Management, Leadership, And The Internal | Test Bank Ch.7

Package Title: Chapter 7, Testbank

Course Title: Boone, Contemporary Business, 19^th Edition

Chapter Number: 7

Question type: Multiple Choice

1) _____ is the process of achieving organizational objectives through people and other resources.

a) Management

b) Organization

c) Vision

d) Controlling

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

2) _____ includes positions such as CEO and CFO who devote most of their time to developing long-range plans.

a) Top management

b) Matrix structure

c) Span of management

d) Chain of command

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

3) _____ include the ability to communicate with, motivate, and lead employees to complete assigned activities.

a) Delegation

b) Controlling

c) Human skills

d) Empowerment

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

4) The _____ function evaluates an organization’s performance against its objectives.

a) delegation

b) span of management

c) controlling

d) empowerment

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

5) _____ is the perception of marketplace needs and the ways a company can satisfy them.

a) Vision

b) SWOT analysis

c) Mission statement

d) Competitive differentiation

Difficulty: Easy

Learning Objective 1: 07-02: Explain the role of setting a vision and ethical standards for a company.

Section Reference 1: Setting a Vision and Ethical Standards for the Company

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || KnowledgeBloomcode: Knowledge

6) _____ allows a company to resume operations quickly and smoothly after a crisis while openly communicating with the public about what happened.

a) Contingency planning

b) Nonprogrammed decision

c) Autocratic leaders

d) Human skills

Difficulty: Easy

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

7) A(n) _____ is a written explanation of an organization’s business intentions and aims.

a) corporate culture

b) vision

c) mission statement

d) competitive differentiation

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

8) A(n) _____ systematically evaluates a company’s strengths, weaknesses, opportunities, and threats.

a) organization

b) vision

c) SWOT analysis

cd mission statement

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

9) The unique combination of a company’s abilities and approaches that set it apart from competitors is called _____.

a) corporate culture

b) vision

c) mission statement

d) competitive differentiation

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

10) A(n) _____ involves a complex and unique problem or opportunity with important consequences for an organization.

a) vision

b) nonprogrammed decision

c) mission statement

d) competitive differentiation

Difficulty: Easy

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

11) People who make decisions on their own without consulting their subordinates are _____.

a) top management

b) controlling

c) the chain of command

d) autocratic leaders

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

12) _____ is the business concept in which employees share authority, responsibility, and decision making with their managers.

a) Corporate culture

b) Departmentalization

c) Delegation

d) Empowerment

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

13) An organization’s system of principles, beliefs, and values is called _____.

a) corporate culture

b) vision

c) mission statement

d) competitive differentiation

Difficulty: Easy

Learning Objective 1: 07-07: Discuss corporate culture.

Section Reference 1: Corporate Culture

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

14) A(n) _____ is a structured group of people working together to achieve common goals.

a) organization

b) vision

c) delegation

d) chain of command

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

15) _____ is the process of dividing work activities into units within an organization.

a) Management

b) Departmentalization

c) Delegation

d) Decentralization

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

16) The _____, or product management design, links employees from different parts of an organization to work together on specific projects.

a) departmentalization

b) delegation

c) matrix structure

d) decentralization

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

17) The managerial process of assigning work to subordinates is called _____.

a) management

b) departmentalization

c) delegation

d) empowerment

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

18) The number of employees a manager supervises is referred to as the _____.

a) departmentalization

b) delegation

c) span of management

d) chain of command

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

19) A company that emphasizes _____ locates decision making at lower levels.

a) departmentalization

b) delegation

c) decentralization

d) empowerment

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

20) A(n) _____ is a hierarchy of managers and workers which lets everyone know who is in charge.

a) departmentalization

b) matrix structure

c) span of management

d) chain of command

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

21) _____ are most likely to make decisions regarding the purchase of other companies.

a) General managers

b) First-line managers

c) Supervisors

d) Top managers

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

22) _____ is the process of achieving organizational objectives through people and other resources.

a) Management

b) Mission statement

c) Planning

d) Delegation

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

23) Naina’s job duties include such tasks as deciding whether or not to introduce a new product or enter a new foreign market. Naina is most likely a member of _____ management.

a) middle

b) top

c) supervisory

d) first-line

Difficulty: Medium

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

24) Yan works directly with her nonmanagerial subordinates. She allocates work to her team members and sets deadlines and targets for each member. She also conducts performance appraisal for her team members. Yan is most likely to belong to _____.

a) middle management.

b) strategic management.

c) top management.

d) first-line management.

