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Exam II: Chapters 6-10
ECN 1015 - Introduction to Business in a Market Economy.
50
Business
Undergraduate 1
10/18/2016

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Term
B. Entrepreneur
Definition
Kenya recently quit a job with a large corporation to start her own business. While she realizes that her decision comes with risk, she is excited for the chance to be independent and by the challenges of running her own firm. Kenya is an example of a(n):
Term
A. Intrapreneurial
Definition
Jake is an innovative engineering graduate who works for a large company that makes adhesive products for commercial and consumer use. One of his primary responsibilities is to initiate and develop new products to complement the firm's current product line. Jake's company is ___.
Term
C. Micropreneur
Definition
Pete inherited a thriving dry cleaning business from his father and mother. He continued the tradition of offering quality service to the customers he served. As the surrounding towns expanded, several people suggested that Pete expand the business to offer service in new locations. He chose to maintain only one operation, so as not to lose control and to keep his work life and home life balanced. Pete is a good example of a(n) ___.
Term
B. Underestimated the competition.
Definition
Jayne started a small bakery in a resort town. She was certain she had the ideal location, with plenty of hotels and inns within walking distance of her establishment. She planned to use her grandmother's recipes, using only the finest ingredients for her upscale resort customers. During the first week of business, she was disappointed with lackluster sales. When she drove past the regular breakfast style restaurants and even the Starbuck TM, she noticed they were rather bustling. Jayne most likely:
Term
C. The value of an existing business is determined by what the business owns, what it earns, and what makes it unique.
Definition
Motivated by his desire to operate his own business, Nick considers purchasing an existing business. As he carefully weighs this option, he is likely to find that:
Term
B. Her Business Plan
Definition
In order to finance The Shortbread Shack, a mobile bakery business that services several large Silicon Valley companies, Marcy demonstrated her steadfast desire to get her bakery off the ground by visiting several bankers with _____.
Term
A. Invest his money in new businesses with potential for growth, hoping for a good return on his investment if they go public.
Definition
Chris is an angel investor. This means that he:
Term
B. His ability to easily adapt and respond to his customer's needs.
Definition
Ben got a phone call from one if his regular customers asking if he had time to repair a couple of broken sprinkler heads on the customer's underground sprinkling system. Although it was already 6:00 pm and Ben had put in a full day of work, he turned his car around and headed for the customer's house. As a small business owner, Ben demonstrates:
Term
A. Exporting can help sell excess inventory.
Definition
Luis is a partner in a firm that specializes in producing vitamins and health food products. While the business is considered small by U.S. standards, he is attempting to persuade his partner to expand internationally. Luis would list which of the following as an advantage of going global?
Term
B. Self-nurturing.
Definition
Peppy remains confident and enthusiastic even though his colleagues have poked fun at his ideas. This shows that Peppy is:
Term
C. Leading
Definition
As a manager, two of Sylvia's strengths are her ability to communicate goals clearly, and her ability to guide coach, and motivate workers. Based on these strengths, ______ is a management function that Sylvia is likely to be good at performing.
Term
A. Vision
Definition
Monica was hired by the Misty Mount Corporation to take over as the new chief executive officer. Her initial impression is that the company is in disarray, primarily because the employees do not have a sense of purpose or a common set of values. Monica's observations suggest that she needs to provide a(n) __________ for Misty Mount.
Term
B. Mission statement
Definition
Customers who visit any Good As New Appliance Repair Center see a framed statement prominently displayed near the front door. The plaque describes the companies' fundamental purposes. In part, it states that "All Good As New Centers operate under the belief that every customer deserves good quality parts, fast and dependable service, and a fair price." The words on this plaque reflect the _______ of Good As New.
Term
C. Tactical Planning
Definition
Jermaine is a manager with Drevil Industries. Part of his job is to make specific short-term decisions about what his department must do to achieve Drevil's long-term success. Jermaine is involved in:
Term
D. Operational planning
Definition
Kayla is a supervisor who manages a production line. She spends several hours each week developing specific employee work assignments and production schedules for the coming week so that the production department can meet its short-term production objectives. This suggests that a significant component of Kayla's job involves:
Term
D. Contingency planning.
Definition
Flavio, CEO of Fabulous Frozen Custard believes that alternate plans are almost as important as the primary operational plans because external circumstances such as the weather, competitor moves, and even economic conditions make it important to have a plan B. Flavio endorses:
Term
B. Technical skills and human relations skills more than conceptual skills.
Definition
After working for eleven years as a production line worker, Hollis recently was made a foreman. In his new position, Hollis will rely on:
Term
A. Conceptual skills
Definition
As CEO of Oracle, Larry Ellison performs strategic planning for the organization as well as putting structure in place to monitor company progress. These activities make use of Larry's:
Term
D. Autocratic
Definition
Well-known retired basketball coach, Bob Knight, was known for his emotional antics at Indiana University and Texas Tech. If you talk with Bob, he believes in total dedication from his team and total compliance to his style of coaching. It's "his way or the highway." Bob typifies the style of leader.
