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Q:
The new, separate relationship formed when an individual partners with another person plus the family connections acquired with the partner
Q:
Response-based competitive advantage can be:
A) flexible response.
B) reliable response.
C) quick response.
D) all of the above.
E) none of the above.
Q:
An organized group of family members who gather periodically to discuss family-related business issues
For each definition, select the term that best fits.
a. cousin consortium
b. family
c. family business
d. family council
e. family creed
f. family of attachment
g. family of origin
h. family retreat
i. organizational culture
j. owner-managed business
k. sibling partnership
l. socioemotional wealth
m. transfer of ownership
Q:
Which of the following is an example of competing on quick response?
A) A firm produces its product with less raw material waste than its competitors do.
B) A firm offers more reliable products than its competitors do.
C) A firm's products are introduced into the market faster than its competitors' products.
D) A firm utilizes its capacity more effectively than its competitors do.
E) A firm advertises more than its competitors do.
Q:
Franz Colruyt has achieved low-cost leadership through:
A) effective use of voice mail.
B) plastic, not paper, shopping bags.
C) background music that subtly encourages shoppers to buy more.
D) converting factories, garages, and theaters into retail outlets.
E) exclusive use of the Euro.
Q:
A statement of principles intended to guide a family firm through times of crisis and change
Q:
Which of the following is the best example of competing on low-cost leadership?
A) A firm produces its product with less raw material waste than its competitors do.
B) A firm offers more reliable products than its competitors do.
C) A firm's products are introduced into the market faster than its competitors' products are.
D) A firm's research and development department generates many ideas for new products.
E) A firm advertises more than its competitors do.
Q:
Non-financial factors in a family firm that affect the commitment of family members to the business
Q:
The process by which a more-experienced person guides and supports the professional progress of a new or less-experienced employee
Q:
Experience differentiation:
A) isolates the consumer from the delivery of a service.
B) is an extension of product differentiation in the service sector.
C) uses only the consumer's senses of vision and sound.
D) keeps consumers from becoming active participants in the service.
E) attempts to make the service experience different for every single customer.
Q:
A gathering of family members, usually at a remote location, to discuss family business matters
Q:
Which of the following best describes experience differentiation?
A) immerses consumers in the delivery of a service
B) uses people's five senses to enhance the service
C) complements physical elements with visual and sound elements
D) consumers may become active participants in the product or service
E) All of the above are elements of experience differentiation.
Q:
Couples teams who own and manage businesses
Q:
The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is:
A) sensory response.
B) time-based competition.
C) differentiation.
D) flexible response.
E) experience differentiation.
Q:
An organization in which either the individuals who established or acquired the firm or their descendants significantly influence the strategic decisions and life course of the firm
Q:
Which of the following is an example of competing on the basis of differentiation?
A) A firm manufactures its product with less raw material waste than its competitors do.
B) A firm's products are introduced into the market faster than its competitors' products are.
C) A firm's distribution network routinely delivers its product on time.
D) A firm offers more reliable products than its competitors do.
E) A firm advertises more than its competitors do.
Q:
A business in which children of the founder become owners and managers
Q:
Which of the following statements best characterizes delivery reliability?
A) a company that always delivers on the same day of the week
B) a company that always delivers at the promised time
C) a company that delivers more frequently than its competitors
D) a company that delivers faster than its competitors
E) a company that has a computerized delivery scheduling system
Q:
The practice of employing relatives
Q:
The ability of an organization to produce goods or services that have some uniqueness in their characteristics is:
A) mass production.
B) time-based competition.
C) competing on productivity.
D) competing on quality.
E) competing on differentiation.
Q:
________, the act of employing relatives, is often associated with favoritism.
For each definition, select the term that best fits.
a. co-preneurs
b. cousin consortium
c. family
d. family business
e. family business constitution
f. family council
g. family retreat
h. mentoring
i. nepotism
j. organizational culture
k. owner-managed business
l. sibling partnership
m. socioeconomic wealth
Q:
A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT:
A) customization of the product.
B) setting equipment utilization goals below the industry average.
C) speed of delivery.
D) constant innovation of new products.
E) maintaining a variety of product options.
Q:
A founder's core values may become part of the family business culture because:
a. the founder typically knows what is best for the companys culture.
b. others in the firm absorb traditions and values established by the founder.
c. the values coincide with modern management theory.
d. family members follow family traditions without excessive analysis.
