Business Exam 2

Front 1

Entrepreneural spirit

Back 1

The desire to create a new business

Front 2

Intrapreneurs

Back 2

Employees who bring an entrepreneurial spirit to an existing organization

Front 3

Small Business Administration

Back 3

U.S. government agency that provides information, advice, and funding to small businesses

Front 4

Business plan

Back 4

Written document that describes the opportunity, goals, and plans for a business

Front 5

Angel investors

Back 5

Private individuals who invest money in exchange for ownership in a company

Front 6

Venture capital

Back 6

Money invested in high-growth companies that have the potential to become large and successful

Front 7

Crowdfunding

Back 7

When entrepreneurs invite people to contribute to a business or project, usually via an online business platform

Front 8

Franchise

Back 8

A license to operate an individually owned business as if it were a part of a chain of outlets or stores

Front 9

Franchisor

Back 9

An individual or organization granting a franchise

Front 10

Franchisee

Back 10

A person or organization purchasing a franchise

Front 11

Characteristics of entrepreneurs

Back 11

1. Vision

2. Energy

3. Internal drive

4. Confidence

5. Tolerance for uncertainty

Front 12

What percent of private sector employees work for small businesses?

Back 12

50%

Front 13

According to the Kauffman Foundation, the average new firm required _____ in startup capital, although a large share of businesses start for less than _____.

Back 13

$80,000.... $5,000

Front 14

Before seeking financial backing for his business, Tyler puts together a document explaining the goals, milestones, and projections for the business. Tyler has constructed a:

Back 14

Business plan

Front 15

While Tamara currently has just one pet grooming store, she wants to validate the business model and prove it can be profitable. Once she has done that, her larger plan is to franchise the idea across the country. This relates to the entrepreneurial characteristic of:

Back 15

Vision

Front 16

Vanessa’s business plan outlines her startup costs and cash flow forecasts. This is most likely found in which section of her plan?

Back 16

Financial projection

Front 17

In the U.S., it can take just a few days and less than a couple hundred dollars to start a business. This is an example of:

Back 17

A culture of entrepreneurship

Front 18

Bill has successfully launched his wireless speaker business, which is growing quickly. He would like to expand into overseas markets, but was told by several banks that this idea was too risky. That may be fine though because, in addition to funding, Bill would also like technical advice to help grow the business. What type of funding would best fit Bill’s situation and needs?

Back 18

Angel investor

Front 19

Approximately how many businesses are there in the United States?

Back 19

27.5 million

Front 20

Three basic purposes of a business plan?

Back 20

Communication, management, and planning

Front 21

Five major components of a business plan?

Back 21

1. Executive summary

2. Product description and market analysis

3. Marketing plan

4. Operations plan

5. Financial projections

Front 22

Emma and Becka have grown their subscription cosmetics business by 500% each in the last 2 years. They have the potential to rapidly grow much larger if they could get access to the right funding. They are talking to some firms that specialize in funding high-growth companies. Emma and Becka realize that funding are highly competitive. What kind of investors are they dealing with?

Back 22

Venture capital

Front 23

Planning

Back 23

Establishing goals for the organization and developing strategies to accomplish them

Front 24

Organizing

Back 24

Arranging resources and activities in a way that effectively and efficiently accomplishes the goals

Front 25

Leading

Back 25

Influencing people in the organization to work toward a common goal

Front 26

Controlling

Back 26

Measuring results against goals and making corrections when needed

Front 27

SWOT analysis

Back 27

A tool that analyzes strengths, weaknesses, opportunities, and threats for a company. It can be used during the strategic planning process to set goals and objectives

Front 28

Functional area

Back 28

A group of employees who specialize in a particular business function, such as marketing or finance.

Front 29

Organizational chart

Back 29

A diagram that represents the positions and relationships of the people within an organization.

Front 30

Autocratic

Back 30

A style of leadership where the leader makes decisions and the employees are expected to execute the decisions exactly as directed.

Front 31

Participative

Back 31

A style of leadership where the leader consults employees before making decisions.

Front 32

Laissez-faire

Back 32

A style of leadership where the leader provides a basic vision and the necessary resources for the team, and then mainly acts as an advisor.

Front 33

Gary recently noticed that the plant he is managing is delivering only 30 percent of its products on time. To determine the problem, he assembles various department heads and the plant supervisor to get their input on the matter. Although the ultimate responsibility is his, he has no difficulty delegating decision-making authority to any member of this group. This style of leadership suggests that Gary is a(n) _____ leader.

Back 33

Participative

Front 34

Erin has methodically worked her way from being a first-line manager at the factory to the position of chief operations officer. Along the way, her need to demonstrate _____ skills has decreased and her need to demonstrate _____ skills has increased.

Back 34

Technical, conceptual

Front 35

Crystal is the general manger for a large team of skilled and experienced programmers at a rapidly growing social media company. She wants to utilize a leadership style that fully utilizes the talents of her team and reduces the number of managers required to oversee the operation. She would choose:

Back 35

laissez-faire leadership

Front 36

When Robert Keening became president of Snow Bird Airlines, he began brainstorming with groups of employees to get their opinions on how to turn around the airline’s declining sales, which he had determined was due to increased competition. These meetings with employees represent which part of the decision-making process?

