Management Midterm
98. Strategic and tactical planning must be accompanied by __________ to ensure the plans are implemented as intended and to evaluate the results of those results. a. controls b. the accounting function c. time constraints d. the information systems function
ANSWER: A, Knowledge, Easy, p. 239 AACSB Analytic, Strategy
45. The most important force in the environment that affects organizations is usually __________. a. customers b. competitors substitute goods coalitions in the industry
ANSWER: A, Knowledge, Difficult, p. 129 AACSB Analytic, Environmental Influence
86. Multicultural competency requires __________. a. cultural openness b. a reasonable amount of travel c. classes or instruction d. all of the above
ANSWER: A, Knowledge, Easy, p. 24 AACSB: Analytic, Creation of Value
111. According to the integrated strategy model, __________ is the speed and sequence of major moves taken in order to heighten the likelihood of success. a. staging b. sequencing c. profiling d. economic logic
ANSWER: A, Knowledge, Easy, p. 245 AACSB Analytic, Strategy
46. Bruce D. Henderson of the Boston Consulting Group states, "For virtually all organizations the critical environment constraint is their actions in relation to ________." a. competitors b. customers government investors
ANSWER: A, Knowledge, Difficult, p. 129 AACSB Analytic, Environmental Influence
52. Larry Ellison, CEO of Oracle, realized that changes needed to be made for Oracle to succeed. These changes included the creation of: a "Fusion Strategy Council" a development team an enhanced sales program an oversight committee
ANSWER: A, Knowledge, Difficult, p. 13 AACSB: Analytic, Creation of Value
91. Technology plays an important role in manufacturing. Perhaps the most significant contribution of technology to manufacturing is that of ____________, which is the ability to produce a wide variety of a product by using the same basic design and production equipment. mass customization mass marketing mass manufacturing mass globalization
ANSWER: A, Knowledge, Difficult, p. 140 AACSB Analytic, Environmental Influence
33. A number of variables should be assessed to determine the political climate. These variables include all of the following except __________. a. inequality of the governmental bureaucracy b. role of the military in the political process c. number of factions in the legislature d. extent of racial and nationality tensions
ANSWER: A, Knowledge, Difficult, p. 161 AACSB Analytic, Creation of Value
42. Most experts agree that if protectionism is politically unavoidable, __________ are preferable to quotas. tariffs subsidies free trade agreements joint ventures
ANSWER: A, Knowledge, Difficult, p. 162 AACSB Analytic, Creation of Value
67. NAFTA doesn't change requirements for the entry of _____________ into the United States and Canada. a. foreign banks b. light trucks telecommunication companies automobiles
ANSWER: A, Knowledge, Difficult, p. 167 AACSB Analytic, Creation of Value
72. The ______________ is the European Union's executive body and sole initiator of legislation. European Commission European Community European Council of Ministers Economic Union
ANSWER: A, Knowledge, Difficult, p. 169 AACSB Analytic, Creation of Value
23. Which of the following is not included in describing the entrepreneurial need for achievement? a. desire for recognition b. drive for excellence goal attainment want immediate feedback
ANSWER: A, Knowledge, Difficult, p. 189 AACSB Analytic, Creation of Value
39. Jeff Immelt, CEO of General Electric, says that __________ is the most important part of his job. developing and motivating people attracting and recruiting employees maximizing stakeholder profits reducing turnover
ANSWER: A, Knowledge, Difficult, p. 223 AACSB Analytic, Strategy
83. Most organizations find that assessing their __________ is easier than assessing their __________. a. strengths:weaknesses b. weaknesses: strengths opportunities: threats threats: opportunities
ANSWER: A, Knowledge, Difficult, p. 234 AACSB Analytic, Strategy
41. A restriction on the quantity of a country's imports is known as a __________. a. quota b. tariff price control boycott
ANSWER: A, Knowledge, Easy, p. 162 AACSB Analytic, Creation of Value
46. The Organization of Petroleum Exporting Countries (OPEC) is an example of an organization that attempts to operate as a __________. a. cartel b. strategic business unit joint venture multidomestic strategy
ANSWER: A, Knowledge, Easy, p. 163 AACSB Analytic, Creation of Value
69. Employees at __________ are encouraged to treat customers like they would treat visitors in their own homes. The Container Store Xerox American Express Wal-Mart
ANSWER: A, Knowledge, Easy, p. 18 AACSB: Analytic, Creation of Value
10. Organizations designed to accelerate the growth of entrepreneurial companies through an array of business support resources are referred to as business _______. incubators networks matrices clans
ANSWER: A, Knowledge, Easy, p. 186 AACSB Analytic, Creation of Value
28. Entrepreneurs are consistently strong with respect to a need for __________. achievement power self-actualization control
ANSWER: A, Knowledge, Easy, p. 189 AACSB Analytic, Individual Dynamics
79. Understanding the organization's overall mission and ensuring that employees' actions are in alignment defines the __________ competency. a. strategic action b. multicultural c. teamwork d. self-management
ANSWER: A, Knowledge, Easy, p. 22 AACSB: Analytic, Creation of Value
62. __________ strategy refers to the resources allocated and actions taken to achieve desired goals in serving a specific market with a highly interrelated set of goods and/or services. a. Business-level b. Single-business Horizontal integration Forward integration
ANSWER: A, Knowledge, Easy, p. 228 AACSB Analytic, Strategy
64. __________ strategies specify how the firm will develop and utilize its production capabilities to support the firm's business-level strategies. a. Operations b. Business-level Marketing Finance
ANSWER: A, Knowledge, Easy, p. 229 AACSB Analytic, Strategy
79. Core organizational competencies represent __________. strengths weakness opportunities threats
ANSWER: A, Knowledge, Easy, p. 234 AACSB Analytic, Strategy
87. The __________ strategy involves seeking new markets for current products. a. market development b. market penetration market alliance market venture
ANSWER: A, Knowledge, Easy, p. 237 AACSB Analytic, Strategy
17. In Mexico, managers are used to giving only ___________ to their employees and to expressing views that only agree with their bosses. positive feedback constructive criticism candid information abrupt dialogue
ANSWER: A, Knowledge, Moderate, p. 155 AACSB Analytic, Creation of Value
19. In __________, clocks, straw sandals, and the colors white, blue, and black are associated with death. a. China b. Brazil c. Mexico d. Sweden
ANSWER: A, Knowledge, Moderate, p. 156 AACSB Analytic, Creation of Value
38. ______________ is not a country that ranks low on the corruption index. a. Venezuela Finland United States New Zealand
ANSWER: A, Knowledge, Moderate, p. 162 AACSB Analytic, Creation of Value
34. All of the following are drawbacks to bureaucracy except ___________. a. progressive decision making b. protection of authority c. incompatibility with changing technology d. incompatibility with workers' values
ANSWER: A, Knowledge, Moderate, p. 48 AACSB Analytic, Strategy
62. The focus of bureaucratic management is on _____________. the whole organization the employee the manager the environment
ANSWER: A, Knowledge, Moderate, p. 52 AACSB Analytic, Creation of Value
77. The writings of Mayo and others interpreted the basic conclusions from the Hawthorne studies and helped outline the ______________ viewpoint of management. behavioral administrative traditional scientific
ANSWER: A, Knowledge, Moderate, p. 56 AACSB Analytic, Creation of Value
52. A business owner who has purchased the right to market a product, while also receiving training and operational assistance, is involved in a __________. business incubator franchise pyramid scheme umbrella organization
ANSWER: B, Knowledge, Easy, p. 197 AACSB Analytic, Creation of Value
11. A vision statement adds _________ to a mission statement if it lacks one. creativity soul mind body
ANSWER: B, Knowledge, Easy, p. 216 AACSB Analytic, Leadership Principles
10. A __________ expresses an organization's fundamental aspirations and purpose, usually be appealing to its members' hearts and minds. strategy vision mission plan
ANSWER: B, Knowledge, Easy, p. 216 AACSB Analytic, Leadership Principles
15. A mission statement is meaningful only if it acts as a __________ for guiding strategic decisions and achieving an organization's long-term goals. strategic plan unifying force tactical plan vision
ANSWER: B, Knowledge, Easy, p. 217 AACSB Analytic, Leadership Principles
33. A firm that serves various segments of a particular market is known as a(n) __________-business firm. a. single b. dominant related unrelated
ANSWER: B, Knowledge, Easy, p. 222 AACSB Analytic, Strategy
34. A firm that provides a variety of similar goods and/or services is known as a(n) __________-business firm. a. single b. related dominant unrelated
ANSWER: B, Knowledge, Easy, p. 222 AACSB Analytic, Strategy
42. __________-level planning and strategy guides the overall direction of firms having more than one line of business. a. Functional b. Corporate Business Diversification
ANSWER: B, Knowledge, Easy, p. 223 AACSB Analytic, Strategy
47. __________ occurs when a company enters the business of its suppliers, usually to control component quality, on-time delivery, or stable prices. a. Forward integration b. Backward integration Horizontal integration Vertical diversification
ANSWER: B, Knowledge, Easy, p. 225 AACSB Analytic, Strategy
49. When a company enters the businesses of its customers, it is involved in __________. a. backward integration b. forward integration c. horizontal integration d. related diversification
ANSWER: B, Knowledge, Easy, p. 225 AACSB Analytic, Strategy
51. __________ integration occurs when a company acquires a competitor to consolidate and extend its market share. a. Forward b. Horizontal Backward Conglomerate
ANSWER: B, Knowledge, Easy, p. 226 AACSB Analytic, Strategy
51. The system that focuses on the manager and basic managerial functions is referred to as a ________________ management a. contingency b. administrative systems behavioral
ANSWER: B, Knowledge, Easy, p. 51 AACSB Analytic, Creation of Value
88. In the systems viewpoint, the transformation processes change inputs into ________. human capital outputs material information
ANSWER: B, Knowledge, Easy, p. 58 AACSB Analytic, Creation of Value
94. is information about a system's status and performance. a. Viewpoint b. Feedback Direction Status
ANSWER: B, Knowledge, Easy, p. 58 AACSB Analytic, Creation of Value
100. The contingency viewpoint is also called the ____________ approach. classical situational behavioral network
ANSWER: B, Knowledge, Easy, p. 61 AACSB Analytic, Creation of Value
19. The Sarbanes-Oxley Act is intended to __________. break up monopolies reform accounting practices reform campaign financing all of the above
ANSWER: B, Knowledge, Easy, p. 83 AACSB Ethics, Ethical Responsibilities
29. Employees who report unethical or illegal actions of their employers to other people or organizations that are capable of taking corrective action are referred to as ________. corporate watchdogs whistle-blowers scabs snitches
ANSWER: B, Knowledge, Easy, p. 90 AACSB Ethics, Ethical Responsibilities
30. Whistle-blowing may be a personal strategy as a __________. way to get recognition last resort initial response way to avoid retaliation
ANSWER: B, Knowledge, Easy, p. 90 AACSB Ethics, Ethical Responsibilities
31. As an observer and reporter of massive company fraud, David Banks received all of the following except: exclusion from the "team." company recognition. $77 million. threats of imprisonment.
ANSWER: B, Knowledge, Easy, p. 90 AACSB Ethics, Ethical Responsibilities
86. Which of the following is not an obligation to shareholders? viability charitable contributions ethical disclosure of financial information growth of investment
ANSWER: B, Knowledge, Moderate, p. 102 AACSB Ethics, Ethical Responsibilities
87. A supplier applies which type of pressure to organizations? disclosure of financial information meet commitments demands for efficiency demand for global labor standards
ANSWER: B, Knowledge, Moderate, p. 102 AACSB Ethics, Ethical Responsibilities
53. Oracle's goal in revising their compensation system was to: a. reward individual contributions. b. make it more customer oriented. c. create competition among their sales people. d. increase commitment to the organization.
ANSWER: B, Knowledge, Moderate, p. 13 AACSB: Analytic, Creation of Value
All organizations have the same overall goals, but their specific goals are unique. A specific goal at Xerox is to ____________. a. create innovative cameras b. become a premier supplier c. deliver internet services reduce employee turnover
become a premier supplier
A _____________is a combination of knowledge, skills, behaviors, and attitudes that contribute to personal effectiveness. manager entrepreneur competency strategy
competency
Which of the following position(s) is typically not considered a manager? CEO computer programmer Chief Information Officer coach
computer programmer
30. The expected benefits of bureaucratic management are ___________ and ___________. a. efficiency
consistency b. efficiency
Which of the following is not considered a key managerial competency? communication teamwork and strategic action multicultural and self-management entrepreneurship
entrepreneurship
69. In 2005, ____________ was the biggest issue with lobbyists with more than $173.2 million spent applicable plans and supplies. airline deregulation health care criminal action electricity deregulation
ANSWER: B, Knowledge, Moderate, p. 133 AACSB Analytic, Environmental Influence
20. Howard Schultz, CEO of Starbucks, believes that its success is due to competitive spirit, ability to respond to customers' needs, and its ____________ process. a. leading b. planning c. controlling d. organizing
ANSWER: C, Application, Moderate, p. 10 AACSB: Reflective Thinking, Creation of Value
90. Many stakeholders are pressuring business leaders to __________. support the proven, traditional utilitarian style business adopt a more legalistic approach maximize profits actively contribute to society
ANSWER: D, Knowledge, Difficult, p. 103 AACSB Ethics, Ethical Responsibilities
11. The City of Calgary showed environmental awareness in its installation of low wattage streetlights, which was a result of __________. a. legislation b. the Sierra Club c. hostile press exposure d. pollution concerns
ANSWER: D, Knowledge, Difficult, p. 119 AACSB Analytic, Environmental Influence
60. The North American Free Trade Agreement (NAFTA) was created to increase free trade between (among) _____________________. the U.S. and Mexico North America and South America the U.S. and Central America Canada, the U.S., and Mexico
ANSWER: D, Knowledge, Easy, p. 166 AACSB Analytic, Creation of Value
65. Maquiladoras __________. pay more than 4 times Mexico's minimum wage account for roughly 40 percent of Mexico's manufacturing employ more than 1.2 million people all of the above
ANSWER: D, Knowledge, Easy, p. 166 AACSB Analytic, Creation of Value
3. __________ is the creation of an innovative organization for the purpose of economic gain or growth under conditions of risk or uncertainty. Stakeholder Financial speculator Capitalism Entrepreneurship
ANSWER: D, Knowledge, Easy, p. 184 AACSB Analytic, Creation of Value
57. Which of the following is (are) issues to consider in buying an existing business? competition from the previous owner goodwill initial investment All of the above are issues
ANSWER: D, Knowledge, Easy, p. 197 AACSB Analytic, Creation of Value
53. Which of the following organizations use franchises to market their products? McDonald's Domino's Pizza Jiffy Lube All of the above use franchises
ANSWER: D, Knowledge, Easy, p. 197 AACSB Analytic, Creation of Value
65. A __________ is a private individual who invests directly in firms and receives an equity stake in return. venture capitalists strategist co-operative business angel
ANSWER: D, Knowledge, Easy, p. 200 AACSB Analytic, Creation of Value
64. Entrepreneurs can seek funding from which of the following sources? venture capital firms. financial institutions. business angels. All of the following are good sources of funds
ANSWER: D, Knowledge, Easy, p. 200 AACSB Analytic, Individual Dynamics
72. Karen Langley worked in a family business that was characterized by back-stabbing and accusations of stealing that ultimately caused a __________. family feud cross fire resignation all of the above
ANSWER: D, Knowledge, Easy, p. 202 AACSB Analytic, Group Dynamics
64. __________ is not one of the basic political strategies to cope with the political-legal forces. Negotiation Socialization Alliance Judicial activism
ANSWER: D, Knowledge, Moderate, p. 133 AACSB Analytic, Environmental Influence
44. _______________ used a revolutionary new tool—motion pictures—to study motions of workers. a. Frank Gilbreth b. Frederick Taylor Elton Mayo Max Weber
ANSWER: A, Knowledge, Moderate, p. 50 AACSB Analytic, Strategy
56. Erin Hyslop is working for a large manufacturing company. As a middle manager, she has been trained that employees should only report to one manager. This policy supports Fayol's ___________ principle. division of labor unity of command scalar chain discipline
ANSWER: B, Application, Easy, p. 51 AACSB Analytic, Strategy
48. Martha Goodrum's promotion to manager of Cafe Express has been met with 70-hour workweeks starting at 3 a.m. She must meet a profit target by using company mandated sales strategies. What type of manager is Goodrum? first line middle top matrix
ANSWER: B, Application, Moderate, p. 12 AACSB: Reflective Thinking, Creation of Value
22. A ______________ comprises multiple beliefs that are compatible and supportive of one another. a. culture b. value system power distance score cultural force
ANSWER: B, Application, Moderate, p. 122 AACSB Reflective Thinking, Environmental Influence
56. The introduction of desktop publishing systems in the printing industry best represents the idea of __________. economies of scope substitute goods or services bargaining power economies of scale
ANSWER: B, Application, Moderate, p. 130 AACSB Reflective Thinking, Environmental Influence
52. During a recent holiday season, Half-Life 2 sold 120 million copies during the first 24 hours. This either directly or indirectly affects the factor of __________ that serves as a barrier to entry. capital requirement economy of scale economies of scope product differentiation
ANSWER: B, Application, Moderate, p. 130 AACSB Reflective Thinking, Environmental Influence
58. Let's assume Domino's Pizza threatened to bake its own bread, grow its own tomatoes, and raise its own hogs (as a source for sausage and pepperoni) to get lower prices and better quality for its inputs. This would represent __________ integration. forward backward vertical horizontal
ANSWER: B, Application, Moderate, p. 131 AACSB Reflective Thinking, Environmental Influence
74. Nestlé and Coca-Cola collaborated whereby both firms have benefited from using each other's distribution channels and marketing programs. Nestlé and Coca-Cola are utilizing the __________ strategy. backward integration alliance representation vertical integration
ANSWER: B, Application, Moderate, p. 134 AACSB Reflective Thinking, Environmental Influence
77. General Mills and Nestlé became partners and formed a separate entity called Cereal Partners Worldwide. This new organization is an example of the __________ strategy. negotiation joint venture oligopoly acquisition
ANSWER: B, Application, Moderate, p. 135 AACSB Reflective Thinking, Environmental Influence
51. As the sole employee of Building Employees, David Morris will need to determine his expected revenue, initial investment, and anticipated competition. Morris is an entrepreneur who is considering his __________ strategy. financial start-up profit and loss affordable loss
ANSWER: B, Application, Moderate, p. 197 AACSB Reflective Thinking, Strategy
32. Southwest Airlines provides one type of transportation service to travelers. This is known as a(n) __________-business strategy firm. a. dominant b. single related integrated
ANSWER: B, Application, Moderate, p. 221 AACSB Reflective Thinking, Strategy
96. Today, many small businesses use their own computers. Ready-to-use software packages, such as Microsoft Windows and Excel, enable small-business owners and managers to utilize programs for accounts payable and inventory control. These are all components of __________ techniques. qualitative quantitative boundary-spanning bureaucratic
ANSWER: B, Application, Moderate, p. 59 AACSB Analytic, Creation of Value
14. Robert Simper is the Vice President of a marketing company and is about to fire the advertising manager who has been at the company for several years. All of the following are considered permissible reasons for firing the manager except: drug activity on the job filing discrimination charges theft All of the above are acceptable reasons.