Enter the appropriate word(s) to complete the statement.
Q:
Which of the following is LEAST likely to be a low-cost leadership competitive advantage?
A) low overhead
B) effective capacity use
C) inventory management
D) broad product line
E) mass production
Q:
The close relationship of business factors and family concerns in a family business has been described as:
a. separation of domains.
b. a generational gap.
c. an example of blood being thicker than water.
d. overlapping.
Q:
Low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value.
Q:
Experience differentiation is an extension of product differentiation, accomplished by using people's five senses to create an experience rather than simply providing a service.
Q:
Fran and Bob (who are married) own and manage a cleaning service. A potential advantage of this arrangement is that:
a. differences of opinion about the business wont carry over into family lives since they will see each other more hours daily.
b. it affords the opportunity to share more of their lives and build something together.
c. the business isnt likely to dissipate their energies as they can each work on separate sections.
d. they can count on working fewer hours in the business.
Q:
What is the difference between a firm's mission and its strategy?
Q:
Patricia, a nonfamily employee of a family business, is concerned about competing with family members for future career opportunities. To protect her personal interests, she should:
a. align herself with the CEO to hopefully know when new positions will become open.
b. ask that the owner/manager clarify the extent of opportunities considering her skill set.
c. seek assurances that she will receive first consideration for promotion, ahead of family members who are not as qualified.
d. be realistic enough to leave the firm and seek employment in a nonfamily business.
Q:
A common problem for a founder in passing the business on to a daughter or son is:
a. introducing the child to outsiders such as bankers.
b. finding a suitable position for the son or daughter within the business.
c. arranging the transition from part-time to full-time employment.
d. deciding whether the child has the necessary temperament and ability.
Q:
The ________ is how an organization expects to achieve its missions and goals.
Q:
Brandon always came in second--in birth order, in school and sports, and in his fathers heart. When his older brother decided not to take over the family business as expected, Brandon was paralyzed with fear. This paralysis was likely based on:
a. fear of failure. b. fear of success.
c. fear of commitment. d. fear of disappointing his friends.
Q:
A strategy is a(n):
A) set of opportunities in the marketplace.
B) broad statement of purpose.
C) simulation used to test various product line options.
D) plan for cost reduction.
E) action plan to achieve the mission.
Q:
As the spouse of the founder of Stonyfield Farm, Meg Cadoux Hirshberg serves the family business in a typical but critical role of
a. making impartial decisions on controversial business matters when her husband, Greg, asks.
b. filling the role of a company director so as to provide balance in family matters.
c. mediating family disputes.
d. supporting Greg through the many hours the business requires.
Q:
According to the authors, which of the following strategic concepts allow firms to achieve their missions?
A) productivity, efficiency, and quality leadership
B) differentiation, cost leadership, and response
C) differentiation, quality leadership, and response
D) distinctive competency, cost leadership, and experience
E) differentiation, distinctive competency, quality leadership, and capacity
Q:
Which of the following statements is true?
A) Corporate mission is shaped by functional strategies.
B) Corporate strategy is shaped by functional strategies.
C) Functional strategies are shaped by corporate strategy.
D) External conditions are shaped by corporate mission.
E) Functional area missions are merged to become the organizational mission.
Q:
The family endured great hardships together in the old country but vowed they would always watch out for each other in America. Together they built a thriving business; it was the Muellers against the world. This familys commitment is based on:
a. family control. b. identification of family members with the firm.
c. binding social ties. d. renewal of family bonds through dynastic succession.
Q:
The fundamental purpose of an organization's mission statement is to:
A) create a good human relations climate in the organization.
B) define the organization's purpose in society.
C) define the operational structure of the organization.
D) generate good public relations for the organization.
E) define the functional areas required by the organization.
Q:
Senior management will be more receptive to the junior generation advancing if the junior generation
a. decides what time is best for their personal lives.
b. prepares for ownership by concentrating on learning big picture skills as opposed to basic management skills.
c. designs life plans for themselves and the business that involves what happens if the business fails.
d. proactively shares their preparation for advancement and asks for advice for implementation.
Q:
Which of the following statements about organizational missions is FALSE?
A) They reflect a company's purpose.
B) They indicate what a company intends to contribute to society.
C) They are formulated after strategies are known.
D) They define a company's reason for existence.
E) They provide guidance for functional area missions.
