Test bank for contemporary business 18th edition louis e boone david l kurtz susan berston

Test Bank for Contemporary Business, 18th Edition, Louis E. Boone David L. Kurtz Susan Berst

Test Bank for Contemporary Business, 18th Edition, Louis E. Boone David L. Kurtz Susan Berston To download the complete and accurate content document, go to: https://testbankbell.com/download/test-bank-for-contemporary-business-18th-edition-l ouis-e-boone-david-l-kurtz-susan-berston/

Visit TestBankBell.com to get complete for all chapters

Package Title: Chapter 7, Testbank Course Title: Boone, 18e Chapter Number: 7

Question type: Multiple Choice

1) _____ is the process of achieving organizational objectives through people and other resources. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: b Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

2) _____ includes positions such as CEO and CFO; devotes most of its time to developing long-range plans. a) corporate culture b) Management c) organization

d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: d Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

3) _____ include the ability to communicate with, motivate, and lead employees to complete assigned activities. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders

q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: q Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Communication Bloomcode: Knowledge 4) The _____ function evaluates an organization’s performance against its objectives. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: j Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

5) _____ is the perception of marketplace needs and the ways a company can satisfy them. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: f Difficulty: Easy Learning Objective 1: 7.2 Section Reference 1: Explain the role of setting a vision and ethical standards for a company.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

6) _____ allows a company to resume operations quickly and smoothly after a crisis while openly communicating with the public about what happened. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling

k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: n Difficulty: Easy Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Analytic Bloomcode: Knowledge 7) A(n) _____ is a written explanation of an organization’s business intentions and aims. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: r Difficulty: Easy

Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Analytic Bloomcode: Knowledge 8) A(n) _____ systematically evaluates a company’s strengths, weaknesses, opportunities, and threats. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: m Difficulty: Easy Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Analytic Bloomcode: Knowledge 9) Determining the unique combination of a company’s abilities and approaches is called _____. a) corporate culture b) Management c) organization d) Top management

e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: s Difficulty: Easy Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

10) A(n) _____ involves a complex and unique problem or opportunity with important consequences for an organization. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills

r) mission statement s) competitive differentiation t) Empowerment Answer: o Difficulty: Easy Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

11) People who make decisions on their own without consulting their subordinates are _____. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: p Difficulty: Easy Learning Objective 1: 7.6 Section Reference 1: Evaluate managers as leaders.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

12) _____ is the business concept in which employees share authority, responsibility, and decision making with their managers. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: t Difficulty: Easy Learning Objective 1: 7.6 Section Reference 1: Evaluate managers as leaders.

Standard 1: AACSB || Analytic Bloomcode: Knowledge 13) An organization’s system of principles, beliefs, and values is called _____. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization

l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: a Difficulty: Easy Learning Objective 1: 7.7 Section Reference 1: Discuss corporate culture.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

14) A(n) _____ is a structured group of people working together to achieve common goals. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: c Difficulty: Easy

Learning Objective 1: 7.8 Section Reference 1: Identify organizational structures.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

15) _____ is the process of dividing work activities into units within an organization. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: e Difficulty: Easy Learning Objective 1: 7.8 Section Reference 1: Identify organizational structures.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

16) The _____, or product management design, links employees from different parts of an organization to work together on specific projects. a) corporate culture b) Management c) organization d) Top management e) Departmentalization

f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: h Difficulty: Easy Learning Objective 1: 7.8 Section Reference 1: Identify organizational structures.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

17) The managerial process of assigning work to subordinates is called _____. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation

t) Empowerment Answer: g Difficulty: Easy Learning Objective 1: 7.8 Section Reference 1: Identify organizational structures.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

18) The number of employees a manager supervises is referred to as the _____. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: i Difficulty: Easy Learning Objective 1: 7.8 Section Reference 1: Identify organizational structures.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

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

b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: k Difficulty: Easy Learning Objective 1: 7.8 Section Reference 1: Identify organizational structures.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

