Test Questions & Answers Ch6 The Nature Of Management - Business Foundations Changing World 11e Complete Test Bank by O. C. Ferrell. DOCX document preview.
Chapter 06
The Nature of Management
True / False Questions
1. | Management takes place only in business settings. |
2. | For any company, owners and shareholders are the only sources of primary funding. |
3. | Planning involves forecasting events and determining the best course of action from a set of options or choices. |
4. | Top-level managers make an organization's strategic decisions that focus on a key idea for using resources in order to take advantage of opportunities. |
5. | The first step in the decision-making process is developing options directly. |
Multiple Choice Questions
6. | _____ make decisions about the use of an organization's resources and are concerned with planning, organizing, directing, and controlling the organization's activities.
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7. | Gwendolyn manages a resort boutique. Her goal is to run this business in such a way that she achieves the desired result, making a profit and providing her customers with the items they need to enjoy their vacation. Thus, her primary managerial concern is
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8. | If a manager is concerned about doing the work with the least cost and waste possible, then his or her primary managerial concern is
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9. | Marilyn is a manager at a large accounting firm. The firm is expanding, and she is tasked with hiring more people to carry out the organization's increased workload. She must determine all of the following items EXCEPT
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10. | Hiring people to carry out the work of an organization is known as
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11. | Nathan is a manager at a company that has made the difficult decision to downsize. After his company eliminated 100 employees, what must Nathan do to effectively manage his remaining employees and help them through the situation?
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12. | The Furniture Warehouse, a large furniture company, wants to make sure its products are always available to customers. Since this company sells many products, including beds, patio sets, dining room tables and chairs, couches and recliners, tables, dressers, rugs, and decorative accents, it will need many diverse _____ to maximize efficiencies and provide creative solutions to help the company reduce expenses and reach its objectives.
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13. | Managers need adequate _____ resources to pay for essential activities.
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14. | To earn a profit, managers must acquire, coordinate, and control all of the following resources EXCEPT
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15. | Determining an organization's objectives and deciding how to accomplish them, a management function, is known as
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16. | Melanie is one of the senior managers in the consumer electronics department of a large company. She is part of a team that determines the objectives of the department based on future trends in the industry and decides how to accomplish them. Melanie is involved in the management function of
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17. | Which of the following is the first function of management?
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18. | Megan manages an online clothing store. She must determine what her company's warehouses and distributing facilities need and which type of automation can maximize order efficiency. What major phase of the planning process does this example describe?
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19. | The plan itself specifies all of the following EXCEPT
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20. | Before an organization can plan a course of action, it must first
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21. | A declaration of an organization's fundamental purpose and basic philosophy is known as a(n)
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22. | Carrie started her own catering business. She created a website for her business, which states that her purpose is to provide her customers with delicious food at a fair price. This declares her
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23. | Cameron started his own photography business. He wants to write a good mission statement that explains his company's reason for existence. What is one guideline he should follow in writing his mission statement?
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24. | Which of the following statements is true of a mission statement?
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25. | Which of the following questions does the mission statement of an organization seek to answer?
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26. | Which of these basic questions will be answered by a well-developed mission statement?
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27. | Nolan's jewelry business has grown from a small startup in his room to a chain of outlets all over the country. His business has the potential to expand further, provided he has the resources. To attract investors and other resources, he is required to create a mission statement for his company. If he highlights that his gems come from countries with fair labor practices, which basic question of a well-developed mission statement is he addressing?
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28. | Jamal owns a surf shop in Hawaii. His business is doing well, catering to local surfers and tourists who want to learn to surf. He has developed a strong organizational culture, a good marketing plan, and a coherent business strategy. What serves as the foundation for developing these strengths?
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29. | A(n) _____ is best described as the result that a firm wishes to achieve.
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30. | In the context of company goals, which of the following is an effective practice?
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31. | Which of the following statements is true of the goals of a company?
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32. | Harlan's hot dog stand wants to earn a profit and satisfy its customers. As a result, it has developed several signature hot dogs that use quality ingredients and mix inventive flavors. What key component of a goal is this example most closely related to?
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33. | In the context of a business's objectives, which of the following is an ineffective practice?
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34. | _____ are the ends or results desired by an organization that are derived from the organization's mission.
