Deck 14: Professional Small Business Management

Question 1

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

Answer 1

B

Question 2

Within the ______ role, the manager needs to identify fresh new ideas and innovations.

A) entrepreneur
B) resource allocator
C) monitor
D) leader

Answer 2

A

Question 3

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

Answer 3

A

Question 4

Controlling, defined, is comparing what was initially ______ with what was actually ______.

A) received; bought
B) ordered; received
C) planned; accomplished
D) accepted; defined

Question 5

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

Question 6

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

Question 7

Organizing involves all but which of the following?

A) assembling financial resources
B) assembling human resources
C) assembling materials
D) assembling invoices

Question 8

The ______ stage of growth involves the owner hiring other people.

A) existence
B) solo
C) survival
D) resource maturity

Question 9

The ______ stage of growth involves the owner running the business alone.

A) existence
B) survival
C) success-disengagement
D) resource maturity

Question 10

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

Question 11

Planning is ______ what to do.

A) thinking
B) pretending
C) organizing
D) determining

Question 12

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

Question 13

Within the ______ role of management, the manager needs to determine the direction of the company.

A) entrepreneur
B) resource allocator
C) monitor
D) leader

Question 14

The ______ stage of growth involves the owner adding levels of supervision to lead departments or divisions.

A) formal organization
B) success-disengagement
C) takeoff
D) resource maturity

Question 15

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

Question 16

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

Question 17

Effectiveness, defined, is achieving which of the following?

A) stated goals
B) high profit
C) low expenses
D) growth

Question 18

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

Question 19

The best stage of growth is ______.

A) existence
B) success-disengagement
C) takeoff
D) no single stage is better than the other stages

Question 20

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

Question 21

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

Question 22

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) written and oral communication ability
B) self-confidence and dependability
C) adaptability
D) creative ability

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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, and physiological
B) esteem, self-actualization, social, safety and security, and physiological
C) physiological, safety and security, social, esteem, and self-actualization
D) physiological, safety and security, esteem, social, and self-actualization

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

Written and oral communication, vision, creative ability, and ability to take action are all characteristics of a ______.

A) manager
B) leader
C) small business owner
D) president

Question 33

______ 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

Question 34

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

Question 35

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

Question 36

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

Question 37

Maslow's hierarchy of needs theory ranks the highest level of needs as ______.

A) physiological
B) safety and security
C) esteem
D) self-actualization

Question 38

The person with a vision that cannot be put into action is a/an ______.

A) leader
B) follower
C) dreamer
D) employee

Question 39

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

Question 40

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

Question 41

Scenario 14-2. Larry's pasta shop has been growing continuously. The shop is now three times the size it was when Larry first opened it 10 years ago. There are now 26 employees working in three different shops. Larry has finally controlled his costs and has made his overall system of doing business more efficient. His two brothers, Lon and Lyn, manage the other two shops. The brothers have a partnership agreement.

-In Scenario 14-2, 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

Question 42

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

Question 43

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

Question 44

Scenario 14-1. Larry owns and manages a pasta shop in a large Italian town. He employs 12 people, all of whom are fine employees. Larry has a degree in management and knows there are several functions and techniques he must pay close attention to in order to be an effective manager. The pasta shop has always been profitable for Larry and his staff.

-In Scenario 14-1, Larry remembers that leading is getting the most ______ possible from the available ______.

A) work; employees
B) output; resources
C) resources; suppliers
D) resources; profit

Question 45

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

Question 46

Scenario 14-1. Larry owns and manages a pasta shop in a large Italian town. He employs 12 people, all of whom are fine employees. Larry has a degree in management and knows there are several functions and techniques he must pay close attention to in order to be an effective manager. The pasta shop has always been profitable for Larry and his staff.

-In Scenario 14-1, 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

Question 47

Scenario 14-1. Larry owns and manages a pasta shop in a large Italian town. He employs 12 people, all of whom are fine employees. Larry has a degree in management and knows there are several functions and techniques he must pay close attention to in order to be an effective manager. The pasta shop has always been profitable for Larry and his staff.

-In Scenario 14-1, 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

Question 48

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

Question 49

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.

Question 50

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

Question 51

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

Question 52

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

Question 53

Scenario 14-1. Larry owns and manages a pasta shop in a large Italian town. He employs 12 people, all of whom are fine employees. Larry has a degree in management and knows there are several functions and techniques he must pay close attention to in order to be an effective manager. The pasta shop has always been profitable for Larry and his staff.

-In Scenario 14-1, 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

Question 54

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

Question 55

Scenario 14-1. Larry owns and manages a pasta shop in a large Italian town. He employs 12 people, all of whom are fine employees. Larry has a degree in management and knows there are several functions and techniques he must pay close attention to in order to be an effective manager. The pasta shop has always been profitable for Larry and his staff.

-In Scenario 14-1, 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

Question 56

Scenario 14-2. Larry's pasta shop has been growing continuously. The shop is now three times the size it was when Larry first opened it 10 years ago. There are now 26 employees working in three different shops. Larry has finally controlled his costs and has made his overall system of doing business more efficient. His two brothers, Lon and Lyn, manage the other two shops. The brothers have a partnership agreement.

-In Scenario 14-2, 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

Question 57

Management is getting things done through available resources.

Question 58

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

Question 59

Scenario 14-2. Larry's pasta shop has been growing continuously. The shop is now three times the size it was when Larry first opened it 10 years ago. There are now 26 employees working in three different shops. Larry has finally controlled his costs and has made his overall system of doing business more efficient. His two brothers, Lon and Lyn, manage the other two shops. The brothers have a partnership agreement.

-In Scenario 14-2, 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

Question 60

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

Question 61

Effectiveness and efficiency, defined, are interchangeable words.

Question 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

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

Question 67

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

Question 68

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

Question 69

Growing businesses do not necessarily need changes in management techniques.

Question 70

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

Question 71

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

Question 72

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

Question 73

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

Question 74

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

Question 75

A growing business will experience five different stages of growth.

Question 76

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

Question 77

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

Question 78

Small businesses need managers who are also leaders.

Question 79

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

Question 80

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