SBM Final Exam

fancasket's version from 2016-12-12 18:51

Section 1

Question Answer
How do you define work force diversity?Differences among employees on such dimensions as gender, age, ethnicity, and race
What is the definition of promotion in a marketing context?Marketing communications that inform and persuade consumers
What is a profit plan?the set of steps that are taken by firms to achieve the desired level of profit
What are the best types of orientation programs?training/development: introduce staff, explain specific job duties, outline policies/procedures in detail, written description of company practices  
What is meant by delegation of authority?Granting to subordinates the right to act or make decisions

Section 2

Question Answer
What is meant by controlling operations?Managers must monitor operations to discover deviations from plans and to ensure that the firm is functioning as intended
Preventive controlinspecting raw materials, careful selection of employees
Concurrent controlquality control of work in process, check of adherence to safety procedures
Corrective controlinspection of completed product, comparison of actual expense with budgeted expense

Section 3

Question Answer
What is chain of command?The official, vertical channel of communication in an organization
From a recruiting perspective, what are the distinct advantages of a small firm?allows new managers to work more closely with CEO (often founder), which leads to quicker action
provides opportunities for new hires to make decisions and obtain general, high-level mgmt or professional experience
newcomers can quickly move into positions of responsibility in a well-managed SB
can structure work environment to offer professional, managerial, and technical personnel greater job variety and freedom

Section 4

Question Answer
What are the various sources of applicants for small firms?walk ins
help-wanted ads
public employment offices
private employment agencies
temporary help agencies
internet recruiting
employee referrals
executive search firms

Section 5

Question Answer
TIME BASEDdollar per hour
COMMISSIONbased on % of total sales
PIECEWORKfinancial incentive based on pay according to number of units produced

Section 6

Question Answer
Advantages of a sole proprietorshipsimplest and cheapest way to start an operation -owner is free form interference by partners, shareholders, directors
Disadvantages of a sole proprietorshipnlimited liability (personal assets can be taken by business creditors if it fails) -cannot benefit from tax-free fringe benefits (insurance) -business ruined if injured/dies

Section 7

Question Answer
How do managers create an innovative cultural environment?setting aside their ego and opening up to the ideas of others, supporting experimentation by through the elimination of unnecessary penalties for failure, and looking for an tapping into the unique gifts of all employees
What is a group incentive plan?team awards
What is an example of a group incentive plan?cash payments, time off, informal recognition
What is an employee stock ownership plan?Gives employees a share of ownership in the business -provide a way for owners to cash out and withdraw from a business without selling firm to outsiders -ex. share of annual profits may be designated for purchase of company stock which is placed in a trust for employees -Can motivate employees
What is a profit sharing plan?Many simply entail distribution of a specified share of all profits or profits in excess of a target amount -serves more directly as a work-related incentive in small companies bc the connection between individual performance and success can be more easily appreciated in a SB
What is the definition and what is involved in an operations process?processes used to create and deliver a product or service; conversion process -involved in changing inputs into outputs

Section 8

Question Answer
Product environment Inputsraw materials, labor, facilities, energy, workers and their skills
Produtc environments Processmaking product, storing finished product, shipping products to distributors
Product environment Outputfinished product
Service environment inputequipment, workers and their skills, materials to be serviced
Service environment Processretail transactions, labor
Service environment Outputscompleted service for customer

Section 9

Question Answer
What is the definition of capacityability to offer p/s
manufacturingproduction must meet average level of demand for particular time; determined by factory space, machinery, workers, etc.; manufacturer must avoid production disruptions and utilize machines and personnel effectively
servicelimited in ability to produce services and hold them in inventory; must wait until customer arrives; scheduling task for service firms relates to planning employees' working hours; some firms increase staff, use appointment systems, or take requests until the work can be scheduled

Section 10

Question Answer
ECONOMIC ORDER QUANTITYan index that determines that quantity to purchase in order to minimize total inventory costs
STATSITCAL INVENTORY CONTROLa method that uses a targeted service level, allowing statistical determination of the appropriate amount of inventory to carry
ABC METHODa system of classifying items in inventory by relative value
JUST-IN-TIMEa method of reducing inventory levels to an absolute minimum
PHYSICAL INVENTORY SYSTEMa method that provides for periodic counting of items in inventory
CYCLE COUNTINGcounting different segments of the physical inventory at different times during the year
PERPETUAL INVENTORY SYSTEMa method for keeping a running record of inventory
TWO BIN INVENTORY SYSTEMa method of inventory control based on the use of two containers for each item in inventory: one to meet current demand and the other to meet future demand

Section 11

Question Answer
What is span of control?The number of subordinates supervised by one manager
What does the successful combination of advertising media depend on?The business and its circumstances
Examples of successful combinations of advertising media depend onEx. a real estate sales firm may rely on local newspapers, institutional ads and internet
LARGE FIRMSMost employees never see chief executive -values of top-level executives must be filtered through many layers of mgmt to reach those making product
SMALL FIRMSPersonalized, loyalty -receive leader's messages directly -Purpose, high standards, achievement

Section 12

Question Answer
Advantages of home based businessp and running quickly and cheaply -have something interesting to do, and get paid for doing it -be your own boss -spend more time with family and friends -save time and money wasted on daily commutes
disadvantages of a home based business?hard to maintain professional image -zoning ordinances -tax issues -homeowner's policy isn't likely to cover business activities
Advantages of a corporationseparate entity from ppl who own it -it is liable for debts, not owners -limited liability of stockholders -transferable ownership
Disadvantages of a corporationif corp is unable to repay loans, banker can look to personal assets -double taxation

Section 13

Question Answer
What is the makeup of a strong management team?-can make the best of a good business idea by securing the resources needed to make it work -can bring greater strength to a venture than an individual entrepreneur can -can provide a diversity of talent to meet various managerial needs -provides greater assurance of continuity
What is a strategic alliance?an organizational relationship that links two or more independent business entities in a common endeavor
Strategic alliance examplesicensing contracts, working with long term outside contractors, entering production agreements, distribution-focused deals (Starbucks, Apple)
What is a management team?managers and other key persons who give a company its general direction

Section 14

Question Answer
What are the arguments for buying a location?cheaper overall, can treat assets as you wish, it's yours until you want to get rid of it, puts asset on books
What are the arguments for leasing a location?large cash outlay is avoided, risk is reduced by minimizing investment and by postponing commitments for space
What are the various forms of e-commerce?B2B
-Content based
-Info based
-Transaction based
Emerging models

Section 15

Question Answer
What is rate of return?the gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost
How is the rate of return calculated(Current value - original value) / original value) x 100
Advantages of a Partnership: can be set up quickly, avoiding many legal requirements of a corporation
-can become partners without contributing capital or claiming assets
-sharing workload/emotional/financial burden
Question Answer
disadvantages of a partnershipinterpersonal conflicts
-dissatisfaction with partner
-absence of one clear leader
-dilution of equity

Section 16

Question Answer
Debt-creates potential for higher rates of return to owners
-allows owners to retain voting control of the company
-exposes owners to greater financial risk
Question Answer
Equitylower potential rates of return
-loss of some voting control
-reduces financial risk
Question Answer
What is return on assets and how it it calculated?a measure of a firm's profitability relative to the amount of its assets
-operating profits/ total assets

Section 17

Question Answer
What advantages do small firms have over large firms when it comes to customer relationship?-personalized service
-address problems promptly
-flexible to market needs
Question Answer
What is CRM and how can it best be used?customer relationship management; a company-wide strategy that can be used to learn more about the needs and behaviors of customers with the specific purposes of building stronger relationships with them and optimizing profitability