Q&A Hero

Q: Labor planning determines employment stability.

Q: Lines of credit are legal obligations to provide capital. a. True b. False

Q: What is mutual trust? What is its link to a firm's human resource strategy?

Q: Martina wants to expand her business. She will need to buy a larger facility and equip it with additional machinery. She should look into the SBA loan program that provides long-term financing for small businesses to acquire real estate or machinery and equipment called the: a. 7(m) Microloan Program. b. 7(a) Loan Guaranty Program. c. Certified Development Company 504 Loan Program. d. Small Business Investment Program.

Q: What is quality of work life? What is its relation to a firm's human resource strategy?

Q: Generally, as long as a firm's operating income return on its assets in greater than the cost of debt, the owners' return on equity investment will decrease as the firm uses more debt. a. True b. False

Q: ________ means a job that is not only reasonably safe and for which the pay is equitable but that also achieves an appropriate level of both physical and psychological requirements.

Q: Althouth not the primary source of financing for most small business startups, another source of early financing is: a. family members. b. commercial banks. c. business suppliers. d. asset-based lenders.

Q: The objective of a human resource strategy is to: A) produce the demand forecast at the lowest possible labor cost. B) match employment levels with demand. C) achieve a reasonable quality of work life at low cost. D) manage labor and design jobs so people are effectively and efficiently utilized. E) hire the most diversified workforce possible.

Q: If a company has a signed purchase order from a creditworthy customer and the gross profit margin on the order is anticipated to be 36 percent, purchase-order financing is likely. a. True b. False

Q: Venture capital companies a. are often limited partnerships that raise capital from other investors. b. provide for the financing needs of large companies only. c. are corporations or partnerships that operate as liquidation groups. d. no longer operate in the U.S. market.

Q: Mutual trust is: A) when employees have gained the trust of management. B) reflected in reasonable, documented employment policies that are honestly and equitably implemented to the satisfaction of both management and employee. C) when management has gained the trust of the employees. D) when management recognizes that the employees are competent, motivated people both able and willing to perform at the level required to produce a quality product. E) when management and the employees both agree on common objectives.

Q: Assets such as the quality of a firm's employees are considered tangible in nature and thus have substantial value as collateral. a. True b. False

Q: Which of the following best describes mutual commitment in an organization? A) an instance in which management is committed to the employees and the employees are committed to management B) both management and the employees are committed to the same objective C) both management and the employees are committed, but to different objectives D) management obtains the commitment of the employees to a stated objective E) both management and the employees can rely on each other

Q: Williams Alternative Power, Inc. a company developing solar panels, is applying for a loan. The research the company has done for the manufacturing process would be a(n) _____ asset for the loan evaluation. a. collateral b. intangible c. revolving d. tangible

Q: Most pit crew members have background experience in what area? A) mechanical engineering B) athletics C) car mechanics D) automobile race driving E) No specific areacrew members come from all sorts of backgrounds.

Q: A NASCAR pit crew consists of how many members? A) 7 B) 5 C) 9 D) 10 E) 4

Q: When a stock sale is restricted to private placement, an entrepreneur can avoid many of the demanding requirements of the securities laws. a. True b. False

Q: Technology, location, and layout decisions are all possible constraints on human resource strategy.

Q: Floyds income statement showed for the current year his company had an operating income of $45,000 and his balance sheet showed total assets of $300,000. His return on assets is _________ percent. a. 30 b. 15 c. 12 d. 6

Q: For every firm, there is a "right" answer to the question of balancing debt and equity, and it is important that the small business owner find that balance. a. True b. False

Q: Mutual trust means that both management and employee strive to meet common objectives.

Q: Equitable pay alone cannot achieve a reasonflexible manufacturing system able quality of work life in an organization.

Q: Chuck, Marie and Tommy are a group of friends who have formed a LLC to raise capital for an investment in 20 franchises of Rigbys, a new sports bar concept. Tommy will be the general partner; Chuck and Marie will be limited partners. These three are: a. business angels. b. formal venture capitalists. c. creditors. d. informal venture capitalists.

Q: The objective of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized.

Q: Borrowing money rather than issuing common stock typically increases the potential for higher rates of return to owners. a. True b. False

Q: Cameron has applied for a loan to expand his young business. When bankers look for evidence of whether he will be able to repay a loan, they usually base their assessment on a. what Camerons firm has done in the past. b. what Cameron says the firm will do in the future. c. the opinion of investment analysts. d. the business plan of the enterprise.

Q: Ethical work environment decisions by managers may be guided by which of the following? A) state agencies B) trade associations C) insurers D) employees E) all of the above

Q: Suppose that a time study analyst takes a sample of size 60 observations. The process mean is 100 seconds, and the standard deviation is 3 seconds. If the max error can be no more than 1 second, how confident can the analyst be in the results?

