MGMT 3000 Exam 2 | Learn flashcards online

All main topics / Management / Entrepreneurship, Leadership

MGMT 3000 Exam 2 (84 Cards)

Say thanks

1
Cardlink

What is "strategic thinking and risk-taking behavior that results in the creation of new business opportunities"?

entrepreneurship

2
Cardlink

T/F: The average entrepreneur is married, has children, and worked for many years elsewhere before becoming an entrepreneur

True

3
Cardlink

99% of business are classified as a (2 words) . XX% of US businesses employ fewer than 20.

Small businesses

87%

4
Cardlink

According to the Family Firm institute, family business create XX% of new jobs. They also provide XX% of US employment.

78% of new jobs

60% of US employment

5
Cardlink

What is MOST crucial to the long term survival of a family business?

succession

6
Cardlink

What percentage of family businesses survive to the second generation? The third? Further?

second gen: 30%

third gen: 12%

Beyond: 3%

7
Cardlink

According to the Small Business Association, about how many new business fail in the first five years?

60-80%

8
Cardlink

T/F: Small businesses usually fail due to lack of initial capital.

False

9
Cardlink

When something new in an economy, such as a new small business, destroys something older, like an older business, it is called...

Creative Destruction

10
Cardlink

T/F: Business starts have fallen more in the 2008 recession than the 2001 recession.

True

11
Cardlink

Which of the following should NOT be included in a Business plan?
A. business goals
B. strategies to achieve business goals
C. a plan of how the entrepreneur will implement these strategies
D. exit strategy
E. All of the above should be included in a Business plan.

12
Cardlink

Economists believe there are two type of entrepreneurs. What are they driven by?

1. driven by the quest for new opportunities
2. driven by absolute need (no other opportunities available to them)

13
Cardlink

Women are now starting businesses at how many times the national average?

14
Cardlink

To be considered a small business, a company must satisfy what three conditions?

1. 500 or fewer employees
2. independently owned and operated
3. does not dominate industry

15
Cardlink

According to the SBA, what percentage of small businesses are being conducted over the internet?

85%!

16
Cardlink

What are the three Life cycles of an Entrepreneurial firm?

1. Birth Stage
2. Breakthrough stage
3. Maturity Stage

17
Cardlink

The first stage of the life cycle of Entrepreneurial firms is the Birth Stage. What are three things to be focused on during this stage?

a. establishing the firm
b. obtaining customer base
c. finding financing and revenue

18
Cardlink

The second stage of the life cycle of Entrepreneurial firms is the Breakthrough Stage. What are three things to be focused on during this stage?

a. working on the finances of the company
b. becoming profitable
c. growing safely and consistently

19
Cardlink

The final stage of the life cycle of Entrepreneurial firms is the Maturity Stage. What are three things to be focused on during this stage?

a. refining business strategy
b. continuing growth safely
c. managing for continued success

20
Cardlink

T/F: A business plan should be brief at less than 20 pages in length.

True

21
Cardlink

What is the most important financial statement of the business plan?

Cash Budget

22
Cardlink

What are two Equity financing options for a new business?

Angel Investors
Venture capitalists

23
Cardlink

T/F: Venture capitalists lend money to a new business to get it started.

False - they do not "lend" money, they supply capital for stock

24
Cardlink

In a franchise, who is the Franchisee and who is the Franchisor?

Franchisee is the entrepreneur

Franchisor is the license company

25
Cardlink

Advantages of starting a franchise are:
1. reduced financial risk
2. training, financial, and management support by franchisor

There are some significant disadvantages, though. What are the three named in the book?

1. start up fees
2. limitations imposed by franchise (market area, product, customer)
3. operational controls of franchisor

26
Cardlink

Why did Google issue two different classes of stock?

So the two founders could still maintain decision making control

27
Cardlink

What is a Dutch Auction IPO? What company, noted in the powerpoint slides, used a Dutch Auction IPO several years ago?

A Dutch Auction IPO is an IPO where the price is set by the lowest winning bidder.

Example: Three bidders each want one share of stock. Their bids are $25, $30, and $50 respectively for one share. However, the company is only allotting a total of two shares, so the lowest bidder at $25 doesn't get a share. The $30 bidder and $50 bidder each get a share, but they both only pay $30.