ANSWER: B, Application, Moderate, p. 82 AACSB Ethics, Ethical Responsibilities
18. Section 806 of the Sarbanes-Oxley Act directly protects __________. a. investors b. auditors c. investment bankers d. employees
ANSWER: B, Application, Moderate, p. 83 AACSB Ethics, Ethical Responsibilities
16. American Express' decision to grow their customer base, and establish global partners is an example of which managerial function? a. organizing b. planning c. directing d. controlling
ANSWER: B, Application, Moderate, p. 9 AACSB: Diversity, Creation of Value
72. Duane Kirkland monitors information and uses it to identify symptoms, underlying problems, and alternative solutions. What competency is Kirkland demonstrating? communication planning and administration teamwork strategic action
ANSWER: B, Application, Moderate, pp. 18-19 AACSB: Reflective Thinking, Creation of Value
89. _________ said "[w]e want to make sure that... our more than 80 businesses and 151,000 team members are committed to being environmentally responsible stewards in every community in which we do business." Kenneth Lay from Enron Mary Wenzel from Wells Fargo Dick Cheney from Halliburton Warren Buffet from Berkshire Hathaway
ANSWER: B, Knowledge, Difficult, p. 102 AACSB Ethics, Ethical Responsibilities
7. According to your text, which of the following is not an element of the old economy? tangible products and physical assets emphasis on value unskilled labor customers for a lifetime
ANSWER: B, Knowledge, Difficult, p. 118 AACSB Analytic, Environmental Influence
55. Substitutes are a powerful force in the video game industry. The threat of substitutes is largely based on ______________. a. government regulations b. ease of production bargaining power profit maximization
ANSWER: B, Knowledge, Difficult, p. 130 AACSB Analytic, Environmental Influence
57. Customer bargaining power is likely to be relatively great under all of the following circumstances except when __________. a. the customer purchases a large volume relative to the supplier's total sales b. the product or service represents only a small expenditure by the customer c. large customers pose a threat of backward integration d. customers have readily available alternatives for the same service
ANSWER: B, Knowledge, Difficult, p. 131 AACSB Analytic, Environmental Influence
37. Bureaucratic management is still widely and successfully used today. This approach is most effective when used with all of the following except when . a. large amounts of standard information have to be processed b. the needs of customers are not known and are likely to change c. the technology is routine d. the technology is stable, so employees can be easily and quickly taught how to operate machines
ANSWER: B, Knowledge, Difficult, p. 49 AACSB Analytic, Strategy
113. Quality dimensions generally are measured by ______________________. specially trained quality control supervisors variable or by attribute those who have studied the Deming prescriptions inputs and outputs
ANSWER: B, Knowledge, Difficult, p. 65 AACSB Analytic, Creation of Value
58. Which of the following statements is not representative of top management? a. Top management is responsible for the overall operations of the organization. b. Top management determines the amount of earnings that the corporation will report. c. Top management spends much time talking with other top managers in the company. d. Top management often represents the organization in community affairs.
ANSWER: B, Knowledge, Difficult, pp. 13-14 AACSB: Analytic, Creation of Value
91. The formation of alliances, especially joint ventures, has been stimulated by all of the following needs and desires except __________. a. the need to share and lower the costs of high-risk, technologically intensive development projects, such as computer-based information systems b. the desire to maximize costs by sharing the large fixed-cost investments for manufacturing plants in some locations and in industries such as autos and steel. c. the desire to learn another firm's technology and special processes or to gain access to customers and distribution channels d. the desire to participate in the evolution of competitive activity in growing global industries
ANSWER: B, Knowledge, Difficult, pp. 173-174 AACSB Analytic, Creation of Value
10. Andy Grove, CEO of Intel says, "Our assets leave on the elevator every night." He is referring to __________. potential customers human capital diversity environmental stewardship
ANSWER: B, Knowledge, Easy, p. 118 AACSB Analytic, Environmental Influence
79. The development, promotion, and implementation of innovative initiatives in established firms for the purpose of generating growth and, thus, profits under risky or uncertain conditions is referred to as ________________. a. research and development specialist b. corporate entrepreneurship c. global conditioning d. none of the above
ANSWER: B, Knowledge, Easy, p. 204 AACSB Analytic, Creation of Value
3. The process of diagnosing the organization's environments, deciding on a mission and vision, developing overall goals, creating and selecting general strategies, and allocating resources is _________. a. tactical planning b. strategic planning strategic control operational planning
ANSWER: B, Knowledge, Easy, p. 215 AACSB Analytic, Strategy
55. When a firm acquires or starts a business related to the firm's existing business in terms of technology, markets, or products, it has engaged in __________ diversification. a. horizontal b. related backward forward
ANSWER: B, Knowledge, Easy, p. 226 AACSB Analytic, Strategy
61. At Enron, _________ was the code name for special-purpose entities. a. "Star Wars" b. "Raptors" c. "Phasers" d. "Cylons"
ANSWER: B, Knowledge, Easy, p. 228 AACSB Analytic, Creation of Value
65. A __________ strategy refers to the actions and resource commitments established for operations, marketing, human resources, finance, legal services, accounting, and the organization's other functional areas. a. corporate-level b. functional-level business-level comprehensive-level
ANSWER: B, Knowledge, Easy, p. 229 AACSB Analytic, Strategy
80. The strengths that make an organization distinctive and more competitive by providing goods or services that have unique value its customers are known as __________ competencies. a. tactical b. core c. financial d. market-based
ANSWER: B, Knowledge, Easy, p. 234 AACSB Analytic, Strategy
85. The __________ strategy involves seeking growth in current markets with current products. a. market development b. market penetration market alliance market venture
ANSWER: B, Knowledge, Easy, p. 236 AACSB Analytic, Strategy
100. The generic strategies model consists of _____ basic business-level strategies that can be applied to a variety of organizations in diverse industries. a. 3 b. 4 c. 5 d. none, because it is a corporate-level model
ANSWER: B, Knowledge, Easy, p. 239 AACSB Analytic, Strategy
105. The __________ strategy emphasizes competing in the industry by providing a product at a price as low as or lower than competitors. differentiation cost leadership multidomestic diversification
ANSWER: B, Knowledge, Easy, p. 242 AACSB Analytic, Strategy
13. The person most closely associated with bureaucratic management is . a. Adam Smith b. Max Weber c. Frederick Taylor d. Henry Gilbreth
ANSWER: B, Knowledge, Easy, p. 43 AACSB Analytic, Individual Dynamics
33. There are many drawbacks to bureaucracy. Rigid rules and red tape are often cited. This may foster all of the following except ____________. a. low motivation b. individual autonomy high turnover shoddy work
ANSWER: B, Knowledge, Easy, p. 48 AACSB Analytic, Strategy
105. Which of the following is not an example of a technology? machines inputs tools knowledge
ANSWER: B, Knowledge, Easy, p. 62 AACSB Analytic, Creation of Value
6. General Electric employees undergo ______________ training soon after joining the company. a. strategy b. ethics and compliance c. effective communication d. business writing
ANSWER: B, Knowledge, Easy, p. 80 AACSB Ethics, Ethical Responsibilities
50. The __________ approach holds that decisions should be consistent with fundamental rights and privileges. social contract moral rights utilitarianism fairness
ANSWER: B, Knowledge, Easy, p. 93 AACSB Ethics, Ethical Responsibilities
60. The __________ approach evaluates decisions and behavior on how equitably they distribute benefits and costs among individuals and groups. fairness justice moral rights equity
ANSWER: B, Knowledge, Easy, p. 96 AACSB Ethics, Ethical Responsibilities
31. Key attributes needed to be a successful entrepreneur are __________. a. easy to learn b. difficult to learn, but worth the effort to develop c. only possessed by those who are born with them d. none of the above
ANSWER: B, Knowledge, Easy, p.190 AACSB Analytic, Creation of Value
11. ________is (are) society's values and standards that is (are) enforceable in the courts. Culture Laws Ethics Codes
ANSWER: B, Knowledge, Easy, p.82 AACSB Ethics, Ethical Responsibilities
103. ICI is a global company that is more commonly associated with its popular __________ brand. Dutch Boys Glidden Baer Sherwin-Williams
ANSWER: B, Knowledge, Easy, pp. pp. 175-176 AACSB Analytic, Creation of Value
27. The _______________ managerial function concerns itself with assigning workers to departments. planning controlling organizing leading
ANSWER: C, Application, Moderate, p. 9 AACSB: Reflective Thinking, Creation of Value
40. Canada and the United States are examples of countries with __________. a. low uncertainty avoidance b. high uncertainty avoidance short-term orientation low power distance
ANSWER: C, Knowledge, Difficult, pp. 126-127 AACSB Analytic, Environmental Influence
13. An organization's purpose or reason for existing is known as a _________. a. scenario b. rationale mission strategy
ANSWER: C, Knowledge, Easy, p. 217 AACSB Analytic, Strategy
46. Frank Gilbreth's work led to as much as a __________ percent increase in the overall productivity of bricklayers. a. 50 b. 100 150 200
ANSWER: D, Knowledge, Difficult, p. 50 AACSB Analytic, Group Dynamics
101. The __________ viewpoint contends that management practices should be consistent with the requirements of the external environment, technology, and capabilities of the people involved. behavioral administrative systematic contingency
ANSWER: D, Knowledge, Easy, p. 61 AACSB Analytic, Creation of Value
3. Seventy-two percent of those polled rated the moral and ethical standards of CEOs of major corporations as __________. no different than the general public improving after the Enron crisis an international embarrassment either fair or poor
ANSWER: D, Knowledge, Easy, p. 78 AACSB Ethics, Ethical Responsibilities
13. General managers usually have ___________managers reporting to them. country top regional functional
ANSWER: D, Knowledge, Easy, p. 8 AACSB: Analytic, Creation of Value
10. Which of the following is not considered a basic force from which ethical values and decisions are evaluated? cultural legal and regulatory organizational All are considered to be basic forces.
ANSWER: D, Knowledge, Easy, p. 81 AACSB Ethics, Ethical Responsibilities
85. Conducting business in a way that protects the natural environment while making economic progress is referred to as __________. environmental policy waste management global sensitivity sustainable development
ANSWER: D, Knowledge, Moderate, p. 101 AACSB Ethics, Ethical Responsibilities
60. Albert Stroucken, president and C.E.O. of H.B. Fuller, was a target of questions several years ago from the Federal Drug Administration (FDA) and the media after tests revealed that children in Central America sniff Resistol, a glue used in making shoes. The children sniff the glue because it provides a temporary euphoria that relieves hunger and hopelessness in their homes in Honduras and Guatemala. The FDA has charged that the glue's fumes can cause brain damage. What managerial position does Stroucken most likely hold? top manager public relations director middle manager first-line manager
ANSWER: A, Application, Easy, pp. 13-14 AACSB: Reflective Thinking, Creation of Value
39. Confucius was a civil servant in China in about _______________. a. 500 BC b. 1500 BC c. 500 AD d. the time of Christ
ANSWER: A, Knowledge, Difficult, p. 126 AACSB Analytic, Environmental Influence
91. Kim Evans, a manager, understands the nature of national, ethnic, and cultural differences represented on the task force she organized. Evans is demonstrating the _______________ competency. multicultural self-management communication planning and administration
ANSWER: A Application, Moderate, p. 25 AACSB: Reflective Thinking, Creation of Value
50. Stevens Ranch, a cattle ranch and commercial feedlot operation located along Interstate Highway 40 in Arkansas, opened a restaurant to serve its high quality beef to travelers. This decision characterizes __________ integration. a. forward b. backward horizontal conglomerate
ANSWER: A, Application, Difficult, p. 225 AACSB Reflective Thinking, Strategy
58. Ireland Realty is a real estate company. It recently acquired companies operating in the floral, tire, and athletic equipment industries. Ireland is using a ____________ strategy. a. conglomerate b. related diversification related diversification dominant business firm
ANSWER: A, Application, Difficult, p. 227 AACSB Reflective Thinking, Strategy
15. Esther Broadway desires for her employees to act in a standard way while they are on the job. According to the bureaucratic approach to management, it is ______________ that outline(s) the way people behave and act while they are working. a. rules b. division of labor hierarchical structure impersonality
ANSWER: A, Application, Difficult, p. 43 AACSB Reflective Thinking, Individual Dynamics
44. The choices by a respondent on the Managerial Values Profile suggest that she believes in an individual's right to private property, the right of employees to know about any danger in the job setting, and the right of an individual to speak freely without fear of being fired. What approach to making ethical judgments did she adopt? moral rights institutional justice utilitarian
ANSWER: A, Application, Difficult, p. 92 AACSB Ethics, Ethical Responsibilities
102. ICI gets more than 30 percent of its sales from the United States. From its U.S. headquarters near Cleveland, Ohio it makes _________________. paint products chemicals for the wine industry explosives pharmaceuticals
ANSWER: A, Application, Difficult, pp. 175-176 AACSB Reflective Thinking, Creation of Value
78. Anne Reeves has just accepted a management position with a local oil and gas company in Detroit, Michigan. She wants to adopt the findings of the Hawthorne studies in her management philosophy. Therefore, Reeves will recognize that ____________ have (has) a significant influence on employee productivity. peer pressure physiological demands financial controls management demands
ANSWER: A, Application, Difficult, pp. 55-56 AACSB Analytic, Creation of Value
53. In the video game industry, the cost of hiring personnel to design games is great. This is an important factor relating to __________. capital requirement profit maximization product differentiation economy of scale
ANSWER: A, Application, Easy, p. 130 AACSB Reflective Thinking, Environmental Influence
19. The divine right of kings is characteristic of ___________ authority. a. traditional b. charismatic rational-legal both b and c
ANSWER: A, Application, Easy, p. 44 AACSB Reflective Thinking, Individual Dynamics
70. Suzanne Wilson is involved in the strategic planning process for her Web development company. She is presently pondering such questions as: What business are we in? and What results do we want to achieve?" Which task in the business-level planning process is Wilson completing? a. Task 1 b. Task 2 Task 3 Task 4
ANSWER: A, Application, Easy, pp. 230-232 AACSB Reflective Thinking, Strategy
21. YUM! Brands is divided into five distinct restaurant brands for the purpose of serving the specialized needs of customers. What managerial function is being employed to achieve this type of clarity? a. organizing b. planning c. leading d. controlling
ANSWER: A, Application, Moderate, p. 10 AACSB: Reflective Thinking, Creation of Value
28. Michelle Gimbert, a regional vice-president for Chico's stores, allowed her store managers the freedom to run their operations as though they were separate businesses. By __________ in a new way, Gimbert was attempting to better coordinate the company's human and material resources. organizing controlling staffing planning
ANSWER: A, Application, Moderate, p. 10 AACSB: Reflective Thinking, Creation of Value
50. Mando Nava is responsible for translating top management policies into specific goals. Nava's position would best be classified as a __________. middle manager first-line employee section coordinator tactical supervisor
ANSWER: A, Application, Moderate, p. 12 AACSB: Reflective Thinking, Creation of Value
21. Paul Dyson is a new manager with Aztec, a company based in Mexico City, Mexico. Dyson was trained in American business, so on his first day with the company in Mexico, he delegated decision making for a new project to his subordinates. Dyson's delegation would most likely make his subordinates __________. a. uncomfortable b. grateful for the experience c. challenged d. excited for new opportunities
ANSWER: A, Application, Moderate, p. 157 AACSB Reflective Thinking, Creation of Value
95. Ian McFarlane is an employee with Charles Schwab. Top management believes that the benefits of local response will outweigh the extra costs of customizing. Charles Schwab has developed a __________ strategy. a. multidomestic b. global franchising international
ANSWER: A, Application, Moderate, p. 174 AACSB Reflective Thinking, Strategy
67. Clint Kubiak is opening a new business and is currently calculating the expenses that can be expected for each month during the next two years. Kubiak is developing the __________. a. new-venture plan b. balance sheet c. stockholder's report d. cash flow statement
ANSWER: A, Application, Moderate, p. 200 AACSB Reflective Thinking, Strategy
76. As a family business owner, an outside board of directors can help you do all of the following except __________. select the best possible job applicants evaluate your relationship with your banker strategic planning on a long-term basis make specific recommendations on large investments
ANSWER: A, Application, Moderate, p. 203 AACSB Reflective Thinking, Creation of Value
81. A manager quickly recognizes when changes in the industry create significant threats and opportunities. What competency is the manager demonstrating? strategic action planning and administration teamwork communication
ANSWER: A, Application, Moderate, p. 23 AACSB: Reflective Thinking, Creation of Value
21. Dr. Martin Luther King, Jr. was known for his ability to motivate and influence his followers. In fact, many of his followers even suspended their own judgment while working for Dr. King. This illustrates Dr. King's exercise of _____________ authority. a. charismatic b. traditional rational-legal referent
ANSWER: A, Application, Moderate, p. 44 AACSB Reflective Thinking, Individual Dynamics
36. Jenny Gruber, regional director of accounting and finance for Marriott International, says, "I have to rely more on the professionalism and commitment of my people than on rules and regulations." This is an indication of which drawback of bureaucracy? a. incompatibility with workers' values b. protection of authority c. incompatibility with changing technology d. slow decision making
ANSWER: A, Application, Moderate, p. 48 AACSB Reflective Thinking, Individual Dynamics
57. Lisa Schulte believes that managers have the right to give orders in an effort to get things done. Schulte believes in Fayol's __________ principle. authority unity of command centralization unity of direction
ANSWER: A, Application, Moderate, p. 51 AACSB Analytic, Creation of Value
92. Managers in Motorola's marketing department are constantly attempting to develop new products or services to satisfy customers' telecommunications desires. It monitors what competitors are doing and then develops ways to deliver better quality and service at a lower price. Motorola has adopted a(n) _____________system. a. open b. routine hierarchical closed
ANSWER: A, Application, Moderate, p. 58 AACSB Reflective Thinking, Creation of Value
87. At a university, ____________ would not be included as an input in the systems viewpoint. reading assignments building students faculty
ANSWER: A, Application, Moderate, p. 58 AACSB Reflective Thinking, Creation of Value
80. Charles Schwab uses a __________ process to introduce new customer service representatives to its philosophy of non-commission, low pressure sales of stocks and funds socialization symbolic control democratic leadership servant leadership
ANSWER: A, Application, Moderate, pp. 135-136 AACSB Reflective Thinking, Environmental Influence
83. To ensure that the Social Security system is properly funded, AARP has pressured Congress to make adjustments in contribution rates and in annual cost of adjustments. AARP is following the ____________ strategy. a. lobbying b. representation c. socialization d. communication
ANSWER: A, Application, Moderate, pp. 136-137 AACSB Reflective Thinking, Environmental Influence
9. Personal values that shape American culture include all of the following except __________. uncertainty avoidance honesty respect for other people achievement
ANSWER: A, Application, Moderate, pp.80-81 AACSB Ethics, Ethical Responsibilities
68. Communication competency is featured in the Container Store's "do-unto-others" philosophy in all of the following except: a. specialized information technology systems b. formal training for all employees c. management commitment to sharing information d. sales and presentation skills
ANSWER: A, Application, Moderate. p. 18 AACSB: Communication, Creation of Value
47. Which of the following is a middle manager not likely to do? encourage first-line managers to voice their concerns directly to top management establish target dates for product completion set performance standards coordinate her activities with other middle managers
ANSWER: A, Knowledge, Difficult, p. 12 AACSB: Analytic, Creation of Value
10. The founders of bureaucratic management, scientific management, and administrative management came from what countries? a. Germany, the United States, and France b. Germany, Great Britain, and Spain c. Japan, Germany, and Ireland d. England, Japan, and the United States
ANSWER: A, Knowledge, Difficult, p. 43 AACSB Analytic, Creation of Value
27. _______________ has the least amount of bureaucracy of the organizations listed below. a. MP3 IRS The Ford assembly-line plant McDonald's
ANSWER: A, Knowledge, Difficult, p. 46 AACSB Analytic, Strategy
70. Mary Parker Follett studied how managers did their jobs by observing them at work. She developed principles of coordination for managers to apply. Which of the following is not one of the principles of coordination? Coordination is best achieved when the people responsible for making a decision are working autonomously. Coordination must be worked at continuously. Coordination should address all of the factors in a situation. Coordination during the early stages of planning and project implementation is essential.
