Deck 13: Management, Leadership, and Ethical Practices

Question 1

One of the most important things you can do when you start a business is to learn how to manage your ________ so that you can get more done with efficiency.

A) sales
B) time
C) costs
D) None of the above.

Answer 1

B

Question 2

If a business owner wants his/her pay to be a variable operating cost, a ________ is most appropriate.

A) bonus
B) wage
C) salary
D) commission

Answer 2

D

Question 3

When checking a job applicant's references, you should create a few questions that are pertinent to the job being filled and the related career paths.

Answer 3

True

Question 4

What is the difference between strategic planning and operational planning?

A) Strategic plans are for one year or less and have very specific objectives, while operational plans are more vague and long-term.
B) Strategic planning covers the short-term day-to-day workings of a business, while operational planning sets out long-term goals.
C) Strategic planning sets out strategies for the business to achieve long-term growth and other goals, while operational planning covers the day-to-day operations of the business.
D) Strategic planning is reserved for middle management in large companies.

Question 5

Great leaders are ________.

A) pessimists
B) coercive
C) power hungry
D) optimists

Question 6

The ________ identifies the knowledge, skills, and abilities required to perform the specific tasks of the job.

A) job rotation
B) job enlargement
C) job enrichment
D) job profile

Question 7

Madam C. J. Walker was an entrepreneur who became ________.

A) the first female pharmacist in America
B) the first African-American businessperson to become a millionaire
C) the first entrepreneur to franchise a business
D) the first self-made female millionaire

Question 8

Why are entrepreneurs not always the best managers for their businesses?

A) Managers are better at coming up with fresh ideas for new businesses than entrepreneurs are.
B) Entrepreneurs have a difficult time motivating employees.
C) Entrepreneurs tend to be creative types who get bored with the day-to-day details of running a business.
D) They tend to have short attention spans.

Question 9

Why is it important for an entrepreneur to pay him/herself regularly in a consistent manner out of the business's earnings?

Question 10

Research indicates that ________ is the most important characteristic required for successful leadership.

A) self esteem
B) business knowledge
C) drive
D) intelligence

Question 11

Which of the following is not a primary function of management?

A) planning
B) organizing
C) optimizing
D) controlling

Question 12

What are the steps in the employee recruiting process?

Question 13

Hiring employees is called ________.

A) assessment
B) controlling
C) management
D) recruitment

Question 14

No matter the size of a business, the leader sets the ________ for how the organization operates. If the leader is chaotic, chances are the business will be too. If the leader is well organized and efficient, the business may well be too.

A) asset optimization
B) expense constraints
C) profit expectations
D) tone

Question 15

A share of a company's profits paid to an investor is called a ________.

A) commission
B) stock
C) dividend
D) return

Question 16

A leader is someone who gets things done through ________.

A) coercion
B) power
C) influence
D) force

Question 17

When a business grows too big for the entrepreneur to run it alone, he/she should consider ________.

A) franchising the business
B) taking management classes to become a better manager
C) slowing down marketing efforts to bring the business's growth back under control
D) raising capital and using it to hire managers

Question 18

According to expert Daniel Goleman, what are the main managerial styles, their advantages and disadvantages/drawbacks?

Question 19

You may not be able to afford full-time employees for your business early on, but you can still hire quality people without having to provide full-time salaries and benefits. Describe some methods for doing so.

Question 20

A pacesetting style of leadership consists of a leader who sets very high personal performance standards and challenges employees to meet them too.

Question 21

The act of Congress that requires employers to pay men and women the same amount for the same work is called ________.

A) The Equal Opportunity Act
B) The Equal Pay Act
C) The Work Compensation Act
D) Anti-discrimination Act

Question 22

An organizational structure in which each person reports to one supervisor is called a ________ organization.

A) line
B) staff
C) flat
D) smooth

Question 23

Which of the following is not a good method of ensuring that money is handled ethically in your business?

A) Always have two people in the room when the business mail is opened, so no one can steal a check.
B) Pay yourself, as the owner, strictly out of the profits earned by the business.
C) Require every check issued by the business to be signed by two executives.
D) Make sure the employees that handle the money are licensed and bonded.

Question 24

________ is the ethical obligation of a company to its community.

A) Corporate governance
B) Social entrepreneurship
C) Corporate social responsibility
D) None of the above.

Question 25

Make sure your business is run in an ethical manner by ________.

A) keeping accurate records and using financial controls
B) never taking company profits just to pay yourself
C) creating an advisory board
D) All of the above.

Question 26

The Mission of an organization is the shared beliefs, values, and attitudes among
employees - also referred to as "how things are done around here."

Question 27

As you hire employees, you will need to become aware of laws and taxes, including ________.

A) anti-discrimination laws
B) payroll taxes
C) Fair Labor Standards Act and The Equal Pay Act of 1963
D) All of the above.

Question 28

As a business, ethical practices involve doing the right things and doing them ethically.

Question 29

Corporate scandals at Enron, WorldCom-MCI, and other firms are examples of failure of ________.

A) corporate public relations
B) corporate governance
C) corporate ethics
D) corporate violations

Question 30

Many companies staff their human resources organizations using a ratio of one HR executive per ________ employees.

A) 50 -100
B) 50 - 200
C) 10 - 50
D) 250 - 1000

Question 31

The ________ of an organization is the shared beliefs, values, and attitudes.

A) mission
B) culture
C) structure
D) vision

Question 32

The standards and rules in businesses that help someone decide right from wrong are called ________.

A) corporate governance
B) laws
C) ethics
D) morals

Question 33

Which is not a good method for preventing legal complications when you must lay off or fire employees?

A) Document your reasons for firing employees to prove that they did not perform their duties correctly.
B) Have employees sign an agreement when they're hired saying they will not sue if they are ever laid off.
C) Provide severance, which is continued salary for a limited time, and make serious efforts to help laid-off employees find a new job.
D) Have appropriate employees sign a no-compete agreement.

Question 34

As your business grows, have its financial records (its "books") checked annually by a reputable ________.

A) CPO
B) accountant
C) lawyer
D) software program

Question 35

Which is not an effective way to protect yourself from a wrongful termination suit brought by an employee whom you have fired?

A) I can keep documentation of all my reasons for firing the employee to prove that he/she violated company ethics or was not performing his/her duties.
B) I can conduct regular reviews of employee performance.
C) I can give notification in writing and work on corrections.
D) I can hire a lawyer to protect me from lawsuits.

Question 36

Some basics of corporate governance include keeping accurate records, using financial controls, creating an advisory board, using company profits as personal funds as needed.

Question 37

Companies that have faced ethical scandals typically did not have ________ in place to ensure that managers did not misuse funds or otherwise behave illegally or unethically.

A) better business regulations
B) penalties
C) corporate governance
D) a code of ethics

Question 38

A business behavior might be legal but still not be ________.

A) invalid
B) ethical
C) wrong
D) profitable

Question 39

What is a wrongful termination suit? How can you protect your company from it?

Question 40

The department that hires, trains, and develops company employees is called ________.

A) employment office
B) hiring and firing
C) human resources
D) personnel