1. Many small businesses do not have a formal human resources department, which potentially leads to _______.

A. inconsistent priorities

B. diminished size

C. increased informality

D. increased entrepreneurial control

E. competitive disadvantage

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2. Which of the following is an advantage to keeping the human resource function informal in a small business?

A. It allows for flexibility in regards to compensation regulation and laws.

B. It is easier and quicker to react to changing competitive conditions.

C. It decreases data entry errors and duplication of confidential employee information.

D. It eliminates the competitive disadvantage of using Web-based HR tools.

E. It allows for more focused expertise in solving staffing issues.

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3. What is the advantage to implementing human resource management practices in a small business?

A. There is a positive impact on performance.

B. The small size of the business makes it cost effective.

C. There is increased flexibility.

D. Costs are lower.

E. There is a consistent focus on entrepreneurial priorities.

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4. Which of the following should small business owners refer to as a means to determine which laws apply to their small business?

A. EEOC

B. O*NET

C. Predictive Index

D. Department of Labor

E. OSHA

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5. Which of the following should a small business owner check out to find information on industry-specific safety checklists?

A. EEOC

B. O*NET

C. OSHA

D. Department of Labor

E. Predictive Index