Back 36

Generating alternatives

Front 37

Brenda Simpson is in charge of designing the production layout for a new Saturn plant, and also in charge of supply chain management at the plant. In terms of her functional specialty, Brenda is a(n) _____ manager.

Back 37

Operations

Front 38

The management team at T-Mobile is reviewing new subscriber growth this quarter compared to last quarter. They are engaging in which function of management?

Back 38

Controlling

Front 39

Coca-Cola makes Vitamin Water. While performing a SWOT analysis, they discover that sales of healthier functional beverages, such as Vitamin Water, are expected to grow much more quickly than the sales of cola drinks in the next 5 years. The fast growth of the functional beverage market would be classified as a(n) _____, while the slowing growth of the cola market would be classified as a _____.

Back 39

Opportunity, threat

Front 40

Alaska Airlines has established a goal of increasing profits by 12 percent next year. To ensure that the goal is reached, management monitors profits on a monthly basis. After three months, if profits have not increased by 3 percent, management will take corrective action to get the company on track. By doing so, management is carrying out its _____ function(s).

Back 40

Controlling

Front 41

As Kyle conducts annual evaluations of his employees, he notices that Mari and Debbie have both been less productive since they were relocated to the same department. Kyle is in what stage of the managerial decision-making process?

Back 41

Identifying the problem or opportunity

Front 42

Maslow's Hierarchy of Needs

Back 42

A motivation theory that suggests we seek to fulfill a variety of needs in a particular order, from physiological needs to self-actualization needs.

Front 43

Herzberg's Two-Factor Theory

Back 43

A motivation theory that suggests certain higher-level job factors will satisfy employees, while certain lower-level job factors will merely prevent them from becoming dissatisfied.

Front 44

Maintenance Factors

Back 44

According to Two-Factor Theory, job factors such as job security, pay, and working conditions will merely prevent an employee from being dissatisfied.

Front 45

Motivation Factors

Back 45

According to Two-Factor Theory, job factors such as recognition, responsibility, and opportunities for advancement will satisfy and actively motivate employees.

Front 46

Reinforcement theory

Back 46

A means of modifying behavior through the systematic use of punishment and rewards. The four methods of reinforcement are positive reinforcement, negative reinforcement, punishment, and extinction

Front 47

Equity theory

Back 47

A motivation theorybased on the premise that people are motivated to obtain and preserve equitable treatment for themselves.

Front 48

Expectancy theory

Back 48

A motivation theory that suggests our motivation depends on how much we want a certain outcome, and our perception of whether we’ll accomplish the outcome.

Front 49

Goal-setting theory

Back 49

The theory that employees are motivated to achieve specific and moderately challenging goals.

Front 50

Management by Objectives (MBO)

Back 50

A formal technique for implementing goal setting within an organization that allows individuals to participate in goal setting and performance evaluation.

Front 51

Job enrichment

Back 51

A method for motivating employees by providing them with increased variety, responsibility, and control over their jobs.

Front 52

Job enlargement

Back 52

A form of job enrichment where an employee is given additional but similar tasks to complete.

Front 53

Job redesign

Back 53

A form of job enrichment where employees are assigned entirely new tasks that fit their skill sets and the organization’s needs.

Front 54

Job rotation

Back 54

A form of job enrichment where an employee is moved between various jobs for specific periods of time.

Front 55

Self-managed team

Back 55

A type of team where members have the skills and ability to manage themselves.

Front 56

Virtual team

Back 56

A type of team where members are geographically dispersed but communicate electronically.

Front 57

Ethics

Back 57

The study or right and wrong and the morality of choices that individuals make

Front 58

Business ethics

Back 58

The application of moral standards to business situations.

Front 59

Conflict of interest

Back 59

In business, when an employee takes advantage of a situation for his or her own interest rather than the employer’s interest.

Front 60

Transparency

Back 60

The free flow of information inside and outside the company. This includes the flow of information to employees, investors, customers, and other stakeholders.

Front 61

Social audit

Back 61

Comprehensive reports of what an organization is doing in regard to social issues that affect it.

Front 62

Code of ethics

Back 62

A written guide to acceptable and ethical behavior as defined by an organization; it outlines uniform policies, standards, and punishments for violations.

Front 63

Whistle-blower

Back 63

Someone from within an organization who informs the press or government officials about unethical practices at the organization.

Front 64

Ethical dilemma

Back 64

A decision where every alternative impacts various stakeholders in unpleasant ways.

Front 65

Stakeholder

Back 65

Anyone who is impacted by the activities of the business, including investors, employees, customers, local communities, and government.

Front 66

Social responsibility

Back 66

The recognition that business activities have an impact on society, and that those impacts are to be considered when making decisions

Front 67

Sustainability

Back 67

Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Front 68

You enjoy the increased creativity that comes from working with the product launch team at work. But one team member spends most meetings texting, and rarely volunteers for any meaningful tasks on the project. This demonstrates which potential disadvantage of teamwork?

