Business Essentials 6th Canadian Edition by Ebert – Test Bank

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Business Essentials 6th Canadian Edition by Ebert – Test Bank

CHAPTER 6

MANAGING THE BUSINESS ENTERPRISE

 

MULTIPLE CHOICE QUESTIONS.  Choose the one alternative that best completes the statement or answers the question.

 

1)Which of the following are correct regarding the opening case entitled “Corporate Culture”?

A)It has been demonstrated that corporate culture has a minor, but not a major, influence on employees

B)WestJet has moved away from its former corporate culture that emphasized profit-sharing

C)Even companies that focus on one type of product have fairly heterogeneous cultures

D)The majority of managers who were surveyed by Waterstone Human Capital said that the corporate culture of their company was not what they wanted it to be

E)All of these are correct

Answer: D

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: Who Are Managers?

 

2)Which of the following would be included under the definition of a manager?

A)President of IBM

B)Prime Minister of Canada

C)Head of the business department at a local college

D)Shipping dock foreman

E)All of these would be included

Answer: E

Diff: 1

Skill: Application

Objective: 6.1

A-Heading: Who Are Managers?

 

3)The president of Bob’s Barbecue is reassessing his company’s goals with the expectation that the company strategy would be modified. He is involved in ________.

A)staffing

B)planning

C)directing

D)organizing

E)controlling

Answer: B

Diff: 1

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

4)Determining what a firm needs to do and how best to accomplish that is called

A)controlling.

B)staffing.

C)directing.

D)planning.

E)organizing.

Answer: D

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

5)Which of the following best captures the difference between efficiency and effectiveness?

A)Efficiency means doing what the company’s engineers want, while effectiveness means doing what consumers want

B)Efficiency means maximizing output, while effectiveness means maximizing profit

C)Efficiency means doing things right, while effectiveness means doing the right things

D)Efficiency means doing what production wants, while effectiveness means doing what the marketing department wants

E)Efficiency means working as fast as possible, while effectiveness means working smart

Answer: C

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

6)At Cisco Systems, 20 employees in a chip-design unit bought shares  based on how many defects they thought they would be found in a new product. This is an example of

A)contingency planning.

B)crisis management.

C)prediction markets.

D)probability analysis.

E)stock market speculation.

Answer: C

Diff: 1

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

7)The purpose of the four-part management process is to

A)determine what the organization needs to do.

B)create jobs for society.

C)monitor the organization’s performance in order to ensure that goals are achieved.

D)increase employee satisfaction.

E)achieve the organization’s goals of supplying various products and services to society.

Answer: E

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

8)________ involves determining what the business needs to do and the best way to achieve it.

A)Organizing

B)Planning

C)Leading

D)Controlling

E)None of these

Answer: B

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

9)Which of the following is supported by Mintzberg’s research on chief executive officers?

A)Managerial activities are characterized by variety

B)Managers work at an unrelenting pace

C)Managers prefer verbal media

D)Managers prefer live action

E)All of these are supported

Answer: E

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

10)Mintzberg’s research on managers showed which of the following?

A)Managers prefer written media

B)Managers work under varying degrees of pressure, sometimes being very busy, and sometimes much less busy

C)Managers typically begin a task and then work on it until it is finished

D)Managers have a preference for historical data rather than “live action”

E)None of these

Answer: E

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

11)If a manager attends a subordinate’s wedding, this is an example of the ________ role.

A)liaison

B)entrepreneur

C)figurehead

D)leader

E)disseminator

Answer: C

Diff: 1

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

12)When a manager responds to a strike at a supplier, the manager is acting in the ________ role.

A)disturbance handler

B)liaison

C)monitor

D)resource allocator

E)leader

Answer: A

Diff: 1

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

13)In terms of Mintzberg’s managerial roles, the person responsible for the work of the unit is a

A)disturbance handler.

B)negotiator.

C)leader.

D)spokesperson.

E)liaison.

Answer: C

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

14)Ronald Koslowsky, a marketing manager at Wintron Co., receives a telephone call from LeRoy Shelton, a marketing manager at Young-Times Inc. The two chat socially, occasionally talking about different parts of their work. This is an example of a manager operating in Mintzberg’s ________ role.

A)disseminator

B)spokesperson

C)liaison

D)negotiator

E)resource allocator

Answer: C

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

15)Tom Smith Jr., a manager responsible for hockey stick tape production at StickStuck Corp., spontaneously tours the plant to check on what’s going on. By so doing, Tom is functioning in Mintzberg’s ________ role.

A)resource allocator

B)monitor

C)figurehead

D)leader

E)liaison

Answer: B

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

16)Jack Leutens, senior manager of marketing research at Tromex Enterprises, calls in seven of his subordinates to brief them on his recent research findings regarding new machinery that might be relevant for Tromex. This is an example of a manager functioning in the role Mintzberg called the

A)leader.

B)disseminator.

C)monitor.

D)spokesman.

E)resource allocator.

Answer: B

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

17)”Ms. Jensen, there’s someone here from the radio station to interview you about the explosion.”  Ms. Jensen is about to function in the role Mintzberg described as

A)monitor.

B)disseminator.

C)spokesperson.

D)resource allocator.

E)leader.

Answer: C

Diff: 1

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

18)Midge thought anxiously about how to position her company for the future. By so doing, Midge functioned in the role Mintzberg called

A)negotiator.

B)spokesperson.

C)entrepreneur.

D)resource allocator.

E)figurehead.

Answer: C

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

19)”Hey Reg! I just caught two kids shoplifting!  What do I do now?” the assistant manager said to his boss, Reg Caluza. Reg was about to function in the role Mintzberg identified as the

A)spokesperson.

B)figurehead.

C)disturbance handler.

D)resource allocator.

E)monitor.

Answer: C

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

20)Cecil and Cyrus, two of Simpson’s top employees, stormed into their manager’s office. Both were intent on securing approval from her for projects they were proposing for the company. Shelly Simpson, manager at Soho, Howso, Tatso & Associates, was about to function in the role Mintzberg identified as the

A)resource allocator.

B)entrepreneur.

C)figurehead.

D)liaison.

E)monitor.

Answer: A

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

21)Burton Kawalski, Vice President of Personnel at QVJ Corporation, sat down at the bargaining table across from the leader of the union, Vladmir Ramonovitch. Burton’s expertise in the managerial role Mintzberg called ________ was about to be tested.

A)entrepreneur

B)liaison

C)disseminator

D)figurehead

E)negotiator

Answer: E

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

22)”Excuse me,” the secretary began. “Don’t you have a 3:30 appointment to present a gold watch to Mr. Chung?” The manager froze in her tracks, realized the secretary was correct, and immediately began preparing herself to fulfill the managerial role identified by Mintzberg as

A)figurehead.

B)leader.

C)disseminator.

D)liaison.

E)entrepreneur.

Answer: A

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

23)If a manager attends a subordinate’s wedding, this is an example of the ________ role.

A)entrepreneur

B)disseminator

C)figurehead

D)liaison

E)leader

Answer:  C

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

24)The managerial role theory was developed by

A)Henry Mintzberg.

B)James Bryant Quinn.

C)Tom Peters and Robert Waterman.

D)Harlan Cleveland.

E)Peter Drucker.

Answer:  A

Diff: 1

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

25)Which of the following is not supported by Mintzberg’s research on chief executive officers?

A)Managers work at an unrelenting pace

B)Managers prefer “live” action

C)Managerial activities are characterized by brevity

D)Managers are attracted to the verbal media

E)Managerial activities are characterized by a lack of variety

Answer:  E

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

26)Mintzberg’s studies of managerial work showed it had all the following characteristics except

A)work involves many quick decisions.

B)work was at an unrelenting pace.

C)managers are attracted to verbal media.

D)managers have a preference for “live” action.

E)activities were characterized by brevity, variety, and fragmentation.

Answer:  A

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

27)Mintzberg believes that there are three roles that managers perform. They are

A)inspirational, managerial, interpersonal.

B)interpersonal, informational, decision-making.

C)managerial, interpersonal, decision-making.

D)managerial, interpersonal, informational.

E)decision-making, inspirational, informational.

Answer:  B

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

28)Mintzberg’s research on managers showed which of the following?

A)Managers work at an unrelenting pace

B)Managers work under varying degrees of pressure, sometimes being very busy, and sometimes much less busy

C)Managers prefer written media

D)Managers have a preference for historical data rather than “live action”

E)Managers typically begin a task and then work on it until it is finished

Answer:  A

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

29)Mintzberg’s decision-making roles include all of the following except

A)disturbance handler.

B)liaison.

C)resource allocator.

D)negotiator.

E)entrepreneur.

Answer: B

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

30)Monitoring the organization’s performance to ensure that it meets its goals is known as

A)controlling.

B)organizing.

C)planning.

D)leading.

E)none of these.

Answer: A

Diff: 1

Skill: Recall

Objective: 6.1

 

31)The first step in the control process is to

A)establish standards.

B)determine the jobs to be performed.

C)determine what the organization needs to do.

D)measure performance.

E)define the problem.

Answer: A

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

32)Determining the best way to arrange a business’s resources and activities into a proper structure is

A)staffing.

B)controlling.

C)directing.

D)planning.

E)organizing.

Answer: E

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

33)When the CEO of Compaq Computers broke the company down into several smaller units, each being responsible for its own functions, he was engaging in the management function of

A)organizing.

B)staffing.

C)planning.

D)controlling.

E)directing.

Answer: A

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

34)Guiding and motivating employees to meet an organization’s objectives is called

A)controlling.

B)planning.

C)organizing.

D)leading.

E)staffing.

Answer: D

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

35)Scott is the store manager at one of the Computers R Us retail stores. Each Monday he meets with all the employees to review the assignments for the week and provide assistance for those who need it. Scott is engaged in the management process of

A)planning.

B)organizing.

C)controlling.

D)staffing.

E)leading.

Answer: E

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

36)________ involves structuring the necessary resources to achieve a particular task.

A)Controlling

B)Planning

C)Organizing

D)Leading

E)None of these

Answer: C

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

37)Determining the jobs to be performed and how best to arrange the jobs into a logical system is known as

A)controlling.

B)decision making.

C)management.

D)entrepreneurship.

E)organizing.

Answer: E

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

38)The management process of monitoring a firm’s performance to make sure that it is meeting its goals is known as

A)directing.

B)planning.

C)staffing.

D)controlling.

E)organizing.

Answer: D

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

39)Scott, the manager of a Computers R Us store, in reviewing the sales results from last week noticed that all but one employee was on target. As he contemplated how to fix the problem he was engaged in the management process of

A)controlling.

B)organizing.

C)planning.

D)directing.

E)staffing.

Answer: A

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

40)The hierarchy of plans, starting from the top, is

A)tactical plans, strategic plans, operational plans.

B)strategic plans, tactical plans, operational plans.

C)strategic plans, operational plans, tactical plans.

D)operational plans, tactical plans, strategic plans.

E)operational plans, strategic plans, tactical plans.

Answer:  B

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

41)A(n) ________ is a plan which is decided by a firm’s top management, and which reflects the company’s priorities, as well as the steps needed to meet strategic goals.

A)tactical plan

B)operational plan

C)standing plan

D)strategic plan

E)single-use plan

Answer:  D

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

42)The first step in the control process is to establish standards. What is the next step?

A)Adjust performance or standards as necessary

B)Define the problem

C)Compare performance with standards

D)Generate alternatives

E)Measure performance

Answer: E

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

43)Which activity is not part of the management process?

