Question 1

Unlike large organizations, small businesses benefit from familiarity with employees and flexibility and informality in HR management.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following makes it possible for employees to self-enroll in a firm's benefits program through a secure Internet site?

Accepted Answer

A) executive support system 
B) management information system 
C) human resources information system 
D) electronic performance support system

Question 3

Research indicates that entrepreneurs tend to crave control.

Accepted Answer

A) True 
 B)False

Question 4

Beth recently opened an embroidery business and has four employees who work full-time for her. Which of the following will Beth most likely use to manage her company's human resources tasks?

Accepted Answer

A) manual HR system 
B) automated HR system 
C) HR outsourcer system 
D) HR scorecard system

Question 5

Approximately what percentage of people working in the U.S. are employed by small businesses?

Accepted Answer

A) 10% 
B) 25% 
C) 50% 
D) 75%

Question 6

Human resource management in small firms is unlike HR management in large firms for all of the following reasons EXCEPT ________.

Accepted Answer

A) size 
B) industry 
C) priorities 
D) informality

Question 7

Mark owns a small business that provides engineering consulting services. Mark is new to business ownership, and he has a list of questions he would like answered. Mark has logged on to the EEOC Web site to search for answers. Which of Mark's questions is LEAST likely to be addressed on this Web site?

Accepted Answer

A) What employees are exempt from overtime pay? 
B) How do I know if EEOC laws apply to my business? 
C) What should I do if someone files a charge against my firm? 
D) What constitutes unfair treatment in the workplace? 
E) How would I resolve a discrimination charge without facing a lawsuit?

Question 8

The Pension Protection Act of 2006 primarily benefits small business employers by ________.

Accepted Answer

A) allowing them to defer tax payments 
B) eliminating fees linked to retirement plans 
C) exempting employers from complex pension rules 
D) making contributions for employers and employees into IRA plans

Question 9

For a fee, a small business can receive an on-site safety consultation with an OSHA safety expert to help improve the health and safety systems at the worksite.

Accepted Answer

A) True 
 B)False

Question 10

Training programs at most small firms tend to focus on ________.

Accepted Answer

A) specific competencies needed at the firm 
B) long-term management skills 
C) strategy needs at the firm 
D) marketing and finance

Question 11

Which of the following is NOT an informal training method suggested for small businesses?

Accepted Answer

A) internal sales seminars 
B) offer to cover the tuition for special classes 
C) provide a library of tapes and DVDs for systematic, disciplined learning during commute times 
D) encourage the sharing of best practices among associates

Question 12

Human resource management activities, such as training, appraisals, and hiring, are typically formal at small firms but informal at large firms.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT an employee benefit that fits better with small businesses?

Accepted Answer

A) make them feel like owners 
B) consistent schedules 
C) make sure they have what they need to do their jobs 
D) constantly recognize a job well done

Question 14

While most small firms are affected by the Fair Labor Standards Act and the Occupational Safety and Health Act, only large firms need to be familiar with the Consumer Credit Protection Act.

Accepted Answer

A) True 
 B)False

Question 15

Charles Brown owns a small business with 60 employees. Currently his business does not have a retirement plan. He wants an easy method of offering retirement benefits to his employees. Which of the following would most likely be Charles' best option?

Accepted Answer

A) SIMPLE IRA plan 
B) Roth IRA plan 
C) stock options 
D) 401(k)plan

Question 16

What types of HR-related risks are faced by most small businesses? How can PEOs help small firms with these risks?

Accepted Answer

The answer of What types of HR-related risks are faced...

Question 17

Kate is applying for a job at Logan Electronics, a small firm. Kate has been asked to take the Wonderlic Personnel Test. What is Logan Electronics most likely trying to measure?

Accepted Answer

A) honesty and ethics 
B) psychological status 
C) general mental ability 
D) personality traits

Question 18

According to the text, what are the three tools that small businesses can use to improve their HR management practices?

Accepted Answer

A) informality, adaptability, and reliability 
B) flexibility, familiarity, and informality 
C) creativity, flexibility, and adaptability 
D) familiarity, formality, and flexibility

Question 19

The simplicity of SIMPLE IRAs makes them appropriate for small businesses with 100 or fewer employees.

Accepted Answer

A) True 
 B)False

Question 20

A small firm usually begins with a manual human resource management system before shifting to an automated system.

Accepted Answer

A) True 
 B)False

Exam 18: Managing Human Resources in Small and Entrepreneurial Firms

Unlike large organizations, small businesses benefit from familiarity with employees and flexibility and informality in HR management.

Which of the following makes it possible for employees to self-enroll in a firm's benefits program through a secure Internet site?

Research indicates that entrepreneurs tend to crave control.

Beth recently opened an embroidery business and has four employees who work full-time for her. Which of the following will Beth most likely use to manage her company's human resources tasks?

Approximately what percentage of people working in the U.S. are employed by small businesses?

Human resource management in small firms is unlike HR management in large firms for all of the following reasons EXCEPT ________.

The Pension Protection Act of 2006 primarily benefits small business employers by ________.

For a fee, a small business can receive an on-site safety consultation with an OSHA safety expert to help improve the health and safety systems at the worksite.

Training programs at most small firms tend to focus on ________.

Which of the following is NOT an informal training method suggested for small businesses?

Human resource management activities, such as training, appraisals, and hiring, are typically formal at small firms but informal at large firms.

Which of the following is NOT an employee benefit that fits better with small businesses?

While most small firms are affected by the Fair Labor Standards Act and the Occupational Safety and Health Act, only large firms need to be familiar with the Consumer Credit Protection Act.

Charles Brown owns a small business with 60 employees. Currently his business does not have a retirement plan. He wants an easy method of offering retirement benefits to his employees. Which of the following would most likely be Charles' best option?

What types of HR-related risks are faced by most small businesses? How can PEOs help small firms with these risks?

Kate is applying for a job at Logan Electronics, a small firm. Kate has been asked to take the Wonderlic Personnel Test. What is Logan Electronics most likely trying to measure?

According to the text, what are the three tools that small businesses can use to improve their HR management practices?

The simplicity of SIMPLE IRAs makes them appropriate for small businesses with 100 or fewer employees.

A small firm usually begins with a manual human resource management system before shifting to an automated system.