24. A common characteristic of most entrepreneurs is that they
(A) possess a great deal of personal wealth.
(B)have a high level of scientific and technical expertise.
(C)have experience in running large, complex organizations.
(D) accept the risks involved in starting and managing a business.

1. Giant Bikes has 15 different bicycle models that can be created in over 1 million combinations. Each combination is designed to fit the needs of a specific customer. Therefore, the customer chooses the model, size, color, and design they want. An analysis of this company's operation would indicate that it uses (A) lean manufacturing. (B)mass customization. (C)continuous production. (D) flexible production

2.Given that measuring a firm's financial health is important to its survival, which of the following strategies is good advice for a person just starting a business? (A) Select an accounting system that helps you make decisions, and helps you report information to others outside your firm. (B)Accounting systems used by big business are not suitable for small businesses. (C)All transactions are important. Separating transactions only serves to create a perception that some transactions are of lesser importance than others. (D) Create a method for keeping your books that makes sense to you. Outside agencies such as creditors and suppliers will not evaluate you by the way you keep books.

3.According to Maslow's Hierarchy of Needs theory, which of the following would be an issue that requires the fulfillment of a lower-order need? (A) The need for a promotion at work. (B)The need to locate your business in an area with a low crime rate. (C)The need for a challenging project at work. (D) The need for a mentor to help you ascend within the company.

4. Ofthe following, which is NOT thought to be an advantage of teams within an organization? (A) new products developed faster at lower costs (B)increased organizational coherence (C)more innovation (D) employee job satisfaction

5. A comparison of the marketing concept and customer relationship management indicates that customer relationship management (A) and the marketing concept are in fact identical. (B)turns the marketing concept upside down. The marketing concept emphasized that marketing was the most important function performed by a firm, but customer relationship management views management to be the most important function. (C)extends the marketing concept by calling for the firm to learn more about its customers so that it not only satisfies them, but exceeds their expectations over time. (D) attempts to improve profits by keeping quality high, while the marketing concept attempts to improve profits by a careful design of the promotional mix.

6. With respect to taxes, the sole proprietorship (A) pays taxes only if there are no expenses associated with the business. (B)pays taxes on the profits of the business at the same rate that corporations pay taxes. (C)pays taxes on the profits of the business, at the owner's personal tax rate. (D) is permitted to determine its own tax rate and schedule of payments.

7. Alice Wang, a CEO of Business Success Company, encourages employees to participate in the decision-making process but does not give them complete freedom to do as they like. What is her leadership style? (A) democratic (B)monarchial (C)laissez-faire (D) autocratic

8. Experts in operations management for service industry businesses stress (A) using records from accounting to determine what business to go after. (B)training employees to always adhere to only one way of doing things. (C)relying on one's individual operation as opposed to developing partnerships. (D) training employees to please customers by anticipating their needs.

9. The proven success of job specialization lies in the fact that (A) it adds efficiency to the business's operation by identifying tasks that some do better than others. (B)it leads to groupthink. (C)it is a detractor to others who are thinking about entering your industry because it successfully creates barriers to entry. (D) it avoids the pitfalls of division of labor, where workers become removed from thinking conceptually about the business.

10. Mike Chen, a sales manager, just finished reading some sales statistics comparing his company's performance to that of competitors. The statistics sumnarize a mass of raw figures into a few meaningful measures that Edwin will use to determine whether he needs to change his sales strategy. The statistics in the printout are (A) an example of how managers have a tendency to oversimplify by reducing complex issues into a few simple numbers. (B) data, while the raw figures used to compute the statistics are information. (C)information, while the raw figures used to compute the statistics are data. (D) less useful to Edwin than the raw figures would have been, since summarizing the figures necessarily reduces their accuracy.

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