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21) Tiffany Smith owns a barbecue restaurant. One expense that

Question : 21) Tiffany Smith owns a barbecue restaurant. One expense that

 

21) Tiffany Smith owns a barbecue restaurant. One expense that Tiffany watches closely is the cost of propane, which she uses to heat her ovens. The more barbecue food Tiffany sells, the more it costs her for propane on a monthly basis. For Tiffany, the cost of propane is a(n):

A) variable cost

B) secondary cost

C) resultant cost

D) fixed cost

E) irregular cost

22) ________ are similar to economies of scale, except the advantage comes through the scope (or range) of a firm's operations rather than from its scale of production.

A) Economies of reach

B) Economies of span

C) Economies of capacity

D) Economies of range

E) Economies of scope

23) Market leadership occurs when:

A) a firm is the number one or the number two firm in an industry or niche market in terms of net profits

B) a firm is one of the top five firms in an industry or market niche in terms of sales volume

C) a firm earns twice as much as its closest competitor

D) a firm sells twice as much as its closest competitor

E) a firm is the number one or the number two firm in an industry or niche market in terms of sales volume

24) Some firms feel that they can better appeal to their customers if they can advertise that they are "the Number 1 firm" in their industry. This sentiment is motivated by the reason for growth labeled:

A) economies of scope

B) need to accommodate the growth of key customer

C) economies of scale

D) market leadership

E) influence, power, and survivability

25) Valarie owns a company that makes specialized components for the auto industry. Her most important customer is a company that is growing at a rate of 25% per year. Valarie is working hard to grow her firm, because she knows that unless her company continually grows it will not be able to keep pace with the growth of its most important customer. This examples illustrates the reason for growth referred to as:

A) capturing economies of scope

B) executing a scalable business model

C) market leadership

D) influence, power, and survivability

E) need to accommodate the growth of key customer

26) The majority of businesses go through a discernable set of stages of growth referred to as the:

A) business rotation cycle

B) business existence cycle

C) organizational sequence

D) business life cycle

E) organizational life cycle

27) Which of the following is not one of the five stages in the organizational life cycle?

A) maturity

B) scale

C) decline

D) early growth

E) introduction

28) The ________ stage of the organizational life cycle is the startup phase, where a business determines what its core strengths and capabilities are and starts selling its initial product or service.

A) introduction

B) launch

C) ramp-up

D) early growth

E) continuous growth

29) The main challenges for a business in the introduction stage of the organizational life cycle is:

A) beginning the process of transitioning the owner from a hands-on supervisor to a more managerial role and developing business partnerships

B) developing business partnerships and making sure the initial product or service is right

C) determining whether the owner of the business and the current management team is capable of taking the business further and developing systems and procedures

D) developing systems and procedures and beginning the process of transitioning the owner from a hands-on supervisor to a more managerial role

E) making sure the initial product or service is right and starting to lay the groundwork for building a larger organization

30) For a business to be successful in the early growth stage of the organizational life cycle, two important things must happen:

A) the founder or owner of the business must start transitioning from his or her role as the hands-on supervisor to a more managerial role and increased formalization must take place

B) a decision must be made whether the owner-manager and the current management team is capable of taking the business further and the organization must start laying the groundwork for future growth

C) increased formalization must take place and the business must achieve price stability

D) a decision must be made whether the owner-manager or the current management team is capable of taking the business further and business partnerships must be established

E) the founder or owner of the business must start transitioning from his or her role as the hands-on supervisor to a more managerial role and the business must be cash flow positive

 

 

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