Question 1

The founder of a firm is most likely to be described as a

Accepted Answer

The founder of a firm is usually someone who has taken an idea and turned it into a successful venture. This requires a high degree of creativity and innovation, as well as the ability to take risks and make tough decisions. While good management skills and organizational abilities are also important, they are not the defining characteristics of a successful founder.

Question 2

Which of the following is not a constraint on management in small firms?

Accepted Answer

Bureaucratic red tape is typically more of a concern for larger organizations with more complex organizational structures and formal procedures. Small firms may have fewer formal procedures and more flexible decision-making processes. The other options (lack of money, limited managerial staff, and lack of marketing research talent) are all common constraints on small firms.

Question 3

Harry Ramirez wishes to create greater enthusiasm among employees in his industrial distribution business. A widely used approach that he might take is

Accepted Answer

Empowerment of employees is a widely used approach to create greater enthusiasm among employees. Empowering employees involves delegating more decision-making authority to them, providing them with opportunities to learn new skills, and involving them in goal-setting and problem-solving processes. This approach can increase employees' motivation, satisfaction, and dedication to their work. Formulating policies, establishing control standards, and adopting budgets may improve organizational performance but are less likely to increase employee enthusiasm.

Question 4

Susan Keller has seen her retail shop grow to the point that she has designated supervisors for the office and two selling areas. Her shop's stage of growth is called

Accepted Answer

Susan Keller's shop has grown to the point where she has designated supervisors for different areas, indicating an intermediate level of supervision beyond a one-person operation or player-coach stage.

Question 5

If Fran Fishburn, who runs a wholesale flower business, successfully creates properly functioning self-managed teams among her employees, her supervisors

Accepted Answer

If Fran Fishburn successfully creates self-managed teams, her supervisors will become fewer in number because the teams will be able to handle many of the tasks that were previously supervised by the managers. The self-managed teams will be empowered to make decisions and handle issues, reducing the need for direct supervision.

Question 6

Elizabeth Vaughn desires to create an innovative cultural environment within her business. Which one of the following should she not do?

Accepted Answer

penalizing failure can discourage employees from taking risks and trying new things, which can stifle innovation. Encouraging experimentation and learning from mistakes should be prioritized.

Question 7

Workers act on their own and to make decisions about the processes they're involved with are considered to be

Accepted Answer

Empowered employees are given the authority to make decisions and take actions within their work processes without needing to constantly consult with a manager or supervisor. This leads to a greater sense of ownership over their work and can improve productivity, creativity, and job satisfaction. Therefore, workers who can act on their own and make decisions about their processes are considered to be empowered employees. The other options do not accurately describe this concept.

Question 8

A corporate marketing executive is moving to a managerial position in a small firm, where she may logically expect to find

Accepted Answer

The answer of A corporate marketing executive is moving to...

Question 9

Stage 1 in the growth of a business is characterized by

Accepted Answer

Stage 1 in the growth of a business is typically the starting point, where the business is a one-person operation. The entrepreneur is responsible for all aspects of the business and often operates as the sole employee.

Question 10

The founder of a firm is least likely to be described as a

Accepted Answer

While a founder may possess qualities such as creativity, risk-taking, and courage, being a good manager is not necessarily a given. Founders may be more focused on ideation and innovation rather than managerial skills. Therefore, being a good manager may not be the most common quality associated with a founder.

Question 11

The use of written policies, budgets, and job descriptions is most closely associated with which of the following stages of growth?

Accepted Answer

The use of written policies, budgets, and job descriptions are typically implemented during the formal organization stage of growth, where there is a higher need for structure and organization as the company expands. In the earlier stages (one-person operation and player-coach), such formal systems may not be as necessary, and in the intermediate supervision stage, there may be a mix of formal and informal systems in place.

Question 12

Which of the following would least concern a corporate manager considering joining a small firm?

Accepted Answer

A corporate manager might actually see the lack of bureaucratic red tape as a positive aspect, as it can lead to more agility and faster decision-making in a small firm.

Question 13

Marcia Mendez, who runs a drapery business, has groups of employees who work in production and in installation. If she decides to use work teams as part of her leadership approach, she must increase

Accepted Answer

One of the key benefits of work teams is increased independence and autonomy for the employees. This means they have more control and responsibility over their work, which can lead to higher motivation and job satisfaction. While supervision and quality may improve as a result of work teams, they are not the primary focus. Compensation may or may not need to increase depending on the specific situation.

Question 14

Mario has just begun to personally supervise employees, his firm is in the stage of growth called

Accepted Answer

The "player-coach" stage is when a business owner starts to personally supervise employees while still being involved in day-to-day operations.

Question 15

Controlling is the managerial function that involves the manager's

Accepted Answer

Controlling involves monitoring and measuring performance, comparing actual results with planned results, and taking corrective action as needed. This function helps managers maintain performance standards and improve organizational effectiveness. Option A describes planning, option C is related to leading, and option D is a vague statement that does not accurately describe controlling.

Question 16

A new business has been launched with four employees who work for the entrepreneur-owner. As the owner contemplates growth in sales and personnel, she realizes that the next step of growth will involve the special problem of

Accepted Answer

Intermediate supervision is the logical next step in growth when a business expands beyond a small team. This involves creating a layer of management between the entrepreneur-owner and the entry-level employees. This intermediate layer of supervision is responsible for supervising and managing the entry-level employees, while the entrepreneur-owner focuses on strategic decision-making and managing the overall direction of the business. Without effective intermediate supervision, the entrepreneur-owner will become overloaded with day-to-day management tasks, which can impede the growth and success of the business.

Question 17

A small business operations manager is confronted with a quality problem. A typical small business handicap that will hamper his efforts to solve the problem is a lack of

Accepted Answer

A typical small business often lacks the resources to hire specialized staff to help solve problems. In this case, the operations manager may not have access to individuals with the necessary expertise to address the quality problem, making it more difficult to find a solution.

Question 18

Research has shown that nice people

Accepted Answer

Research has found that individuals who are considered to be agreeable and cooperative are less likely to engage in criminal behavior and end up in court compared to those who are more confrontational and disagreeable. This does not necessarily mean that nice people cannot achieve success in the corporate world or make less money than others, as these factors depend on various individual and situational factors. Additionally, being a nice person does not necessarily equate to being a doormat, and assertiveness and setting boundaries can be done in a kind and respectful manner.

Question 19

Less-than-professional management behavior on the part of an entrepreneur can

Accepted Answer

Less-than-professional management behavior can hinder business growth as it may lead to inefficiencies, poor decision making, and a lack of effectiveness in leading and motivating employees. It also may not reflect positively on the company and could deter potential investors or customers.

Question 20

As his small business prospers and grows from Stage 1 to Stage 4, Carlos Perez realizes that he also must grow by increasing his

Accepted Answer

As a small business grows, the demands on the owner/manager's time and abilities also grow. In order to successfully navigate the transition from Stage 1 to Stage 4, Carlos Perez must increase his management skills to effectively oversee employees and operations, make strategic business decisions, and ensure continued growth and success. While advertising, legal, and doing (operational) skills are also important, they are not as critical to increasing the overall success of the business as management skills.

Quiz 19: Professional Management in the Entrepreneurial Firm