20) A _____ is a hierarchy of managers and workers which lets everyone know who is in charge. a) corporate culture b) Management c) organization d) Top management e) Departmentalization f) Vision g) delegation h) matrix structure i) span of management j) controlling k) decentralization l) chain of command m) SWOT analysis n) Contingency planning

o) nonprogrammed decision p) autocratic leaders q) Human skills r) mission statement s) competitive differentiation t) Empowerment Answer: l Difficulty: Easy Learning Objective 1: 7.8 Section Reference 1: Identify organizational structures.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

Question Type: Essay

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

Answer: Solution: A company’s management usually has three levels: top, middle, and supervisory. Top managers make decisions such as whether to introduce new products, purchase other companies, or enter new geographical markets. Middle management, the second tier in the management hierarchy, is responsible for developing detailed plans and procedures to implement the firm’s strategic plans. Supervisors, or first-line managers, are responsible for assigning nonmanagerial people to specific jobs and evaluating their performance.

Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

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

Answer: Solution: The three basic skills are human skills, technical skills, and conceptual skills.

Human skills are interpersonal skills that enable managers to work effectively with and through people.

Human skills include the ability to communicate, build rapport, collaborate, motivate, and lead employees to meet organizational goals through individual and team assignments.

Human skills include effective communication using email, text messaging, voicemail, and videoconferencing. Technical skills are the manager’s ability to understand and use the techniques, knowledge, and tools and equipment of a specific discipline or department.

An example of a technical skill is a factory manager’s ability to effectively run each machine in his or her department in order to help employees. Conceptual skills determine a manager’s ability to see an organization as a unified whole and to understand how each part of the overall organization interacts with other parts. An example of a conceptual skill is a manager’s ability to sit down and plan an achievable goal for his or her company’s monthly sales.

Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Communication Bloomcode: Comprehension

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

Answer: Solution: The four management functions are planning, organizing, directing, and controlling. Planning is the process of anticipating future events and conditions and determining courses of action for achieving organizational objectives. Organizing is 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. Directing involves guiding and motivating employees to accomplish organizational objectives. The controlling function evaluates an organization’s performance against its objectives.

Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

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

Answer: Solution: Vision is perception of marketplace needs and the ways a company can satisfy them. Vision serves as the target for a company’s actions, helping direct the company toward opportunities and differentiating it from its competitors. Setting high ethical standards helps a firm survive and be successful over the long term. The ethical tone that a top management team establishes can reap monetary as well as nonmonetary rewards.

Setting a high ethical standard does not merely discourage employees from wrongdoing, but it motivates and inspires them to achieve goals they never thought possible. Such satisfaction creates a more productive, stable workforce—one that can create a long-term competitive advantage for the organization.

Difficulty: Medium Learning Objective 1: 7.2 Section Reference 1: Explain the role of setting a vision and ethical standards for a company.

Standard 1: AACSB || Ethics Bloomcode: Comprehension

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

Answer: Solution: Strategic planning is the most far-reaching level of planning. It is the process of determining the primary objectives of an organization and then acting and allocating resources to achieve those objectives. As customers use multiple channels for retail shopping, Home Depot has implemented a strategy called “interconnected retailing.” The company wants to create a seamless experience for customers—whether they browse online, open promotional e-mails on their smart phones, or visit brick-and-mortar locations in person. Tactical planning, by contrast, involves implementing the activities specified by strategic plans. Tactical plans guide the current and near-term activities required to implement overall strategies. As part of Home Depot’s strategy to create a multi-channel customer shopping experience, the company has introduced an optimized mobile redesign, which integrates location-based technology in smart phones.

Difficulty: Medium Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

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

Answer: Solution: Operational planning creates the detailed standards that guide implementation of tactical plans. This activity involves choosing specific work targets and assigning employees and teams to carry out plans. Unlike strategic planning which focuses on the organization as a whole, operational planning deals with developing and implementing tactics in specific functional areas. For example, if customers make purchases online and pick up or return merchandise to the retailer, the company will have to plan for additional

staffing in shipping and have separate customer service teams and different delivery strategies.

