A business owned, and usually managed, by one person.

a) Corporation

b) Partnership

c) Sole Proprietorship

d) Entrepreneuer

Sole Proprietorship

Two or more people legally agree to become co-owners of a business.

a) Corporation

b) Partnership

c) Sole Proprietorship

d) Entrepreneuer

Partnership

A legal entity with authority to act and have liability apart from its owners.

a) Corporation

b) Partnership

c) Sole Proprietorship

d) Entrepreneuer

Corporation

any debts or damages incurred by the business are your debts, even if it means selling your home, car or anything else.

a) Limited Liability

b) Unlimited Liability

c) Enterprise Zones

d) Transparency

Unlimited Liability

All owners share in operating the business and in assuming liability for the business’s debts.

a) General Partnership

b) Limited Liability Partnership

c) Limited Partnership

d) Master Limited Partnership

General Partnership

A partnership with one or more general partners and one or more limited partners.

a) General Partnership

b) Limited Liability Partnership

c) Limited Partnership

d) Master Limited Partnership

Limited Partnership

A partnership that looks much like a corporation but is taxed like a partnership and thus avoids the corporate income tax.

a) General Partnership

b) Limited Liability Partnership

c) Limited Partnership

d) Master Limited Partnership

Master Limited Partnership

Limits partners’ risk of losing their personal assets to the outcomes of only their own acts and omission and those of people under their supervision.

a) General Partnership

b) Limited Liability Partnership

c) Limited Partnership

d) Master Limited Partnership

Limited Liability Partnership

An owner (partner) who has unlimited liability and is active in managing the firm.

a) General Partner

b) Limited Partner

c) Limited Liability Partner

d) Master Limited Partner

General Partner

An owner who invests money in the business but enjoys limited liability.

a) General Partner

b) Limited Partner

c) Limited Liability Partner

d) Master Limited Partner

Limited Partner

means that liability for the debts of the business is limited to the amount the limited partner puts into the company; personal assets are not a risk.

a) Limited Liability

b) Unlimited Liability

c) Enterprise Zones

d) Transparency

Limited Liability

---- Ease of starting and ending the business

---- Being your own boss

---- Pride of ownership

---- Leaving a legacy

---- Retention of company profit

---- No special taxes

a) Advantages of a Sole Proprietorship

b) Disadvantages of a Sole Proprietorship

c) Advantages of a Partnership

d) Disadvantages of a Partnership

---- Unlimited Liability

---- Limited financial resources

---- Management difficulties

---- Overwhelming time commitment

---- Few fringe benefits

---- Limited growth

----         Limited life span

a) Advantages of a Sole Proprietorship

b) Disadvantages of a Sole Proprietorship

c) Advantages of a Partnership

d) Disadvantages of a Partnership

---- More financial resources

---- Shared management and pooled skills and knowledge

---- Longer survival

---- No special taxes

a) Advantages of a Sole Proprietorship

b) Disadvantages of a Sole Proprietorship

c) Advantages of a Partnership

d) Disadvantages of a Partnership

---- Unlimited Liability

---- Division of profits

---- Difficult to terminate

---- Disagreements among partners

a) Advantages of a Sole Proprietorship

b) Disadvantages of a Sole Proprietorship

c) Advantages of a Partnership

d) Disadvantages of a Partnership

---- Limited liability

---- Ability to raise more money for investment

---- Size

---- Perpetual life (Company lives on even though a(n) owner(s) die(s))

---- Ease of ownership change

---- Ease of attracting talented employees

---- Separation of ownership from management

a) Advantages of a Corporation

b) Disadvantages of a Corporation

c) Advantages of a Partnership

d) Disadvantages of a Partnership

---- Initial cost

---- Extensive paperwork

---- Double taxation

---- Two tax returns

---- Size

---- Difficult of termination

---- Possible conflict with stockholders and board of directors.

a) Advantages of a Corporation

b) Disadvantages of a Corporation

c) Advantages of a Partnership

d) Disadvantages of a Partnership

the result of two firms joining to form one company.

a) Conglomerate Merger

b) Horizontal Merger

c) Merger

d) Vertical Merger

joins two firms in different stages of related business.

a) Conglomerate Merger

b) Horizontal Merger

c) Merger

d) Vertical Merger

Joins two firms in the same industry and allows them to diversify or expand their products.

