MAN3025 Ch. 1-5

Which of the following is a type of corporate-level strategy? a. Focus strategy b. Differentiation strategy c. Single-product strategy d. Overall cost leadership strategy

c. Single-product strategy

According to the BCG matrix, _____ are businesses that have a very small share of a market that is not expected to grow. a. cash cows b. dogs c. question marks d. stars

b. dogs

When the president of Smithson Corp. proposed a new product for launch, his board of directors readily accepted his proposition without considering the risks. This is an example of _____. a. satisficing b. groupthink c. the Delphi procedure d. a coalition

b. groupthink

An organizational culture: a. invariably emerges from a company's customers. b. helps members understand what the company stands for. c. is always the same throughout an entire organization. d. is universal across all organizations.

b. helps members understand what the company stands for.

Culture problems can arise from: a. corporate success. b. mergers. c. shared experiences. d. a sense of direction.

b. mergers.

Which of the following is false about control systems? a. Weak control systems can lead to serious problems. b. Effective control systems alert entrepreneurs to serious problems. c. Control systems are not needed to keep a business on track. d. A business may not survive without a good control system

c. Control systems are not needed to keep a business on track.

Which of the following is the final step in the rational decision-making process? a. Implementing the chosen alternative b. Selecting the best alternative c. Evaluating the results d. Identifying alternatives

c. Evaluating the results

is a major factor in nonprogrammed decisions. a. Frequency b. Structure c. Intuition d. Identifying alternatives

c. Intuition

Which of the following statements is true of a coalition? a. Its purpose is to search for the first best alternative that meets some minimum standard. b. It is a formal alliance of two parties. c. It is formed to achieve a common goal. d. It is an alliance of individuals alone and not groups.

c. It is formed to achieve a common goal.

Which of the following is a disadvantage of a strategic alliance? a. It involves a small cash outlay. b. It involves the least degree of risk. c. It limits profits and control over a business. d. It does not allow for a quick market entry.

c. It limits profits and control over a business.

Which of the following is true of a standard operating procedure? a. It is a single-use plan. b. It is developed to carry out a course of action that is not likely to be repeated. c. It outlines the steps to be followed in particular circumstances. d. It specifies an organization's general response to a designated problem.

c. It outlines the steps to be followed in particular circumstances.

Lana, owner of a high-end boutique, claims she selects items for her boutique purely on a hunch. Based on Lana's claim, which of the following is true of Lana's decision making? a. Lana satisfices. b. Lana uses the Delphi technique. c. Lana uses intuition. d. Lana uses bounded rationality.

c. Lana uses intuition.

Which industry is home to the most small businesses in terms of a percentage of total companies? a. Transportation b. Wholesaling c. Services d. Manufacturing

c. Services

Which of the following is true of a state of uncertainty? a. The decision maker does not know all the alternatives. b. The decision maker knows about all the risks involved. c. There is a low degree of ambiguity and chances of making a bad decision. d. The availability of each alternative is associated with probability estimates.

a. The decision maker does not know all the alternatives.

Which of the following is true of strategic plans? a. They address questions of competitive advantage and synergy. b. They have a short time horizon. c. They are developed by middle- and lower-level managers d. They have specific and concrete focus.

a. They address questions of competitive advantage and synergy.

Which of the following is true of firms that successfully implement a differentiation strategy? a. They are able to charge more than competitors. b. They focus on quantity over quality. c. They reduce their costs below costs of competing firms. d. They benefit when consumers avoid higher-priced products.

a. They are able to charge more than competitors.

Which of the following statements is untrue regarding small business? a. Small businesses do not possess the sales and/or assets necessary to substantially impact its environment. b. Entrepreneurs are unable to generate high incomes running small businesses. c. Small businesses are owned by one individual or a small group of individuals. d. The majority of new businesses fail within the first few years of being founded.

b. Entrepreneurs are unable to generate high incomes running small businesses.

Which of the following is NOT part of the proper execution of tactical plans? a. Integration of activities b. Inconsistent activities c. Horizontal and vertical communication d. Minimizing conflict

b. Inconsistent activities

Which of the following statements on job creation is true? a. Larger firms hire at a faster rate than smaller firms. b. Large companies are the last to lay off workers during economic downswings. c. Business size, more than entrepreneurial business success, accounts for most new job creation. d. Small firms are the last to hire in times of economic recovery.

b. Large companies are the last to lay off workers during economic downswings.

