Name:

Exam 2

Introduction to Business

Chapter 5

COMPLETION

Directions: Complete the following using the terms listed. Place the letter in the line ____.

A. sole proprietorship

B. partnership

C. corporation

D. merger

E. acquisitions

F. horizontal merger

G. outside directors

H. vertical merger

I. business plan

1. The form of business ownership that is subject to the least legal red tape is the _____.

REF: p. 180

2. If Chrysler and Ford were to merge, it would be an example of a(n) _____.

REF: p. 187

3. The form of business ownership that establishes the firm as a separate legal entity is the _____.

REF: p. 182

4. If Anheuser-Busch were to acquire a bottling/canning firm, it would be an example of a(n) _____.

REF: p. 187

5. _____ are people on the board of directors of a corporation, but are not employed by the corporation.

REF: p. 185

6. A(n) _____ refers to two or more firms that combine to form one company.

REF: p. 187

7. A(n) _____ occurs when one firm purchases the property and assumes the obligations of another.

REF: p. 187

8. A(n) _____ is an association of two or more persons who operate a business as co-owners.

REF: p. 181

9. Having a(n) ______improves the changes of success for a new business.

REF: p. 157

Chapter 6

TRUE/FALSE

1. Entrepreneurs are risk takers in the private enterprise system. True or False

REF: p. 196

2. Bill Gates was an entrepreneur when he co-founded Microsoft. True or False

REF: p. 196

3. The entrepreneurial spirit can exist even in large companies and is called intrapreneurship. True or False

REF: p. 198

4. Classic entrepreneurs identify business opportunities and allocate available resources to tap those markets. True or False

REF: p. 198

5. 3M Co. continually seeks to develop innovative products by encouraging intrapreneurship among its employees. True or False

REF: p. 198

6. An employee using the company's resources and people to develop new products and ideas within a large organization is called an intrapreneur. True or False

REF: p. 198

7. Desire for self-management is the motivation that drives many entrepreneurs. True or False

REF: p. 200

8. Entrepreneurs are wealth creators who start their ventures with the specific goal of creating profitable businesses. True or False

REF: p. 201

9. A willingness to take risks is a characteristic of entrepreneurs. True or False

REF: p. 213

10. Corporate culture is often a barrier to intrapreneurship at some large companies. True or False

REF: p. 223

Chapter 7

1. Which organization was responsible for the creation of the Internet?

a. / The Al Gore Foundation
b. / The U.S. Department of Defense
c. / The U.S. Department of Commerce
d. / The Central Intelligence Agency (CIA)

REF: p. 230

2. The Internet actually began during the ______.

a. / 1960s
b. / 1970s
c. / 1980s
d. / 1990s

REF: p. 230

3. What service allows users to communicate in real time?

a. / E-mail
b. / Instant messaging
c. / Chat rooms
d. / Portals

REF: p. 233

4. As e-commerce activities become more widespread and affordable, power has shifted to ______.

a. / Sellers
b. / Buyers
c. / Consumers
d. / Businesses

REF: p. 237


Chapter 8

COMPLETION

Directions: Complete the following using the terms listed.

A. corporate culture

B. management

C. vision

D. decision making

E. leadership

F. autocratic leader

G. free-rein leader

H. mission statement

I. competitive differentiation

1. ______is the process of achieving organizational objectives through people and other resources.

REF: p. 266

2. The perception of marketplace needs and methods an organization can use to satisfy them is referred to as ______.

REF: p. 270

3. ______is the process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results.

REF: p. 277

4. The ability to direct or inspire people to attain organizational goals is called ______.

REF: p. 279

5. An organization's system of values, principles, and beliefs is called ______.

REF: p. 282

6. Someone who makes decisions without consulting subordinates is a(n) ______.

REF: p. 279

7. Determining the unique combination of a company's abilities and approaches is called ______.

REF: p. 276

8. A(n) ______is a written explanation of an organization's business intentions and aims.

REF: p. 273

9. Someone who believes in minimal supervision is a(n) ______.

REF: p. 279

Chapter 9 Multiple Choice

1. The process of attracting, training, developing, motivating, and appraising a sufficient quantity of qualified employees to perform the activities necessary to accomplish organizational objectives is part of ______.

a. / human resource management
b. / human asset accounting
c. / an assessment center
d. / management development

REF: p. 296

2. In a broad sense, human resource management involves ______. REF: p. 298

a. / top managers only
b. / top and middle managers only
c. / specialists from the matrix organization only
d. / trained specialists from the human resource department as well as general managers throughout the organization

3. Which of the following is an overall objective of the human resource management department?

a. / Forecasting anticipated sales
b. / Maximizing employee effectiveness in the organization
c. / Determining sources of operating funds
d. / Daily supervision of hourly employees

REF: p. 298

COMPLETION (Chapter 9)

Directions: Complete the following using the terms listed.