A)Human resource planning

B)Organizing

C)Planning

D)Leading

E)Controlling

Answer:  A

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

44) Steve motivates employees by rewarding them with additional vacation time when standards are achieved. Steve is involved in the management function of ________.

  1. A) leading
  2. B) controlling
  3. C) planning
  4. D) organizing

E)it is not possible to tell with the information provided

Answer:  A

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

45)At the end of the budget period, Mary compares actual performance against standards. When she does this, she is performing the ________function of management.

A)planning

B)organizing

C)leading

D)controlling

E)negotiation

Answer:  D

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

46) Amy Madison has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of the ________ management function.

  1. A) planning
  2. B) organizing
  3. C) leading
  4. D) controlling

Answer:  D

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

47)The four-part management process includes

A)Planning, organizing, leading and decision making

B)Planning, decision making, target establishment, and comparison of performance to the standard

C)Organizing, planning, leading and controlling

D)Leading, organizing, controlling, and goal establishment

E)Planning, controlling, leading and decision-making

Answer:  C

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

48)Determining what the organization needs to do and how best to get it done is known as

A)Planning

B)Entrepreneurship

C)Controlling

D)Decision making

E)Organizing

Answer:  A

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

49)________ involves mobilizing the necessary resources to complete a task. A)Organizing

B)Deciding

C)Planning

D)Controlling

E)Leading

Answer:  A

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

50)When Louis Gerstner was CEO of IBM, he cut costs and committed IBM to new products and services. He was engaged in the management process of

A)planning.

B)organizing.

C)directing.

D)controlling.

E)staffing.

Answer:  A

Diff: 1

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

51)________ involves structuring the necessary resources to achieve a particular task.

A)Allocating

B)Controlling

C)Leading

D)Organizing

E)Planning

Answer:  D

Diff: 1

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

52)Organizing involves

A)developing an efficient plan for the use of time.

B)developing an organizational chart.

C)determining who reports to whom and what each employee does.

D)structuring the necessary resources to complete a particular task.

E)determining how best to use available material resources.

Answer:  D

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

53)When Millie was appointed president of Goodcare Hospital, she noticed that the former president had all the major functions reporting directly to him. She is analyzing the functions to see how they could be restructured to be more efficient. She is engaged in the management process of

A)planning.

B)staffing.

C)organizing.

D)directing.

E)controlling.

Answer:  C

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

54)Leading involves

A)giving direction to subordinates.

B)managing employees so that they will enthusiastically complete their jobs.

C)guiding and motivating employees to meet the firm’s objectives.

D)acting in a fair way when dealing with employees.

E)giving employees the enthusiastic support they need to complete their jobs.

Answer:  C

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

55)The management process which involves interactions between managers and their subordinates is

A)leading.

B)planning.

C)controlling.

D)organizing the jobs.

E)decision making.

Answer:  A

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

56)When the  CEO of Compaq monitors the engineers’ performance to make sure that they are on track with Compaq goals, he is

A)leading.

B)planning.

C)staffing.

D)controlling.

E)organizing.

Answer:  D

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

57)Controlling involves

A)monitoring expenses and revenues to ensure that the company is profitable.

B)reviewing data to ensure that employees are doing what they are supposed to do.

C)reviewing all financial and productivity data to ensure that the company is achieving its goals.

D)monitoring the firm’s performance and acting to bring it in line with the firm’s goals.

E)ensuring that all policies and procedures are followed within a company.

Answer:  D

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

58)Vice president, treasurer, chief executive officer, and president are found at the ________ level of management.

A)first-line

B)intermediate

C)top

D)middle

E)officer

Answer:  C

Diff: 1

Skill: Application

Objective: 6.2

A-Heading: Types of Managers

 

59)The title “Division Manager” is an example of a ________ management position.

A)lower

B)middle

C)liaison

D)first-line

E)top

Answer:  B

Diff: 1

Skill: Application

Objective: 6.2

A-Heading: Types of Managers

 

60)Top level managers are responsible for all of the following except

A)the overall performance of the organization.

B)formulating strategies.

C)representing the organization in its dealings with other organizations.

D)implementing policies.

E)dealing with the external environment.

Answer:  D

Diff: 1

Skill: Application

Objective: 6.2

A-Heading: Types of Managers

 

61)A manager whose title is “Chief Executive Officer” would be a member of

A)middle level management.

B)the marketing department.

C)first line management.

D)top level management.

E)bottom level management.

Answer:  D

Diff: 1

Skill: Application

Objective: 6.2

A-Heading: Types of Managers

 

62)Top managers typically have the following job titles except

A)vice-president.

B)president.

C)executive vice-president.

D)general manager.

E)chief executive officer.

Answer:  D

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

63)Middle managers typically have the following job titles except

A)general manager.

B)operations manager.

C)plant manager.

D)production supervisor.

E)division manager.

Answer:  D

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

64)Plant manager, operations manager, and division manager are at the ________ management level.

A)top

B)officer

C)first-line

D)intermediate

E)middle

Answer:  E

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

65)Supervisor, office manager, and group leader are at the ________ management level.

A)middle

B)officer

C)top

D)intermediate

E)first-line

Answer:  E

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

66)First-line managers typically have the following job titles except

A)foreman.

B)office manager.

C)production supervisor.

D)plant manager.

E)supervisor.

Answer:  D

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

67)The development, pricing, promotion, and distribution of a product is the responsibility of

A)first level managers.

B)financial managers.

C)human resource managers.

D)marketing managers.

E)operations managers.

Answer:  D

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

68) Which managers are responsible for production and quality control?

A)information managers

B)human resource managers

C)first-line managers

D)operations managers

E)marketing managers

Answer:  D

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

69) Which managers are responsible for the development, pricing, promotion and distribution of goods and services?

A)operations

B)information systems

C)marketing

D)finance

E)none of these

Answer:  C

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

70)Which managers are responsible for getting products from producers to consumers?

A)production managers

B)operations managers

C)information managers

D)marketing managers

E)human resource managers

Answer:  D

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

71)Which managers design and implement systems to gather, organize, and distribute information?

A)marketing managers

B)information managers

C)production managers

D)human resource managers

E)financial managers

Answer:  B

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

72)Which managers plan and oversee the firm’s accounting functions?

A)financial managers

B)information managers

C)production managers

D)human resource managers

E)marketing managers

Answer:  A

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

73)Companies like Procter & Gamble, Coca-Cola, and Levi Strauss have a particularly strong need for ________ managers.

A)human resources

B)information

C)finance

D)operations

E)marketing

Answer:  E

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

74)The hiring, training, evaluation, and compensation of employees is the responsibility of

A)research and development managers.

B)operations managers.

C)vice-presidents.

D)human resource managers.

E)supervisors.

Answer:  D

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

75)The ________ of a firm spend most of their time working with and managing the employees who report to them.

A)middle managers

B)officers

C)top managers

D)intermediate managers

E)first-line managers

Answer: E

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

76)The ________ manager is responsible for getting the product from the producer to the consumer.

A)information

B)human resources

C)finance

D)operations

E)marketing

Answer: E

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

77)The ________ managers are responsible for planning and overseeing the firm’s accounting function and publication of the annual report.

A)marketing

B)financial

C)operations

D)human resources

E)information

Answer: B

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

78)The ________ manager helps hire and train employees as well as determine compensation.

A)marketing

B)finance

C)information

D)operations

E)human resources

Answer: E

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

79)________ managers design and implement systems to gather, organize, and distribute data.

A)Information

B)Finance

C)Operations

D)Human resources

E)Marketing

Answer: A

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

80)The ________ managers are responsible for production, inventory, and quality control.

A)operations

B)finance

C)human resources

D)marketing

E)information

Answer: A

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

81)Jackie is responsible for hiring, training, development, and evaluation of employees. She is

A)a research and development manager.

B)a human resource manager.

C)a supervisor.

D)an operations manager.

E)a marketing manager.

Answer: B

Diff: 1

Skill: Application

Objective: 6.2

A-Heading: Types of Managers

 

82)Technical skills are especially important for

A)middle level managers.

B)members of the board of directors.

C)top level managers.

D)company presidents.

E)first-line managers.

Answer:  E

Diff: 1

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

83)The ability to type, to create a spreadsheet, or to write a computer program are examples of which basic management skill?

A)Decision-making

B)Conceptual

C)Human relations

D)Time-management

E)Technical

Answer:  E

Diff: 1

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

84)At what level of management are technical skills relatively unimportant?

A)Bottom

B)Top

C)Front-line supervisor

D)First-line

E)Middle

Answer:  B

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

85)The technical skills, human relations skills, and conceptual skills of managers

A)shift in their degree of importance as the manager rises to the top of the organization.

B)shift so that the technical skills become more important to the higher level manager.

C)retain the same degree of importance as a manager progresses “up the organization ladder” to the top.

D)shift so that the conceptual skills become less important to the higher level manager.

E)shift so that human relations skills become more important than conceptual skills to the higher level manager.

Answer:  A

Diff: 3

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

86)All of the following statements about basic management skills are correct except

A)they include the ability to think in the abstract.

B)they include human relations skills.

C)they include time-management skills.

D)the emphasis on each skill remains the same regardless of the level of management.

E)they are skills that are needed by all managers.

Answer:  D

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

87)Which skill do top-level managers use more than first-level managers?

A)Strategy

B)Technical

C)Human relations

D)Conceptual

E)Marketing

Answer:  D

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

88)The ability to think in the abstract, to diagnose and analyze different situations, and to see beyond the present is known as a(n) ________ skill.

A)technical

B)intuition

C)conceptual

D)human relations

E)decision making

Answer:  C

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

89)Selection of the best course of action in a particular situation is known as

A)organizing.

B)planning.

C)management.

D)decision making.

E)controlling.

Answer:  D

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

90)The ________ skills are those needed to perform specialized tasks.

A)time-management

B)technical

C)human relations

D)conceptual

E)decision-making

Answer: B

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

91)Technical skills are especially important for Tim. He is a

A)first-line supervisor.

B)top-level manager.

C)member of the board of directors.

D)middle-level manager.

E)vice-president.

Answer: A

Diff: 1

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

92)The basic management skill that deals with understanding and getting along with people is

A)conceptual.

B)technical.

C)human relations.

D)decision-making.

E)time-management.

Answer: C

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

93)The basic management skill that is demonstrated in one’s ability to think in the abstract and to see beyond the present situation is ________ skill.

A)human relations

B)time-management

C)technical

D)decision-making

E)conceptual

Answer: E

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

94)The skills that are of particular importance for the top managers of a firm are the ________ skills.

A)decision-making

B)time-management

C)human relations

D)conceptual

E)technical

Answer: D

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

95)Because many managers are paid large sums of money, the ________ skill is particularly important.

A)conceptual

B)technical

C)human relations

D)decision-making

E)time-management

Answer: E

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

96)Jim wants to apply the rational decision making process to a management problem he is facing.  He has already recognized and defined the decision making situation.  What should he do next?

A)Select the best alternative

B)Identify alternatives

C)Evaluate alternatives

D)Implement the chosen alternative

E)Follow up and evaluate the results

Answer: B

Diff: 2

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

97)Marilyn is involved in making an important decision regarding the purchase of new equipment for her company’s only manufacturing plant.  She has just identified several alternative possibilities that will solve the problem that is facing her.  What should she do next?