Difficulty: Medium Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

27) Define mission statement. What are the qualities of an effective mission statement?

Provide an example.

Answer: Solution: The first step in strategic planning is to translate a company’s vision into a mission statement. A mission statement is a written explanation of an organization’s business intentions and aims. It is an enduring statement of a company’s purpose, possibly highlighting the scope of operations, the market it seeks to serve, and the ways it will attempt to set itself apart from competitors. A mission statement guides the actions of employees and publicizes the company’s reasons for existence. A good mission statement states the company’s purpose for being in business and its overall goal. An example is Starbucks’ mission statement: Starbucks: “To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.”

Difficulty: Medium Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

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

Answer: Solution: SWOT is an acronym for strengths, weaknesses, opportunities, and threats. By systematically evaluating all four of these factors, a company can then develop the best strategies for gaining a competitive advantage. Strengths and weaknesses can be evaluated by examining each functional area of a company including finance, marketing, information technology, and human resources. Opportunities include new technologies, strategic alliances with vendors, new markets, and extension of existing products. Threats include changing consumer tastes, increased competition, sole sourcing, and new government regulations. A SWOT analysis isn’t carved in stone. Strengths and weaknesses, like opportunities and threats, may shift over time. A strength may eventually become a weakness, and a threat may turn into an opportunity. But the analysis gives managers a place to start.

Difficulty: Medium

Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

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

Answer: Solution: The final step in the strategic planning process is to monitor and adapt plans when the actual performance fails to meet goals. Monitoring involves securing feedback about performance. Managers might compare actual sales against forecasts; compile information from surveys; listen to customer feedback; interview employees who are involved; and review reports prepared by production, finance, marketing, or other company units. If a retailer observes customers buying more jeans when they are displayed near the front door, likely the display area will stay near the door—and perhaps be enlarged. Ongoing use of such tools as SWOT analysis and forecasting can help managers adapt their objectives and functional plans as changes occur.

Difficulty: Medium Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

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

Answer: Solution: Examples of programmed decisions include reordering office supplies, renewing a lease, and referring to an established discount for bulk orders. Examples of nonprogrammed decisions include entering a new market, deleting a product from the line, or developing a new product.

Difficulty: Medium Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

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

Answer: Solution: The decision-making process begins with recognizing a problem or opportunity,

developing alternative courses of action, evaluating alternatives, selecting and implementing the chosen alternatives, and conducting follow-ups to determine the effectiveness of the decision.

Difficulty: Medium Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

32) What is leadership and power? From which sources do managers generate their power?

Answer: Solution: Leadership involves the use of influence or power. This influence may come from one or more sources. One source of power is the leader’s position in a company. A national sales manager has the authority to direct the activities of the sales force. Another source of power is a leader’s expertise and experience. A first-line supervisor with expert machinist skills will most likely be respected by employees in the machining department.

Some leaders derive power from their personalities. Employees may admire a leader because they recognize an exceptionally kind and fair, humorous, energetic, or enthusiastic person.

Difficulty: Medium Learning Objective 1: 7.6 Section Reference 1: Evaluate managers as leaders.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

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

Answer: Solution: Autocratic leaders make decisions on their own without consulting employees.

They reach decisions, communicate them to subordinates, and expect automatic implementation. Democratic leadership includes subordinates in the decision-making process. Democratic leaders delegate assignments, ask employees for suggestions, and encourage participation. Free-rein leaders believe in minimal supervision. They allow subordinates to make most of their own decisions. A free-rein leader communicates with employees frequently, as the situation warrants.

Difficulty: Medium Learning Objective 1: 7.6 Section Reference 1: Evaluate managers as leaders.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

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

Answer: Solution: An organization’s corporate culture is its system of principles, beliefs, and values. The leadership style of its managers, the way it communicates, and the overall work environment influence a company’s corporate culture. Corporate culture is typically shaped by the leaders who founded and developed the company and by those who have succeeded them.

