Q&A Hero

Q: Under which of the following treaties are Canada, the United States, and Mexico gradually eliminating tariffs and all other trade barriers? A) The EURO Agreement B) The Pan-American Agreement C) The North American Free Trade Agreement D) The General Agreement on Tariffs and Trade E) The G-3 Free Trade Agreement

Q: What is the psychological orientation of a decision maker who makes a "maximin" choice? A) optimist B) realist C) pessimist D) idealist

Q: Which organization created the classification of countries based on per capita income? A) The World Bank B) The World Trade Organization C) The International Monetary Fund D) The European Union E) The North American Free Trade Agreement

Q: Which organization was developed to promote economic and cultural cooperation among Asian countries? A) ASEAN B) UAS C) EU D) NAFTA E) ECOWAS

Q: When problems are ________, managers must rely on ________ in order to develop unique solutions. A) structured; nonprogrammed decision making B) structured; pure intuition C) unstructured; nonprogrammed decision making D) unstructured; programmed decision making

Q: Which country in the Pacific Asia region has one of the world's largest economies? A) South Korea B) China C) Indonesia D) Japan E) Taiwan

Q: Nonprogrammed decisions ________. A) involve standardized solutions B) are usually made by lower-level managers C) are associated with clear and specific goals D) are unique and nonrecurring

Q: Which country is the world's largest marketplace and most stable economy? A) The United States B) Canada C) Germany D) Japan E) China

Q: After nearly 30 years of growth, sales at Ida's company have begun to decline. None of the managers have been able to determine the cause. Some say the entire economy is in recession; others blame a change in suppliers; still others say the work ethic among employees just isn't what it used to be. This is an example of ________. A) a structured problem B) an unstructured problem C) a programmed problem D) a non-programmed problem

Q: What are products that are created domestically and transported for sale abroad? A) Dumped goods B) Exports C) Imports D) Buy backs E) Domestic goods

Q: Unstructured problems ________. A) refer to the usual problems faced by organizations B) are generally solved using procedures, rules, and policies C) are accompanied by ambiguous or incomplete information D) do not require the decision maker to go through an involved decision process

Q: What are products that are created abroad and then transported and sold domestically? A) Dumped goods B) Exports C) Imports D) Buy backs E) Domestic goods

Q: A(n) ________ typically contains an ambiguous term that leaves interpretation up to the decision maker. A) rule B) procedure C) edict D) policy

Q: What is the advantage to starting a business from scratch instead of buying an existing business? A) There is a proven ability to attract customers. B) Profit is generated sooner. C) There is a stronger relationship with lenders and other stakeholders. D) There are no ill-effects from the previous owner. E) There is a clearer picture of what to expect in terms of start-up.

Q: "We expect to maintain the highest standards of quality in our workmanship." This is an example of ________. A) a procedure B) a rule C) a policy D) a practice

Q: Which key element of a business plan will determine inventory, size of space required, and number of employees needed? A) Financial planning B) Comparing existing businesses C) Sales forecasting D) Setting goals and objectives E) Identifying strategies and how to implement them

Q: A policy ________. A) typically serves as a guideline for decision making by setting general parameters B) specifically states what should or should not be done C) is a series of sequential steps a manager uses to respond to a structured problem D) is used when dealing with unstructured problems and non-programmed decisions

Q: What is the first step in becoming an entrepreneur? A) Deciding to proceed B) Formulating a business plan C) Identifying distinctive competencies D) Searching for capital to invest E) Implementing plans and opening

Q: "Smoking and the consumption of alcohol are strictly prohibited inside the work Premises." This is most likely an example of a(n) ________. A) rule B) objective C) procedure D) policy

Q: What is first mover advantage? A) The concept that the first in the market will make the most money B) The concept that a firm who exploits an opportunity before others has an advantage C) The concept that there is an advantage in leaving a market when it becomes flooded D) The concept that large organizations cannot take advantage of an opportunity as quickly as an entrepreneur E) The concept that there is more risk being first, but also more reward, if successful

Q: "All employees must be at their work stations and ready to work by the time the buzzer sounds." This is an example of ________. A) a policy B) a procedure C) a practice D) a rule

Q: Which distinctive competency must an entrepreneur identify when attempting to enter a market segment that is not currently being exploited? A) The ability to identify new markets B) The ability to identify niche markets C) The ability to differentiate themselves from others in the market D) The ability to gauge prices to get the highest return without driving away customers E) The ability to move quickly to take advantage of new opportunities

Q: A(n) ________ is an explicit statement that tells a manager what can or cannot be done. A) agenda B) objective C) rule D) solution

