22) Using his own money and resources, Shawneewho had recently been laid off from his jobstarted a new business based on the innovative ideas that he himself had generated. This is an example of a(n)

a. entrepreneurship.

b. joint venture.

c. business incubation.

d. diversification strategy.

e. bootlegging venture.

23) Bianca is CEO of That Special Something, a chain of fifteen upscale gift shops in the western United States. She wants to expand her profits, and keep customers in the store for longer periods of time, by adding a small coffee and dessert shop to each store. With this in mind, Bianca is considering partnering with another company. Of the five candidates under consideration, the best choice would be the company

a. that offers coffee and baked goods at the lowest price, with an emphasis on maximizing profits and customer turnover.

b. that wants Bianca to handle all aspects of management related to the in-store coffee shops.

c. run by a CEO who insists on keeping full control of the coffee shops' marketing, staffing, and other elements.

d. with a go-with-the-flow attitude and a goal to turn a $2 million profit by the end of the first year.

e. that specializes in gourmet coffee and treats and is interested in helping host after-hours dessert and shopping events.

24) Kai needs to hire a new landscaping service to take care of the small garden outside his dental office. He knows what tasks he wants done and how much he is willing to pay per week, and he hires the first service that agrees to his terms. Such an action is referred to as

a. optimizing.

b. satisficing.

c. maximizing.

d. minimizing.

e. framing.

25) Advances in 3-D printing have made it easier and faster for manufacturers to create prototypes of new parts. These advances are an example of changes in the ________ environment.

a. technological

b. economic

c. political

d. demographic

e. biophysical

26) Marcia Chan, CEO of Western Medical, told her executive management team,"We enjoy ________ capabilitiesthat is, we have the basic administrative, personnel, and operational functions necessary to sell our services. But we need to build upon our higher-level ________ capabilitiesthose strategic activities that adapt rapidly to or even shape our business environment. Right now, we do the basic things right. But soon, I want us to be doing the right things at the right time. That will give us a sustainable competitive advantage."

a. strategic; tactical

b. ordinary; dynamic

c. internal; external

d. efficient; effective

e. methodical; fast-paced

27) Perfect Pasta plans to open five new stores before 2021. However, if the economy does not improve and if consumer confidence does not rise as hoped, it might open just two stores. This backup plan is an example of a(n) ________ plan.

a. dominant

b. strategic

c. contingency

d. emergency

e. tactical

28) For years, Kathleen served as head of the research and development (R&D) department at Bannerman Pharmaceuticals in Chicago. She enjoyed enormous support from her team, who liked her personally and respected her professionally. Now she has retired, and her place has been taken by Jerome from Bannerman's Cleveland facility. Yet employees continue to sidestep Jerome and come directly to Kathleen for guidance, calling or emailing her at home with questions. What is her best course of action?

a. to let employees know that she wishes she were still in charge, but Jerome is their boss now, and there is nothing anyone can do about that fact

b. to continually direct her former direct reports to Jerome while emphasizing the fact that, as the new director of R&D, he has authority over, and responsibility for, the team

c. to call Jerome and offer some advice regarding the techniques she has developed over the years for winning and keeping employees' loyalty

d. to let team members know that failure to respect Jerome will be regarded as a breach of protocol, and that they should no longer contact her

e. to willingly offer guidance to her former direct reports, as well as her replacement, and encourage them to involve her in settling any disputes

29) Using bribery as a business tactic may result in fines for U.S. firms. Which of the following types of environmental forces at work does this reflect?

a. competitive

b. economic

c. legal

d. technological

e. demographic

30) Which of the following is true of a contingency plan?

a. It primarily translates broad goals into specific ones.

b. It serves as an alternative when the initial plan fails to work or if events demand a sudden change.

c. It is normally used in stable environmental conditions.

d. It is seldom used by corporations to respond to major disasters.

e. It is sometimes referred to as a"why not" plan.

31) Which of the following is an example of collaboration across boundaries?

a. Allie, a bookkeeper, has an idea for keeping more efficient records of outstanding invoices, and she clears the idea with her accounting manager before implementation.

b. Jamal and Ursula are team members working on an ad campaign. Jamal suggests they include another team member to get their insights.

c. Veronika works in operations and is designing the new assembly line layout. She asks the procurement department which boxes would be most cost effective to use for shipping before she makes her decision about the shipping station design.

d. Mei stays late to stuff an important mailing in envelopes because her boss, an executive, needs the mailing to go out in the next morning's mail.

e. Gregory devises a standard form for company employees to use for service requests after conducting research about what other companies are using.

