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1) Williamson is the owner of a small company that sells corporate gifts through an online store. Business has slowed down in recent months and he realizes that the organization must move in a different direction if it is to survive. He has reset some of the company's overall goals and wants to develop a plan to achieve those goals. He is anticipating the business environment to be volatile for the next few years. Considering the above information, it can be determined that his plan must be ________, ________, and ________.

A) operational; directional; rigid

B) informal; unwritten; flexible

C) strategic; general; rigid

D) strategic; directional; flexible

2) Is the following statement true or false?

Long-term plans are defined as those with a time frame beyond 3 years. Short-term plans are those with a time frame of 3 years or less.

3) Is the following statement true or false?

Alyssa just got hired as the director of HR for a new non-profit organization. She has to develop all the new policies and procedures for the organization. The types of plans she will need to create are single-use plans.

4) Is the following statement true or false?

Robert Downs, the owner of a new community newspaper in his hometown of Corning, New York, has set the following goal for his company: "To be a champion for free speech and for the development of the community." This is an example of a strategic goal of the company.

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Joshua Stredder
Joshua StredderLv10
29 Sep 2019

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Related questions

Entrepreneurship

1. Discuss what steps Craig took to develop and grow his business. (7 marks)

2. Illustrate the role Craig played in contributing towards the economy (8 marks)

clearrisk | craig rowe

Business is risky, but that is Craig Rowe’s business - risk management to be precise. Craig,

the President of ClearRisk Inc., becomes animated and energized as he explains his line of

work. “Risk,” he says, “is not negative. It is when there is opportunity for a downside or an

upside.” Risk management is about formalizing the decision making process. People are

constantly assessing risks, whether it is instinctively in crossing the street or deliberately in

weighing the pros and cons of buying a car. “Business people,” he says, “engage in the same

process whether in deciding where to build a head office or whether to buy another company.”

the entrepreneur

Craig spent almost 20 years in the insurance industry, where he started right out of high

school. Over the years, he attained various insurance designations and completed many

business courses and ample on-the-job training. Craig is naturally entrepreneurial and also

operated his own consulting company and became involved in several insurance industry

associations. This allowed him to develop a large network of connections.

Craig found himself thinking and talking more and more about risk management. He realized

that if businesses did some basic things to manage risk they would save money. In 2001 he

wrote a book on the topic and later adapted the ideas in to a workshop which he presented

throughout Canada and the United States. Insurance industry professionals and other business

people noticed Craig and saw the logic in his message. Soon he was being invited to speak to

various associations and was asked to assist in writing material on risk management. When

dealing with clients of his consulting business, he noticed the same set of steps and questions

could be applied to different realities in different types of companies. He was sure that there

was something that could be packaged and sold to assist these companies.

He went in search of risk management software. He found some, but none applicable to small

and mid-sized companies and organizations. So he decided to build it. He teamed with David

d’Entremont who had the background provide technical expertise. Together they founded

ClearRisk. They developed a business plan which became their roadmap, even though it was

constantly being adapted to take into account new realities, circumstances and goals. Craig estimates they are on version 30 by now!

Craig decided to leave his job and pursue ClearRisk full-time. It was not an easy decision to

make as Craig had a young family at the time. He had to engage in his own risk management

process and weigh his options. He had almost 20 years of solid insurance industry experience.

He had an extensive network of contacts. He had entrepreneurial experience through his

consulting business. He knew the market. He knew what his customers needed and he knew

that he could develop a product to meet that need. He found a solid business partner to

complement his skills. So the timing was right and after 10 years of thinking, dreaming and

percolating ideas, Craig made the leap in 2006.

Craig says that the biggest challenge facing ClearRisk and any business, whether it is in

starting, sustaining or growing the business, is cash. ClearRisk needed capital to develop its

product. For any business to have credibility with lenders and investors, that initial money has

to come from the business owner. Craig and David secured an operating line of credit from the

bank based on personal guarantees.

Step 2 was to seek more financing to start implementing the business. Craig says that it is

important to look for money before you need it because you are building relationships and

confidence and convincing people that you are creditworthy. A business plan is a necessity but

“everyone invests in people.” This applies to accessing financing from Business Development

Bank of Canada (BDC), Atlantic Canada Opportunities Agency (ACOA), or any government

organization, as well as private lenders and investors. It is necessary to raise private money to

leverage government money.

