Business Management Study Guide

A Study guide made from the Quizlet that is now published on Knowt, to be used for prep for the ot component of FBLA Business Management

Only large companies with several employees need managers.

False

A good manager may occasionally make a decision contrary to generally accepted principles of management.

True

Senior managers of very large corporations don't want their middle managers to think like entrepreneurs.

False

4. Forepersons, crew leaders, and store managers are all examples of _____ managers.

A. Middle

B. Supervisory

C. Senior

D. Beginning

B. Supervisory

5. A sole proprietorship is a business owned by _____.

A. one company

B. Relatives

C. One Person

D. The Blank

\

C. One Person

6. _____ percent of the businesses in the United States are small businesses.

A. 45

B. 67

C. 90

D. 98

D. 98

Conceptual Skills

A. Negotiating salaries with workers

B. Taking inventory of merchandise in a store

C. Deciding how to invest company profits

C. Deciding how to invest company profits

Human Relations Skills

A. Negotiating salaries with workers

B. Taking inventory of merchandise in a store

C. Deciding how to invest company profits

A. Negotiating salaries with workers

Technical Skills

A. Negotiating salaries with worke

B. Taking inventory of merchandise in a storers

C. Deciding how to invest company profits

B. Taking inventory of merchandise in a store

Taylor thought that explaining the principles of scientific management would only confuse workers.

False

Centralization always makes a company's management stronger.

False

In general, Theory Y managers give their employees the freedom to make creative decisions.

True

In the United States, the Industrial Revolution began in approximately _____.

A. 1960

B. 1789

C. 1900

D. 1860

D. 1860

A _____ occurs when one party maintains total control over a type of industry.

A. takeover

B. landslide

C. monopoly

D. hierarchy of needs

C. Monopoly

Consider quality as well as price in awarding business is a principle of _____.

A. total quality management

B. Maslow's hierarchy of needs

C. scientific management

D. the Hawthorne effect

A. total quality management

Theory X

A. Assumes that employees will work best when given some collective decision making power and some emphasis on personal responsibility.

B. Assumes that people need strict rules in order to perform well.

C. Assumes that people will perform well if they are put in the right environment.

B. Assumes that people need strict rules in order to perform well.

8. Theory Y

A. Assumes that employees will work best when given some collective decision making power and some emphasis on personal responsibility.

B. Assumes that people need strict rules in order to perform well.

C. Assumes that people will perform well if they are put in the right environment.

C. Assumes that people will perform well if they are put in the right environment.

9. Theory Z

A. Assumes that employees will work best when given some collective decision making power and some emphasis on personal responsibility.

B. Assumes that people need strict rules in order to perform well.

C. Assumes that people will perform well if they are put in the right environment.

A. Assumes that employees will work best when given some collective decision making power and some emphasis on personal responsibility.

According to Maslow, which need would a worker fill first?

A. need to earn enough money

B. need for a safe work environment

C. needs are at the same level

D. depends on the personality of the worker

A. need to earn enough money

The activities you enjoy today are important to consider when choosing your future career.

True

Professional associations are too specialized to be very helpful to a beginner deciding on a future career.

False

A young person without a long job history might benefit from using a skills résumé.

True

_____ show changes or movement in a certain area.

A. Values

B. Learning styles

C. Networks

D. Trends

D. Trends

A job applicant should always include a _____ when sending a résumé to a potential employer.

A. self-addressed-stamped-envelope

B. fax number

C. cover letter

D. reply deadline

C. cover letter

6. Responsibility, achievement, recognition, relationship, compassion, and courage are examples of _____.

A. learning styles

B. personalities

C. values

D. lifestyles

C. values

Bodily/Kinesthetic

A. Learns best by making categories, classifying, and working with patterns.

B. Learns best by observing, collecting, identifying, and organizing patterns.

C. Learns best by interacting with people and objects in real space.

C. Learns best by interacting with people and objects in real space.

Naturalistic

A. Learns best by making categories, classifying, and working with patterns.

B. Learns best by observing, collecting, identifying, and organizing patterns.

C. Learns best by interacting with people and objects in real space.

B. Learns best by observing, collecting, identifying, and organizing patterns.

\

Logical/Mathematical

A. Learns best by making categories, classifying, and working with patterns.

B. Learns best by observing, collecting, identifying, and organizing patterns.

C. Learns best by interacting with people and objects in real space.

A. Learns best by making categories, classifying, and working with patterns.

What are some examples of nonprofit organizations?