Difficulty: Medium

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

25) Alia is a manager who spends most of her time in day-to-day decisions assigning nonmanagerial employees to specific jobs. Alia is considered a _____ manager.

a) top

b) technical

c) supervisory

d) mid-level

Difficulty: Medium

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

26) Most top executives started out as _____.

a) technical experts.

b) chartered accountants.

c) human relations executives.

d) marketing professionals.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

27) Malik is a manager at Boardwalk Inc. He develops a formal structure of tasks and authority and proceeds to organize by dividing tasks among employees. Which managerial function is Malik performing?

a) Planning

b) Organizing

c) Directing

d) Controlling

Difficulty: Medium

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

28) Which of the following has Keller Williams employed to increase its return on investment?

a) It has increased its consumer engagement.

b) It has recalled most of its products.

c) It has made employee training a strategic priority.

d) It has increased its product diversity.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

29) Which skills are the manager’s ability to understand and use the techniques, knowledge, tools, and equipment of a specific discipline or department?

a) Human

b) Conceptual

c) Intuitive

d) Technical

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

30) When Priyanka instructs new employees on handling customer complaints, she motivates them to respond with patience and a positive attitude. Priyanka has effective _____ skills.

a) human

b) conceptual

c) intuitive

d) visionary

Difficulty: Medium

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

31) Which skills include the ability to communicate, build rapport, collaborate, motivate, and lead employees to meet organizational goals through individual and team assignments?

a) Human

b) Conceptual

c) Intuitive

d) Visionary

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

32) Raj works for an automotive company. He devises long-term plans, performs thorough analyses, and makes decisions for the company. Given the activities he performs, Raj is most likely to be a _____.

a) supervisory manager

b) middle manager

c) low-level manager

d) top-level manager

Difficulty: Medium

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

33) Conceptual skills are especially important for _____, who must develop long-range plans for the future direction of their organizations.

a) first-line managers

b) middle managers

c) top-level managers

d) supervisory managers

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

34) Sona, president of Movesoft Graphics, is highly respected for her ability to analyze and interpret the trends in the rapidly changing graphics industry. Sona has effective _____ skills.

a) human relations

b) technical

c) conceptual

d) supervisory

Difficulty: Medium

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

35) Rafael is working on a project where he needs to anticipate future events and conditions, as well as avoid costly mistakes. Rafael is engaged in the _____ managerial function.

a) controlling

b) planning

c) organizing

d) directing

Difficulty: Medium

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

36) Which of these describes the process of blending human and material resources through a formal structure of tasks and authority; arranging work, dividing tasks among employees, and coordinating them to ensure implementation of plans and accomplishment of objectives?

a) Organizing

b) Controlling

c) Directing

d) Planning

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

37) Jamila classifies and divides work into manageable units by determining the specific tasks necessary to introduce a new product. Jamila is involved in the _____ managerial function.

a) organizing

b) controlling

c) directing

d) planning

Difficulty: Medium

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

38) Alberto is responsible for guiding and motivating ten other employees to accomplish various organizational objectives. Alberto handles the _____ managerial function.

a) planning

b) organizing

c) directing

d) controlling

Difficulty: Medium

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

39) Which of these evaluates an organization’s performance against its objectives?

a) Directing

b) Controlling

c) Organizing

d) Planning

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

40) Bernardo’s job is to assess the success of the planning function and provide feedback for future rounds of planning. Bernardo is engaged in the ______ managerial function.

a) directing

b) controlling

c) organizing

d) launching

Difficulty: Medium

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

41) _______ is the ability to perceive marketplace needs and what an organization must do to satisfy them.

a) Organizing

b) Strategic planning

c) Vision

d) Operational planning

Difficulty: Easy

Learning Objective 1: 07-02: Explain the role of setting a vision and ethical standards for a company.

