What are the two primary concerns of a small business entrepreneur when starting a business?

Planning and financing the business

Which of the following is not a common reason for small business failures?

Keeping and maintaining complete and accurate books and records

Which of the following statements would not be considered a benefit of a socialist economic system?

It maximizes the incentives for entrepreneurs to innovate and create wealth

In a line-and-staff manufacturing organization structure, which of the following personnel would be considered a staff m

Director of Information Technology

The job of operations management consists of all of the activities involved in:

Coordinating efforts, tasks, and resources

Which of the following is not a reason that entrepreneurs are willing to accept the risks of entrepreneurship?

The opportunity to spend more time with friends and family

The European Union is an example of which of the following?

A common market, or trading bloc

Which of the following describes a business cycle?

Periods of increasing and decreasing real GDP.

Which of the following are a disadvantage of departmentalization?

Isolation within departments may lead to poor communication

Which of the following would likely not be considered an advantage of being an entrepreneur as compared to an employee?

The risk of losing all time and money invested

________ is an inventory strategy that companies employ to increase efficiency and decrease waste by receiving goods onl

Just-in-time (JIT) inventory control

Which of the following is not one of the four basic rights of citizens under a capitalist economic system?

The right to a safe and healthy environment.

In order to be called a multinational company, what must be present?

A manufacturing capacity or some other physical presence in two or more dif

One of the key factors that influence facility location are:

proximity to customers, suppliers and skilled labor

Which of the following economic and governmental policies would promote business formation and economic growth?

Minimize spending and keep taxes and regulations to a minimum.

Which of the following is the primary advantage small businesses have over large corporations?

