Which of the Following Would Not Be Considered a Small Business?

Name ______ID ______October 15, 2013

GEB 1011 Unit 2 Test

1. Which of the following would not be considered a small business?
2. A manufacturing company with 450 workers
3. A wholesaler with 70 employees
4. A retailer with $7 million in annual sales
5. An agricultural business with $700,000 in sales

1. What is an advantage of a home-based business?

1. More control over the business
2. Low start-up and operating costs
3. More visibility to customers
4. Greater control over personal time

1. I only
2. II only
3. I and II only
4. II and III only
5. I, II and IV only

1. Which of the following is the leading cause of today's small business failures?
2. Management shortcomings
3. Poor products and/ or services
4. No marketing plan
5. Excess government regulation

1. Which of the following statements regarding franchising is FALSE?
2. Franchises are more risky than other forms of business ownership.
3. Franchisees have the benefit of name recognition.
4. Franchisors provide a wide range of support to franchisees.
5. Benefits for the franchisor include opportunities for expansion that might not otherwise be available

1. Sole proprietorships have all of the following advantages EXCEPT ______.
2. Ease of formation
3. Unlimited life
4. Ease of liquidation
5. Owner flexibility

1. Devon and Keith opened a restaurant as a partnership. Two years later, Keith left the restaurant, and Devon discovered that Keith had charged numerous expenses to their account. These expenses resulted in thousands of dollars worth of debt for the restaurant. What option does Devon have in this situation?
2. He doesn’t have to worry because, according to law, everyone is responsible for his/her own debts.
3. Business creditors will pursue Keith alone since his signature authorized payments.
4. Business creditors will expect Devon to pay at least half the debt since he owns 50 percent of the business.
5. Business creditors will expect full payment from Devon.

1. Many businesses fail during the early years because of ______.
2. Unmotivated owners
3. Poor planning
4. Niche markets
5. Inadequate financing

1. An acquisition occurs when ______.
2. One corporation owns 8 percent of the stock of another corporation
3. One company purchases the property and assumes the obligations of another company
4. Two or more firms combine to form a single company
5. Owners of small companies band together to operate their businesses collectively

1. United Airlines' purchase of Continental Airlines combines the resources and capabilities of both firms to create the world's largest airline. The newly formed company is an example of a ____.
2. Vertical merger
3. Joint venture
4. Horizontal merger
5. Conglomerate merger

1. Ben is the owner of a small mushroom farm in Pennsylvania. Ben would like to join with other growers to create an organization that will promote and distribute mushrooms. The form of ownership that would be most suited for the growers is the ______.
2. Cooperative
3. Government-owned collective
4. Open corporation
5. Joint venture

1. Jada is opening her own bakery. Jada is an example of a(n) ______.
2. Manager
3. Entrepreneur
4. Minority executive
5. Venture capitalist
6. Frank and Evelyn had an idea for a different type of ice cream. They struggled to open their own small business, and later, to expand production and distribution. Their products are distributed nationwide and their sales continue to increase. Franz and Arlene are examples of ______.
7. Classic entrepreneurs
8. Serial entrepreneurs
9. Social entrepreneurs
10. Change agents

1. After starting a web design company while still in college, Rodrigo sold the company after graduation. He then opened a computer repair shop; and most recently, he has started a marketing firm that specializes in social media. Rodrigo is an example of a(n):
2. Classic entrepreneur.
3. Social entrepreneur.
4. Serial entrepreneur.
5. Lifestyle entrepreneur.

1. Which of the following has contributed the LEAST to the boom in entrepreneurship?
2. Information technology
3. Demographic and economic trends
4. Education
5. The rise of service industries

1. All of the following are important characteristics of entrepreneurs EXCEPT:
2. Tolerance for failure.
3. Internal locus of control.
4. Dependence on others.
5. Creativity.

1. All of the following are major advantages of buying an existing business over starting a new business EXCEPT:
2. Less risk is involved.
3. Product or service is known in the marketplace.
4. Obtaining financing is often harder.
5. Existing suppliers and employees are in place.

1. Kayla is opening a home health care business that she knows will do well in her community based on prior research. Although she must repay borrowed funds, Kayla chooses ______to maintain complete control over the business without having to answer to investors or partners.
2. debt financing
3. venture financing
4. sole proprietor financing
5. equity financing

1. Michael is a successful financial advisor looking to invest money directly into a new consulting business in return for equity in the company. Michael is an example of a(n) ______.
2. Serial entrepreneur
3. Venture capitalist
4. Angel investor
5. Intrapreneur

1. _____ are specific geographic areas designated for economic revitalization.
2. Economic stimulus zones
3. Enterprise zones
4. Investor zones
5. Commerce areas

1. ______innovate within an organization and participate in programs aimed to increase creativity within the company, such as ______.
2. Intrapreneurs; incubators
3. Entrepreneurs; pacing programs
4. Intrapreneurs; venture capitalism
5. Intrapreneurs; skunkworks

1. Jackie is a manager who spends most of her time in day-to-day decisions assigning non-managerial employees to specific jobs. Jackie is considered a ______manager.
2. Staff
3. Supervisory
4. Mid-level
5. Technical

1. Which of the four functions of management creates a well-designed road map of the actions needed to lead a company forward?
2. organizing
3. directing
4. controlling
5. planning

1. Kiki strongly believes that college students need credit counseling, so she begins a not-for-profit organization devoted to this need. Kiki is exhibiting ______.
2. Strategic planning
3. The organizing function of management
4. Vision
5. Strategic management