Another important factor in developing ClearRisk was being accepted by Memorial University’s

Genesis Centre, a facility which provides business and technical support to new and emerging

technology businesses. This added to their credibility and attracted the attention of angel

investors. Angel investors are business people with financial resources available to invest in

new promising businesses.

Technological businesses are expensive to grow and ClearRisk’s growth has been made

possible by private investors and organizations such as Growth Works (a venture capital

company). Ownership of the company is now shared with these investors and ClearRisk is a

corporation with multiple shareholders. One of the tradeoffs in taking money from investors is

that ownership becomes shared. Craig says, “You can have a big piece of something small or

a small piece of something big.” He chose the latter.

Craig’s idea has grown immensely. He keeps the numbers to himself, but says sales have

grown exponentially. His primary market is North America and the ClearRisk software has been

launched in French and Spanish. Customers do not pay an upfront fee; instead, they pay an

annual fee for the software and support. ClearRisk is constantly improving its products. The

team is always enhancing features and improving functionality. Currently, they offer three

programs to consumers: ClearRisk™ Manager, which enables an organization to build and

implement a risk management plan; ClearRisk™ Tracker, which facilitates tracking insurance

claims; and ClearRisk™ Trainer, an online instructional program which increases awareness of

risk and its management. The latter two products are offered in partnership with other

organizations.

ClearRisk’s web-based business is global; however, Craig is cautious about expanding beyond

North America. The insurance industries in the USA and Canada are relatively interconnected

and homogeneous. It would be very difficult to provide support to countries with different

regulations and different languages. ClearRisk offers a web-based software service so they

use web-based marketing, rarely using traditional media. They access all forms of social media

such as Facebook, Twitter, MySpace, and blogs and find the approach cost effective and high

impact. Social media facilitates the use of in-bound marketing.

In addition to web-based marketing, ClearRisk is now getting calls from referrals. Clients are

spreading the word to other businesses seeking a similar product. The demand for ClearRisk’s

product is expanding but Craig resists growing the team too quickly. Craig prefers a small team

and likes the dynamics of small groups. However, more sales people are needed and they will co-op

and computer science students to his company. He likes to hire young people. It is

rewarding to see them take shape and become leaders.

Craig speaks favorably about starting a new business in Newfoundland and Labrador. He

says that the provincial climate is positive. In addition to the practical and financial support

available, the provincial government has done a lot to assist business in recent years, including

reducing taxes and red tape and increasing funding.

When Craig reflects on the path his career has taken, he gives special acknowledgement to

Paul Johnson of Johnson Insurance as a business icon and an inspiration. Mr. Johnson

inherited his father’s small insurance office and built it into an innovative, billion-dollar

Company. Not only was Mr. Johnson a great businessman, he was a community-minded

Philanthropist. This is evident today throughout the capital city in the parks, trail ways, and the

Johnson Geo on Signal Hill. Mr. Johnson has influenced Craig’s professional and

Community life. In addition to Craig’s entrepreneurial success he is firmly rooted in his

Community; he currently serves as Chair of the YM/YWCA.

Craig has advice for young people who dream of starting their own businesses. He says to be

Informed, to go in with open eyes and to seek honest opinions from knowledgeable people. He

advises that an entrepreneur should realize that “the odds are against you, but you need the

tenacity and perseverance to stick with it. It is important to understand your industry, to

understand the need for your product or service and ultimately to understand the risks before

you make the leap.” In business, managing risk is everyone’s business!

1. Discuss what steps Craig took to develop and grow his business.

2. Illustrate the role Craig played in contributing towards the economy

How do organizations use blogs?

a.

To create virtual communities
b.

To build brands
c.

To develop relationships

d. Organizations use blogs for all these purposes.

Jeff is starting a new business blog and wants to be able to compete with established blog sites. He has asked for your advice. What should you tell him?

a.

Choose one topic and stick with it to give your blog stability.
b.

It is better to post long messages infrequently than to post short messages frequently.
c.

Never provide links to other blogs because your visitors might like those blogs more than yours.
d.

Use a commercial hosting site such as Blogger, Tumblr, or WordPress.

1 points

QUESTION 10

Alonzo has just been assigned to create a blog to use for market research and viral marketing. What advice would you give him?

a.

Scrutinize the blogosphere for buzz and for positive or negative postings about his organization and its products.
b.

Use a variety of hard-sell tactics to get the word out about his company’s products.
c.

Realize that blogs are useful for getting feedback only from customers, not industry experts.
d.

Alonzo should follow all these suggestions.