Section Reference 1: Setting a Vision and Ethical Standards for the Company

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

42) Marina strongly believes that freshmen need credit counseling, so she begins a not-for-profit organization devoted to this need. Which of the following is depicted in this scenario?

a) Monitoring strategic plans

b) Performing the controlling function

c) Setting a vision

d) Executing organizational objectives

Difficulty: Medium

Learning Objective 1: 07-02: Explain the role of setting a vision and ethical standards for a company.

Section Reference 1: Setting a Vision and Ethical Standards for the Company

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

43) A company’s vision should be _____ and _____.

a) rigid; focused

b) rigid; broad

c) focused; flexible

d) flexible; broad

Difficulty: Easy

Learning Objective 1: 07-02: Explain the role of setting a vision and ethical standards for a company.

Section Reference 1: Setting a Vision and Ethical Standards for the Company

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

44) ______ determines the primary objectives of an organization and then acts and allocates resources to achieve those objectives.

a) Tactical planning

b) Strategic planning

c) Contingency planning

d) Operational planning

Difficulty: Easy

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

45) A petroleum refinery stockpiles crude oil so that it can easily switch between producing home heating oil and gasoline, depending on relative demand. This is an example of _____ planning.

a) contingency

b) incident

c) strategic

d) operational

Difficulty: Hard

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Evaluation

46) Whytech Inc. is an online shopping portal. Which of the following is most likely to be included in the company’s strategic planning?

a) Fixing tight deadlines for tasks to be completed by employees.

b) Openly communicating with the customers in the event of delayed delivery of products.

c) Creating a mobile application to ease the customers’ shopping experience.

d) Offering incentives and additional benefits to motivate employees.

Difficulty: Medium

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

47) Which planning involves implementing the activities specified by strategic plans?

a) Incident

b) Tactical

c) Exigency

d) Contingency

Difficulty: Easy

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

48) Which planning guides the current and near-term activities required to implement overall strategies?

a) Contingency

b) Tactical

c) Strategic

d) Operational

Difficulty: Easy

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

49) Chang, a manager at a home appliances store, plans schedules and sets targets for his subordinates to ensure that they effectively achieve all the organizational goals. He also plans the recruitment of additional staff for delivery and customer service to improve the overall shopping experience. Chang is involved in _____ planning.

a) contingency

b) strategic

c) operational

d) exigency

Difficulty: Medium

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

50) Aisha reviews the applications received for a new position in finance. This is an example of _____ planning.

a) operational

b) contingency

c) tactical

d) strategic

Difficulty: Medium

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

51) Ehshan sets the deadlines for an upcoming project. This depicts _____ planning.

a) operational

b) tactical

c) strategic

d) contingency

Difficulty: Medium

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

52) Kamal, a manager, sets up delivery schedules for the logistic team for the orders received online, as part of their new e-Commerce strategies. In this scenario, Kamal is most likely to be involved in _____ planning.

a) incident

b) tactical

c) operational

d) contingency

Difficulty: Medium

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

53) A logistics company began moving trucks and supplies into position nearly a week before a hurricane hit the city, as specified in the company’s _____ plan.

a) tactical

b) strategic

c) operational

d) contingency

Difficulty: Medium

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

54) Central Railway has plans in place to reroute trains in the event that floods or other natural disasters close some of the railroad’s tracks. This is an example of _____ planning.

a) contingency

b) tactical

c) strategic

d) operational

Difficulty: Medium

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

55) Homefit International, a home furnishing store, issued a recall notice for a defective appliance. Before the notice was publicly issued, the company had assembled a crisis management team to enact a(n) _____ plan.

a) tactical

b) operational

c) contingency

d) strategic

Difficulty: Medium

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

56) Tactical planning is primarily the responsibility of _____.

a) middle managers

b) supervisory managers

c) first-line managers

d) top management executives

Difficulty: Easy

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

57) Daily and weekly plans, rules, and procedures for each department are examples of _____ planning.

a) tactical

b) strategic

c) operational

d) contingency

Difficulty: Easy

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

58) The first step in the strategic planning process is _____.

a) define an organization’s mission

b) monitor and adapt plans

c) assess the competitive position

d) develop strategies for reaching objectives

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

59) FlipTech Inc. is a cell phone service provider that offers 3G services. A new entrant in the market that offers 4G services is most likely to be a(n) _____ to FlipTech Inc.

