Small Business Management
Exam Questions
Course Introduction
Small Business Management explores the principles and practices essential for starting, operating, and growing a successful small business. The course covers foundational topics such as business planning, financing, marketing, customer relationship management, operations, and legal considerations unique to small enterprises. Students learn to develop business plans, analyze the competitive environment, and apply strategic decision-making skills to real-world business challenges. Emphasis is placed on innovation, leadership, risk management, and leveraging technology to create effective and sustainable businesses in todays dynamic marketplace.
Recommended Textbook
Fundamentals of Management Essential Concepts and Applications 10th Edition by Stephen P.
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19 Chapters
2671 Verified Questions
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Page 2
Chapter 1: Managers and Management
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139 Verified Questions
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Sample Questions
Q1) In a short essay, explain through examples how a process can be (a)efficient but not effective and (b)effective but not efficient.
Answer: (a)Efficient but not effective: A craftsman building a wooden table may be highly efficient in the way he uses his time, energy, and wood in producing his product.However, despite this efficiency, the craftsman may still end up with a rickety table, thereby not fulfilling his goal of building a strong, sturdy table and failing to be effective.
(b)Effective but not efficient: A craftsman may be inefficient and waste a great deal of time, energy, and wood in building a table.However, the table itself can turn out to be strong, sturdy, and beautiful, thereby fulfilling the goal of the process and qualifying the craftsman as effective.
Q2) Brenda's ability to determine what needs to be done and by whom is evidence that she excels at which management function?
A)planning
B)controlling
C)leading
D)organizing
Answer: D
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Page 3
Chapter 2: The Management Environment
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Sample Questions
Q1) Write a series of rules that a company could use to encourage its employees to be risk-takers and innovators.
Answer: 1.Don't look for the obvious answer to every question.
2.If you are doing the same thing that your competition is doing, then you are probably doing the wrong thing.
3.Be like a shark: if you aren't moving forward you begin to drown.
4."Dumb" ideas are useful.A person needs to go through 99 dumb ideas to get one "smart" idea.
Q2) Which kind of company would be less likely to fire its CEO after a poor performance?
A)a company with a symbolic view of management
B)a company with a realistic view of management
C)a company with an external view of management
D)a company with an omnipotent view of management
Answer: A
Q3) Gen Xers are generally the children of the Baby Boomers.
A)True
B)False
Answer: False
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Chapter 3: Integrative Managerial Issues
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Sample Questions
Q1) Which problems are women LEAST likely to face in today's workplace?
A)a gender pay gap
B)being outnumbered in the workplace
C)career interruptions due to childbirth
D)skepticism about whether they are qualified to do the job
Answer: B
Q2) Which of the following best characterizes a transnational corporation?
A)a single central home-country management
B)an organization in which multiple operations function with a large degree of autonomy
C)a loose alliance of totally separate, wholly independent companies
D)a company that eliminates geographical boundaries
Answer: D
Q3) If Shana's company decides to open operations in France but maintain company management in the United States, it would be considered a ________.
A)transnational corporation
B)global corporation
C)multidomestic corporation
D)joint venture
Answer: B
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Page 5
Chapter 4: Foundations of Decision Making
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Sample Questions
Q1) Uncertainty involves a situation in which the probability of a certain outcome is known to be small.
A)True B)False
Q2) Decision makers who seek information that matches what they already know are guilty of confirmation bias.
A)True
B)False
Q3) In allocating weights to the decision criteria, which of the following is most helpful to remember?
A)All weights must be the same.
B)The total of the weights must equal 100.
C)The high score should be a 10, and no two criteria should be assigned the same weight.
D)Assign the most important criterion a score, and then assign weights against that standard.
Q4) A highway speed limit is an example of a policy.
A)True B)False
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Chapter 5: Foundations of Planning
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Sample Questions
Q1) General Mills expanding its line so that it sells several different types of Cheerios is an example of which of the following?
A)concentration
B)horizontal integration
C)vertical integration
D)diversification
Q2) Most managers feel that formal, top-down plans created by corporate planning departments are ________.
A)very useful
B)usually unsatisfactory
C)very detailed
D)excellent
Q3) A major strength of formal planning is that it generally correlates with higher profits.
A)True
B)False
Q4) In a short essay, describe the first two steps in the strategic management process.
Q5) In a short essay, compare strategic plans and tactical plans.
Q6) In a short essay, discuss Porter's focus strategy.
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Chapter 6: Organization Structure
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Sample Questions
Q1) Woodward and more recent studies have concluded that mass production worked best with an organic organizational structure.
A)True
B)False
Q2) Traditional organizational designs tend to be more mechanistic and include
A)simple, complex, and divisional structures
B)simple, functional, and dysfunctional structures
C)functional, divisional, and vertical structures
D)simple, functional, and divisional structures
Q3) A simple structure is ________ like a mechanistic organization, but ________ like an organic organization.