1 points

QUESTION 11

What is the most accurate statement about liability and legal issues related to text messaging?

a.

Spam is a concern only with e-mail, not with instant messaging.
b.

Companies cannot be held responsible if an employee gets into an accident while texting and driving on the job.
c.

Some organizations have instituted detailed digital-age e-policies, offer formal employee training, and use technology tools such as monitoring, filtering, and blocking.
d.

Because text messaging is so informal, messages sent or received cannot create legal liability for a company.

Q5. Table 5.5

Total Output Total Costs

0 10

1 18

2 21

3 23

4 24

5 26

6 29

7 33

8 38

9 44

10 51

In Table 5.5, the marginal cost of the third unit is

a. 2.

b. 4.

c. 3.

d. 1.

Q6. When marginal physical product begins to decline, marginal cost begins to increase.

a. true

b. false

Q7. It is possible for a firm to have positive fixed cost and zero total cost.

a. true

b. false

Q8. Which one of the following is TRUE?

a. Marginal cost increases as marginal physical product decreases.

b. Marginal cost decreases as marginal product decreases.

c. Total cost is the difference between marginal cost and total variable cost.

d. Total cost is the sum of marginal cost plus total variable cost.

Q9. The slope of the production function becomes negative when diminishing returns set in.

a. true

b. false

Q10. Table 5.7

Q Total Variable Cost Average Variable Cost Total Cost Average Total Cost

1 10 50

2 50 90

3 40

Refer to Table 5.7. What is the firm's total fixed cost?

a. 20

b. 40

c. 10

d. 30

Q11. When there are economic profits in a perfectly competitive industry

a. firms have no incentive to exit or enter the industry.

b. firms exit the industry.

c. firms enter the industry.

d. the high barriers to entry prevent further competition.

Q12. The market structure of perfect competition is defined by hundreds of firms producing an essential product, with barriers to the entry of new firms.

a. true

b. false

Q13. A single supplier of a good or service for which there is no close substitute is referred to as a(n)

a. monopolistic competitor.

b. strategic competitor.

c. monopoly.

d. oligopoly.

Q14. For the perfectly competitive firm the selling price of its product is determined by

a. the length of time it has been in business.

b. the amount it chooses to spend on marketing.

c. the interaction of market supply and demand.

d. the number of competing firms.

Q15. A company finds that at the MR = MC output level, its total cost is $500, total variable cost is $400, and total revenue is $450. Your advice to the firm is to

a. reduce output to reduce the cost of production.

b. continue to produce, as total revenue covers total variable cost.

c. increase output to reduce the per unit cost of production.

d. shut down immediately.

Q16. For a monopolist

a. P > MR.

b. P = MC.

c. P = ATC.

d. P = MR.

Q17. The perfect competitor

a. chooses the profit-maximizing quantity.

b. chooses the profit-maximizing price.

c. chooses a quantity that will make the most efficient use of his labor and capital resources.

d. produces what he thinks can be sold, regardless of cost.

Q18. In perfect competition, the larger firms will be able to charge a higher price than the smaller firms.

a. true

b. false

Q19. For the perfectly competitive firm, price equals marginal revenue.

a. true

b. false

Q20. For a monopolist, selling more units requires

a. allowing more firms to enter the industry.

b. hiring a more productive labor force.

c. forming a cartel.

d. lowering the selling price.

Q21. Monopolistic competition means

a. monopolies from several countries compete in the global market.

b. a large number of firms producing differentiated products.

c. a large number of firms producing homogeneous products.

d. few firms producing differentiated products.

Q22. Opportunistic behavior is discouraged by the desire to have repeat transactions.

a. true

b. false

Q23. By saying that firms in an oligopoly are interdependent, we mean that

a. actions by one will prompt reactions by others.

b. if one increases its profits, all others will increase profits as well.

c. all firms sell identical products.

d. if one increases its profits, all others will lose profits.

Q24. Price leadership is a form of

a. barrier to entry.

b. tacit collusion.

c. opportunistic behavior.

d. noncooperative behavior.

Q25. A monopolistically competitive firm in the long run

a. earns positive economic profits.

b. earns negative economic profits.

c. earns zero economic profits.

d. suffers economic losses.

Q26. Monopolistically competitive firms produce a product that is homogeneous.

a. true

b. false

Q27. Which of the following is a characteristic of both perfect competition and monopolistic competition?

a. In the long run, the firm will produce the output which minimizes average total cost.

b. Firms sell a homogeneous product.

c. In the long run, the firm will earn zero economic profit.

d. The firm seeks to differentiate its product from those of its competitors.