a) weakness

b) strength

c) threat

d) opportunity

Difficulty: Medium

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

60) Diego is part of a strategic planning team. He has identified that his company is a low-cost producer in its industry. This should be listed on a SWOT analysis as a(n) _____.

a) threat

b) weakness

c) opportunity

d) strength

Difficulty: Medium

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

61) Vincent owns a bakery and is creating a SWOT analysis to see where he can make improvements and increase sales. All of the following are threats to the success of his company EXCEPT _____.

a) economies of scale

b) a downturn in the economy

c) regulatory changes

d) an enhanced market competition

Difficulty: Medium

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

62) Remo is a member of his firm’s strategic planning team. He has identified several untapped markets that exist in other countries. In a SWOT analysis, his observation should be listed as a(n) _____.

a) opportunity

b) weakness

c) strength

d) threat

Difficulty: Medium

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

63) Which of these set guideposts by which managers define an organization’s desired performance?

a) Mission statements

b) Standards

c) Opportunities

d) Objectives

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

64) How is a company’s objective different from its mission statement?

a) Unlike an objective, a mission statement is measurable.

b) Unlike a mission statement, an objective is concrete.

c) Unlike a mission statement, an objective is constant.

d) Unlike an objective, a mission statement includes strategies.

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

65) Which statement is true of the implementation phase of strategic planning process?

a) Often, it is the middle managers or supervisors who actually implement a strategy.

b) It is the second phase of the strategic planning process.

c) It involves securing feedback about performance.

d) Often, a firm attempts to define the major opportunities and threats it is likely to face in this phase.

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

66) In the context of a company’s strategic planning process, which of the following steps should be performed immediately after the company’s competitive position has been determined?

a) Defining the company’s mission

b) Creating strategies for competitive differentiation

c) Setting objectives for the company

d) Monitoring and adapting strategic plans

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

67) Decisions involving simple, common, frequently occurring problems for which solutions have already been determined are _____ decisions.

a) nonprogrammed

b) programmed

c) creative

d) strategic

Difficulty: Easy

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

68) Jordan is the manager of a local electronics store. He reorders products from a local supplier once every three months. This is an example of _____.

a) a programmed decision

b) a nonprogrammed decision

c) span of management

d) span of control

Difficulty: Medium

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

69) Which of the following is a difference between programmed and nonprogrammed decisions?

a) Unlike programmed decisions, nonprogrammed decisions involve routine problems.

b) Unlike nonprogrammed decisions, programmed decisions involve complex problems.

c) Unlike programmed decisions, nonprogrammed decisions involve unique problems.

d) Unlike nonprogrammed decisions, programmed decisions involve predetermined procedures.

Difficulty: Easy

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

70) Wolde Corp. has established a discount schedule for large-volume clients. This _____ will allow managers to devote more time to complex issues.

a) programmed decision

b) contingency decision

c) nonprogrammed decision

d) emergency decision

Difficulty: Medium

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

71) A fast food joint has decided to add a pork sandwich to its menu. This is an example of a(n) _____.

a) contingency decision

b) emergency plan

c) nonprogrammed decision

d) programmed decision

Difficulty: Medium

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

72) Dominic is the product manager of a new company that makes hand-held computers. He is trying to decide between two operating systems for the product. Dominic is _____.

a) creating a vision

b) making a nonprogrammed decision

c) solving a recurring problem

d) taking a programmed decision

Difficulty: Medium

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

73) The first step in the decision-making process is to _____.

a) develop alternative courses of action

b) evaluate alternatives

c) recognize a problem or opportunity

d) select and implement the chosen alternative

Difficulty: Easy

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

74) Once a manager has determined the problem or opportunity, the next step in the decision-making process is to _____.

a) create a contingency plan

b) develop possible courses of action

c) identify the threats

d) recognize the strengths

Difficulty: Easy

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

75) Wagner is faced with making a decision about selecting a local supplier. He has researched the advantages and disadvantages of three local suppliers. What should Wagner do next?

a) Recognize the problems in choosing a supplier.

b) Follow up on the effectiveness of his decision.

c) Select and approach one of the suppliers.

d) Delay making the decision.

Difficulty: Medium

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

76) The quality control team at an electronics manufacturing company selects and implements a strategy to reduce product defects after evaluating the possible alternatives. What is the next step it should take in the decision-making process?

a) Assess the outcome of the decision.

b) Develop a potential course of action.

c) Recognize the opportunity.

d) Define the problem.