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35. | The principal difference between objectives and goals is that
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36. | Stephanie's candy store has profit as an objective. As a result, she wants to have
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37. | Which of the following objectives are generally stated in terms of percentage of sales increase and market share, with the goal of increasing those figures?
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38. | Growth objectives essentially relate to
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39. | Kendall's fitness company wants to make the best use of its resources. As a result, she hired college students to work at the front desk, so her personal trainers can focus on helping members in the gym and teaching fitness classes. What type of objective is the most relevant to this example?
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40. | Sugar and Spice, a large candy store, has historically sold a lot of chocolate and gummy candies. However, over the years, people have become more health conscious. As a result, Sugar and Spice developed a new line of sugar-free candies that taste as good as the original, but without the guilt. What type of objective does this exemplify?
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41. | Which of the following provides direction for all managerial decisions and establishes criteria for evaluating performance within organizations?
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42. | The top management of Dusk Automobiles Inc. has decided that the company's objective for the next two years will be to expand the overall business internationally. This is an example of
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43. | EduPub, a large educational publisher, decided to sell its college division because it isn't as profitable as the school division. This will allow the company to focus its efforts and funds on becoming the leading school publisher. What type of plan is this?
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44. | _____, a type of plan for meeting objectives, establish the long-range objectives and the overall course of action by which a firm fulfills its mission.
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45. | How long a time period do strategic plans generally cover?
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46. | The top management of New 18 Apparels Inc. has decided to set up an online store to cater to the changing business environment and reach out to the Asian market. The management has also identified that the success of the company will depend on its ability to create and develop new products and processes in the next two years. This is an example of
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47. | All of the following are true of strategic plans EXCEPT they
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48. | Tactical plans usually cover a period of
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49. | Which of the following is a difference between strategic and tactical plans?
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50. | Short-range plans covering a period of one year or less that are designed to implement the activities and objectives specified in an organization's strategic plan are referred to as
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51. | Which of the following statements is true of tactical plans?
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52. | Which of the following is an effective practice with regard to tactical plans?
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53. | Floors and Fixtures, a home improvement store, is planning to expand and open four new stores, one each year. As a result, it develops four separate plans to determine how much to spend on each store as well as when and where to open each store. These are _____ plans.
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54. | _____ are very short-term plans that specify what actions individuals, work groups, or departments need to accomplish in order to achieve an organization's tactical plan and ultimately the strategic plan.
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55. | Xtreme Toys, a company that manufactures toys inspired by popular video games, creates a strategic plan to be the leader in the product category within a period of three years. The company's middle management also creates a half-yearly plan to ensure that the objectives of the strategic plan are properly implemented. The half-yearly plan created by Xtreme Toys can be regarded as a(n)
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56. | The top management of XSports Autos Inc. creates a strategic plan to enter new product markets within a period of five years. The company's middle management creates half-yearly plans to ensure that the objectives of the strategic plan are properly implemented. Along with these plans, each department creates short-term plans that specify the actions to be taken by specific employees and teams to meet the objectives of the strategic plan and the half-yearly plans. These short-term plans established at the departmental level are referred to as
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57. | Happy Trails, a trail mix store, is planning to expand its business by opening several new stores over the course of four years. Within this strategic plan, all of the following are items operational plans may specify EXCEPT the schedule for
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58. | Which of the following is an example of an operational plan?
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59. | Crisis management plans generally cover maintaining business operations during a crisis and
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60. | _____ is an element in planning that deals with potential disasters such as product tampering, oil spills, fire, earthquake, computer viruses, or a reputation crisis.
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61. | Bigbag.com, a leading online retailer, uses the services of Data Safe Inc., a small startup that helps companies manage and keep their electronic data safe. This helps Bigbag.com keep a backup of its proprietary information in case of virus attacks or any sort of damage to property. This is an example of
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62. | A huge fire broke out in Rustic Rooms, a small rustic furniture store. The fire destroyed all of the furniture, and ultimately, the company went out of business. Which of the following is most likely the reason this company went out of business?
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63. | Which of the following is true regarding crisis management?
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64. | Dividing work into small units and assigning it to specific individuals is a task related to the management function of
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65. | Paul manages a large technology company. One of his roles is structuring the company's resources and activities to accomplish its objectives efficiently and effectively. What management function does this example pertain to?
