Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Business Development
Q:
A business plan
a. is best for telling insiders about the company.
b. is more important than the final outcome.
c. is not the business.
d. will ensure success.
Q:
A(n) ________ is an organization formed to ensure that programs (projects) receive the proper management and attention.
Q:
The document that assists an entrepreneur and the management team in focusing on important issues and activities is
a. the organization chart.
b. the budget.
c. the sales analysis.
d. the business plan.
Q:
Match the following steps in Microsoft's development of Windows 8 to their respective WBS level.
Step Level
Develop Windows 8 Operating System ?
System Testing ?
Compatible with Windows 7 ?
Develop GUI's ?
Module Testing ?
A) Level 1, Level 2, Level 4, Level 3, Level 3
B) Level 1, Level 2, Level 3, Level 4, Level 5
C) Level 0, Level 1, Level 2, Level 3, Level 4
D) Level 0, Level 2, Level 2, Level 3, Level 3
E) Level 5, Level 3, Level 4, Level 1, Level 2
Q:
The short plan would have the least amount of information about
a. pricing.
b. supporting documentation.
c. competition.
d. distribution channels.
Q:
WBS stands for which of the following project management tools?
A) work break schedule
B) work breakdown status
C) work breakdown schedule
D) work breakdown structure
E) work break status
Q:
Jim is developing a business plan and has limited funds. Which person would be the best fit to offer assistance to Jim?
a. a lawyer specializing in business plans
b. a SCORE representative
c. a consultant in the industry Jim is trying to enter
d. an accountant
Q:
A project organization that becomes permanent is often referred to as a:
A) fixed project organization.
B) matrix organization.
C) normal organization.
D) standard organization.
E) permanent project organization.
Q:
Martin is creating the part of his business plan that includes the name, address, website, and logo of his company. Martin is working on:
a. the cover page. b. the table of contents.
c. the executive summary. d. the company description.
Q:
The project organization works best when which of the following conditions are satisfied?
I. Work tasks can be defined with a specific goal and deadline.
II. The job is typical and familiar to the existing organization.
III. The work contains interrelated tasks requiring specialized skills.
IV. The project is temporary but unimportant to long-term organizational success.
V. The project cuts across organizational lines.
A) I, II, III, IV, V
B) None of the above conditions need to be satisfied.
C) I, III, V
D) I, II, III, V
E) I, III, IV, V
Q:
Prentiss is writing about the potential lack of customer acceptance of his product and possible reactions from competitors. Prentiss is writing the ____________ of the business plan.
a. critical risks section b. executive summary
c. marketing plan d. exit strategy
Q:
Ethical issues that may arise in projects large and small include:
A) gifts from contractors.
B) exaggerated expense reports.
C) compromised quality standards to meet bonuses or avoid penalties related to schedules.
D) pressure to mask delays with false status reports.
E) all of the above.
Q:
A business plan is a written document that sets out the basic idea underlying a business and its related startup considerations.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
Q:
A code of ethics especially for project managers:
A) has been established by the Project Management Institute.
B) has been formulated by the Federal government.
C) has been formulated by the World Trade Organization.
D) is inappropriate, since everyone should use the same guidance on ethical issues.
E) does not exist at this time.
Q:
Because prospective investors receive so many business plans, they cannot take time to review each in any detailed fashion.
a. True
b. False
Q:
A project organization:
A) is effective for companies with multiple large projects.
B) is appropriate only in construction firms.
C) often fails when the project cuts across organizational lines.
D) is most helpful for ongoing projects with no termination date.
E) is most helpful when the work contains simple and unrelated tasks.
Q:
A business model explains how a business will generate profit and cash flow from its revenue streams considering its cost structure and investment size.
a. True
b. False
Q:
Ethical issues that can arise in projects include gifts from contractors, pressure to mask delays with false status reports, and pressure to compromise project quality to meet bonuses or avoid penalties related to schedules.
Q:
Investors are more product-oriented than market-oriented.
a. True
b. False
Q:
Project managers have their own code of ethics, established by the Project Management Institute.
Q:
A business plan should represent the entrepreneurs vision and goals for the proposed company.
a. True
b. False
Q:
Though all financial statements are important, the cash flow statement deserves special attention.
a. True
b. False
Q:
Work breakdown structure is a useful tool in project management because it addresses the timing of individual work elements.
Q:
With the right assistance from professional sources (e.g., attorneys, accounting firms, incubator services), the entrepreneur can avoid direct involvement in developing the business plan.
a. True
b. False
Q:
One responsibility of a project manager is to make sure that the project meets its quality goals.
