Entrepreneurship and Small Business Management, 2e (Mariotti)
Chapter 19 Human Resources and Management
1) The ________ function includes everything from finding resources to hiring employees to
buying/leasing equipment.
A) organizing
B) planning
C) controlling
D) leading
E) motivating
Learning Obj.: LO 1
AACSB: Analytical thinking
2) Which one of these is not a type of planning?
A) Divisional plan
B) Strategic plan
C) Tactical plan
D) Operational plan
E) None of the above
Learning Obj.: LO 1
AACSB: Analytical thinking
3) Strategic plans are typically ________ year overall strategies for achieving long-term growth,
sales, and positioning goals.
A) 3-5
B) 1-2
C) 10-15
D) 8-10
E) 12-15
Learning Obj.: LO 1
AACSB: Analytical thinking
1
4) The department that hires, trains, and develops company employees is called ________.
A) Human resources
B) The employee office
C) The people department
D) The principal’s office
E) The hiring and firing office
Learning Obj.: LO 6
AACSB: Analytical thinking
5) Why are entrepreneurs not always the best managers for their businesses?
A) Entrepreneurs tend to be creative types who get bored with the day-to-day details of running a
business.
B) Managers are better at coming up with fresh ideas for new businesses than entrepreneurs are.
C) Entrepreneurs are lazy.
D) Entrepreneurs have short attention spans.
E) Entrepreneurs get sleepy.
Learning Obj.: LO 1
AACSB: Analytical thinking
6) No matter the size of a business, the leader sets the ________ for how the organization
operates. If the leader is chaotic, chances are the business will be too. If the leader is well
organized and efficient, the business may well be too.
A) Tone/style
B) Expense constraints
C) Profit expectations
D) Marketing budget
E) Asset optimization
Learning Obj.: LO 5
AACSB: Analytical thinking
7) ________ plans are short-term procedures for achieving tactical goals.
A) Operational
B) Strategic
C) Divisional
D) Tactical
E) Business
Learning Obj.: LO 1
AACSB: Analytical thinking
2
8) Which of the following is not a function of management?
A) Optimizing
B) Leading
C) Planning
D) Organizing
E) Controlling
Learning Obj.: LO 1
AACSB: Analytical thinking
9) What is the difference between strategic planning and operational planning?
A) Strategic planning sets out strategies for the business to achieve long-term growth and other
goals, while operational planning covers the day-to-day operations of the business.
B) Strategic planning covers the short-term day-to-day workings of a business, while operational
planning sets out long-term goals.
C) Strategic plans are for one year or less and have very specific objectives, while operational
plans are more vague and long-term.
D) All of the above
E) None of the above
Learning Obj.: LO 1
AACSB: Analytical thinking
10) Hiring employees is called ________.
A) Recruitment
B) Managing
C) Controlling
D) Assessing
E) Motivating
Learning Obj.: LO 2
AACSB: Analytical thinking
11) A(n) ________ interview is designed to determine the fit of a prospective employee with the
requirements of the position, using prior-experience examples.
A) behavioral
B) job
C) employment
D) role
E) enduring
Learning Obj.: LO 2
AACSB: Analytical thinking
3
12) To get the most from your employees, one should ________.
A) Hire the right people and place them into a position that maximizes their impact on the
organization
B) Give employees incentives to work and definite responsibilities
C) Provide a fair salary and good working conditions, and give them control over their work
D) All of the above
E) None of the above
Learning Obj.: LO 2
AACSB: Analytical thinking
13) A company will probably not need a full-time human resources professional until it has
________ or more employees.
A) 20
B) 10
C) 50
D) 75
E) 100
Learning Obj.: LO 6
AACSB: Analytical thinking
14) Human resources is commonly referred to as ________ in Disney.
A) casting
B) HR
C) Human capital
D) All of the above
E) None of the above
Learning Obj.: LO 6
AACSB: Analytical thinking
15) The act of Congress that requires employers to pay men and women the same amount for the
same work is called ________.
A) The Equal Pay Act
B) The Work Compensation Act
C) The Equal Opportunity Act
D) The American With Disabilities Act
E) The Fair Labor Standards Act
Learning Obj.: LO 6
AACSB: Analytical thinking
4
16) Which of the following is not an effective way to protect yourself from a wrongful
termination suit brought by an employee whom you have fired?
A) I can hire a lawyer to protect me from lawsuits.
B) I can conduct regular employee-performance reviews.
C) I can use performance-improvement or development plans to give the employee an
opportunity to fix aspects of performance that are subpar.
D) I can keep documentation of all my reasons for firing the employee to prove that he/she
violated company ethics or was not performing his/her duties.
E) I would not editorialize or speculate about the employee.
Learning Obj.: LO 6
AACSB: Analytical thinking
17) A(n) ________ plan is a document stating how the employee will attain specific performance
outcomes.
A) development
B) career
C) employment
D) recruitment
E) retention
Learning Obj.: LO 6
AACSB: Analytical thinking
18) ________ is the number of direct reports for a manager or a supervisor.
A) Span of control
B) Line organization
C) Chain of command
D) Hierarchy
E) Savvy
Learning Obj.: LO 5
AACSB: Analytical thinking
5
19) ________ plans provide the short-term implementation to accomplish strategic goals.
A) Tactical
B) Strategic
C) Operational
D) Organizational
E) Business
Learning Obj.: LO 1
AACSB: Analytical thinking
20) Which is not an effective method for a manager to motivate employees?
A) Threatening employees with disciplinary action
B) Rewarding achievements by employees
C) Recognizing outstanding employee contributions
D) Involving employees in decisions
E) Providing meaningful work
Learning Obj.: LO 5
AACSB: Analytical thinking
21) ________ refers to the hierarchy of reporting and communication in an organization.
A) Chain of command
B) Line organization
C) Staff organization
D) Span of control
E) Bureaucracy
Learning Obj.: LO 5
AACSB: Analytical thinking
22) Which of the following is not a good method for preventing legal complications when you
must lay off or fire employees?
A) Have employees sign an agreement when they’re hired saying they will not sue if they are
ever laid off.
B) Provide severance, which is continued salary for a limited time, and make serious efforts to
help laid-off employees find a new job.
C) Document your reasons for firing employees to prove that they did not perform their duties
correctly.
D) Conduct regular employee-performance reviews.
E) Make serious efforts to help them find new employment.
Learning Obj.: LO 6
AACSB: Analytical thinking
6