Business Activities
A business can be described as a(n)
a. disorganized method of manufacturing products.
b. organized effort to produce goods and services.
c. reasonable way to make a profit.
d. unreasonable means for increasing revenues.
B
Organized effort to produce goods and services.
A business, whether for profit or nonprofit, is an organized effort to produce goods and services.
Which of the following is the main purpose of management:
a. To obtain the needed resources
b. To reach a specific level of productivity
c. To accomplish the business’s goals
d. To create a pleasant working atmosphere
C
To accomplish the business’s goals.
Management is the logical process of coordinating
resources, such as money and employees, to accomplish an organization’s goals.
The people who work to produce goods and services are known as
a. capital.
b. raw materials.
c. human resources.
d. facilities.
C
Human resources.
The people who work to produce goods and services are known as human resources, and they are invaluable to a company. Capital, raw materials, and facilities are other resources that businesses use; they are all controlled by human resources.
Which of the following is a true statement about information:
a. It is simple to manage.
b. It is data put into a useful form.
c. It is the same thing as data.
d. It has no value for an organization.
B
It is data put into a useful form.
Data and information are not the same thing. Data
are facts and figures, but information is what you get when data are in a useful form. Information is something an organization values, and it is not always simple to manage.
Having positive customer relations means making customers
a. more popular.
b. richer.
c. satisfied.
d. happy.
D
Happy.
Having positive customer relations means making customers happy. Satisfying customers is not enough—businesses must exceed their expectations. Positive customer relations will not necessarily make customers more popular or richer.
Which of the following demonstrates the interrelationship among primary business activities:
a. A business changes its goals, so its strategies and tactics change, too.
b. A new product is introduced, so business advertisements must adjust.
c. A business manager becomes vice president, so his/her department must adjust to the change.
d. One business activity changes, so the others must adjust.
D
One business activity changes, so the others must adjust.
Since the primary business
activities are interrelated, when one business activity changes, the others must adjust, in response
Why should managers know how to do the work of the workers they supervise?
a. To coordinate employees’ efforts
b. To establish a chain of command
c. To create a team spirit among employees
d. To have realistic expectations for workers
D
To have realistic expectations for workers.
Even though managers don’t do the actual jobs, it is important for managers to understand the jobs of the workers they supervise. This helps managers know how workers should do the work, be realistic in the amount of work they expect workers to complete, or even fill in when workers are absent or there is an emergency situation of some kind.
Human resources are a company’s most important resources because
a. they are the least expensive resources.
b. they are controlled by other company resources.
c. they are the most expensive resources.
d. they control all other company resources.
D
They control all other company resources.
Human resources are a company’s most important resource because they control all other company resources. That’s why it’s so vital to have appropriate human resources in place at all times. Human resources are not necessarily a company’s most expensive or least expensive resource.
How does appropriate information management affect a business’s relationship with its customers?
a. Businesses earn higher profits.
b. Businesses lose focus on customers.
c. Businesses serve customers more effectively.
d. Businesses make better financial decisions.
C
Businesses serve customers more effectively.
Managing information appropriately helps businesses focus on the important task of serving customers more effectively. While effective information management does help lead to higher profits, increased profits do not directly affect customer relations. A business’s financial decisions may or may not have to do with serving customers.
Which of the following statements best describes positive customer relations:
a. A business listens to customer feedback.
b. A business conducts 100 customer transactions per day.
c. A business has no customer complaints.
d. A business advertises to attract new customers.
A
A business listens to customer feedback.
When a business takes customers seriously and listens to their feedback, it is demonstrating positive customer relations. Just because a business conducts a number of transactions with customers does not mean that it has positive customer relations. An absence of customer complaints does not necessarily indicate positive customer relations; sometimes, resolving complaints or problems successfully creates positive customer relations. Advertising may or may not relate to a business’s customer relations efforts.
Franco’s Bread Shop is introducing a new type of sandwich bread to the community this week. Which of the following describes the business activity that the bread shop will likely partake in before the release:
a. Collecting information on last year’s new breads
b. Creating a system for storing new bread recipes
c. Planning for the long-term results of introducing new breads
d. Promoting the new bread through advertising
D
Promoting the new bread through advertising.
Since Franco’s Bread Shop is introducing a new type of sandwich bread to the community this week, the bread shop is now performing the business activity of marketing—by promoting the new bread through advertising.