Q28. A monopolistically competitive firm uses advertising to

a. lower its costs.

b. differentiate its product.

c. signal its competitors that it is serious about staying in business.

d. motivate its work force.

Q29. For the monopolistic competitor, which is INCORRECT?

a. The profit maximizing rate of output is where the marginal cost curve intersects the marginal revenue curve.

b. The marginal revenue curve is downward sloping and lies below the demand curve.

c. Because the firm has some control over price, its demand curve slopes downward.

d. If the firm in a monopolistically competitive industry were making economic losses, firms would enter the industry.

Q30. Which of the following is TRUE?

a. In the model of price leadership, the dominant firm consistently charges the lowest price.

b. Opportunistic behavior is discouraged by the desire to have repeat transactions.

c. The strategic dependence that characterizes oligopoly means that no firms can earn positive accounting profits.

d. Price wars are most common in perfect competition.

Q31. Antitrust legislation seeks to correct market failure by ensuring that all firms in the industry earn an economic profit.

a. true

b. false

Q32. Market failures arise when

a. people look out for their own best interests.

b. there is a gap between the social and private costs of producing or consuming a good.

c. firms look out for their own best interests.

d. society seeks to operate at a point on the production possibilities curve.

Q33. Cases prosecuted under the Sherman Antitrust Act are intended to correct market failure arising from negative externalities.

a. true

b. false

Q34.

Figure 8.2

Refer to Figure 8.2. The market equilibrium is Q1. Point Q2 represents the optimal point of production. To reach Q2,

a. consumption of the good could be taxed.

b. a subsidy could be given to consumers.

c. production of the good could be taxed.

d. the industry producing the good should operate as a cartel.

Q35. What would happen in a free market system when production of a good generates negative externalities?

a. There would be a shortage of the good.

b. The equilibrium quantity of the good would be more than the efficient amount.

c. The equilibrium quantity of the good would be less than the efficient amount.

d. There would be a surplus of the good.

Q36. If providing a service results in negative external costs, then

a. the market price is below the true opportunity cost of resources used to provide the service.

b. the market price is above the true opportunity cost of resources used to provide the service.

c. the market quantity is too low.

d. market forces will always correct the problem.

Q37. The problem of positive externalities can be addressed by having some firms exit the industry.

a. true

b. false

Q38. The first case prosecuted under the Sherman Act was the antitrust case against Microsoft.

a. true

b. false

Q39. If your marginal tax rate is always higher than your average tax rate, then the tax system is a

a. proportional tax system.

b. regressive tax system.

c. fair tax system.

d. progressive tax system.

Q40. Private goods are characterized by the principle of rival consumption.

a. true

b. false

Q41. Collective bargaining is the process by which unions and employers negotiate the conditions of employment and wages.

a. true

b. false

Q42. The marginal physical product of labor is the addition to total revenue a firm experiences when it hires one additional worker.

a. true

b. false

Q43. A firm's marginal revenue product of labor curve is also

a. its labor demand curve.

b. its total revenue line.

c. its long-run input cost function.

d. its marginal cost curve.

Q44. An increase in the selling price of a product

a. increases the supply of labor to the industry.

b. increases the productivity of labor.

c. raises the firm's demand for labor.

d. decreases the supply of labor to the industry.

Q45. If unions succeed at restricting the supply of labor in any one area of the economy, wages in that sector will increase.

a. true

b. false

Q46. The fact that the labor supply curve slopes upward indicates that

a. workers seek to work more hours when the wage rises.

b. the income effect of a wage increases outweighs the substitution effect.

c. workers seek to work more hours when the wage decreases.

d. firms want to hire more workers when the wage rises.

Q47. The upward slope of the labor supply curve suggests that the income effect of a wage increase outweighs the substitution effect.

a. true

b. false

Q48. The number of strikes occurring in U. S. firms has steadily increased over the past 25 years.

a. true

b. false

Q49. Suppose a perfectly competitive firm faces a labor market in which the going wage rate is $480 per week. If the last worker hired has a marginal physical product of 12 units of output per week, what is the selling price of the firm's output?

a. $40 per unit

b. $480 per unit

c. $240 per unit

d. $12 per unit

Q50. If workers in an industry become less productive due to low employee morale, we would expect the

a. demand for workers to decrease.

b. wages in the industry to increase.

c. supply of workers to increase.

d. demand for workers to increase.

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