Chapter 19: Professional Management and the Small Business

Question 1

Leadership involves

Answer 1

Pointing the way and getting others to follow willingly

Question 2

What is the first task of the small business owner?

Answer 2

To create and communicate a vision for the company

Question 3

An entrepreneur is a _______ who enlists others to work with him or her in a creative endeavor

Answer 3

Trailblazer

Question 4

What is one of the most important traits of an entrepreneur?

Answer 4

Tolerance for ambiguity

Question 5

Entrepreneurs must be

Answer 5

adaptable

Question 6

What makes a leader effective?

Answer 6

Having the ability to take charge and inspire others to follow one’s lead

Question 7

Effective leadership is based on this

Answer 7

A focus on reaching business goals

Question 8

Effective leaders shift fluid between these leadership styles

Answer 8

Visionary
Coaching
Affiliative
Democratic

Question 9

Effective leaders make very limited but skillful use of these leadership styles

Answer 9

Pacesetting

Commanding

Question 10

This leadership style mobilizes people toward a shared vision

Answer 10

Visionary leaders

Question 11

This leadership style develops people by establishing a relationship and trust

Answer 11

Coaching Leaders

Question 12

This leadership style promotes emotional bonds and organizational harmony

Answer 12

Affiliative leaders

Question 13

This leadership style builds a consensus through participitation

Answer 13

Democratic leaders

Question 14

This leadership style sets challenging and exciting standards and expect excellence

Answer 14

Pacesetting Leaders

Question 15

This leadership style demands immediate compliance

Answer 15

Commanding leaders

Question 16

The authorization of employees to make decisions or take actions on their own is known as

Answer 16

Empowerment

Question 17

Groups of employees with freedom to function without direct supervision but with responsibility for results is known as

Answer 17

Self-Managed Work Teams

Question 18

New employees should be hired based on

Answer 18

their attitude, style, and fir with the personality of the company

Question 19

The most important thing is that there’s

Answer 19

A culture you believe in and are willing to hire and fire based upon

Question 20

Every leader should strive to incorporate this into the organizational culture

Answer 20

A positive, can do attitude

Question 21

A manager who uses systematic, analytical methods of management is known as a

Answer 21

Professional manager

Question 22

Entrepreneurs who rely heavily on past experience, rules of thumb, and personal whims in giving direction to their business

Answer 22

Less Developed end of skilled entrepreneurs

Question 23

Analytical and systematic in dealing with management problems and issues; emphasizes getting the facts and working out logical solutions; methodical in nature

Answer 23

More sophisticated approach

Question 24

The challenge for small firm leaders

Answer 24

To develop a professional approach while still retaining the entrepreneurial spirit of the enterprise

Question 25

Small enterprises seem particularly vulnerable to this weakness

Answer 25

Poor management

Question 26

What are small business owners constrained by?

Answer 26

Small bank accounts and limited staff

Question 27

As a firm grows, what will need to be adjusted?

Answer 27

The organizational structure and pattern

Question 28

Stage 1 of organizational growth is

Answer 28

Simply a one person operation

Question 29

Stage 2 of organizational growth is

Answer 29

the entrepreneur becomes a player-coach | Implies continuing active participation in business operations

Question 30

Stage 3 of organizational growth is

Answer 30

An intermediate level of supervision is added | The entrepreneur must now rise above direct hands on management and work through an intervening level of management

Question 31

Stage 4 of organizational growth is

Answer 31

A formalized level of management

Question 32

A firm's overall plan for the future is the

Answer 32

Long Range plan

Question 33

A plan that governs a firms operations for one year or less

Answer 33

Short-Range plan

Question 34

A document that expresses future plans in monetary terms

Answer 34

Budget

Question 35

How is planning beneficial?

Answer 35

Helps develop a plan to deal with issues confronting a company Provides focus for a firm Evidence increases credibility with bankers, suppliers, and other outsiders

Question 36

In very small companies, how does the organizational structure tend to develop?

Answer 36

With little conscious planning

Question 37

The official vertical channel of communication in an organization

Answer 37

Chain of command

Question 38

This is not advisible

Answer 38

Strict adherence to the chain of command

Question 39

This could be considered undermining to the position of the bypassed manager

Answer 39

Frequent and flagrant disregard for the chain of command

Question 40

A simple organizational structure in which each person reports to one supervisor is known as

Answer 40

Line organization

Question 41

An organizational structure that includes staff specialists who assist management is known as

Answer 41

Line-And-Staff Organization

Question 42

The number of employees who are supervised by a manager is known as the

Answer 42

Span of Control

Question 43

The optimal span of control is a variable that depends on

Answer 43

Nature of the work | Manager's knowledge, energy, personality, and abilities

Question 44

Granting a subordinate the right to act or make decisions on their own is known as

Answer 44

Delegation of authority

Question 45

The control process begins with the establishment of

Answer 45

standards

Question 46

Planners translate goals into

Answer 46

norms

Question 47

Correction action is required when performance deviates significantly from the standard in

Answer 47

an unfavorable direction

Question 48

This is key to a healthy organization

Answer 48

Effective communication

Question 49

This is crucial to small business success

Answer 49

Effective Staff communication

Question 50

This is the primary tool for establishing good human relations

Answer 50

Positive feedback to employees

Question 51

This contributes greatly to good communication

Answer 51

An atmosphere of trust and respect

Question 52

What are some ways to stimulate two-way communication in your enterprise?

Answer 52

``` Performance review sessions Bulletin boards Blogs Microblogging tools Suggestions boxes Wikis Formal Staff meetings Breakfast or lunch with employees ```

Question 53

The process of developing workable solutions through discussions or interactions is known as

Answer 53

Negotiation

Question 54

3 C's of service of the U.S. Small Business Administration

Answer 54

Capital Contracts Counseling

Question 55

An ABS sponsored group of retired executives who give free advice to small business owners

Answer 55

Service Corps of Retired Executives

Question 56

University affiliated centers offering consulting, education, and other support to small business owners

Answer 56

Small Business Development Centers

Question 57

Teams of upper class and graduate students who, under the direction of a faculty member, work with owners of small ventures in analyzing their business problems and propose appropriate solutions to them

Answer 57

Educational Institutions

Question 58

The process of developing and engaging in mutually beneficial informal relationships

Answer 58

Networking