Quiz 16: Professional-Small-Business-Management

All businesses must be managed or they will cease to exist.

The four functions of management are planning,leading,organizing,and controlling.

Management is getting things done through available resources.

More time will be spent by the business owner performing the basic tasks of running the business,such as cleaning machinery,as the business is beginning than will occur later in the life cycle of the business.

The four management functions of planning,organizing,leading,and controlling are continuous and interrelated.

The negotiator role of managing an organization involves continuously going to bat for the resources needed for the success of the company.

Managers tend to work on a wide variety of activities that are brief and have little continuity throughout an eight-hour work day.

Managers have no regular duties that must be performed throughout the day.

Managers are people who must depend on judgment and intuition more than they depend on technology.

Effectiveness and efficiency,defined,are interchangeable words.

Growth is a natural,usually desirable,consequence of being in business.

Growing businesses do not necessarily need changes in management techniques.

A growing business will experience five different stages of growth.

The distinguishing characteristic of the existence stage of growth is that the business owner is running the business alone.

The distinguishing characteristic of the second stage of growth is that the key problem shifts to cash flow.

The distinguishing characteristic of the third stage (the success-disengagement stage)of growth is that the business owner is removing a level of supervision.

The distinguishing characteristic of the take-off stage of growth is that the business has been reduced to a single department with one supervisor.

The greatest concerns in the resource maturity stage are to consolidate and control the finances generated by rapid growth.

The takeoff stage of small business growth is the stage that all business owners should aspire to reach rapidly and maintain indefinitely.

When transitioning a small business to professional management,it is important to avoid delegation.

One attribute of a professionally managed small business is that it plans and manages growth.

A NFIB survey shows that "poor earnings" are the most important problem facing small business owners.

Your three broad choices for exit strategy include sell,merge,or close.

When developing an exit strategy for a current business,it is important to rely on research and analysis and avoid following instincts.

Small businesses need managers who are also leaders.

According to Jim Kouzes,president of Tom Peters Group/Learning Systems,credibility is the major foundation of small business leadership.

Leadership abilities are not necessary for small business owners since they do not work closely with people.

Leadership is the process of directing and influencing the actions of members within a group.

Vision is having a written plan of where the business is headed in the future.

"Social Media Do's and Don'ts" were covered on Page 418 of the text.The rules were adapted from IBM's policy.

The art of negotiation is really more important for large businesses than small ones.

Skillful negotiators are better at talking than listening.

In all business negotiations,the goal for each party should be win-lose.

Delegation empowers employees,meaning that it increases their involvement in their work.

Motivation is the reason an individual takes an action in satisfying some need.

Maslow's hierarchy of needs states that people have a common set of universal needs.

The lowest needs in Maslow's hierarchy are psychological needs.

The lowest needs according to Maslow's hierarchy are physiological needs.

Items that cause people to feel positive about their job are known as motivators according to Herzberg's motivation-hygiene theory.

Items that people expect on the job are known as hygiene factors according to Herzberg's motivation-hygiene theory.

According to Herzberg,if a lower level need arises for an employee,the employee will still be able to concentrate on higher level needs.

Money always motivates people.

Fear always motivates people.

Management is the efficient and effective use of resources.

Parkinson's law states that "anything that can go wrong,will go wrong."

The negative side of stress,called distress,is caused by uncertain outcome and importance to the individual.

For a situation to create eustress for a person,two conditions are necessary: The outcome must be uncertain,and it must be a matter of importance to the person.

A person's physical condition affects his response in stressful situations.