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66. | Which of the following statements is true of the management function of organizing?
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67. | Harold's kitchen appliance company is reorganizing for greater efficiency. How would this company most likely organize the work?
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68. | All of the following are reasons organizing is important EXCEPT it
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69. | Martin owns a large moving company. Over the years, the market has changed, and Martin has had to adapt how he structures his resources and activities to continue to accomplish his business objectives efficiently and effectively. What does this scenario demonstrate?
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70. | Providing incentives to employees to motivate them toward achieving organizational objectives relates to the management function of
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71. | Which of the following is true of the management function of directing?
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72. | Bernadette manages workflow at a newspaper. She sets and implements the deadlines and encourages the writers and editors to do their work. What managerial function is Bernadette fulfilling?
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73. | Christopher manages a fitness club, which hires many younger, college-aged employees. He has tried several incentive plans to motivate them to work harder, including promising raises, promotions, and bonuses. However, he has found that his employees need further motivation. He set up a meeting with a few of his employees and they explained to him that they want more than money from their jobs. Christopher can do all of the following to motivate his employees EXCEPT
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74. | _____ is the process of evaluating and correcting activities to keep an organization on course.
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75. | When Betsy informed her supervisor that the furniture assemblers at their manufacturing plant were using 20 percent more raw materials in the current month when compared to the preceding months, she was involved in the management function of
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76. | For an organization, the first step in the management function of controlling is to
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77. | Jill manages a fast food restaurant. One day, while sitting in the restaurant taking her break, she hears a group of customers complaining about how slow the service has been getting and that they may have to stop eating there. Which of the following is the most effective control action Jill can take to resolve the problem?
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78. | In businesses, _____ include the president and other top executives, such as the chief executive officer, chief financial officer, and chief operations officer, who have overall responsibility for an organization.
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79. | In an organization, decisions regarding adding new products, acquiring companies, and moving into foreign markets would most typically be made by
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80. | Kevin is a top-level manager at an advertising firm. He has many years of varied experience and he spends most of his time making strategic decisions about how to use the company's resources. On which management function does he spend most of his time?
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81. | Dawn manages a small coffee house. In fact, this business is so small that Dawn is the only manager. What level manager is Dawn?
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82. | Which of the following is true of top management compensation?
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83. | Claudia is a manager at a large technology company. Since her company wants to serve consumers from fast-growing demographic groups such as Hispanics, African Americans, and Asian Americans, she wants to hire employees from those groups to help make decisions regarding issues related to consumer diversity. All of the following are rules she should follow in diversity recruiting EXCEPT
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84. | _____ are responsible for tactical and operational planning that will implement the general guidelines established by top management.
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85. | The specific operations of an organization, plant, division, or department would most typically involve the _____ of the company.
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86. | Which of the following has been a recent trend with regard to the different levels of management within an organization?
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87. | Stella manages the computer department at Mega Tech, Inc. She helps the organization implement its general guidelines by managing the specific operations related to her department. Stella is a
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88. | Positions such as foremen, supervisors, and office service managers are a part of the _____ of a company.
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89. | Most people get their initial managerial experience as _____, those who supervise workers and the daily operations of an organization.
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90. | Brian is a manager at a clothing store. He spends most of his time in the store with his employees, making sure they work their scheduled hours, watching them interact with customers, and making sure all the daily tasks are completed sufficiently. Brian is a
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91. | Janet works as a manager at Unicorn Infra Inc. Janet and her team members are primarily responsible for procuring the funds needed for the successful operation of the organization and investing that money to pursue organizational goals. Thus, Janet is a
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92. | George is a bank manager. He manages the activities of an entire branch without specializing in any one particular function. Thus, George is a(n)
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93. | Production and operations managers are concerned with
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94. | Corbin is a marketing manager for a large textbook publisher. What is his primary responsibility?
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95. | Lara was less educationally qualified and experienced than her colleagues when she joined Aurora Systems Inc. However, due to her ability to negotiate effectively with clients, convince her team members to work harder, and understand their needs, she is a senior-level manager today. Which of the following skills can be most attributed to Lara's success in this scenario?