A)centralized; informal
B)informal; decentralized
C)decentralized; formal
D)centralized; formal
Q4) All learning organizations share a distinct structure.
A)True
B)False
Q5) In a short essay, describe the characteristics of a simple structure.
Page 8
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Chapter 7: Managing Human Resources
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Sample Questions
Q1) In a short essay, discuss on-the-job training methods.
Q2) A realistic job preview (RJP)includes ________ a job.
A)only factual information about
B)only positive aspects of
C)only negative aspects of
D)both positive and negative aspects of
Q3) Which of the following is an advantage of using private employment agencies for recruiting?
A)low cost
B)candidates who are familiar with the organization
C)improves employee morale
D)careful screening of applicants
Q4) Which of the following is NOT a voluntary form of downsizing?
A)attrition
B)early retirement
C)job sharing
D)layoff
Q5) In a short essay, discuss why sexual harassment is such a difficult problem in today's workplace.
Page 9
Q6) In a short essay, discuss the written test as a selection device for HRM.
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Chapter 8: Managing Change and Innovation
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Sample Questions
Q1) Older workers tend to resist change more than younger workers because they
A)have less invested in the current system
B)have more invested in the current system
C)have confidence in themselves
D)have less to lose
Q2) An example of a change in structure is an organization becoming more decentralized.
A)True
B)False
Q3) An aggressive new competitor in the marketplace is an external force that creates a need for organizational change that companies frequently face today.
A)True
B)False
Q4) A manager who twists facts to make change seem less disruptive is using the technique of coercion.
A)True
B)False
Q5) In a short essay, define and discuss creativity and innovation in the workplace.
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Chapter 9: Foundations of Individual Behavior
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Sample Questions
Q1) North Americans seem to be much more likely to have ________ than people from Middle Eastern countries.
A)an internal locus of control
B)an external locus of control
C)no locus of control
D)a variable locus of control
Q2) ________ is the unique combination of psychological traits that describe a person.
A)Character
B)Intelligence
C)Behavior
D)Personality
Q3) Negative reinforcement is the withdrawal of something unpleasant.
A)True
B)False
Q4) In a short essay, discuss how locus of control can help explain individual behavior in organizations.
Q5) Individuals tend to attribute their own successes to external factors.
A)True
B)False
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Chapter 10: Understanding Groups and Managing Work Teams
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Sample Questions
Q1) The official forming stage of the group development process wasn't complete until group members ________.
A)experienced conflict
B)introduced one another
C)felt themselves a part of the group
D)got acquainted with one another
Q2) Teams composed of individuals with skills that are highly complementary to one another are called ________.
A)cross-functional teams
B)self-managed work teams
C)problem-solving teams
D)virtual teams
Q3) The team role of linker initiates creative ideas in a team.
A)True
B)False
Q4) Collectivist societies tend to have an enormous problem with social loafing.
A)True
B)False
Page 12
Q5) In a brief essay, discuss how managers can use training to shape team behavior.
Q6) In a short essay, discuss the first stage of group development.
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Chapter 11: Motivating and Rewarding Employees
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Sample Questions
Q1) Which of the following is true of the three early theories of motivation?
A)Maslow focuses on job satisfaction.
B)McGregor focuses on the basic needs of the individual.
C)Both McGregor and Herzberg focus on human nature.
D)McGregor focuses on positive and negative assumptions about human nature.
Q2) Workers with a Theory X point of view would be most likely to respond to ________.
A)kindness
B)a hands-off approach
C)fear of losing their job
D)freedom to modify their job
Q3) According to Maslow, a person stranded on a desert island would ________ before he or she worried about making weapons.
A)look for other people
B)build a house
C)start a family
D)establish his or her status on the island
Q4) Most U.S.employees are excited about their jobs.
A)True
B)False
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Chapter 12: Leadership and Trust
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Sample Questions
Q1) The behavioral theories of leadership became dominant around the early 1900s.
A)True
B)False
Q2) The ________ dimension reflects the degree of trust and respect subordinates had for their leader in Fiedler's model.
A)leader-member relations
B)position power
C)task structure
D)effectiveness
Q3) The path-goal theory sees the job of an effective leader as ________.
A)providing clear instructions for followers
B)clearing the path between followers and their goals
C)defining goals for followers
D)helping followers understand their goals
Q4) The behavioral theories of leadership began around this time.
A)1900-1920
B)1920-1940
C)1940-1960
D)1960-1980
Q5) In a short essay, describe the basics of situational leadership theory (SLT).
Page 15
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Chapter 13: Managing Communication and Information
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Sample Questions
Q1) Success in communication always involves reasoning skills.
A)True
B)False
Q2) The difference between male and female styles of communication exists
A)in every culture
B)only in the United States
C)only in western cultures
D)only in Asian cultures
Q3) One particularly effective form of providing feedback is for the receiver to ________.