Back 68

Social loafing

Front 69

Under Herzberg's theory, when _____ factors are present in the work environment, workers will be satisfied; when _____ factors are absent, workers can become dissatisfied.

Back 69

Motivation; maintenance

Front 70

Joyce was just told that if she can double her sales numbers she'll get a $50,000 bonus at the end of the year. That bonus would really help because Joyce is saving up for a bigger house. However, doubling sales numbers seems impossible to Joyce. According to expectancy theory, what is her likely response?

Back 70

She will not be motivated because the outcome does not seem likely to Joyce

Front 71

You have found that the collaboration you have with your cross-functional team at work often leads to faster and more thorough results compared to when you're working alone. This is an example of how teams:

Back 71

Provide synergy

Front 72

Typically your process improvement team at work is creative and generates innovative solutions. But recently a team leader emerged, and the team almost automatically agrees to every idea she suggests. When you try to provide an opposing point of view, you get shot down immediately. This demonstrates which potential disadvantage of teamwork?

Back 72

Groupthink

Front 73

You used to be the sole member of the logistics department, which made it easy to select trucking carriers, schedule shipments, and organize the warehouse. Now the department has three other employees, all with extremely different working styles. This can be frustrating and makes it harder to accomplish many of these same tasks. This demonstrates which potential disadvantage of teamwork?

Back 73

Team conflict

Front 74

When Sara was recognized by the store manager for exceeding her past year's objectives, and when the announcement of her promotion to assistant store manager was made, this fulfilled which level on the hierarchy of needs?

Back 74

Esteem

Front 75

Which of the following is true about job enrichment?

Back 75

It increases the number and/or variety of tasks performed by employees

Front 76

The team you manage reduced defects by 20 percent last month. Much of this was due to the leadership of your floor supervisor, who launched a process improvement initiative. As a reward, you give each team member a $2,500 bonus. In addition, you give only the floor supervisor a plaque and two extra paid days off. This makes some team members unhappy because they perceive inequity. Which of the following is the best solution?

Back 76

Ensure you have communicated the basis of the rewards to the team

Front 77

A sense of belonging is a characteristic of which level in the hierarchy of needs?

Back 77

Social

Front 78

Tony Shinn is applying for a mortgage to purchase his first home. His credit rating is poor due to several late payments on his credit cards and car loan. He is upset because his friend Jerry—who has excellent credit—was approved for a loan, while Tony was rejected. This mortgage company’s actions were:

Back 78

Ethical—because credit history is an important factor in credit decisions

Front 79

The manager of a large retail chain recently spoke to a group of college students about being successful in the business world. He focused particularly on the importance of fulfilling the purpose of the business organization: that is, to produce and market profitable products needed by society. In so doing, he indicated that a stockholder, not the society as a whole, invests in a corporation to earn a return on his or her investment and that a firm is legally obligated to act in stockholders’ interests. What concept do the manager’s comments reveal?

Back 79

Economic model of social responsibility

Front 80

Which of the following is true about sustainability strategies?

Back 80

As awareness of environmental issues has increased, many companies have made increased efforts to implement sustainable business practices.

Front 81

By establishing Ronald McDonald Houses, temporary lodging for individuals with seriously ill family members, McDonald’s has committed itself to more than just shareholder wealth. The corporation’s active role in improving societal conditions suggests that it is responsive to which of the following arguments for the socioeconomic model of social responsibility?

Back 81

Social responsibility promotes environmental stability and long-run profitability.

Front 82

You are a general manager for a video game company. Your newest game has several levels, each one increasingly more violent. Because the agency that rates video games only tested the first level, they rated the game as appropriate for younger audiences. Your company is happy about this because stricter ratings can hurt sales. You decide to give the ratings agency access to the more violent levels, leading them to re-rate the game for mature audiences only. Company executives are furious about the potential damage to sales, and threaten to fire you. Your actions as a manager were:

Back 82

Legal and ethical

Front 83

When DVR recorders were first introduced, the price was very high, often preventing the average consumer from purchasing one. Today, as a result of increased competition in the market, DVRs are significantly cheaper. By reducing the price of these products and ensuring a large number of product offerings, competition has promoted the consumers’ right to:

Back 83

Choose

Front 84

Which of the following violates the ethical principal of avoiding conflicts of interest?

Back 84

You choose a supplier because you are a shareholder in the supplier’s company and stand to gain personally from the decision.

Front 85

A large manufacturing company has found that younger employess tend to have fewer medical problems than workers over 40. Therefore, management decided to hire only workers under 40 to reduce company health insurance costs. This is illegal under the:

Back 85

ADEA

Front 86

Shawna just received the results of her company’s social audit. While the company received high marks in most areas, the audit revealed that one of the company’s overseas suppliers may be using child labor during peak production season. Revealing this information would be a public relations nightmare for the company, and could cause the loss of key customers. What is the key ethical concern Shawna is faced with in this situation?

Back 86

Being transparent

Front 87

MasterCard sends a customer a memo that discloses the true cost of borrowing with each billing statement. It does this because it realizes that the customer has the right to:

Back 87

Be informed