Which of the following is a Theory X assumption? a. The potential of people is underutilized in organizations. b. People want to have security. c. Work is a natural part of the lives of people. d. People will seek responsibility under favorable conditions.

b. People want to have security.

Which source of funding has shown to be most significant and most important for financing a new business? a. Venture capital loans b. Personal resources c. Small-business investment company (SBIC) loans d. Strategic alliances

b. Personal resources

is the awarding of funds or gifts to charities or other worthy causes. a. Legal compliance b. Philanthropic giving c. Ethical compliance d. Soldiering

b. Philanthropic giving

Which of the following areas of the strategy specifies the range of markets in which an organization will compete? a. Resource deployment b. Scope c. Organizational strengths d. Distinctive competence

b. Scope

Which of the following is true of innovation? a. All successful new start-ups are innovative dot-com companies. b. Small businesses supply over half of all innovations in the U.S. marketplace each year. c. Innovations are less likely to come from small businesses than from big businesses. d. All successful software firms started out as large organizations.

b. Small businesses supply over half of all innovations in the U.S. marketplace each year.

Which of the following is a part of an organization's economic dimension of its general environment? a. Physical work environment b. Unemployment c. Interest groups d. Competitors

b. Unemployment

Griston Systems is a networking firm headquartered in the United States. It purchases an operating facility in Thailand that subsequently becomes a wholly owned subsidiary of Griston. This is an example of _____. a. a joint venture b. direct investment c. a strategic alliance d. licensing

b. direct investment

According to the BCG matrix, _____ are businesses that have the largest share of a rapidly growing market. a. dogs b. stars c. question marks d. cash cows

b. stars

Tactical plans must be consistent with a(n) _____ plan. a. operational b. strategic c. short-term d. standing

b. strategic

The set of processes involved in creating or determining the organization's strategies is called ___. a. business-level strategy b. strategy formulation c. strategy implementation d. strategy

b. strategy formulation

In order to further an organization's goal of increasing sales by a large margin, upper-level managers coordinate the acquisition of a number of retail outlets in smaller cities. These acquisitions represent the implementation of a(n) _____ plan. a. mission b. tactical c. strategic d. operational

b. tactical

Small-business investment companies (SBICs): a. have immediate participation loan programs. b. take a more balanced approach in their choices than venture capital companies. c. have strict eligibility guidelines. d. demand a representative on the board of directors of the business.

b. take a more balanced approach in their choices than venture capital companies.

In practice, organizations have a hard time focusing on _____. a. threats b. weaknesses c. opportunities d. strengths

b. weaknesses

Which statements best describes job creation in relation to small business and large corporations? a. All modern job creation is happening in the tech industry. b. Small businesses create more jobs than large corporations. c. Business success is the real driver of job creation, in both small and large businesses. d. Large corporations create more jobs than small businesses.

c. Business success is the real driver of job creation, in both small and large businesses.

Which of the following is a determinant of a strong organizational culture? a. A large management team b. A rapidly changing management team c. Corporate success d. No shared experiences

c. Corporate success

Which of the following is required to help alert entrepreneurs to potential trouble? a. A positive outlook on life b. Dedication c. Effective control systems d. Sufficient capital

c. Effective control systems

In the rational decision-making process, which of the following should one do after identifying the alternatives? a. Select the best alternative. b. Assess the results. c. Evaluate the alternatives. d. Implement the chosen alternative.

c. Evaluate the alternatives.

Roger is described as a manager with low risk propensity. He is most likely to: a. make decisions that frequently lead to big losses. b. make aggressive decisions. c. be cautious when making decisions. d. rely heavily on intuition.

c. be cautious when making decisions.

Organizational strengths are: a. skills that do not enable an organization to choose strategies that support its mission. b. areas that increase the difficulty of an organization performing at a high level. c. capabilities that enable an organization to implement its strategies. d. areas that may generate higher performance.

c. capabilities that enable an organization to implement its strategies.

A _____ is a formal, written statement of the values and principles that guide a firm's action. a. privacy policy b. conflict of interests c. code of ethics d. maquiladora

c. code of ethics

One significant contemporary management challenge is: a. management science. b. synergy. c. globalization. d. entropy.

c. globalization.

The managerial function of leading: a. involves setting an organization's goals and deciding how best to achieve them. b. is a part of the planning process. c. is the set of processes used to get members of an organization to work together. d. involves monitoring the organization's progress toward its goals.

c. is the set of processes used to get members of an organization to work together.