Difficulty: Medium

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

77) Which of these is the ability to direct or inspire people to attain certain goals?

a) Flexibility

b) Planning

c) Empowerment

d) Leadership

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

78) Which of the following illustrates a quality of a great leader?

a) Jonathan displays a rigid style of work.

b) Cynthia refrains from using her influence to attain new clients for her company.

c) Rafael empathizes with his employees.

d) Sarah refrains from using her power to direct the activities of her employees.

Difficulty: Medium

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

79) Which of these is true of autocratic leaders?

a) They involve subordinates in critical decision-making processes.

b) They empower employees.

c) They believe in minimal supervision.

d) They make decisions on their own, often without consulting others.

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

80) Which of the following is true of autocratic leadership?

a) It is centered on the boss.

b) It encourages two-way communication.

c) It allows subordinates to make most of their own decisions.

d) It is based on the concept of employee empowerment.

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

81) Democratic leaders _____.

a) are always the most effective leaders

b) let people know only what they need to know to do their jobs

c) involve their subordinates in the decision-making process

d) leave all decisions to their subordinates

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

82) ______ leadership style would allow sales personnel to participate in setting sales quotas along with the managers.

a) Free-rein

b) Judgmental

c) Democratic

d) Autocratic

Difficulty: Medium

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

83) Markell believes in empowering the employees in her department. Markell is most likely to be a(n) _____ leader.

a) task-oriented

b) independent

c) democratic

d) autocratic

Difficulty: Medium

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

84) Wowforce Corp. has a policy of allowing employees at its hotels to immediately respond to customers’ problems without having to obtain prior approval from senior managers. This type of leadership policy is best described as _____.

a) free-rein leadership

b) dogmatic leadership

c) autocratic leadership

d) dictatorial leadership

Difficulty: Medium

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

85) Dominique, the marketing manager of TI-Pro, allows her subordinates to make most of the decisions in their department on their own. Dominique’s leadership style can best be described as _____.

a) free-rein

b) autocratic

c) democratic

d) persuasive

Difficulty: Medium

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

86) Who among the following is most likely to have the free-reign style of leadership?

a) Gia makes decisions with little or no consultation from her employees.

b) Aaron encourages employees’ participation in decision making.

c) Syed expects his employees to make their own decisions.

d) Nazneen shares authority and responsibility with her employees.

Difficulty: Medium

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

87) Which of the following statements is true of leadership styles?

a) A democratic style of leadership is the best form of leadership.

b) No single leadership style is best for every firm in every situation.

c) The best leadership style is dependent on employee feedback.

d) A free-rein style of leadership is the most effective form of leadership.

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

88) JIT Corp. develops software tools for banking operations. One of the company’s beliefs is that creativity is the most important factor in the success of an organization. Hence, apart from the time allotted to complete the regular revenue generating tasks, the company also allots a separate time period for its employees to work on their own ideas. In this scenario, JIT Corp. is trying to integrate creativity into its _____.

a) organizational policy

b) corporate culture

c) mission statement

d) enterprise architecture

Difficulty: Medium

Learning Objective 1: 07-07: Discuss corporate culture.

Section Reference 1: Corporate Culture

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

89) Which of the following constitutes corporate culture?

a) The revenue generated by an organization.

b) The way an organization communicates.

c) The vision of an organization.

d) The contingency plan of an organization.

Difficulty: Easy

Learning Objective 1: 07-07: Discuss corporate culture.

Section Reference 1: Corporate Culture

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

90) Which of the following is true of an organization’s corporate culture?

a) A flexible corporate culture allows the organization to respond to shifts in technology.

b) A corporate culture is framed and imposed on employees by the supervisory management.

c) A corporate culture constitutes the vison and mission of an organization.

d) A rigid corporate culture helps accommodate more customers and employees.

Difficulty: Easy

Learning Objective 1: 07-07: Discuss corporate culture.

