Small Business Management
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Course Introduction
Small Business Management explores the fundamental principles, challenges, and opportunities involved in establishing, operating, and growing a small business. The course covers essential topics such as business planning, financing, marketing, human resource management, legal considerations, and strategies for sustainability and growth. Students will analyze real-world case studies, develop a practical business plan, and gain insights into entrepreneurial thinking, decision-making under uncertainty, and the use of technology to drive business success. The course aims to equip aspiring entrepreneurs and small business managers with the skills and knowledge necessary to navigate the dynamic landscape of small business ownership.
Recommended Textbook
Modern Management Concepts and Skills 12th Edition by Samuel C. Certo
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Page 2
Chapter 1: Introducing Modern Management: Concepts and Skills
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Sample Questions
Q1) Capital resources in an organization are ________.
A) the net profits the organization generates at the end of the financial year
B) the ingredients used directly in the manufacturing of products
C) the machines used during the manufacturing process
D) all the financial assets that the organization possesses
E) the amounts of money that managers use to purchase goods and services for the organization
Answer: C
Q2) ________ involves choosing tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.
A) Organizing
B) Influencing
C) Controlling
D) Monitoring
E) Planning
Answer: E
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Chapter 2: Managing: History and Current Thinking
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Q1) The Hawthorne Studies sparked the ________, a people-oriented approach to management in which the interaction of people in organizations is studied to judge its impact on organizational success.
A) behavioral study movement
B) human relations movement
C) scientific management movement
D) "one best way" model
E) motion studies initiative
Answer: B
Q2) Taylor pioneered a system in which workers could earn a bonus in addition to the piece rate if they exceeded their daily production quota.
A)True
B)False
Answer: False
Q3) Henri Fayol is regarded as the pioneer of administrative theory.
A)True
B)False
Answer: True
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Chapter 3: Corporate Social Responsibility, Ethics, and Sustainability
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Sample Questions
Q1) Which of the following is an example of whistle-blowing?
A) Niobi, an employee of Glesnt Co., complains to her project manager about the sexual advances that Brent, her supervisor, makes on her.
B) Rupert files a product liability suit against SilkSmooth Co., a shampoo manufacturer, because its use caused his hair to fall.
C) Joan, an employee of Pierce International-a financial services firm, reports illegal accounting practices to the Security and Exchange Commission.
D) Linda files a complaint to the Employee Equal Opportunity Commission against Jueruie Co. after she was rejected in the interview based on her gender.
E) Noa, a customer of Cone Inc., complains about the bad customer-service it received for the products.
Answer: C
Q2) Any individual or group that is directly or indirectly affected by an organization's decisions is called a stakeholder.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Management and Diversity
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Q1) The Finance department at Lewis & Sons only accounts for 10% of the employees, but wields the most decision-making power and controls resources and information. As a result, the Finance department is considered to be a ________ within the organization.
A) determinant group
B) majority group
C) secondary group
D) splinter group
E) model minority
Q2) The assimilation approach advocates shaping organization members to fit the organization.
A)True
B)False
Q3) The multicultural approach gives employees the opportunity to develop an appreciation for both differences of culture and variations in personal characteristics.
A)True
B)False
Q4) Explain Donaldson and Scannell's four-stage model for managers' progression in managing a diverse workforce.
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Chapter 5: Managing in the Global Arena
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Sample Questions
Q1) Which of the following categories of organizations generally has the lowest level of international involvement?
A) global organizations
B) domestic organizations
C) international organizations
D) multinational organizations
E) transnational organizations
Q2) In South Korean society, business success is pursued through people who work as a team. Managers believe that good interpersonal relationships among the members of a team are a must for success. What can be deduced from this?
A) South Korean society has a long-term orientation.
B) South Korea has high power distance.
C) South Korea is low on uncertainty avoidance.
D) South Korea has strong masculine values.
E) South Korea is a collectivist culture.
Q3) According to Hofstede, what are the five basic dimensions of culture?
Q4) Discuss the three types of organizational members found in multinational corporations.