Google

28
Cardlink

What are the three approaches to valuing a business? (according to link in powerpoint)

1. Income Approach
2. Asset Approach
3. Market Approach

29
Cardlink

What does Zillow.com do?

house valuations

30
Cardlink

[Chapter 7 begins here] What was the point of the Multifactor Leadership Questionnaire?

It shows how good of a leader you are in 7 different categories.

31
Cardlink

Managers manage 1 while Leaders lead 2 . Managers do things right; Leaders do 3 . Managment focuses on 4 ; Leadership focuses on producing useful change.

1. things
2. people
3. things right
4. controlling complexity

32
Cardlink

What are the four activities that Leaders and Managers do?

Planning, Organizing, Directing, and Controlling

33
Cardlink

What is Transactional Leadership?

Leaders reward or penalize employees that stray from performance norms

34
Cardlink

What is Transformational Leadership? What four characteristics do Transformational leaders have?

Going beyond expectations by giving a sense of mission, stimulating learning, and changing the attitudes and assumptions of employees

Characteristics of Transformational Leaders
1. Charismatic
2. Individualized consideration
3. Intellectually stimulating
4. Inspirational

35
Cardlink

The original leadership studies carried out between WWI and WWII found that it is important to not be preoccupied with what leaders are (traits), but rather...

what they do (behaviors)

36
Cardlink

Even though the Trait Orientation is flawed, what two common traits are consisten with most leaders?

integrity and honesty

37
Cardlink

T/F: Leaders tend to be more intelligent than their subordinates.

True

38
Cardlink

Who is the "President of the World"?

Bill Clinton

39
Cardlink

Who organized this study?
-10 yr old boys in 3 groups of 5
-3 grad students were trained as leaders, rotated every 6 weeks
-Three groups: Democratic, Laissez-faire, and Authoritarian

Kurt Lewin

40
Cardlink

In Kurt Lewin's study, which group was most satisfied, orderly and positive? Which was lowest in satisfaction and productivity? Which was most aggressive and was productive around the leader?

Democratic

Laissez-faire

Authoritarian

41
Cardlink

What type of government do the following countries have?
1. China
2. US
3. Russia

1. One party communist state
2. Constitution based democratic republic
3. Federation

42
Cardlink

A manager with a high concern for people and a low concern for production is said to employ what type of management?

Country-club style

43
Cardlink

A manager with a low concern for people and a low concern for production is said to employ what type of management?

Impoverished

44
Cardlink

A manager with a high concern for people and a high concern for production is said to employ what type of management?

Team Management

45
Cardlink

A manager with a medium concern for people and a medium concern for production is said to employ what type of management?

Organization Man Management

46
Cardlink

A manager with a low concern for people and a high concern for production is said to employ what type of management?

Authority-Obedience

47
Cardlink

Describe the Least Preferred Coworker Theory. What is the LCP? What does a high or low score mean?

the appropriate style of leadership varies with situational favorableness

A measuring scale that asks leaders to describe the person with whom they are least able to work well with

A high LPC score indicates a relationship orientation while a low score indicates a task orientation.

48
Cardlink

What are the three environmental factors that determine situational favorableness from the leader's point of view? Briefly describe each. This referes to the LPC theory.

1. Leader-member relations - relationship with members

2. Task structure - how well task is defined

3. Position Power - power given to leader

49
Cardlink

When the situation is either most or least favorable, which orientation should you take? When it is moderately favorable, which should you take?

Most/Least: Task-oriented

Moderate: Relationship-oriented

50
Cardlink

Which of the following is/are Relationship oriented leaders?
1. Substitute teacher
2. Lunch group
3. Business fraternity

2. Lunch group

51
Cardlink

What is CPI? What country has the best CPI? What has the worst? Where is the US?

Corruption Perception Index

Denmark is best
US is 22
Somalia is worst

52
Cardlink

What country is perceived to be best in the TI Bribe Payers survey? Worst?

Switzerland

India

53
Cardlink

What two forms of lead behavior did the Michigan Studies find?

Job-centered and Employees centered

54
Cardlink

What two leader behaviors did the Ohio State Studies find? Briefly describe them.

Initiating-Structure - subordinate roles clearly defined, formal lines of communication (max performance, but least satisfied)

Consideration - concern for subordinates, friendly climate (very satisfied, lower performers)

55
Cardlink

What is the purpose of the Vroom's Decision Tree Approach?

prescribes a leadership style appropriate for a given situation

56
Cardlink

There are five different levels of subordinate participation in Vroom's Decision Tree. Name and briefly describe each.