Section Reference 1: Corporate Culture

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

91) ______ is the first step in the organizing process.

a) Assigning work to specific employees

b) Grouping work activities into a logical structure

c) Coordinating the work of different groups and employees within a firm

d) Determining the specific activities needed to implement plans

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

92) The last step in the organizing process is _____.

a) coordinating the activities of different groups and individuals

b) assigning activities to specific groups and people and allocate the necessary resources

c) evaluating the results of the process

d) grouping work activities into a logical structure

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

93) Shin is the owner-manager of a 24-hour convenience store. When he first opened the business, he employed only four people, and it was easy to manage the store through informal means. The store experienced rapid growth and is now a six-unit chain. Shin is now trying to manage 30 employees. As part of the organizing process, he first determines the activities to be taken to achieve his organizational goals. What is the next step he should take?

a) He should delegate specific tasks to his employees.

b) He should evaluate the results of the implemented actions.

c) He should group the actions into a logical structure.

d) He should coordinate the actions to be taken between different groups of employees in his organization.

Difficulty: Medium

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

94) Which of these can help clarify the structure of a company?

a) Mission statement

b) Operational plan

c) Contingency plan

d) Organization chart

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

95) What happens to a company’s organizational structure when the company grows?

a) It increases in complexity.

b) It decreases in size.

c) It becomes easier to understand.

d) It becomes more generic and flexible.

Difficulty: Easy

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

96) In which of the following arrangements do employees specialize in certain jobs?

a) Empowerment

b) Decentralization

c) Centralization

d) Departmentalization

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

97) Which departmentalization organizes work units based on the goods and services a company offers?

a) Product

b) Geographical

c) Functional

d) Process

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

98) TechServe Corp., a computer hardware firm, is subdivided by its different lines (such as laptops, desktops, mobile devices, printers, and servers). TechServe is departmentalized by _____.

a) process

b) function

c) product

d) customer

Difficulty: Medium

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

99) When company’s divide into work units such as human resources, marketing, production, and finance, this is known as _____ departmentalization.

a) product

b) geographical

c) functional

d) process

Difficulty: Medium

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

100) An advertising agency creates departments for creative personnel, media buyers, and account executives. This is an example of _____ departmentalization.

a) process

b) geographical

c) product

d) functional

Difficulty: Medium

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

101) First-line managers most likely have _____.

a) a more narrow span of control than top-level managers

b) a wider span of control than top-level managers

c) no span of control

d) the same span of control as that of top-level managers

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

102) A company that emphasizes centralization _____.

a) retains decision making at the top of the management hierarchy

b) locates decision making at the lower levels of the management hierarchy

c) always uses functional departmentalization

d) always uses process departmentalization

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

103) ABC Investments is a company that is based on a direct flow of authority from the top executive to subordinates. This is known as a _____ organization.

a) matrix

b) committee

c) line

d) line-and-staff

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

104) Which of the following is true of a line organization?

a) It is effective in a crisis situation.

b) It is a complex organization structure.

c) It places authority jointly in the hands of a group of individuals.

d) It links employees from different parts of the organization to work together.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

105) Which of the following forms of organizations is common in midsize and large firms?

a) A committee organization

b) A line organization

c) A line-and-staff organization

d) A matrix organization

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

106) We-R-Dents is a dentist’s office with three employees: a receptionist, a housekeeper, and a manager. The manager is responsible for all activities in the dentist’s office. In the context of organization structure, We-R-Dents is a _____.

a) matrix organization

b) committee organization

c) line organization

d) divisional organization

Difficulty: Medium

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

107) In a water purification plant, Hunter is the plant manager, Nicolao is a customer account manager, Marco is a supervisor, and Sunil is a technical manager in the engineering department. In this scenario, a staff relationship exists between _____.

a) Hunter and Marco.

b) Sunil and Marco.

c) Nicolao and Sunil.

d) Hunter and Nicolao.