A)Select the best alternative

B)Identify alternatives

C)Evaluate alternatives

D)Implement the chosen alternative

E)Follow up and evaluate the results

Answer: C

Diff: 2

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

98)When Boeing and Airbus were trying to decide how they should respond to the question of how they could increase their international capacity, they were in what stage of the rational decision making process?

A)Select the best alternative

B)Identify alternatives

C)Evaluate alternatives

D)Implement the chosen alternative

E)Follow up and evaluate the results

Answer: C

Diff: 2

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

99)When Airbus decided to develop and manufacture a new jumbo jet to meet the demand for increased international travel, it was involved in what stage of the rational decision making process?

A)Select the best alternative

B)Identify alternatives

C)Evaluate alternatives

D)Implement the chosen alternative

E)Follow up and evaluate the results

Answer: A

Diff: 1

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

100)When people take certain actions as they try to get the outcomes they want, this is known as

A)intuition.

B)quantitative analysis.

C)organizational politics.

D)escalation of commitment.

E)risk propensity.

Answer: C

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

101)Expo ’86, the world’s fair that was held in British Columbia, is cited as an example of

A)good use of intuition.

B)quantitative analysis.

C)organizational politics.

D)escalation of commitment.

E)risk propensity.

Answer: D

Diff: 1

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

102)What does the term “escalation of commitment” mean?

A)As a project proceeds toward successful completion, managers make an increased commitment to doing a good job

B)The actions that managers take as they try to get the outcomes they desire

C)As a project proceeds, managers become increasingly committed to it even if there is evidence that it is not working out as planned

D)It refers to how much a manager is willing to gamble when making decisions

E)None of these

Answer: C

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

103)What is the primary purpose of setting a goal for an organization?

A)Determines if the firm is highly leveraged

B)Makes workers think in quantitative terms

C)Identifies threats and opportunities

D)Assures successes for the firm

E)Provides guidance and direction for all managers

Answer:  E

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

104)Objectives that a business hopes (and plans) to achieve are called

A)implementation steps.

B)actions.

C)tactics.

D)strategies.

E)goals.

Answer:  E

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

105)When used as the means for measuring success or failure, goals are operating as

A)management tools.

B)budget standards.

C)bonus criteria.

D)performance targets.

E)motivators.

Answer: D

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

106)Beta Company has set a goal of increasing sales by 10% this year.  This goal will most likely have the following effect

A)it will motivate managers.

B)it will assist in the allocation of advertising dollars.

C)it will assist in the allocation of resources.

D)it will provide direction for managers.

E)all of these.

Answer: E

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

107)3M Corp.’s stated goal of earning 30 percent of its profits from sales of products less than four years old is an example of goals that

A)define corporate culture.

B)help assess performance.

C)help allocate resources.

D)provide direction.

E)help make decisions.

Answer: D

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

108)Mega Computer has decided that within the next five years it wants to become an industry leader in disk drive technology, a technology that has little existing support inside the company at this time. This goal will

A)help assess performance.

B)help make decisions.

C)help allocate resources.

D)provide direction.

E)help define corporate culture.

Answer: D

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

109)By looking at the sales potential for each product we can use goals to

A)help define corporate culture.

B)help allocate resources.

C)help assess performance.

D)help make decisions.

E)provide direction.

Answer: B

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

110)KWS Corp. wants to increase marketing this coming winter season.  This is most likely an example of

A)intermediate goals.

B)short term goals.

C)formulating strategy.

D)long term goals.

E)none of these.

Answer: B

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

111)If Ben and Jerry’s Ice Cream has a goal of investing 2 percent of their after-tax profits in charitable contributions, that goal

A)helps allocate resources.

B)helps assess performance.

C)provides direction.

D)helps to define corporate culture.

E)helps make decisions.

Answer: D

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

112)Mega Computer has a goal of reducing its manufacturing costs by 15 percent over the next three years. Each of the manufacturing managers has been given tasks to reach this goal. In this case the goal

A)helps assess performance.

B)provides direction.

C)helps allocate resources.

D)helps make decisions.

E)defines corporate culture.

Answer: A

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

113)The management of Consumer Products Inc. has set a target of increasing their current market share from 15 percent to 20 percent. The market is very competitive, and all employees are expected to do whatever it takes to achieve this goal. The goal

A)helps allocate resources.

B)helps assess performance.

C)defines corporate culture.

D)provides direction.

E)helps make decisions.

Answer: C

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

114)Reebok wants to make a profit by manufacturing and selling athletic shoes and related merchandise. This is their

A)strategic goal.

B)long-term goal.

C)purpose.

D)short-term goal.

E)mission.

Answer: C

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

115)With respect to the concepts of “purpose” and “mission,” which of the following is correct?

A)A purpose is a statement of how an organization will behave with respect its stakeholders

B)A mission is only relevant for not-for-profit organizations, while a purpose is relevant only for profit-making businesses

C)A purpose is an organization’s reason for being

D)There is really no difference between a purpose and a mission

E)A purpose is only relevant for not-for-profit organizations, while a mission is relevant only for profit-making businesses

Answer: C

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

116) Which of the following best describes a mission statement?

  1. A) An objective that a business hopes and plans to achieve
  2. B) A broad set of organizational plans for implementing decisions made for achieving organizational goals
  3. C) The shared experiences, stories, beliefs, and norms that characterize an organization

D)How an organization will achieve its purpose in the environment in which it conducts business

E)none of these

Answer:  D

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

117)When Atco says it wants to provide products and services to the energy and resource industries, that is their

A)corporate strategy.

B)mission.

C)purpose.

D)intuition.

E)goal.

Answer: B

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

118)Which of the following is correct with respect to the box entitled “Setting Green Goals”?

A)Honda has set a goal to be the greenest company in the car industry

B)Rona has set a goal to deal only with suppliers who address environmental sustainability issues

C)Google has started an initiative whose goal is to develop electricity from renewable energy resources that will be cheaper than electricity that is produced by burning coal

D)Green goals can be developed by a company’s managers , or they may be imposed by outsiders

E)All of these are correct

Answer: E

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

119)Long-term goals typically relate to time periods in the range of _______ years, while intermediate goals usually cover a time period of _______ years.

A)5 years or more; 1 to 5 years

B)more than 10 years; less than a year

C)1 to 5 years; more than 10 years

D)more than 1 year but less than 3 years; 5 years or more

E)less than a year; more than 1 year but less than 3 years

Answer: A

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

120)Goals

A)identify threats and opportunities.

B)assure successes for the firm.

C)measure success or failure at every level.

D)make workers think in quantitative terms.

E)determine if the firm has an effective corporate culture.

Answer: C

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

121)The mission of a company is usually set by

A)top managers.

B)a planning committee comprised of first-line supervisors and mid-level managers.

C)the board of directors.

D)shareholders.

E)all of these work together to determine the mission.

Answer: C

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

122)Short term goals are set for

A)up to 2 years.

B)up to one year.

C)up to 6 months.

D)up to 3 months.

E)no time is normally indicated.

Answer: B

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

123)Strategic goals are

A)derived from the environmental analysis.

B)intermediate goals derived directly from a firm’s long-term goals.

C)long-term goals derived directly from a firm’s mission statement.

D)derived from the organizational analysis.

E)derived from strategic plans.

Answer: C

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

124)Magna Corp. has just completed a top-level process that involved the setting of strategic goals.  What should Magna do next?

A)Match the organization and its environment

B)Do a SWOT analysis

C)Examine the threat of escalation of commitment to the strategic goals

D)Make sure that the production department can produce the necessary products at an acceptable level of quality

E)None of these

Answer: B

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

125)Ace Products hopes to increase sales of home heating products in the upcoming year. This is an example of a(n)

A)implementation step.

B)strategy.

C)escalation of commitment.

D)goal.

E)action.

Answer:  D

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

126)A ________ is a broad set of organizational plans for implementing the decisions made for achieving organizational goals.

A)blueprint

B)mission

C)formula

D)strategy

E)function

Answer:  D

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

127)Lynne Smith, chief financial officer for Web Industries, is working on a broad set of organizational plans for implementing the decisions made for achieving organizational goals. Lynne is developing a ________ for Web Industries.

A)formula

B)blueprint

C)function

D)strategy

E)mission

Answer:  D

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

128)If a specific product sales group has a goal of increasing sales for the following year by 10 percent, the goal will function to

A)provide direction.

B)define corporate culture.

C)help make decisions.

D)help allocate resources.

E)help assess performance.

Answer:  E

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

129)Mega Computer has targeted the growth of its new line of computers to surpass the current line within two years. Charles, the marketing manager, is reviewing the advertising budget for the next year and this goal

A)provides direction.

B)defines corporate culture.

C)helps assess performance.

D)helps allocate resources.

E)helps make decisions.

Answer:  D

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

130)The management of Critters Galore, a nation-wide retailer of pet supplies, has decided that its share of the market is too low and they have a target of increasing their current market share from 25 percent to 40 percent. Everyone is expected to do whatever it takes to achieve this goal. The market is very competitive and Critters Galore will need to be very aggressive. The goal

A)helps to define corporate culture.

B)helps allocate resources.

C)provides direction.

D)helps make decisions.

E)helps assess performance.

Answer:  A

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

131)Rolex sells high-quality, high-priced watches through selected jewellery stores. This is their

A)corporate performance target.

B)long-term goal.

C)strategic goal.

D)purpose.

E)mission.

Answer:  E

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

132)Both Rolex and Timex want to sell watches at a profit. They share a common

A)purpose.

B)corporate performance target.

C)mission.

D)long-term goal.

E)strategic goal.

Answer:  A

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

133)What time periods are typically covered by long-term goals?

A)5 to 25 years into the future

B)10-15 years or more into the future

C)5 years or more into the future

D)Anything longer than three years

E)1-3 years in the future

Answer:  C

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

134)A mission statement is

A)a statement of how an organization will achieve its purpose in the environment in which it conducts its business.

B)solely for people visiting the company so they understand what the company does.

C)not necessary for smaller businesses.

D)the same as a purpose.

E)a statement developed by the board of directors to guide the business.

Answer:  A

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

135)If Kodak wants to increase its share of the 35mm film market by ten percent during the next six years it has set

A)an intermediate goal.

B)a short-term goal.

C)a long-term goal.

D)a midrange goal.

E)a strategic target.

Answer:  C

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

136)The finance department of Computers-B-Us has set a goal of increasing the company’s return on investment to 14 percent in the next three years. This goal is

A)a long-term goal.

B)a short-term goal.

C)a strategic target.

D)a midrange goal.

E)an intermediate goal.

Answer:  E

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

137)Suppose that within the next four years, McDonald’s wants to double the number of franchised restaurants in the Toronto area. This is

A)a short-term goal.

B)an intermediate goal.

C)a strategic target.

D)a long-term goal.

E)a midrange goal.

Answer:  B

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

138)Bob’s Barbecue currently has a 15 percent share of market. Bob has decided that he wants a 20 percent share of market by the end of the year. Bob has set

A)a short-term goal.

B)a long-term goal.

C)a midrange goal.

D)a strategic target.

E)an intermediate goal.

Answer:  A

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

139)The purpose of ________ strategy is to determine the businesses the firm will be in and how these businesses will relate to each other.

A)corporate

B)business

C)mission

D)functional

E)fundamental

Answer:  A

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

140)Companies adopting a ________ strategy will increase corporate activities or investment.

