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Exam 2 for Introduction to Business! - Chapters 3. 6. 7 and 8

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Chapter 5Options for Organizing Small and Large Business

1.Approximately ______percent of all U.S. firms employ 100 or fewer workers.

a. / 25
b. / 50
c. / 75
d. / 90

2. What percentage of all small businesses are owned by women?

a. / 17
b. / 25
c. / 34
d. / 52

3. The board of directors of a corporation is elected by the ______.

a. / corporation's employees
b. / bondholders and other creditors
c. / corporate officers
d. / stockholders

Chapter 6—Starting Your Own Business: The Entrepreneurship Alternative

4.A person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business is a(n) ______.

a. / wealth generator
b. / entrepreneur
c. / stockholder
d. / business executive with a plan

5.Which of the following best describes an entrepreneur?

a. / The owner of a small business
b. / An individual who creates a new product
c. / The investors in a new business
d. / A risk taker who seeks a profitable opportunity

6.Dell Computer founder Michael Dell and Microsoft co-founder Bill Gates are two well-known examples of ______.

a. / intrapreneurs
b. / change agents
c. / atypical entrepreneurs
d. / entrepreneurs

7.Entrepreneurs possess all of the following traits EXCEPT ______.

a. / tolerance for ambiguity
b. / creativity
c. / lack of tolerance for failure
d. / self-confidence

8.Which demographic/economic trend has increased the opportunities for entrepreneurs?

a. / Aging population
b. / Increase in wages
c. / Surplus of college graduates
d. / Steady interest rates

9.Which of the following persons is LEAST likely to become an entrepreneur?

a. / An inquisitive person
b. / An intelligent person
c. / A calm, low-energy person
d. / A flexible person

10.Which of the following statements best describes how entrepreneurs view failure?

a. / They view failure as a learning experience.
b. / They don't worry about failing because something better always comes along.
c. / They enjoy risk and gambling.
d. / They worry that if they fail they'll never get another opportunity.

11.Which of the following companies has the longest and best-known record of encouraging entrepreneurship?

a. / IBM
b. / 3M
c. / General Motors Co.
d. / Microsoft Corporation

Chapter 7—E-Business: Doing Business Online

12.Price auctions on eBay are an example of ______.

a. / e-business
b. / communication
c. / information
d. / Entertainment

Chapter 8—Management, Leadership, and the Internal Organization

13.Management is the process of achieving ______through and with people and other resources.

a. / Profits
b. / Status
c. / organizational objectives
d. / societal objectives

14.As someone moves up the managerial hierarchy, which skills become relatively less important?

a. / Technical skills
b. / Human skills
c. / Conceptual skills
d. / Supervisory skills

15.Human skills involve ______.

a. / directing and controlling operations
b. / understanding knowledge and tools of a specific discipline
c. / leading and motivating workers (communicating well, being consistent and fair)
d. / seeing the organization as a unified whole

16.Conceptual skills are ______.

a. / not as important at the top management level
b. / very important for supervisors
c. / skills that allow a person to understand how all the pieces of an organization fit together to accomplish its objectives
d. / very important in understanding human motivation

17.Which of the four functions of management creates a well-designed road map of the actions needed to lead a company forward?

a. / Organizing
b. / Directing
c. / Controlling
d. / Planning

18.______is the act of directing or inspiring others to perform activities designed to achieve organizational objectives.

a. / Controlling
b. / Communicating
c. / Organizing
d. / Leadership

19.Leadership is most often associated with the ability to ______.

a. / communicate well with large groups of people
b. / arrange activities that have to be performed in a systematic way
c. / determine the most effective course of action
d. / inspire others toward high levels of achievement

20.Leaders establish power from all of the following sources EXCEPT their ______.

a. / position in the organization / c. / work ethic
b. / expertise / d. / personality

Essay Answers (please answer at least 3 of the following 6 questions if you wish to answer all you will get extra credit) Use your experience to make the answers interesting.

1.How do entrepreneurs differ from small business managers? Explain.

2.Describe the four categories of entrepreneurs. Which entrepreneur actually starts his or her own company? Explain.

3.Describe the three skills necessary for managerial success. Explain.

4.Describe competitive differentiation. What are some common sources?

5. What are the four Function of Management. Explain.

6.Define leadership. What are some traits found in many great leaders? Explain.