BUS 195 EXAM 1 CH. 4
A limitation of financial ratios is the fact that they are based on accounting data
TRUE
A ritual is a standardized set of behaviors used to manage anxieties.
TRUE
According to William King, a task force of managers from different units of the organization should be charged with determining the 20 most important strengths and weaknesses that should influence the future of the organization.
TRUE
Activity ratios measure how effectively a firm is using its resources.
TRUE
An organization's culture compares to an individual's personality in the sense that no two organizations have the same culture and no two individuals have the same personality.
TRUE
Benchmarking is an analytical tool used to determine whether a firm's value chain activities are competitive compared to rivals.
TRUE
Cultural products include values, beliefs, stories, and language.
TRUE
During the 2015 Superbowl, a 30 second advertisement cost over $4 million.
TRUE
Four common approaches to determine R&D budget allocations are: 1.) finance as many project proposals as possible 2.) use a percentage-of-sales method 3.) budget for R&D about what competitors spend 4.) decide how many successful new products are needed and work backwards to estimate the required R&D investment
TRUE
Marketing research is the systematic gather, recording and analyzing, of data about problems relating to the marketing of goods and services.
TRUE
The Internal Factor Evaluation Matrix should use a total of 20 internal factors.
TRUE
The basic premise of the research-based view is that the mix, type, amount, and nature of a firm's internal resources should be considered first and foremost in devising strategies that can lead to sustainable competitive advantage.
TRUE
The idea that paying dividends results in a higher stock price is a myth.
TRUE
The purpose of organizing is to achieve coordinated effort by defining task and authority relationships
TRUE
There are seven basic functions of marketing: customer analysis, selling products and services, product and service planning, pricing, distribution, marketing research, and opportunity analysis.
TRUE
Value chain analysis can enable a firm to better identify its own strengths and weaknesses especially as compared to competitors' value chain analyses and their own data over time.
TRUE
The IFE Matrix should be _____ in multi-divisional firms. a.) constructed for each autonomous division b.) all-inclusive c.) constructed only for the major divisions d.) developed before the EFE Matrix e.) revised monthly
a.) constructed for each autonomous division
Organizational resources include all of the following EXCEPT: a.) employee training b.) firm structure c.) planning processes d.) information systems e.) copyrights
a.) employee training
The ___________ decision is the allocation and reallocation of capital and resource to projects, products, assets, and divisions of an organizations. a.) investment b.) dividend c.) financing d.) restructuring e.) benchmark
a.) investment
Pricing is one of the basic functions of a.) marketing b.) finance/accounting c.) management information systems d.) productions/operations e.) research and development
a.) marketing
All of the following are basic functions of marketing EXCEPT: a.) value chain analysis b.) customer analysis c.) product and service planning d.) pricing e.) distribution
a.) value chain analysis
Life-directing attitudes that serve as behavioral guidelines are called a.) values b.) rites c.) beliefs. d.) metaphors e.) legends
a.) values
The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called a.) the Resource-Based Approach b.) Value Chain Analysis c.) Strategic Cost Analysis d.) The Internal Factor Evaluation Matrix e.) Cost-Benefit Analysis
b.) Value Chain Analysis
A firm's strengths that cannot be easily matched or imitated by competitors are called a.) internal audits b.) distinctive competencies c.) external audits d.) interrelated properties e.) internal properties
b.) distinctive competencies
What category of ratios measures a firm's ability to meet its short-term obligations? a.) profitability b.) liquidity c.) leverage d.) activity e.) growth
b.) liquidity
Which function of management is concerned with span of control and chain of command? a.) planning b.) organizing c.) controlling d.) staffing e.) motivating
b.) organizing
What is the essential bridge between the present and the future that increases the likelihood of achieving desired results? a.) motivating b.) planning c.) controlling d.) staffing e.) organizing
b.) planning
Which of the following does the text call an up-front investment in success? a.) planning b.) organizing c.) motivating d.) staffing e.) organizing
b.) planning
Metaphors are a.) several rites connected together b.) shorthand of words used to capture a vision or to reinforce old or new values c.) narratives based on true events d.) fictional stories e.) any objects, acts, events, qualities, or relations used to convey meaning