Q: Qualified small businesses that cannot obtain business loans through normal lending channels can get loans directly from the SBA through its 7(a) Loan Guaranty Program. a. True b. False

Q: If the firms rate of return on its assets is _____ than the cost of borrowing, then the owners rate of return on equity will _____ as the firm uses _____ debt. a. less, decrease, less b. greater, decrease, more c. greater, increase, more d. less, increase, more

Q: In a time study, what is the required sample size to be 95% confident that the observed average time is within 2% of the actual value, if the process has a standard deviation of 1 minute and mean of 50 minutes?

Q: A manufacturing plant is trying to determine standard production per day for an incentive program. Suppose that the incentive program will pay $1 per unit produced above standard rates. A worker is timed at an average of 280 seconds per unit, with a performance rating of 105%. The plant has an allowance factor of 13%. If the worker later produces 100 units in an 8 hour shift, how much would he receive under the incentive plan?

Q: Asset-based lending is a type of financing secured by assets such as equipment and inventory. a. True b. False

Q: An initial analysis of a laboratory activity resulted in the first table below. After this analysis, the managers determined that their element descriptions were not as accurate as they should have beenthey had left out an element, underestimated a distance, and understated the need for accuracy. They revised the table of element data, which appears in the second table. Original Activity: Pouring tube specimen Element description Element code TMU Get tube from rack AA2 35 Get stopper, place on counter AA2 35 Get centrifuge, place at sample tube AD2 45 Pour (3 sec.) PT 83 Place tubes in rack (simo) PC2 40 TOTAL TMU Revised Activity: Pouring tube specimen Element description Element code TMU Get tube from rack AC3 70 Get stopper, place on counter AA2 35 Get centrifuge, place at sample tube AD2 45 Pour (3 sec.) PT 83 Get stopper, place on tube AC1 40 Place tubes in rack (simo) PC2 40 TOTAL TMU Calculate the total standard minutes for the original activity "pouring tube specimen." Calculate the total standard minutes for the revised activity "pouring tube specimen." What is the increase, in seconds, from the first version to the second? (Round calculations to four decimal places.)

Q: When considering a loan application, bankers will consider: a. the credit score of the applicant. b. the four Cs of credit c. the five Cs of credit. d. the applicants character only.

Q: An operation in a television factory has an average observed time of 6 minutes. The performance rating of the worker timed was estimated at 90%. Practice in this department is to provide 8% for allowances. a. Find the normal time for the operation. b. Compute the standard time for the operation. c. Recompute the standard time if an additional fatigue allowance of 8% is factored in.

Q: Companies that have business dealings with a new firm are possible sources of funds for financing inventory and equipment. a. True b. False

Q: A task involves positioning two metal parts with a rubber gasket sandwiched between them, inserting two bolts into predrilled holes, threading a nut onto each bolt, and tightening each bolt with a pneumatic wrench. In a preliminary study, the manager observed one of his workers performing this task five times. The observations were made in an air-conditioned, well-lit training facility, at ground level, with all tools and equipment clean and readily available. Observation: 1 2 3 4 5 Task time (seconds): 50 54 60 66 56 a. What is the average observed time for this task? b. What is the normal time for this task if the employee worked at a 10% slower pace than is typical for adequately trained workers? c. What is standard time for this task if allowances sum to 14%?

Q: In the beginning, some entrepreneurs use ____________ as a source of financing. a. asset-based lenders. b. personal credit cards c. wealthy individuals. d. venture capitalists.

Q: A Methods and Measurements Analyst needs to develop a time standard for a certain task. The task involves use of a ruler, square, and portable electric saw to mark and cut the "notch" in a rafter (a standard carpentry task of home construction). In a preliminary study, he observed one of his workers performing this task five times. The observations were made in an air-conditioned, well-lit training facility, at ground level, with all tools and equipment clean and readily available. Observation: 1 2 3 4 5 Task time (seconds): 82 74 80 83 76 a. What is the actual average time for this task? b. What is the normal time for this task if the employee worked at a 20% faster pace than is typical for adequately trained workers? c. What is standard time for this task if allowances sum to 14%? d. If the analyst then thought more carefully about his experiment and decided that the allowances needed to be increased to match the real (outside, not air-conditioned) work environment, and that the proper allowance was not 14% but 20%, what is the revised standard time?

Q: Most startup investors limit their investing to firms that offer potentially high returns within a one to three year period. a. True b. False

Q: A brake system installer in an auto factory has an actual average time of 10 minutes on her task. The performance rating of the worker timed was estimated at 110%. Practice in this department is to allow 9% for allowances. a. Find the normal time for the operation. b. Compute the standard time for the operation.