Which of the following statements about first-line management is true:
a. First-line managers are not responsible for carrying out middle management’s plans.
b. First-line managers never work side by side with their employees.
c. Businesses typically hire their first-line managers from inside the company.
d. There are normally fewer first-line managers than middle or top-level managers.
C
Businesses typically hire their first-line managers from inside the company.
A lot of businesses have a policy of promoting from within whenever possible. Many times, competent employees who are performing well on the job are promoted to supervisory positions
Which of the following is a reason that the role of HR management is changing:
a. Business costs are going down.
b. Employees place a greater emphasis on work over personal lives.
c. The workforce is younger than ever.
d. There is greater diversity in the workforce.
D
There is greater diversity in the workforce.
Greater diversity now exists in the workforce in terms of gender, age, culture, and ability. A greater variety of backgrounds, perspectives, and needs are represented.
A risk involved with information management is leaving customers unprotected from
a. bad customer service.
b. identity theft.
c. high prices.
d. faulty products.
B
Identity theft.
A risk involved with information management is leaving customers unprotected from identity theft. An information management program that does not use technology properly may put customers’ personal information at risk. Appropriate
information management will not necessarily protect customers from bad service, high prices, or faulty products.
A business’s tangible environment might include a
a. spirit of teamwork.
b. courteous greeting.
c. comfortable waiting room.
d. friendly employee.
C
Comfortable waiting room.
A business’s tangible environment might include a comfortable waiting room. A tangible environment is physical—things that can be seen, felt, tasted, etc. A business’s intangible environment, or corporate culture, might include aspects such as a spirit of teamwork, a courteous greeting, or a friendly employee.
An example of performing business activities in an “out of the ordinary” way is when a business
a. operates as the link between customers and products.
b. begins long-term planning and organization.
c. offers a new product in a popular product line.
d. hires an outside firm to perform its marketing.
D
Hires an outside firm to perform its marketing.
A business performs its activities in an “out of the ordinary” way when it uses outsourcing or when it offers virtual services. Outsourcing is acquiring assistance from outside organizations/consultants to perform primary business activities.
Why do top-level managers usually receive high salaries?
a. Their decisions affect the entire company.
b. They are required to attend a great many meetings.
c. They have more experience than others in the company.
d. Their responsibilities involve hands-on supervision.
A
Their decisions affect the entire company.
Top-level management is composed of all managers who are responsible for the entire company. They receive higher salaries than other managers because they make important decisions that affect the whole company.
Determine whether the following statement is true or false: Companies without an HR department do not participate in HR management activities.
a. True; smaller companies have no need for HR management.
b. True; only HR managers can complete these activities.
c. False; in companies without HR departments, all employees participate in HR management activities.
d. False; in companies without HR departments, other managers and supervisors participate in HR management activities.
D
False; in companies without HR departments, other managers and supervisors participate in HR management activities.
Human resources management is a function of business as well as a department. In other words, bigger companies may have a great number of employees dedicated solely to managing human resources, but in small businesses without an official “HR department,” this important function still remains.
Information management can be a challenge because
a. there is often not enough information to manage.
b. there is only one right way to do it.
c. many people don’t understand what it is.
d. no one wants to participate in it.
C
Many people don’t understand what it is.
Information management can be a challenge because many people don’t understand what it is or what role they should play in it. Many people may want to participate in information management but just don’t know how. There is often too much information to manage, something known as information overload. There is no one right way to approach information management.
Businesses use technology to build positive customer relations by
a. calling customers at home.
b. placing pop-up advertisements on websites.
c. sending unsolicited emails.
d. creating targeted marketing campaigns.
D
Creating targeted marketing campaigns.
Businesses use technology to build positive customer relations by identifying valuable customers and creating targeted marketing campaigns to reach them. Calling customers at home, placing pop-up ads online, and sending “junk” emails will create negative customer relations instead of positive ones.
Name the 6 different types of business activities
Financial analysis
Human resources management
Information management
Marketing
Operations
Strategic management
Name the 5 functions of management.
Planning
Organizing
Staffing
Directing
Controlling
Name the 5 Functions of HR
Staffing
Compensation and Benefits
Training and development
Compliance
Employee Relations
Information management is different from what 2 specific things?
A management information system (MIS)
Data processing
When a business strives to make every customer experience a positive one, it is remembering its what?
Touchpoints