Question 1

Marvin has just launched a consulting business. Business has been slower than expected. What advice would you give Marvin?

Accepted Answer

A)  Post an ad in the local newspaper. 
B)  Tap into his personal and professional network. 
C)  Find a different line of work. 
D)  Take a full-time position with a company while he builds his business part-time. 
A)  Post an ad in the local newspaper. 
B)  Tap into his personal and professional network. 
C)  Find a different line of work. 
D)  Take a full-time position with a company while he builds his business part-time. B

Question 2

Leadership in most small firms is more _____ in comparison to the leadership in large corporations.

Accepted Answer

A)  haphazard 
B)  impersonal 
C)  personal 
D)  skillful 
A)  haphazard 
B)  impersonal 
C)  personal 
D)  skillful C

Question 3

James is talking to another supervisor about the number of employees that he supervises. James is talking about

Accepted Answer

A)  his span of control. 
B)  the informal organization. 
C)  the organizational structure. 
D)  his chain of command. 
A)  his span of control. 
B)  the informal organization. 
C)  the organizational structure. 
D)  his chain of command. A

Question 4

Barry's expectation that employees will complete his requests immediately is typical of _____ leaders.

Accepted Answer

A)  populist 
B)  general 
C)  paragon 
D)  visionary 
A)  populist 
B)  general 
C)  paragon 
D)  visionary

Question 5

Linda's high standards and expectations of employee excellence is typical of _____ leaders.

Accepted Answer

A)  visionary 
B)  general 
C)  populist 
D)  paragon 
A)  visionary 
B)  general 
C)  populist 
D)  paragon

Question 6

Match the term with its definition.
-A plan that governs a firm's operations for one year or less

Accepted Answer

A) budget 
B) chain of command 
C) delegation of authority 
D) empowerment 
E) line-and-staff organization
F)line organization
G)long-range plan (strategic plan)
H)negotiation
I)networking
J)professional manager
K)Service Corps of Retired Executives (SCOR
E) 
L)short-range plan
M)Small Business Development Centers (SBDCs)
N)span of control 
A) budget 
B) chain of command 
C) delegation of authority 
D) empowerment 
E) line-and-staff organization
F)line organization
G)long-range plan (strategic plan)
H)negotiation
I)networking
J)professional manager
K)Service Corps of Retired Executives (SCOR
E) 
L)short-range plan
M)Small Business Development Centers (SBDCs)
N)span of control

Question 7

Once an organizational structure and pattern of management has been established, it should remain static in order for the business to become established and grow.

Accepted Answer

A) True 
 B)False

Question 8

If Elizabeth, who just hired her first employee, desires to create an innovative cultural environment within the business, what should she do?

Accepted Answer

A)  Support experimentation while eliminating unnecessary penalties for failure. 
B)  Maintain tight control of all aspects of the business. 
C)  Reject employee ideas. 
D)  Treat all employees the same. 
A)  Support experimentation while eliminating unnecessary penalties for failure. 
B)  Maintain tight control of all aspects of the business. 
C)  Reject employee ideas. 
D)  Treat all employees the same.

Question 9

Match the term with its definition.
-Authorization of employees to make decisions or take actions on their own

Accepted Answer

A) budget 
B) chain of command 
C) delegation of authority 
D) empowerment 
E) line-and-staff organization
F)line organization
G)long-range plan (strategic plan)
H)negotiation
I)networking
J)professional manager
K)Service Corps of Retired Executives (SCOR
E) 
L)short-range plan
M)Small Business Development Centers (SBDCs)
N)span of control 
A) budget 
B) chain of command 
C) delegation of authority 
D) empowerment 
E) line-and-staff organization
F)line organization
G)long-range plan (strategic plan)
H)negotiation
I)networking
J)professional manager
K)Service Corps of Retired Executives (SCOR
E) 
L)short-range plan
M)Small Business Development Centers (SBDCs)
N)span of control

Question 10

Preparing a daily written plan of work activities is useful in deciding which tasks deserve highest priority.

Accepted Answer

A) True 
 B)False

Question 11

A hesitancy by an entrepreneur to move through the various organizational stages can

Accepted Answer

A)  limit the rate of business growth. 
B)  be interpreted as evidence of creativity. 
C)  normally provide a competitive edge to the firm. 
D)  provide a spark to the business because of the spontaneity it introduces. 
A)  limit the rate of business growth. 
B)  be interpreted as evidence of creativity. 
C)  normally provide a competitive edge to the firm. 
D)  provide a spark to the business because of the spontaneity it introduces.

Question 12

Small business development centers (SBDCs) provide a wide range of services, including business plan consultation and export and import support, but they do not help with market research or financial lending assistance.