Q: People like Ben who "bootstrap" company financing are a. enhancing the "corporate image" of the enterprise by the way they raise capital. b. depending on their own initiative to obtain the capital necessary to start up and grow. c. subordinating future capital formation to short-term financial performance. d. waiting to establish a reputation in the marketplace before raising the bulk of the needed capital.

Q: The amount of trade credit available to a new company is dependent on the suppliers confidence in the firm and not the type of business. a. True b. False

Q: In a preliminary work sample of an operation, out of 50 observations the operator was observed idle in 5 observations. What sample size is required for a work sampling study if the desired confidence level is 99% and the desired accuracy level is 5%?

Q: Which financing source has the greatest advantage of speed? a. local bank b. credit card c. angel investor d. venture capitalist

Q: A work sampling study requires an acceptable error level of 10 percent and 95 percent confidence. a. What is the required sample size if the sample proportion busy is as large as 50 percent? b. What is the required sample size if the sample proportion busy is estimated to be about 20 percent?

Q: Crowdfunding works strictly with individual donations made over the Internet. a. True b. False

Q: How many observations would be necessary for a time studies analyst to be 99% confident that the average time is within .1 minutes of the true value, if the average time is 10.5 minutes and the standard deviation is 3 minutes?

Q: Granville owns a construction company and would like to purchase a mobile construction office. The bank would likely offer him a _____ mortgage. a. chattel b. real estate c. revolving d. term

Q: A time study of a certain service task found an average time of 15 minutes, with a standard deviation of 5 minutes. These figures were based on a sample of 100 measurements. Is the sample large enough that we are 95% confident that standard time is within 5% of its true value?

Q: Debt financing as opposed to equity financing allows owners to retain voting control of the company. a. True b. False

Q: What are three disadvantages of work sampling?

Q: What are five advantages of work sampling over time-study methods?

Q: A loan covenant is very likely to require a. a bank officer on the board of advisors. b. salary limitations. c. voting rights. d. a fixed business strategy.

Q: Small business owners sometimes accept higher levels of debt because doing so permits them to retain all of the stock and full ownership. a. True b. False

Q: Identify the five steps of the work-sampling procedure.

Q: Small business investment companies (SBICs) a. are licensed and regulated by the Federal Trade Commission. b. may lend funds or supply equity funds. c. obtain part of their capital from local governments at attractive interest rates. d. provide only short-term financing.

Q: What are predetermined time standards?

Q: In time studies, what are the three broad categories of allowances?

Q: State and local governments are becoming less involved in financing new businesses. a. True b. False

Q: Define standard time.

Q: Irwin has applied for a loan from an asset-based lending company. As security he will offer: a. land and buildings. b. accounts receivable and inventory. c. equipment and buildings. d. inventory and equipment.

Q: If historical experience data are so widely available and so easy to obtain, why aren't they more widely used to set labor standards?

Q: The private sale of a firm's common stock is regulated by the Securities and Exchange Commission. a. True b. False

Q: A drawback to going public is a. large profit potential resulting in increased taxation. b. numerous SEC requirements. c. national recognition causing increased exposure. d. additional working capital.

Q: List the eight steps used to develop a time study-based labor standard.

Q: Explain in broad terms, using a sentence or two, what is meant by the "classical stopwatch study." To what extent is it still in use today?

Q: The main advantage of using credit cards for financing is the relatively low interest rate compared to bank loans. a. True b. False

Q: Elena plans to open a non-profit child-care center in her depressed neighborhood. She may qualify for an SBA loan program that provides loans of up to $50,000 known as the: a. 7(a) Loan Guaranty Program. b. 7(m) Microloan Program. c. Certified Development Company 504 Loan Program. d. Small Business Investment Program.

Q: ________ estimates the percent of time that a worker spends on various tasks.

Q: ________ divide(s) manual work into small basic elements that have established and widely accepted times.

Q: A small business that needs to purchase real estate could apply for a 7(a) guaranty loan. a. True b. False

Q: Penelope is planning to launch her first business. She will most likely acquire her initial financing from: a. venture capitalists. b. personal savings. c. wealthy individuals. d. the securities market.

Q: A(n) ________ involves timing a sample of a worker's performance and using it as a basis for setting a standard time.

Q: If a firm finances with equity rather than with debt, it will bear no interest expense and thus yield greater net income. a. True b. False

Q: ________ allowances are those that account for the distance from employees to restrooms, water fountains, and other facilities.

Q: Joann is buying an existing convenience store. When she considers which bank to use, her best choice would be: a. a national bank that processes credit card payments. b. the credit union where she is already a member. c. a bank close to her store. d. the largest one in her town, which is located on the other side of town from her store.

Q: A disadvantage of work sampling is that: A) it tends to be less accurate, particularly when task times are short. B) it observes several workers simultaneously. C) it is more expensive than time-study methods. D) it is more intrusive than time-study methods, and therefore generates more complaints. E) All of the above are disadvantages of work sampling.