Difficulty: Medium

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

108) A local bookstore uses an organizational structure in which authority and responsibility are jointly held by the entire group rather than by a single manager. This company is using a _____ organizational structure.

a) line-and-staff

b) committee

c) matrix

d) functional

Difficulty: Medium

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

109) Delight Corp. is in the process of creating a new product. The CEO places authority and responsibility jointly in the hands of the marketing manager, the production manager, and the financial manager. They tend to make decisions based on consensus. What type organizational structure is evident in this scenario?

a) Line

b) Committee

c) Matrix

d) Staff

Difficulty: Medium

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

110) The matrix design in organizational structures is also frequently referred to as the _____ design.

a) line management

b) chain of command

c) product management

d) team

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

111) Juan runs a multi-national firm which manufactures hi-tech medical equipment. In addition to its normal product lines, the company occasionally produces special products that require the cooperation of a variety of personnel from many departments. What form of organizational structure is best suited for this type of organization?

a) A matrix organizational structure

b) An informal organizational structure

c) A functional organizational structure

d) A line organizational structure

Difficulty: Medium

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

Question type: True/False

112) Delegation is the process of achieving organizational objectives through people and other resources.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

113) The principles of management apply to both not-for-profit organizations as well as profit-seeking companies.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

114) In the management hierarchy, supervisors are near the top.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

115) Technical skills are especially important for first-line managers and become less important at higher levels of the management hierarchy.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

116) To implement the firm’s strategic plans, middle managers develop detailed plans and procedures.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

117) Team leaders and section chiefs are typically part of middle management.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

118) Top managers devote most of their time to developing long-range plans for their organizations.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

119) Given that supervisors develop long-range plans for the future direction of their organizations, conceptual skills are especially important for them.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

120) Organizing is the process of anticipating future events and conditions and determining courses of actions for achieving organizational objectives.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

121) The basic purpose of directing is to evaluate the success of the planning function.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

122) Organizing involves classifying and dividing work into manageable units with a logical structure.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

123) The management function of directing might include training and retraining employees, establishing work schedules, and monitoring progress.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

124) Vision serves as the target for a company’s actions, helping direct the company toward opportunities and differentiating it from its competitors.

Difficulty: Easy

Learning Objective 1: 07-02: Explain the role of setting a vision and ethical standards for a company.

Section Reference 1: Setting a Vision and Ethical Standards for the Company

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

125) Unfortunately, the ethical tone that a top management team establishes can reap only nonmonetary rewards.

Difficulty: Easy

Learning Objective 1: 07-02: Explain the role of setting a vision and ethical standards for a company.

Section Reference 1: Setting a Vision and Ethical Standards for the Company

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

126) Ethical decisions, in practice, are clear-cut and easy to make.

Difficulty: Easy

Learning Objective 1: 07-02: Explain the role of setting a vision and ethical standards for a company.

Section Reference 1: Setting a Vision and Ethical Standards for the Company

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

127) Taking an ethical stand always ensures that a company reaps profit.

Difficulty: Easy

Learning Objective 1: 07-02: Explain the role of setting a vision and ethical standards for a company.

Section Reference 1: Setting a Vision and Ethical Standards for the Company

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

128) Strategic planning entails developing and implementing tactics in specific functional areas.

Difficulty: Easy

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

129) Tactical planning guides the current and near-term activities required to implement company-wide strategies.

Difficulty: Easy

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

130) A computer repair store establishes a policy requiring that customer service representatives respond to e-mails within three business days. This policy is a result of the company’s operational planning.

Difficulty: Medium

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

131) CEOs spend most of their time on strategic planning.

Difficulty: Easy

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

132) Before developing a mission statement, in the strategic planning process, a company must determine their current or potential position in the marketplace.

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

133) A SWOT analysis is set in stone and serves as a constant reminder of a company’s strengths and continuing threats.

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

134) Organizational objectives identify a company’s overall goals.

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

135) An example of a nonprogrammed decision is reordering office supplies.

Difficulty: Medium

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

136) When the manager of a local auto repair shop decided to expand into a neighboring town, she was making a programmed decision.

Difficulty: Medium

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

137) When an organization develops and launches a new product, it is making a programmed decision.

Difficulty: Medium

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

138) The recognition of a problem or opportunity is the first step in the decision-making process.

Difficulty: Easy

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

139) Autocratic leadership includes subordinates in the decision-making process.

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

140) Democratic leaders give their subordinates the authority to make all decisions.

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

141) An important part of democratic leadership is empowerment.

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

142) Managers at Pinnacle Corp. encourage employees to make most of their own decisions. This is an example of free-rein leadership.

Difficulty: Medium

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

143) Free-rein leaders allow subordinates to make most of the decisions and communicate with employees frequently, as the situations warrants.

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

144) Since employees are empowered to make all decisions, free-rein leaders believe in minimal communication.