According to the Chapter 16 opener,the best skill for managers to possess is to be A) Tech savvy B) A jack-of-all-trades C) Strong negotiators D) Flexible

At work on a typical day,Kathleen,a sales manager,spends a portion of her day talking to customers and suppliers,but she also organizes work activities and leads a team of assistants.She has to ensure that quality standards are being met within the company.This example demonstrates that A) The functions of management are continuous and interrelated B) Leadership is the most important function of management C) Controlling is the most important function of management D) The functions of management need to be delegated to a large pool of employees

Organizing involves all but which of the following? A) Assembling financial resources B) Assembling human resources C) Assembling materials D) Assembling invoices

Leading,defined,is the process of getting the most ____ possible from the available ____. A) Work,employees B) Output,resources C) Profit,resources D) Resources,suppliers

Controlling,defined,is comparing what was initially ____ with what was actually ____. A) Received,bought B) Ordered,received C) Planned,accomplished D) Accepted,defined

Planning is ____ what to do. A) Thinking B) Pretending C) Organizing D) Determining

Management can be described as planning,leading,organizing,and controlling in order to achieve the ____ of the organization. A) Needs B) Goals C) Debts D) Financial well-being

Which of the following people were responsible for first articulating the four functions of management in 1916? A) Henry Mintzberg B) Henri Fayol C) Henry Ford D) Frederick Herzberg

From the Chapter 16 Manager's Notes entitled "Help Me,Help Me,Help Me" what is a portal? A) A round window in the side of a ship B) A pathway to a browser C) A gateway to a wide variety of information D) An online customer service provider

Efficiency,defined,is A) Making a high profit with low expenses B) Using all available resources to produce a high amount of output C) Accomplishing goals and tasks while making the most of the resources available D) Doing all tasks the right way the first time

Effectiveness,defined,is achieving which of the following? A) Stated goals B) High profit C) Low expenses D) Growth

Within the ____ role of management,the manager needs to determine the direction of the company. A) Entrepreneur B) Resource allocator C) Monitor D) Leader

One of Brandon's primary roles on the production line is to continuously determine if quality control standards are being met.This relates to which managerial role? A) Entrepreneur B) Resource allocator C) Monitor D) Leader

Within the ____ role,the manager needs to identify fresh new ideas and innovations. A) Entrepreneur B) Resource allocator C) Monitor D) Leader

Connie's consulting business has grown steadily over the course of four years.However,Connie recently has found that some of the jobs are not being completed on time,and there is more stress due to a greater reliance on partners and employees.Connie is most likely experiencing which of these? A) Owner's fatigue B) Growing pains C) Exit strategy issues D) Resource maturity

Signs of growing pains include all but which of the following? A) Jobs not delivered on time B) Costs that rise out of control C) A feeling that chaos is ruling the business D) Inadequate building size

The ____ stage of growth involves the owner running the business alone. A) Existence B) Survival C) Success-disengagement D) Resource-maturity

The ____ stage of growth involves the owner hiring other people. A) Existence B) Solo C) Survival D) Resource-maturity

The ____ stage of growth involves the owner adding levels of supervision to lead departments or divisions. A) Formal organization B) Success-disengagement C) Take-off D) Resource-maturity

Gina's Pizza has been in operation for three years,and the business has recently expanded to include multiple locations with a head manager at each location.Gina's Pizza is most likely in which business growth stage? A) Survival B) Success C) Takeoff D) Resource maturity

During the ____ stage of business growth,the greatest concerns are to consolidate and control the finances and to professionalize the organization. A) Survival B) Success C) Takeoff D) Resource maturity

The best stage of growth is ____. A) Existence B) Success-disengagement C) Take-off D) No single stage is better than the other stages

According to an NFIB study,small business owners cited what as the most important problem that they face? A) Energy prices B) Cost of health insurance C) Governmental paperwork D) Locating qualified employees

Which of the following was not listed as a possible small business exit strategy? A) Turn into a large business B) Sell via an ESOP C) Sell to a strategic buyer D) Take the company public

Wendy has recently been approached by a Rita to sell her art gallery.Rita has been in the art business for over twenty years,but has never owned her own gallery.She tells Wendy that this has been one of her dreams since she was young.If Wendy sells the gallery to Rita,which exit option will she adopt? A) Take the company public B) Sell to a strategic buyer C) Sell to a financial buyer D) Sell to a key employee or group of employees