Q5) What can managers in multinational corporations do to influence employees?
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Chapter 6: Management and Entrepreneurship
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Sample Questions
Q1) What is entrepreneurial opportunity? Which are the types of opportunities as described by Schumpeter?
Q2) Arm & Hammer used sustained regeneration when it expanded the uses for baking soda by introducing it as a deodorizing ingredient in such products as toothpaste, laundry detergent, etc.
A)True
B)False
Q3) Explain feasibility analysis.
Q4) Mike wants to start his own laundry service. However, he intends to first study the market and consider factors like who his competitors are, how they function, their market shares, how he can attract prospective customers, etc., before he decides whether his plan is viable. Mike is engaging in ________.
A) benchmarking
B) entrepreneurial risk management
C) feasibility analysis
D) exploitation
E) angel investing
Q5) When do entrepreneurs require external capital? Describe the three primary sources of external capital.
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Chapter 7: Principles of Planning
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Sample Questions
Q1) The final responsibility for organizational planning rests with ________.
A) the planning department
B) the designated organizational planner
C) the shareholders
D) the chief executives
E) the first-level managers
Q2) Planning is the process of determining how the organization will achieve its objectives.
A)True
B)False
Q3) After identifying the alternative ways in which the organization can reach its objectives, a manager should ________.
A) develop plans for each alternative
B) choose the best alternative for reaching objectives
C) rank each alternative according to complexity
D) develop premises on which to base each alternative
E) choose the alternative which is most cost effective
Q4) Explain the management by objectives approach (MBO) and explain the three basic parts included in most MBO programs.
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Chapter 8: Making Decisions
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Q1) During the decision-making process, organizational goals should be kept in mind when selecting the most beneficial alternative.
A)True
B)False
Q2) What are the orientations of weak decision makers?
Q3) Groupthink is a group decision-making process in which negative feedback on any suggested alternative by any group member is forbidden until all members have presented alternatives that they perceive as valuable.
A)True
B)False
Q4) Jack works at an advertising agency and leads a team of 8 graphic designers. Whenever he has to make a decision, he does so by himself and rarely asks him team members for their suggestions or inputs. Which of the following orientations does Jack have?
A) legitimate
B) exploitative
C) receptive
D) hoarding
E) marketing-oriented
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Chapter 9: Strategic Planning: Strategies, Tactics, and Competitive Dynamics
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Q1) Briefly discuss the strategic management process.
Q2) The legal component of the general environment is related to government affairs. A)True
B)False
Q3) ________ refers to the process by which firms undertake strategic and tactical actions and how competitors respond to these actions.
A) Strategic control
B) Environmental analysis
C) Competitive dynamics
D) Strategy implementation
E) SWOT analysis
Q4) Which of the following strategy formulation tools was specifically developed to expand on the BCG Growth-Share Matrix?
A) Porter's Model for Industry Analysis
B) the critical questions analysis
C) SWOT analysis
D) the GE Multifactor Portfolio Matrix
E) environmental analysis
Page 11
Q5) Compare and contrast strategic and tactical planning.
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Chapter 10: Plans and Planning Tools
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Q1) At Stangor Industries, all employees who wish to apply for a leave of absence, must fill up an application form available on the company's online leave tracking system. Employees are requested to submit the application at least 5 days before going on leave. This is an example of a ________.
A) procedure
B) rule
C) program
D) budget
E) policy
Q2) The portion of the total management system at which a plan is aimed is called the ________ of the plan.
A) repetitiveness
B) level
C) time dimension
D) scope
E) longevity
Q3) Briefly discuss the quantitative methods of sales forecasting.
Q4) Explain the concept of input planning.
Q5) What is a Gantt chart, explain its features.
Q6) Define the program evaluation and review technique (PERT).
Page 12
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Chapter 11: Fundamentals of Organizing
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Sample Questions
Q1) In general, the closer subordinates are physically, the more of them managers can supervise effectively.
A)True
B)False
Q2) Which of the following is true about departmentalizing by matrix?
A) It ensures unity of command.
