BUS 20 -EXAM II REVIEW Ch 5-9

Student: ___________________________________________________________________________ 1. Another often-used name for a stockholder is A. unit holder. B. percentage holder. C. value holder. D. vote holder. E. shareholder.

2. Effective implementation of a major decision requires A. perseverance. B. luck. C. directing. D. planning. E. controlling.

3. The money used to start a business and keep it running is also called A. capital. B. trade. C. currency. D. leverage. E. stock.

4. Top managers spend most of their time performing which of the following management functions? A. Directing B. Controlling C. Organizing D. Staffing E. Planning

5. Which of the following began as a small business based on the entrepreneurial vision of its founders? A. Procter & Gamble B. Dell Computers C. McDonald's D. Federal Express E. All of the above

6. Which of the following is not a common cause of small business failure? A. Poor business concept B. Managerial inexperience C. Entrepreneurial vision D. Inability to cope with growth E. Undercapitalization

7. The lack of funds to operate a business normally is called A. discounting. B. creative financing. C. financial pessimism. D. undercapitalization. E. overcapitalization.

8. The majority of all new jobs created in the United States in recent years were generated by A. medium businesses. B. small businesses. C. large businesses. D. corporations. E. state governments.

9. The income earned by sole proprietorships is A. taxed twice. B. not taxable. C. taxed as personal income. D. too high. E. audited less often than others.

10. Charles has been asked to join a new partnership that is developing an office park. He does not want to be liable for the firm's debts if the project should fail. He could still participate as a A. general partner. B. limited partner. C. silent partner. D. working partner. E. contributor.

11. Joint ventures are popular in situations that call for A. reduced regulations. B. cooperation among farmers or ranchers. C. unlimited liability. D. large investments. E. small investments.

12. Which characteristic of a sole proprietorship can be considered both an advantage and a disadvantage? A. Taxation B. Fund sources C. Liability D. Continuity E. Secrecy

13. _____ make decisions about the use of an organization's resources and are concerned with planning, organizing, leading, and controlling the organization's activities. A. Managers B. Shareholders C. Employees D. Consumers E. Suppliers

14. The type of planning conducted on a short-term basis to implement activities and objectives is called A. strategic. B. static. C. tactical. D. comprehensive. E. timely.

15. Selecting the best option in the decision-making process is A. simply a matter of plugging variables into a formula. B. often objective. C. often subjective. D. easy. E. all of the above.

16. Multidivisional structures A. are temporary. B. organize departments into larger divisions, often based on geography, product, and/or customer. C. bring together specialists from a variety of areas to work on a single project. D. make slower decisions. E. are less innovative.

17. Project teams A. are permanent, formal groups. B. are composed of individuals from one functional area. C. never last for more than six months. D. have total control of a specific work project. E. solve specific quality problems.

18. How many subordinates should report to a manager? A. 6 B. 4 C. 15 D. There is no simple answer. E. None of the above.

19. All of the following are approaches to departmentalization except A. function. B. product. C. geographic region. D. customer. E. line. 20. An organization's shared values, beliefs, traditions, philosophies, rules, and role models for behavior represent its A. formal organization. B. information organization. C. organizational culture. D. grapevine. E. organizational manual. 21. Operations management includes responsibility for A. customer service. B. inputs and outputs. C. product development. D. pricing. E. promotion. 22. Quality A. is a concern only for manufacturing companies. B. is a concern only for service providers. C. refers to the price charged for a product. D. is a critical element of operations management. E. depends on employees' perceptions. 23. A company performing large, complex tasks such as construction or exploration is called a(n) A. continuous manufacturing organization. B. intermittent organization. C. project organization. D. construction company. E. oil company. 24. A planning system that schedules the precise quantity of materials needed for production is called A. just-in-time management. B. material-requirements planning. C. economic order quantities. D. flexible scheduling. E. cycle time management.

25. The term standardization means A. ensuring that every product has the same quality. B. that similar products, manufactured by different companies, all operate in the same manner. C. making identical, interchangeable components or products. D. making the exact product the customer wants. E. all of the above.

BUS 20 -EXAM II REVIEW Ch 5-9 Key

1. (p. 155) E 2. (p. 223) D 3. (p. 186) A 4. (p. 211) E 5. (p. 175) E 6. (p. 182-185) C 7. (p. 183-184) D 8. (p. 176) B 9. (p. 147) C 10. (p. 149) B 11. (p. 162) D 12. (p. 147) A 13. (p. 202) A 14. (p. 205) C 15. (p. 223) C 16. (p. 247) B 17. (p. 251) D 18. (p. 244) D 19. (p. 239-242) E 20. (p. 234) C 21. (p. 265) B 22. (p. 283) D 23. (p. 274) C 24. (p. 280) B 25. (p. 271) C

BUS 20 -EXAM II REVIEW Ch 5-9 Summary

Category AACSB: Communication AACSB: Diversity AACSB: Reflective Thinking Bloom's Taxonomy: Comprehensio n Bloom's Taxonomy: Knowledge Difficulty: Easy Difficulty: Hard Difficulty: Medium Ferrell - Chapter 05 Ferrell - Chapter 06 Ferrell - Chapter 07 Ferrell - Chapter 08 Ferrell - Chapter 09 Learning Objective: 1 Learning Objective: 2 Learning Objective: 3 Learning Objective: 4 Learning Objective: 5 # of Questio ns 1 1 23 2 23 9 1 15 5 5 5 5 5 6 4 6 4 5