Due to the strong economies of scale, small businesses generally do not do as well as large businesses in the _____ segment. a. transportation b. retailing c. manufacturing d. construction

c. manufacturing

In the SWOT analysis, evaluating organizational _____ requires analyzing an organization's environment. a. weaknesses b. strengths c. opportunities d. hazards

c. opportunities

A national news event leads to a surge of interest in education policy. For an education think tank, this represents an organizational _____. a. strength b. threat c. opportunity d. weakness

c. opportunity

A wedding planner in Boston decides to open a specialty boutique for bridal gowns. This is an example of _____. a. single-product strategy b. unrelated diversification c. related diversification d. overall cost leadership strategy

c. related diversification

Under a state of _____, the availability of each alternative and its potential payoffs and costs are all associated with probability estimates. a. certainty b. uncertainty c. risk d. decision making

c. risk

Which of the following is an example of a business in the service industry? a. A department store b. A florist c. An automobile dealership d. A car rental agency

d. A car rental agency

Which of the following is true of a differentiation strategy? a. It is a strategy that concentrates on a specific regional market, product line, or group of buyers. b. It is a strategy through which a firm reduces its costs below the costs of competing firms. c. It is also known as a corporate-level strategy. d. It is a strategy in which a firm distinguishes itself from competitors through the quality of its products.

d. It is a strategy in which a firm distinguishes itself from competitors through the quality of its products.

Which of the following is NOT a major businesses strategy that small businesses can use to strategically position themselves? a. Attain first-mover advantage by exploiting a unique opportunity before the rest of the industry. b. Identify a niche in an established market through distinctive competencies. c. Identify a brand new market and take advantage of it accordingly. d. Pay all employees well above the industry average to attract only the best talent.

d. Pay all employees well above the industry average to attract only the best talent.

Which of the following is an area of focus for tactical plans? a. Environment b. Distinctive competence c. Mission d. People

d. People

refers to the choices an organization makes as to where and how much to invest. a. Scope b. Corporate-level strategy c. Distinctive competence d. Resource deployment

d. Resource deployment

goals are set by and for an organization's top management. a. Operational b. Diversification c. Tactical d. Strategic

d. Strategic

_____ are organizations that provide resources for other organizations. a. Interest groups b. Competitors c. Regulatory agencies d. Suppliers

d. Suppliers

Which of the following decisions of an experienced chef of a restaurant is a nonprogrammed decision? a. To pick a "dish of the day" from the menu b. To preorder wine for the next month c. To buy 10 kilograms of potatoes for the day's menu d. To hire a new sous chef

d. To hire a new sous chef

skills enable managers to visualize the most appropriate response to a situation. a. Decision-making b. Conceptual c. Communication d. Diagnostic

d. diagnostic

An organization that does not monitor feedback from its environment and make appropriate adjustments will fail due to _____. a. synergy b. diversity c. soldiering d. entropy

d. entropy

An export restraint agreement is a type of _____. a. strategic alliance b. direct investment c. tariff d. quota

d. quota

An automobile company that is the first of its kind to manufacture a car that runs solely on solar energy is said to: a. have a distinctive competence. b. be a star. c. be soldiering. d. be norming.

a. have a distinctive competence.

A small business: a. is owned by one individual or a small group. b. is publicly owned. c. has only one retail outlet. d. meaningfully influences its environment.

a. is owned by one individual or a small group.

A line manager at a brewery sets a target for the minimum number of beer cartons that have to be shipped out by the end of each day. This is an example of a(n) _____ goal. a. operational b. strategic c. tactical d. program

a. operational

A(n) _____ is a control on international trade that puts limits on the number or value of goods that can be traded. a. quota b. tariff c. economic community d. joint venture

a. quota

The Securities and Exchange Commission was created by the government to protect investors and to maintain orderly and efficient markets. It is an example of a(n) _____. a. regulatory agency b. interest group c. competitor d. strategic partner

a. regulatory agency

Steven is a polymer scientist with the motivation and expertise needed to start his own business. If he chooses to finance his business in the same way that most new businesspeople finance theirs, he will: a. rely on personal resources. b. borrow money from a lender. c. approach a venture capital company. d. form a strategic alliance.

a. rely on personal resources.

The process in which employees deliberately work at a pace slower than their capabilities is known as _____. a. soldiering b. norming c. storming d. efficiency

a. soldiering

An argument against social responsibility in organizations is that: a. there is potential for conflicts of interest. b. business creates problems and should therefore solve them. c. corporations are citizens in a society. d. business often has the resources necessary to solve problems.

a. there is potential for conflicts of interest.

