Question 1

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.

Accepted Answer

When Larry hired his first employees, it signifies the transition from the "existence" stage, where the business is being established and the owner is the primary worker, to the "survival" stage. In this stage, the business has proven that it is a workable business entity and focuses on establishing a stable customer base and sufficient cash flow to cover expenses, which includes hiring employees to support operations.

Question 2

Task overload can be defined as which of the following?

Accepted Answer

Task overload refers to a situation where the amount of work expected from an employee exceeds the time available to complete it. This can lead to stress and decreased productivity.

Question 3

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

Accepted Answer

These management functions are considered continuous because they are performed regularly throughout the life of an organization and are interrelated as each function influences and overlaps with the others.

Question 4

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 ______.

Accepted Answer

Leading involves guiding and motivating employees to achieve organizational goals, which includes maximizing output from the available resources, not just work from employees or resources from suppliers.

Question 5

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

Accepted Answer

The negotiator role in managing an organization indeed involves continuously advocating for and securing the necessary resources for the company's success, as part of the broader managerial responsibility to ensure the organization has what it needs to achieve its goals.

Question 6

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 ______.

Accepted Answer

Larry is experiencing "growing pains," which are common issues businesses face when they expand rapidly, leading to operational challenges such as delays in fulfilling orders and rising costs.

Question 7

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 ______.

Accepted Answer

Efficiency in management is about accomplishing goals and tasks while making the most of the available resources, which aligns with option D.

Question 8

Role conflict can be defined as ______.

Accepted Answer

Role conflict occurs when an individual is confronted with incompatible demands or expectations from multiple roles they are trying to fulfill simultaneously, leading to a situation where fulfilling the expectations of one role may impede the ability to fulfill the expectations of another.

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.

Accepted Answer

In the early stages of a business, owners often take on a wide range of tasks themselves, including basic operational tasks like cleaning machinery, to keep costs down and because they may not have the resources to hire staff for these roles. As the business grows and becomes more established, the owner can delegate these tasks to employees, allowing them to focus more on strategic planning and growth.

Question 10

An emotional state that occurs in response to demands that may come from internal or external sources is known as ______.

Accepted Answer

Stress is the emotional state that occurs in response to demands, whether they are from internal or external sources. Distress, confusion, and fatigue can be outcomes or symptoms of stress, but stress itself is the broader term that encompasses the initial emotional response.

Question 11

Which of the following was listed as the most precious and limited resource of a small business?

Accepted Answer

Time is often considered the most precious and limited resource for small businesses because it directly impacts productivity, efficiency, and the ability to adapt to market changes.

Question 12

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?

Accepted Answer

Eustress is a positive form of stress that occurs when people feel excited and positively challenged by what they are doing. Paul and Wendy's excitement and efficient planning for their vacation indicate they are experiencing eustress, despite finding the planning experience challenging.

Question 13

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 ______.

Accepted Answer

Effectiveness from a manager's perspective involves achieving stated goals, which can encompass a variety of objectives beyond just profits, expenses, or growth.

Question 14

Role ambiguity is ______.

Accepted Answer

Role ambiguity refers to uncertainty about what actions to take or what is expected in a particular role or situation.

Question 15

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 ______.

Accepted Answer

Controlling involves comparing what was initially planned with what was actually accomplished to assess performance and make necessary adjustments.

Question 16

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.

Accepted Answer

In the scenario described, when Larry was running the first pasta shop alone, he was in the "existence" stage of growth. This stage is characterized by the business being newly established and focusing on securing its place in the market.

Question 17

Management is getting things done through available resources.

Accepted Answer

The answer of Management is getting things done through available...

Question 18

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

Accepted Answer

Businesses require management to coordinate resources, make strategic decisions, and ensure operations align with goals; without management, a business is likely to fail due to lack of direction and control.

Question 19

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.

Accepted Answer

Larry's ability to grow his business, manage costs, improve efficiency, and successfully delegate management roles to his brothers demonstrates qualities of an excellent leader, not just a manager or supervisor. Leadership involves guiding and influencing others towards success, which Larry has evidently achieved.

Question 20

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

Accepted Answer

These are indeed the four fundamental functions of management, which are widely recognized in the field of business management for effectively coordinating resources and directing group efforts towards achieving the organization's goals.

Quiz 14: Professional Small Business Management