Term
C. Participative (democratic)
Definition
At Holyfield Chemicals, department heads usually make decisions after meeting with employees and seeking their ideas and suggestions. Department heads at Holyfield Chemicals make extensive use of the ____ style of leadership.
Term
C. Organization Chart
Definition
When Bret started his auto mechanic shop his business plan included a(n) _____ that showed the relationship among employees in his organization and the lines of authority and responsibility.
Term
D. Bureaucratic organization
Definition
John recently accepted a job in the marketing department with the Burbank Bagel Boys. After just a few days on the job, John learned that the company has many layers of management and seems to have a rule to cover almost every situation. These conditions suggest that Burbank Bagel Boys is a(n):
Term
D. Decentralized
Definition
Greenwave Garden Centers is a national chain of discount gardening stores. The top management at Greenwave realizes that different regions of the United States have very different climates and soil conditions, so they give regional managers a great deal of freedom to decide exactly what types of plants, fertilizers, and other items to stock and how to best market these products. Greenwave is an example of a _____ organization.
Term
B. Function
Definition
HipHop Music Company assigns workers to departments based on similar skills. Currently, the company has a marketing department, a production department, a finance department, and a human resources department. This suggests that HipHop departmentalizes by:
Term
D. Customer Group
Definition
Springfield National Bank organizes its loan operations based on the market served, such as consumer, small business, and nonprofit organizations. Departmentalization based on _____ allows Springfield to better serve borrowers with different needs.
Term
A. Centralized Authority
Definition
Management at Hottie Potatee, a nationwide potato bar chain, believes that its customers value a predictable and consistent level of service and quality. When customers stop at one of its potato bar chain restaurants anywhere in the United States, they should know what to expect in terms of menu, price, and quality. In order to maintain this consistency, Hottie Potatee adopted a(n) _____ structure.
Term
C. Line organization
Definition
The organizational structure of the U.S. Army's 1st Infantry Division provides for direct two-way lines of responsibility, authority, and communication running from the top to the bottom. Additionally, each person in the division reports to only one superior. The 1st Infantry Division is clearly an example of a(n):
Term
D. Matrix organization model
Definition
Chang is a project manager at Paradox Industries. He is able to borrow specialists from the organization on a regular basis to assist in major projects. After the project ends, the specialists return to their functional units to await new assignments. Paradox Industries utilizes a:
Term
B. Core Competencies
Definition
Independence Electronics prides itself as a world-class producer of components used in CD and DVD players. The outstanding performance of the production department indicates that this activity is one of the firms:
Term
D. The Organizational culture
Definition
Zach recently got his Ph.D. in analytical chemistry and was fortunate to be asked to join the Weilman Lab at a prestigious eastern university. After a month on the job, he remarked to another graduate student at his former university that the spirit of help and cooperation at the Weilman lab was remarkable. He enjoyed going to work each day and sometimes exchanged calls with other lab partners in the evening with ideas to improve each other's experiments. Zach remarked, "Now I know why this lab is considered one of the best in the nation!" Zach is referring to:
Term
C. Operations Management
Definition
Upon their return from a recent scuba diving and snorkeling trip on the island of Cozumel, Mexico, Tyler and Diana highly recommended the resort where they stayed. Guest services were extremely prompt in assisting with diving excursions. All resort employees were trained to greet every guest each time they encountered them, whether it was on a pathway to the pools and beaches, or in the restaurants. Many times, the employees ever referred to each guest by name. _____ in the service sector is about creating a good experience for customers.
Term
A. Form utility
Definition
SitRite Furniture Company uses labor and machinery to transform wood, plastic, metal and cloth into comfortable chairs, sofas, and love seats. This process creates:
Term
C. Mass customization
Definition
Marilyn's Travel Inc. is a medium-sized travel agency that specializes in vacation packages. It has packages available around the globe-everything from cruises, to beach resort vacations, to historical tours. The customer chooses the amount they would like to pay, the area of the world they would like to visit and what they would like to do. Based on this information Marilyn's Travel uses _____ to delight the customers.
