MGT 190 – To make teams effective in the workplace, managers

Q1. To make teams effective in the workplace, managers should: a. start by establishing “make-nice” teams whose sole job is to create a friendly team environment. b. assign poor performers to key teams so that other high-performing employees on the teams can improve the less motivated workers’ performances. c. make at least part of team members’ pay dependent upon team performance. d. All of the above.Q2. A __________ layout arranges displays in a rectangular fashion so that aisles are parallel; it is a formal layout that controls the traffic flow through the store and is often used in supermarkets and drugstores. a. Grid b. free-form c. boutique d. spiralQ3. An entrepreneur who wants to open a bed and breakfast inn in an area that is zoned “residential” is going before the local zoning board seeking a(n) __________, a special exemption to the zoning ordinance that would allow her to locate her business in this area. a. exception b. variance c. redemption d. exclusionQ4. Which of the following questions is illegal in an interview? a. Do you drink alcohol? b. Why should we hire you? c. Have you ever been arrested? d. Is there any limit to your ability to work overtime or to travel?Q5. A __________ is relatively small, containing from three to twelve stores and serving a population of up to 40,000 people who live within a 10-minute drive. a. neighborhood shopping center b. community shopping center c. regional shopping mall d. power centerQ6. Empowerment works best when a manager: a. trusts workers to do their jobs well. b. trains workers continuously to upgrade their skills. c. listens when workers have ideas, solutions, or suggestions. d. All of the above.Q7. “Cool” companies: a. demonstrate a respect for work and life balance. b. value diversity in the work force. c. create and support a learning environment among employees. d. All of the above.Q8. According to a study by Jupiter Communications, setting up an e-commerce site takes most companies at least __________ to complete. a. one month b. six months c. one year d. two yearsQ9. The biggest barrier to exporting facing small companies that have never exported is: a. not knowing how or where to start. b. government regulations that make it nearly impossible for small companies to export. c. the lack of products and services that would sell successfully in foreign markets. d. intense competition in international markets from major multinational corporations.Q10. Which of the following statements about an initial public offering (IPO) is true? a. Although an IPO can generate large amounts of capital for a company, it can be an expensive, time-consuming process filled with lots of regulatory “red tape.” b. An IPO is an excellent source of funds for an entrepreneur searching for the capital needed to launch a new business. c. For the typical small business, the cost of making an initial public offering is just 2 percent of the capital raised. d. All of the aboveQ11. Which of the following statements about shopping malls is true? a. The average length of shoppers’ mall visits has climbed steadily over the past decade. b. To keep shoppers coming back, malls are adding a mix of entertainment attractions and a fresh mix of specialty shops to their retail mix. c. Nearly half of the malls in the United States are less than five years old. d. All of the above.Q12. To obtain needed space for a company, ________ is a common choice because it is economical. a. leasing b. building c. renovating d. designingQ13. Studies show that __________ percent of first-generation family businesses fail to survive into the second generation, and of those that do survive, __________ make it to the third generation. a. 20; 81 b. 40; 75 c. 70; 12 d. 90; 24Q14. An entrepreneur trying to find a location for a sporting goods store has decided to use the index of retail saturation as a guide. She knows that Site 1 has a trading area with 42,374 potential customers who spend an average of $87.50 on sporting goods per year. The only competitor in the trading area has 16,000 square feet of selling space. Site 2 has 38,649 potential customers spending an average of $91.25 per year on sporting goods. In this trading area, two competitors occupy 17,100 square feet of space. The index of retail saturation for Site 2 is: a. 182.86 b. 206.24 c. 231.73 d. None of the above.Q15. In a _________ layout, a manufacturer arranges workers and equipment according to the sequence of operations. a. process b. product or line c. fixed position d. functionalQ16. Which of the following is a strategy for building a successful e-business? a. Focus on a niche market. b. Attract customers by giving away “freebies” and then sell to them. c. Make sure your Web site says “credibility” to customers. d. All of the aboveQ17. More than __________ percent of all companies in the United States are family-owned. a. 20 b. 40 c. 60 d. 90Q18. Business incubators: a. combine low-cost, flexible rental space with a multitude of support services for their small business residents. b. give small companies a greater chance for success by offering them valuable business services as well as connections to funding sources and management consulting. c. improve their residents’ survival rates; d. All of the above.Q19. A __________ is an agreement between an exporter’s bank and a foreign buyer’s bank that guarantees payment to the exporter for a specific shipment of goods. a. bank draft b. letter of credit c. promissory note d. freight draftQ20. A __________ is a specially designated area that allows resident companies to import materials and components from foreign countries; assemble, process, package, or manufacture them; and then ship finished products out while incurring lower tariffs and duties, or in some cases, eliminating them altogether. a. enterprise zone b. business incubator c. foreign trade zone d. export zoneQ21. Small companies that operate globally are able to: a. offset sales declines in the domestic market. b. extend their products’ life cycles. c. raise their levels of quality and customer-orientation. d. All of the above.Q22. When a company is doing business in a country that lacks the cash to pay for imported goods or whose currency is basically worthless outside that country’s borders, it: a. should stop doing business there. b. can use bartering. c. can use countertrading. d. can use bartering or countertrading.Q23. A __________ Web site is one that visitors are willing to share with their friends because they find it to be useful, informative, or just plain fun. a. sticky b. viral c. collaborative d. robustQ24. A __________ trust is a special type of irrevocable trust that has become