ANSWER: A, Knowledge, Difficult, p. 54 AACSB Analytic, Creation of Value
82. Which of the following is not a basic assumption of the behavioral viewpoint? Employees need to be coerced to work, which causes a greater emphasis on management demands versus peer pressure. Managers need to involve subordinates in coordinating work to improve efficiency. Employees are most likely to respond to managers who can help them satisfy their needs. Employees are motivated by social needs and get a sense of identity through their associations with one another.
ANSWER: A, Knowledge, Difficult, p. 57 AACSB Analytic, Creation of Value
111. Deming believed that poor quality is _____ percent a management problem and _____ percent a worker problem. 85, 15 15, 85 60, 40 50, 50
ANSWER: A, Knowledge, Difficult, p. 64 AACSB Analytic, Creation of Value
17. All of the following are reasons managers plan except: coordinating human, material, and information resources. establishing an overall direction for the organization's future. identifying and committing the organization's resources to achieving its goals. deciding which tasks must be done to reach those goals.
ANSWER: A, Knowledge, Difficult, p. 9 AACSB: Analytic, Creation of Value
40. The utilitarian approach prescribes ethical standards for managers and employees in three areas. Which of the following is not one of the three key areas? environmental protection conflicts of interest organizational goals organizational efficiency
ANSWER: A, Knowledge, Difficult, p. 91 AACSB Ethics, Ethical Responsibilities
46. The utilitarian approach is most consistent with all of the following values except __________. equality self-interest competition profit maximization
ANSWER: A, Knowledge, Difficult, p. 93 AACSB Ethics, Ethical Responsibilities
80. Which of the following are not secondary stakeholders? employees unions political action groups All of the above are secondary stakeholders.
ANSWER: A, Knowledge, Difficult, p. 99 AACSB Ethics, Ethical Responsibilities
27. A high degree of __________ would cause employees to avoid disagreements with their bosses. a. power distance b. uncertainty avoidance collectivist culture femininity
ANSWER: A, Knowledge, Difficult, pp. 123-124 AACSB Analytic, Environmental Influence
2. Grupo Bimbo's extensive _________________ creates a competitive advantage for the company. a. distribution network b. communication channels c. product development d. low cost
ANSWER: A, Knowledge, Difficult, pp. 149-150 AACSB Analytic, Creation of Value
76. Which of the following is false concerning the teamwork competency? There should be a distinction between the team members and the team leader. Designing a team is the first step for any team project. Managers need to pay attention to team dynamics. Teams that perform well have leaders who act as a coach, counselor, and mentor to other team members.
ANSWER: A, Knowledge, Difficult, pp. 20-21 AACSB: Analytic, Creation of Value
50. Scientific management disciplines believed that management principles should be based on ______________. fact and observation rules and regulations computer modeling mathematical modeling
ANSWER: A, Knowledge, Difficult, pp. 50-51 AACSB Analytic, Creation of Value
3. The general environment is also referred to as . a. the macroenvironment b. the microenvironment the macrosystem an uncertainty
ANSWER: A, Knowledge, Easy, p. 115 AACSB Analytic, Environmental Influence
38. The _______________ value dimension reflects the division of labor among men and women in a society. masculinity femininity individualism collectivism
ANSWER: A, Knowledge, Easy, p. 126 AACSB Analytic, Environmental Influence
37. _______________ is a more nurturing, people-oriented approach to life. Femininity Masculinity Individualism Collectivism
ANSWER: A, Knowledge, Easy, p. 126 AACSB Analytic, Environmental Influence
55. Setting the overall direction of an organization is the responsibility of top managers. middle managers. first-line managers. task forces.
ANSWER: A, Knowledge, Easy, p. 13 AACSB: Analytic, Creation of Value
51. ___________ is uniqueness in quality, price, design, brand image, or customer service that gives one firm's product an edge over another firm's. Product differentiation Price differentiation Focus Economies of scale
ANSWER: A, Knowledge, Easy, p. 130 AACSB Analytic, Environmental Influence
66. An attempt to influence government decisions by providing officials with information on the anticipated effects of legislation or regulatory rulings is known as __________. lobbying compromise affective conflicts representation
ANSWER: A, Knowledge, Easy, p. 133 AACSB Analytic, Environmental Influence
25. _________________ is the probability that governmental decisions or events in a country will negatively affect the long-term profitability of an investment. a. Political risk b. Domestic conflict c. Diplomatic immunity d. Political climate
ANSWER: A, Knowledge, Easy, p. 160 AACSB Analytic, Creation of Value
36. All of the following are considered to be a part of a country's infrastructure, except ___________. a. wages b. roads airports electricity
ANSWER: A, Knowledge, Easy, p. 161 AACSB Analytic, Creation of Value
39. Frederick Taylor thought that there was one best way to perform any task. He also thought that the company should be run by routine and efficient methods. One way to make a task more routine and efficient is through _______________. a. time-and-motion studies b. better machinery better lighting an organic approach
ANSWER: A, Knowledge, Easy, p. 49 AACSB Analytic, Individual Dynamics
43. Advocates of scientific management believe in a concept called _____________ that links each foreman's area of specialization to that foreman's scope of authority. a. functional foremanship b. division of labor unity of command authority
ANSWER: A, Knowledge, Easy, p. 50 AACSB Analytic, Individual Dynamics
65. A key feature of the behavioral viewpoint is the emphasis on . the human aspects of the organization motivating workers through use of economic incentives mathematical modeling of organizational processes standardizing employees' behavior
ANSWER: A, Knowledge, Easy, p. 53 AACSB Analytic, Creation of Value
84. The systems viewpoint of management represents an approach to solving problems by ________________. diagnosing inputs, transformation processes, outputs, and feedback focusing on the individual to solve problems looking at the scheduling routines of businesses, such as in the airline industry examining the social structure of a team assigned to the problem
ANSWER: A, Knowledge, Easy, p. 58 AACSB Analytic, Creation of Value
98. A blog is a _____________________. a. journal that is available on the web b. conversation between a manager and a subordinate c. text message between two people using cell phones d. news communication by any major news organization
ANSWER: A, Knowledge, Easy, p. 59 AACSB Analytic, Creation of Value
107. Phillips is using India as a test country to see if it can sell new products to ____________ people. a. rural "poor" b. multicultural c. sophisticated d. uneducated
ANSWER: A, Knowledge, Easy, p. 62 AACSB Analytic, Group Dynamics
109. _______________ is the continuous process of ensuring that every aspect of production builds quality into the product. Total Quality Management (TQM) Re-engineering The Deming Prize Six-sigma technology
ANSWER: A, Knowledge, Easy, p. 63 AACSB Analytic, Creation of Value
8. ______________ is the dominant pattern of living, thinking, and believing that is developed and transmitted by people, consciously or unconsciously, to subsequent generations. a. Culture b. Environment c. Ethical behavior d. Compliance
ANSWER: A, Knowledge, Easy, p. 80 AACSB Ethics, Ethical Responsibilities
38. The __________ approach emphasizes the consequences of providing the greatest good for the greatest number that is, the end justifies the means. utilitarian universal moral rights means-end
ANSWER: A, Knowledge, Easy, p. 91 AACSB Ethics, Ethical Responsibilities
70. The __________ principle morally requires that decisions and behavior be based on universal principles associated with being a responsible member of society. natural duty stakeholder individualism collectivism
ANSWER: A, Knowledge, Easy, p. 97 AACSB Ethics, Ethical Responsibilities
98. A(n) __________ strategy stresses worldwide consistency, standardization, and low relative cost. a. global b. multidomestic exporting multinational
ANSWER: A, Knowledge, Easy, pp. 175-176 AACSB Analytic, Strategy
33. The challenges that faced Jay Goltz, founder of the Goltz Group, are best described as affecting the __________________ competency. a. self-management b. teamwork c. communication d. multicultural
ANSWER: A, Knowledge, Easy, pp. 190-191 AACSB Analytic, Creation of Value
101. The __________ strategy emphasizes competing with all other firms in the industry by offering a product that customers perceive to be unique. differentiation cost leadership industry leadership related diversification
ANSWER: A, Knowledge, Easy, pp. 239-240 AACSB Analytic, Strategy
108. The __________ strategy involves competing in a specific industry niche by serving the unique needs of certain customers or a specific geographic market. focused differentiation focused cost leadership broad specialized
ANSWER: A, Knowledge, Easy, pp. 242-243 AACSB Analytic, Strategy
93. A firm committed to going beyond minimum compliance requirements and integrating corporate responsibility into broad governance, executive compensation and initiatives, and management policies is engaging in ___________ management. a. proactive b. defensive c. shareholder value d. disclosure
ANSWER: A, Knowledge, Moderate, p. 104 AACSB Ethics, Ethical Responsibilities
25. The framework of work-related values used in the text was developed by . a. Geert Hofstede b. Martin Luther King Max Weber Abraham Maslow
ANSWER: A, Knowledge, Moderate, p. 123 AACSB Analytic, Environmental Influence
36. ______________ is the degree to which assertiveness and the acquisition of money and material things are valued, as well as the degree of indifferences to others' quality of life. Masculinity Femininity Individualism Collectivism
ANSWER: A, Knowledge, Moderate, p. 126 AACSB Analytic, Environmental Influence
67. All of the following are identified as being represented by large Congressional lobbying efforts except __________. a. college students b. retired persons c. pharmaceutical manufacturers d. insurance industry
ANSWER: A, Knowledge, Moderate, p. 133 AACSB Analytic, Environmental Influence
65. The process by which two or more individuals or groups having both common and conflicting goals present and discuss proposals in an attempt to reach an agreement is known as __________. negotiation goal optimization alliance collaboration
ANSWER: A, Knowledge, Moderate, p. 133 AACSB Analytic, Environmental Influence
89. Clay Johnson, founder of Blue State Digital, created a company that will use global positioning in the 2008 presidential election to ____________. a. target key voters in states b. track the presidential candidates c. map out escape routes, if necessary d. audit voting histories
ANSWER: A, Knowledge, Moderate, p. 139 AACSB Analytic, Environmental Influence
93. The information superhighway represents a change in ____________ for all companies. technology competition suppliers customers
ANSWER: A, Knowledge, Moderate, p. 141 AACSB Analytic, Environmental Influence
69. The Planning and Administration Competency highlighted Mabe, an appliance company located in Mexico. Which of the following is not true? 20% of Mabe's employees working hours are spent in training. The average Mexican employee at Mabe works a 45-hour week. Mexico does not have labor unions whose goals are based on antimanagement ideologies. In Mexico, it is easy to find workers with at least a high school education.
ANSWER: A, Knowledge, Moderate, p. 168 AACSB Analytic, Creation of Value
89. To tap into a huge lower-middle-class market, Singer offered a _______plan to solve the cash problems faced by many customers who have income, but little access to credit cards or bank accounts. a. lease purchase b. layaway c. international discount d. loan
ANSWER: A, Knowledge, Moderate, p. 173 AACSB Analytic, Creation of Value
2. Denise Devine, president and CEO of Nutripharm, Inc., and Devine Foods, Inc., initially consulted with a group of chemists and others at ________________ who worked with her ideas and began developing them into products. Cornell University Northwestern University Harvard University Norwest Laboratories
ANSWER: A, Knowledge, Moderate, p. 183 AACSB Analytic, Creation of Value
15. Kohler Company is an example of what type of business? family-owned company that has diversified plumbing company that went public after 25 years company that improved on the already-invented bathtub family-owned company that exclusively offers plumbing products
ANSWER: A, Knowledge, Moderate, p. 187 AACSB Analytic, Creation of Value
19 The many studies of entrepreneurs that have been conducted over the years indicate that those who succeed have several characteristics in common. Which of the following is not one of the key characteristics? substantial financial backing desire to be independent willingness to make sacrifices need for achievement
ANSWER: A, Knowledge, Moderate, p. 189 AACSB Analytic, Creation of Value
40. Dale Crownover, president and CEO of Texas Nameplate Company (TNC), has created an environment where management and employees _____________. a. work together in teams b. operate autonomously c. follow strict conduct rules d. develop a code of ethics
ANSWER: A, Knowledge, Moderate, p. 193 AACSB Analytic, Creation of Value
59. Shane Beard, owner of FASTSIGNS, went to _________ for help with his business plan. a. SCORE b. Master Plans c. Capital Connection d. INC
ANSWER: A, Knowledge, Moderate, p. 198 AACSB Analytic, Creation of Value
62. Entrepreneurs have a tendency to __________ their income and __________ their costs. overestimate: underestimate focus on: ignore hide: inflate ignore: lose control of
ANSWER: A, Knowledge, Moderate, p. 199 AACSB Analytic, Individual Dynamics
87. When fostering corporate entrepreneurship activity, there should be a(n) __________. a. commitment from the firm's senior management b. threat of punishment for wasting company resources c. extensive pool of cash to support operations in case new ideas fail d. bureaucratic design
ANSWER: A, Knowledge, Moderate, p. 205 AACSB Analytic, Creation of Value
85. To be a successful corporate entrepreneur, a person must possess an attribute of __________. a. diplomacy b. financial savvy c. a focus on tactical issues d. eccentricity
ANSWER: A, Knowledge, Moderate, p. 205 AACSB Analytic, Individual Dynamics
2. MTV Networks' strategic move with regard to broadband included the ________channel. a. TurboNick b. VideoTunes c. CyberRace d. Gigaband
ANSWER: A, Knowledge, Moderate, p. 214 AACSB Analytic, Strategy
4. Strategic planning involves developing and analyzing all of the following except: a. daily tactical goals b. mission the internal environment the external environment
ANSWER: A, Knowledge, Moderate, p. 215 AACSB Analytic, Strategy
8. Within days of Hurricane Katrina, Mississippi's Power Company was able to make strides in restoring ____________ in the 23-county, 150-miles service area. e-mail and internal phone services television radio and communication none of the above
ANSWER: A, Knowledge, Moderate, p. 216 AACSB Analytic, Creation of Value
16. A(n) __________ should encourage the organization's members to think and act strategically—not just once a year but every day. a. mission statement b. HRM statement contingency plan operational tactic
ANSWER: A, Knowledge, Moderate, p. 217 AACSB Analytic, Leadership Principles
21. A key challenge for an organization is to develop ___________ that are(is) at least partially unique relative to competitors or to pursue strategies similar to those of competitors but in different ways. strategies a vision plans goals
ANSWER: A, Knowledge, Moderate, p. 218 AACSB Analytic, Strategy
72. Michael Porter designed a framework to diagnose competitive forces confronting a firm at any particular time. These forces include all of the following except __________. a. transformational bargaining power b. customer bargaining power c. supplier bargaining power d. threat of substitute products
ANSWER: A, Knowledge, Moderate, p. 232 AACSB Analytic, Strategy
82. From a business level perspective, ___________ fall(s) into three broad categories: superior technological know-how, reliable processes, and close relationships with external stakeholders. a. tactical planning b. core competencies strategic planning bargaining power of suppliers
ANSWER: A, Knowledge, Moderate, p. 234 AACSB Analytic, Strategy
103. Qara Argentina is a company that produces _________________. a. luxury leather-accessories b. high-end cosmetics c. personal data assistants d. wine
ANSWER: A, Knowledge, Moderate, p. 241 AACSB Analytic, Strategy
1. Howard Schultz, chairman of Starbucks, indicated that his greatest challenge was to a world-wide workforce. a. attract and manage b. train and engage c. mentor and evaluate d. none of the above
ANSWER: A, Knowledge, Moderate, p. 39 AACSB Analytic, Individual Dynamics
7. During 1886 more than 600,000 employees were out of work because of strikes and lockouts. On May 6, 1886, a group of labor leaders led a demonstration in which seven bystanders were killed. This event was known as (the) _______________. a. Haymarket Affair b. Chicago Riot Cold War Black Friday
ANSWER: A, Knowledge, Moderate, p. 41 AACSB Analytic, Creation of Value
procedures
ANSWER: A, Knowledge, Moderate, p. 47 AACSB Analytic, Group Dynamics
102. The essence of the contingency viewpoint is that management practices should be consistent with the requirement of the external environment, the technology used, and the _____________________. people who work for the organization customers who purchase products made the organization organization's external customers firms that supply inputs to an organization
ANSWER: A, Knowledge, Moderate, p. 61 AACSB Analytic, Creation of Value
114. Successfully offering high quality to customers typically results in important benefits for an organization. Which of the following is not typically one of these benefits? decreased external competition lower costs and higher market share decreased product and service liability a positive company image
ANSWER: A, Knowledge, Moderate, p. 66 AACSB Analytic, Creation of Value
2. According to the "Challenge of Managing" reading, Halliburton's dining halls in _________ reportedly served spoiled food to unsuspecting people. Iraq Houston Afghanistan Flower Mound
ANSWER: A, Knowledge, Moderate, p. 77 AACSB Ethics, Ethical Responsibilities
28. Monica Gadsby, CEO and managing director of Tapestry, has helped global marketers like _______ reach their diverse customer base. a. Procter & Gamble b. Microsoft c. Pepsi d. Intel
ANSWER: A, Knowledge, Moderate, p. 89 AACSB Ethics, Ethical Responsibilities
26. Once managers have defined goals for future performance, they must translate those relatively abstract desires into reality. The coordination effort to do this represents ____________. organizing planning controlling leading
ANSWER: A, Knowledge, Moderate, p. 9 AACSB: Analytic, Creation of Value
18. Managers can better coordinate human, material, and information resources by: a. organizing effectively. b. delegating issues. c. leading team members. d. focusing on issues.