A)growth

B)retrenchment

C)functional

D)stability

E)business

Answer:  A

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

141)Strategy formulation is the

A)creation of a broad program for defining and meeting an organization’s goals.

B)creation of a broad program for planning and meeting an organization’s goals.

C)creation of a broad program for defining and structuring an organization’s goals.

D)creation of a small program for defining and meeting an organization’s goals.

E)creation of a small program for defining and structuring an organization’s goals.

Answer:  A

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

142)When MCI shifted from the long-distance telephone business to where it wanted to get involved in local telephone operations and new wireless digital technology, it was changing its

A)long-term goals.

B)strategy.

C)plans.

D)purpose.

E)mission.

Answer:  B

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

143)Strategic goals are set by

A)production employees.

B)middle management and first-line supervisors.

C)first-line supervisors.

D)top managers.

E)middle management.

Answer:  D

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

144)Strategic formulation involves, in order

A)(1) creating a mission statement, (2) analyzing the organization and its environment, and (3) setting strategic goals.

B)(1) creating a mission statement, (2) setting strategic goals, and (3) analyzing the organization and its environment.

C)(1) setting strategic goals, (2) analyzing the organization and its environment, and (3) matching the organization and its environment.

D)(1) setting strategic goals, (2) analyzing the organization and its environment, and (3) creating a mission statement.

E)(1) analyzing the organization and its environment, (2) matching the organization and its environment, and (3) setting strategic goals.

Answer:  C

Diff: 3

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

145)Strategic goals are

A)derived directly from the mission statement.

B)derived directly from tactical plans.

C)derived directly from operational plans.

D)the product of input from all customers.

E)the product of input from all employees.

Answer:  A

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

146)The term SWOT analysis stands for the identification of _______, _________, ___________, and ___________.

A)strengths, weaknesses, organization, and technology

B)standardization, weaknesses, organization, and threats

C)strategy, work-sharing, optimism, and technology

D)structure, wi-fi, opportunities, and technology

E)strengths, weaknesses, opportunities, and threats

Answer:  E

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

147)”Increasing sales by 4 percent in the next eight months” is an example of a(n)

A)strategy.

B)tactic.

C)long-term goal.

D)short-term goal.

E)intermediate goal.

Answer:  D

Diff: 3

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

148)Which of the following outlines how an organization intends to meet its mission statement goals and includes the firm’s responsiveness to new challenges and needs?

A)Goal setting

B)Controlling

C)Strategy

D)Tactics

E)Research and development

Answer:  C

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

149)Which of the following is not one of the basic steps of strategy formulation?

A)Matching the organization and its environment

B)Analyzing the environment

C)Setting strategic goals

D)Determining what advertising media to use

E)Analyzing the organization and its environment

Answer:  D

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

150)Long-term goals derived directly from a firm’s mission statement are called

A)strategic plans.

B)tactical plans.

C)environmental goals.

D)organizational goals.

E)strategic goals.

Answer:  E

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

151)Scanning the environment for threats and opportunities is referred to as

A)organizational analysis.

B)devising strategy.

C)tactical planning.

D)environmental analysis.

E)developing implementation tactics.

Answer:  D

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

152)________ are areas in which a firm can potentially expand, grow, or take advantage of existing strengths.

A)Strategies

B)Tactics

C)Opportunities

D)Threats

E)Internal factors

Answer:  C

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

153)Which of the following would be most likely to be classified as an opportunity for an organization?

A)Government regulations

B)Changing consumer tastes

C)Strong reputation with consumers

D)Recall of a competitor’s product

E)Competition

Answer:  D

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

154)What are the three steps involved in formulating strategy for the organization?

A)Prepare a strong growth strategy, prepare a marketing plan, and prepare standard operating procedures

B)Prepare an organizational plan, set the strategic goal and implement the strategy

C)Set the strategic goals, conduct an environmental analysis, and prepare standard operating procedures

D)Prepare an organizational plan, prepare a financial plan, and match these two plans

E)Set the strategic goals, conduct an environmental and organizational analysis, and match the two analyses

Answer:  E

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

155)Setting strategic goals is the first step in strategy formulation. What is the next step?

A)Analyzing the company and its environment

B)Segmenting the markets the company wants to penetrate

C)Preparing an organizational plan

D)Matching company strengths with environmental characteristics

E)Developing a mission statement

Answer:  A

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

156)The analysis of a firm’s strengths and weaknesses is known as

A)SBU analysis.

B)barrier analysis.

C)organizational analysis.

D)environmental analysis.

E)contingency analysis.

Answer:  C

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

157)Changing consumer tastes, hostile takeover offers, and new competitors would be classified as

A)strengths.

B)natural responses.

C)threats.

D)opportunities.

E)weaknesses.

Answer:  C

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

158)Which of the following would typically be considered a threat?

A)New products from competitors

B)A small share of the market

C)Less government regulation

D)New markets

E)Slow-paying customers

Answer:  A

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

159)Which of the following would typically be considered an opportunity?

A)An improving economy

B)Quick-paying customers

C)High unemployment

D)Decreased demand from foreign countries

E)A large base of satisfied customers

Answer:  A

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

160)Which of the following would usually be considered a corporate weakness?

A)An economy that was turning down

B)Increased government regulation

C)A large base of satisfied customers

D)A strong competitor

E)A small bank account

Answer:  E

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

161)All of the following would usually be considered corporate strengths except

A)a strong economy.

B)a dedicated work force.

C)technical expertise in the employees.

D)good managerial talent.

E)surplus cash.

Answer:  A

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

162)Extensive marketing channels, a large base of satisfied customers, and a good reputation are all examples of a company’s

A)strategies.

B)weaknesses.

C)strengths.

D)opportunities.

E)threats.

Answer:  C

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

163)Poor employee morale, ineffective advertising, and products that are not using current technology are examples of a company’s

A)strengths.

B)threats.

C)weaknesses.

D)strategies.

E)opportunities.

Answer:  C

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

164)A new patent owned by the organization but not yet in commercial use best illustrates

A)horizontal integration.

B)functional level strategy.

C)a strength identified during the organizational analysis.

D)a generic strategy option.

E)a weakness because the patent has not been placed in commercial use.

Answer:  C

Diff: 3

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

165)Which of the following is not one of the determinants of organizational analysis?

A)New government regulations

B)Technical expertise

C)Surplus cash

D)Organizational profit

E)Dedicated workforce

Answer:  A

Diff: 3

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

166)XYZ Cake Mix Company is merging with the ABC Petroleum Company. This is an example of

A)unrelated diversification.

B)related diversification.

C)product development.

D)geographic expansion.

E)none of these.

Answer:  A

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

167)American Express is formulating a ________ strategy when it makes decisions about how best to compete.

A)business

B)functional

C)retrenchment

D)growth

E)stability

Answer:  A

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

168)________ strategy takes place at the level of the business unit or product line, and focuses on a firm’s competitive position.

A)Business

B)Fundamental

C)Corporate

D)Mission

E)Functional

Answer:  A

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

169)________ strategy focuses on how specific areas can achieve corporate goals.

A)Corporate

B)Mission

C)Functional

D)Fundamental

E)Business

Answer:  C

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

170)Each business unit in an organization will develop a ________ strategy that focuses on how it will achieve corporate goals.

A)corporate

B)business

C)fundamental

D)functional

E)mission

Answer:  D

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

171)When Bell Canada diversified by forming BCE, it acquired interests in businesses like trust companies, pipelines, and real estate. This is an example of

A)vertical integration.

B)cooperative diversification.

C)concentric diversification.

D)cost leadership.

E)conglomerate diversification.

Answer:  E

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

172)What does “retrenchment” mean when discussing business strategy?

A)A change in the mission for the organization

B)Ceasing to do business

C)Cutting back some operations

D)An increase in the market share for two or more products

E)Growth at a modest rate

Answer:  C

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

173)When an organization strives to provide goods or services that are distinctive from those of its competitors, it is pursuing the strategic option known as

A)focus.

B)market development.

C)cost leadership.

D)market penetration.

E)differentiation.

Answer:  E

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

174)An example of a business that must follow a differentiation strategy is

A)a fashion designer.

B)a resource-industry business.

C)an aluminum siding installer.

D)a discount retailer.

E)a local trucking company.

Answer:  A

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

175)In a SWOT analysis, strengths and weaknesses are factors that are ________ to the firm, while opportunities and threats are factors that are _________ to the firm.

A)irrelevant; relevant

B)relevant; irrelevant

C)internal; external

D)external; internal

E)central; peripheral

Answer: C

Diff: 3

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

176)An organizational analysis involves looking for ________, while an environmental analysis involves looking for ___________:

A)threats; opportunities

B)opportunities; threats

C)strengths and weaknesses; threats and opportunities

D)threats and opportunities; strengths and weaknesses

E)strengths and weaknesses; competitors

Answer: C

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

177)Which of the following would usually be considered a weakness in a SWOT analysis?

A)A small bank account

B)A large base of satisfied customers

C)A strong competitor

D)Increased government regulation

E)An economy that was turning down

Answer: A

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

178)Which of the following would usually be considered a strength in a SWOT analysis?

A)Good managerial talent

B)A dedicated work force

C)Employees with good technical expertise

D)Surplus cash

E)All of these

Answer: E

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

179)The final step in strategy formulation is to

A)develop tactical plans.

B)develop operational plans.

C)conduct an environmental analysis.

D)match the organization and its environment.

E)conduct an organizational analysis.

Answer: D

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

180)Collier Corp. has grown by boosting sales of present products by more aggressive selling in the firm’s current markets.  This is an example of

A)concentration.

B)market penetration.

C)geographic expansion.

D)product development.

E)horizontal integration.

Answer: B

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

181)Brown Corp. has implemented a strategy of acquiring control of competitors in the same or similar markets.  The company is using which strategy?

A)Concentration

B)Market penetration

C)Geographic expansion

D)Product development

E)Horizontal integration

Answer: E

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

182)When Maple Leaf Gardens, which already owned the Toronto Maple Leafs, also acquired the Toronto Raptors basketball team, this was an example of

A)concentration.

B)related diversification.

C)conglomerate diversification.

D)product development.

E)horizontal integration.

Answer: B

Diff: 3

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

183)When Hudson’s Bay Company purchased Kmart and Zellers, this was an example of

A)concentration.

B)related diversification.

C)conglomerate diversification.

D)product development.

E)horizontal integration.

Answer: E

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

184)Top managers are to middle and lower-level managers as

A)a strategic plan is to an operational plan.

B)vertical integration is to horizontal integration.

C)a computer is to a server.

D)market penetration is to product development.

E)cost leadership is to differentiation.

Answer: A

Diff: 3

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

185)Montreal-based Gildan Activewear is pursuing what kind of business-level strategy?

A)Investment reduction

B)Cost leadership

C)Differentiation

D)Focus

E)Horizontal integration

Answer: B

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

186)Contingency planning involves

A)identifying aspects of a business that require changes in organization in three to five years time.

B)developing plans for a business should there be a sudden decrease in revenue or increase in expenses.

C)an organization’s methods for dealing with emergencies.

D)developing plans for future growth.

E)identifying aspects of a business or its environment that might entail changes in strategy.

Answer:  E

Diff: 3

Skill: Recall

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

187)Crisis management involves

A)identifying aspects of a business that require changes in organization in three to five years time.

B)identifying aspects of a business or its environment that might entail changes in strategy.

C)ensuring that all the employees know what to do in an emergency.

D)knowing how to contain a crisis, should one happen.