A. job enlargement

B. performance appraisal

C. Theory Y

D. Theory X

E. downsizing

F. outsourcing

G. employment at will

H. morale

I. wage

J. human resource management

1. The function of recruiting, developing and retaining sufficient numbers of qualified employees is called _____.

REF: p. 296

2. _____ means the employment relationship can be started or terminated at any time by either the employee or the employer.

REF: p. 302

3. Evaluation of an employee's job performance is _____.

REF: p. 303

4. Using outside specialists to perform functions previously performed by company employees is called _____.

REF: p. 310

5. _____ is a job design change that expands an employee's duties and responsibilities.

REF: p. 313

6. _____ managers assume that employees dislike work and avoid it whenever possible.

REF: p. 315

7. A(n) ______is a compensation based on the hours worked or products produced.

REF: p. 304

8. _____ is the process of reducing the number of employees within a firm by eliminating jobs.

REF: p. 309

9. A(n) _____ type management would be extremely likely to delegate authority.

REF: p. 315

10. _____ is the mental attitude of employees toward their employer and jobs.

REF: p. 311


Chapter 10

MULTIPLE CHOICE

1. Giving employees responsibility and authority to make decisions about their work is called ______.

a. / Empowerment
b. / Communication
c. / Teamwork
d. / top-down management

REF: p. 328

2. The MOST direct reason why employers empower employees is ______.

a. / to aid in recruiting highly-qualified new workers
b. / to increase profits
c. / to increase revenues
d. / to increase quality

REF: p. 328

3. According to quality advocates, effective quality programs begin with the leadership of ______.

a. / nonmanagement employees
b. / top managers
c. / supervisory managers
d. / all employees

REF: p. 328

4. A total quality management (TQM) organization involves ______in determining what customers require and what needs to be done to meet customer expectations.

a. / all employees
b. / all marketing employees
c. / all senior managers
d. / all managers

REF: p. 328

5. According to research and your professor on team effectiveness, the ideal team size is ______.

a. / fewer than five members
b. / between five and seven members
c. / between ten and twenty members
d. / more than twenty members

REF: p. 334


ESSAY QUESTIONS (Chapter 6-10 note chapter 5 not included)

Please answer the 2 of the 5 following essay questions. Please develop logical thoughts and arguments that concretely demonstrate your mastery of the concepts and use of the knowledge learned.

Note a “section/concept” of text/film means a few pages that explain with an entire concept in the book/film such as definition, examples, a case, and/or explanation by the author, your professor’s point of view, a section of the film and/or your own experience (life). Three part questions below!

1) Choose a “section/concept” of Chapter 6 - Starting Your Own Business: The Entrepreneurship Alternative explain how you understand the concepts you choose to discuss from the book’s chapter and movie. 2) Then give an (or some) example(s) of how you see the concepts at work in reality. 3) Finally, how will you leverage your new knowledge and understanding of this concept to benefit you in the real world of business (or life and future)?

2) Choose a “section/concept” of Chapter 7 - Electronic Commerce: The Internet and Online Business explain how you understand the concepts you choose to discuss from the book’s chapter and movie. 2) Then give an (or some) example(s) of how you see the concepts at work in reality. 3) Finally, how will you leverage your new knowledge and understanding of this concept to benefit you in the real world of business (or life and future)?

3) Choose a “section/concept” of Chapter 8 - Management, Leadership, and the Internal Organization explain how you understand the concepts you choose to discuss from the book’s chapter and movie. 2) Then give an (or some) example(s) of how you see the concepts at work in reality. 3) Finally, how will you leverage your new knowledge and understanding of this concept to benefit you in the real world of business (or life and future)?

4) Choose a “section/concept” of Chapter 9 - Human Resource Management, Motivation and Labor-Management Relations explain how you understand the concepts you choose to discuss from the book’s chapter and movie. 2) Then give an (or some) example(s) of how you see the concepts at work in reality. 3) Finally, how will you leverage your new knowledge and understanding of this concept to benefit you in the real world of business (or life and future)?

5) Choose a “section/concept” of Chapter 10 - Improving Performance through Empowerment, Teamwork and Communication explain how you understand the concepts you choose to discuss from the book’s chapter and movie. 2) Then give an (or some) example(s) of how you see the concepts at work in reality. 3) Finally, how will you leverage your new knowledge and understanding of this concept to benefit you in the real world of business (or life and future)?