ANSWER: A, Knowledge, Moderate, p. 9 AACSB: Analytic, Creation of Value
51. The ___________ approach addresses the fundamental rights and privileges as set forth in the first 10 amendments to the U.S. Constitution. moral rights bureaucratic legislative utilitarian
ANSWER: A, Knowledge, Moderate, p. 93 AACSB Ethics, Ethical Responsibilities
74. The ____________ ethical approach is most applicable to American organizations. utilitarian natural duty moral rights fairness
ANSWER: A, Knowledge, Moderate, p. 98 AACSB Ethics, Ethical Responsibilities
12. Actions that managers can take to respond to environmental concerns include all of the following except __________. a. confront environmental groups b. recognize that environmental regulations are here to stay c. set measurable goals for environmental improvements d. give a senior-level person well-defined environmental responsibilities
ANSWER: A, Knowledge, Moderate, pp. 119-120 AACSB Analytic, Environmental Influence
42. Robert Iger, CEO of Disney, went to ______________ to see firsthand the problems that Disney might encounter trying to enter this country. a. China b. Japan c. Austria d. Sweden
ANSWER: A, Knowledge, Moderate, pp. 127-128 AACSB Analytic, Environmental Influence
60. Nintendo teamed up with electronics giant ___________ to launch a machine that played variations of Pong. a. Mitsubishi b. Panasonic Sanyo Westinghouse
ANSWER: A, Knowledge, Moderate, pp. 131-132 AACSB Analytic, Environmental Influence
60. Which of the following is not one of the questions a person should ask when making a decision whether to start or buy a new business? a. To what extent can I keep the creation of the new business a secret from my current employer? b. Can I run the company at first as a home-based business? c. Can I continue working for someone else and put in time on my own business after hours? d. Is there a way that I can begin the enterprise in stages or with a limited investment?
ANSWER: A, Knowledge, Moderate, pp. 198-199 AACSB Analytic, Individual Dynamics
100. Mike Wichern, a manager, is willing to continually unlearn and relearn as changed situations call for new skills and perspectives. Wichern is demonstrating the _____________ competency. self-management multicultural teamwork strategic action
ANSWER: A, Knowledge, Moderate, pp. 27-28 AACSB: Analytic, Creation of Value
24. Starbucks attributes its success to the managerial function of ______________, which includes control procedures such as the criteria used to hire people, the type of coffee beans used, and the physical layout of stores. a. planning b. controlling c. directing d. organizing
ANSWER: B, Application, Difficult, p. 10 AACSB: Reflective Thinking, Creation of Value
9. Wal-Mart provides Procter & Gamble (P&G) with daily information on what is selling in which stores. P&G, in return, restocks Wal-Mart's shelves as needed. Wal-Mart achieves greater sales and a reduction in inventory carrying costs. This is an illustration of ______________. the limitations of geographic borders the importance of information and the delivery of service environmental stewardship a joint venture between Wal-Mart and P&G
ANSWER: B, Application, Difficult, p. 118 AACSB Reflective Thinking, Environmental Influence
76. First National Bank encourages its branch managers to participate in voluntary community associations, such as the Chamber of Commerce or United Way, that might solidify its reputation as well as bring in new customers. The bank is using the __________ strategy. negotiation representation lobbying socialization
ANSWER: B, Application, Difficult, p. 135 AACSB Reflective Thinking, Environmental Influence
43. Entrepreneurs with strong technical proficiency are aided by a ________ orientation. bureaucratic future desire to change society short term, tactical
ANSWER: B, Application, Difficult, p. 195 AACSB Reflective Thinking, Individual Dynamics
67. The Lincoln Mercury Division of Ford Motor Company has a business-level strategy based on quality. This requires that Brady Ware, a Lincoln Mercury Division manager, develop strong relationships with suppliers who can consistently provide high quality inputs. Ware is responsible for one of Ford's __________ strategies. a. operations b. functional-level business-level integration
ANSWER: B, Application, Difficult, p. 229 AACSB Reflective Thinking, Strategy
82. Yoshi Ando recognizes the management challenges of alternative strategies and addresses them. What dimension of strategic action competency describes Ando? understanding the organization taking strategic action understanding the industry prioritizing skill
ANSWER: B, Application, Difficult, p. 23 AACSB: Reflective Thinking, Creation of Value
14. Phyllis Chang is the information systems manager for a large bank. Her department processes large amounts of standardized information, uses routine and stable technology, and has stable and known customer needs. It would be most effective for Chang to use the _______________ managerial viewpoint. a. contingency b. bureaucratic administrative scientific
ANSWER: B, Application, Difficult, p. 43 AACSB Reflective Thinking, Individual Dynamics
35. Caterpillar believes that the company cannot afford to support a maze of corporate buck-passers. They have changed their system by focusing on customer satisfaction. Employees are able to swap essential information and determine what type of engine the customer wants. The text defines this as a positive step related to which of the following? a. professional values b. protection of authority decision making changing technology
ANSWER: B, Application, Difficult, p. 48 AACSB Reflective Thinking, Group Dynamics
85. Fulchu Li, an operations manager at Continental Airlines, requested that five extra aircraft be available for flying previously unscheduled charter flights from Los Angeles to San Francisco. Li's vice president denied the request because she knew that this use would delay several inspections of the aircraft, thereby disrupting the entire maintenance schedule. Which viewpoint has been applied? bureaucratic systems administrative traditional
ANSWER: B, Application, Difficult, p. 58 AACSB Analytic, Creation of Value
45. The choices by a respondent on the Managerial Values Profile suggest that he believes in helping those in danger when doing so would not unduly endanger oneself, and in minimizing inequities among employees in the job setting. What approach did he take when making ethical judgments? moral rights justice utilitarian constitutional
ANSWER: B, Application, Difficult, p. 92 AACSB Ethics, Ethical Responsibilities
58. Tara Nevotti feels that she has a moral obligation as a citizen to accept jury duty. Her employer has threatened to fire her if she serves as a juror. The firm knows that Nevotti can be released from jury duty because she has small children to care for when not at work. Nevotti's belief supports the right of __________. life and safety freedom of conscience truthfulness privacy
ANSWER: B, Application, Difficult, p. 96 AACSB Ethics, Ethical Responsibilities
37. Leslie Iler is a sales manager with Ford Motor Company. For the most part, Iler's subordinates see her as a team leader in their project. Iler's position represents a __________. component of a matrix organizational design first-line manager distinct division of staff and line positions component of a mechanistic organizational design
ANSWER: B, Application, Difficult, pp. 11-12 AACSB: Reflective Thinking, Creation of Value
62. Stephen Lee's typical business week includes using his own technical expertise in metal framing buildings, keeping good rapport with the community, knowing union and non-union hiring practices, supervising work crews, and monitoring the financial matters of his company. Lee is what type of manager? first-line manager a business owner who does all levels of managing middle manager top manager
ANSWER: B, Application, Difficult, pp. 13-14 AACSB: Reflective Thinking, Creation of Value
5. Burton Snowboards is __________ HeadBlade because __________. different from:Burton Snowboards was launched on the Internet different from: HeadBlade is something new similar to: both are sports related similar to: the entrepreneurs are from California
ANSWER: B, Application, Difficult, pp. 184-185 AACSB Reflective Thinking, Creation of Value
61. Betty Trant believes that well-defined rules will ensure efficient performance in her organization. This is consistent with all of the following management theorists except ______________. Frederick Taylor Henry Gantt Max Weber all of the above
ANSWER: B, Application, Difficult, pp. 51-53 AACSB Reflective Thinking, Creation of Value
30. Individuals in many societies enjoy the freedom of achieving wealth, prestige, and social status regardless of family background. These privileges are found in all of the following countries except __________. a. United States b. Malaysia Sweden Austria
ANSWER: B, Application, Easy, p. 124 AACSB Reflective Thinking, Environmental Influence
27. In his job with Microsoft, Piyali Ghosh monitors political events and decisions in Saudi Arabia to determine the likelihood that these events will adversely affect the profitability of Microsoft's investments in that country. Ghosh works to assess Microsoft's __________. economic risk political risk foreign conflict political climate
ANSWER: B, Application, Easy, p. 160 AACSB Reflective Thinking, Creation of Value
84. Tammy Ramos works for United Industries. Ramos' manager likes the work that Ramos does, believes she has vision, an ability to build and lead teams, and persistence. Ramos would probably make a good __________. charismatic leader corporate entrepreneur district manager salesperson
ANSWER: B, Application, Easy, p. 205 AACSB Reflective Thinking, Individual Dynamics
54. After a drug has been approved, the Food and Drug Administration (FDA) continues to monitor the drug and may require additional testing or removal of the drug from the marketplace, which could cost a company billions of dollars. This is an example of __________ that can affect the profitability of firms in an industry. capital requirements government regulation product differentiation lawsuits
ANSWER: B, Application, Moderate, p. 130 AACSB Reflective Thinking, Environmental Influence
Erin Hyslop works for a company and is compensated on an hourly basis. Her manager has asked her to be more conscientious about her individual productivity and punctuality. Hyslop probably works for a __________ company. a. Mexican b. U.S. Chinese British
ANSWER: B, Application, Moderate, p. 154 AACSB Reflective Thinking, Creation of Value
94. Molly Watson has convinced the management of Telco Products to adjust their product line and their business practices to meet the needs of the countries that purchase their products. Watson is asking her organization to adopt a(n) __________ strategy. a. global b. multidomestic exporting international
ANSWER: B, Application, Moderate, p. 174 AACSB Reflective Thinking, Strategy
25. Amy Knape is a young woman who wants to own her own business. Part of the reason she believes that she would be successful is that she has always had a desire for excellence and succeeding in competitive situations. Knape has a __________. low self-esteem high need for achievement high need for power low need for success
ANSWER: B, Application, Moderate, p. 189 AACSB Reflective Thinking, Individual Dynamics
24. Cinemagic Productions has decided to increase the number of horror-theme movies that it produces each year. To accomplish this goal, the company has increased its payroll budget and hired additional actors. Cinemagic Productions has engaged in __________. a. resource-based costing b. resource allocation resource planning resource execution
ANSWER: B, Application, Moderate, p. 218 AACSB Reflective Thinking, Strategy
48. Texas Union Gas and Electric provides utilities for three counties. The company recently started drilling its own gas wells in order to gain control over price and availability of product for its pipelines. Texas Union is following a strategy of __________. a. forward integration b. backward integration horizontal integration conglomerate diversification
ANSWER: B, Application, Moderate, p. 225 AACSB Reflective Thinking, Strategy
99. Jarrod Luke realizes that the forces affecting organizations are constantly changing. Thus, Luke sees __________ as a continuing and ongoing process. business-level strategy planning corporate-level strategy employee training
ANSWER: B, Application, Moderate, p. 239 AACSB Reflective Thinking, Strategy
12. Jason Liu has been studying the characteristics of bureaucratic management. ____________ is not one of the characteristics. a. Rationality b. Short-term career commitment c. Impersonality d. Hierarchical structure
ANSWER: B, Application, Moderate, p. 43 AACSB Reflective Thinking, Individual Dynamics
16. The Houston police department ranks jobs according to the amount of authority given to each job. Those in lower level positions are under the control and direction of those in higher level positions. This is an example of the bureaucratic management characteristic of ______________. rules hierarchical structure impersonality division of labor
ANSWER: B, Application, Moderate, p. 44 AACSB Reflective Thinking, Individual Dynamics
24. Debi Guarino has just accepted a sales position with Aprogenex Biotech Company. The firm uses job security, tenure, salary increases, and pensions to ensure that employees satisfactorily perform their assigned duties. This approach characterizes ___________. a. division of labor lifelong career commitment rationality hierarchical structure
ANSWER: B, Application, Moderate, p. 44 AACSB Reflective Thinking, Individual Dynamics
41. At Mattel, each task that operating employees perform is carefully studied in order to promote maximum efficiency and productivity. Often standardized work methods are implemented. Mattel appears to be using the ___________ viewpoint. a. systems b. scientific management behavioral contingency
ANSWER: B, Application, Moderate, p. 49 AACSB Analytic, Strategy
52. David Bell was studying the various aspects of the evolution of management. He discovered that the person most closely associated with administrative management was ___________________. Mary Parker Follett Henri Fayol Frederick Taylor Max Weber
ANSWER: B, Application, Moderate, p. 51 AACSB Analytic, Individual Dynamics
72. John Mackey, president of Whole Foods Supermarkets, believes that by placing responsibility and authority at the store and team level rather than at corporate headquarters, employees are encouraged to make decisions that affect their daily work. What theorist advocated this approach? Max Weber Mary Parker Follett Frederick Taylor Joan Woodward
ANSWER: B, Application, Moderate, p. 54 AACSB Reflective Thinking, Creation of Value
107. Pacific Fried Catfish Restaurant opened in Boston, Massachusetts to serve the needs of a small segment of the population that prefers fresh fried catfish to steamed lobster. Pacific Fried Catfish is following a _________ strategy. broad focused differentiation cost leadership specialized
ANSWER: B, Application, Moderate, pp. 242-243 AACSB Reflective Thinking, Strategy
14. There have been a number of demographic changes in the United States. For instance, by 2012 the percentage of women and people of color in the workforce is expected to _____. a. increase greatly b. increase slightly stay the same actually decline
ANSWER: B, Knowledge, Difficult, p. 120 AACSB Analytic, Environmental Influence
19. Many new workers expect more from their careers than their parents. This includes all of the following except _________. excitement earnings recognition security
ANSWER: B, Knowledge, Difficult, p. 121 AACSB Analytic, Environmental Influence
49. One of the most crucial principles used and evaluated by managers is the notion of economies of scale. This refers to __________. a. increases in per unit costs as the volume of goods and services produced by a firm increases b. decreases in per unit costs as the volume of goods and services produced by a firm increases c. decreases in per unit costs as the volume of goods and services produced by a firm decreases d. decreases in total costs as the volume of goods and services produced by a firm increases
ANSWER: B, Knowledge, Difficult, p. 129 AACSB Analytic, Environmental Influence
8. As domestic policies in many foreign countries are becoming more market-oriented, governments are opening their countries to multinational trade and joining regional trade associations. This has led to the emergence of __________. political forces that advocate a return to state-managed economies new strategic partnerships of foreign and domestic organizations corruption NAFTA
ANSWER: B, Knowledge, Difficult, p. 152 AACSB Analytic, Creation of Value
11. Which of the following statements is not true about Mexican society? Mexicans feel threatened by uncertain and ambiguous situations. Identifying yourself by title is considered rude. Preserving harmony and saving face is important. Consensus and social harmony is something to be sought.
ANSWER: B, Knowledge, Difficult, p. 154 AACSB Analytic, Creation of Value
26. Domestic instability and corruption are components of _____________. economic risk political risk foreign conflict political climate
ANSWER: B, Knowledge, Difficult, p. 160 AACSB Analytic, Creation of Value
35. Mark Harris has developed an interest in assessing the variables involved in the economic climate. He found that all of the following are included except ____________. a. government regulatory and economic control prices b. government inability to manage its own economic affairs c. government provision of support services d. government capabilities in general
ANSWER: B, Knowledge, Difficult, p. 161 AACSB Analytic, Creation of Value
1. According to the Challenge of Managing opening feature in the Fostering Entrepreneurship chapter, _____________ was the spark that made Denise Devine, president and CEO of Nutripharm, Inc., and Devine Foods, Inc., decide to take the chance on entrepreneurship. lack of money motherhood inheritance being laid off
ANSWER: B, Knowledge, Difficult, p. 183 AACSB Analytic, Creation of Value
27. Research conducted by David McClelland and others indicates that a low percentage of the U.S. population is characterized by __________. self-sacrifice need for achievement desire for independence entrepreneurship
ANSWER: B, Knowledge, Difficult, p. 189 AACSB Analytic, Creation of Value
6. Generally, no more than _____ potentially critical events should be emphasized in contingency planning. a. 1 b. 5 8 11
ANSWER: B, Knowledge, Difficult, p. 215 AACSB Analytic, Strategy
71. Which of the following environmental force(s) can represent significant threats or opportunities for an organization? a. financial resources b. competitors technological capabilities all of the above
ANSWER: B, Knowledge, Difficult, p. 232 AACSB Analytic, Strategy
99. In a competitive and highly dynamic work environment, the most difficult management challenge is predicted to be __________. a. task related learning b. balancing work and life issues c. communication competency d. maintaining integrity and ethics
ANSWER: B, Knowledge, Difficult, p. 27 AACSB: Analytic, Creation of Value
2. Which statement is false regarding Starbucks? It operates more than 8,500 stores in over 30 countries. The company's long-term expansion plans are to acquire Caribou Coffee. Starbucks has distributed more than $12 million to charitable organizations. One challenge of Starbucks is to decide whether the company should expand into food service.
ANSWER: B, Knowledge, Difficult, p. 39 AACSB Analytic, Creation of Value
9. Most large businesses in the newly industrialized United States in the early part of the nineteenth century began to experience problems that had previously only applied to _________________. a. agrarian economies b. governments c. European factories d. early Japanese factories
ANSWER: B, Knowledge, Difficult, p. 42 AACSB Analytic, Creation of Value
74. Which of the following statements is true according to the views of Chester Barnard? Successful management depends on avoiding relationships with those outside the organization. Managers' main roles are to communicate with employees and motivate them to work hard to help achieve the organization's goals. The organization should have an independent relationship with its suppliers. The external environment is not a major factor in the success of an organization.