E)an organization’s methods for dealing with emergencies.

Answer:  E

Diff: 2

Skill: Recall

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

188)If a firm establishes a back up plan they are engaging in ________.

A)contingency planning

B)crisis management

C)investment reduction

D)differentiation

E)none of these

Answer: A

Diff: 2

Skill: Recall

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

189)If a firm is building a hotel and plans for two grand opening dates, they are most likely engaged in

A)contingency planning.

B)crisis management.

C)investment reduction.

D)differentiation.

E)none of these.

Answer: A

Diff: 2

Skill: Application

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

190)If a hotel burns down a day before its grand opening, the managers are most likely to be engaged in

A)crisis management.

B)contingency planning.

C)investment reduction.

D)retrenchment.

E)divestiture.

Answer: A

Diff: 2

Skill: Application

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

191)When Disney allowed for an extra two weeks between when a new cruise ship was supposed to be finished and its first scheduled cruise, they were engaged in ________, while they would have been engaged in ________ if the ship suddenly sank as it was launched.

A)crisis management; contingency planning

B)contingency planning; public relations

C)contingency planning; crisis management

D)crisis management; crisis management

E)none of these

Answer: C

Diff: 3

Skill: Application

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

192)The listeria problem encountered at Maple Leaf Foods was an example of the need for _______ management.

A)contingency

B)crisis

C)concentration

D)integration

E)none of these were required

Answer:  B

Skill: Application

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

193)What is corporate culture?

A)The shared experiences, stories, and beliefs that characterize a firm

B)The ethnic background of most of the managers in an organization

C)The extent to which the organization is accommodating to those of different races and creeds

D)The ethnic background of most of the employees in an organization

E)The shared experiences, stories, and beliefs of the management of a firm

Answer:  A

Diff: 1

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

194)What characteristic is evident at the Toyota Canada plant?

A)Absenteeism and tardiness have been chronic problems

B)Customer satisfaction is not emphasized as part of the corporate culture

C)Every process in the plant is carried out by a different department

D)The culture is one of continuous improvement

E)Emphasis is on individual achievement which motivates workers to outperform each other

Answer:  D

Diff: 2

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

195)Which of the following factors most strongly shapes corporate culture?

A)The values held by the board of directors

B)The values of the founders of the company

C)Strong behavioural norms

D)The profitability of the company

E)It is not possible to say for sure

Answer:  E

Diff: 2

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

196)Which of the following is correct with regard to the issue of changing corporate culture?

A)Ontario Hydro’s culture has moved away from a “risk-taking” culture and toward an “engineering” culture

B)Cultural change usually goes through three stages ,with the first stage being characterized by conflict and resistance to change

C)The three-stage change process is always completed, but sometimes people are very unhappy with the outcome

D)Nortel’s bankruptcy is proof that it failed in its attempts to change its corporate culture

E)All of these are correct

Answer:  B

Diff: 2

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

197)The shared experiences, stories, beliefs, and norms that characterize an organization are known as

A)the corporate culture.

B)the informal organization.

C)contingency planning.

D)human relations.

E)none of these are correct.

Answer: A

Diff: 1

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

198)Which of the following is not an important element in establishing a unique corporate culture?

A)History of the organization

B)Employees’ stories of shared work experiences

C)A policy of paying higher than average wages

D)Personal values of the top level managers

E)All of these

Answer: C

Diff: 2

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

199)To effectively use the corporate culture, managers need all the following except

A)a clear understanding of the culture.

B)to reward and promote those who support the culture.

C)to be tied into the informal networks.

D)a clear and meaningful mission statement.

E)to transmit the culture to others in the firm.

Answer: C

Diff: 1

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

200)In the 2008 survey of 340 business executives, what sentiments were expressed?

A)Over 80 percent of the respondents said that a strong culture had an impact on performance

B)Three-year average growth for the top 10 firms on the list was 20 percent higher than that of the 60 largest public companies in Canada

C)Over 90 percent of the respondents said that a strong culture reduced turnover

D)Over 80 percent of the respondents said that a strong culture gave employees a sense of belonging

E)All of these sentiments were expressed

Answer: A

Diff: 3

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

 

TRUE/FALSE QUESTIONS.  Write ‘T’ if the statement is true and ‘F’ if the statement is false.

 

201)The skills that managers bring to small organizations are the same skills needed in large organizations.

Answer: True

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: Who Are Managers?

 

202)A manager is likely to be engaged in planning, organizing, leading, and controlling during the course of any given day.

Answer:  True

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

203)The management process consists of four primary activities: planning, organizing, leading, and paying workers.

Answer:  False

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

204)Because the planning, organizing, leading, and controlling aspects of management are independent of each other, a given manager usually performs only one of the four.

Answer:  False

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

205)The first step in planning is to establish a means of monitoring sales volume.

Answer:  False

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

206)Organizing is that portion of a manager’s job concerned with mobilizing the necessary resources to complete a particular task.

Answer:  True

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

207)An essential element in controlling is monitoring the firm’s performance to ensure that it stays on track towards its goals.

Answer:  True

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

208)A study by Pace Productivity revealed that managers felt they should have spent about half their time on activities such as managing staff, but they actually spent much less time than that.

Answer: True

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

209)Because of different levels and different areas of responsibility, every manager is not expected to perform each of the four management processes, i.e., planning, organizing, leading, and controlling.

Answer: False

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

210)The first step in the planning process is to identify whether a gap exists between a company’s desired and actual position.

Answer: False

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

211)Strategic goals reflect decisions about resource allocations, company priorities, and the steps needed to meet strategic goals.

Answer: True

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

212)Strategic plans usually relate to the lower levels of management and are short term in nature.

Answer: False

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

213)Tactical plans originate from strategic plans and are directed toward attaining a stated strategic goal.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

214)A major difference among strategic plans, tactical plans, and operational plans is the time frame.

Answer: True

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

215)Determining the best way to arrange a business’ resources and activities into a coherent structure is called organizing.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

216)A hierarchy of plans is based upon priorities among competing plans being established and clearly communicated to everyone in the corporation.

Answer: False

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

217)Leading is the management process to guide and motivate employees to meet the firm’s objectives.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

218)The control process starts with establishing standards, then measuring performance, and then analyzing the differences to see if the standards or performance need to be changed.

Answer: True

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

219)The control process starts with the measurement of performance.

Answer: False

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

220)An essential element in controlling is the establishment of standards or goals the company wants to meet.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

221)Common titles for top managers include president, vice president, treasurer, chief executive officer, and chief financial officer.

Answer:  True

Diff: 2

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

222)A common title that is found in top level management is “supervisor.”

Answer:  False

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

223)The authority and responsibility of managers is greatest for first-line supervisors.

Answer:  False

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

224)Operations managers are responsible for the firm’s financial operations, including its investments and accounting functions.

Answer:  False

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

225)Usually there are fewer top managers than middle managers and fewer middle managers than first-line managers.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

226)Marketing managers’ responsibilities are confined to pricing and promotion decisions for a firm’s products.

Answer: False

Diff: 2

Skill: Application

Objective: 6.2

A-Heading: Types of Managers

 

227)Operations managers are typically responsible for production, inventory, and quality control.

Answer: True

Diff: 2

Skill: Application

Objective: 6.2

A-Heading: Types of Managers

 

228)Information managers are responsible for the firm’s financial operations, including its investments and accounting functions.

Answer: False

Diff: 1

Skill: Recognition

Objective: 6.2

A-Heading: Types of Managers

 

229)Sound operations management practices have become increasingly important to service organizations.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

230)All managers need an equal balance of technical, human, and conceptual skills.

Answer:  False

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

231)The most important basic skills for a supervisor to have are technical and conceptual.

Answer:  False

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

232)Top managers depend on conceptual skills the most, while first-line supervisors depend on these skills the least.

Answer:  True

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

233)To manage time more effectively, managers must address the leading causes of wasted time: the telephone, e-mail, meetings and the Internet.

Answer:  False

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

234)Human relations skills are those associated with performing specialized tasks within the organization.

Answer: False

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

235)Human relations skills are needed at all levels of management.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

236)The ability to think in the abstract, to diagnose and analyze different situations, and to see beyond the present is a basic managerial skill.

Answer: True

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

237)The basic management skill needed by top managers is conceptual skills.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

238) The first step in basic decision-making is to look for a problem.

Answer: False

Diff: 1

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

239)The first step in rational decision making is identifying various alternatives that might solve the problem that is facing you.

Answer: False

Diff: 1

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

240)The growth of international air travel motivated Boeing and Airbus to see an opportunity to increase the capacity of their planes.  This is an example of the first step in the rational decision making process: recognizing and defining the decision situation.

Answer: True

Diff: 1

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

241)Employees generally are enthusiastic about change because they assume that they will benefit from the change.

Answer: False

Diff: 1

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

242)Organizational politics refers to the support by business firms of political candidates that agree with the firm’s position on a variety of economic issues.

Answer: False

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

243)When managers make a decision because it “feels right,” they are using intuition, which generally results in better decisions than a rational process.

Answer: False

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

244)Expo ’86 is a good example of the problems that can develop because of escalation of commitment.

Answer: True

Diff: 1

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

245)Managers with a high risk propensity are more likely than their conservative counterparts to achieve big successes with their decisions, but they are also more likely to incur greater losses.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

246)The major causes of wasted time for managers are paperwork, the phone, and meetings.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

247)Escalation of commitment means investing more money in a project, but only after it is clear that the project is worthwhile.

Answer: False

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

248)The primary purpose of setting goals is to determine which business market to enter.

Answer:  False

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

249)Not every business needs specific goals.

Answer: False

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

250)The mission statement is the documentation of a corporation’s reason for being.

Answer: False

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

251)Two companies may have the same purpose but very different mission statements.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

252)The three major kinds of goals that a firm sets are long-term, intermediate, and short-term.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

253)The primary purpose of setting goals is to determine which business market to enter.

Answer: False

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

254)Goal setting helps firms allocate resources.

Answer:  True

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

255)Short-term goals usually cover a range of one to five years.

Answer:  False

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

256)The first step in strategic formulation is the setting of strategic goals.

Answer:  True

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

257)Strategic goals are derived directly from the firm’s mission statement.

Answer:  True

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

258)Environmental analysis is the process of analyzing a firm’s strengths and weaknesses.

Answer:  False

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

259)Strategic plans usually relate to the lower levels of management and are short term in nature.

Answer:  False

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

260)Tactical plans originate from strategic plans and are directed towards attaining a stated strategic goal.

Answer:  True

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

261)A market penetration strategy involves boosting sales of present products by more aggressive selling in the firm’s current markets.

Answer:  True

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

262)Vertical integration means acquiring control of competitors in the same or similar markets with the same or similar products.

Answer:  False

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

263)CN’s diversification into trucking is an example of related diversification.

Answer:  True

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

264)Volvo’s strategy of stressing safety is known as a differentiation strategy.

Answer:  True

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

265)A functional strategy is the basic course of action that each department follows so that the business accomplishes its overall goals.

Answer:  True

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

266)In a SWOT analysis, strengths, weaknesses, opportunities, and threats are factors external to the firm.

Answer: False

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

267)An environmental analysis involves scanning the business environment for strengths and weaknesses.

Answer: False

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

268)The final step in the strategic formulation process is to match the environmental analysis with the organization analysis in an attempt to identify specific strategies.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

269)The first step in strategic formulation is the setting of strategic goals.

