Exam 2 Study Guide
Chapter 5
1. What is a small business and what are the guidelines for the following sectors: manufacturing
business, wholesalers, retailers, agricultural business
2. What are some of the benefits of home based businesses?
3. Describe the three main reasons businesses fail.
4. What is a franchise and what are some of the benefits/ problems associated with this type of
business to both the franchisee and franchisor?
5. Define each type of private ownership and know the key differences: Sole proprietorship,
partnership, corporation
6. Define public ownership and collective ownership (cooperatives).
7. What are the differences between merger, acquisition and joint venture?
Chapter 6
1. Define entrepreneur and describe some of the key reasons for entering into an entrepreneurial
venture
2. Know the difference between classic, social and serial entrepreneurship
3. Describe the expanded opportunities available for entrepreneurs (globalization, education,
demographic, IT)
4. What are the key characteristics of entrepreneurs?
5. What are some advantages to buying an established business? What about a new venture?
6. What are the two main types of financing and describe the components of each (Credit Cards,
family and friends, bank loans, venture capital, and angel investors)
7. Define government support initiatives such as business incubators and enterprise zones
8. What is intrapreneurship?
Chapter 7
1. What are the three main levels of management and how do they differ?
2. What are the basic skills for management success and why are they important?
3. Describe the four types of planning and what management level is responsible for each
(strategic, tactical, operational, contingency).
4. What is the strategic planning process?
5. What are the four components of the SWOT analysis and why is each one important? Which are
external focused and which internal?
6. What is the difference between a programmed decision and a non-programmed decision?
7. Describe the difference between a leader and a manager and know the 3 key traits common
among managers.
8. What are the three types of leadership styles and what are their key components?
9. Describe the five types of departmentalization used in an organization.
10. Know the difference between a centralized company and a decentralized one.
11. Define and know the difference between line organizations and line and staff organizations.
12. What is ta matrix organization and what are some of the advantages and disadvantages of each?
Chapter 8
1. What is HR management and what are the three main objectives of HR departments?
2. What are some of the challenges HR faces with new technologies and what are some of the
advantages?
3. What type of content would you expect at an orientation? What about training programs?
4. What is a performance appraisal and what are some of the forms available (ie. Peer reviews, 360
reviews, etc)
5. What is the difference between wages and salary and what are the five factors that must be
analyzed for proper compensation?
6. What are the four types of incentive compensation?
7. What are employee benefits? Be familiar with flexible benefit options, including PTO.
8. Define flex time, compressed work week, job sharing program and home-based program.
9. Know the difference between the following terms: Involuntary vs voluntary separation,
downsizing vs outsourcing.
10. Be familiar with Maslow’s five hierarchy of needs and how businesses fill them (psychological,
safety, social, esteem, self-actualization)
11. What is the difference between Herzberg’s hygiene factors and motivator factors?
12. What is the difference between expectancy theory and equity theory?
13. What are the two different theories regarding manager attitudes and motivation according to
Douglas McGregor?
14. Define the following: job enlargement and job enrichment?
15. What are labor unions and what are some of their collective bargaining issues?
Chapter 9
1.
2.
3.
4.
5.
6.
7.
8.
What does it mean to empower an employee?
What is the difference between employee stock options and ownership?
List the five type of teams and their basic differences.
What are the five stages of team development?
What is the difference between cognitive and affective conflict?
Define low context and high context cultures and identify their key differences.
What are the four types of listening?
Define the types of communication, ie formal, informal, verbal.