A. The Girl Scouts

B. The Museum of Tolerance'

C. The Sierra Club

D. All of the above

D. All of the above

A business code of ethics is a set of unspoken guidelines about proper behavior in the workplace.

False

Pricing, billing, and contracting practices are areas generally covered by a code of ethics.

True

Performing a social audit can only hurt a company's reputation.

False

A person faces _____ when it is not easy to decide what the correct course of action should be.

A. dismissal

B. an ethical dilemma

C. a code of ethics

D. a lawsuit

B. an ethical dilemma

False advertising is prohibited by the _____ act.

A. Wheeler-Lea

B. Sherman

C. Clayton

D. Food, Drug, and Cosmetic

A. Wheeler-Lea

The National Environmental Policy Act created the _____ in 1969.

A. FDA

B. EPA

C. FCC

D. none of the above

B. EPA

Profit Maximization

Social issues are not the concern of businesses.

Social Involvement

Businesses have obligations to stakeholders.

Trusteeship Management

C. Businesses have obligations to their employees, creditors, and customers.

How can businesses support their employees' involvement in charitable organizations?

A. give time off to employees for volunteering

B. match employee donations to charitable causes

C. Both

D. Neither

C. Both

The Uniform Commercial Code was established to protect consumers from mislabeled and impure foods, drugs, and cosmetics.

False

Equal Opportunity Employment laws prohibit employment discrimination on the basis of religious affiliation

True

Unemployment insurance only covers workers who have been at a job for a certain length of time

True

The law regulating how two or more people can set up a partnership is called the _____.

A. Wheeler-Lea Act

B. Corporate Partnership Act

C. Uniform Partnership Act

D. Sole Proprietor Act

Uniform Partnership Act

A patent gives an inventor and company exclusive rights to make, use, and sell their inventions for ___ years.

A. 100

B. 25

C. 7

D. 17

D. 17

The National Labor Relations Act regulates the relationship between businesses and _____.

A. Unions

B. Gov

C. IRS

D. Gov Agencies

A. Unions

What do Consumer Laws do?

Protects individuals against business activities that might be harmful to them.

What do Commercial Laws do?

Regulates how businesses enter into contracts with other businesses and consumers

What do Corporate Laws do?

Regulates how businesses can set themselves up to operate as companies.

What do zoning laws regulate?

The areas of a city or municipality where a business can be located.

When the price of a product goes down, companies are less willing to supply more of the product.

True

Payroll is an example of a fixed cost.

False

Managers tend to pay special attention to leading economic indicators when making decisions about the future of the company.

True

_____ are determined by subtracting revenues from costs.

A. Losses

B. Taxes

C. Profits

D. Prices

C. Profits

What happens during a Depression

Many workers are laid off and wages and benefits are less than desirable.

What factors cause business Expansion

Unemployment is low and wages are competitive.

What happens with Contraction

Some workers are laid off as businesses cut production.

What factor(s) would you have to consider when calculating the opportunity cost of taking a luxury cruise?

A. The risk of an accident at sea

B. The bills that could be paid with the money used to pay for the cruise

C. Both

D. Neither

B. The bills that could be paid with the money used to pay for the cruise

Countries who have the absolute advantage in the production of a commodity should always invest in the production and trade of that product.

False

The United States spends more to purchase imported goods than any other country in the world.

True

Companies who do not want to invest a significant amount of money on foreign operations costs might consider selling products through a foreign intermediary.

True

A tax on imports is called \_____.

a tariff

Restrictions on trade are reduced or eliminated in _____.

A. international trade

B. the global economy

C. the balance of trade

D. a free trade area

D. a free trade area

It is appropriate to arrive to a business meeting late in _____.

A. China

B. Switzerland

C. Indonesia

D. None of the Above

C. Indonesia

What is a Licensing agreement

It Allows a company to gain share of the profits made when a foreign business sells the home company's goods.