A)raise a hand to show that the message was received
B)state "message received" out loud
C)restate the message in his or her own words
D)send a written message that states "message received"
Q4) In a short essay, describe the benefits of an employee being part of a fully networked organization.
Q5) In a short essay, explain how selective perception can serve as a barrier to effective communication.
Q6) In a short essay, explain how gender can affect communication.
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Q7) In a short essay, discuss the two best-known types of nonverbal communication.
Chapter 14: Foundations of Control
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Sample Questions
Q1) The control management function ensures that ________ in an organization.
A)goals are set
B)goals are met
C)plans are made
D)plans are realistic
Q2) A cell phone maker tests its new model with a sample audience when it is fully operational.What kind of control is this?
A)pre-market control
B)feedback control
C)concurrent control
D)feedforward control
Q3) What managers choose to measure is largely determined by A)what an organization does well.
B)the organization's structure.
C)the company's image.
D)the leaders and leadership style of those in the organization.
Q4) Employee theft amounts to less than $450 annually per worker in the United States.
A)True
B)False
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Chapter 15: Operations Management
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Sample Questions
Q1) A business model is ________.
A)a competitor that a company seeks to emulate
B)a strategic design for how a company intends to make profit
C)a theoretical ideal that a company seeks to emulate
D)an unrelated organization whose practices a company seeks to emulate
Q2) ________ is the process of managing the sequence of activities and information along the entire value chain for a product.
A)Supply chain management
B)Value chain management
C)Supply management
D)Customer management
Q3) In a short essay, explain how organizational barriers can be an obstacle to effective management of a value chain.
Q4) Because the nature of jobs can change quickly, value chain management companies often need to make a significant investment in ________.
A)heavy equipment
B)market research
C)light equipment
D)job training
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Chapter 16 : History Module
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Sample Questions
Q1) An entrepreneurial venture is much more likely to change an industry than a small business.
A)True
B)False
Q2) In a short essay, describe how an entrepreneur is like a jazz band leader.
Q3) After four years, ________ business.
A)56 percent of entrepreneurial ventures are out of
B)56 percent of entrepreneurial ventures are still in C)31 percent of entrepreneurial ventures are out of
D)two-thirds of entrepreneurial ventures are out of
Q4) A good way to ease into employee empowerment is to let employees share in decision making.
A)True
B)False
Q5) Uncovering business ideas, looking at competitors, and exploring financing options are part of this phase of the entrepreneurial process.
A)identifying competitive advantage
B)exploring business forms
C)researching the venture's feasibility
D)identifying potential opportunities
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Chapter 17: Quantitative Module
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Sample Questions
Q1) The Industrial Revolution made ________ necessary for manufacturing organization's success for the first time in history.
A)decentralization
B)customer satisfaction
C)product demand
D)management
Q2) Frank and Lillian Gilbreth got their ideas for management from the book Cheaper by the Dozen.
A)True
B)False
Q3) Henry Gantt's contribution to management theory was to develop efficient ways to schedule.
A)True
B)False
Q4) The shipbuilding facility in fifteenth-century Venice resembled ________.
A)an auto assembly line
B)how Silicon Valley workers design new software
C)how handmade sweaters are knitted
D)how a chef makes a superb pasta dish
Q5) In a short essay, describe how the work of Abraham Maslow influenced management.
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Chapter 18: Career Module
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Sample Questions
Q1) A company has a current ratio of 0.85 to 1.What should a manager in the company worry about?
A)The company has too many assets and is not using them efficiently.
B)The company has too much inventory.
C)The company may start to have trouble paying salaries.
D)The company is paying salaries that are too high.
Q2) Which role does uncertainty typically play in how managers function?
A)Uncertainty limits the amount of information that is available.
B)Uncertainty increases the amount of information that is available.
C)Uncertainty improves the quality of information that is available.
D)Uncertainty enhances the information that is available.
Q3) Mia, a manager at Best Buy, increases the order size for a product that the company sells, which will ________.
A)increase both ordering costs and carrying costs
B)increase ordering costs and decrease carrying costs
C)decrease both ordering costs and carrying costs
D)decrease ordering costs and increase carrying costs
Q4) An optimistic manager will typically follow a maximax choice.
A)True
B)False
Page 21
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Chapter 19: Entrepreneurship Module
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Sample Questions
Q1) One reason NOT to change jobs is to ________.
A)add new people to your network
B)keep your skills fresh
C)raise your income
D)keep your job tasks challenging and interesting
Q2) Even the prepared person cannot take advantage of luck unless he or she
A)is highly intelligent
B)can take action when opportunity knocks
C)can convince others to join his or her effort
D)puts in 16-hour days
Q3) The second step in constructing a career path is matching your strengths and interests to opportunities in the market.
A)True
B)False
Q4) Internet networking groups such as LinkedIn can provide valuable contacts.
A)True
B)False
Q5) Explain why it is better to be a specialist than a generalist in the work world.
Page 22
Q6) Explain why a college education is a good investment.
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