a) Conglomerate Merger

b) Horizontal Merger

c) Merger

d) Vertical Merger

Unites firms in completely unrelated industries in order to diversify business operations and investments

a) Conglomerate Merger

b) Horizontal Merger

c) Merger

d) Vertical Merger

an arrangement whereby someone with a  good idea for a business (franchisor) sells the rights to use the business name and all a product or service (franchise) to others (franchisees) in a given territory

a) Corporation

b)Franchise Agreement

c) Incubator

d) Transparency

---   Management and marketing assistance

---   Personal ownership

---   National recognized name

---   Financial advice and assistance

---   Lower failure rate

a) Advantages of a Franchise Agreement

b)Disadvantages of a Franchise Agreement

c) Advantages of a Matrix Organization

d) Disadvantages of a Matrix Organization

---   Large start-up costs

---   Shared profit

---   Management regulation

---   Coattail effects

---   Restrictions on selling

---   Fraudulent franchisors.

a) Advantages of a Franchise Agreement

b)Disadvantages of a Franchise Agreement

c) Advantages of a Matrix Organization

d) Disadvantages of a Matrix Organization

accepting the risk of starting and running a business.

a) Entrepreneurship

b) Incubators

c) Intrapreneur

d) Micropreneur

Entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers a balanced lifestyle

a) Entrepreneurship

b) Incubators

c) Intrapreneur

d) Micropreneur

a creative person who works as an entrepreneur within a corporation.

a) Entrepreneurship

b) Incubators

c) Intrapreneur

d) Micropreneur

Specific geographic areas to which governments attract private business investment by offering lower taxes and other government support.

a) Entrepreneurship

b) Enterprise Zones

c) Intrapreneur

d) Micropreneur

Offer new businesses low-cost offices with basic services.

a) Entrepreneurship

b) Incubators

c) Intrapreneur

d) Micropreneur

a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and owners.

a) Business Plan

b) Goals

c) Objectives

d) Vision

more than a goal, it’s a broad explanation of why the organization exists and where it’s trying to go.

a) Business Plan

b) Goals

c) Objectives

d) Vision

Outlines the organization’s fundamental purposes.

a) Business Plan

b) Goals

c) Mission Statement

d) Vision

The broad, long-term accomplishments an organization wishes to attain.

a) Objectives

b) Goals

c) Mission Statement

d) Vision

Specific, short-term statements detailing how to achieve the organization’s goals.

a) Objectives

b) Goals

c) Mission Statement

d) Vision

A visual device that shows relationships among people divides the organization’s work; it shows who reports to whom.

a) Matrix Organization

b) Organization Chart

c) Gantt Chart

d) Flat Organization Structure

Managers and employees work together to make decisions.

a) Autocratic Leadership

b) Free-Rein Leadership

c) Participative or Democratic Leadership

d) Management Leadership

Managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.

a) Autocratic Leadership

b) Free-Rein Leadership

c) Participative or Democratic Leadership

d) Management Leadership

SWTO

a) Strengths, Weaknesses, Threats, Opportunities

b) Strengths, Wrongs, Treats, Opportunities

c) Strong, Weak, Threat, Opportunity

d) Strong, Weakness, Treats, Opportunities

Recruiting, hiring, motivating and retaining the best people available to accomplish the company’s objectives.

a) Vision

b) Staffing

c) Objectives

d) Management

Making managerial decisions without consulting others.

a) Autocratic Leadership

b) Free-Rein Leadership

c) Participative or Democratic Leadership

d) Management Leadership

---   Core competencies in key areas

---   An acknowledged market leader

---   Well-conceived functional area strategies

---   Proven management

---   Cost advantages

---   Better advertising campaigns

a) Potential Internal STRENGTHS

b) Potential External OPPORTUNITIES

c) Potential Internal WEAKNESSES

d)Potential External THREATS

Potential Internal STRENGTHS

---   Ability to serve additional customer groups

---   Expand product lines

---   Ability to transfer skills/technology to new products

---   Falling trade barriers in attractive foreign markets

---   Complacency among rival firms

---   Ability to grow due to increases in market demand

a) Potential Internal STRENGTHS

b) Potential External OPPORTUNITIES

c) Potential Internal WEAKNESSES

d)Potential External THREATS

Potential External OPPORTUNITIES

---   No clear strategic direction

---   Obsolete facilities

---   Subpar profitability

---   Lack of managerial depth and talent

---   Weak market image

---   Too narrow a product line

a) Potential Internal STRENGTHS

b) Potential External OPPORTUNITIES

c) Potential Internal WEAKNESSES

d)Potential External THREATS

Potential Internal WEAKNESSES

---   Entry of lower-cost foreign competitors

---   Rising sales of substitute products

---   Slower market growth

---   Costly regulatory requirements

---   Vulnerability to recession and business cycles

---   Changing buyer needs and tastes

a) Potential Internal STRENGTHS

b) Potential External OPPORTUNITIES

c) Potential Internal WEAKNESSES

d)Potential External THREATS

Potential External THREATS

done by top management and determines the major goals of the organization and the policies, procedures, strategies and resources it will need to achieve them.