What is a Multinational corporation

Allows a company to expand both markets and operations and take advantage of cheaper foreign labor.

What is a Strategic alliance

Allows a company to gain access to new markets by partnering with well-known firms in the home country.

Why do companies diversify their markets?

To offset poor sales in a particular area with stronger sales in another.

D. Neither

B. To offset poor sales in a particular area with stronger sales in another.

Rational decision making is always better than intuitive decision making.

False

If a manager fails to call back a top job candidate within 72 hours, his or her company risks losing the candidate to another company.

True

In a brainstorming session, members of a group cannot criticize any idea.

True

Managers who make decisions based on a hunch are practicing \_____ decision making.

intuitive

The first step in the Meyers model for creative decision making is \_____.

recognition

_____ can help managers come up with creative solutions to problems.

A. Brainstorming

B. Brainwriting

C. Wish lists

D. All of the above

D. All of the above

Collaborative

Manager shares information and asks for input from subordinates as a group before making a decision.

Leading

Manager shares information with a few subordinates and then asks them individually for advice before making a decision

Autocratic

Manager makes the decision alone, with little or no advice.

Which is a potential drawback to team decision making?

The group may attach itself to the first potential positive solution.

Over half of employees' time at work is spent listening.

True

When writing reports that your superiors will see it is advisable to include many technical terms so that you can demonstrate your knowledge of the field.

False

A good active listener will wait until a speaker has completely finished his or her statement before asking any questions or making any comments.

False

By observing body language, or \_____, a manager can gain additional information about a speaker.

nonverbal cues

The KIS principle stands for \_____.

keep it simple

The most common form of written business communication is the \_____.

memo

Oral communication plus written communication

A. Telling employees that the company's new fitness center is now open.

B. Telling employees that the company will no longer allow staff to work overtime.

C. Telling an employee that his or her 90-minute lunches are too long.

B. Telling employees that the company will no longer allow staff to work overtime.

Oral communication alone

A. Telling employees that the company's new fitness center is now open.

B. Telling employees that the company will no longer allow staff to work overtime.

C. Telling an employee that his or her 90-minute lunches are too long.

C. Telling an employee that his or her 90-minute lunches are too long.

Written communication alone

A. Telling employees that the company's new fitness center is now open.

B. Telling employees that the company will no longer allow staff to work overtime.

C. Telling an employee that his or her 90-minute lunches are too long.

A. Telling employees that the company's new fitness center is now open.

If you were at a job interview, what sorts of nonverbal cues would you want to avoid?

A. fidgeting

B. shyly looking down at the floor

C. Both

D. Neither

C. Both

Divestiture is when an entire company is sold or dissolved.

False

Customers are willing to pay more for a product that differentiates itself from its competitors through overall cost leadership.

False

Good strategic managers continuously evaluate and respond to change.

True

Strategic planning is \_____ planning done by a company's senior managers.

long-range

In a SWOT analysis, a manager considers a company's \_____.

Strengths, Weaknesses, Opportunities, and Threats

A \_____ outlines a company's reason for existing.

mission statement

Retrenchment Strategy

A. When a company plans to reverse negative trends.

B. When a company plans to expand sales, products, or personnel.

C. When a company plans to keep operating at the same level that it has been for years.

A. When a company plans to reverse negative trends.

Stability Strategy

A. When a company plans to reverse negative trends.

B. When a company plans to expand sales, products, or personnel.

C. When a company plans to keep operating at the same level that it has been for years.

C. When a company plans to keep operating at the same level that it has been for years.

Growth Strategy

A. When a company plans to reverse negative trends.

B. When a company plans to expand sales, products, or personnel.

C. When a company plans to keep operating at the same level that it has been for years.

B. When a company plans to expand sales, products, or personnel.

What factors might make it difficult to implement a new strategy?

A. Old company policies

B. Training costs for new job tasks

C. Both

D. Neither

C. Both

Managers must consider community attitudes and living conditions when selecting a site for business operations.

True

When making decisions about resource allocation, a manager must consider the cost of workers' wages.

True