Bob Boyd is developing an exit strategy for his sporting goods business,since he plans to retire within the next three years.Bob knows that one of the company's greatest strengths is that there is a core group of motivated employees who have been with the company for years.Based on this information,which exit strategy would be the best option for Bob? A) Sell to a strategic buyer B) Sell to a key employee or group of employees C) Take the company public D) Undertake a planned liquidation

The ____ approach to determining a company's worth involves looking at what others have paid for comparable businesses. A) Asset-based B) Income C) Market D) Liability-based

The ____ approach to determining a company's worth involves the cost to recreate the operating assets of the business. A) Asset-based B) Income C) Market D) Liability-based

According to Jim Kouzes,the foundation of small business leadership is A) Being authoritative B) Avoiding stressful situations C) Establishing a vision D) Being credible

According to BusinessWeek Online,which of the following is a leadership trend for 2010? A) An eye for the past B) Maintaining a more focused view C) Practicing social responsibility D) Turning to more experienced workers

Sandy owns and manages a retail establishment located near a busy waterfront.Her employees often describe Sandy as someone who believes in herself and is committed to accomplishing the company's vision.Sandy's style of leading can best be described by which leadership attribute? A) Communication ability B) Self-confidence and dependability C) Adaptability D) Creative ability

The person with a vision that cannot be put into action is a/an ____. A) Leader B) Follower C) Dreamer D) Employee

Vision can be defined as ____ of where the business is headed. A) Having a written plan B) Having a mental picture C) Having no clue D) Having goals

Communication,vision,creative ability,and ability to take action are all characteristics of a A) Manager B) Leader C) Small business owner D) President

Managers must occasionally make difficult choices or changes.The ability to make these choices or changes is known as A) An unsympathetic attitude B) Strength C) Toughness D) An uncaring attitude toward employees

What parable of negotiation was cited as a simplistic example of negotiation in Chapter 16? A) Parable of the slingshot B) Parable of the watermelon C) Parable of the orange D) Parable of the camping trip

____ can be defined as the communication process in which two or more people come together to seek mutual agreement about an issue. A) Negotiation B) Delegation C) Vision D) Leadership

Which of the following is good advice for engaging in the art of negotiation? A) Be aggressive B) The goal should be win-lose C) Spend more time talking and less time listening D) Let the other side make the first offer

Delegation,defined,is granting authority and responsibility for a specific task to A) Another member of the organization B) The boss C) A supervisor D) Top management

All but which of the following is a reason delegation is so difficult? A) Giving up control is difficult. B) Subordinates are unwilling or unable to accept responsibility. C) Owners feel that by making the decisions themselves,they are protecting their investment. D) Owners do not like to make decisions.

What is often the result when small business managers do not delegate authority and responsibility? A) Productivity increases B) Employees stop trying or leave C) Motivation goes up D) Employees want to negotiate

The reason that an individual takes action in satisfying some need can be referred to as which of the following? A) Stimulation B) Self-actualization C) Motivation D) Delegation

Maslow's hierarchy of needs theory ranks the highest level of needs as A) Physiological B) Safety and security C) Esteem D) Self-actualization

Physiological needs,according to Maslow's hierarchy of needs theory,include which of the following? A) Food and water B) Safety C) Security D) Esteem

Maslow's hierarchy of needs has five levels.These levels,in order from lowest level to highest level,are which of the following? A) Self-actualization,esteem,social,safety and security,physiological B) Esteem,self-actualization,social,safety and security,physiological C) Physiological,safety and security,social,esteem,self-actualization D) Physiological,safety and security,esteem,social,self-actualization

All of the following provide intrinsic rewards to workers on the job except which of these? A) Achievement B) Recognition C) Annual bonus D) Responsibility

Herzberg called items that make people feel positive about their jobs ____ and items that people expect in their jobs ____. A) Motivators,negative factors B) Negative factors,motivators C) Motivators,hygiene factors D) Hygiene factors,motivators

All but which of the following myths about motivation were listed in the text? A) Satisfied workers are productive workers. B) Some employees do not need motivation. C) Attempts to motivate always increase performance and productivity. D) Money is not a motivator.

