Exam 19: Professional Management and the Small Business

Professional managers often have more sophisticated methods of management than entrepreneurs.

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?

Kathleen believes she could be more efficient in the use of her time.To determine where improvements can be made, Kathleen should first:

Describe the four stages of small business growth and how the owner would function.

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

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

For small businesses, the most likely form of organisational structure is:

The formal organisation stage of business growth is a turning point because the entrepreneur must learn to rise above direct management and work through an intermediate level of managers.

Stage 3 in the growth of a business is characterised by:

Entrepreneurs who follow a win-win negotiating strategy seek a solution that will satisfy at least the basic interests of both parties.

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:

Periodic performance review sessions for a company following two-way communication would discuss employee ideas, questions, complaints and job expectations.

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

Budgets are usually prepared for five years in advance using quarterly figures.

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

Andrea designed a new household cleaning product that can be used on any surface, is environmentally friendly and performs better than other current products.As the company grew, she added employees to produce the cleaner.Recently a grocery store chain asked to sell the cleaner in a regional area.Should she continue as the CEO? At what level is the company in its development? What factors should Andrea consider as the company continues to grow?

A budget is prepared as part of a:

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

The use of written policies, budgets and job descriptions is most closely associated with which stage of growth?

John, a small business operations manager, is confronted with a quality problem.A typical small business handicap that will hamper his efforts to solve the problem is a lack of: