Question 1

Which of the following refers to the fact that subordinates are to report to only one superior?

Accepted Answer

A)  span of control 
B)  informal organization 
C)  formal organization 
D)  chain of command 
A)  span of control 
B)  informal organization 
C)  formal organization 
D)  chain of command

Question 2

Founders may fail to appreciate the value of good management practices.

Accepted Answer

A) True 
 B)False

Question 3

The SCORE program offers entrepreneurs the opportunity to enroll in college courses.

Accepted Answer

A) True 
 B)False

Question 4

A printing shop owner believes that his business is running rather haphazardly and wants to get it under control. The first step he should take is to

Accepted Answer

A)  increase inspection. 
B)  set standards. 
C)  take corrective action. 
D)  draw up a strategic plan. 
A)  increase inspection. 
B)  set standards. 
C)  take corrective action. 
D)  draw up a strategic plan.

Question 5

In small businesses, poor management is prevalent and inevitable.

Accepted Answer

A) True 
 B)False

Question 6

Line organization uses a dual chain of command.

Accepted Answer

A) True 
 B)False

Question 7

Negotiation is the process of developing workable solutions through discussions and interactions.

Accepted Answer

A) True 
 B)False

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

A)  adequate financial resources and adequate staff. 
B)  inadequate financial resources and inadequate staff. 
C)  adequate financial resources and inadequate staff. 
D)  inadequate financial resources and adequate staff. 
A)  adequate financial resources and adequate staff. 
B)  inadequate financial resources and inadequate staff. 
C)  adequate financial resources and inadequate staff. 
D)  inadequate financial resources and adequate staff.

Question 9

Shirley Lessman is planning to launch a business and has been encouraged to start in a business incubator. This will give her access to

Accepted Answer

A)  bank loans. 
B)  free rent. 
C)  prepaid insurance. 
D)  management counsel. 
A)  bank loans. 
B)  free rent. 
C)  prepaid insurance. 
D)  management counsel.

Question 10

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

A)  intermediate supervision. 
B)  formal policies. 
C)  direct supervision. 
D)  quality management. 
A)  intermediate supervision. 
B)  formal policies. 
C)  direct supervision. 
D)  quality management.

Question 11

The following tools and techniques enhance two-way communication between managers and employees except

Accepted Answer

A)  periodic performance review sessions 
B)  formal staff meetings 
C)  end-of-year bonuses 
D)  blogs for internal communication 
A)  periodic performance review sessions 
B)  formal staff meetings 
C)  end-of-year bonuses 
D)  blogs for internal communication

Question 12

Intermediate supervision, which occurs in Stage 3 of small business growth, involves the use of budgets, personnel policies, organizational charts, and computerization.

Accepted Answer

A) True 
 B)False

Question 13

To improve control of operations, a shop owner wishes to measure performance at the process stage. The owner might

Accepted Answer

A)  inspect raw materials. 
B)  use quality control. 
C)  set sales quotas. 
D)  improve personnel-selection methods. 
A)  inspect raw materials. 
B)  use quality control. 
C)  set sales quotas. 
D)  improve personnel-selection methods.

Question 14

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

Accepted Answer

A)  one-person operation. 
B)  intermediate supervision. 
C)  player-coach. 
D)  formal organization. 
A)  one-person operation. 
B)  intermediate supervision. 
C)  player-coach. 
D)  formal organization.

Question 15

Stage 1 in the growth of a business is characterized by

Accepted Answer

A)  entrepreneur as player-coach. 
B)  multilayered organization. 
C)  hands-off management practices. 
D)  one-person operation. 
A)  entrepreneur as player-coach. 
B)  multilayered organization. 
C)  hands-off management practices. 
D)  one-person operation.

Question 16

Faced with the challenge of recruiting, selecting, and compensating a growing number of employees, a small business owner is planning to hire a human resource manager. This owner is apparently going to establish

Accepted Answer

A)  an informal organization. 
B)  a line-and-staff organization. 
C)  a Stage 2 organization. 
D)  a line organization. 
A)  an informal organization. 
B)  a line-and-staff organization. 
C)  a Stage 2 organization. 
D)  a line organization.

Question 17

Developing a plan for the firm helps the entrepreneur to think through the issues faced by the firm as well as providing a focus for the firm.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  creative person. 
B)  good manager. 
C)  low risk taker. 
D)  good organization member. 
A)  creative person. 
B)  good manager. 
C)  low risk taker. 
D)  good organization member.

Question 19

A manager who grants to subordinates the right to act or make decisions is delegating authority.

Accepted Answer

A) True 
 B)False

Question 20

A survey of time usage has been recommended to a small business owner by a management consultant. This will provide the owner with a basis for improving the business by

Accepted Answer

A)  classifying time spent according to functional areas of the business. 
B)  avoiding procrastination. 
C)  focusing attention on the most crucial tasks. 
D)  minimizing use of meetings. 
A)  classifying time spent according to functional areas of the business. 
B)  avoiding procrastination. 
C)  focusing attention on the most crucial tasks. 
D)  minimizing use of meetings.

Exam 19: Professional Management in the Entrepreneurial Firm

Which of the following refers to the fact that subordinates are to report to only one superior?

Founders may fail to appreciate the value of good management practices.

The SCORE program offers entrepreneurs the opportunity to enroll in college courses.

A printing shop owner believes that his business is running rather haphazardly and wants to get it under control. The first step he should take is to

In small businesses, poor management is prevalent and inevitable.

Line organization uses a dual chain of command.

Negotiation is the process of developing workable solutions through discussions and interactions.

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

Shirley Lessman is planning to launch a business and has been encouraged to start in a business incubator. This will give her access to

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

The following tools and techniques enhance two-way communication between managers and employees except

Intermediate supervision, which occurs in Stage 3 of small business growth, involves the use of budgets, personnel policies, organizational charts, and computerization.

To improve control of operations, a shop owner wishes to measure performance at the process stage. The owner might

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

Stage 1 in the growth of a business is characterized by

Faced with the challenge of recruiting, selecting, and compensating a growing number of employees, a small business owner is planning to hire a human resource manager. This owner is apparently going to establish

Developing a plan for the firm helps the entrepreneur to think through the issues faced by the firm as well as providing a focus for the firm.

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

A manager who grants to subordinates the right to act or make decisions is delegating authority.

A survey of time usage has been recommended to a small business owner by a management consultant. This will provide the owner with a basis for improving the business by

The Entrepreneurial Life

Entrepreneurial Integrity and Ethics

Getting Started

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Human Resources Plan: Managers, Owners, Allies, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

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