Difficulty: Easy Learning Objective 1: 7.7 Section Reference 1: Discuss corporate culture.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

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

Answer: Solution: The span of management, or span of control, is the number of employees a manager supervises. These employees are often referred to as direct reports. In recent years, a growing trend has brought wider spans of control, as companies have reduced their layers of management in order to flatten their organizational structures, in the process increasing the decision-making responsibility they give employees.

Difficulty: Easy Learning Objective 1: 7.8 Section Reference 1: Identify organizational structures.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

36) Compare the four types of organizational structures.

Answer: Solution: A line organization establishes a direct flow of authority from the chief executive to employees. The line organization defines a simple, clear chain of command —a hierarchy of managers and workers. In a small organization such as a local hair salon or a dentist’s office, a line organization is probably the most efficient way to run the business. Conversely, a line-and-staff organization combines the direct flow of authority of a line organization with staff departments that support the line departments. The third

organizational structure is the committee organization, which places authority in the hands of a group of individuals rather than a single manager. This model typically appears as part of a regular line-and-staff structure. Finally, the matrix structure links employees from different parts of the organization to work together on specific projects.

Difficulty: Medium Learning Objective 1: 7.8 Section Reference 1: Identify organizational structures.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

Question type: Multiple Choice

37) _____ are most likely to make decisions regarding the purchase of other companies. a) General managers b) First-line managers c) Supervisors d) Top managers Answer: d Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

38) _____ is the process of achieving organizational objectives through people and other resources. a) Management b) Mission statement c) Planning d) Delegation Answer: a Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

39) 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 Answer: b Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

40) 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.

Answer: d Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

41) 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 Answer: c

Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

42) Most top executives started out as a) technical experts. b) chartered accountants. c) human relations executives. d) marketing professionals.

Answer: a Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Application

43) Malik is a manager at Boardwalk Inc. He develops plans for the company based on its objectives and proceeds to organize by dividing tasks among employees. In the context of the four basic managerial functions, which of the following should be Malik’s immediate step? a) Translating the company’s vision into a mission statement b) Guiding and motivating employees to accomplish the company’s objectives c) Guiding the near-term activities required to implement overall strategies d) Comparing the company’s actual performance with the established standards Answer: b Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

44) 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.

Answer: c Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Communication Bloomcode: Comprehension 45) 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 Answer: d Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

46) 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 Answer: a Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Communication

Bloomcode: Application

47) 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 Answer: a Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

48) 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 Answer: d Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

49) 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

Answer: c Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

50) 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 Answer: c Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

51) 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 Answer: b Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

52) 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 Answer: a Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

53) 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 Answer: a Difficulty: Medium Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

54) 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 Answer: c

Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge 55) Which of these evaluates an organization’s performance against its objectives? a) Directing b) Controlling c) Organizing d) Planning Answer: b Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge 56) 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 Answer: b Difficulty: Easy Learning Objective 1: 7.1 Section Reference 1: Define management.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

57) _______ 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 Answer: c Difficulty: Medium Learning Objective 1: 7.2 Section Reference 1: Explain the role of setting a vision and ethical standards for a company.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

58) Marina strongly believes that freshmen need credit counseling, so she begins a notfor-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 Answer: c Difficulty: Medium Learning Objective 1: 7.2 Section Reference 1: Explain the role of setting a vision and ethical standards for a company.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application 59) A company’s vision should be _____ and _____. a) rigid; focused b) rigid; broad c) focused; flexible d) flexible; broad Answer: c Difficulty: Easy Learning Objective 1: 7.2 Section Reference 1: Explain the role of setting a vision and ethical standards for a company.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

60) ______ 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 Answer: b Difficulty: Easy Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

61) 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 Answer: c Difficulty: Hard Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

62) 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

Answer: c Difficulty: Medium Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

