41) Jackson is comparing this month’s operational costs, productivity, accident rate, etc., to the
goals his boss set with him at the beginning of the year. Jackson is at what point in the feedback
loop?
A) Comparing performance against standards
B) Deciding what to measure
C) Deciding how to measure performance
D) Conducting a performance appraisal
Topic: Feedback
AACSB: Reflective Thinking
42) In the feedback loop, the final and most important step is when the manager/small business
owner:
A) compares actual performance against the standards.
B) takes action to improve performance.
C) finds who is responsible for either shortfalls or surpassing of standards.
D) plans for the future.
Topic: Feedback
AACSB: Analytic Skills
43) A ________ is used by the owner of a small business to determine wage and salary increases,
need for training, overall job progress, etc., among other things.
A) human resource plan
B) job redesign
C) compensation plan
D) performance appraisal
Topic: Performance Appraisal
AACSB: Analytic Skills
44) Employees’ biggest complaint about performance appraisals tends to be:
A) they are unfair and do not measure what they actually do.
B) that they only happen periodically, generally once a year.
C) that they are more demotivating than motivating.
D) most managers don’t know how to conduct them.
Topic: Performance Appraisal
AACSB: Analytic Skills
11
45) An effective performance appraisal system:
A) focuses on behavior, action, and results.
B) focuses on fixing employee weaknesses.
C) is both personal and general in terms of the comments made.
D) is dominated by the manager giving feedback and asking if he/she is understood.
Topic: Performance Appraisal
AACSB: Analytic Skills
46) ________ involves cross-training employees so they can move from one job in the company
to others, giving them a greater number and variety of tasks to perform.
A) Job enlargement
B) Job simplification
C) Open-book management
D) Job rotation
Topic: Job Design
AACSB: Analytic Skills
47) Which one of the following should NOT be part of a leader’s behavior?
A) Sets clear goals
B) Shares their vision
C) Maintains distance with employees
D) Rewards employees who meet or exceed the firm’s performance targets
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
48) Effective leaders exhibit certain behaviors. An example would be:
A) behave with integrity in all situations and at all times.
B) look into future.
C) communicate with employees.
D) All of the above
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
12
49) Two functions are interrelated and remain a continuing challenge to achieve for leaders. They
are:
A) staff their organization with the right people and then create the most appropriate work
environment.
B) behave with integrity in all situations and at all times.
C) respect and support their employees.
D) focus employees’ efforts on challenging goals and keep them driving toward those goals.
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
50) The first objective of a job analysis is to develop a job description. The second objective is to
create a:
A) job interview outline.
B) advertisement in the newspaper.
C) job specification.
D) None of the above
Topic: Create Practical Job Descriptions and Job Specifications
AACSB: Analytic Skills
51) Some of the most valuable interview questions attempt:
A) to gain insight into the candidate’s ability to reason and be logical.
B) to be creative.
C) Both A and B
D) to be similar to the job description.
Topic: Conducting the Interview
AACSB: Analytic Skills
52) Many courses have team projects. A team can be powerfully effective in terms of
performance when:
A) their mission and performance targets are realistic and known to the team members.
B) the team has the needed skill.
C) the nature of the work is compatible with the use of teams.
D) All of the above
Topic: Team-Based Management
AACSB: Analytic Skills
13
53) The most important role the entrepreneur can play in his/her company is that of manager.
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
54) Management skills keep the leader under some degree of control.
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
55) An effective leader helps employees focus their efforts on goals and keeps them driving to
accomplish them.
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
56) An important part of effective leadership is not only communicating with employees but also
providing them with the resources necessary to achieve their goals.
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
57) The small business leader performs four vital tasks; communicating the vision, finding the
necessary resources to accomplish the vision, finding the external expertise to help accomplish
the vision, and the ability to motivate his/her own workers to achieve the vision.
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
58) Leadership is like management in that it maintains order and structure in the accomplishment
of goals.
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
59) Leaders recognize that helping workers see the company’s overarching goal is just one part
of effective communication.
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
14
60) Sometimes personal defense mechanisms and confusing verbal and nonverbal messages
interfere with leader/follower communication.
Topic: Improving Communication
AACSB: Analytic Skills
61) To improve communication, leaders should use written means, e-mail, memos, notes, etc., to
ensure clarity and to be able to track that instructions were given.
Topic: Improving Communication
AACSB: Analytic Skills
62) Listening is the entrepreneur’s most important communication skill.
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
63) Hiring is very important for the small company, because the typical entry-level hire that quits
in six months costs the company about $5,000 besides the wages and benefits paid.
Topic: Hiring the Right Employees
AACSB: Analytic Skills
64) Leadership is the process of influencing and inspiring others to work to achieve a common
goal and then giving them the power and the freedom to achieve it.
Topic: The Entrepreneur’s Role as Leader
AACSB: Analytic Skills
65) Job description explains what a job entails and the duties the person filling it is expected to
perform.
Topic: Create Practical Job Descriptions and Job Specifications
AACSB: Analytic Skills
15
66) Company culture is a process by which a firm determines the duties and nature of the jobs to
be filled and the skills and experience required of the people who are to fill them.