Ability to respond quickly to opportunities

studbud

Duplicate of Business 1

95 termsStudBud Administration68 plays

Imported from external platform

Flashcards95 cardsFPractice quizPHost liveL

Questions 95

Answers

1
Which of the following is a drawback for an entrepreneur setting up a business as a sole proprietorship?
Limited liability
Profit is shared
Unlimited liability
Financial accounts are kept private
2
Which of the following functions of management would staffing an organization fall under?
Planning
Organizing
Leading
Controlling
3
Which of the following strategies for reaching global markets is generally going to involve the greatest amount of risk
Franchising
Licensing
Foreign direct investment
Contract manufacturing
4
Which of the following stakeholders is corporate social responsibility concerned with?
Investors
Customers
Employees
All of the above
5
Which of the following are ways that governments can encourage entrepreneurship?
Implement policies that draw more entrepreneurial immigrants
Establish incubator that offer affordable office space and other essential
All of the choices
Create enterprise zones with lower taxes and government support
6
Fiscal policy is the management of the money supply and interest rates by the Federal Reserve Bank.
True
False
7
A multinational company updates it marketing brochures to be printed in the multiple languages that are spoken within th
Economic
Regulatory
None of the above
Sociocultural
8
What are the two primary concerns of a small business entrepreneur when starting a business?
Managing employees and keeping accurate records
Planning and marketing the business to customers
Marketing the business to customers and managing employees
Planning and financing the business
9
Max Weber expanded on Henri Fayol's principles of organization by emphasizing:
A flat organizational structure
Informal rules and guidelines
The empowerment of employees to make their own decisions
None of the choices
10
Which of the following is not a common reason for small business failures?
Going into business with little or no experience
Keeping and maintaining complete and accurate books and records
Starting with too little capital
Underestimating how much time it will take to build a market
11
Which of the following statements would not be considered a benefit of a socialist economic system?
It promotes equality and equity among its citizens.
It maximizes the incentives for entrepreneurs to innovate and create wealth
Provides citizens with generous government programs.
All of the above.
12
In a line-and-staff manufacturing organization structure, which of the following personnel would be considered a staff m
Distribution worker
Assembly worker
Plant manager
Director of Information Technology
13
If a single entrepreneur has the funds necessary to operate their business without assistance from others and wants a bu
Sole proprietorship
Limited liability company
Corporation
Limited partnership
14
The job of operations management consists of all of the activities involved in:
Creating deal structures for customers to buy your product
Marketing to end customers
Creating efficient sales pipelines
Coordinating efforts, tasks, and resources
15
A company that assigns responsibility and authority to production, marketing, finance, human resources, and accounting
Geographic location
Function
Product
Customer group
16
Which of the following is not a reason that entrepreneurs are willing to accept the risks of entrepreneurship?
The opportunity to generate profits and wealth for oneself and their family
The ability to work independently and be responsible for one’s own destiny
None of the choices
The opportunity to spend more time with friends and family
17
The European Union is an example of which of the following?
A sovereign nation
A multinational corporation
None of the above
A common market, or trading bloc
18
Which of the following describes a business cycle?
Regular growth rate of consumer spending.
Inflationary pressures.
Irregular division of labor
Periods of increasing and decreasing real GDP.
19
Which of the following forms of planning would include the setting of broad, long-range goals by top managers?
Strategic Planning
Operational Planning
Contingency Planning
Tactical Planning
20
Which of the following forms of business would be the easiest to terminate?
S Corporation
General Partnership
Corporation
Sole proprietorship
21
The value of one nation's currency in comparison to another nation's currency does not fluctuate over time.
True
False
22
Which of the following is not one of the three levels of management in a corporate hierarchy?
Supervisory management
Top management
Vendor management
Middle management
23
Which of the following are a disadvantage of departmentalization?
None of the choices
Employees can develop in depth skills in one specific area
Top management can easily direct and control various departments' activitie
Isolation within departments may lead to poor communication
24
The task of creating budgets and comparing them against actual results would fall under which of the following managemen
Leading
Organizing
Planning
Controlling
25
The preparation of a SWOT analysis would be part of which of the four management functions?
Leading
Financing
Planning
Organizing
26
Which of the following would likely not be considered an advantage of being an entrepreneur as compared to an employee?
The risk of losing all time and money invested
The ability to create significant wealth
None of the above
Freedom, control, and independence to make your own decisions
27
Which of the following is not one of the four functions of the management process?
Planning
Financing
Organizing
Leading
28
An automobile manufacturer combining with a tire manufacturer is an example of which of the following types of transacti
Efficient reorganization
Horizontal merger
None do the choices
Vertical merger
29
________ is an inventory strategy that companies employ to increase efficiency and decrease waste by receiving goods onl
Economic order quantity (EOQ)
Product layout
Material-requirements planning (MRP)
Just-in-time (JIT) inventory control
30
The most important step in starting a business is preparation.
False
True
31
Which of the following is not one of the four basic rights of citizens under a capitalist economic system?
The right to own a business and keep all that business's profits.
The right to freedom of choice.
The right to own private property.
The right to a safe and healthy environment.
32
To identify areas for improvement, companies use a technique called ________, which monitors quality by testing samples
SWOT analysis
PESTEL analysis
statistical process control
best out of three practice
33