Q: Which of the following helps entrepreneurs gain skills that are essential for running a business? A) ESOP B) SBIC C) SEC D) LLC E) SBA

Q: One of the workers in Henry's department submitted his two weeks' notice so Henry needs to hire a replacement. The HR department issued a set of instructions Henry must follow to initiate the search for candidates. In other words, there is a ________ Henry must follow. A) policy B) practice C) procedure D) program

Q: Which of the following is federally licensed to borrow money from the Small Business Administration to invest in or lend to small businesses? A) SCORE B) SBICs C) SBDC D) FDIC E) SEC

Q: A procedure is ________. A) an explicit statement that tells a manager what can or cannot be done B) a series of sequential steps a manager uses to respond to a structured problem C) used mainly for unstructured, rather than structured, problems D) subject to the interpretation of the decision maker

Q: Which of the following are groups of small investors seeking to make profits on companies with rapid growth potential? A) Community banks B) Venture capital companies C) Equity managers D) Government securities dealers E) Stock brokers

Q: When making a decision for a routine situation, which step in the decision making process can be skipped? A) identify the problem B) evaluate decision effectiveness C) develop alternatives D) implement the alternative

Q: What is the major drawback of accepting venture capital? A) Sharing company control B) Having to pay high interest rates C) Limiting expansion D) Facing a short repayment period E) Having to write proposals

Q: Harriet's machine has stopped working again. She consulted the operator's manual troubleshooting guide to find a solution. Harriet used a ________. A) programmed decision B) non-programmed decision C) structured decision D) non-structured decision

Q: What does a start-up company need in order to estimate the required size of a plant, store, or office, inventory levels, and size of staff? A) Sales forecast B) Tax estimate C) Business objective D) Stock options E) Funding source

Q: A(n) ________ decision is a repetitive decision that can be handled by a routine approach. A) nonprogrammed B) structured C) unstructured D) programmed

Q: Who constitutes the membership of SCORE? A) Retired executives B) Venture capitalists C) Company officers D) Commercial lenders E) Successful entrepreneurs

Q: Structured problems align well with which type of decisions? A) programmed B) analogous C) organic D) nonlinear

Q: Garrett looked at the list of orders for the coming week and made out the production schedule. He has done this so many times he could do it in his sleep. This situation represents a(n) ________. A) structured problem B) unstructured problem C) linear problem D) programmed problem

Q: What is the MOST important source of money for new business start-ups? A) Banks B) The SBA C) Personal resources D) Government grants E) Venture capital

Q: ________ are straightforward, familiar, and easily defined. A) Programmed problems B) Structured problems C) Non-structured problems D) Nonprogrammed problems

Q: What is considered to be a significant disadvantage of owning a franchise? A) Start-up costs B) Operational guidelines C) Difficulty obtaining loans D) Double taxation E) Competition

Q: What does an entrepreneur use to summarize his or her business strategy for a proposed new venture? A) Success chart B) Director's guideline C) Financial blueprint D) Business plan E) Balance sheet

Q: Give an example of evidence-based management. Remember to include all of the essential elements.

Q: What is intuitive decision making? How does intuition affect the process of making a decision?

Q: Explain entrepreneurship and describe key entrepreneurial characteristics.

Q: Most successful entrepreneurs have a strong desire to be their own bosses.

Q: Give an example of the use of bounded rationality. The example can be fictitious as long as it includes all the elements of bounded rationality.

Q: People who assume the risk of business ownership with a primary goal of growth and expansion are called entrepreneurs.

Q: What is meant by bounded rationality and satisficing?

Q: Briefly, discuss the assumptions of rationality and the validity of those assumptions.

Q: When an entrepreneur has the goals of growth and expansion, with the vision of turning the business into a large business, what term is used when referring to the business? A) Visionary B) Small Business C) Diversification D) Start-up E) Expansionist

Q: What term is most closely associated with enterprises that pursue entrepreneurship with the goal of independence from working for someone else with a reasonable degree of financial security? A) Vision B) New ventures C) Small business D) LLC E) Dominance

Q: Intuitive decision making complements rational decision making but not bounded rational decision making.

Q: What is the process of seeking business opportunities under conditions of risk? A) Investment B) Entrepreneurship C) Leadership D) Diversification E) Growth

Q: The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong.

Q: Which of the following BEST defines those who assume the risk of business ownership? A) Entrepreneurs B) Customers C) Corporate partners D) The Small Business Administration E) Banks

Q: According to the concept of bounded rationality, managers make decisions rationally, but are limited by their ability to process information.

