholas LLC. This practice of systematically moving employees is called ______.
job enlargement
job specialization
job rotation
job departmentalization
job rotation
Ideaz, a new consulting company, has grown rapidly and desires to departmentalize to simplify supervision and facilitate coordination. It will most likely departmentalize by _____.
product
customer
function
location
function
A large department store is departmentalized by Men’s Clothing, Women’s Clothing, Children’s Clothing, Housewares, Home Furnishings, and Electronics. This store is departmentalized by ______.
location
customer
function
product
product
Yoplait has decided to departmentalize by product. One disadvantage to using this type of departmentalization is it ______.
may require need for a larger-than-usual administrative staff
may cause duplication of specialized activities
can lead to slow decision making and emphasis of individual departments over the organization as a whole
may require a large administrative staff and elaborate control system to coordinate operations across many locations
may cause duplication of specialized activities
As an employee at Applebee’s, Prakash has a duty to do a job or perform a task. This is called ____.
responsibility
obligation
authority
accountability
responsibility
Alejandro is a runner for a sports ticketing business in Las Vegas. His duties normally include picking up sports merchandise from the warehouse and delivering it to the stores in addition to receiving ticket orders and delivering the tickets to customers at the hotels on The Strip. Alejandro was given permission by the office manager to sign credit-card receipts when making purchases. Alejandro has been given the ______ to use the business credit card.
responsibility
authority
duty
accountability
authority
Cretia has a narrow span of management. Which of the following is likely true?
The employees on Cretia’s team have a high level of competence in their jobs.
Cretia’s employees require a high level of interaction with her.
Cretia’s employees encounter very few new problems.
Cretia’s company has standard operating procedures for employees to follow.
Cretia’s employees require a high level of interaction with her.
As a new manager at Oatly, Jenn learns that the organization is considered tall. Jenn knows from her business classes that this means Oatly _____.
has standard operating procedures
managers likely have narrow spans of management
has lower administrative costs than a flat organization
managers may perform more administrative duties than in a flat organization
managers likely have narrow spans of management
When considering how to organize the structure of the new organization, a CEO must consider the disadvantages of each type of structure. One of the disadvantages of a line structure for an organization is ____.
controlling the quality of work
confusion about reporting protocols
conflict between line and staff managers
managers are responsible for a wide range of activities and, therefore, must have vast knowledge about all of these activities
managers are responsible for a wide range of activities and, therefore, must have vast knowledge about all of these activities
The matrix structure has many advantages, but the most obvious one is ____.
decreased operating costs
improved motivation
added flexibility
increased conflict
added flexibility
Asher, a sales representative; Hubert, an engineer; Kito, an accountant; and Betsy, a human resource specialist, are placed in a group to devise new uses and marketing schemes for one of the company’s existing products. This would be considered a ____.
cross-functional team
task force
self-managed team
special project team
cross-functional team
Aoibhe is part of a team at work. Her role on the team is to push the team toward achieving their goals and objectives. Aoibhe’s role on the team is a _____.
dual role
socioemotional role
task-specialist role
nonparticipant role
task-specialist role
Freeman Consulting has a(n) ____ committee comprised of managers from various departments in charge of evaluating the performance of the employees every year.
task force
ad hoc
permanent
standing
standing
Sydney, general counsel for Franklin, Inc., and Friedrich, a securities expert with the company, have been appointed to a(n) _____ to investigate the pending merger of their company with Huang Industries.
standing committee
network committee
ad hoc committee
task force
task force
Give Like a Mother, a charity in your town, has its own bowling league formed by employees with teams drawn from different departments within the company. It also has ad hoc committees and task forces to accomplish the goals of the organization. The ad hoc committees and task forces are _______ groups, whereas the bowling teams are _______ groups within the organization.
informal; formal
staff; line
line; staff
formal; informal
formal; informal
Stefan, a manager for a large company, overheard employees gossiping about him during lunch. He immediately sent emails to all employees with newly enacted rules against rumors, gossip, and discussions about the company’s financial situation, management, and other company matters. Stefan is _____.
attempting to use the grapevine as a managerial tool
going to fail in his attempt to eliminate the company grapevine
going to succeed in eliminating the company grapevine
trying to support employee’s freedom of speech rights
going to fail in his attempt to eliminate the company grapevine