Q:
A parent might attempt to resolve a transfer of ownership by giving active children in the firms management _____ stock and giving nonactive children _____ stock.
a. preferred, common
b. growth, speculative
c. common, preferred
d. more, less
Q:
Which of the following activities takes place most immediately once the mission has been developed?
A) The firm develops alternative or back-up missions in case the original mission fails.
B) The functional areas develop their functional area strategies.
C) The functional areas develop their supporting missions.
D) The ten OM decision areas are prioritized.
E) Operational tactics are developed.
Q:
A nonfamily employee of a family business complains that the recent promotion of a family member was unfair. The owner should:
a. enter into a discussion of the roles and opportunities for both family members and outsiders.
b. clarify that family members always have the inside track, even though this fact is disappointing to the bypassed employee.
c. get the employee to think more positively by describing other attractive features of the employee's job.
d. acknowledge that a tension always exists and that it can never be dealt with satisfactorily.
Q:
An organization's strategy is the purpose or rationale for its existence.
Q:
To avoid a stifling atmosphere for nonfamily employees in a family business, the owner should:
a. promote only nonfamily members.
b. avoid all special consideration for family members.
c. make clear the extent of opportunity for nonfamily members.
d. minimize discussion about future management changes.
Q:
Since the early 1990s, residents in a number of developing countries have overcome culture, religious, ethnic, and political productivity barriers. These disappearing barriers coupled with simultaneous advances in technology, reliable shipping, and cheap communication have all led to the growth of what three things?
Q:
What step is best for parents to decrease succession conflict among children active in the firm and those who are not?
a. Letting those not involved in the company have a larger portion of an inheritance outside of the company and allow those involved in daily operations have more ownership of the business.
b. Letting the next generation reach a consensus about management of the company.
c. Changing the ownership of the company so common (voting) stock is only given to those active in the company and others receive preferred (nonvoting) stock.
d. Making decisions based on tax considerations, not what is best for the next generation or the business.
Q:
State two examples of cultural and ethical issues that face operations managers in a global environment.
Q:
Bob and his sister Betty are co-owners of their late parents business. Bob actively manages the business; Betty supplies only capital from her inheritance but does not work in the business. They squabble over the distribution of profits from the business. Bob likely sees his sister as a ___________ while Betty views her brother as a _____________.
a. predator, parasite b. co-owner, employee
c. parasite, predator d. stockholder, manager
Q:
How do global operations attract new markets?
Q:
In considering the role of younger family members, the best philosophy is to recognize that
a. a child should have a right to a job in the business if he or she desires.
b. no family member should be hired at any level.
c. children should have a right to choose their own careers.
d. sibling rivalry will always be an issue with second-generation managers.
Q:
How can global operations improve the supply chain?
Q:
In preparing for succession, the senior generation has certain responsibilities. One of these is that:
a. the estate of the senior generation should be settled and audited.
b. the senior generation should hold the next generation accountable for their actions.
c. the business should have a formal audit of the financial statements.
d. the next generation should develop long term plans for leadership and be held to these plans.
Q:
Jane and Joe are experiencing a strain with their family relationship after running their family business for 5 years. Which issue might be the most likely underlying cause of the tension?
a. Jane is the CEO while her husband is the CPA.
b. Joe started the business but has stepped down from the CEO position.
c. Jane and Joes roles have not been carefully defined as the business has grown.
d. Their difference of opinions about a business matter is spilling over into their family time.
Q:
Identify five countries from which Boeing's 787 Dreamliner has suppliers.
Q:
Liams mentor had worked with him for several months to prepare him for the promotion. Now that the offer has been made, Liam is hesitant. His hesitation is likely based on:
a. fear of failure. b. fear of success.
c. fear of commitment. d. fear of disappointing his mentor.
Q:
An organization that has worked to achieve global uniformity in cultural and ethical issues such as bribery, child labor, and environmental regulations is ________.
Q:
The recruiter from IBM made William an offer almost too good to be true. The problem was Williams dad, who always expected William to join him in running the family business. Williams difficulty in accepting either offer may be based on the fear of:
a. failure. b. success.
c. commitment. d. disappointing his father.
Q:
________ and ________ are two issues where significant cultural differences are large, yet progress toward global uniformity is slowly being accepted.
Q:
After college graduation, Terrence was expected to begin working in the family business but instead he continued to lead the playboy life, always postponing his decision about working for his father. Terrence probably has a fear of:
a. failure. b. success.
c. commitment. d. disappointing others.