B) Project managers generally report directly to the company CEO.
C) A matrix organization essentially has a bureaucratic structure.
D) When on a project, workers are not responsible for their original duties.
E) This mode is usually not utilized for short term projects.
Q3) Vertical dimensioning is directly related to the concept of the scalar relationship-that is, the chain of command.
A)True
B)False
Q4) Four primary forces influence the evolution of formal organizational structure: forces in the manager, forces in the task, forces in the environment, and forces in the subordinates.
A)True
B)False
Q5) What are the forces influencing formal structure?
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Chapter 12: Responsibility, Authority, and Delegation
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Sample Questions
Q1) The self-assumed commitment to handle a job to the best of one's ability is termed
A) responsibility
B) authority
C) accountability
D) answerability
E) responsivity
Q2) Explain the three roles that, according to Harold Stieglitz, staff personnel typically perform to assist line personnel.
Q3) Barnard defines ________ as the character of communication by which an order is accepted by an individual as governing the actions that individual takes within the system.
A) accountability
B) responsibility
C) authority
D) personal attitude
E) influence
Q4) Having authority guarantees a specific command will be obeyed.
A)True
B)False
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Chapter 13: Human Resource Management
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Sample Questions
Q1) What is the "human resource inventory"? What are the different human resource inventory records maintained by an organization?
Q2) Which of the following is a disadvantage of programmed learning as a training method?
A) Programmed learning methods do not lend themselves easily to computerization.
B) The limited time period of programmed learning modules are disadvantageous to students who prefer to learn at their own pace.
C) Programmed learning approaches are not conducive for encouraging students' active participation in the learning process.
D) With programmed learning, there is no one present to answer a confused learner's questions.
E) Students using programmed learning approaches are often confused as they cannot immediately know whether they are right or wrong.
Q3) Describe the term "appropriate human resources." What is the role of appropriate human resources in an organization?
Q4) Briefly describe the role of the selection process in providing appropriate human resources to an organization.
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Chapter 14: Organizational Change: Stress, Conflict, and Virtuality
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Q1) Value Innovations Inc. engages in selling computers and other electronic components through telephone and Web orders. The company decides to change the existing policies and procedures to fit the communication needs of the organization. This is an example of a(n) ________ change.
A) administrative
B) people
C) managerial
D) structural
E) technological
Q2) The highest level of worker performance and productivity is associated with the lowest level of worker stress.
A)True
B)False
Q3) Clarifying and defining jobs in an organization is an example of a people change. A)True
B)False
Q4) Virtual offices can be costly to organizations. Do you agree with this statement? Provide reasons for agreement of disagreement.
Page 16
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Chapter 15: Influencing and Communication
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Q1) Organizational communication that does not follow the lines of the organizational chart is specifically called ________.
A) lateral communication
B) upward communication
C) vertical communication
D) informal communication
E) downward communication
Q2) Which of the following is the major reason for the establishment of informal communication networks?
A) lack of formal organizational communication channels
B) desire for information that is not furnished formally
C) inability of managers to communicate effectively
D) vertical nature of the organizational structure
E) lack of necessary rules and regulations within the organization
Q3) ________ is the process of converting messages back into information.
A) Decoding
B) Encoding
C) Derivation
D) Paraphrasing
E) Rewording
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Chapter 16: Leadership
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Sample Questions
Q1) Which of the following refers to the leadership that inspires organizational success by showing followers how to lead themselves?
A) mentoring leadership
B) entrepreneurial leadership
C) coaching leadership
D) superleadership
E) transformational leadership
Q2) The Vroom-Yetton-Jago model is a method for determining ________.
A) when a leader should use which decision style
B) interpersonal dynamics of organizational leaders
C) the motivational appeals necessary to motivate followers
D) leadership traits and motivation of individuals
E) the effectiveness of leaders in various situations handled
Q3) Some employees crave a greater degree of freedom in working. These employees are most likely to have ________.