one of the most popular tools for entrepreneurs seeking to transfer ownership of their companies while maintaining control over it and minimizing their estate taxes. a. bypass b. irrevocable life insurance c. irrevocable asset d. grantor retained annuity trustQ25. One important characteristic of Web surfers is that they are patient. a. true b. falseQ26. A __________ is an exemption from the Security and Exchange Commission’s full-blown registration process that is designed to make it easier and less expensive for small companies to make initial public offerings. The ceiling on this type of issue is $1 million, and the price of the shares must be at least $5. a. Regulation S-B b. Regulation A c. Small Company Offering Registration (SCOR) d. Direct Public OfferingQ27. A small company using factoring would prefer which type of factoring arrangement? a. with recourse b. without recourse c. exempted d. None of the above. A small company should never use factoring as a source of financing because of its excessively high risks and costs.Q28. . According to the textbook, the fastest growing market for U.S. small business exporters is: a. Brazil b. Malaysia c. China d. PhillipinesQ29. Online newsletters should be kept to about: a. 600 words b. 2000 words c. 6 pages d. 20 pagesQ30. Which area of a retail store would be least valuable? a. the main floor in a multistory building b. the intersection of two primary aisles c. the right rear corner of a store d. the right front corner of a storeQ31. A business owner seeking money to purchase a building and the equipment needed to launch a welding shop would need which kind of capital? a. Fixed b. working c. growth d. disposableQ32. The average Web user spends nearly __________ hours online each week. a. 2 b. 6 c. 16 d. 25Q33. What drives the choice of the “best” site for a small business? a. the owner’s preferences in finding a good place to live b. customer traffic c. cost d. available rental spaceQ34. What can e-businesses do to enhance customers’ trust in their Web sites? a. post a privacy policy on their sites and stick to it. b. clearly explain shipping costs and return policies. c. protect and respect their customers’ privacy online. d. all of the above.Q35. The first place entrepreneurs in search of startup funds should look is: a. their own pockets. b. relatives and friends. c. venture capitalist firms. d. angels.Q36. To finance her inventory of cars, auto dealer Sarah Ann Lopez would most likely rely on which type of loan? a. commercial bank loan b. line of credit c. floor plan d. installment loanQ37. Which of the following statements concerning business location is false? a. Analyzing the characteristics of an area’s residents gives entrepreneurs the facts they need to make an informed location decision. b. Assembling a demographic profile helps entrepreneurs determine how well a particular site measures up to their market profile. c. Entrepreneurs should avoid locating their businesses near competitors. d. Population density is an important location factor, especially for businesses that depend on high traffic for their success.Q38. This financing program spans 11 government agencies and is designed to encourage small companies to expand their research and development efforts in science and engineering and to develop new commercial products and services from those efforts. a. Small Business Innovation Research Program b. Small Business Technology Transfer Program c. Certified Development Company Program d. Urban Development Action Grant ProgramQ39. A(n) __________ is a loan arrangement with a commercial bank in which a small company can borrow up to a predetermined amount at any time during the year quickly and conveniently by writing itself a loan. a. commercial bank loan b. line of credit c. floor plan d. installment loanQ40. A foreign sales company is a shell company created in an approved U.S. territory or a foreign country that allows a business to reduce its U.S. income tax liability by _____ on earnings from foreign trade. a. 5% to 15% b. 15% to 30% c. 30% to 50% d. More than 30%Q41. When a bank becomes a __________ lender under the Small Business Administration’s loan program, the bank makes the final decision on a small company’s loan application (subject only to review by the SBA) but still receives the security of the SBA’s loan guarantee. a. certified b. preferred c. authorized d. conferredQ42. Which of the following statements concerning e-commerce is true? a. Once an entrepreneur launches a Web site, customers typically flock to it even without advertising and promoting the site. b. More than 90 percent of all commercial Web sites are profitable. c. Web retailers invest more of their revenues in marketing and advertising than traditional, “off-line” retailers do. d. Because of the security precautions modern technology provides, customer privacy is not an important issue on the Web.Q43. In an interview, effective interviewers spend about __________ percent of the time talking. a. 25 b. 50 c. 75 d. 90Q44. Domain names can be registered with the U.S. Patent and Trademark Office. a. true b. falseQ45. __________ are privately-owned financial institutions that are licensed and regulated by the Small Business Administration; they use a combination of private and federally-guaranteed debt to provide long-term capital to small businesses. a. SBICs b. SBDCs c. LDCs d. UDAGsQ46. __________ banks are most likely to lend money to small businesses. a. Small b. Large c. International d. ForeignQ47. An entrepreneur trying to find a location for a sporting goods store has decided to use the index of retail saturation as a guide. She knows that Site 1 has a trading area with 42,374 potential customers who spend an average of $87.50 on sporting goods per year. The only competitor in the trading area has 16,000 square feet of selling space. Site 2 has 38,649 potential customers spending an average of $91.25 per year on sporting goods. In this trading area, two competitors occupy 17,100 square feet of space. Based on the index of retail saturation, which site should the owner choose? a. Site 1 b. Site 2 c. Neither one d. Impossible to tell from data givenQ48. Which of the following countries represents the top market for U.S. small business exporters? a. Japan b. Mexico c. Canada d. GermanyQ49. Genuine leaders: a. are self-appointed. b. know that their success is determined by their employees’ success. c. treat their employees severely to earn their respect. d. know that what they say to employees is more important than what they actually do.Q50. Web-based businesses invest ____ percent of revenue in marketing, compared to _____ percent for off-line businesses. a. 65, 4 b. 55, 8 c. 45, 16 d. 35, 32