Which of the following is true of operational goals? a. They are set by an organization's top managers. b. They are set by middle managers. c. They focus on broad, general issues. d. They concern themselves with short-term issues.

d. They concern themselves with short-term issues.

Which of the following statements on small businesses is true? a. All new start-ups are in the field of high-tech communication. b. More major innovations come from big businesses than small businesses. c. Small businesses sell consumers most of the products made by big manufacturers. d. Big companies are the first to lay off workers during economic downswings.

c. Small businesses sell consumers most of the products made by big manufacturers.

Which of the following is true of small businesses? a. Jobs are created solely by small entrepreneurial companies. b. Small businesses have a weak presence in the economy. c. Small firms specializing in international business create many new jobs. d. Small businesses have no impact on the world's mature economies.

c. Small firms specializing in international business create many new jobs.

A niche market is: a. a market in which several large firms compete. b. an area of organizational threat. c. a segment of a market that is not currently being exploited. d. a market in which customer needs are generic in nature.

c. a segment of a market that is not currently being exploited.

A clothing manufacturer is opening a new facility in a different city. Which of the following single-use plans will it employ? a. Program b. Policy c. Standard operating procedure d. Project

a. Program

Azim works for a talented young fashion designer. Azim is promised an internship at a competing large fashion house in exchange for some of the young designer's drawings. Which of the following ethical issues is represented in this scenario? a. Conflict of interest b. Redlining c. Bait-and-switch d. Ethical leadership

a. Conflict of interest

Which of the following best describes satisficing? a. Decision makers search only until they find an alternative that meets some minimum standard of sufficiency. b. Decision makers weigh and evaluate a large number of alternatives until they arrive at the best alternative. c. Decision makers go through the six steps of decision making before they finalize on the best option. d. Decision makers use complete and perfect information to arrive at decisions.

a. Decision makers search only until they find an alternative that meets some minimum standard of sufficiency.

occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision. a. Groupthink b. Escalation of commitment c. A coalition d. Satisficing

a. Groupthink

Which of the following statements is true of new businesses? a. Insufficient capital can contribute to new business failure. b. Control systems are unimportant when starting a new business. c. Luck plays no role in the success of businesses. d. A good outlook on life is irrelevant when starting a new business.

a. Insufficient capital can contribute to new business failure.

Which of the following is likely to be true of an organization like Kmart where the management team changes rapidly? a. It is likely to have a weak culture. b. It is likely to be focused on customer satisfaction. c. It is likely to be more effective than most companies. d. It is likely to have a number of shared experiences.

a. It is likely to have a weak culture.

Which of the following is a disadvantage of team decision making? a. It is more time consuming than individual decision making. b. It generates fewer alternatives than individual decision making. c. It has less information available in a team setting. d. Team members are less likely to accept the final decision.

a. It is more time consuming than individual decision making.

Which of the following is an advantage of a franchise? a. It lets franchisers grow by using the investment money provided by franchisees. b. Its start-up costs are either very small or negligent. c. It allows each franchise outlet to be vastly different from other outlets. d. It allows a franchise to build a business from a scratch using its own business model.

a. It lets franchisers grow by using the investment money provided by franchisees.

Pauline, a manager of a popular chain of supermarkets, is making a decision using the rational decision-making process. She has completed evaluating all alternatives. What should she do next? a. She should select the best alternative. b. She should define the decision situation. c. She should implement the chosen alternative. d. She should evaluate the results.

a. She should select the best alternative.

Universal perspectives: a. attempt to identify the one best way to do something. b. suggest that general theories cannot be applied to organizations. c. state that each organization is unique. d. state that managerial behavior in a situation depends on unique elements.

a. attempt to identify the one best way to do something.