a) Contingency Planning

b) Operational Planning

c) Strategic Planning

d) TacticalPlanning

The process of developing detailed, short-term statements about what is to be done, who is to do it and how.

a) Contingency Planning

b) Operational Planning

c) Strategic Planning

d) TacticalPlanning

The process of setting work standards and schedules necessary to implement the company[s tactical objectives.

a) Contingency Planning

b) Operational Planning

c) Strategic Planning

d) TacticalPlanning

The process of preparing alternative courses of action the firm can use if its primary plans don’t work out.

a) Contingency Planning

b) Operational Planning

c) Strategic Planning

d) TacticalPlanning

The highest level, consists of the president and other key company executives who develop strategic plans.

a) Middle Management

b) Supervisory Management

c) Top Management

d) Lower Management

Includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.

a) Middle Management

b) Supervisory Management

c) Top Management

d) Lower Management

Those directly responsible for supervising workers and evaluating daily performance.

a) Middle Management

b) Supervisory Management

c) Top Management

d) Lower Management

The ability to perform tasks in a specific discipline or department.

a) Conceptual Skills

b) Human Relationship Skills

c) Technical Skills

d) Time Management Skills

Skills that involve communication and motivation, they enable managers to work through and with people.

a) Conceptual Skills

b) Human Relationship Skills

c) Technical Skills

d) Time Management Skills

Skills that involve the ability to picture the organization as a whole and the relationship among its various parts.

a) Conceptual Skills

b) Human Relationship Skills

c) Technical Skills

d) Time Management Skills

The optimal number of subordinates a manager supervises or should supervise.

a) Control

b) Cross-Functional Self-Managed Teams

c) Quality Control

d) Form Utility

An organizational structure in which the organization chart would be tall because of the various levels of management.

a) Cross-Functional Self-Managed Teams

b) Flat Organizational Strctures

c) Line Organization

d) Matrix Organization

e) Tall Orgainzation Structures

An organizational Structure that has few layers of management and a broad span of control.

a) Cross-Functional Self-Managed Teams

b) Flat Organizational Strctures

c) Line Organization

d) Matrix Organization

e) Tall Orgainzation Structures

Has direct two-way lines of responsibility, authority and communication running from the top to the bottom. Everyone reports to one supervisor

a) Cross-Functional Self-Managed Teams

b) Flat Organizational Strctures

c) Line Organization

d) Matrix Organization

e) Tall Orgainzation Structures

Workers responsible for directly achieving organizational goals, and include production, distribution and marketing employees.

a) Line Personnel

b) Staff Personnel

c) Middle Management

d) Top Managment

Employees who advise and assist line personnel in meeting their goals, and include marketing research, legal advising, IT and human resource employees.

a) Line Personnel

b) Staff Personnel

c) Middle Management

d) Top Managment

Specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line-and-staff structure.

a) Cross-Functional Self-Managed Teams

b) Flat Organizational Strctures

c) Line Organization

d) Matrix Organization

e) Tall Orgainzation Structures

---   Managers have flexibility in assigning people projects.

---   Interorganizational cooperation and teamwork is encouraged.

---   Creative solutions to product development problems are produced.

---   Efficient use of organizational resources.

a) Advantages of a  Matrix Organization

b) Disadvantages of a Matrix Organization

c) Advantages of a Franchise Agreement

d) Disadvantages of a Franchise Agreement

---   Its costly and complex.

---   Employees may be confused about where their loyalty belongs.

---   Good interpersonal skills Disadvantages of a Franchise Agreementnd cooperative employees are a must.

---   It’s a temporary solution to a possible long-term problem.

