local franchise

1

Brian decided to open a local franchise of the well-known Mc-King Chicken, a fast-food restaurant. Before he took theinitiative to open the franchise, he tried to weigh all the advantages and disadvantages. He decided, based on hisresearch and understanding, that it would be beneficial to open a local fast-food restaurant.

Question: Which of the following would be an advantage for Brian?

A.Franchise holders paying for their security

B.Contract disputes

C.Disagreements increasing

D.The franchisor maintaining a great deal of control

E.Guidance from the franchisor

2.By age 26, Tom was a plant manager in the snack-foods division. By 33, he headed the division, one of the mostprofitable in the corporation. Eventually, however, the company decided to move its corporate offices. Although heloved the job and thought the work was great, Tom’s lifestyle was awful. He was on the road so often that he wasgiving up much of his family life. Tom had also become disenchanted with corporate life. He saw that the closer onegot to the top, the more vulnerable one’s position became. Thus, Tom left the corporation to start his own
snack-foods company. His thoughts and actions most clearly reveal his

A.need for independence

B.lack of self-confidence

C.desire to determine his own destiny

D.entrepreneurial spirit.

E.willingness to find and accept a challenge
Centrum Springs, Inc.

3.Riley has worked for Centrum Springs, Inc., for many years and has now been given the opportunity to advance in thecompany. His manager is retiring and hopes that Riley will take over for him. However, even though Riley is anexperienced employee, there are many things that he still needs to learn. Riley has trained many new employees, buthe has never held a management position. Riley needs to have a general understanding of what it takes to be amanager.

There are many problems in Riley’s department. There are no plans to fall back on in case the initial plan fails. Rileyalso will need to learn how to direct people in such a way that makes them want to do more than they absolutelyhave to. Riley feels that this is a great opportunity, and he is anxious to learn everything to be a great manager. Heknows that if he performs well in this position, he will have the opportunity to move up the corporate ladder.
Question: Riley’s usual duties represent which of these areas?

A.Human resources management

B.Financial management

C.Operations management

D.Administrative management

E.Marketing management
4

.Clarke Tools, concerned about its loss of market share in previous years, has recently implemented several programs toencourage prompt and courteous customer service, employee self-management, and better coordination withsuppliers. Clarke Tools is making an effort to achieve

A.a quality concern focus

B.total quality development

C.quality improvement planning

D.total quality management

E.total quality commitment
Dazzle Magazine

5.Rosalea recently switched careers. Previously, she was a college professor, but she felt she needed more real- worldexperience to help her business students more fully. She became a manager at Dazzle Magazine, where she was incharge of the layout. Always open to new ways of doing things, Rosalea let her staff implement their ideas
at times. Rosalea learned firsthand the different roles she had to play as a manager.

It always got stressful when the publication deadline neared. At one point, there was a major mix-up in the layoutsfor the front cover. Rosalea was not sure of the correct layout because she had allowed one of her employees,Joseph, to modify and run with his idea on this matter. However, she could not ask for Joseph’s help with the coversbecause he happened to be out of town at the time. Rosalea quickly looked over the layouts but felt that they stillneeded some work.

She decided to ask the design manager for her help. The design manager did not feel comfortable making a decisionon the issue, so she did not give Rosalea an answer. Rosalea then went to an employee within her department foradvice. That employee suggested some ideas, but Rosalea was still not satisfied. Finally, Rosalea called one of her topgraduate students with whom she had kept in contact and asked her if she could offer some ideas. The graduatestudent quickly came to the magazine’s office and helped Rosalea decide on the alternative that should beimplemented. Rosalea greatly appreciated the assistance and the suggestion. The final cover design went to press,and that issue of the magazine was successful. This helped Rosalea realize that considering the big picture was good,but equally important were the little details.

Question: The graduate student’s assistance represents which step of the decision-making process?

A.Select alternative

B.Evaluate solution

C.Generate many alternatives

D.Identify problem and opportunity

E.Implement solution

6.
Excellent Air Inc. is a well-known establishment in the airline business. It is currently one of the top firms in theindustry. The company prides itself on good customer service and being concerned with the broader societal good. EAImanagement is not only concerned with doing things right, but also with doing the right things. Many of their decisionsreflect this philosophy. Initially, the company had a problem with employees reporting their suspicions about unethicalbehavior to the press instead of to EAI management. As a result, the company made sure its employees knew thefirm’s guidelines on fixing ethical issues. EAI also developed a code of conduct based on standards that continue to beupheld within the company. Since the code of conduct has been put in place, there have been fewer ethical violations.

Although employee salaries at EAI are not as high as those at competing firms, the company experiences very lowemployee turnover. The firm has created a corporate culture that not only makes its employees want to stay, but thatalso results in higher profits. If EAI can maintain the relationship it has built with its employees and customers, it willhave little difficulty keeping up its remarkable success.

Initially, employees were not willing to go to EAI management with ethical issues but would instead report them to the press. This is an example of

A.a social audit

B.poor employees

C.opportunity emptor

D.whistle-blowing

E.a narc

7
Excellent Air Inc. is a well-known establishment in the airline business. It is currently one of the top firms in theindustry. The company prides itself on good customer service and being concerned with the broader societal good. EAImanagement is not only concerned with doing things right, but also with doing the right things. Many of their decisionsreflect this philosophy. Initially, the company had a problem with employees reporting their suspicions about unethicalbehavior to the press instead of to EAI management. As a result, the company made sure its employees knew thefirm’s guidelines on fixing ethical issues. EAI also developed a code of conduct based on standards that continue to beupheld within the company. Since the code of conduct has been put in place, there have been fewer ethical violations.

Although employee salaries at EAI are not as high as those at competing firms, the company experiences very lowemployee turnover. The firm has created a corporate culture that not only makes its employees want to stay, but thatalso results in higher profits. If EAI can maintain the relationship it has built with its employees and customers, it willhave little difficulty keeping up its remarkable success.

EAI’s creation of its code of conduct demonstrated its application of moral standards to business situations, which isalso known as

A.business ethics

B.moral consciousness

C.social consciousness

D.social responsibility

E.moral responsibility

8
For firms like Target and Walmart, competition
A.is not a factor that must be considered in a free-market economy.
B.is a rivalry among businesses for sales to potential customers.
C.affects smaller businesses but not large chain operations.
D.affects larger chain operations but not smaller businesses.
E.is a problem that has been eliminated in the twenty-first century.
9

Frank Roberts recently has been named to head a major manufacturing plant at Dow Chemical. The plant has hadsignificant increases in inventory and declines in net income over the past two years. Frank’s task is to eliminate theexcess inventory and return the plant to its previous level of profitability. To begin solving this problem, Frank invitessuggestions from line workers, gathers managers from various levels of the plant to brainstorm, and talks with experts in the field of operations management. This step in the managerial decision-making process is known as

A.implementing a solution

B.identifying the problem

C.performance measurement

D.generating alternatives

E.selecting an alternative

10

If the United States exports $100 worth of diamonds to the Kingdom of Mocha and imports $80 worth of bows andarrows, it has a(n)

A.trade deficit

B.trade surplus

C.negative cash flow

D.unfavorable balance of trade

E.export slide