63) Which planning involves implementing the activities specified by strategic plans? a) Incident b) Tactical c) Exigency d) Contingency Answer: b Difficulty: Easy Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

64) Which planning guides the current and near-term activities required to implement overall strategies? a) Contingency b) Tactical c) Strategic d) Operational Answer: b Difficulty: Easy Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

65) 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 Answer: c Difficulty: Medium Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

66) 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 Answer: a Difficulty: Medium Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

67) Ehshan sets the deadlines for an upcoming project. This depicts _____ planning. a) operational b) tactical c) strategic d) contingency Answer: a Difficulty: Medium Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

68) 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 Answer: c Difficulty: Easy Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

69) 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 Answer: d Difficulty: Medium Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

70) 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 Answer: a

Difficulty: Medium Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

71) 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 Answer: c Difficulty: Medium Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

72) Tactical planning is primarily the responsibility of _____. a) middle managers b) supervisory managers c) first-line managers d) top management executives Answer: a Difficulty: Easy Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

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

b) strategic c) operational d) contingency Answer: c Difficulty: Easy Learning Objective 1: 7.3 Section Reference 1: Summarize the importance of planning.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

74) 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.

Answer: a Difficulty: Easy Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

75) 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 Answer: c Difficulty: Easy Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

76) Diego is part of a strategic planning team. He has identified that his company is a lowcost producer in its industry. This should be listed on a SWOT analysis as a(n) _____. a) threat b) weakness c) opportunity d) strength Answer: d Difficulty: Medium Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

77) 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.

Answer: a Difficulty: Medium Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

78) 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.

Answer: a

Difficulty: Medium Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

79) Which of these set guideposts by which managers define an organization’s desired performance? a) Mission statements b) Standards c) Opportunities d) Objectives Answer: d Difficulty: Medium Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Analytic Bloomcode: Knowledge 80) 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.

Answer: b Difficulty: Medium Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Reflective Thinking Bloomcode: Comprehension

81) 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.

Answer: a Difficulty: Medium Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Analytic Bloomcode: Comprehension 82) 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 Answer: c Difficulty: Easy Learning Objective 1: 7.4 Section Reference 1: Describe the strategic planning process.

Standard 1: AACSB || Reflective Thinking Bloomcode: Knowledge

83) Decisions involving simple, common, frequently occurring problems for which solutions have already been determined are _____ decisions. a) nonprogrammed b) programmed c) creative d) strategic Answer: b Difficulty: Easy Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

84) 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.

Answer: a Difficulty: Medium Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

85) 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.

Answer: c Difficulty: Medium Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

86) 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 Answer: a

Difficulty: Medium Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

87) 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.

Answer: c Difficulty: Medium Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

88) 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.

Answer: b Difficulty: Medium Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

89) 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.

Answer: c Difficulty: Medium Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

90) 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.

Answer: b Difficulty: Medium Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

91) 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.

Answer: c Difficulty: Medium Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

92) 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.

Answer: a Difficulty: Medium Learning Objective 1: 7.5 Section Reference 1: Discuss managers as decision makers.

Standard 1: AACSB || Reflective Thinking Bloomcode: Application

93) Which of these is the ability to direct or inspire people to attain certain goals? a) Flexibility b) Planning c) Empowerment d) Leadership Answer: d Difficulty: Easy Learning Objective 1: 7.6 Section Reference 1: Evaluate managers as leaders.

Standard 1: AACSB || Analytic Bloomcode: Knowledge

94) 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.

Answer: c Difficulty: Medium Learning Objective 1: 7.6 Section Reference 1: Evaluate managers as leaders.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

95) 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.

Answer: d Difficulty: Medium Learning Objective 1: 7.6 Section Reference 1: Evaluate managers as leaders.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

96) 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.

Answer: a Difficulty: Medium Learning Objective 1: 7.6 Section Reference 1: Evaluate managers as leaders.

Standard 1: AACSB || Analytic Bloomcode: Comprehension

97) 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.

Answer: c Difficulty: Medium