Telling - manager decides, announces to the group
Selling - group decision with leader input
Consulting Individually - individual consultations with members
Consulting as a Group - group consultation for solution
Delegating - group decides on their own

57
Cardlink

Vroom Decision Tree:
1) Which level is best for followers that are unwilling, but able to perform a task.
2) Which is best for groups with low maturity?
3) Which is best for those unable, but willing?

1) Selling
2) Telling
3) Consulting

58
Cardlink

What is the Path-Goal Theory? What are the four kinds of leader behaviors for a particular situation (briefly describe each)?

Path-Goal Theory - primary functions of a leader are to make valued/desired rewards available in the workplace and to clarify to subordinates how they can get them

Directive - let sub. know what is expected of them, give guidance

Supportive - show concern for employees' welfare, treat equally

Participative - consult with sub., allow participation in decision making, solicit suggestions

Achievement-Oriented - set goals, encourage sub.

59
Cardlink

What is the Leader-Member Exchange Approach?

supervisors have different relationships with different subordinates where each relationship is called a "vertical dyad"

60
Cardlink

[Chapter 8 begins here] What is Perceptual Inference?

diagnosing the situation and making rapid inferences about it from scanty clues

61
Cardlink

Perceptual Organization

grouping environmental stimuli into recognizable patterns

62
Cardlink

What is figure ground?

people perceive objects that stand against a background

i.e. there is verbal communication and then there is the often overlooked non-verbal communication

63
Cardlink

55% of the content of a message is through...
38% is through...
Only 7% is through words.

55% through facial expression and body posture

38% through inflection and tone

64
Cardlink

What is felt by the listener when they tilt their head to the side but continue looking at the speaker?

Boredom

65
Cardlink

What does consisten eye contact mean?

either positive emotions or mustrust

66
Cardlink

What do averted gazes, touching the ear or scratching the chin mean?

disbelief

67
Cardlink

Intimate space is within how many feet?
Personal space?
Social space?
Public space?

1.5 ft
4 ft
12 ft
25 ft

68
Cardlink

How many words per minute are recommended for conversation? Slide presentation?

Conversation: 200

Slide: 100

69
Cardlink

What is the Halo Effect?

one personality trait influences perception on the whole

70
Cardlink

Implicit Personality Theories

taking personalities of people you know and categorizing new acquaintances with them

71
Cardlink

What is Projection?

attributing our own feelings and characteristics to others

72
Cardlink

Explain the difference between visibility and contrast. Give an example.

Visibility is when a small percentage of a large group belongs to one category, the small percentage will be noticed. Contrast is when what makes the small percentage different is focused on.

Visibility is when there is a woman in a group of men. Contrast is when men notice she is a woman.

73
Cardlink

What is Assimilation?

when people view minorities as representatives for their social category

74
Cardlink

Explain the Pygmalion Effect (Self-Fulfilling Prophecy).

our actions > other beliefs about us > others actions towards us > our beliefs about ourselves > our actions

75
Cardlink

Behavior is a function of Personality and .

environment

76
Cardlink

What is the Fundamental Attribution Error?

tendency to overestimate the role of personality when environment is a larger influence

77
Cardlink

Explain the Attribution Theory. How does this relate to poor performance in the workplace by employees?

When you observe someone else's behavior:
you overestimate personality

When you explain your own behavior:
you overestimate environmental influences

Poor performance in the workplace by employees is attributed to internal and personal factors.

78
Cardlink

What does Locus of Control describe?

the extent to which people believe their behavior has a real effect on what happens to them

79
Cardlink

If you have an Internal Locus of Control, what do you believe in?

individuals determine their fate

80
Cardlink

What are the "Big 5" Personality traits? (OCEAN) Briefly explain each.

Openness - measure of individual's rigidity of beliefs
Conscientiousness - number of goals a person has
Extraversion - confort level with relationships
Agreeableness - ability to get along with others
Negative Emotionality - emotional stability level

81
Cardlink

Attitudes have three core components: Affective, Cognitive, and Intentional. Briefly define each.

Affective - feelings about a situation
Cognitive - prior experience
Intentional - how you expect to react in a future situation

82
Cardlink

Cognitive Dissonance

uncomfortable feeling as a results of conflicting attitudes

83
Cardlink

T/F: Emotional Intelligence is a biological trait.

False - it can be learned

84
Cardlink

T/F: Satisfaction generally leads to better job performance.

False - not necessarily true