Chapter 1 Quiz
1. In most companies, an increase in efficiency is
enough to ensure long lasting success.
Correct. Efficiency on its own is
not enough for success. A
company must also have
effectiveness. See 1-1:
Prin of Mgmt 1140 02
(1) A website that has been getting a lot of attention is bodybuilding.com. It has a
super clean and simple interface that makes it easy to get around the website. There is
a lot of information cra
Prin of Management 1140 02
If I were in charge of Nicks pizza restaurant my solutions would be simple. The
whole point of going out to eat is to get good food and a good atmosphere. So with this in mind
the question becomes what can be
What are the major elements of SWOT analysis?
o There are four major elements of SWOT analysis. Strengths and weakness major internal
factors that affect a companies capabilities. The strength factor analyzes a companies
good characteristics and the grea
Do you think Zappos is a decentralized or centralized organization? Do you think it should
change? Explain your answer.
o I believe Zappos is a decentralized organization. It allows it employees be involved in
every step the company makes and allows flex
Did the Department of Justice make the right decision when it blocked the merger of T-Mobile
and AT&T? Why or why not?
o The DOJ made the right decision when it blocked the merger. If T-Mobile and AT&T were
allowed to merge it would have lead to higher p
What three steps are involved in delegation? Explain each.
o Delegation is the process of assigning power and work to workers in a firm. To complete
this process there are three steps that must be taken. The first step is for the manager
to assign respon
Most people who start small businesses are aware of the high failure rate and the
reasons for it. Why, then, do some take no steps to protect their firms from failure?
What steps should they take?
There are a few reasons why entrepreneurs do not take ste
Why would a lender offer unsecured short-term loans when it could demand collateral?
o An unsecured loan is approved considering the financial condition and credit status of
the borrower. There are a few reasons why a lender would not require collateral
Why might an investor choose to become a partner in a limited partnership instead of purchasing
the stock of an open corporation?
The main benefit of a limited partnership is that the individual is only liable to the extent of
their investment. If the b
What style of leadership do you think most L.L.Bean managers probably employ?
o Managers effectiveness often depends on their styles of leadership, that is,
their ability to influence others, either formally or informally. The style of
leadership is entr
Bankers usually insist that prospective borrowers submit audited financial statements along
with a loan application. Why should financial statements be audited by a CPA?
o A CPA is an individual who has met state requirement for accounting education, has
Heres what Nederlanders chief operating officer has to say about its business model: A show
has a short lifetime. You go and sell two months out, and the tickets have no value on any day
but the day of the show. So its a very interesting model in that se
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Anderson Publishing Company
Sales College Text
CHAPTER 3 LECTURE OUTLINE
Learning Objective 1:
Define small business, discuss its importance to the U.S. economy, and explain popular
areas of small business.
What Is a Small Business?
A small business is independent (that is, not part of a larger busine