32) Managers who optimize their decisions will attempt to

a. choose the first, minimally acceptable alternative.

b. select the decision that is fastest to make.

c. find the least expensive option available in the market.

d. decide on whatever produces the least challenge or conflict.

e. achieve the best possible balance among several goals.

33) Rabia is developing contingency plans for her catering business. In other words, she is developing

a. the long-term direction and strategic intent of her company.

b. a set of broad goals and plans that can be turned into specific goals and plans.

c. a set of specific processes required at lower levels of an organization.

d. her organization's basic scope and purpose of operations.

e. a set of actions to be taken if events require a sudden change.

34) Tameka's father told her,"I admire your boldness, but I'm not sure that you should open that business. I've heard that entrepreneurs are essentially ________." Tameka replied,"That's a common myth. In fact, entrepreneurs take very careful, calculated risks and are not afraid to act on those decisions."

a. inventors

b. gamblers

c. promoters

d. planners

e. investors

35) Gemma, an administrative assistant in the print shop of a large company, orders office supplies biweekly; today, she needs copier paper and ink cartridges. She looks at the office supply catalog and, because the consequences are not huge, quickly picks a selection for each product that is priced acceptably. In this scenario, Gemma is using

a. management by exception.

b. optimizing.

c. satisficing.

d. the garbage can model.

e. maximizing.

36) The essential ingredients in any recipe for entrepreneurial success are a great product or idea, a viable market, and

a. a rich backer.

b. good timing.

c. a cautious personality.

d. a large income reserve.

e. unexpected luck.

37) The change from a local to a global marketplace is

a. irrelevant to today's business environment.

b. irreversible.

c. not necessary to remain competitive.

d. slowing down.

e. eliminating business challenges.

38) Coordination refers to the

a. division of labor within an organization.

b. performance of specific tasks by specific people.

c. procedures that link the various parts of the organization.

d. need for specific tasks in the functional fields.

e. authority levels in the organizational pyramid.

39) Thunderbolt Gaming Systems of San Jose, California, operates in a number of related fields, including computer gaming, virtual reality, simulation platforms, and other high-tech applications. In all likelihood, Thunderbolt Gaming Systems is an organization

a. with a high degree of differentiation.

b. in an industry whose paradigms change little.

c. in a relatively stable environment.

d. with the potential for standardization problems.

e. that employs strict rules of formalization.

40) According to many entrepreneurs and observers, when creating a new business, one should start with

a. strategic positioning.

b. social capital.

c. great ideas.

d. domain selection.

e. social responsibility.

41. "To be compliant with the requirements of the Sarbanes-Oxley Act, I will need to ensure our company ________," thought Hilmar Preiss, Chairman of the Board.

a. has at least some board directors that are not directly associated with the company

b. loosens up our accounting procedures

c. keeps two sets of books, one public and one private

d. managers don't sign off on financial results

e. executives earn large annual bonuses

42) Which of the following descriptions of entrepreneurs is true?

a. All entrepreneurs introduce new products.

b. Entrepreneurs usually have a placid personality.

c. Entrepreneurs have little awareness of the market.

d. Entrepreneurs know how to spot, create, and capture opportunities.

e. Entrepreneurs rarely explore domains big companies avoid.

43) Stewart Wilkinson, CEO of Acme Products, said to his Executive VP of Marketing,"I'm struggling with your proposal to expand our manufacturing operations in China. ________ create paradox. On one hand, new middle-class consumers in China are purchasing more products, both foreign and domestic. However, at the same time, low-cost manufacturers are moving out of China to set up operations in lower-wage countries."

a. Declining incomes

b. Slow-growing numerical increases in the middle class

c. Lack of tariffs

d. Rising incomes

e. Years of economic contraction

44) Which of the following is NOT one of the ongoing challenges that characterize the current business landscape?

a. technological change

b. speed of operations

c. collaboration

d. globalization

e. knowledge management

45) Which of the following countries has become an important provider of online technological support for the United States?

a. Egypt

b. Great Britain

c. India

d. Mexico

e. Taiwan