1. Which type of planning determines the primary objectives of an organization, and then acts and allocates resources to achieve those objectives?
2. tactical planning
3. strategic planning
4. contingency planning
5. operational planning

1. Which of the following components to the SWOT analysis are both internal to the organization?
2. Strengths; Threats
3. Opportunities; Weaknesses
4. Strengths; Weaknesses
5. Opportunities; Threats

1. McDonald’s has decided to add a pork sandwich to its menu. This is an example of a ______.
2. Contingency plan
3. Line organization
4. Non-programmed decision
5. Programmed decision

1. Autocratic leaders have all of the following characteristics EXCEPT ______.
2. Concentration of power with the manager
3. Two-way communication
4. Decisions are made by the manager with little to no consultation from subordinates
5. Employees are closely supervised

1. Hewlett Packard (HP) is subdivided by its different lines (such as laptops, desktops, mobile devices, printers, and servers). HP is departmentalized by ______.
2. process
3. customer
4. function
5. product

1. A company that is based on a direct flow of authority from the top executive to subordinates is known as a ______organization.
2. functional
3. line
4. matrix
5. line-and-staff

1. A company that retains decision making at the top is known as:
2. independent
3. autocratic
4. centralized
5. programmed

1. All of the following are core responsibilities of human resource managers EXCEPT ______.
2. employee recruitment
3. company budget forecasts
4. employee compensation and benefits
5. employee training and performance evaluation

1. Robert is a middle manager for All Dogs Food Co. He has requested an evaluation by a panel to include coworkers, superiors, subordinates, and several of the company’s clients. This type of evaluation is called a ______.
2. management development program
3. Professional Analysis, Inc. (PAI) review
4. status performance appraisal
5. 360-degree performance review

1. Most companies base their compensation policies on all of the following factors EXCEPT ______.
2. government legislation
3. cost of living
4. worker’s previous salary
5. worker productivity

1. Gain sharing is an employee benefit that provides ______.
2. increased stock options if the company is doing well
3. bonuses for recruiting new employees for needed positions
4. bonuses based on surpassing performance goals
5. salary increases based on learning new job skills

1. All of the following are examples of flexible working arrangements EXCEPT ______.
2. paid time off
3. 401(k) plans
4. compressed workweeks
5. job sharing plans

1. Rose was recently let go from her position at an insurance agency as a result of downsizing. This is an example of ______.
2. voluntary separation
3. voluntary turnover
4. involuntary turnover
5. involuntary separation

1. Robert’s company is no longer hiring for the position because they contracted with an outside business to provide technical and computer support. This is an example of ______.
2. downsizing
3. outsourcing
4. offshoring
5. restructuring the organization

1. A need produces ______, which leads to ______.
2. motivation; goal-directed behavior
3. goal-directed behavior; rewards
4. responsibility; satisfaction
5. stress-directed behavior; motivation

1. Joanne is the captain of her college basketball team. Her long-term goal is to be named to the All American women’s basketball team. Joanne is motivated by ______.
2. esteem needs
3. social needs
4. self-actualization needs
5. physiological needs

1. David is the head chef in a restaurant and has decided to increase the number of tasks performed by the kitchen staff. The added tasks do not result in increased challenge or authority. David’s efforts are called job ______.
2. enrichment
3. sharing
4. enlargement
5. management

1. All of the following are used to empower employees EXCEPT ______.
2. sharing company information
3. giving them decision-making authority about hiring decisions
4. allowing a team the final say in the logo’s colors
5. giving them more tasks at the same level they are already in

1. Jahn is a member of a semi-permanent team that performs the day-to-day functions of the organization. Jahn is a member of a(n) ______team.
2. self-managed
3. work
4. problem-solving
5. cross-functional

1. Which stage of team development is marked by conflicts over the team's mission and the roles of team members?
2. forming stage
3. norming stage
4. storming stage
5. performing stage

1. Ingrid’s team is engaged in problem solving and appears focused on accomplishing tasks. Ingrid's team is likely in which stage?
2. forming stage
3. norming stage
4. storming stage
5. performing stage

1. Countries like the United States which tend to rely on explicit written and verbal messages are considered ______cultures
2. high-context
3. low-context
4. external
5. diverse

1. William is listening to one of his fellow team members speak at a meeting. He believes she is just trying to get the team leader to adopt her idea. William is being a(n) ______listener.
2. offensive
3. cynical
4. polite
5. active
6. Which of the following is considered an upward communication channel?
7. posting notices on bulletin boards
8. giving employees policy manuals
9. completing an employee survey
10. reporting news in company newsletters

1. Steve and Renee are city council members who vehemently disagree over a new zoning ordinance. Their arguments have become personal, and other council members are irritated and avoiding meetings. Steve and Renee need to resolve their ______conflict.
2. mutual
3. affective
4. internal
5. cognitive

1. Under ______, employees receive stock shares or the value of the stock upon retiring or leaving the company.
2. stock certificates
3. treasury bills
4. stock options
5. Employee Stock Ownership Plans (ESOPs)

1. During the meeting with the salesperson, Mary was hanging on every word, eager to find some sort of sign that the salesperson was not being honest with her. Mary was engaged in:
2. Offensive Listening
3. Cynical listening
4. Active listening
5. Passive listening

Extra Credit Question (Possible 5 points):

Do a SWOT analysis for Starbucks Corporation.