Deck 16: Professional Small Business Management

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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 10

Growing businesses do not necessarily need changes in management techniques.

Question 11

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

Question 12

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

Question 13

Effectiveness and efficiency,defined,are interchangeable words.

Question 14

A growing business will experience five different stages of growth.

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

Management is getting things done through available resources.

Question 20

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

Question 21

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

Question 22

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

Question 23

Small businesses need managers who are also leaders.

Question 24

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

Question 25

Skillful negotiators are better at talking than listening.

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

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

Question 42

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

Question 43

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

Question 44

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

Question 45

Planning is ____ what to do.

A) Thinking
B) Pretending
C) Organizing
D) Determining

Question 46

Money always motivates people.

Question 47

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

Question 48

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 49

Management is the efficient and effective use of resources.

Question 50

Fear always motivates people.

Question 51

Effectiveness,defined,is achieving which of the following?

A) Stated goals
B) High profit
C) Low expenses
D) Growth

Question 52

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 53

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

A) Received,bought
B) Ordered,received
C) Planned,accomplished
D) Accepted,defined

Question 54

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

Question 55

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 56

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

Question 57

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.

Question 58

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 59

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 60

Organizing involves all but which of the following?

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

Question 61

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

A) Existence
B) Survival
C) Success-disengagement
D) Resource-maturity

Question 62

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 63

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

A) Existence
B) Solo
C) Survival
D) Resource-maturity

Question 64

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 65

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

Question 66

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 67

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 68

The best stage of growth is ____.

A) Existence
B) Success-disengagement
C) Take-off
D) No single stage is better than the other stages

Question 69

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 70

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 71

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

Question 72

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 73

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

Question 74

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

A) Leader
B) Follower
C) Dreamer
D) Employee

Question 75

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

Question 76

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 77

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 78

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 79

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

A) Entrepreneur
B) Resource allocator
C) Monitor
D) Leader

Question 80

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