How much does employee theft and fraud cost employers each year? A) $50 million B) No way to tell C) $2 billion D) $400 billion

Which of the following was listed as the most precious and limited resource of a small business? A) Money B) Time C) Quality employees D) Location

According to the U.S.Chamber of Commerce,employee theft accounts for ____ of gross sales each year. A) Less than one percent B) 1-2 percent C) Six percent D) Ten percent

All but which of the following is an indicator of a time management problem? A) Constantly working but still missing deadlines B) Fatigued,both mentally and physically C) Consistently behind in responsibilities D) Slow but quality workmanship

An emotional state that occurs in response to demands that may come from internal or external sources is known as A) Stress B) Distress C) Confusion D) Fatigue

Paul and Wendy are planning their first family vacation to Walt Disney World.The planning experience has been challenging for them,but they are excited about the upcoming trip and are working efficiently to ensure that everything is planned accordingly.What type of stress are Paul and Wendy experiencing? A) Eustress B) Distress C) Role conflict stress D) Task overload stress

Role conflict can be defined as A) Being faced with a situation that presents divergent role expectations B) Not being sure where to start working C) Not being sure what to do in a certain situation D) Not knowing when to start working

Which one of the following is not a socially supportive environment? A) Church B) Clubs C) Family D) The college classroom

Task overload can be defined as which of the following? A) Not being sure where to start working B) More work expected from the employee than time permits C) Not being sure what to do with the time available D) Not being sure when to start working

Role ambiguity is A) Not being sure where to start working B) Being faced with a situation that presents divergent role expectations C) Not being sure what to do in a certain situation D) Not knowing when to start working

In Scenario 16-1 above,Larry remembers that leading is getting the most ____ possible from the available ____. A) Work,employees B) Output,resources C) Resources,suppliers D) Resources,profit

In Scenario 16-1 above,Larry also remembers that controlling is comparing what was initially ____ with what was actually ____. A) Received,bought B) Ordered,received C) Planned,accomplished D) Accepted,defined

In Scenario 16-1 above,for Larry,efficiency is when he A) Makes a high profit with low expenses B) Uses all available resources to produce a high amount of output C) Does all of his tasks the right way the first time D) Accomplishes his goals and tasks while making the most of the available resources

In Scenario 16-1 above,Larry knows that effectiveness from a manager's view means A) Achieving stated goals B) Achieving high profits C) Achieving low expenses D) Achieving business growth

In Scenario 16-1 above,Larry has had so much business lately that some of his orders are not being filled on time.His costs are also rising out of control and there is a feeling of chaos in his business.Larry is experiencing A) Growing sickness B) Growing pains C) Internal sickness D) Psychological disorders

In Scenario 16-2 above,Larry can remember when he was running the first pasta shop alone.At that point he was in the ____ stage of growth. A) Initial B) Existence C) Survival D) Success

In Scenario 16-2 above,when Larry hired his first employees,he went through the transition to enter the ____ stage of growth. A) Existence B) Survival C) Takeoff D) Success

In Scenario 16-2 above,Larry has shown that he is an excellent manager.However,judging by the success of his pasta shops,Larry is probably also an excellent ____ since he has directed and influenced his employees into a highly successful business. A) Follower B) Dreamer C) Leader D) Supervisor

Compare and contrast two of the four functions of management.

Describe at least three roles that,according to Mintzberg,are needed by managers to effectively plan,organize,lead,and control business operations.

Discuss three of the five stages of business growth.

Discuss three attributes that business leaders will need in the coming decade.

Provide at least three tips for managing time effectively.

Compare and contrast Maslow's hierarchy of needs and Herzberg's motivation-hygiene theory.

Employee theft is a serious problem for small business owners.Discuss how you would try to minimize it in your business.