Trends: Out sourcing Off-shoring Fluid organizations Wholesalers Supply chain speed Wedges Consumer spending Investments Economic business Banking \ place t for tentative sole proprietorship / partnerships/ LLC/LLP/ corporate Set aside programs are programs that set aside a portion of their profits for their employees. False a proportion of the government business is set aside for small businesses A factor favoring small businesses is there focusing on niches not serviced by larger businesses. True Jim Collins states the two things that differentiate level 5 leaders leader who achieve great results over a sustained time period, are humility and charisma. False humility and unrelenting drive Off-shoring is having customers in may countries. False- moving work to another country Studies have shown that internal competition within a company will get higher sustained results. False- higher short-term maybe, but lower long term Management is more likely to utilize a negative incentive approach lower in the organization only. False- management is a culture throughout the organization, will use negative at any level The amount of data that can be generated by computers and technology can be a problem for business. True- if it causes confusion, slows decisions, and takes extra time Over 99% of businesses in the United States are classified as small businesses. True Autocratic managers work hard at getting the opinions of others for decisions. False- autocratic managers make decisions without input democratic make decisions by getting others opinions The small business administration is a government agency set-up to help small business be successful. True Wal-mart is an example of a company that focuses on a niche. False small specialty businesses focus on a niche Traditional management is considered as being based off of negative motivation techniques. True Moe sees the #1 problem with business today is lack of reality. True Most leaders score higher when accessed on the seven habits of spectacularly unsuccessful executives than on the 7 qualities of good to great leaders. True Information Technology is the process and management of information and data. True Human resource skills are the most transferable skills from job to job and level to level. True A major distraction for a small business is office politics. False- minimal office politics in small businesses People are the engine of a business. True not management Entrepreneurs create new businesses sometime in their lives. True Increased emphasis on mass production its one of the factors that is favorable when starting a small business. False- computer, niche, tailored customer service The advantage of a franchise include lower failure rates. True Top-level managers usually complete tactical planning. False- middle managers One of the dark sides to technology is less human interaction. True SWOT is an acronym for strengths, workers, opportunities, and threats. False weaknesses, not workers A mission statement should be several pages of detailed instructions with a lot of big impressive words. False- short as everyone can remember and understand Real time data processing allows a company to compete based on speed. True Feeling confident and comfortable about being #1 is an industry is a good for a business False- neither stress nor comfort is unstainable The Hill computer company decides to remove the wholesale from the supply chain by 2010. This is an example of a tactical plan. False- strategic plan- major decision inspecting consumers and more than 2 years into the future Joe Donald CEO of starbucks says to find out what is wrong with your company ask your front line employees. True One-on-one communication is the most effective type of communication. True One of the highest risks to a new business is inadequate finance. True An annual budget is a tactical plan. False- operation plan Acknowledgement is the number one metaphor of people. True Management by Objectives (MBO'S) can turn into a check the box system if not done properly. True 62% of small independent businesses fail in the first year False- 38% fail in year 1 Managers who focus on the day-to-day operations usually have an office an executive row. False- lower level supervisors In a study in Fast Company, of 40,000 people, 93% said they lie regularly or habitually at work True <a href="/keyword/sam-walton/" >sam walton</a> built Wal-Mart into the largest corporation by listening to people True According to research in Robert Cooper's book &quot;The Other 90%&quot; caring is the #1 characteristic that differentiated great leaders True Effective communication is achieved when understanding is transferred True Controlling is the most important management function for a senior executive False- most businesses the 4, planning organizing directing controlling Dell computer is a life style business. False- lifestyle is a form of small business