Answer: True

Diff: 1

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

270)A corporate-level strategy is developed to identify the various businesses that a company will be in.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

271)When Hudson’s Bay Company purchased Kmart and Zellers, this was an example of vertical integration.

Answer: False

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

272)When Maple Leaf Gardens Ltd. acquired the Toronto Raptors, this was an example of related diversification because Maple Leaf already owned the Toronto Maple Leafs.

Answer: True

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

273)Gildan Activewear is pursuing a cost leadership business-level strategy.

Answer: True

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

274)Contingency planning is an organization’s method for dealing with emergencies.

Answer:  False

Diff: 1

Skill: Application

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

275)Contingency planning and crisis management are different only in terms of the intensity of the problem the company faces.

Answer: False

Diff: 2

Skill: Application

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

276)When the Disney Wonder cruise ship was being planned, the company allowed for an extra two weeks between when the ship was supposed to be ready for sailing and its first scheduled cruise.  This is an example of crisis management.

Answer: False

Diff: 2

Skill: Application

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

277)When Maple Leaf Foods had to deal with the problem of listeria contamination at one of its plants, this was an example of contingency planning.

Answer: False

Diff: 2

Skill: Application

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

278)In 2010, when Toyota had to deal with the problem of consumers reporting that some of its cars were accelerating out of control, this was an example of crisis management.

Answer: True

Diff: 2

Skill: Application

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

279)The BP oil spill in the Gulf of Mexico in 2010 was an example of crisis management.

Answer: True

Diff: 2

Skill: Application

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

280)The shared experiences, stories, beliefs, and norms that characterize an organization are referred to as organizational structure.

Answer:  False

Diff: 1

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

281)Corporate culture reflects the “personality” of the organization.

Answer:  True

Diff: 2

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

282)Corporate culture influences management philosophy, style, and behavior.

Answer:  True

Diff: 2

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

283)Just as every individual has a unique personality, every company has a unique corporate culture.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

284)Corporate culture refers to the shared experiences, stories, beliefs, and norms that characterize an organization.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

285)A survey conducted by Waterstone Human Capital found that over 75 percent of the respondents felt that corporate culture has a strong or very strong impact on corporate performance.

Answer: True

Diff: 1

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

 

SHORT ANSWER QUESTIONS.  Write the word or phrase that best completes each statement or answers the question.

 

286)What are the four management functions that all managers must perform?

Answer:  Planning, organizing, leading, and controlling.

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

287)What are the three levels of plans?

Answer:  Strategic, tactical, and operational.

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

288) Define the term management.

Answer:  Management is the process of planning, organizing, leading, and controlling an organization’s financial, physical, human, and information resources to achieve its goals.

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

289)List the three basic levels of management.

Answer:  Top management, middle management, and first-line management.

Diff: 2

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

290) Explain the three types of managers and what skills are necessary for their job.

Answer:  ∙ top, middle, first-line with different focuses on technical, human relations, conceptual, decision-making, and time-management skills

Diff: 2

Skill: Recall

Objective: 6.2

A-Heading: Types Of Managers

 

291) At which level of management are technical skills most important?

Answer:  First-line management.

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

292) At which level of management are human relation skills most important?

Answer:  Middle management.

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

293) At which level of management are conceptual skills most important?

Answer:  Top management.

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

294) Why are human relations skills important to managers?

Answer:  A manager with poor human relations skills may have trouble getting along with subordinates, cause valuable employees to quit or transfer, and contribute to poor morale.

Diff: 2

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

295) Why are conceptual skills most important for top managers within organizations?

Answer:  Conceptual skills allow top managers to see the “big picture,” to consider where the organization is now and where the organization should be headed into the future. Conceptual skills are utilized by all managers at all levels in organizations, but top managers utilize them more critically in determining the long-term direction of the firm.

Diff: 2

Skill: Application

Objective: 6.3

A-Heading: Basic Management Skills

 

296) Identify the four leading causes of wasted time in the workplace.

Answer:  To manage time effectively, managers must address four leading causes of wasted time: paperwork, telephone, meetings, and e-mail.

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

297)What are the steps in the rational decision making process?

Answer: Recognizing and defining the decision situation, identifying alternatives, evaluating alternatives, selecting the best alternative, implementing the chosen alternative, and following up and evaluating the results.

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

298)What is organizational politics?

Answer: The actions that people take as they try to get what they want.

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

299)What is intuition?

Answer: Basing decisions on years of experience and practice in making decisions in similar situations.

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

300)What is escalation of commitment?

Answer: Remaining committed to a decision in spite of the fact that there is evidence that the decision was not a good one.

Diff: 1

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

301)List the five basic management skills.

Answer:  Technical, human relations, conceptual, decision making, and time management.

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

302)List the three types of strategy.

Answer:  Corporate, business, and functional.

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

303) What is the difference between a goal and a strategy?

Answer:  A goal is an objective that a business hopes and plans to achieve. A strategy is a broad set of organizational plans for implementing the decisions made for achieving organizational goals.

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

304)What is a mission statement?

Answer:  A mission statement is an organization’s statement of how it will achieve its purpose in the environment in which it conducts business.

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

305)What is environmental analysis?

Answer:  Environmental analysis is the process of scanning the business environment for threats and opportunities.

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

306)What is organizational analysis?

Answer:  Organizational analysis is the process of analyzing a firm’s strengths and weaknesses.

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

307)What is contingency planning?

Answer:  Contingency planning is planning for change – identifying the aspects of business or its environment that might entail changes in strategy.

Diff: 2

Skill: Recall

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

308)What is crisis management?

Answer:  Crisis management involves an organization’s methods for dealing with emergencies.

Diff: 2

Skill: Recall

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

309)Define the term corporate culture.

Answer:  Corporate culture is the unique identity of each company or organization, the shared experiences, stories, beliefs, and norms that characterize an organization.

Diff: 2

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

 

ESSAY QUESTIONS.  Write your answer in the space provided or on a separate sheet of paper.

 

310)What is management?

Answer:  ∙ management is the process of planning, organizing, leading and controlling an enterprise’s financial, physical, human, and information resources in order to achieve the organization’s goals of supplying various products and services

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

311)Is management universal? Explain.

Answer:  Yes, management is universal because the activities of planning, organizing, leading and controlling are required in all organizations.

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

312)List and describe the four management functions.

Answer:  The four management functions are planning, organizing, leading, and controlling. Planning is the process of determining what an organization needs to do and how best to get it done. Organizing is the process of determining how best to arrange an organization’s resources and activities into a coherent structure. Leading is the management process of guiding and motivating employees to meet the organization’s objectives. Finally, controlling is the process of monitoring an organization’s performance to ensure that it is meeting its goals.

Diff: 3

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

313)Why is planning important?

Answer:  ∙planning is important since it is the portion of a manager’s job concerned with determining what the business needs to do and the best way to achieve it

∙planning involves three main components:

∙managers determine the firm’s goals

∙develop a comprehensive strategy for achieving those goals

∙after a strategy is developed, design tactical and operational plans for implementing the strategy

Diff: 2

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

314)Briefly describe the general planning process. Indicate the kinds of things that can go wrong at each step in the process.

Answer: The planning process involves the following steps: (1)goals are established for the organization, (2) managers identify whether a gap exists between the company’s desired and actual position, (3) managers develop plans to achieve the desired objectives, (4) the plans that have been decided upon are implemented, and (5) the effectiveness of the plan is assessed.  The hierarchy of plans can be viewed on three general levels:  strategic, tactical, and operational. A plan is only practical when there is a logical flow from one level to the next so if the planning process is not started properly at the top by the board of directors and top management right down to the lower-level managers who focus on weekly or monthly performance, then the process will not be implemented smoothly

Diff: 3

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

315)Explain how plans differ at the strategic, tactical, and operational levels.

Answer:  ∙Plans can be found at three different levels:

strategic plans: plans that reflect decisions about resource allocations, company priorities and steps needed to meet strategic goals which are usually set by the board of directors and top management

tactical plans: short-range plans concerned with implementing specific aspects of a company’s strategic plans involving upper and middle management

operational plans: for daily, weekly or monthly performance developed by middle and lower managers

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

316)Define the three types of goals, indicating the approximate time frame for each.

Answer: 1) long-term; over 5 years

2) intermediate; 1-5 years

3) short-term; less than 1 year

Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

317)What are the purposes of goal setting?

Answer: Goal setting provides direction, guidance and motivation, helps allocate resources, defines the corporate culture, and help managers assess performance. Diff: 1

Skill: Recall

Objective: 6.1

A-Heading: The Management Process

 

318)Are the functions of management just as applicable in not-for-profit organizations as they are for profit-seeking corporations?

Answer: Regardless of the organization’s objectives, managers need to plan, organize, direct, and control to be sure that organizational objectives are met.

Diff: 2

Skill: Application

Objective: 6.1

A-Heading: The Management Process

 

319)Explain the three types of managers and what skills are necessary for their job.

Answer:  ∙top, middle, first-line with different focuses on technical, human relations, conceptual, decision-making, and time-management skills

Diff: 2

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

320)The textbook describes five different key functional areas which managers work in. Identify and briefly describe each of the five.

Answer: 1) human resources, 2) operations, 3) marketing, 4) information, and

5) finance.

Diff: 1

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

321) Identify the different levels and types of managers found in organizations.

Answer:  There are three levels of management. The few executives who are responsible for the overall performance of large companies are top managers. Just below top managers are middle managers, including plant, operations, and division managers, who implement strategies, policies, and decisions made by top managers. Supervisors and office managers are the first-line managers who work with and supervise the employees who report to them. In any large company, most managers work in one of five areas. Human resource managers hire and train employees, assess performance, and fix compensation. Operations managers are responsible for production, inventory, and quality control. Marketing managers are responsible for getting products from producers to consumers. Information managers design and implement systems to gather, organize, and distribute information. Some firms have a top manager called a chief executive office. Financial managers, including the chief financial officer, division controllers, and accounting supervisors, oversee accounting functions and financial resources.

Diff: 2

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

322) List the three basic levels of management and explain how both the power and complexity of their duties increases as they move up the ladder.

Answer:  First-line managers supervise the work of employees; middle managers implement the strategies and work toward the goals set by top managers; top managers are responsible for a firm’s overall performance and effectiveness. Most firms have more first-line managers than middle managers and more middle managers than top managers.

Diff: 2

Skill: Recall

Objective: 6.2

A-Heading: Types of Managers

 

323)What is the difference in the need for technical skills at first-line management levels and the need at top management levels, and what accounts for any difference?

Answer: First-line spends more time with work-related problems which are technically oriented and thus needs higher levels of technical skills

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

324)What is the difference in the need for conceptual skills at first-line management levels and the need at top management levels, and what accounts for any difference?

Answer: Top-level managers deal with abstract strategies, the future, and interrelationships among different factors which require a higher level of conceptual skills.

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

325) Explain the term “time management skills” and discuss the four leading causes of wasted time. Provide solutions to these problems and also include an example of a time where you had to use such skills.

Answer:  ∙ time management skills: skills associated with the productive use of time

∙ four causes of wasted time are paperwork, the telephone, meetings and e-mail

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

326)What are the basic steps in decision making?

Answer:  ∙Recognizing and defining the decision situation, identifying alternatives, evaluating alternatives, selecting the best alternative, implementing the chosen alternative, following up and evaluating the results.

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

327)What is escalation of commitment, and how can managers avoid it?