Q: How is the U.S. economy affected by small businesses?

Q: One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.

Q: The Small Business Administration (SBA) may consider a business with as many as 1500 employees to be small as long as it has low annual revenues.

Q: It is important that decision-makers ignore emotions when making business decisions so their decisions will be perceived as rational.

Q: Major innovations are most likely to come from large corporations.

Q: Managers use decision-making in every function, from planning to controlling.

Q: Most businesses in the United States are large businesses with more than 500 employees.

Q: Farrah has called together her management team to review information about customer satisfaction gathered by an external research company. Farrah is engaging in ________. A) perfect rationality B) bounded rationality C) evidence-based management D) relationship management

Q: Intuitive decision making ________. A) is the systematic use of the best available evidence to improve decision making practice B) generally results in poor decisions and hence managers should learn to ignore their gut feelings C) is the process of making decisions based on experience, feelings, and accumulated judgment D) complements rational decision making but not bounded rational decision making

Q: Small businesses produce more patents per employee than large patenting firms.

Q: Which of the following is an aspect of intuition? A) experience-based decisions B) quality-initiated decisions C) science-based decisions D) programmed decisions

Q: The Small Business Administration is the government agency charged with owning small businesses.

Q: Farrell has a knack for selecting candidates who become very successful workers. When asked how he does it, he answered that he "listened to his gut." Farrell is really ________. A) using his intuition B) using bounded rationality C) using perfect rationality D) satisficing

Q: The contribution a small business on the U.S. economy is measured based on its impact to which economic systems? A) Bank loans, and contributions to big business B) International trade, interest rates, and the service industry C) Bank loans and innovation D) The service industry, the stock market, and job creation E) Job creation, contributions to big business, and innovation

Q: Edgar hired a graduate from his alma mater, thinking he would be a successful first line supervisor. Unfortunately the new hire hasn't worked out as well as hoped. Edgar decided to invest time and money in training for the new hire but saw little improvement. Next he assigned a successful supervisor to mentor the young employee. The problems persisted. Edgar is displaying ________. A) bounded rationality B) irrational behavior C) poor judgment D) escalation of commitment

Q: In a small business, who determines prices for wholesalers and customers? A) Customers B) Franchise owners C) Market forces D) Small business administration E) Small business owners

Q: Julie is keen on joining Columbia University to pursue a master's degree in economics. However, after three months of applying and waiting for an acceptance letter, she finally decides to attend NYU, which was one of her backup colleges. This is an example of ________. A) maximizing B) neutralizing C) minimizing D) satisficing

Q: When an investor is not interested in owning their own business, why do they need to understand entrepreneurship? A) To understand why someone would want to work so hard for a small return B) To determine the key characteristics of success C) To understand how to convert a great idea to a profitable idea D) To assess the market potential for up-and-coming businesses E) To learn how to set up a business plan

Q: Abigail is shopping for a new copier for her company. She has set her price range between $5,000 and $6,000. The copier must handle a minimum of 10,000 copies per month and have a useful life expectancy of five years. If Abigail selects the first copier she finds that meets these criteria, we would say she is ________. A) using perfect rationality B) using bounded rationality C) using intuition D) satisficing

Q: Which of the following can assist a small business and helps to determine standards based on industry? A) The U.S. Department of Commerce B) The Small Business Administration C) A franchise D) Venture capitalist E) The Small Business Development Center

Q: Gilda has an idea that would streamline operations, reduce costs, and increase profits. Her idea requires the cooperation of several departments, some of which have demonstrated a resistance to change. By considering the context in which the changes must happen and the people in her organization, Gilda is using ________. A) evidence-based management B) bounded rationality C) intuition D) positive employee relations

Q: Why is it difficult to compare relative job growth for different-sized businesses? A) Sourcing up-to-date employment figures is difficult. B) Many small businesses experience rapid unreported growth. C) Spheres of influence overlap between the small and big business sectors. D) Staff size of small businesses tends to change faster than staff size of big businesses. E) It is hard to determine the cutoff point at which a small business becomes a large business.

Q: ________ results in a solution that is considered "good enough." A) Escalating B) Linear thinking C) Intuition D) Satisficing

Q: Which of the following types of venue is favored by small-business retailers? A) Superstore B) Catalog showroom C) Specialty shop D) Department store E) Studio workroom

Q: Managers cannot possibly analyze all information on all alternatives; they tend to ________, rather than ________. A) maximize; satisfice B) neutralize; satisfice C) satisfice; neutralize D) satisfice; maximize