ANSWER: B, Knowledge, Difficult, p. 54 AACSB Analytic, Creation of Value
115. Jeffrey Swartz, CEO of Timberland, believes that the idea of __________ is a vision around which he can create a more committed, productive, efficient, and loyal workforce. maximizing shareholder profits helping others delegating responsibility understanding strategy
ANSWER: B, Knowledge, Difficult, p. 67 AACSB Analytic, Creation of Value
12. Which of the following statements is false? Functional managers may be the head of a payroll department. Functional managers often oversee several general managers. Functional managers may be responsible for making sure that payroll checks are issued on time and in the correct amounts. General managers may be responsible for a strategic business unit or a division.
ANSWER: B, Knowledge, Difficult, p. 8 AACSB: Analytic, Creation of Value
17. Through Section 806 of the Sarbanes-Oxley Act, Federal law provides protection to all of the following except __________. whistle-blowers corporate officers shareholders employees
ANSWER: B, Knowledge, Difficult, p. 83 AACSB Ethics, Ethical Responsibilities
47. According to the utilitarian approach, managers and employees alike should try to attain organizational goals as efficiently as possible. How is efficiency achieved? maximizing inputs minimizing land, labor, and capital to produce maximum outputs producing goods and services at a triangulation cost ratio avoiding moving production overseas to obtain lower wages and fewer regulations
ANSWER: B, Knowledge, Difficult, p. 93 AACSB Ethics, Ethical Responsibilities
68. An organization and its employees have obligations (responsibilities) under the fairness principle. These mutual obligations should satisfy all of the following criteria except __________. employees cannot be forced to work for a particular organization employees and employers share a common interest in the welfare of their customers employers should not be forced to hire a particular person rules should specify what both the employee and the organization are required to do
ANSWER: B, Knowledge, Difficult, p. 97 AACSB Ethics, Ethical Responsibilities
71. Which of the following is not a universal obligation of the natural duty principle? To help others who are in need, provided that the help can be given without excessive personal risk or loss. To share with management a common interest in the survival of the organization. Not to harm or injure another. Not to cause unnecessary suffering.
ANSWER: B, Knowledge, Difficult, p. 97 AACSB Ethics, Ethical Responsibilities
43. The Chinese government restricts media ownership and controls the news on all of China's 358 television stations and 2,119 newspapers. This is an example of the ______________ cultural value. a. collectivism b. power distance c. uncertainty avoidance d. long-term orientation
ANSWER: B, Knowledge, Difficult, pp. 127-128 AACSB Analytic, Environmental Influence
57. Top managers _ ________. a. supervise employees with specialized skills that are applied in narrow areas b. are responsible for the overall direction and operations of an organization c. are responsible for the operation of an entire department d. are responsible for the day-to-day operations of a division
ANSWER: B, Knowledge, Difficult, pp. 13-14 AACSB: Analytic, Creation of Value
71. Which of the following is not considered a component of the planning and administration competency? time management arbitration and mediation information gathering, analysis, and problem solving budgeting and financial management
ANSWER: B, Knowledge, Difficult, pp. 18-19 AACSB: Analytic, Creation of Value
26. A person's desire either for excellence or to succeed in competitive situations is often referred to as a person's _________. need for power need for achievement superego ego
ANSWER: B, Knowledge, Easy, p. 189 AACSB Analytic, Creation of Value
16. Today's most successful entrepreneurs were recently asked to explain why they started their own companies. What statement below ranked as the number one reason these entrepreneurs started their own business? to make money work for themselves and control their own lives being laid off from their old job not feeling rewarded in their old job
ANSWER: B, Knowledge, Difficult, pp. 187-188 AACSB Analytic, Creation of Value
53. Employees, customers, and the general public have the right not to have their lives and safety unknowingly and unnecessarily endangered. Which of the following is not true concerning this right? The U.S. Occupational Safety and Health Act of 1970 contained new safety requirements. OSHA requirements are applicable to all U.S. companies, including those with factories in foreign countries. Regulations were established restricting the use of asbestos and lead-based paint. All of the above statements are true.
ANSWER: B, Knowledge, Difficult, pp. 93-94 AACSB Ethics, Ethical Responsibilities
61. To ensure just decisions and behavior, the proponents of the justice approach argue that key principles should be followed when designing management systems and making organizational decisions. Which of the following is not among these key principles? distributive justice principle law and equality principle procedural fairness principle natural duty principle
ANSWER: B, Knowledge, Difficult, pp. 96-97 AACSB Ethics, Ethical Responsibilities
65. There are concerns about the increased and substantial disparity between the compensation packages that CEOs receive and the pay levels of everyone else. This disparity seems directly contradictory to the ______________ principle. natural duty distributive justice collectivism individualism
ANSWER: B, Knowledge, Difficult, pp. 96-97 AACSB Ethics, Ethical Responsibilities
83. Johnson & Johnson invests, develops, and produces _______________. a. computers b. health-care products c. periodicals d. running shoes
ANSWER: B, Knowledge, Easy, p. 100 AACSB Ethics, Ethical Responsibilities
88. Sustainable development refers to the organization's __________. profitability environmental policy human resources debt burden
ANSWER: B, Knowledge, Easy, p. 102 AACSB Ethics, Ethical Responsibilities
33. Managers are often classified into these major types: monitors, leaders, and coordinators top managers, middle managers, and first-line managers assistants, associates, and executives presidents, vice presidents, and directors
ANSWER: B, Knowledge, Easy, p. 11 AACSB: Analytic, Creation of Value
5. The government, acting as a watchdog in the U.S. political system, provides direction in all of the following areas except __________. a. defense b. strategies used by organizations environmental matters antitrust
ANSWER: B, Knowledge, Easy, p. 116 AACSB Analytic, Environmental Influence
41. Typical job titles of middle managers include all of the following except: a. department head b. sales manager c. director of finance d. All of the above are considered job titles for middle managers.
ANSWER: B, Knowledge, Easy, p. 12 AACSB: Analytic, Creation of Value
21. Cultural values are not transferred __________. across organizations genetically within countries by ethnicity
ANSWER: B, Knowledge, Easy, p. 122 AACSB Analytic, Environmental Influence
72. A combined effort involving two or more organizations, groups, or individuals to achieve common goals with respect to a particular issue is known as a(n) . matrix alliance industry network
ANSWER: B, Knowledge, Easy, p. 134 AACSB Analytic, Environmental Influence
84. The knowledge, tools, techniques, and actions used to transform ideas, information, and materials into finished goods and services is known as . strategic alliance technology venturing imaging
ANSWER: B, Knowledge, Easy, p. 137 AACSB Analytic, Environmental Influence
15. ______________ serve(s) to bind as well as to separate cultures. The Euro Language Quotas Status systems
ANSWER: B, Knowledge, Easy, p. 154 AACSB Analytic, Creation of Value
29. The amount of subversion, revolution, assassinations, guerrilla warfare, and government crisis in a country is referred to as __________. a. international stability b. domestic instability foreign conflict political climate
ANSWER: B, Knowledge, Easy, p. 160 AACSB Analytic, Creation of Value
39. _________ are not an example of protectionism. a. Tariffs b. Joint ventures Quotas Cartels
ANSWER: B, Knowledge, Easy, p. 162 AACSB Analytic, Creation of Value
49. A payment made to ensure that the recipient does not harm the payer in some way is known as a(n) __________. a. grease payment b. extortion intrinsic reward bribe
ANSWER: B, Knowledge, Easy, p. 163 AACSB Analytic, Creation of Value
45. An alliance of producers engaged in the same type of business, formed to limit or eliminate competition, is known as a __________. a. subsidy b. cartel joint venture global strategy
ANSWER: B, Knowledge, Easy, p. 163 AACSB Analytic, Creation of Value
52. Small payments used to get lower level government employees to speed up required paperwork are known as __________. a. bribes b. grease payments extortion subsidies
ANSWER: B, Knowledge, Easy, p. 164 AACSB Analytic, Creation of Value
77. _____________ refers to the structure of the organization and the amount of coordination required to deliver a product or service to customers. Integration Complexity Differentiation Resource commitment
ANSWER: B, Knowledge, Easy, p. 170 AACSB Analytic, Creation of Value
82. Countertrade is a particularly effective way of trading with countries that have _________. a. human rights sanctions against them b. imposed certain counter purchase obligations on vendors hyperinflation free trade agreements
ANSWER: B, Knowledge, Easy, p. 171 AACSB Analytic, Creation of Value
86. __________ is a special type of licensing agreement whereby an organization provides the product, technology, process and/or trademark, and most of the marketing program. a. Branding b. Franchising Exporting Countertrade
ANSWER: B, Knowledge, Easy, p. 172 AACSB Analytic, Creation of Value
88. _________ is a company that serves more than 100 companies by combining the intelligence of human investigators and its own software to reconstruct the context that is vital to making sense of cryptic communications. a. Eagle Eye b. Cataphora c. Weida Communications d. Fortress
ANSWER: B, Knowledge, Moderate, p. 139 AACSB Analytic, Environmental Influence
90. Using an engineering workstation and advanced software, Levi Strauss has successfully used computer-assisted design systems to __________. eliminate its advertising agency design customized leather outfits and jeans for customers achieve zero defects in all factories simultaneously design next-generation manufacturing facilities
ANSWER: B, Knowledge, Moderate, p. 140 AACSB Analytic, Environmental Influence
6. The globalization of business has placed a premium on ____________. a. tariffs b. information free trade worker fringe benefits
ANSWER: B, Knowledge, Moderate, p. 151 AACSB Analytic, Creation of Value
9. The people of many non-Western cultures, such as those of India, Saudi Arabia, and China, view change as __________. a. rapid b. slow turbulent stable
ANSWER: B, Knowledge, Moderate, p. 153 AACSB Analytic, Creation of Value
18. When Coca-Cola first marketed Coke in China in the 1920s, it developed a group of Chinese characters that when translated meant ______________. bring your ancestors back from the dead bite the wax tadpole our drink leaves you nothing to hope for get loose with our drink
ANSWER: B, Knowledge, Moderate, p. 155 AACSB Analytic, Creation of Value
40. The primary purpose of a tariff is to __________. a. create a "level playing field" b. raise the price of imported goods subsidize domestic industries create tax revenue
ANSWER: B, Knowledge, Moderate, p. 162 AACSB Analytic, Creation of Value
44. The U.S. government subsidizes commercial project investors in developing countries through the Overseas Private Investment Corporation (OPIC). Which of the following are not protections included in this program? a. political risk insurance b. credit risk seizure of assets damage from war, revolution, or insurrection
ANSWER: B, Knowledge, Moderate, p. 163 AACSB Analytic, Creation of Value
59. The __________ principle ensures each member country that it will not be forced to reduce tariffs unilaterally. a. transparency b. reciprocity matrix escape most favored nation
ANSWER: B, Knowledge, Moderate, p. 165 AACSB Analytic, Creation of Value
54. The first GATT was signed by _____ countries in 1947. a. 9 b. 23 66 123
ANSWER: B, Knowledge, Moderate, p. 165 AACSB Analytic, Creation of Value
64. __________ plants are foreign-owned industrial plants located in Mexico that border the U.S. states of Texas, New Mexico, Arizona, and California. a. Border-state b. Maquiladora Southwestern Matamoras
ANSWER: B, Knowledge, Moderate, p. 166 AACSB Analytic, Creation of Value
73. A major stage of the European Union program has been to complete formation of the common internal market. This involves eliminating all of the following except _________ barriers. a. physical b. nationalistic technical fiscal
ANSWER: B, Knowledge, Moderate, p. 169 AACSB Analytic, Creation of Value
76. The strategies that are available to organizations for conducting international business range from low to high in _______________ and _______________. costs: revenues complexity: resource commitment exporting: importing simplicity: complexity
ANSWER: B, Knowledge, Moderate, p. 170 AACSB Analytic, Creation of Value
80. When a domestic firm wants to move toward global operations, its first policy should be to __________. study the effects of currency exchange build a global customer base acquire basic language skills find a partner in the desired country
ANSWER: B, Knowledge, Moderate, p. 170 AACSB Analytic, Creation of Value
79. Maintaining facilities in a home country and transferring goods and services abroad for sale in foreign markets is known as a(n) _________ strategy. a. multinational b. exporting importing franchising
ANSWER: B, Knowledge, Moderate, p. 170 AACSB Analytic, Strategy
20. Research has found that successful entrepreneurs possess a strong __________ which sets them apart from a majority of the population. need for affiliation need for achievement ability to tolerate high risk ability to make fast decisions
ANSWER: B, Knowledge, Moderate, p. 189 AACSB Analytic, Creation of Value
29. Which of the following is false concerning the role of self-confidence in entrepreneurship? Because of the risks involved in running an entrepreneurial organization, having an "upbeat" attitude is essential. It has minimal affect on the entrepreneur. It enables the entrepreneur to be optimistic in representing the firm to employees and customers alike. All of the above are true statements.
ANSWER: B, Knowledge, Moderate, p. 189 AACSB Analytic, Creation of Value
36. What is the relationship of the original business plan to long-term goal achievement? You cannot be successful without a detailed business plan. Modify the plan when flexibility is needed. The business plan is a hindrance to creativity. all of the above
ANSWER: B, Knowledge, Moderate, p. 191 AACSB Analytic, Creation of Value
41. Texas Nameplate Company (TNC) was the first small business to win the _________ twice. a. President's Quality Award b. Malcolm Baldridge National Quality Award c. Tri-State Regional Quality Award d. Centennial Quality Award
ANSWER: B, Knowledge, Moderate, p. 193 AACSB Analytic, Creation of Value
42. Katie Sutliff, Ethics Officer with the Ethics Resource Center, usually asks her co-workers: a. Do you feel that any more needs to be done? b. Would you feel comfortable confronting him/her directly? c. Does that accurately represent and address your concern? d. All of the above are questions asked of her co-workers
ANSWER: B, Knowledge, Moderate, p. 194 AACSB Analytic, Ethical Responsibilities
45. An outline of how an enterprise expects to turn ideas into reality is often referred to as a __________. strategy business plan tactic disclosure statement
ANSWER: B, Knowledge, Moderate, p. 195 AACSB Analytic, Creation of Value
47. All of the following are found in a business plan except __________. marketing component intention component location component management component
ANSWER: B, Knowledge, Moderate, p. 196 AACSB Analytic, Creation of Value
73. The top recommendation for increasing the likelihood of a successful family business is to __________. a. draw up a legal agreement on disposing of the business b. settle conflicts as they come up c. select a board of directors made up of family members to protect family interests d. decide who is responsible for what activity
ANSWER: B, Knowledge, Moderate, p. 203 AACSB Analytic, Creation of Value
equity
ANSWER: B, Knowledge, Moderate, p. 203 AACSB Analytic, Creation of Value
83. For corporate entrepreneurs to be successful, they must build a team that supports the new idea. One of the keys to success in team building is to __________. use grand metaphors avoid win-lose conflicts encourage competitive conflict rely on monetary incentives
ANSWER: B, Knowledge, Moderate, p. 205 AACSB Analytic, Creation of Value
20. The major courses of action (choices) that an organization takes to achieve its goals are called __________. a. contingency plans b. strategies operational plans tactical plans
ANSWER: B, Knowledge, Moderate, p. 218 AACSB Analytic, Strategy
28. __________ refers to the variety of goods and/or services produced by an organization and the number of different markets it serves. a. Adaptation b. Diversification Strategy Functionality
ANSWER: B, Knowledge, Moderate, p. 219 AACSB Analytic, Strategy
46. __________ is not a common growth strategy. a. Backward integration b. Vertical integration Horizontal diversification Conglomerate diversification
ANSWER: B, Knowledge, Moderate, p. 225 AACSB Analytic, Strategy
56. All of the following are examples of related diversification except __________. a. a general set of customers b. incompatible managerial skills overlapping distribution channels similar technology
ANSWER: B, Knowledge, Moderate, p. 226 AACSB Analytic, Strategy
66. Functional-level plans and strategies should be designed to __________ business-level strategies and plans. reinforce support compensate for compete with
ANSWER: B, Knowledge, Moderate, p. 229 AACSB Analytic, Strategy
63. Which of the following questions is not one that management must address when planning and formulating strategies that focus on customers? Who will be served? How will our technology needs change? How will customers' needs be satisfied? What customer needs will be satisfied?
ANSWER: B, Knowledge, Moderate, p. 229 AACSB Analytic, Strategy
80. Strategic action competency includes all of the following except: a. understanding the organization. b. balancing work and life issues. c. anticipation of competitive trends. d. understanding the industry.
ANSWER: B, Knowledge, Moderate, p. 23 AACSB: Analytic, Creation of Value
77. __________ limit(s) the price that firms in a particular industry can charge for their products without risking a loss in sales. a. Rivalry among firms b. Substitutes New entrants Competitors
ANSWER: B, Knowledge, Moderate, p. 234 AACSB Analytic, Strategy
96. The need to address the issue of ________________ at Bombardier Aerospace began in earnest in 2001 when the aerospace industry took a nosedive. a. global positioning b. employee engagement c. organizational structure d. employee productivity
ANSWER: B, Knowledge, Moderate, p. 238 AACSB Analytic, Strategy
104. Amanda Knauer, founder of Qara Argentina, discovered that several leather tanneries she visited were __________ their prices to her. a. reducing b. inflating c. not providing d. converting
ANSWER: B, Knowledge, Moderate, p. 241 AACSB Analytic, Strategy
110. In the integrated strategy model, vehicles attempt to answer the question a. "Where will the firm be active?" b. "How will the firm get there?" c. How will the firm excel?" d. "How will the firm obtain profits?"