Q:
________ is a free trade agreement among Canada, Mexico, and the United States.
Q:
Family retreats, which open lines of communication,
a. use the founding entrepreneur as a communication facilitator.
b. avoid discussing sensitive issues for best results.
c. involve family members but not in-laws.
d. may result in formation of a family council to continue discussion.
Q:
________ are areas located along the United States-Mexico border in which factories receive preferential
tariff treatment.
Q:
Mayers philosophy of never using debt to finance operations or expansion was born during the Great Depression and passed on to his sons when they joined the family business. Today the multi-million dollar organization proudly follows Mayers practice under the leadership of Mayers great-grandsons and -daughters. This familys commitment is based on:
a. family control and influence. b. identification of family members with the firm.
c. binding social ties. d. emotional attachment of family members.
Q:
With reference to cultural and ethical issues, the World Trade Organization has:
A) eliminated bribery.
B) made progress in providing equal protection of intellectual property among nations.
C) phased out all trade and tariff barriers between the United States and Mexico.
D) eliminated slave labor and child labor.
E) played little role in addressing cultural and ethical issues among nations.
Q:
Living over the workshop made it easy to involve the children in the daily business decisions. They knew from the time they could write they were expected to work in and eventually manage and own the business. This familys commitment to the business is based on:
a. family control and influence. b. identification with the firm.
c. binding social ties. d. renewal of family bonds to the firm through dynastic succession.
Q:
The purpose of NAFTA is to:
A) substitute cheap labor in Mexico for expensive labor in the United States.
B) curb illegal immigration from Mexico to the United States.
C) phase out all trade and tariff barriers between North America and South America.
D) phase out all trade and tariff barriers between the United States, Canada, and Mexico.
E) provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico.
Q:
Which of the following does NOT represent a valid reason for globalizing operations?
A) reduce costs
B) improve the supply chain
C) reduce responsiveness
D) attract and retain global talent
E) understand markets
Q:
From the children's standpoint, one common reason that they may be reluctant to join the family firm is a desire to
a. make a difference in another industry.
b. prove their abilities without family assistance.
c. make a higher rate of pay.
d. help the parent avoid favoritism.
Q:
Which of the following represents a reason for globalizing operations?
A) to improve the supply chain
B) to improve operations
C) to expand a product's life cycle
D) to attract and retain global talent
E) all of the above
Q:
Allan opened a hot dog stand in Central Park, New York City. He owns it and operates it six days a week, year round. What kind of business is this?
a. A sibling partnership b. A franchise
c. A cousin consortium d. An owner-managed business
Q:
An inherent problem for couples involved in a family business is that
a. conflicts in the business tend to carry over into family life.
b. hours of work may become longer for one person.
c. uneven division of labor, i.e., one person is only responsible for the menial tasks.
d. some husbands find their masculinity threatened when their wives are better managers.
Q:
Which of the following is true of maquiladoras?
A) They discourage foreign businesses from outsourcing.
B) They assess tariffs only on the value-added work done.
C) They originated in China.
D) None of the above
E) All of the above
Q:
Bella decided to hire a nonfamily member as her successor instead of selecting one of her children. What might explain her decision?
a. Bella didnt think her children wanted the job. b. Bella wanted to bring in new skills and expertise.
c. Bellas children could never agree on anything. d. The competition had stepped up its game.
Q:
The term maquiladora is most synonymous with:
A) free trade zones in Mexico.
B) Chinese forced labor camps.
C) home-based or cottage industry.
D) areas that do not meet U.S. standards for workplace safety and pollution.
E) tax breaks provided by some South American countries to other South American countries.
Q:
Multinational organizations can shop from country to country and cut costs through:
A) lower wage scales.
B) lower indirect costs.
C) less stringent regulations.
D) lower taxes and tariffs.
E) all of the above.
Q:
Discuss guidelines for a successful family business retreat.
Q:
A document that states the principles intended to guide a family firm through times of crisis and change, including the succession process, is called the:
a. business plan
b. articles of incorporation
c. family business constitution
d. corporate by-laws
Q:
Which of the following did the authors NOT suggest as a reason for globalizing operations?
A) reduce costs
B) improve the supply chain
C) pursue stockholder approval ratings
D) understand markets
E) attract and retain global talent