Question 1

If a company successfully creates properly functioning self-managed teams among employees, the supervisors will

Accepted Answer

A)  feel threatened by her leadership approach to teams. 
B)  likely become fewer in number. 
C)  may attempt to delegate mundane tasks to the teams. 
D)  need to maintain closer supervision. 
A)  feel threatened by her leadership approach to teams. 
B)  likely become fewer in number. 
C)  may attempt to delegate mundane tasks to the teams. 
D)  need to maintain closer supervision. B

Question 2

Jo Ann serves as the CEO of her company and currently works 60 hours a week at a minimum. What issues does she face?

Accepted Answer

This schedule may lead to an inefficient and ineffective work performance resulting in not being able to balance life at the company with life outside of the company. When Jo Ann becomes so busy, she doesn't have time to plan for the future (not having time to meet with outsiders or find out about current events that could improve the company) or more importantly listen to others around her (employees, family and friends). Personal health, family relationships and business leadership may suffer from working too many hours.

Question 3

Match the term with its definition. Some terms may not be used.
-Granting to subordinates the right to act or make decisions

Accepted Answer

A) Budget 
B) Chain of command 
C) Delegation of authority 
D) Empowerment 
E) Long-range plan
F)Professional manager
G)Self-managed work teams
H)Short-range plan 
A) Budget 
B) Chain of command 
C) Delegation of authority 
D) Empowerment 
E) Long-range plan
F)Professional manager
G)Self-managed work teams
H)Short-range plan C

Question 4

Many owner-managers seldom work more than 40 to 60 hours a week.

Accepted Answer

A) True 
 B)False

Question 5

A small business that has expanded beyond the comfort zone of its entrepreneur will end in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 6

The personal shopper business Jeff and Christy have developed has grown so they are busy 50 hours weekly. This schedule leaves little time for them as a couple. They have decided to hire outside employees to take over some of their business responsibilities. What suggestions should they follow to ease this transition?

Accepted Answer

Jeff and Christy should complete the fol

Question 7

Someone with a charismatic personality will make a more effective leader.

Accepted Answer

A) True 
 B)False

Question 8

A small business typically has greater constraints in cash flow and employee expertise than found in larger corporations.

Accepted Answer

A) True 
 B)False

Question 9

SBDCs are affiliated with colleges and universities and provide counseling solely through a group of retired executives.

Accepted Answer

A) True 
 B)False

Question 10

Margaret has launched a new event planning company with four employees. With the growth in sales and personnel, the next step of growth will involve

Accepted Answer

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

Question 11

What type of leadership style focuses on creating emotional bonds?

Accepted Answer

A)  Affiliative 
B)  Pace-setting 
C)  Coaching 
D)  Coercive 
A)  Affiliative 
B)  Pace-setting 
C)  Coaching 
D)  Coercive

Question 12

Entrepreneurs can get management assistance from peers through

Accepted Answer

A)  outside consultants. 
B)  SCORE advisors. 
C)  volunteer work in the community. 
D)  networking. 
A)  outside consultants. 
B)  SCORE advisors. 
C)  volunteer work in the community. 
D)  networking.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Match the term with its definition. Some terms may not be used.
-Groups of employees with freedom to function without direct supervision but with responsibility for results

Accepted Answer

A) Budget 
B) Chain of command 
C) Delegation of authority 
D) Empowerment 
E) Long-range plan
F)Professional manager
G)Self-managed work teams
H)Short-range plan 
A) Budget 
B) Chain of command 
C) Delegation of authority 
D) Empowerment 
E) Long-range plan
F)Professional manager
G)Self-managed work teams
H)Short-range plan

Question 15

Owner-managers of small businesses typically overdo the amount of planning.

Accepted Answer

A) True 
 B)False

Question 16

Match the term with its definition. Some terms may not be used.
-The number of employees who are supervised by one manager

Accepted Answer

A) Line organization 
B) Line-and-staff organization 
C) Negotiation 
D) Networking 
E) Professional manager
F)Service Corps of Retired Executives
G)Small business development centers
H)Span of control 
A) Line organization 
B) Line-and-staff organization 
C) Negotiation 
D) Networking 
E) Professional manager
F)Service Corps of Retired Executives
G)Small business development centers
H)Span of control

Question 17

A positive solution should be pursued in negotiations whenever it is feasible to do so.

Accepted Answer

A) True 
 B)False

Question 18

In a line-and-staff organization, which division is a line activity?

Accepted Answer

A)  Production 
B)  Legal 
C)  Human Resources 
D)  Accounting 
A)  Production 
B)  Legal 
C)  Human Resources 
D)  Accounting

Question 19

When a firm reaches Stage 2, the entrepreneur engages extensively in both the coordination of the efforts of others as well as performing basic work activities.

Accepted Answer

A) True 
 B)False

Question 20

A small firm's basic path to the future is spelled out in a document called a

Accepted Answer

A)  feasibility study. 
B)  short-range plan. 
C)  budget. 
D)  strategic plan. 
A)  feasibility study. 
B)  short-range plan. 
C)  budget. 
D)  strategic plan.

Exam 19: Professional Management and the Small Business

If a company successfully creates properly functioning self-managed teams among employees, the supervisors will

Jo Ann serves as the CEO of her company and currently works 60 hours a week at a minimum. What issues does she face?

Match the term with its definition. Some terms may not be used. -Granting to subordinates the right to act or make decisions

Many owner-managers seldom work more than 40 to 60 hours a week.

A small business that has expanded beyond the comfort zone of its entrepreneur will end in bankruptcy.

Someone with a charismatic personality will make a more effective leader.

A small business typically has greater constraints in cash flow and employee expertise than found in larger corporations.

SBDCs are affiliated with colleges and universities and provide counseling solely through a group of retired executives.

Margaret has launched a new event planning company with four employees. With the growth in sales and personnel, the next step of growth will involve

What type of leadership style focuses on creating emotional bonds?

Entrepreneurs can get management assistance from peers through

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

Match the term with its definition. Some terms may not be used. -Groups of employees with freedom to function without direct supervision but with responsibility for results

Owner-managers of small businesses typically overdo the amount of planning.

Match the term with its definition. Some terms may not be used. -The number of employees who are supervised by one manager

A positive solution should be pursued in negotiations whenever it is feasible to do so.

In a line-and-staff organization, which division is a line activity?

When a firm reaches Stage 2, the entrepreneur engages extensively in both the coordination of the efforts of others as well as performing basic work activities.

A small firm's basic path to the future is spelled out in a document called a

The Entrepreneurial Life

Integrity and Ethics: Foundations for Success in Small Business

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, 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 Development 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

A: Managing Risk in the Small Business

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