b.) shorthand of words used to capture a vision or to reinforce old or new values
If total fixed costs are $100,000, variable costs per unit are $5, and the price per unit is $15, what is the break-even quantity? a.) 500 b.) 667 c.) 1,000 d.) 2,000 e.) 5,000
c.) 1,000
_____ exemplifies the complexity of relationships among the functional areas of business a.) Government auditing b.) External auditing c.) Financial ratio analysis d.) Environmental scanning e.) Distribution strategy
c.) Financial ratio analysis
Which is NOT one of the four common approaches to determine R&D budget allocations? a.) Finance as many project proposals as possible b.) Budget for R&D about what competitors spend c.) Use a percentage-of-costs method d.) Decide how many successful new products are needed and work backwards to estimate the required R&D investment e.) Use a percentage-of-sales method
c.) Use a percentage-of-costs method
Staffing involves all of these activities EXCEPT: a.) recruiting employees b.) rewarding employees c.) analyzing customers d.) managing union relations e.) training and developing employees
c.) analyzing customers
Distribution includes a.) customer analysis b.) pricing c.) warehousing d.) advertising e.) test marketing
c.) warehousing
Allocating resources is one of the five basic activities (functions) performed by managers.
FALSE
Financial ratios are not applicable to nonprofit organizations.
FALSE
In most industries, only minor costs of producing a product or service are incurred within operations, so production and operations does not have great value as a competitive weapon in a company's overall strategy.
FALSE
Most producers today sell their goods directly to consumers.
FALSE
Opportunities are a firm's distinctive competencies that cannot be easily matched or imitated by competitors.
FALSE
Organizing is the cornerstone of effective strategy formulation.
FALSE
Research and Development (R&D) Management is focused on managing inputs, transformations, and outputs that vary across industries and markets.
FALSE
Successful strategy formulation generally rests upon the ability of an organization to sell some product or service.
FALSE
Technology ties all business functions together and provides the basis for all managerial decisions.
FALSE
Test marketing is used more frequently by industrial companies than consumer goods companies.
FALSE
The management function or organizing is included in human resource management.
FALSE
The total assets turnover ratio is calculated by dividing sales by fixed assets.
FALSE
While interesting, organizational culture does not significantly affect business decisions.
FALSE
A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel is called a.) dysfunctional behavior b.) group think c.) behavior modification d.) organizational culture e.) internal audit effect
d.) organizational culture
What marketing function includes test marketing? a.) selling products and services b.) pricing c.) customer analysis d.) product and service planning e.) distribution
d.) product and service planning
_____ management deals with inputs, transformations, and outputs that vary across industries and markets a.) marketing b.) financial c.) research and development d.) production and operations e.) information systems
d.) production and operations
A standardized set of behaviors used to manage anxieties is called a a.) folktale b.) rite c.) metaphor d.) ritual e.) value
d.) ritual
_____ is a commonly used approach to determine R&D budget allocation a.) Financing as many project proposals as possible b.) Using a percentage-of-sales method c.) Budgeting for R&D about what competitors spend d.) Deciding how many successful new products are needed and working backward to estimate that required R&D investment e.) All of the above
e.) All of the above
An effective information management system ____ information in such a way that it answers important operating and strategic questions. a.) collects b.) codes c.) stores d.) synthesizes e.) all of the above
e.) all of the above
Synergy a.) is the 2 + 2 = 5 effect b.) can result in powerful competitive advantages c.) can be developed by an organization through planning d.) exists when everyone pulls together as a team that knows what it wants to achieve e.) all of the above
e.) all of the above
What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry? a.) profitability b.) liquidity c.) leverage d.) revenue growth e.) growth
e.) growth
Which ratio is calculated by dividing profits before interest and taxes by total interest charges? a.) inventory turnover b.) fixed assets turnover c.) total assets turnover d.) debt-to-equity ration e.) times-interest-earned ratio
e.) times-interest-earned ratio