Term
C. Continuous
Definition
Operations managers at Alumax Corporation have found that they can achieve efficient production only by producing very large quantities of aluminum without shutting down the production process. This indicates that Alumax should use a(n) _____ production process.
Term
B.A process manufacturing
Definition
Cooltreet, Inc., combines sugar, cream, eggs, and flavorings, then churns and cools the resulting mixture to a very low temperature until it freezes, creating ice cream. The method Cooltreet uses is an example of:
Term
A. An assembly process
Definition
Megatronics, Inc. obtains computer components from a variety of suppliers and puts them together according to customer specifications to create custom-made computers. This process is an example of:
Term
C. Lean manufacturing.
Definition
Alex is a production manager who believes his firm uses more of all types of resources than is necessary to produce its products. He would like to find a way to cut back on labor and reduce the firm's investment in tools and space as well. It seems that Alex would like to adopt:
Term
C. Reducing time to market
Definition
Millennium, Inc, a leading producer of environmentally friendly cleaning agents is looking for a site for a new production facility. The company is mainly focusing on sites that are close to major highways and rail hubs and are not too far from some major population centers. This suggests that an important location consideration for Millennium is:
Term
A. Become certified in ISO 9000 standards
Definition
X-Sport Industries is a U.S. based manufacturer of sporting goods. Recently, it has decided to make a major push to sell its products in the European Union. In order to succeed in this new market X-Sport will need to:
Term
D. On the critical path of the PERT network.
Definition
Becca works as a new product development engineer for a company that makes solar panels for residential and commercial purposes. Her company uses PERT network software for all development projects. As she nears the final month of her timeline for completing a new panel, Becca will focus on those activities that are:
Term
C. Scientific management
Definition
New employees at Throneberry Manufacturing are carefully trained to use the most efficient production methods. They are then placed on an assembly line and expected to perform the same task day after day, using the methods they were taught. The work is boring, but the pay is good. Throneberry's approach is consistent with the principles of:
Term
A. Hawthrone effect
Definition
Dr. Mo T. Vadar, a professor of psychology at a respected university, is planning a study of the factors that affect the motivation of employees. Dr. Vadar is concerned that the results of his experiments may be misleading because employees in an experimental group tend to behave differently when they are being studied. This concern shows that Dr. Vadar is aware of the:
Term
D. Theory Y
Definition
At High Stakes International, employees tend to work with little direct supervision since employees are considered trustworthy and committed. Management's expectation for employee creativity is high. The management at High Stakes reflects _____ attitudes about employees.
Term
A. Job enrichment
Definition
At Boss Motorcar Company, employees are grouped into teams. Each team is responsible for assembling an entire automobile. Boss gives each team freedom and flexibility to decide how to divide up the work. The company keeps the employees informed about how their cars are selling, and even shows them the comments customers make about quality and performance on customer satisfaction questionnaires. Boss Motorcar Company is using a strategy of:
Term
B. Autonomy
Definition
Ramon works at Chicago Medical Instruments. His job was recently redefined so that he now has more flexibility in the hours he works and more say in the procedures used on the job. This suggests that Chicago Medical Instruments is trying to change Ramon's job so that it has more:
Term
A. Equity theory
Definition
You are a graduate teaching assistant in the Biology department at Fairview University. You have several graduate student friends who have graduate appointments in the business department and the English department. While everyone's compensation and employee benefits are exactly the same, your department requires you to always show up and tutor students at least four hours each day and to serve on one university committee each semester. Graduates students at the other departments are not required by their management to follow these rules. Lately, you are doing your best to limit your daily obligation to 2 1/2 to 3 hours each day. The motivational theory that most closely correlates with your action is:
Term
A. Social
Definition
When Elaine accepted a position with Cannon Corporation in Dallas, Texas she felt uneasy. She was new to the area and new to this company. However, she was pleased that her new job offered her the opportunity to play on the company volleyball team. She quickly made new friends and, through her new friends, learned about the city. Apparently, her new job satisfies Elaine's _____ needs.
Term
D. Overall, motivators related to greater job satisfaction, while hygiene factors made the workplace a satisfying place to thrive.
Definition
According to Herzberg, the difference between motivators and hygiene factors is:
Term
C. Help employees motivate themselves with a goal-setting model that involves, discussion, review, and evaluation by management and employees.
Definition
The purpose of management by objectives is to:
Term
A. Is the reward for completing his or her maximum effort toward completing a task?
Definition
According to Victor Vroom, which of the following questions is an employee likely to ask before deciding to exert his or her maximum effort toward completing a task?
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