Deck 12: Establishing Operations

Question 1

Procrastination can use up the resources and time of a new business.

Answer 1

True

Question 2

A critical line chart demonstrates how the activities necessary to start a firm fit together and build on each other.

Answer 2

False

Question 3

No matter where a business is located, its owner needs to establish legitimacy in the eyes of the customers and suppliers.

Answer 3

True

Question 4

A production chart is unlike a critical path chart because some activities can occur simultaneously.

Question 5

There have been many production management systems developed. A new business owner does not need to invent one, but can probably utilize one already developed.

Question 6

In the Flow Right Brewery & Bar case study, Chris sought out his personal and family friends to help him build relationships with his key suppliers.

Question 7

A strip shopping center is typically located along a major road.

Question 8

In the early stages of a business, the development of a production management system is an important step to consider especially when the business owner has limited resources as well as strong time pressures.

Question 9

Choosing when to start a business is an important operational element. The book strongly suggests that starting business operations as quickly as possible is an effective strategy.

Question 10

Time management is not an important aspect in the successful management of a business. Small business owners can set their own time schedules.

Question 11

When practicing time management, a new business owner should give priority to short-term items that can be accomplished quickly.

Question 12

In the Friend's Home Health case study, during the initial start-up period, expenses were _________ than expected.

A) lower
B) higher
C) proportionate
D) break-even

Question 13

The owners in the Friend's Home Health case study realized their plans for the operation were:

A) breaking even
B) not leading to a break-even point
C) faced with a positive situation above their expectations
D) in line with production chart progress

Question 14

A new businessperson should be guided by _________ to develop a critical path chart.

A) financial data
B) marketing data
C) information data
D) operational data

Question 15

Critical path analysis is a _________ document that should be modified during the process of actually accomplishing tasks.

A) stagnant
B) dynamic
C) living
D) both dynamic and living

Question 16

_________ provide(s) a detailed understanding of a firm's production process.

A) A program chart
B) Program analysis
C) Program assets
D) Program management

Question 17

What kind of chart provides a detailed understanding of a firm's production process?

A) critical path chart
B) path analysis chart
C) production chart
D) consumption chart

Question 18

Indigo IT won an award for what?

A) 2014 Espy Award for best small business
B) 2013 SBA Award for best minority-owned business
C) 2014 SBA Award for services provided to the federal government
D) none of these

Question 19

In the Friend's Home Health case study, the founders sought out a _________ location.

A) high-rent
B) relatively cheap
C) high-traffic
D) none of these

Question 20

In the "Study Café" example, the critical chart process helped the students realize:

A) they need to open their doors for business as they originally planned
B) they need to open their doors for business in April
C) they need to open their doors for business in August
D) both they need to open their doors for business as they originally planned and they need to open their doors for business in April

Question 21

Which type of business has a production process?

A) manufacturing
B) technology
C) retail
D) all of these

Question 22

If a new business is to compete against McDonald's, it will have to have similar _________ and _________ of offerings.

A) quality; quantity
B) type; quantity
C) kind; quality
D) none of these

Question 23

During the initial start-up period, an owner will need more _________ than expected.

Question 24

Why is it important for a new small business to go to the trouble of establishing legitimacy? List at least five methods a new business owner can establish legitimacy.