A manager is hired by a start-up for her demonstrated ability to think strategically and make broad-based decisions that serve the entire organization. In other words, the manager has been hired for her strong _____ skills. a. conceptual b. diagnostic c. communication d. technical

a. conceptual

An independent record label hires a manager who has previously worked with organizations specializing in food processing, internet technology, and e-retailing. The manager is known for tailoring his managerial style in any given situation to the unique elements in that situation. His behavior is closely in sync with the principles of the _____ perspective. a. contingency b. classical c. quantitative d. behavioral

a. contingency

Miriam pools all her savings to open a bakery that specializes in wedding cakes. She bakes the cakes, runs the store, and creates a website that allows customers to place orders online. Miriam is a(n) _____. a. entrepreneur b. wholesaler c. venture capitalist d. small-business investor

a. entrepreneur

A firm that specializes in alternative energy releases a new and highly efficient solar battery. During the _____ stage of the product cycle, other firms will begin to produce the product and sales will continue to increase. a. growth b. maturity c. introduction d. decline

a. growth

Product differentiation is an important management issue during the _____ stage of the product life cycle. a. growth b. maturity c. introduction d. decline

a. growth

Interest groups act as _____ in organizations. a. regulators b. suppliers c. strategic partners d. owners

a. regulators

What are a few reliable sources of management advice for small businesses? a. Wikipedia, family, and business books b. Advisory boards, consultants, and the Small Business Administration (SBA) c. Competitors, employees, and college professors d. Gurus, online business articles, and government agencies

b. Advisory boards, consultants, and the Small Business Administration (SBA)

Which of the following is true of most successful entrepreneurs? a. They launch their ventures in their spare time. b. They carefully analyze market conditions. c. They succeed straight out of college. d. They succeed alone.

b. They carefully analyze market conditions.

Which of the following is true regarding international business? a. International markets are generally the same as domestic markets and do not present many new opportunities. b. Expanding a small business into another country is easy. c. Small businesses are increasingly able to expand internationally. d. Venturing into the international market is relatively void of risks.

c. Small businesses are increasingly able to expand internationally.

A ______ describes how specific activities are to be carried out. a. standard operating procedure b. contingency play c. rule or regulation d. policy

c. rule or regulation

A retail business: a. sells directly to producers. b. offers products to wholesalers for sale. c. sells products manufactured by other firms. d. requires fewer employees than wholesalers.

c. sells products manufactured by other firms.

Mark is a logical and rational manager. When making decisions, he first acquires complete and perfect information and then eliminates uncertainty to arrive at a decision that best serves the interests of his company. Mark follows _____. a. the administrative model b. the Delphi technique c. the classical decision model d. the nominal group decision model

c. the classical decision model

A policy is: a. more specific and detailed than a standard operating procedure. b. developed for nonrecurring situations. c. the most general form of a standing plan. d. a type of a single-use plan.

c. the most general form of a standing plan.

Roughly how many of new "innovations" introduced to the market in a given year are supplied by small business? a. Practically all innovation occurs in small business b. A negligible amount c. 80 percent d. 50 percent

d. 50 percent

GraviTea Inc. is examining potential for a new tea product. It has engaged a panel of experts to individually and anonymously state their opinions. It is now in the process of averaging them and may ask the experts for another prediction or justification. The average prediction will be taken to represent the decision of the group of experts. GraviTea is using a(n) _____ for decision making. a. coalition b. nominal group c. evidenced-based management group d. Delphi group

d. Delphi group

Which of the following is true of SBA financial programs? a. Managers need approval from the SBA before making major decisions. b. They supply capital in return for stock. c. They require a representative on the board of directors of a company. d. Eligible firms must be unable to get private financing at reasonable terms.

d. Eligible firms must be unable to get private financing at reasonable terms.

Gerard is a mid-level manager who believes that people do not like work and try to avoid it. He therefore controls, directs, and coerces employees to get them to work toward organizational goals. Which of the following is true of Gerard? a. He follows the principles of the quantitative management perspective. b. He is a Theory Y manager. c. His actions are based on the principles of the human relations movement. d. He is a Theory X manager.

d. He is a Theory X manager.

Which of the following is true of the quantitative management perspective? a. It draws from psychology, sociology, anthropology, economics, and medicine. b. It places emphasis on individual attitudes and group processes. c. It is a pessimistic and negative view of workers. d. It focuses on mathematical models and the use of computers.

d. It focuses on mathematical models and the use of computers.

Which of the following is true of technical skills? a. They involve the ability to motivate both individuals and groups. b. They allow a manager to make good decisions. c. They depend on a manager's ability to think in the abstract. d. They are especially important for first-line managers.

d. They are especially important for first-line managers.

Which of the following is true of entrepreneurs? a. They assume the risk of the venture but are not actively involved in operating it. b. They run someone else's business. c. They hire professional managers to run their businesses. d. They take a personal stake in the success or failure of the business.

d. They take a personal stake in the success or failure of the business.

A two-person software development company with annual sales of $100,000 would be considered a: a. large business. b. franchise. c. joint venture. d. small business.

d. small business.