---   Teams are not permanent.

a) Advantages of a  Matrix Organization

b) Disadvantages of a Matrix Organization

c) Advantages of a Franchise Agreement

d) Disadvantages of a Franchise Agreement

Groups of employees from different departments who work together on a long-term basis.

a) Cross-Functional Self-Managed Teams

b) Flat Organizational Strctures

c) Line Organization

d) Matrix Organization

e) Tall Orgainzation Structures

When a company is so open to other companies that electronic information is shared as if the companies were one.

a) Transparency

b) Form Utility

c) Virtual Corpoartion

d) Computer-Aided Design (CAD)

A temporary networked organization mad up of replaceable firms that join and leave as needed.

a) Transparency

b) Form Utility

c) Virtual Corpoartion

d) Computer-Aided Design (CAD)

The value producers add to materials in the creation of finished goods and services.

a) Transparency

b) Form Utility

c) Virtual Corpoartion

d) Computer-Aided Design (CAD)

The use of computers in the design of products.

a) Transparency

b) Computer-Aided Manufacturing (CAM)

c) Virtual Corpoartion

d) Computer-Aided Design (CAD)

The use of computers in the manufacturing of products.

a) Transparency

b) Computer-Aided Manufacturing (CAM)

c) Virtual Corpoartion

d) Computer-Aided Design (CAD)

Designing machines to do multiple tasks so they can produce a variety of products.

a) Fixed-Position Layout

b) Computer-Aided Manufacturing (CAM)

c) Flexible Manufacturing

d) Just-in-Time (JIT) Inventory Control

The process of selecting a geographic location for a company’s operations.

a) Fixed-Position Layout

b) Computer-Aided Manufacturing (CAM)

c) Flexible Manufacturing

d) Facility Location

Workers do only a few tasks at a time.

a) Assembly Line Layout

b) Fixed-Position Layout

c) Modular Layout

d) Process Layout

Teams of workers produce more complex units of the final product.

a) Assembly Line Layout

b) Fixed-Position Layout

c) Modular Layout

d) Process Layout

Allows workers to congregate around the product.

a) Assembly Line Layout

b) Fixed-Position Layout

c) Modular Layout

d) Process Layout

Similar equipment and functions are grouped together.

a) Assembly Line Layout

b) Fixed-Position Layout

c) Modular Layout

d) Process Layout

The production process in which a minimum of inventory is kept and parts, supplies and other needs are delivered just in time to go on the assembly line.

a) Enterprise Resource Planning (ERP)

b) Just-in-Time (JIT) Inventory Control

c) Materials Requirement Planning (MRP)

d) Congingency Planning

A computer-based operations management systems that uses sales forecasts to make sure parts and materials are available when needed.

a) Enterprise Resource Planning (ERP)

b) Just-in-Time (JIT) Inventory Control

c) Materials Requirement Planning (MRP)

d) Congingency Planning

A newer version of MRP, combines computerized functions into a single integrated software program using a single database.

a) Enterprise Resource Planning (ERP)

b) Just-in-Time (JIT) Inventory Control

c) Materials Requirement Planning (MRP)

d) Congingency Planning

Consistently producing what the customer wants while reducing errors before and after delivery.

a) Quality Control

b) Six Sigma Quality

c) Statistical Process Control

d) Statistical Quality Control

A quality measure that allows only 3.4 defects per million opportunities.

a) Quality Control

b) Six Sigma Quality

c) Statistical Process Control

d) Statistical Quality Control

A process used to continually monitory all phases of the production process.

a) Quality Control

b) Six Sigma Quality

c) Statistical Process Control

d) Statistical Quality Control

A process of testing statistical samples of product components at each stage of production.

a) Quality Control

b) Six Sigma Quality

c) Statistical Process Control

d) Statistical Quality Control

is a worldwide federation of national standards bodies.

a) International Organizationfor Standardization(ISO)

b) Just-in-Time (JIT) Inventory Control

c) Program Evaluation and Review Techniques (PERT)

d) Materials Requirement Planning (MRP)

The common name given to quality management and assurance standards.

a) Quality Control

b) Statistical Quality Control

c) ISO 14000

d) ISO 9000

A collection of the best practices for managing an organization’s impact on the environment.

a) Quality Control

b) Statistical Quality Control

c) ISO 14000

d) ISO 9000

A method for analyzing the tasks involved in completing a given project and estimating the time needed.

a) International Organizationfor Standardization(ISO)

b) Just-in-Time (JIT) Inventory Control

c) Program Evaluation and Review Techniques (PERT)

d) Materials Requirement Planning (MRP)

– The sequence of tasks that takes the longest time to complete

a) Critical Path

b) Assemly Line Layout

c) Process Layout

d) Statistical Process Control

A bar graph that shows what projects are being worked on and how much has been completed.

a) Quality Control

b) Gantt Chart

c) Organizational Chart

d) Form Utility

one company’s purchase of the property and obligations of another company.

a) Merger

b) Acquisition

c) Vertical Merger

d) Horizontal Merger