ANSWER: B, Knowledge, Moderate, p. 244 AACSB Analytic, Strategy
101. Employees who fail to take advantage of development and training opportunities offered by the organization are considered derailed. The most common reasons for derailment are all of the following except: a. problems with interpersonal relationships b. having too broad of a functional perspective c. inability to lead a team d. inability to learn, develop, and adapt
ANSWER: B, Knowledge, Moderate, p. 27-28 AACSB: Analytic, Creation of Value
31. Pulte Homes builds more than __________ homes a day in 54 metro markets spanning 28 states. 50 100 250 400
ANSWER: B, Knowledge, Moderate, p. 47 AACSB Analytic, Strategy
42. Frederick Taylor thought that _____________. a well lighted workplace motivated employees to work to their capacity money motivated employees to work to their capacity fringe benefits motivated employees to work to their capacity periodic rest breaks motivated employees to work to their capacity
ANSWER: B, Knowledge, Moderate, p. 49 AACSB Analytic, Individual Dynamics
47. _________ focused on "control" systems for production scheduling. a. Frank Gilbreth b. Henry Gantt Henri Fayol Frederick Taylor
ANSWER: B, Knowledge, Moderate, p. 50 AACSB Analytic, Individual Dynamics
63. The focus of scientific management is on _____________. the whole organization the employee the manager the environment
ANSWER: B, Knowledge, Moderate, p. 52 AACSB Analytic, Creation of Value
59. Traditional management does not recognize workers' need for ___________. protection from abuse by employers social relationships job security career progression
ANSWER: B, Knowledge, Moderate, p. 52 AACSB Analytic, Individual Dynamics
66. The behavioral viewpoint, a 20th century phenomenon, was influenced by: civil rights labor unions higher education World War II
ANSWER: B, Knowledge, Moderate, p. 53 AACSB Analytic, Creation of Value
80. TDIndustries (TDI) has created a culture of teamwork that promotes high performance and longevity based on the concept of serving and meeting the needs of others. Which of the following is not included in servant leadership? a. working together equality of pay listening mentoring
ANSWER: B, Knowledge, Moderate, p. 56 AACSB Analytic, Creation of Value
78. CC Creations sells apparel to a __________ customer base: old, young, male, female, Asian, Hispanic, and African American. a. profitable b. low income c. diverse d. eccentric
ANSWER: C, Knowledge, Easy, p. 234 AACSB Analytic, Strategy
22. In order to foster the creation and day-to-day implementation of an ethical culture, organizations should do all of the following except: a. create a formal ethics system b. measure ethical conduct for developmental purposes only c. communicate ethical expectations d. make it acceptable to talk about ethics
ANSWER: B, Knowledge, Moderate, p. 84 AACSB Ethics, Ethical Responsibilities
36. A manager or employee guided by the __________ model considers the potential effects of alternative actions on all involved. utopian utilitarian network matrix
ANSWER: B, Knowledge, Moderate, p. 91 AACSB Ethics, Ethical Responsibilities
41. The __________ is designed to help managers identify the value premises that guide their managerial actions. The results can be useful for people who wish to better understand the determinants of their own actions, as well as those who want to broaden their perspectives on managerial ethics. Caux Round Table managerial values profile ethical management pool utilitarian values project
ANSWER: B, Knowledge, Moderate, p. 92 AACSB Ethics, Ethical Responsibilities
43. Individual preferences are selected in the Managerial Values Profile Questionnaire on the basis of __________. cultural expectations lesser of two evils risk and reward organizational expectations
ANSWER: B, Knowledge, Moderate, p. 92 AACSB Ethics, Ethical Responsibilities
73. The ____________ ethical model is most compatible with the goals of efficiency, productivity, and profit maximization. fairness utilitarian moral rights natural duty
ANSWER: B, Knowledge, Moderate, p. 98 AACSB Ethics, Ethical Responsibilities
2. In 2005, nearly 60 percent of Sony's profits were from sales of hardware and its latest video game console, ______________. GameCube PlayStation2 Xbox Revolution
ANSWER: B, Knowledge, Moderate, pp. 113-114 AACSB Analytic, Environmental Influence
61. The ________________ competency illustrates how Nintendo has crafted strategies over time to compete in the video game industry. a. multicultural b. strategic action c. self-management d. communication
ANSWER: B, Knowledge, Moderate, pp. 131-132 AACSB Analytic, Environmental Influence
23. Managers in Mexico use ___________ to motivate employees to a greater extent than managers in the United States. a. coercive power b. positive reinforcement c. legitimate power d. negative reinforcement
ANSWER: B, Knowledge, Moderate, pp. 159-160 AACSB Analytic, Creation of Value
67. Alan Mulally, CEO of Ford Motor Company, has started _____________ to infuse a sense of innovation in the company. time management programs the Piquette Project resource allocations the Anderson initiative
ANSWER: B, Knowledge, Moderate, pp. 16-17 AACSB: Communication, Creation of Value
70. In going global, the importance of the __________ competency is not to be underestimated. a. tacit b. multicultural c. self-management d. network
ANSWER: B, Knowledge, Moderate, pp. 201-202 AACSB Analytic, Environmental Influence
84. Which of the following is not a basic growth strategy common to business-level planning and strategy? a. market penetration b. alliance development market development product development
ANSWER: B, Knowledge, Moderate, pp. 236-237 AACSB Analytic, Strategy
93. The purpose of __________ is to help implement __________. strategic plans:tactical plans tactical plans:strategic plans business strategies: corporate strategies corporate strategies: business strategies
ANSWER: B, Knowledge, Moderate, pp. 237-238 AACSB Analytic, Strategy
25. The Citigroup Code of Conduct offers guidance under six main categories. The key point that employees must report suspicious activity through proper channels to government authorities would most closely relate to _________________. a. privacy/confidentiality b. other key legal/compliance rules c. investments and outside activities d. work role tasks
ANSWER: B, Knowledge, Moderate, pp. 86-87 AACSB Ethics, Ethical Responsibilities
32. Whistle-blowers need to believe __________. their career will survive they are doing the right thing other actions can be taken later the company will understand their motives
ANSWER: B, Knowledge, Moderate, pp. 90-91 AACSB Ethics, Ethical Responsibilities
64. The ______________ supports the distributive justice principle by making it illegal to pay different wages to women and men when their jobs require equal skill, effort, and responsibility and are performed under similar working conditions. Title VII of the Civil Rights Act of 1964 U.S. Equal Pay Act of 1963 Title IV of the Civil Rights Act of 1964 Sarbanes-Oxley Act
ANSWER: B, Knowledge, Moderate, pp. 96-97 AACSB Ethics, Ethical Responsibilities
38. Many North American firms have backed away from conglomerate diversification by selling off __________. related businesses unrelated businesses dominant businesses niche product businesses
ANSWER: B. Knowledge, Difficult, p. 222 AACSB Analytic, Strategy
43. Linda Thompson has recently been promoted to a middle manager with Fargo Industries. She wanted to know what task most middle managers considered important. She found out that the key task was ______________. a. managing individual performance b. coordinating teams c. managing group performance and allocating resources d. representing one's subordinates
ANSWER: C, Application, Difficult, p. 12 AACSB: Reflective Thinking, Creation of Value
59. Juan Salazar is one of many small Colombian farmers who sell their coffee beans to Folgers. In trying to get a higher price for his crop, Salazar is most impacted by which competitive force? threat of new competitors supplier bargaining power customer bargaining power threat of substitute goods or services
ANSWER: C, Application, Difficult, p. 131 AACSB Reflective Thinking, Environmental Influence
63. Courtney Massey has applied for a MBNA America credit card. By law, the credit grantor must reveal the "true" cost of using the credit, including the annual interest rate that will be assessed. This law is known as the Act. a. Equal Credit Opportunity b. Landrum-Griffith c. Truth in Lending d. Credit Discrimination
ANSWER: C, Application, Difficult, p. 132 AACSB Reflective Thinking, Environmental Influence
87. ___________ permits companies to maintain marketing control while passing along many of the costs, risks, and responsibilities. a. Private labeling b. Exporting Outsourcing Franchising
ANSWER: D, Application, Difficult, p. 172 AACSB Reflective Thinking, Creation of Value
73. Easwar Iyer handles several issues and projects at one time but doesn't spread himself to thin, monitors and keeps to a schedule or changes the schedule if needed, and works effectively under time pressure. What dimension of the planning and administration competency characterizes Iyer's work? information gathering and analysis planning and organizing projects time management budgeting and financial management
ANSWER: C, Application, Difficult, p. 19 AACSB: Reflective Thinking, Creation of Value
46. Potential investors for a new automated car wash facility want the owners to generate a step-by-step outline of how the owners will transform the idea of a car wash into a reality. In other words, the investors want a __________. a. statement of cash flows b. sources and uses of funds statement business plan balance sheet
ANSWER: C, Application, Difficult, p. 195 AACSB Reflective Thinking, Creation of Value
74. Many automakers and dealers have introduced special financing and rebate programs and have extended the length of coverage of their warranties. This demonstrates __________. a. the threat of new competitors b. supplier bargaining power c. customer bargaining power d. the threat of substitute goods or services
ANSWER: C, Application, Difficult, p. 233 AACSB Reflective Thinking, Strategy
96. Juanita Brown is willing to make mistakes and accepts responsibility for her own actions. What dimension of the self-management competency is Brown exhibiting by her behavior? personal drive and resilience balancing work integrity and ethical conduct balancing life issues
ANSWER: C, Application, Difficult, p. 27 AACSB: Reflective Thinking, Creation of Value
17. Brad Shipp is a manager of a local manufacturing firm. Shipp recruits labor with different skills for different jobs. This is characteristic of . a. rationality b. impersonality hierarchical structure division of labor
ANSWER: C, Application, Difficult, p. 44 AACSB Reflective Thinking, Individual Dynamics
18. Erin Turner believes a well-defined organizational structure helps control employee behavior. Each employee will know where he or she stands in relation to everyone else in the organization. This is characteristic of __________. a. impersonality b. division of labor hierarchical structure rationality
ANSWER: C, Application, Difficult, p. 44 AACSB Reflective Thinking, Individual Dynamics
37. Krish Anya is sometimes known to make decisions that may help some individuals, but harm others, as long as potentially positive results outweigh potentially negative ones. This philosophy characterizes the __________ approach. win-lose fairness utilitarian dilemma resolution
ANSWER: C, Application, Difficult, p. 91 AACSB Ethics, Ethical Responsibilities
72. James Lawson won a court case in which he claimed that he was fired for refusing to lie in court about certain activities of his union. The court decision was consistent with the ___________ principle. empowerment accountability comparable worth natural duty traditional accountability
ANSWER: C, Application, Difficult, p. 97 AACSB Ethics, Ethical Responsibilities
75. The Sentek Manufacturing Corporation has eliminated certain features of their products without losing customers. This action best represents __________. a. a threat of new competitors b. decreased supplier bargaining power c. increased supplier bargaining power d. an increase in rivalry among existing firms
ANSWER: C, Application, Difficult, pp. 233-234 AACSB Reflective Thinking, Strategy
95. Ritzcamera.com sells quality camera and related products online and via telephone. The firm recently implemented a __________ plan to improve its order fulfillment and shipping system. Specifically, their warehouse was reorganized so that frequently ordered items were moved closest to the packing and shipping stations, and rarely ordered items were moved to the back of the warehouse. business-level strategic tactical diversification
ANSWER: C, Application, Difficult, pp. 237-238 AACSB Reflective Thinking, Strategy
63. Steven Juarez discovered that he was being paid more than a female counterpart. He knew their jobs required equal skill, effort, and responsibility and were performed under similar working conditions. Juarez was rightfully concerned, knowing that the company was in direct violation of the __________ principle. natural duty individualism distributive justice collectivism
ANSWER: C, Application, Difficult, pp. 96-97 AACSB Ethics, Ethical Responsibilities
42. Norma Inafuku at Oreck Vacuums finds herself translating top management's strategy for increasing sales into tangible quotas for production plant managers. Inafuku would be considered to be at what level of management? top management first-line management middle management intermediate management
ANSWER: C, Application, Easy, p. 12 AACSB: Reflective Thinking, Strategy
56. Dylan Summers tells his managers at Visa Card to invest at least 40 percent of their time in improving self-management of their own ethics, character, and conduct. Summers operates at the __________ level. functional middle-level marketing top management production management
ANSWER: C, Application, Easy, p. 14 AACSB: Reflective Thinking, Creation of Value
13. Tony Escabar has received many written and verbal warnings due to excessive tardiness. His philosophy is best characterized as mañana. Escabar's work ethic could probably be attributed to his __________ culture. a. Japanese b. Chinese Mexican British
ANSWER: C, Application, Easy, p. 154 AACSB Reflective Thinking, Creation of Value
55. Stephen Xu has entered into a contract to open a new McDonald's restaurant in his town because he feels that there is an opportunity to make a lot of money. Xu will own the business, but will have to meet strict guidelines set forth by McDonalds in order to use their name and sell their products. Xu has opened a (n) ____________. lifestyle venture incubator organization franchise none of the above
ANSWER: C, Application, Easy, p. 197 AACSB Reflective Thinking, Creation of Value
48. Anna Villasenor is a purchasing agent for Brazos County. She is known to have a significant financial interest in one of the county's major suppliers. This potential conflict of interest is addressed in the ethical standards found in the __________ approach. win-lose fairness utilitarian utopia-based
ANSWER: C, Application, Easy, p. 93 AACSB Ethics, Ethical Responsibilities
52. Javier has implemented regulations restricting the use of various toxic chemicals in the workplace. This regulation supports the fundamental right of __________. truthfulness free speech life and safety privacy
ANSWER: C, Application, Easy, pp. 93-94 AACSB Ethics, Ethical Responsibilities
46. A large electronics manufacturer has recently hired Susan Vining. Her responsibilities include motivating and disciplining project leaders, keeping track of performance and providing feedback, and improving communications and productivity of the various projects. These responsibilities are closely affiliated with ____________ management. project first-line middle top
ANSWER: C, Application, Moderate, p. 12 AACSB: Analytic, Creation of Value
40. Todd Reppert of Ballpark Hot Dogs describes his job as ringmaster. He tries to balance the health department's demands for clean kiosks, vendors' demands for supplies, and his first-line manager's demand for recruiting new employees to staff the company's 25 kiosks in Tampa. Reppert is considered to be at what level of management? a. top management b. first-line management c. middle management d. intermediate management
ANSWER: C, Application, Moderate, p. 12 AACSB: Reflective Thinking, Creation of Value
29. There are many societies that rank high in power distance as a cultural value dimension. All of the following rank high in power distance except . a. Mexico b. France Canada the Philippines
ANSWER: C, Application, Moderate, p. 123 AACSB Reflective Thinking, Environmental Influence
66. Karthik Mahadevan negotiates effectively on behalf of a team over roles and resources, is skilled at developing relationships and exercising influence upward with superiors, and takes decisive and fair actions when handling problem subordinates. Mahadevan is engaged in ___________communication. informal formal negotiation planning
ANSWER: C, Application, Moderate, p. 16 AACSB: Communication, Creation of Value
84. A __________ strategy for entering foreign markets makes it possible to avoid large capital investments or getting involved with the details of daily production and management. a. multinational b. export licensing multidomestic
ANSWER: C, Application, Moderate, p. 171 AACSB Reflective Thinking, Strategy
12. Ashlee Vanke is a wealthy businesswoman who wants to give something back to the people. She decides to form an organization that would renovate an old warehouse and subsidize the opening of small businesses. When a television news reporter publicized what she was doing, more than ten hopeful entrepreneurs applied for the subsidization. At present, more than fifteen successful businesses have received help from Vanke. Vanke's organization could be described as a (n) __________. organic organization network business incubator skunkwork
ANSWER: C, Application, Moderate, p. 186 AACSB Reflective Thinking, Individual Dynamics
86. Which of the following is not an example of corporate entrepreneurship? Art Fry's invention of Post-it Notes at 3M. Lou Dobb's creation of CNNFN. Henry Estate Winery's expansion into China Philip Estridge's development of the PC at IBM.