A) low interest in problem solving
B) high emotional intelligence
C) moderate intellectual capabilities
D) high tolerance for ambiguity
E) high level of structured behavior
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Chapter 17: Motivation
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Sample Questions
Q1) In Likert's Management System, which management style can be categorized by a lack of confidence or trust in subordinates, with the bulk of all decision-making being done at the top of the organization?
A) System 1
B) System 2
C) System 3
D) System 4
E) System 5
Q2) Incorporating motivators into a job situation is ________.
A) job rotation
B) job enlargement
C) job enrichment
D) total quality management
E) project management
Q3) According to Herzberg, the work itself should be considered a motivating factor.
A)True
B)False
Q4) List the changes that take place as people naturally progress from immaturity to maturity, in accordance with Argyris's maturity-immaturity continuum.
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Chapter 18: Groups and Teams
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Q1) The most fundamental ingredient for an effective team is ________.
A) monetary compensation
B) self-management
C) common interests
D) trust
E) talent
Q2) An informal group that gains and maintains membership primarily because of a common concern members have about a specific issue is called ________.
A) a work team
B) a friendship group
C) a command group
D) an interest group
E) a committee
Q3) The most important step managers need to take in managing work groups is to determine what informal groups exist in the organization, and who their members are.
A)True
B)False
Q4) List the benefits of informal group membership.
Q5) Define the six task-related steps that help managers build effective work teams.
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Chapter 19: Managing Organization Culture
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Sample Questions
Q1) The act of passing organizational myths and sagas to other organization members is known as organizational ________.
A) mentoring
B) identification
C) storytelling
D) configuration
E) proactivity
Q2) During an interview, Roy asks his interviewer about the type of culture of the organization. The interviewer informs Roy that the organization has a very simple structure and interactions between employees are extremely informal in nature. Also, there are few rules and procedures that employees are expected to follow. Employees are encouraged to take risks and be creative in the workplace. The organization most likely has a(n) ________.
A) clan culture
B) hierarchy culture
C) adhocracy culture
D) market culture
E) bureaucracy culture
Q3) Briefly explain the role of organizational rewards as a cultural artifact.
Q4) Provide a brief description of organization culture.
Page 21
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Chapter 20: Encouraging Creativity and Innovation
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Q1) What is total quality management? Give a brief history of the evolution of total quality management and the principles behind the concept.
Q2) Which of the following statements best corresponds to the inventing step of the innovation process?
A) Google decides to create Buzz in response to competition from Facebook and other social networking sites.
B) Google's team creates APIs for third-party applications.
C) Google releases the beta-version of Buzz for usability testing.
D) Google rolls out final code complete version of Buzz for users, rid of bugs and defects.
E) Google continues to add newer features and widgets to the Buzz platform and addresses user concerns.
Q3) Expertise is the component of creativity that refers to an individual's need or passion to be creative.
A)True
B)False
Q4) What are the benefits that an organization can enjoy by successfully offering high-quality products and services to the marketplace?
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Chapter 21: Controlling, Information, and Technology
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Q1) Operational control decisions relate to determining organizational objectives and designating the corresponding action necessary to reach them.
A)True
B)False
Q2) Which of the following is the first step in operating an IS properly?
A) transmitting data
B) determining appropriate data
C) using the information
D) determining information needs
E) gathering appropriate data
Q3) Information ________ is the extent to which the receipt of information allows decisions to be made and action to be taken so the organization can gain some benefit from possessing the information.
A) appropriateness
B) quality
C) timeliness
D) quantity
E) scope
Q4) Define the terms technology, information technology, and information systems.
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Chapter 22: Production and Control
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Q1) ________ layout is a layout pattern that groups together similar types of equipment.
A) Process
B) Fixed position
C) Group technology
D) Product
E) Material
Q2) What are the potential pitfalls of budgets?
Q3) ________ is a plan of action aimed at providing the organization with the right facilities to produce the needed output at the right time.
A) Location strategy
B) Process strategy
C) Product strategy
D) Layout strategy
E) Capacity strategy
Q4) Costs of packaging a product and costs of materials needed to make the product are fixed costs associated with production.
A)True
B)False
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