Business Chap 4-7

1. Noah started a tech business in his mom’s garage. During the start-up, Noah and his two employees did any tasks needed. With success, the company has grown, moving from Noah’s garage and into a building and employing 50 people. Noah is now separating all of the organizational activities into distinct tasks and assigning different tasks to different people. Noah is engaged in creating _______. 

• a. job specialization

• b. job design

• c. decentralization

• d. a network

• e. delegation

Luna's Dilemma Luna graduated from college and needed to decide where she wanted to work. She had several options. Her aunt Matilda owned and operated a small business that she started about 20 years ago. Matilda, an individual owner of her business, informed Luna that she could work for her. On one hand, Luna thought it would be a great opportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retires. On the other hand, she also felt that she wanted something a little more challenging—a job where she could really use her education. Another option would be to work for a company that a friend and her husband had started and jointly owned. It was a rapidly growing company with plenty of opportunity for advancement. However, Luna had some reservations about this choice because she was not sure she wanted to work for friends. Her last option was to work for a large retail company, headquartered in Delaware, which had stores across the United States. After much consideration, Luna decided she didn't want an opportunity and a job because someone knew her. She wanted to prove how motivated and hardworking she was. Once she weighed all the advantages and disadvantages of her different options, she decided to work for the large retail company so that she could gain the most experience for herself.

2. Refer to Luna's Dilemma. What type of company does Luna's friend operate

• a. Incorporation

• b. Partnership

• c. Franchise

• d. Corporation

• e. Sole proprietorship

Octavia owns 100 shares of Citigroup preferred stock. She wants to attend the annual stockholder meeting to cast her vote on company issues. Based on your knowledge from school, you caution Octavia that _____

• a. people with fewer than 1,000 shares of stock cannot vote

• b. stockholders are not allowed to attend the annual meetings

• c. most preferred stock does not have voting rights

• d. only institutional investors are allowed to attend the meetings

• e. she can vote only by proxy and not in person

A corporation organized to provide a social, educational, religious, or other nonbusiness service is known as a(n) _______.

• a. authority

• b. merger

• c. quasi-government corporation

• d. S corporation e. not-for-profit corporation

Chief Executive, Inc. Chief Executive, Inc. (CEI) is a chain of business-clothing stores for professional women. Lana, the owner of the company, has designed the business so that she hardly ever has to be there. There are many department managers who hold a lot of responsibility. Although they are organized separately by department, each manager knows enough about the other departments to be able to fill in at any time. The department managers also delegate a lot of work further down to their employees as a way to empower them. The owner even delegates store-management responsibilities to a different department manager each month. Even though certain people are delegated certain tasks, everyone pitches in, so it is sometimes hard to tell who is really in charge. Two of Lana’s managers have mentioned that some customers have expressed frustration that CEI stores do not accept cryptocurrency as payment. Sensing an opportunity to differentiate the company from its competitors, Lana has brought together three managers from finance, marketing, and legal, as well as herself, to explore how the stores could accept Bitcoin or some other cryptocurrency, and whether that could have negative consequences. The employees of CEI are so comfortable with each other that many go out and participate in activities together on the weekends, even when they are not working. However, the owner realizes that she does not want to participate in these events because she does not want to seem that she is favoring certain people over others.

5. Refer to Chief Executive, Inc. CEI can best be described as a(n) _______ organization.

• a. span of management

• b. decentralized

• c. ad hoc

• d. centralized

• e. autocratic

Which of the following describes an individual who has undertaken full co-ownership of a partnership, including limitless liability?

• a. Sole proprietor

• b. Stockholder

• c. Chairperson

• d. Limited partner

• e. General partner

Which of the following is not generally included in a typical partnership agreement?

• a. The nature of the business

• b. The names of the partners

• c. Each partner’s investment

• d. The type of stock the firm will issue

• e. Each partner’s duties

8. Toyin is helping Stana specify who the supervisors are in her business, who the managers are who oversee the supervisors, who are at an equal level with her in the organization, and who occupy the top management positions. What would be the best device for Toyin to use to make the process easier to understand?

• a. Line and dot chart

• b. Organizational culture chart

• c. Organizational chart

• d. Chain of command

• e. Bubble chart

9. When an incorporated business operates in multiple states, what is it legally called in all states outside the one in which it is incorporated?

• a. S corporation

• b. Resident corporation

• c. Alien corporation

• d. Foreign corporation

• e. Domestic corporation

10. Celia owns an Instant Imprints franchise, which supplies customized apparel, signs, and other promotional products to local businesses. What is the primary disadvantage of owning a franchise for Celia?

• a. She has to pay royalties to the franchisor.

• b. She cannot use her name as the business’s name.

• c. The franchisor still retains a great deal of control.

• d. Celia is not allowed to hire her own employees.

• e. Celia may not find ways to improve operation