ANSWER: C, Application, Moderate, p. 205 AACSB Reflective Thinking, Creation of Value
52. Newman Printing, Inc. is growing by purchasing established printing companies. Newman is following a strategy of __________. a. forward integration b. backward integration horizontal integration conglomerate diversification
ANSWER: C, Application, Moderate, p. 226 AACSB Reflective Thinking, Strategy
83. Top managers like John Mackey of Whole Foods or Larry Ellison of Oracle must perceive changes in the organizational environment and apply the _______________ competency. a. multicultural b. communication c. strategic action d. all of the above
ANSWER: C, Application, Moderate, p. 23 AACSB: Reflective Thinking, Creation of Value
76. One of Southwest Airlines' goals is to get consumers to fly on trips of about 100 to 700 miles instead of driving. Southwest is focusing on __________. a. identifying the threat of new competitors b. establishing customer bargaining power c. establishing a substitute good or service d. establishing supplier bargaining power
ANSWER: C, Application, Moderate, p. 234 AACSB Reflective Thinking, Strategy
81. Blake Schroeder is a consultant with Strawser Consulting. He is designing a basic framework for diagnosing the strengths and weaknesses of organizations. __________ is (are) not considered one of these components. a. Human resource skills b. Ability to adapt Suppliers Technological capabilities
ANSWER: C, Application, Moderate, p. 234 AACSB Reflective Thinking, Strategy
94. Juan Rodriguez travels abroad several times a year and is aware of cultural cues and is able to adapt quickly in novel situations. He oftentimes has to adjust his own behavior when interacting with people from various national, ethnic, and cultural backgrounds. What dimension of the multicultural competency is Rodriguez practicing? global management cultural knowledge cultural openness and sensitivity cultural understanding
ANSWER: C, Application, Moderate, p. 26 AACSB: Reflective Thinking, Creation of Value
11. Paula Walker works for an organization that relies heavily on rules and has a clear division of labor. This approach is referred to as ___________ management. a. contingency b. system bureaucratic scientific
ANSWER: C, Application, Moderate, p. 43 AACSB Reflective Thinking, Creation of Value
58. Denise Millen is a manager with Marriott International, one of the most successful hotel operators. She strongly believes managers have the right to give orders to get things done. This philosophy supports the _______ principle adopted by Henri Fayol. a. subordination of individual interest to the common good b. unity of command c. authority d. stability and tenure of staff
ANSWER: C, Application, Moderate, p. 51 AACSB Analytic, Creation of Value
60. Don Childress works for Ford Motor Company. He has found that the company has an elaborate authority structure. One of the major disadvantages to this type of organizational structure is __________. a. potential for harassment b. centralization c. rigidity d. lower wages
ANSWER: C, Application, Moderate, p. 52 AACSB Reflective Thinking, Strategy
69. Laurie Hinckel has recently been promoted to a management position within Baker Hughes. Her personal philosophy is that management is a continuous process and that if a problem has been solved, the method used to solve it probably generated new problems. This philosophy parallels the philosophy of _______________. Terence Hill Max Weber Mary Parker Follett Joan Woodward
ANSWER: C, Application, Moderate, p. 54 AACSB Analytic, Creation of Value
62. Societies try to resolve conflicts over values and beliefs through their ______________. a. interest groups b. individual freedom c. property rights d. political and legal systems
ANSWER: D, Knowledge, Moderate, p. 132 AACSB Analytic, Environmental Influence
20. Fernando Garza is the loan manager for a local bank. A publisher of a legal, pornographic magazine has asked for a loan. The local community has been indifferent to the pornographic business. The loan will be beneficial to the bank in terms of increasing business. The bank has a nondiscrimination policy. Garza is personally very opposed to pornography and thinks all pornographic materials should be illegal. Based on _________ as a source of guidance, Garza refuses to make the loan. formal rules interpretive standards personal values and beliefs a cultural code of ethics
ANSWER: C, Application, Moderate, p. 83 AACSB Ethics, Ethical Responsibilities
36. Sallie Schwall is the type of manager who leads a hectic work life full of interruptions. Her job is constantly on the "firing line." From this description, Schwall would be considered a(n) ___________ manager. bureaucratic task force first-line effective
ANSWER: C, Application, Moderate, pp. 11-12 AACSB: Reflective Thinking, Creation of Value
59. Lauren Gross feels great pressure and demands in her job at ExxonMobil. Her typical day involves disposing of twenty-seven pieces of mail, handling six telephone calls per hour, and going to five meetings each day. Gross is most likely experiencing the challenges felt by ________________. all employees first-line managers top managers leaders of self-managed teams
ANSWER: C, Application, Moderate, pp. 13-14 AACSB: Reflective Thinking, Creation of Value
61. Leslie Helms seems to spend days and nights working for General Electric. It seems that one night she may spend working late at the office and the next night entertaining business associates. Even when she goes home, Helms uses her study as a branch office. She is most likely fulfilling the role of . staff management middle management top management board of director member
ANSWER: C, Application, Moderate, pp. 13-14 AACSB: Reflective Thinking, Creation of Value
30. Shawn Hitt has started his business and is putting in 13 hour days. When asked why he is working so hard, he replies that nothing worth having is free. This response suggests that Hitt has an attribute of ___________. a desire for independence not wanting to work in large organizations self-sacrifice a need for power
ANSWER: C, Application, Moderate, pp. 189-190 AACSB Reflective Thinking, Creation of Value
86. AT&T reduced its residential long distance rates to attract new customers. AT&T is using the __________ strategy. a. market venture b. market import market penetration market alliance
ANSWER: C, Application, Moderate, pp. 236-237 AACSB Reflective Thinking, Strategy
89. Procter & Gamble decided to change the name of their product in Germany to the more common global name. Local customers no longer recognized a product that had previously been familiar, resulting in lost sales volume. This would be considered a serious ____________ mistake. a. communication b. self-management c. multicultural d. strategic action
ANSWER: C, Application, Moderate, pp. 24-25 AACSB: Reflective Thinking, Creation of Value
92. A strong corporate responsibility report uses the __________________ guidelines as a framework for reporting. a. Occupational Safety and Health Administration b. Code of Ethical Conduct c. Global Reporting Initiative d. Code of Conduct
ANSWER: C, Knowledge, Difficult, p. 104 AACSB Ethics, Ethical Responsibilities
16. It has been estimated that by the end of this decade, more than ________ people will be part of the U.S. labor force. a. 122 million b. 137 million 163 million 173 million
ANSWER: C, Knowledge, Difficult, p. 120 AACSB Analytic, Environmental Influence
54. Top managers spend most of their day (over 75 percent) planning and leading. They spend most of their leading time _________. meeting with first-level managers directly involved with employee tasks working with key people outside their own organization controlling middle management decisions
ANSWER: C, Knowledge, Difficult, p. 13 AACSB: Analytic, Creation of Value
68. The most common form of lobbying is by associations, representing the interests of groups of individuals or organizations. Approximately __________ national lobbying organizations maintain staffs in Washington, D.C. a. 1,000 b. 2,000 c. 4,000 d. 8,000
ANSWER: C, Knowledge, Difficult, p. 133 AACSB Analytic, Environmental Influence
71. The American Association of Retired Persons has a membership of . a. 15 million b. 22 million c. 35 million d. 50 million
ANSWER: C, Knowledge, Difficult, p. 134 AACSB Analytic, Environmental Influence
73. Alliances are used for all the following purposes except to __________. a. oppose or support legislation, nomination of heads of regulatory agencies, and regulations issued by such agencies b. improve competitiveness of two or more organizations through collaboration c. construct facilities limited to the resources of any one organization d. promote particular products or services
ANSWER: C, Knowledge, Difficult, p. 134 AACSB Analytic, Environmental Influence
81. Which of the following is not a goal of the American Association of Retired Persons? The education of older Americans on issues that face them. Seek clarification from political candidates on issues that affect senior citizens. Endorse political candidates supported by the association. Increase voter participation.
ANSWER: C, Knowledge, Difficult, p. 136 AACSB Analytic, Environmental Influence
3. Trade is now so important to the U.S. economy that __________ jobs depends on it. one in three b. one in four c. one in six d. one in ten
ANSWER: C, Knowledge, Difficult, p. 151 AACSB Analytic, Creation of Value
5. Since 1995, U.S. exports of goods and services have soared ______ percent, accounting for much of the overall growth in the economy. a. 15 b. 25 33 45
ANSWER: C, Knowledge, Difficult, p. 151 AACSB Analytic, Creation of Value
14. Although their attitude is changing, for many managers in Mexico, time commitments are considered ___________________. a. desirable but not binding b. undesirable not binding binding
ANSWER: C, Knowledge, Difficult, p. 154 AACSB Analytic, Creation of Value
28. __________ is not considered a political risk. a. Corruption b. Foreign conflict Protectionism Economic climate
ANSWER: C, Knowledge, Difficult, p. 160 AACSB Analytic, Creation of Value
51. A company in violation of the U.S. Foreign Corrupt Practices Act of 1977 may be fined up to __________. a. $10,000 b. $250,000 c. $1,000,000 d. $10,000,000
ANSWER: C, Knowledge, Difficult, p. 164 AACSB Analytic, Creation of Value
9. Which of the following factors has not contributed to the rise of entrepreneurship? local chambers of commerce favorable tax rates for local businesses a soft economy that put many people out of work support services that assist growth
ANSWER: C, Knowledge, Difficult, p. 186 AACSB Analytic, Creation of Value
14. It has been found that _______ of family owned businesses survive to the third generation. 75% 35% 12% 5%
ANSWER: C, Knowledge, Difficult, p. 187 AACSB Analytic, Group Dynamics
17. Fundamental to all managerial competencies is the __________. strategic action competency teamwork competency self-management competency planning and administration competency
ANSWER: C, Knowledge, Difficult, p. 188 AACSB Analytic, Creation of Value
37. As a result of unanticipated hardships in the early phases of Driesenga & Associates business, the founder says today, "Never underestimate the power of the government to interfere in your business." "Always treat your customers the way you would like to be treated." "Most of our revenue comes from services we did not offer in the original business plan." "It's not what you know but who you know."
ANSWER: C, Knowledge, Difficult, p. 192 AACSB Analytic, Creation of Value
74. Hiring criteria policies established by a family business for employing other family members should be most concerned with the __________ of the person. a. conflict potential b. financial commitment competence affect
ANSWER: C, Knowledge, Difficult, p. 203 AACSB Analytic, Creation of Value
26. Tactical planning involves all of the following steps except __________. a. developing budgets for each department b. developing budgets for each project c. deciding on courses of action for diversification d. developing quantitative goals
ANSWER: C, Knowledge, Difficult, p. 219 AACSB Analytic, Strategy
43. Corporate strategies focus on all of the following except __________. a. the types of businesses the firm wants to engage in b. ways to acquire or divest businesses c. ways to develop corporate entropy d. allocation of resources among the businesses
ANSWER: C, Knowledge, Difficult, p. 223 AACSB Analytic, Strategy
45. Which of the following statements is not true concerning SBUs? An SBU may have a well-defined set of customers. An SBU may cover a specific geographic area. Corporate-level managers develop the plans and strategies for each SBU. An SBU is usually evaluated on the basis of its own income statement.
ANSWER: C, Knowledge, Difficult, p. 225 AACSB Analytic, Strategy
91. A strategic plan contains all of the following except __________. a. organizational mission and goals b. strategies for obtaining and utilizing the necessary technological, marketing, financial, and human resources to achieve the stated goals c. strategies for benchmarking d. strategies for developing and utilizing organizational and employee competencies
ANSWER: C, Knowledge, Difficult, p. 237 AACSB Analytic, Strategy
67. Which of the following is not an aspect of the behavioral viewpoint? how managers do what they do management's efforts to lead and communicate analysis of decision affects on other departments assumptions relating to high-performance team members
ANSWER: C, Knowledge, Difficult, p. 53 AACSB Analytic, Creation of Value
73. Which of the following statements does not follow from Barnard's acceptance theory of authority? Employees will follow orders if they believe that the orders are consistent with organizational goals. Employees will follow orders if they understand what is required. Employees will follow orders if they have had the proper training. Employees will follow orders if they see positive benefits to themselves in carrying out management's orders.
ANSWER: C, Knowledge, Difficult, p. 54 AACSB Analytic, Creation of Value
95. Quantitative techniques include all of the following characteristics except . the primary focus is on decision making alternatives are based on economic criteria computers are ideal, but not necessary mathematical models are used
ANSWER: C, Knowledge, Difficult, p. 59 AACSB Analytic, Creation of Value
112. Which of the following statements is false regarding the use of statistical process control? The use of statistical process control is one of Deming's key recommendations. Statistical process control methods have been available for decades. Statistical process control involves the use of qualitative methods and procedures. Statistical process control methods serve primarily as preventive controls.
ANSWER: C, Knowledge, Difficult, p. 64 AACSB Analytic, Creation of Value
4. All of the following statements are supported by research except: 72% of poll respondents see typical CEOs as less ethical than the average person. ethical standards of major corporate CEOs are rated as either fair or poor by 72% of the public. fraudulent activities cause close to 10 percent of U.S. businesses to fail. studies indicate that ethics programs can be effective
ANSWER: C, Knowledge, Difficult, p. 78 AACSB Ethics, Ethical Responsibilities
69. Which of the following is an example of "procedural justice"? Staff attorneys are available to respond to legal concerns. Fairness in an organization is achieved in stages. An acceptable process is in place for investigating employee grievances. No penalties are taken against an employee for questioning management.
ANSWER: C, Knowledge, Difficult, p. 97 AACSB Ethics, Ethical Responsibilities
32. Regarding the effects of family interactions on entrepreneurs, research suggests that entrepreneurs tend to have __________. many children high competition between family members self-employed parents not been the first-born
ANSWER: C, Knowledge, Difficult, p.190 AACSB Analytic, Individual Dynamics
32. All of the following are representative of high uncertainty avoidance except __________. a. built-in career stability b. numerous rules governing behavior c. tolerance of deviant ideas and behavior d. belief in absolute truths
ANSWER: C, Knowledge, Difficult, pp. 124-125 AACSB Analytic, Environmental Influence
77. The Whole Foods Market developed its employees' teamwork competency by organizing its stores into self-managed teams. All of the following are positively effected by an emphasis on teamwork except: accountability "no secrets" management philosophy labor union relations all of the above
ANSWER: C, Knowledge, Difficult, pp. 21-22 AACSB: Analytic, Creation of Value
29. Which of the following is not one of the questions managers should consider when trying to identify the potential risks and opportunities of diversification? What can we do better than other firms if we enter a new market? What strategic resources are needed to succeed in the new market? What will this diversification move save in costs for suppliers? Will we be simply a player in the new market or will we emerge a winner?
ANSWER: C, Knowledge, Difficult, pp. 220-221 AACSB Analytic, Strategy
31. ____________ involves getting others to perform tasks necessary to achieve the organization's goals. Organizing Controlling Leading Attenuation
ANSWER: C, Knowledge, Easy, p. 10 AACSB: Analytic, Creation of Value
13. The characteristics of a work group, organization, specific market, or national population is referred to as __________. a. collectivism b. individualism demographics culture
ANSWER: C, Knowledge, Easy, p. 120 AACSB Analytic, Environmental Influence
31. The degree to which members of a society attempt to make the future predictable by following rules and regulations is an indicator of their __________. a. power distance b. individualism uncertainty avoidance collectivism
ANSWER: C, Knowledge, Easy, p. 124 AACSB Analytic, Environmental Influence
79. The process by which people learn the values held by an organization or the broader society is known as __________. political indoctrination training socialization lobbying
ANSWER: C, Knowledge, Easy, p. 135 AACSB Analytic, Environmental Influence
30. The degree of hostility one nation shows toward others is known as __________. a. domestic instability b. international stability foreign conflict political coalitions
ANSWER: C, Knowledge, Easy, p. 160 AACSB Analytic, Creation of Value
48. An improper payment made to induce the recipient to do something for the payer is known as a __________. a. coercion b. cartel bribe tariff
ANSWER: C, Knowledge, Easy, p. 163 AACSB Analytic, Creation of Value
50. Bribery and extortion are practiced throughout the world. They occur frequently in all of the following countries except __________. a. Indonesia b. Honduras Great Britain Yugoslavia
ANSWER: C, Knowledge, Easy, p. 164 AACSB Analytic, Creation of Value
78. ____________ refers to the amount of tangible financial assets and information support systems that the organization dedicates to its global strategy. Complexity Leverage Resource commitment Return on assets
ANSWER: C, Knowledge, Easy, p. 170 AACSB Analytic, Strategy
85. Which of the following does a franchisee not receive from the franchiser? a. training and technology transfer b. complete assortment of materials low interest loans trademarks and marketing program
ANSWER: C, Knowledge, Easy, p. 172 AACSB Analytic, Creation of Value
92. Alliances provide entry into markets that are ______________ because of strict political requirements or great economic uncertainty. a. multinational b. global risky stable
ANSWER: C, Knowledge, Easy, p. 174 AACSB Analytic, Creation of Value
70. Garrett Boone and Kip Tindell, CEOs of The Container Store, find that they must manage their time and delegate effectively because there are more daily problems and opportunities than they can possibly attend to. This is part of the __________. a. teamwork competency b. communication competency c. planning and administration competency d. strategic action competency
ANSWER: C, Knowledge, Easy, p. 18 AACSB: Analytic, Creation of Value
6. A niche market is __________. a. a high-tech market characterized by high barriers to entry an underserved market an area of limited opportunity
ANSWER: C, Knowledge, Easy, p. 184 AACSB Analytic, Creation of Value
24. Personal attributes of the entrepreneur include all of the following except __________. self-sacrifice self-confidence intelligence independence
ANSWER: C, Knowledge, Easy, p. 189 AACSB Analytic, Creation of Value
82. Someone in an organization who turns new ideas into profitable realities is known as a(n) __________. a. research and development specialist b. venture capitalist c. corporate entrepreneur d. none of the above
ANSWER: C, Knowledge, Easy, p. 205 AACSB Analytic, Individual Dynamics
44. Entrepreneurs seem to be __________. unwilling to spend the saving of others concerned about the opinions of other people easily bored all of the above
ANSWER: C, Knowledge, Easy, p. 209 AACSB Analytic, Individual Dynamics
7. __________ had a contingency communication plan that enabled it to respond to the ravages of the Hurricane Katrina in 2005. Choctaw Casino ExxonMobil Mississippi Power Company American Airlines
ANSWER: C, Knowledge, Easy, p. 216 AACSB Analytic, Strategy
23. The earmarking of money, through budgets, for various uses is known as __________. a. tactical planning b. cost-based accounting resource allocation deployment
ANSWER: C, Knowledge, Easy, p. 218
31. A firm that provides a limited number of goods or services to one segment of a particular market is known as a(n) __________-business strategy firm. a. unrelated b. related single dominant
ANSWER: C, Knowledge, Easy, p. 221 AACSB Analytic, Strategy
36. A firm that provides diverse products (goods and/or services) to many different markets is known as a(n) __________-business firm. a. single b. dominant unrelated related
ANSWER: C, Knowledge, Easy, p. 222 AACSB Analytic, Strategy
44. A(n) __________ is a division or subsidiary of a firm that provides a distinct product or service and often has its own mission and goals. a. functional-business unit (FBU) b. integrative-business unit (IBU) c. strategic-business unit (SBU) d. tactical-business unit (TBU)
ANSWER: C, Knowledge, Easy, p. 225 AACSB Analytic, Strategy
59. __________ diversification occurs when a firm adds unrelated goods or services to its line of business. a. Related b. Horizontal Conglomerate Backward
ANSWER: C, Knowledge, Easy, p. 227 AACSB Analytic, Strategy
68. There are _____ primary tasks in the business-level planning process. a. 3 b. 5 8 12
ANSWER: C, Knowledge, Easy, p. 230 AACSB Analytic, Creation of Value
87. ____________ competency includes carrying out an organization's managerial work by drawing on the human, financial, and material resources from multiple countries and serving markets that span multiple countries requires what managerial competency? Strategic action Self-management Multicultural Communication
ANSWER: C, Knowledge, Easy, p. 24 AACSB: Analytic, Creation of Value
95. The __________ competency involves personal integrity, resilience, and development. teamwork planning and administration self-management leadership
ANSWER: C, Knowledge, Easy, p. 26 AACSB: Analytic, Creation of Value
28. The use of rules and regulations for the size and weight of packages enables FedEx to deliver more than 14 million packages everyday. This is an example of how firms may benefit from ____________ management. a. behavioral b. rational bureaucratic contingency
ANSWER: C, Knowledge, Easy, p. 46 AACSB Analytic, Strategy
48. Henry Gantt created a popular tool which identifies various stages of work that must be carried out to complete a project, sets a deadline for each stage, and documents accomplishments. It is known as the __________. a. PET chart b. Gantt chain Gantt chart linear chain
ANSWER: C, Knowledge, Easy, p. 50 AACSB Analytic, Creation of Value
75. The strongest support for the behavioral viewpoint emerged from the ______________ studies. Gantt Taylor Hawthorne time-and-motion
ANSWER: C, Knowledge, Easy, p. 55 AACSB Analytic, Creation of Value
116. At Timberland, core values are practiced by all employees. These values include all of the following except: humanity integrity ingenuity excellence
ANSWER: C, Knowledge, Easy, p. 67 AACSB Analytic, Creation of Value
5. The notorious unethical and often illegal practices by some the top executives at Enron and Tyco have resulted in all of the following except: a. bankruptcy b. loss of jobs by employees c. jail time for whistle-blowers d. massive financial losses for shareholders
ANSWER: C, Knowledge, Easy, p. 79 AACSB Ethics, Ethical Responsibilities
_______________ managers supervise employees having expertise in one area. a. General b. First-line c. Functional d. Executive
ANSWER: C, Knowledge, Easy, p. 8 AACSB: Analytic, Creation of Value
7. A set of values, principles, and rules that define right and wrong conduct is known as _________. social mobility natural duty ethics traditional responsibility
ANSWER: C, Knowledge, Easy, p. 80 AACSB Ethics, Ethical Responsibilities
12. Capitalism is built on investor trust. Unimportant to this trust is __________. stewardship return on investment perfect competition All are important elements of investor trust.