Topic: Culture
AACSB: Analytic Skills
67) A job analysis describes what the job is, what its duties and responsibilities are, and what
working conditions are involved.
Topic: Create Practical Job Descriptions and Job Specifications
AACSB: Analytic Skills
68) Information gathered during a job analysis provides the foundation for creating job
descriptions and job specifications.
Topic: Create Practical Job Descriptions and Job Specifications
AACSB: Analytic Skills
69) A job description sets forth duties; a job specification translates these duties into
qualifications for that job.
Topic: Create Practical Job Descriptions and Job Specifications
AACSB: Analytic Skills
70) The job specification outlines the duties and responsibilities of a job and its working
conditions.
Topic: Create Practical Job Descriptions and Job Specifications
AACSB: Analytic Skills
71) It is important during the job interview to get the candidate to discuss actual situations in
which he/she has used the skill or knowledge you are seeking.
Topic: Conducting the Interview
AACSB: Analytic Skills
16
72) The most effective job interviews are unplanned, unstructured interactions between the small
business owner and the job applicant.
Topic: Conducting the Interview
AACSB: Analytic Skills
73) The small business owner should open an interview with a major question.
Topic: Conducting the Interview
AACSB: Analytic Skills
74) Effective interviewers spend about 75% of their time listening to the candidate.
Topic: Planning an Effective Interview
AACSB: Analytic Skills
75) It is legal and appropriate for the entrepreneur to ask a job candidate if they have children or
have been arrested.
Topic: Conducting the Interview
AACSB: Analytic Skills
76) During an interview, an employer may not ask job candidates if they are a U.S. citizen or if
they have any physical or mental infirmities that would interfere with performing the job.
Topic: Conducting the Interview
AACSB: Analytic Skills
77) Job rotation involves cross-training employees so they can move from one job in the
company to others, giving them a greater number and variety of tasks to perform.
Topic: Job Design
AACSB: Analytic Skills
78) If an employment test measures what it is intended to measure, then the test is reliable.
Topic: Employment Tests
AACSB: Analytic Skills
17
79) A reliable test is one that measures what it is intended to measure.
Topic: Employment Tests
AACSB: Analytic Skills
80) If the entrepreneur forms teams around the natural work flow and/or involves teams in
deciding how to measure their own performance, the probability of success is significantly
improved.
Topic: Team-Based Management
AACSB: Analytic Skills
81) When a small business owner moves to an empowering management style, he/she should
expect to lose about 5% of the workforce because that represents the number of workers who do
not want to work in that type of environment.
Topic: Empowerment
AACSB: Analytic Skills
82) Open book management is a management style where the owner provides employees with
access to all the company’s records, including financial statements.
Topic: Empowerment
AACSB: Analytic Skills
83) When an entrepreneur wants to motivate his/her employees by giving them more
responsibility in their jobs and more control over all the elements of the job, he/she would use
job enlargement.
Topic: Job Design
AACSB: Analytic Skills
84) Tina is dismantling her assembly-line operation and giving her workers responsibility for the
entire job of creating the arc welders her company sells. By doing this, Tina is using a job
enrichment strategy by specifically increasing task identity.
Topic: Job Design
AACSB: Analytic Skills
18
85) Flextime is an arrangement where the employees both share responsibility for a single job
and may choose where and when they accomplish the assigned tasks.
Topic: Job Design: Flextime
AACSB: Analytic Skills
86) Workers who telecommute have lower productivity but increased job satisfaction.
Topic: Job Design
AACSB: Analytic Skills
87) Flexplace is an easy job design strategy for companies to use because of telecommuting.
Topic: Job Design
AACSB: Reflective Thinking
88) A survey of small companies shows that nearly half reward their workers with bonuses or
other performance-related compensation.
Topic: Rewards and Compensation
AACSB: Analytic Skills
89) For pay-for-performance systems to work, there needs to be frequent payouts to the
employees.
Topic: Rewards and Compensation
AACSB: Analytic Skills
90) To effectively recognize good performance in a way that motivates employees, the small
business owner is forced to use financial rewards.
Topic: Rewards and Compensation
AACSB: Analytic Skills
91) To be effective, any reward system used must be tailored to the tastes and interests of the
employees.
Topic: Rewards and Compensation
AACSB: Analytic Skills
19
92) The first step in establishing a feedback or performance appraisal process is to decide what
performance to measure.
Topic: Performance Feedback
AACSB: Analytic Skills
93) The biggest complaint heard about performance appraisals is that they only happen
periodically, generally once a year, and most employees don’t receive ongoing feedback on the
job.
Topic: Performance Appraisal
AACSB: Analytic Skills
94) Effective performance appraisals link the employee’s performance to his/her specific job
description.
Topic: Performance Appraisal
AACSB: Analytic Skills
95) Most of the time of a performance evaluation should be spent discussing the future and what
can be done to improve performance.
Topic: Performance Appraisal
AACSB: Analytic Skills
96) Open-book management is when employees have access to all of a company’s records,
except financial statements.
Topic: Empowerment
AACSB: Analytic Skills
97) Job enrichment involves building motivators into a job by increasing the planning, decision-
making, organizing, and controlling functions.
Topic: Job Design
AACSB: Reflective Thinking
20