Q:
Even if the business plan reveals sensitive information (e.g., details of an advanced technology or the specifics of a marketing plan), prospective investors can be trusted with that knowledge.
a. True
b. False
Q:
A project organization works best for an organization when the project resides in only one of its functional areas.
Q:
What are the three phases of a project? Describe each in a sentence or two.
Q:
Pro forma financial statements reflect the past financial performance of a firm.
a. True
b. False
Q:
Identify and explain the four basic global operations strategies. Give an example of each strategy.
Q:
A written business plan helps to ensure systematic, complete coverage of the important factors to be considered in starting a new business.
a. True
b. False
Q:
Once the decision is made to prepare a business plan, it should always be a comprehensive plan.
a. True
b. False
Q:
The ________ strategy describes a condition in which material, people, and ideas cross or transgress national boundaries.
Q:
The ________ strategy uses subsidiaries, franchises, or joint ventures with substantial independence.
Q:
Business plans should provide facts to support the statements and not just tell a story.
a. True
b. False
Q:
An extensive business plan that is not followed is more valuable than no business plan at all.
a. True
b. False
Q:
The ________ strategy uses exports and licenses to penetrate globally.
Q:
The ________ strategy utilizes a standardized product across countries.
Q:
The financial plan section of a business plan should include balance sheets and income statements on an annual basis and cash flow statements on a monthly basis, all projected out for 2-3 years.
a. True
b. False
Q:
A(n) ________ is a firm that has extensive involvement in international business, owning or controlling facilities in more than one country.
Q:
A business plan should always be written before deciding to go forward with a startup business idea.
a. True
b. False
Q:
Caterpillar and Texas Instruments are two firms that have benefited from the use of:
A) the multidomestic strategy option.
B) the international strategy option.
C) the transnational strategy option.
D) the maquiladora system in Europe.
E) the global strategy option.
Q:
Describing a product or service should be in lay terms even if the product is technical in nature.
a. True
b. False
Q:
The acronym MNC stands for
A) Mexican National Committee (for international trade)
B) Maquiladora Negates Competition
C) Maytag-Nestl Corporation
D) Multinational Corporation
E) Maritime Navigation Company
Q:
A business model's key resource requirements​ include only hard assets, such as equipment and buildings, not personnel and contacts.
a. True
b. False
Q:
A business plan is used to provide a statement of goals and strategies for use by company outsiders, and aid in the development of relationships with insiders.
a. True
b. False
Q:
Which of the international operations strategies uses the existing domestic model globally?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) worldwide strategy
Q:
Incubator organizations can provide advice on structuring a new business.
a. True
b. False
Q:
Which of the international operations strategies uses import/export or licensing of existing products?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) worldwide strategy
Q:
Which of the international operations strategies involves low cost reductions and low local responsiveness?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) worldwide strategy
Q:
Writing an effective plan is more important for internal purposes than for persons outside of the firm.
a. True
b. False
Q:
Time and money are factors that affect the extent of business plan preparation.
a. True
b. False
Q:
Which of the international operations strategies involves high cost reductions and high local responsiveness?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) worldwide strategy
Q:
One of the primary functions of a business plan is to serve as a selling document to convince key individuals that the venture has real potential.
a. True
b. False
Q:
Firms using the global strategy can be thought of as "world companies."
Q:
A loss leader is a revenue stream where products are sold at a loss to hopefully create sales in a more profitable revenue stream.
a. True
b. False
Q:
The multidomestic OM strategy maximizes local responsiveness while achieving a significant cost advantage.
Q:
A multinational corporation is a firm with extensive international business involvement.
Q:
Business plans should be prepared so that they are attractive in appearance and well organized.
a. True
b. False
Q:
A company is deciding between 2 foreign firms to provide its call center services. A factor-rating method is used. Factors are rated on a scale of 1-10, with 10 being the best score.
A: If the factors are weighted equally (respective weights of .3333), which firm is preferred?