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

145) Nadia believes that closely supervising employees stifles their creativity, so she allows her employees to make most of their own decisions. Nadia is an example of a free-rein leader.

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

146) The corporate culture of an organization is typically shaped by employees rather than managers.

Difficulty: Easy

Learning Objective 1: 07-07: Discuss corporate culture.

Section Reference 1: Corporate Culture

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

147) Fortunately, corporate cultures remain constant throughout the course of a company’s existence.

Difficulty: Easy

Learning Objective 1: 07-07: Discuss corporate culture.

Section Reference 1: Corporate Culture

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

148) At a clothing store, new employees learn during their training that they are referred to as team members rather than workers, and that customers are called guests. This is an example of preserving corporate culture.

Difficulty: Medium

Learning Objective 1: 07-07: Discuss corporate culture.

Section Reference 1: Corporate Culture

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Application

149) Corporate culture often changes to meet new demands in the business environment.

Difficulty: Easy

Learning Objective 1: 07-07: Discuss corporate culture.

Section Reference 1: Corporate Culture

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

150) As a firm grows, its organizational structure will often become more complex.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

151) Not-for-profit organizations generally avoid organizing through formal structures.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

152) The process of dividing work into units within an organization is called departmentalization.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

153) Functional departmentalization occurs when work is organized by the different types of goods and services a company offers.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

154) Companies organized around business functions such as finance, marketing, and production have process departmentalization.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

155) A single company will follow only one departmentalization scheme.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

156) In many cases, a trend toward decentralization has pushed decision making down to operating employees.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

157) In a line organization, the chain of command is complex.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

158) Line departments participate directly in decision making while staff departments provide technical support, in a line-and-staff organization.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

159) In a committee organization, the ultimate responsibility is still held by one individual.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

Question Type: Essay

160) What are the differences among the three levels of management and their corresponding responsibilities?

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

161) Describe the three basic skills necessary for managerial success. Provide an example for each.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

162) Identify and briefly describe each of the management functions.

Difficulty: Easy

Learning Objective 1: 07-01: Define management.

Section Reference 1: What Is Management?

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

163) Describe the role of vision and ethical standards in business success.

Difficulty: Easy

Learning Objective 1: 07-02: Explain the role of setting a vision and ethical standards for a company.

Section Reference 1: Setting a Vision and Ethical Standards for the Company

Standard 1: AACSB || Ethics

Standard 2: Bloom’s || Knowledge

164) Differentiate strategic planning from tactical planning. Give an example of each type of planning.

Difficulty: Easy

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

165) Define operational planning. How is this different from strategic planning? Provide an example.

Difficulty: Easy

Learning Objective 1: 07-03: Summarize the importance of planning.

Section Reference 1: The Importance of Planning

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

166) Define mission statement. What are the qualities of an effective mission statement? Provide an example.

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

167) What is SWOT analysis? Explain its purpose in the strategic planning process.

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

168) Describe the final step in the strategic planning process. Provide an example.

Difficulty: Easy

Learning Objective 1: 07-04: Describe the strategic planning process.

Section Reference 1: The Strategic Planning Process

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

169) Identify an example of a programmed decision and a nonprogrammed decision.

Difficulty: Easy

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

170) List the steps involved in the decision-making process.

Difficulty: Easy

Learning Objective 1: 07-05: Discuss managers as decision makers.

Section Reference 1: Managers as Decision Makers

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

171) What are leadership and power? From which sources do managers generate their power?

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

172) Distinguish among autocratic, democratic, and free-rein leadership.

Difficulty: Easy

Learning Objective 1: 07-06: Evaluate managers as leaders.

Section Reference 1: Managers as Leaders

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension

173) Define corporate culture. Who is responsible for defining an organization’s corporate culture?

Difficulty: Easy

Learning Objective 1: 07-07: Discuss corporate culture.

Section Reference 1: Corporate Culture

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

174) Describe what is meant by span of management. Discuss the trend in determining span of management.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Knowledge

175) Compare the four types of organizational structures.

Difficulty: Easy

Learning Objective 1: 07-08: Identify organizational structures.

Section Reference 1: Organizational Structures

Standard 1: AACSB || Analytic

Standard 2: Bloom’s || Comprehension