Answer: Escalation of commitment refers to the situation where a manager remains committed to a decision in spite of much evidence that the decision was not a good one. Managers can avoid escalation of commitment by setting specific goals ahead of time that deal with how much time and money they are willing to spend on a given project. These goals will make it more difficult for a manager to interpret unfavourable news in a favourable light.

Diff: 2

Skill: Recall

Objective: 6.3

A-Heading: Basic Management Skills

 

328)What are the characteristics of a good goal?

Answer:  Good goals are SMART, that is, they are Specific, Measurable, Achievable, Relevant, and Time-framed. Goal setting provides direction, guidance and motivation for all, helps allocate resources, define the corporate culture and help managers assess performance.

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Settings Goals and Formulating Strategy

 

329)Describe the three steps in strategy formulation.

Answer:  Three steps in strategy formulation are:

setting strategic goals: long-term goals derived directly from a firm’s mission statement

analyzing the organization and its environment: process of scanning the environment for threats and opportunities

matching the organization and its environment: process of analyzing a firm’s strengths and weaknesses

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Settings Goals and Formulating Strategy

 

330) Discuss the four main purposes of organizational goal setting.

Answer:  Goal setting provides direction and guidance for managers at all levels, helps firms allocate resources, helps to define corporate culture, and helps managers assess performance.

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Settings Goals and Formulating Strategy

 

331) Discuss the three broad levels of strategy that organizations may implement.

Answer:  Organizations may develop corporate, business, and functional strategies. The purpose of corporate strategy is to determine the firm’s overall attitude toward growth and the way it will manage its businesses or product lines. Business strategy, which takes place at the level of the business or product line, focuses on improving the company’s competitive position. At the level of functional strategy, managers in specific areas decide how best to achieve corporate goals through productivity.

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Settings Goals and Formulating Strategy

 

332) Explain the importance of strategic management and effective goal setting in organizational success.

Answer:  Strategic management is the process that is required to ensure that an organization maintains an effective alignment with its environment. The starting point in effective strategic management is setting goals (objectives that a business hopes and plans to achieve). In most companies, decisions are guided by a strategy, or a broad set of organizational plans for implementing the decisions made for achieving organizational goals.

Diff: 2

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

333)Describe five of the different corporate-level strategies that a company might pursue.

Answer:  ∙Concentration

concentration strategy: involves focusing the company on one product or product line

∙Growth

market penetration: boosting sales of present products by more aggressively selling in the firm’s current markets

geographic expansion

product development

∙Integration

horizontal integration

vertical integration

∙Diversification

related diversification: adding new, but related, products or services to an existing business

conglomerate diversification: diversifying into products or markets that are not related to the firm’s present businesses

∙Investment Reduction

investment reduction: reducing the company’s investment in one or more of its lines of business

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Settings Goals and Formulating Strategy

 

334)Identify and describe the three competitive strategies identified by Michael Porter.

Answer:  ∙cost leadership: becoming the low cost leader in an industry

differentiation: a firm seeks to be unique in its industry along some dimension that is valued by buyers

focus: selecting a market segment and serving the customers in that market niche better than competitors

Diff: 2

Skill: Application

Objective: 6.4

A-Heading: Strategic Management: Settings Goals and Formulating Strategy

 

335)Describe the three steps in strategy formulation.

Answer: 1) setting strategic goals-long-term goals derived directly from a firm’s mission statement

2) analyzing the organization and its environment- process of scanning  the environment for threats and opportunities

3) matching the  organization and its environment- process of analyzing a firm’s   strengths and weaknesses

Diff: 1

Skill: Recall

Objective: 6.4

A-Heading: Strategic Management: Setting Goals and Formulating Strategy

 

336)What is the difference between contingency planning and crisis management?

Answer:  ∙contingency planning: identifying aspects of a business or its environment that might entail changes in strategy

crisis management: an organization’s methods for dealing with emergencies

Diff: 2

Skill: Recall

Objective: 6.5

A-Heading: Contingency Planning and Crisis Management

 

337)What are the purposes of having a strong corporate culture?

Answer:  A strong corporate culture serves several purposes. First, it directs employees’ efforts and helps everyone work toward the same goals. Second, it helps newcomers identify accepted behaviors. Finally, it gives each organization its own identity, much like personalities giving identity to people.

Diff: 3

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

338)Where does an organization’s culture come from?

Answer:  In some cases, organizational culture is a reflection of the founder of the organization. In other cases, organizational culture is forged over a long period of time by a constant and focused business strategy.

Diff: 3

Skill: Recall

Objective: 6.6

A-Heading: Management and the Corporate Culture

 

CHAPTER 7

ORGANIZING THE BUSINESS ENTERPRISE

 

MULTIPLE CHOICE QUESTIONS.  Choose the one alternative that best completes the statement or answers the question.

 

1)Which of the following is correct with regard to the opening case entitled “Reorganizing the Irving Empire”?

A)The company’s main business has historically been food, but it is now shifting into oil

B)The company’s main focus of operations is the west coast

C)The members of the Irving family have avoided a public fight over the direction of the company

D)The company has been experiencing increasing financial difficulties in recent years and will likely have to declare bankruptcy

E)All of these are correct

Answer:  C

Diff: 2

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

2)Organizational structure refers to

A)developing an organizational chart.

B)determining which employees report to whom.

C)the specification of the jobs to be done within a business and how those jobs relate to one another.

D)determining how best to use available material resources.

E)structuring the necessary resources to complete a particular task.

Answer:  C

Diff: 2

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

3)Which term is defined as the specification of the jobs to be done and the ways in which those jobs relate to one another?

A)Organizational determinants

B)Organizational structure

C)Span of control

D)Chain of command

E)Organizational strategy

Answer:  B

Diff: 2

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

4)Roger is analyzing the jobs to be done in his company, their specific overall purpose, and how the jobs relate to each other. Roger is analyzing the company’s

A)job descriptions.

B)organizational chart.

C)organizational structure.

D)departmentalization.

E)chain of command.

Answer:  C

Diff: 1

Skill: Application

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

5)Organizational structure is

A)the relationship between the chain of command in a decentralized organization.

B)the specification of the way in which the organization manages the projects.

C)teams of individuals temporarily working on a special project together.

D)the specification of the jobs to be done within a business, and how much decentralization will be permitted.

E)the specification of the jobs to be done within a business and the relationship of these jobs with each other.

Answer:  E

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

6)Which of the following elements determine an organization’s structure?

A)The organization’s strategy

B)The organization’s mission

C)The organization’s purpose

D)The organization’s technology

E)All of these

Answer:  E

Diff: 2

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

7)When Ford executives announced changes intended to eliminate corporate bureaucracy, speed decision making, and improve communication and working relationships among people at different levels of the organization, these changes were examples of the ________ function of management.

A)organizing

B)planning

C)directing

D)controlling

E)none of these

Answer:  A

Diff: 2

Skill: Application

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

8)Which of the following clarify structure and show employees where they fit into a firm’s operations?

A)Organization charts

B)Responsibility

C)Departmentalization

D)Delegation

E)The mission statement

Answer:  A

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

9)Which of the following is not one of the determinants of organizational structure?

A)Organizational size

B)Organizational profit

C)Organizational mission

D)Organizational strategy

E)Purpose of the organization

Answer:  B

Diff: 2

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

10)Which of the following does not account for different organizational structures?

A)An institution’s mission

B)An institution’s strategy

C)Changes in environmental circumstances

D)An institution’s profits

E)An institution’s purpose

Answer:  D

Diff: 2

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

11)What is the purpose of organization charts?

A)They portray the firm’s structure and the relationship of employees within the organization

B)They are a valuable tool for companies experiencing a large increase in research and development expenditures on new products

C)They show the grouping of jobs into logical units

D)They are used to plan marketing campaigns

E)They determine which jobs need to be accomplished and who will perform them

Answer:  A

Diff: 2

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

12)Which term is defined as a physical depiction of the company’s structure showing employee titles and their relationship to one another?

A)Chain of command

B)Organizational structure

C)Organization chart

D)Organizational strategy

E)Organizational determinants

Answer:  C

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

13)What would an organization use to show a new employee his/her position in the firm and its relationship to other positions?

A)Manual of positions and relationships

B)Departmentalization plan

C)Organizational strategy

D)Job specialization list

E)Organization chart

Answer:  E

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

14)What is the meaning of the individual boxes shown on an organization chart?

A)Each box is appropriately labelled as a function or a process in the flow of materials/services

B)Each box represents a job within the company

C)Each box indicates a different geographical departmentalization

D)Each box represents a group of people

E)Each box represents a product or service provided by the organization

Answer:  B

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

15)What is the meaning of the solid lines connecting the boxes on an organization chart?

A)They identify the relationship of the important staff departments

B)They identify the level of specialization within the organization

C)They identify the reporting relationship, or chain of command, within the organization

D)They identify the relationship between the processes in the flow of materials/services

E)They identify the products or services available from the organization

Answer:  C

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

16)How are corporate reporting relationships shown on an organization chart?

A)Arrow

B)Dotted line

C)Solid line

D)Arrow with the letter

E)Dashed line with the letter

Answer:  C

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

17)The chain of command has the following characteristics except

A)solid lines in an organization chart show the chain of command.

B)when the chain of command is not clear, many different kinds of problems can arise.

C)it shows the flow of decision-making power in a firm.

D)the chain of command shows both the informal and formal organizational structure.

E)it shows the reporting relationships within a business.

Answer:  D

Diff: 2

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

18)Scott is looking at a chart showing the company’s organization structure. He notices that there is a solid line connecting Judy and Charles to Kara. This means that

A)all reports created by Judy and Charles must be sent to Kara.

B)the product flows from Judy and Charles to Kara.

C)there is a direct telephone line between Judy and Charles and Kara.

D)Kara has more seniority than Judy or Charles.

E)Judy and Charles both report to Kara.

Answer:  E

Diff: 2

Skill: Application

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

19)Businesses spend a great deal of time developing organization charts because

A)charts portray the firm’s structure and the relationship of employees within the organization.

B)a chart determines which jobs need to be accomplished and who will perform them.

C)charts are a valuable tool for companies that are involved in the research and development of new products.

D)charts are useful when planning marketing campaigns.

E)all of these.

Answer: A

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

20)Organizational structure is defined as

A)teams of individuals temporarily working on a special project together.

B)the specification of the jobs to be done within a business, and how centralized or decentralized decision making will be.

C)the specification of jobs and the relationship of these jobs to each other.

D)reporting relationships within the company.

E)none of these.

Answer: C

Diff: 2

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

21)Joanne is showing new employees the position she occupies in the organizational hierarchy.  Joanne is using

A)a chain of command chart.

B)a manual of positions and relationships.

C)an organization chart.

D)a job specialization chart.

E)a replacement chart.

Answer: C

Diff: 1

Skill: Application

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

22)Solid lines on the company structure chart depict

A)product flow.

B)reporting relationships.

C)informal communication channels.

D)seniority.

E)paper flow.

Answer: B

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

23)Whether a business is large or small, the starting point in developing its organization structure is

A)determining a strategic plan.

B)appointing a board of directors.

C)establishing a mission statement.

D)determining who will do what.

E)none of these are correct.

Answer: D

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

24)Reporting relationships among employees are also called

A)line and staff relationships.

B)the chain of command.

C)superior-subordinate relationships.

D)boss-worker relationships.

E)delegation.

Answer: B

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

25)The chain of command illustrates ____________, while the organization chart illustrates ________.