B: Suppose a consultant recommended that Factor 2 be twice as important as Factor 1, while Factor 3 should be four times as important as Factor 1. Which firm is best now using a weighted method? (Round your weights to the nearest four decimal places.) Firm
Factor 1
Factor 2
Factor 3 A
10
7
4 B
5
8
6
Q:
The executive summary of a business plan presents a firm's history and its form of organization.
a. True
b. False
Q:
A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 30%, 10%, 20%, and 40%, respectively. Three potential providers were scored on each of those factors (see table below) using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Using the factor-rating method, which provider should be chosen? Provider A
Provider B
Provider C Client reviews
2
6
10 Financial condition
8
4
2 IT capabilities
5
8
2 Government stability
3
1
2
Q:
A family council is most effective when:
a. it is viewed as another type of casual get-together. b. works behind the scenes to maintain harmony between family and nonfamily employees.
c. it comprises both family and nonfamily members. d. it provides governance to the organization and engages in strategic planning and family succession planning.
Q:
A family retreat is designed to:
a. bring family members together to openly discuss business matters.
b. focus on business matters while avoiding extensive communication.
c. control the lines of communication.
d. announce the latest policy decisions and other changes in the business.
Q:
Identify five main disadvantages of outsourcing.
Q:
Identify five main advantages of outsourcing.
Q:
As the only son, Eduardos father expected to one day turn over management of the business to him despite Eduardos protests that he wanted no part of it. Following graduation from college, Eduardo realized he did not want his father to let some outsider take over the business. Eduardos commitment is based on:
a. family control. b. identification with the firm.
c. binding social ties. d. emotional attachment.
e. renewal of family bonds.
Q:
Identify three factors fueling the continuing growth of outsourcing.
Q:
To protect the interests of both the family and the business in a family business, the owner should:
a. recognize a basic obligation to supply the family with employment of some type.
b. refuse to hire family members but, instead, reward them with generous dividends.
c. personally make all personnel decisions affecting family members.
d. identify the positions, if any, that are reserved for members of the family.
Q:
The theory of ________ implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.
Q:
A family business constitution is sometimes labeled a _____.
a. business plan
b. by-law guide
c. family creed
d. succession plan
Q:
Outsourcing is an extension of the long-standing practice of ________ production activities.
Q:
Steve, Harry, and Chris, who own and operate a family auto parts store, are experiencing tough times during a downturn in the local economy. To help the store survive these conditions, the brothers agree to each take a 25 percent reduction in salary for a one-year period. This decision:
a. demonstrates a weakness of financial management.
b. illustrates an important advantage of a family business.
c. reveals a lack of customer orientation in a family business.
d. reflects a lessening of entrepreneurial ambition in second-generation businesses.
Q:
Outsourcing manufacturing is also known as ________.
Q:
Jim, the founder of a family business specializing in real estate, is contemplating turning the business over to his five children. One possibility, the founder believes, is to divide ownership equally among the children. This action would:
a. be next to impossible as gaining consensus from that many people is difficult.
b. be inherently unfair if any of the children work in the company.
c. potentially hinder the future functioning of the business.
d. require a possible change in corporate structure since the company deals in real estate.
Q:
________ is the practice of transferring a firm's activities that have traditionally been internal to external suppliers.
Q:
Which statement is the most correct about in-laws and possible complications in a family business?
a. Rarely do in-laws impact the business since they are only indirectly involved and have limited decision making responsibilities if at all.
b. In-laws may impact the business if they are employed in the firm and are responsible for decision making.
c. There will be a complication only when in-laws are competing against another family member for a promotion.
d. In-laws will impact the business as they increase the number of persons who are either directly or indirectly involved in the family business.
Q:
An operations manager is performing a factor-rating analysis to help him choose an outsourcing provider. He is focusing on two factors: A and B, using a weight of 75% for factor A and 25% for factor B. He has scored five different potential providers on both factors, using a scale of 1-5, with 1 representing the BEST score. Based on the scores provided in the table below, which provider should be chosen? Provider
Factor A
Factor B Alpha
1
5 Beta
3
3 Gamma
4
1 Phi
2
1 Omega
3
5 A) Alpha
B) Beta
C) Gamma
D) Phi
E) Omega
Q:
A benefit of strong family relationships is the greater willingness of family members to:
a. adopt new operating methods when needed.
b. act generously in compensating nonfamily employees.
c. sacrifice salaries and dividends when necessary.
d. emphasize short-run profits.
Q:
An operations manager is performing a factor-rating analysis to help her choose an outsourcing provider. She is focusing on three factors: A, B, and C, with weights of .50, .20, and .30, respectively. She has scored one potential outsourcer, Ling Services, on each of the factors using a scale of 10-50. Ling Services received a score of 30 for factor A, 46 for factor B, and 22 for factor C. What is the factor-rating score for Ling Services?
A) 98.0
B) 32.7
C) 21.8
D) 29.2
E) 30.8