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96. | Marah is a manager at a law firm. Part of her role is conducting performance reviews for the paralegals in the office. By doing so, she is fulfilling the managerial role of a
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97. | Carl is a manager of a large car dealership. He often meets with consumer groups to discuss the safety features of the company's cars. When he does this, he is acting as a
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98. | _____ refer to the ability of an individual to think in abstract terms and to see how parts fit together to form the whole.
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99. | Jasper is a first-line manager at a heating and HVAC company. Although he no longer goes out to customers' homes and does their repairs, since he worked in the field for over 20 years, he is able to train employees, answer questions, provide guidance, and solve problems. These abilities most closely describe his
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100. | Landon is interviewing for a position at a law firm. In the interview, he is asked: "How would you resolve the issue of successfully arguing a case in which you disagree with our client's position?" Answering this question requires Landon to use
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101. | EduTech is a publisher that provides high quality digital educational products to instructors and students. When new employees are hired, they must attend extensive trainings and demos of the company's products to learn about their functionality and the customers' experience with the products. Annually, the company sends all its employees and managers on a retreat to take mandatory classes on customer relations and office leadership that address skills related to listening, consistent communication, and handling change without compromising values. This scenario is most closely related to developing
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102. | Which of the following is a feature of democratic leadership?
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103. | The _____ style of leadership can be a powerful motivator because it demonstrates a great deal of trust and confidence in an employee and allows employees to meet their work demands with little or no interference.
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104. | Carlos is a manager at a men's clothing store. He is very particular about how things are done, right down to how the shirts are folded and the positioning of the mannequins. He uses his authority and economic rewards to get his employees to comply with his directions. What type of manager is Carlos?
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105. | Which of the following is true regarding choosing the appropriate style of leadership for a company?
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106. | Which of the following statements is true of authentic leaders?
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107. | Which of the following statements is true of employee empowerment?
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108. | _____ occurs when employees are provided with the ability to take on responsibilities and make decisions about their jobs.
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109. | Clink, a new bar and restaurant, encourages its employees and managers to participate in creating its specialty drinks and menu items. This is an example of
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110. | Audio Xperience, a stereo and audio electronics company, encourages its employees to work together to make decisions that reinforce the company's mission and values. Each employee brings his or her own unique insights, and by discussing these insights with other employees, they collectively develop innovative ideas or decisions that most likely would not have been reached by one or two people. This scenario explains
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111. | Which of the following is the first step in decision making?
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112. | Managers at Sprocket Inc. have recognized declining sales on their water purifier and must decide what has to be done to improve it. Which of the following would be their next step?
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113. | When selecting the best option among a series of possible decisions
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114. | Gerald is assessing the appropriateness of a proposed option to resolve his publishing company's plagiarism issue. When considering the consequences of the option, he should
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115. | When analyzing options in the decision-making process, managers must consider the appropriateness and _____ of each option.
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116. | Brenda manages a flower shop. Recently, the flower shop has had trouble competing with the local grocery store's florist. Brenda wants to develop a list of possible courses of action to draw more customers to her shop, so she gathers her team. They discuss the issue and suggest ideas to solve the problem. This is called
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117. | Maddie's pet store has decided to abandon one of its dog food brands. To implement this decision, Maddie must do all of the following EXCEPT
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118. | Which of the following best describes the importance of monitoring the consequences of decisions?
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119. | A(n) _____ is like a calendar, containing both specific and vague items, that helps a manager figure out what must be done and how to get it done to meet the objectives set by an organization.
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120. | Which of the following refers to the process of building relationships and sharing information with colleagues who can help a manager achieve the items on his or her agenda?
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121. | _____ is used for job networking and is gaining in popularity among the younger generation as an alternative to traditional job hunting.
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122. | Karen manages a large carpet cleaning company. She spends a lot of time communicating with a variety of people and participating in activities that do not seem to have much to do with goals of her company. What is this called?
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123. | All of the following are challenges managers confront in the business world today EXCEPT
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Essay Questions
124. | What is management?
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125. | What are some of the skills needed by managers?
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126. | How are managers classified on the basis of their leadership styles?
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Document Information
Connected Book
Business Foundations Changing World 11e Complete Test Bank
By O. C. Ferrell
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