With mass production, the cost of goods manufactured increases for each product made.

More managers are usually needed when workers are empowered.

The success of a business depends greatly on managerial effectiveness.

A code of ethics usually includes such issues as bribing government officials and using company property for personal use.

A business advances its own interests when it becomes involved socially.

The primary incentive for a business to produce goods or services in the U.S. is profit.

In a sole proprietorship, creditors have a legal claim to the business’s assets before the owner.

Businesses owned by one person usually have enough funds for emergency situations.

It is difficult to withdraw from a partnership.

To form a corporation, a charter is needed.

A certificate of incorporation should not include the purpose of the corporation.

In order for communication to occur, information must be put into words.

Making eye contact is a form of body language.

Wild and imaginative ideas are discouraged during brainstorming sessions.

While some conflict in organizations may be healthy, too much conflict may be harmful.

Promoting current employees to management positions gives the company the advantage of having managers who understand company operations and policies.

The primary work of all managers can be grouped within four functions: planning, organizing, implementing, and budgeting.

An employee who performs two of the four management functions, even for a short time, is considered a manager.

As managers move up in the organization, their responsibilities change.

The job of supervisor does not vary much from department to department or from one company to another.

Supervisors are responsible for the work of each of their employees.

Managers who are able to earn the respect and cooperation of employees are known as leaders.

Leaders can be effective without good human relations skills.

Relationships are important for managers, because they are responsible for getting work done through others.

Leadership is the ability to influence people and groups to cooperatively achieve organizational goals.

The types of power that are NOT related to leadership characteristics are position and reward power.

Managers are the only people in an organization who need leadership skills.

The manager who understands the needs of employees will be a better manager.

Managers should make job assignments based on seniority rather than by matching the job to the needs and interests of the employee.

Managers should ignore the personal problems of employees, because they will not affect the employee’s work.

Since employees are aware of work rules, any violation should result in termination.

Before a team can be effective, members must clearly understand the activities to be completed.

Most employees like change and respond well when change is introduced.

Increased costs, without a proportionate increase in sales dollars, decreases profit.

Budgets are controlling devices as well as planning devices.

Marketing is defined as the transportation of products from producer to consumer.

To determine a price that will earn a specific profit, the business must first determine the costs of producing and marketing the product, plus all related operating expenses.

Offering free delivery adds to operating expenses.