Accepted Answer

A) True 
 B)False

Question 13

Small firms that hesitate to move through the various organizational stages and acquire the necessary professional management often limit their rate of growth.

Accepted Answer

A) True 
 B)False

Question 14

A company's culture unfolds over the lifetime of the business and usually reflects the character and style of the founder.

Accepted Answer

A) True 
 B)False

Question 15

Which time management suggestion would be the most critical for a small business owner?

Accepted Answer

A)  Set aside time to work undisturbed. 
B)  Have a daily written plan and highlight priorities. 
C)  E-mail, cell phones, and the Internet should be used to save time, not be a distraction. 
D)  Complete trivial tasks first to have something completed. 
A)  Set aside time to work undisturbed. 
B)  Have a daily written plan and highlight priorities. 
C)  E-mail, cell phones, and the Internet should be used to save time, not be a distraction. 
D)  Complete trivial tasks first to have something completed.

Question 16

SCORE refers to

Accepted Answer

A)  the grade assigned to a small firm by the Small Business Administration. 
B)  the management knowledge possessed by an entrepreneur. 
C)  a group of retired executives who act as consultants to small business owners. 
D)  an alliance of small firms for the purpose of bidding on government contracts. 
A)  the grade assigned to a small firm by the Small Business Administration. 
B)  the management knowledge possessed by an entrepreneur. 
C)  a group of retired executives who act as consultants to small business owners. 
D)  an alliance of small firms for the purpose of bidding on government contracts.

Question 17

The first step in time management should be to divide your tasks into categories of "important" and "not important."

Accepted Answer

A) True 
 B)False

Question 18

List some tools and techniques that can be used to stimulate two-way communication between managers and employees.

Accepted Answer

Many practical tools and techniques can

Question 19

Match the term with its definition.
-A document that expresses future plans in monetary terms

Accepted Answer

A) budget 
B) chain of command 
C) delegation of authority 
D) empowerment 
E) line-and-staff organization
F)line organization
G)long-range plan (strategic plan)
H)negotiation
I)networking
J)professional manager
K)Service Corps of Retired Executives (SCOR
E) 
L)short-range plan
M)Small Business Development Centers (SBDCs)
N)span of control 
A) budget 
B) chain of command 
C) delegation of authority 
D) empowerment 
E) line-and-staff organization
F)line organization
G)long-range plan (strategic plan)
H)negotiation
I)networking
J)professional manager
K)Service Corps of Retired Executives (SCOR
E) 
L)short-range plan
M)Small Business Development Centers (SBDCs)
N)span of control

Question 20

Founders are least likely to be described as

Accepted Answer

A)  creative. 
B)  a good organizational member. 
C)  innovative. 
D)  risk-taking. 
A)  creative. 
B)  a good organizational member. 
C)  innovative. 
D)  risk-taking.

Exam 19: Professional Management and the Small Business

Marvin has just launched a consulting business. Business has been slower than expected. What advice would you give Marvin?

Leadership in most small firms is more _____ in comparison to the leadership in large corporations.

James is talking to another supervisor about the number of employees that he supervises. James is talking about

Barry's expectation that employees will complete his requests immediately is typical of _____ leaders.

Linda's high standards and expectations of employee excellence is typical of _____ leaders.

Match the term with its definition. -A plan that governs a firm's operations for one year or less

Once an organizational structure and pattern of management has been established, it should remain static in order for the business to become established and grow.

If Elizabeth, who just hired her first employee, desires to create an innovative cultural environment within the business, what should she do?

Match the term with its definition. -Authorization of employees to make decisions or take actions on their own

Preparing a daily written plan of work activities is useful in deciding which tasks deserve highest priority.

A hesitancy by an entrepreneur to move through the various organizational stages can

Small business development centers (SBDCs) provide a wide range of services, including business plan consultation and export and import support, but they do not help with market research or financial lending assistance.

Small firms that hesitate to move through the various organizational stages and acquire the necessary professional management often limit their rate of growth.

A company's culture unfolds over the lifetime of the business and usually reflects the character and style of the founder.

Which time management suggestion would be the most critical for a small business owner?

SCORE refers to

The first step in time management should be to divide your tasks into categories of "important" and "not important."

List some tools and techniques that can be used to stimulate two-way communication between managers and employees.

Match the term with its definition. -A document that expresses future plans in monetary terms

Founders are least likely to be described as

The Entrepreneurial Lifethe Entrepreneurial Life

Integrity, Ethics, and Social Entrepreneurship

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 Businesses

Managing Human Resources

Managing Small Business Operations

Managing the Firms Assets

Managing Risk

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