A)job specialization; the company’s structure

B)reporting relationships; job specialization

C)centralization; decentralization

D)functional departmentalization; job specialization

E)reporting relationships; the company’s structure

Answer: E

Diff: 3

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

26)How are reporting relationships usually shown on an organization chart?

A)An arrow with the letter R

B)A dotted line with the letter R

C)A solid line

D)A dotted line

E)None of these

Answer: C

Diff: 1

Skill: Recall

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

27)Since Sault College is a very large organization, its organization charts would likely be

A)summarized and simple.

B)a series of charts, one for each division or department.

C)nonexistent below the company office level.

D)on very large sheets of paper.

E)nonexistent because of size requirements.

Answer: B

Diff: 2

Skill: Application

Objective: 7.1

A-Heading: What Is Organizational Structure?

 

28)The process of identifying the specific jobs that need to be done and designating the people who will perform them leads to

A)segmentation.

B)departmentalization.

C)job specialization.

D)group tasks.

E)mission enhancement.

Answer:  C

Diff: 1

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

29)In a Disney animated feature, the job of one cartoonist may be to draw the face of a single character throughout the feature. This is an example of

A)mission enhancement.

B)segmentation.

C)departmentalization.

D)group tasks.

E)job specialization.

Answer:  E

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

30)Determining who will do what is referred to as

A)authority.

B)departmentalization.

C)accountability.

D)responsibility.

E)specialization.

Answer:  E

Diff: 2

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

31)Which of the following is a natural part of organizational growth?

A)Job specialization

B)Forming a union

C)Retrenchment

D)Outsourcing

E)Entrepreneurship

Answer:  A

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

32)The extent to which a larger job is broken down into smaller tasks is referred to as

A)specialization.

B)departmentalization.

C)responsibility.

D)authority.

E)accountability.

Answer:  A

Diff: 2

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

33)Grouping jobs into logical units is called

A)departmentalization.

B)process management.

C)specialization.

D)development of the grapevine.

E)authorization.

Answer:  A

Diff: 1

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

34)The two basic building blocks of all business organizations are

A)specialization and departmentalization.

B)profit centres and divisions.

C)functional and divisional departmentalization.

D)managers and workers.

E)centralization and decentralization.

Answer: A

Diff: 2

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

35)Michael is in the process of taking the department’s overall “job” and breaking it down into smaller and smaller “jobs.” Michael is working on

A)a matrix structure.

B)job specialization.

C)departmentalization.

D)job classification.

E)job analysis.

Answer: B

Diff: 1

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

36)Karen, a human resources manager, is looking at the specific jobs in her organization. She would like to see what tasks each employee is doing. She is primarily investigating

A)organization chart.

B)departmentalization.

C)chain of command.

D)organizational structure.

E)job specialization.

Answer:  E

Diff: 2

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

37)A natural development in growing organizations is

A)job analysis.

B)centralization of authority.

C)a profit centre.

D)job specialization.

E)a matrix structure.

Answer: D

Diff: 1

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

38)Which of the following is correct with regard to job specialization?

A)It is a new idea

B)Its application is limited to factory work

C)It is a natural part of organizational growth

D)It makes it more difficult to replace people who leave the organization

E)All of these are correct

Answer: C

Diff: 1

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

39)Departmentalization refers to

A)the number of employees managed by a single supervisor.

B)the level at which decisions are made.

C)the duty to perform an assigned task.

D)the grouping of specialized jobs into logical units.

E)the establishment of a unit that is responsible for its own costs and profits.

Answer: D

Diff: 1

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

40)The grouping of specialized jobs into logical units is called

A)work teams.

B)departmentalization.

C)centralization.

D)organization structure.

E)none of these.

Answer: B

Diff: 1

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

41)David has grouped some jobs together in such a way that they can be treated as if they are a separate business which is responsible for its costs, revenues, and profits. David has created a

A)functional department.

B)profit centre.

C)departmentalized work group.

D)matrix structure.

E)a divisionalized department.

Answer: B

Diff: 1

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

42)The men’s clothing department at Sears is an example of a

A)functional department.

B)process department.

C)product department.

D)profit centre.

E)matrix structure.

Answer: D

Diff: 1

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

43)ComputerLand’s structure is set up so that each location is responsible for its own costs and profits. Each location is

A)a specialized unit.

B)a process department.

C)a profit centre.

D)a product department.

E)a centralized department.

Answer: C

Diff: 1

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

44)Businesses use profit centres because

A)sales revenue in various territories is easier to determine.

B)each individual reports to no more than two managers.

C)a greater degree of job specialization can be attained.

D)the organization may be divided according to the production process used.

E)each separate unit is responsible for its own costs.

Answer: E

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

45)Stores like Sears and The Bay are most likely to departmentalize by

A)function.

B)geography.

C)process.

D)customer.

E)product.

Answer: D

Diff: 1

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

46)Susie’s Pets and Supplies, a retail shop that sells pets and many related products needed by those pets, has recently reorganized. One area of the store is exclusively for dogs, another exclusively for cats, another exclusively for tropical fish, and so on. The shop is departmentalized by

A)process.

B)function.

C)geography.

D)customer.

E)product.

Answer: E

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

47)Home Depot and other hardware stores are typically departmentalized by

A)product.

B)geography.

C)customer.

D)function.

E)process.

Answer: A

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

48)Bigbucks Bank has separate departments for consumer loans and commercial loans. It is departmentalized by

A)process.

B)customer.

C)product.

D)geography.

E)function.

Answer: C

Diff: 1

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

49)Stores like HMV are divided into departments like classical music, R&B, pop, and so on.  This illustrates departmentalization by

A)process.

B)customer.

C)function.

D)geography.

E)product.

Answer: B

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

50)Pickle maker Vlasic has separate departments to transform cucumbers into fresh-packed pickles, pickles cured in brine, and relishes. They have chosen departmentalization by

A)customer.

B)function.

C)process.

D)geographic.

E)product.

Answer: C

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

51)As part of your annual physical, you notice that while at the hospital you’ll be sent to X-ray, to the Lab for blood workups, to another department for stress testing, and so on. You realize that since each test requires different equipment and worker skills, the hospital is departmentalized by

A)geography.

B)function.

C)process.

D)product.

E)customer.

Answer: C

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

52)Electronic Universe is organized by departments such as televisions sets, VCR, radio, etc. What type of departmentalization do they use?

A)Product

B)Process

C)Geographic

D)Functional

E)Electronic

Answer: A

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

53)Which form of departmentalization is a department store most likely to use?

A)Geographic

B)Process

C)Customer

D)Functional

E)Production

Answer: C

Diff: 2

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

54)What explanation is best for customer departmentalization?

A)The firm is divided according to the functions performed in a particular grouping of specialists

B)The company is departmentalized according to the process used to produce goods/services for customers

C)The company is divided according to a specific customer target

D)The company is divided along the lines of the specific goods/services produced for customers

E)None of these

Answer: C

Diff: 1

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

55)Because most Sales departments and Service departments want to be close to their customers, they are usually departmentalized by

A)function.

B)product.

C)geography.

D)customer.

E)process.

Answer: C

Diff: 1

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

56)An international company that has organized itself by areas such as North America, Europe, Pacific, and South America is departmentalized by

A)function.

B)product.

C)customer.

D)process.

E)geography.

Answer: E

Diff: 1

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

57)In the box entitled “Product Versus Geographical Departmentation: What’s The Right Choice”?, which of the following points is made?

A)Product departmentalization ensures quick, responsive reaction to the need of the company’s customers in certain geographic areas

B)Organizing by product has grown in popularity as globalization has occurred

C)Many firms are now switching from product to geographic departmentalization

D)Geographic departmentalization can lead to duplication of production and other facilities

E)All of these points are made

Answer: D

Diff: 3

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

58)Firms that have departments such as production, marketing, finance, human resources, etc. are using ________ departmentalization.

A)geographic

B)product

C)customer

D)process

E)functional

Answer: E

Diff: 1

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

59)In reviewing the organizational structure of your company, you notice that Engineering is subdivided into mechanical, electrical, and software. Additionally, the Accounting Department is subdivided into Accounts Payable, Accounts Receivable, and Asset Management. What type of departmentalization has the company selected?

A)Process

B)Functional

C)Geographic

D)Product

E)Customer

Answer: B

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

60)Which form of departmentalization is most likely to be used by a public utility company?

A)Geographic

B)Functional

C)Product

D)Process

E)Customer

Answer: A

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

61)What is the form of departmentalization being used in a firm with department titles such as accounting, human resources, marketing, and production?

A)Product

B)Geographic

C)Process

D)Functional

E)Customer

Answer: D

Diff: 1

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

62)The type of departmentalization where all the engineers are in an Engineering Department, all the customer service reps are in a Customer Service Department, and all the accountants are in an Accounting Department is called __________ departmentalization.

A)customer

B)process

C)product

D)functional

E)geographic

Answer: D

Diff: 1

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

63)Determining how people performing certain tasks can best be grouped together is called

A)departmentalization.

B)controlling.

C)planning.

D)specialization.

E)directing.

Answer:  A

Diff: 2

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

64)David has grouped some jobs together in such a way that they can be treated like they were a small business, responsible for its costs, revenues, and profits. David has created a

A)process department.

B)departmentalized work group.

C)profit centre.

D)profit and loss centre.

E)functional department.

Answer:  C

Diff: 1

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

65)Departmentalization is the process of

A)creating separate profit centres.

B)creating separate revenue centres.

C)developing an organization chart.

D)creating chains of command.

E)grouping jobs into logical units.

Answer:  E

Diff: 2

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

66)Departmentalization can best be explained as

A)the number of employees managed by a single supervisor.

B)the duty to perform an assigned task.

C)the grouping of specialized jobs into logical units.

D)the level at which decisions are made.

E)the determination of who will do what.

Answer:  C

Diff: 1

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

67)Which of the following best describes customer departmentalization?

A)The firm is divided according to the production process

B)The company is divided along the lines of specific goods/services produced for consumers

C)The company is divided according to a specific customer target

D)The firm is divided according to the functions performed in a particular grouping of specialists

E)The company is departmentalized according to the process used to produce goods/services for customers

Answer:  C

Diff: 3

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

68)Which of the following is an advantage of customer departmentalization?

A)Employees will make more money and have more job security

B)Top managers can easily see how the production process is working

C)Greater expertise can be developed when specialists of one function work together

D)Top managers can determine when resources need to be changed because of increasing demand in a particular geographic area

E)The business benefits from efficiencies and customers get better service

Answer:  E

Diff: 2

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

69)What type of departmentalization is used by an organization whose departments are named television sets, radios, etc.?

A)Functional

B)Electronic

C)Product

D)Process

E)Geographic

Answer:  C

Diff: 1

Skill: Recall

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

70)Hewlett-Packard reorganized to increase customer responsiveness and improve decision making by creating highly autonomous teams. These teams are

A)process departments.

B)profit and loss centres.

C)functional departments.

D)departmentalized work groups.

E)profit centres.

Answer:  E

Diff: 2

Skill: Application

Objective: 7.2

A-Heading: The Building Blocks of Organizational Structure

 

71)As you enter your favourite store looking for a graduation gift for your cousin, you notice the signs suspended from the ceiling: Men’s, Women’s, Children’s, Infant’s. The store is departmentalized by

A)geography.

B)customer.

C)function.

D)product.

E)process.

Answer:  B

Diff: 1

Skill: Application

Objective: 7.2