Approximately what percentage of new jobs created each year are generated by small businesses?
Between 80 to 100
Less than 40
Between 60 to 80
Between 40 to 60
34
In a line-and-staff organizational structure, staff personnel have the formal authority to make policy decisions.
True
False
35
Which of the following leadership styles would be most effective in emergency situations?
Democratic leadership
Autocratic leadership
Participative leadership
Free-rein leadership
36
An increased standard of living among members of society as a result of entrepreneurial activity always results in a cor
True
False
37
Which of the following is an economic and political system in which the government makes almost all economic decisions a
Communism
Capitalism
None of the above
Socialism
38
A trade surplus represents an unfavorable balance of trade with other nations and occurs when the value of a country's
True
False
39
In order to be called a multinational company, what must be present?
A centralized management structure in the home country.
None of the above
Products or services that are sold in two or more different countries.
A manufacturing capacity or some other physical presence in two or more dif
40
One of the key factors that influence facility location are:
what are the products that will be available
what the building design will look like
if there is space available to expand the facility in the future
proximity to customers, suppliers and skilled labor
41
Which of the following statements are true of organizational leaders?
They must promote an ethical culture throughout the organization
All of the choices
They must communicate the organizational vision and rally others around tha
They must be willing to embrace change.
42
Which of the following nations is the largest exporting nation in the world?
Germany
China
Canada
United States
43
Which of the following economic and governmental policies would promote business formation and economic growth?
Restrict the ownership of businesses to certain individuals or institutions
Reduce access to education and training
Minimize spending and keep taxes and regulations to a minimum.
Increase interest rates
44
The outcome of a service industry operation is generally a customer ________.
reward
experience
tangible good
activity
45
A PERT chart identifies the ________, which is the sequence of activities that will entail the greatest amount of time.
lag time
price of goods
critical path
outcome of the process
46
Which of the following is the primary advantage small businesses have over large corporations?
Ability to respond quickly to opportunities
More efficient operations
Access to more capital and lower expenses
None of the choices
47
Which of the following would be considered macroeconomic indicators of the health of a nation’s economy?
Unemployment rates
Gross domestic product (GDP)
Inflation
All of the above
48
Effectively managing an organization takes the same set of skills that effectively leading an organization does.
True
False
49
_{An airplane manufacturer assembles a plane in one location and the workers and equipment go to the airplane when they ne}
fixed-position layout
cellular layout
process layout
product layout
50
The flatter the organization, the broader the span of control.
False
True
51
Which of the following leadership styles typically leads to the highest level of job satisfaction among employees?
Autocratic leadership
Free-rein leadership
None of the choices
Participative leadership
52
Profit is defined as the gross amount of money a business takes in during a given period by selling goods and services.
True
False
53
Which of the following is an advantage of a broad span of control within an organization?
Closer supervision of employees
Faster decision making
All of the choices
More opportunities for advancement for employees
54
Successful entrepreneurs tend to have all the following characteristics EXCEPT:
Hesitant
Goal oriented
Energetic
Creative
55
According to the law of demand, assuming other factors are held constant:
as the demand for milk increases, the price of milk will remain unchanged.
as the price of milk increases, the quantity of milk demanded will increase
as the demand for milk decreases the price of milk will remain unchanged.
as the price of milk decreases, the quantity of milk demanded will increase
56
Which of the following economists is considered to be the father of modern economics?
Milton Friedman
Thomas Malthus
None of the above
Adam Smith
57
Swisher cigar factory makes little cigars and big cigars on the same machine. This is an example of using:
Computer-integrated manufacturing (CIM)
Computer-aided design (CAD)
Computer-aided manufacturing (CAM)
Flexible Manufacturing System (FMS)
58
Which of the following statements is a disadvantage of a general partnership ?
Profits must be divided, which can cause conflict if the division is seen a
They can limit the personal liability of the owners
They can allow for shared management and provide access to a wider range of
They are easier to terminate than a sole proprietorship
59
Which of the following forms of business entity are not taxed separately from it’s owners?
All of the choices
General partnership
Sole proprietorship
Limited liability partnership
60
Which of the following groups are considered to be stakeholders of a business?
Bankers/Creditors
Employees
All of the above
Stockholders/Owners
61
Which of the following statements best describes one of the main arguments favoring expansion of U.S. businesses into gl
None of the above
The United States has a comparative advantage to sell those products that i
Employees in foreign countries are more productive than U.S. employees.
It is easier to conduct business in foreign countries as compared to the U.
62
A partnership ____________
Is the most common form of business ownership in the U.S.
Requires at least two owners
Limits the liability of the owners to the amount of money invested
Is funded through the sale of stock
63
Which of the following statements is not true of the Foreign Corrupt Practices Act?
It can potentially put U.S. businesses at competitive disadvantage to thei
It prohibits U.S. companies from bribing foreign officials to secure busine
Businesses in all nations are required to comply with the act
None of the above
64
Which of the following is not a step that U.S. businesses can implement to improve business ethics?
Provide training to mangers and others to consider the ethical implications
Communicate the ethics program to outsiders.
Require that top management adopt and support an explicit corporate code o
Develop, and require adherence to, aggressive financial goals and targets.
65
Ethics is only concerned with those behaviors that are legal in a society?
False
True
66
