| A | B |
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| Which of the following is NOT a disadvantage of purchasing a franchise? | Rate of Failure |
| What percentage of a firm is typically sold to the public when a firm goes through an IPO? | 20-30% |
| Which of the following terms is typical in a credit line with a bank? | Owners of a small business must personally guarantee the loan |
| When Google when public in 2004, which of the following was not a part of the IPO strategy? | Investment bankers and brokers were allowed to reserve shares for their best customers |
| According to the SBA, what percentage of private sector workers do small businesses employ? | 52% |
| What percentage of family businesses manage to survive beyond the third generation? | 3% |
| Risk-averse managers will typically choose debt over equity when making a choice to finance the expansion of a firm. | FALSE |
| According to the SBA, what percentage of US businesses employ fewer than 20 people? | 87% |
| Power Distance is: | the extent to which people accept power and authority differences among people |
| If McDonald's is considering you as a franchisee, which of the following characteristics is most crucial? | Your previous business experience |
| Which country has the high cumulative US dollar value of FDI? | China |
| Which of the following reasons is typically not one of the top reasons for small business failure? | lack of initial capital |
| The SBA has specific guidelines that it uses to define a small business. They include the following except: | Has gross revenues less than 1 million |
| At what stage in life do most entrepreneurs tend to start their business? | Between the ages of 22 and 45 |
| The current franchise startup fee and initial royalty payments for a Padgett Business Services franchise opportunity are approximately: | 52,000 and 9% of gross revenues monthly |
| According to the SBA, what percentage of small businesses fail within their first 5 years of operation? | 60-80% |
| Which statement best describes "Creative Destruction"? | Capital flows to those businesses that will use it most efficiently |
| Which of the following is typically not a defining characteristic of entrepreneurs? | Rigidity |
| What are the prominent advantages of organizing a business as an LLC? | It limits liability and provides personal tax rates for owners |
| What would be the typical pricing for an IPO? | Between 10 and 20 dollars |
| Based on the guidelines of the SBA, what percentage of US businesses would be considered "small"? | 99% |
| Which of the following is the most crucial issue for the long term survival of a family firm? | Succession |
| The form of organization in which a set of product groups is superimposed on a functional design is called | Matrix |
| What type of departmentalization do banks typically use? | Customer |
| What form of organizational design does Martha Stewart employ? | Matrix |
| The number of people who report directly to a particular manager is known as | span of control |
| When we see two people together and we attribute the characteristics we learn about one individual to the other as well, this is termed: | Proximity |
| An organization where power and control are kept at the top levels of management is | Centralized |
| A wide span of control results in | a flat organization |
| All of the following are bases for departmentalization except | competition |
| GE is composed of the following strategic business units except: | Legal and Licensing |
| Which of the following is considered a disadvantage of bureaucracies? | Inversion of means and ends |
| Which of the following is not one of the characteristics of Weber's bureaucracy? | Personal Relationships |
| According to Fiedler's theory, which of the following is likely the best leadership style for a high school substitute teacher? | Take-oriented |
| What was a basic assumption in Fred Fiedler's approach to situational leadership? | Leadership styles are fixed so the situation should be matched to fit the leader's style |
| Which of the following would not be considered a characteristic of a transformational leader? | Searches for deviations from standard and task corrective action |
| Empirical research has failed to show that a 9,9 leadership style is universally superior | TRUE |
| According to the 2008 survey on Public Sector corruption by Transparency International, the United States: | Ranks in the top 20 of the list, indicating a relatively corruption-free environment |
| We watched a video on a manager dealing with an employee that was considered a technical Prima Donna. What was the outcome of the intervention? | The employee was fired |
| Based on its democratic government and transparency India has attracted far more FDI than China. | FALSE |
| The series of leadership studies conducted at the University of Michigan after WWII concluded that: | Leaders are either production-centered or employee-centered |
| Kurt Lewin, a German behavioral scientist in the 1930's, organized 10-year old boys in groups of five to examine the effect of three leadership styles. Which conclusion did he not come to as a result of the study? | Laissez-faire leadership produced the highest level of aggressive acts |
| We watched a video, "Buff and Gates Go Back to School." How would you describe Warren Buffet's attitude toward personal income tax rates in the US? | The US has a relatively flat tax system and wealthy individuals should pay higher marginal tax rates |
| In the Leadership grid, the ideal manager behavior is represented by a 9,9 "team" manager, who has a high concern for both____ and _____ | People; production |
| Which of the following is a general conclusion regarding leadership traits? | Leaders tend to be more intelligent that other group members, but not by too wide a margin |
| The authors of the Leadership grid are | Blake and Mouton |
| The transparency International Bribe Payers Surveys | Evaluate the supply side of corruption - the propensity of companies from industrialized countries to bribe abroad |
| According to Fiedler, which of the following was not one of the environmental factors that impacted the favorableness for a leader? | Least preferred coworker |
| In difficult situations, people with an external locus of control typically experience more frustration and an anxiety, as opposed to those with an internal locus of control | TRUE |
| In the U.S. stereotyping is expressively forbidden by law. | False |
| Which definition best fits the concept of perceptual inference? | We are required to diagnose our situation and make rapid inferences about it from scanty clues. |
| Studies have shown a strong relationship between job performance and job satisfaction. | FALSE |
| What percentage of communication typically takes place based on the actual words in the message? | 7% |
| When people in a meeting perceive verbal conversation as the message and miss the nonverbal messages, this is termed | figure-ground |
| Joyce’s coworkers get frustrated because she does not pull her share of the load, yet gets very positive evaluations. Ralph’s supervisor makes a point of praising her for being on time every morning. What is the likely perceptual error that the supervisor is making? | Halo Effect |
| A teacher was told that certain randomly selected students in her class were expected to make significant academic improvements that school year, based on the results of a fake test. At the end of the year, the performance of these randomly selected students was much greater than the other students, much to the surprise of the teacher when she was told about the experiment. | Pygmalion effect |
| Describe the “Fundamental Attribution Error” | The tendency to overestimate the influence of personality in understanding human behavior. |
| Studies of attribution theory have concluded | In the workplace, poor performance of employees is attributed to internal personal factors, especially for serious consequences. |
| Describe the Pygmalion effect. | We create our own social reality by influencing the behavior we observe in others |
| Which of the following is one of the Big Five Personality Traits? | Agreeableness |
| The best personality trait for predicting job performance & organizational citizenship is agreeableness | FALSE |
| Define self-efficacy. | Belief in your capability to perform a specific task. |