A material-requirements planning system is primarily intended to meet which of the following objectives:
Maintain the costs associated with the company
Maintain the operations department profit margin
Ensure that materials are available for production
Maintain the highest possible material and product levels in store
67
If an entrepreneur’s primary concern is avoiding double taxation of profits, which form of business entity would not be
All of the choices
Corporation
Sole proprietorship
General partnership
68
All members of a nation or society benefit equally from policies that promote free trade?
False
True
69
Mass produced products are:
Standardized
Semi-custom
Cheap
Unique
70
Which of the following statements best describes integrity based ethics codes?
None of the above
Integrity based ethics codes define the organization's guiding values, crea
The only goal of integrity based ethics codes is adherence to laws and regu
Integrity based ethics codes emphasize maintaining control and penalizing
71
The process of staffing an organization is only concerned with hiring employees.
False
True
72
Ethnocentricity involves an attitude that all cultures are created equal.
True
False
73
Which of the following are not one of Henri Fayol's principles of organizational management?
All workers should know who they report to
Each workers should report to multiple bosses or managers
Functions should be divided into areas of specialization
There should be clear communication channels between workers and managers
74
Which of the following is an advantage of starting a franchise instead of another business venture?
Franchises allow their owners to have total control of the decisions impact
Franchises have a higher failure rate than other business ventures
Franchises are more profitable than original business concepts
Franchises give their owners access to an established business concept and
75
Which of the following statements is true of licensing, franchising, contract manufacturing, and foreign direct investme
All involve exporting a product made in the U.S.
All of the above.
All represent strategies that businesses can implement to access global mar
All strategies involve the same level of commitment, control, risk, and pro
76
Which of the following is the most restrictive form of trade protectionism?
None of the above
Import quotas
Tariffs
Embargoes
77
Microeconomics is a subset of the study of economics that focuses on the operation of a nation’s economy as a whole.
True
False
78
According to the law of supply, assuming other factors are held constant:
as the demand for milk decreases, the price of milk will also decrease.
as the price of milk increases, the quantity of milk supplied will decrease
as the supply for milk increases, the price of milk will also increase.
as the price of milk decreases, the quantity of milk supplied will decrease
79
ISO 9000 is a certification used by many companies for:
International quality management
International cost management
International ethics management
International environmental management
80
Which of the following is the least important skill for top managers to possess?
Technical Skills
Conceptual Skills
Planning Skills
Communication Skills
81
Which of the following is not a type of organizational structure?
Span of control
Matrix-Style
Line-and-Staff
Line
82
Which of the following statements best describes management's role in setting ethical standards?
Ethics are a personal matter and, therefore, management has no role in sett
Setting ethical standards begins with management who can help instill corpo
None of the above
Setting ethical standards begin with the employees who are most likely to i
83
According to Coca Cola, they strive to "refresh the world in mind, body, and spirit, to inspire moments of optimism and
None of the choices
A company's mission statement
A company's goals
A company's objectivess
84
What is the main difference between a matrix-style organization's structure and the use of cross-functional teams?
Cross-functional teams can produce creative solutions to product developmen
None of the choices
Cross-functional teams encourage interorganizational cooperation and teamwo
Under a matrix organizational structure teams only work together on a short
85
Which of the following is the most common source of funding or financing for a small business?
Bank loans
Angel investors
Venture capitalists
Personal savings
86
Which of the following parties are most likely to benefit from a weaker, or lower, value of the U.S. dollar?
U.S. export businesses
None of the above
A family taking a foreign vacation
U.S. import businesses
87
Which of the following is an advantage of a corporation as compared to other types of business entities?
None the choices
It provides the ability to raise large amounts of cash or capital by issuin
The profits of the corporation are subject to double taxation
It is relatively easy and cost effective to establish and maintain
88
Which of the following is an advantage of an organizational structure with centralized authority?
Higher employee morale
Faster decision making
Less empowerment of employees
More efficient operations
89
In a free market society, which statement best describes how prices are determined?
The market price is determined by the intersection, or equilibrium, of the
The market price is determined by the government to ensure all citizens hav
None of the above
The market price is determined by the producers of the product or service i
90
Often stakeholders of a business have competing concerns and priorities regarding the operations and activities of a bus
True
False
91
A hierarchical organization is one that has:
A high number of layers of management
Few managers
A large number of employees
Few layers of management
92
Which of the following factors of production is most important to wealth creation?
Entrepreneurship and the use of knowledge
Machinery
Land
Labor
93
Which of the following questions should you ask yourself when faced with an ethical dilemma?
Is my proposed solution legal?
All of the above
How will my proposed solution make me feel about myself?
Is my proposed solution balanced and am I acting fairly?
94
Which of the following statements best describes a drawback of using a joint venture to access global markets?
All members of the venture can share technology and risk
All members of the joint venture can share marketing efforts and management
None of the above
One of the members of the joint venture can appropriate the others business
95
If an entrepreneur’s primary concern is limiting personal liability, which form of business entity would be most appropr
Sole proprietorship
Corporation
None of the choices
General Partnership

Duplicate of Business 1 Flashcards | StudBud