ANSWER: C, Knowledge, Easy, p. 82 AACSB Ethics, Ethical Responsibilities
16. Which of the following scandals would not be affected by the Corporate and Criminal Fraud Accountability Act of 2002? Enron Tyco Continental Airlines Adelphia
ANSWER: C, Knowledge, Easy, p. 83 AACSB Ethics, Ethical Responsibilities
25. The planning function is the dynamic process of making decisions that focuses on ___________. outsourcing past performance future performance technical skills
ANSWER: C, Knowledge, Easy, p. 9 AACSB: Analytic, Creation of Value
54. "Caveat emptor" means __________. "safety first" "do unto others" "let the buyer beware" "cheaters never prosper"
ANSWER: C, Knowledge, Easy, p. 94 AACSB Ethics, Ethical Responsibilities
66. The __________ principle morally requires employees to support the rules of the organization as long as the organization is just (or fair) and employees have voluntarily accepted some benefits or opportunities in order to further their own interests. distributive justice equality utilitarian natural duty
ANSWER: C, Knowledge, Easy, p. 97 AACSB Ethics, Ethical Responsibilities
78. Individuals or groups that have interests, rights, or ownership in an organization and its activities are known as ___________. profit sharers stockholders stakeholders alliances
ANSWER: C, Knowledge, Easy, p. 99 AACSB Ethics, Ethical Responsibilities
22. What personal attribute did radio station entrepreneur Catherine Hughes show when she sold her rare pocket watch to help her business? desire for independence self-confidence self-sacrifice none of the above
ANSWER: C, Knowledge, Easy, pp. 189-190 AACSB Analytic, Individual Dynamics
78. The culture at Whole Foods Market is based on __________. a. knowledge workers b. communication competency c. decentralized teamwork d. time management
ANSWER: C, Knowledge, Easy, pp. 21-22 AACSB: Analytic, Creation of Value
30. Lois Dimple, vice president of IBM Worldwide Olympic Technology Systems, knew she needed to plan, organize, and lead simultaneously to complete the task assigned to her. What was Dimple's responsibility? coordinate the summer Olympic games in Atlanta coordinate the summer Olympic games in Sydney coordinate the winter Olympic games in Utah create a system supplying real time Internet coverage of the games
ANSWER: C, Knowledge, Moderate, p. 10 AACSB: Analytic, Creation of Value
29. After management has made plans, created a structure, and hired the right personnel, someone must ____________________ the organization over time. control measure the efficiency of lead assess the effectiveness of
ANSWER: C, Knowledge, Moderate, p. 10 AACSB: Analytic, Creation of Value
32. The process by which a person, group, or organization consciously monitors performance and takes corrective action is referred to as __________. autocracy leading controlling organizing
ANSWER: C, Knowledge, Moderate, p. 10 AACSB: Analytic, Creation of Value
84. ____________________ involves conducting business in a way that protects the natural environment while making economic progress. a. Ethical behavior b. Corporate responsibility c. Sustainable development d. Social compliance
ANSWER: C, Knowledge, Moderate, p. 101 AACSB Ethics, Ethical Responsibilities
91. The themes found in a firm with a commitment to evaluating its social performance and responsibility include all of the following except: a. disclosure b. proactive management c. centralization d. creating shareholder value
ANSWER: C, Knowledge, Moderate, p. 104 AACSB Ethics, Ethical Responsibilities
1. According to the "Challenge of Managing" about the video game industry, the latest Entertainment Software Association survey shows that the average gamer is all of the following except: 29 years old has a full-time job has children spends more time playing games than watching television
ANSWER: C, Knowledge, Moderate, p. 113 AACSB Analytic, Environmental Influence
4. __________ is(are) not included in the general environment. The type of economic system Economic conditions The companies that supply inputs The type of political system
ANSWER: C, Knowledge, Moderate, p. 115 AACSB Analytic, Environmental Influence
8. Several trends are currently affecting the U.S. and Canadian economies. Which of the following is not one of these trends? a. A major emphasis on value b. New markets are available An emphasis on unskilled labor Consumers desire more convenience
ANSWER: C, Knowledge, Moderate, p. 118 AACSB Analytic, Environmental Influence
15. __________ now have the right to refuse __________. a. Hispanics and Asians, racial profiling b. Gays, HIV testing c. Older workers, mandatory retirement d. White males, affirmative action
ANSWER: C, Knowledge, Moderate, p. 120 AACSB Analytic, Environmental Influence
18. Employers are facing the demand of managing diversity. Some organizations are providing training to employees to be more tolerant in the workplace of all of the following except __________. a. language b. age religion race
ANSWER: C, Knowledge, Moderate, p. 121 AACSB Analytic, Environmental Influence
26. Which of the following is not one of Hofstede's value dimensions? a. gender role orientation b. certainty avoidance c. extroversion d. individualism (versus collectivism)
ANSWER: C, Knowledge, Moderate, p. 123 AACSB Analytic, Environmental Influence
48. ________________ in an industry depends on the relative ease with which new firms can compete with established firms. Economies of scale The bargaining power of suppliers The threat of new entrants The bargaining power of buyers
ANSWER: C, Knowledge, Moderate, p. 129 AACSB Analytic, Environmental Influence
22. __________ refers to differences in religious beliefs, race, social norms, and language between two countries. a. Power distance b. Social orientation c. Cultural distance d. Multiculturalism
ANSWER: C, Knowledge, Moderate, p. 158 AACSB Analytic, Creation of Value
32. The likelihood that a government will swing to the far left or far right politically is known as __________. a. domestic coercion b. international control political climate foreign propaganda
ANSWER: C, Knowledge, Moderate, p. 161 AACSB Analytic, Creation of Value
34 Infrastructure is one of the elements of ___________. a. domestic integration b. international negotiation economic climate foreign climate
ANSWER: C, Knowledge, Moderate, p. 161 AACSB Analytic, Creation of Value
57. When country A grants a tariff concession to country B, the same concession automatically applies to all other countries that are members of the World Trade Organization (WTO). This is known as the __________ principle. a. reciprocity b. transparency most favored nation collaborative
ANSWER: C, Knowledge, Moderate, p. 165 AACSB Analytic, Creation of Value
56. Which of the following is not a key function of the World Trade Organization (WTO)? providing managerial training in developing countries handling trade disputes between nations monitoring foreign exchange markets providing a forum for trade negotiations
ANSWER: C, Knowledge, Moderate, p. 165 AACSB Analytic, Creation of Value
58. The __________ concept establishes that any tariffs be readily visible to all countries. a. reciprocity b. escape transparency most favored nation
ANSWER: C, Knowledge, Moderate, p. 165 AACSB Analytic, Creation of Value
63. Over _____ percent of the goods imported from Mexico may now enter the United States without tariffs. a. 50 b. 60 70 80
ANSWER: C, Knowledge, Moderate, p. 166 AACSB Analytic, Creation of Value
61. The North American Free Trade Agreement (NAFTA) went into effect in __________. 1970 1987 1994 2000
ANSWER: C, Knowledge, Moderate, p. 166 AACSB Analytic, Creation of Value
75. Strategies for international operations include all of the following except ____________. a. exporting b. licensing manufacturing franchising
ANSWER: C, Knowledge, Moderate, p. 170 AACSB Analytic, Creation of Value
90. A(n) __________ strategy is the pooling of companies' physical, financial, and human resources to achieve common goals. a. licensing b. exporting alliance franchising
ANSWER: C, Knowledge, Moderate, p. 173 AACSB Analytic, Strategy
96. A(n) ____________________ is an organizational unit that is accountable for both the revenues generated by its activities and the costs of those activities. a. business entity b. domestic center profit center cost center
ANSWER: C, Knowledge, Moderate, p. 174 AACSB Analytic, Creation of Value
93. A(n) __________ strategy involves adjusting products, services, and practices to individual countries or regions. a. licensing b. exporting multidomestic franchising
ANSWER: C, Knowledge, Moderate, p. 174 AACSB Analytic, Strategy
21. Personal attributes of successful entrepreneurs include all of the following except a __________. desire for independence need for achievement need for affiliation willingness to self-sacrifice
ANSWER: C, Knowledge, Moderate, p. 189 AACSB Analytic, Creation of Value
34. The Goltz Group consists of all of the following business' except: a. Chicago Art Source b. Artists' Frame Shop c. Northbrook Travel d. Jayson Home & Garden
ANSWER: C, Knowledge, Moderate, p. 190 AACSB Analytic, Creation of Value
38. Administering a plan for a new business is extremely difficult. In the start-up phase, which of the following is not considered a primary concern? putting the plan in writing surviving when funds are scarce developing a five-year strategic plan attracting top-notch employees
ANSWER: C, Knowledge, Moderate, p. 192 AACSB Analytic, Creation of Value
48. A (n) __________ is one of the primary components of a business plan. article of incorporation down payment executive summary none of the above
ANSWER: C, Knowledge, Moderate, p. 196 AACSB Analytic, Creation of Value
54. When deciding what type of business to own, people should do all of the following except: examine their competencies determine their initial investment buy a franchise first before starting their own business Anticipate expected revenue
ANSWER: C, Knowledge, Moderate, p. 197 AACSB Analytic, Creation of Value
61. Entrepreneurs often make a conscious determination of the level of resources they are willing to commit to a venture. This is known as __________. a. strategic resourcing b. paralysis by analysis the principle of affordable loss an informal business plan
ANSWER: C, Knowledge, Moderate, p. 199 AACSB Analytic, Creation of Value
63. A new venture should identify anticipated costs of opening the business, and project, month by month, the expenses that reasonably can be expected for the first one to three years. This is usually done in the ___________. partnership agreement profit and loss statement new-venture plan prospectus
ANSWER: C, Knowledge, Moderate, p. 199 AACSB Analytic, Creation of Value
66. Kipper Overstreet is a venture capitalist. When he provides funds to a company, Overstreet can expect to __________. wait a number of years for a return on his investment receive federal loan guarantees take an active role in management sell the business at a profit
ANSWER: C, Knowledge, Moderate, p. 200 AACSB Analytic, Individual Dynamics
68. A popular global start-up strategy that now accounts for 31% of foreign sales by American companies is __________. e-commerce franchising exporting countertrade
ANSWER: C, Knowledge, Moderate, p. 200 AACSB Analytic, Strategy
75. A board of directors is particularly useful for the family business in its ability to __________. help secure outside sources of money force the resignation of "problem" family members furnish unbiased advice audit financial statements in a way that is publicly acceptable
ANSWER: C, Knowledge, Moderate, p. 203 AACSB Analytic, Creation of Value
12. Dell Computers' vision is to __________. lead the Internet economy sell the most computers bring value to communities become a global innovator
ANSWER: C, Knowledge, Moderate, p. 217 AACSB Analytic, Leadership Principles
17. An organization's __________ represent what it is committed to achieving. a. tactical plans b. strategic controls goals feedback systems
ANSWER: C, Knowledge, Moderate, p. 218 AACSB Analytic, Creation of Value
97. At Bombardier, to help leaders and managers cascade business-critical information, the ____________ function provides are series of tools. a. strategic action b. self-management c. communication d. multicultural
ANSWER: C, Knowledge, Moderate, p. 238 AACSB Analytic, Strategy
85. Multicultural requires that you have an open attitude and sensitivity to cultures different from yours. Which of the following is true concerning this competency? A country's culture seldom affects behavior. Very few American companies have global markets for their services and products. You must recognize that culture makes a difference in how people think and act. Your own culture rarely determines your basic values.
ANSWER: C, Knowledge, Moderate, p. 24 AACSB: Analytic, Creation of Value
92. L'Oréal was concerned about cultural acceptance of the company in China due to a (an) a. resistance to American products b. lack of herbal ingredients c. focus on modern make-up d. insensitive marketing approach
ANSWER: C, Knowledge, Moderate, p. 25 AACSB: Analytic, Creation of Value
5. The Labor Movement in America was written in 1886 by __________. a. Henry R. Towne Fredrick Taylor Richard T. Ely Henri Fayol
ANSWER: C, Knowledge, Moderate, p. 41 AACSB Analytic, Creation of Value
26. Managers in bureaucratic organizations, such as the civil service and IRS, often rely on the results of written and physical tests, amount of formal education, and previous work experience in making hiring and promotion decisions. These criteria are most associated with _______. a. division of labor b. stakeholder control lifelong career commitment hierarchical structure
ANSWER: C, Knowledge, Moderate, p. 46 AACSB Analytic, Individual Dynamics
64. The focus of administrative management is on _____________. the whole organization the employee the manager the environment
ANSWER: C, Knowledge, Moderate, p. 52 AACSB Analytic, Creation of Value
76. The Hawthorne studies established a concept called the Hawthorne Effect. In other words, _________________. lighting conditions are the single most important element in increasing productivity productivity cannot be an overriding concern of management when employees are given special attention, productivity is likely to change regardless of whether working conditions change management pressure rather than group demands has the strongest influence on worker productivity
ANSWER: C, Knowledge, Moderate, p. 55 AACSB Analytic, Creation of Value
89. The technology used in the systems viewpoint is known as a(n) _______. input feedback transformation process output
ANSWER: C, Knowledge, Moderate, p. 58 AACSB Technology, Creation of Value
99. A brand blog attack can do all of the following except: a. expose a design flaw in a product. b. criticize a company for its political positions c. create a positive image among consumers about a company's outputs d. allow one company to anonymously critique a competitor
ANSWER: C, Knowledge, Moderate, p. 60 AACSB Analytic, Creation of Value
106. In China, Phillips has more than 20,000 employees. In India, Phillips has 1,500 software engineers. The Indian factory is more efficient than the Chinese factory however, Phillips continues to operate in both countries. Philips must continue to operate in both countries because of the ______________ in India. a. lack of communication b. lack of innovation c. poor roads d. poor technology
ANSWER: C, Knowledge, Moderate, p. 62 AACSB Analytic, Group Dynamics
1. ___________ is a group that monitors Halliburton and reports on its alleged unethical and illegal behaviors and decisions. FDA Environmental Protection Agency Halliburton Watch Halliburton Ethics Committee
ANSWER: C, Knowledge, Moderate, p. 77 AACSB Ethics, Ethical Responsibilities
97. Disney's theme parks outside America have incorporated unique features that meet the special needs and interests of local customers. Disney is responding with a __________ strategy. global international licensing multidomestic
ANSWER: D, Application, Difficult, p. 174 AACSB Reflective Thinking, Strategy
26. New employees of Citigroup are required to sign a statement that does all of the following except: a. acknowledges that they have read the Code of Conduct b. indicates agreement to adhere to the Code of Conduct c. guarantees their compliance with companies policies d. expresses an understanding of the obligations as an employee
ANSWER: C, Knowledge, Moderate, p. 87 AACSB Ethics, Ethical Responsibilities
35. The __________ approach focuses on actions (behavior) and their results, not on the motives for such actions. moral rights caveat emptor utilitarian fairness
ANSWER: C, Knowledge, Moderate, p. 91 AACSB Ethics, Ethical Responsibilities
59. The principle of __________ has been at the center of controversies associated with new media, such as advertising on the Internet. caveat emptor private property free speech moral rights
ANSWER: C, Knowledge, Moderate, p. 96 AACSB Ethics, Ethical Responsibilities
75. The __________ ethical approach characterizes the principles adopted by most businesses in the U.S. privacy moral rights utilitarian justice
ANSWER: C, Knowledge, Moderate, p. 98 AACSB Ethics, Ethical Responsibilities
24. Recently, _____________ shut down a popular blog that had criticized the firing of an editor at a progressive newspaper in Beijing. a. Google b. Yahoo c. Microsoft d. Excite
ANSWER: C, Knowledge, Moderate, pp. 122-123 AACSB Analytic, Environmental Influence
28. Societies which rank low in power distance place less emphasis on __________. a. integrity predictability c. inequality aggressiveness
ANSWER: C, Knowledge, Moderate, pp. 123-124 AACSB Analytic, Environmental Influence
34. ________________ refers to a tight social framework in which group members focus on the common welfare and feel strong loyalty toward one another. Masculinity Femininity Collectivism Individualism
ANSWER: C, Knowledge, Moderate, pp. 125-126 AASCB
81. An arrangement in which the export sale of goods and services by an organization is linked to an import purchase of other goods and services is known as __________. a. franchising b. exporting countertrade an alliance
ANSWER: C, Knowledge, Moderate, pp. 170-171 AACSB Analytic, Creation of Value
100. For the ____________ strategy to succeed, the customers of world-wide firms must have needs that are basically similar in many countries. Thus, primary marketing strategies are highly transferable across national boundaries. a. exporting b. multidomestic global multinational
ANSWER: C, Knowledge, Moderate, pp. 175-176 AACSB Analytic, Strategy
4. In launching a new business, entrepreneurs typically incorporate all of the following except: something new. something better. different location an underserved or new market.
ANSWER: C, Knowledge, Moderate, pp. 184-185 AACSB Analytic, Creation of Value
71. Henry Estate Winery has successfully exported wine to all of the following countries except: a. Canada b. Japan c. Australia d. the United Kingdom
ANSWER: C, Knowledge, Moderate, pp. 201-202 AACSB Analytic, Environmental Influence
94. Middle and first-line managers and employee teams normally base tactical plans on the organization's __________ plan. cultural staff strategic operational
ANSWER: C, Knowledge, Moderate, pp. 237-238 AACSB Analytic, Strategy
97. Current polling data indicates that the qualities employers are the least concerned with in hiring young employees are: self-management integrity technical skills personality
ANSWER: C, Knowledge, Moderate, pp. 27 AACSB: Analytic, Creation of Value
49. All of the following except __________ are areas in which scientific management fails to meet workers' needs. satisfaction independence desire for money All are areas of failure.
ANSWER: C, Knowledge, Moderate, pp. 50-51 AACSB Analytic, Creation of Value
86. The military pioneered __________ as a problem-solving methodology relating to war production and logistics. the contingency viewpoint division of labor the systems viewpoint total quality management
ANSWER: C, Knowledge, Moderate, pp. 57-58 AACSB Analytic, Strategy
62. The __________ principle of ethics requires that individuals not be treated differently on the basis of arbitrarily defined characteristics. collectivism procedural justice distributive justice utilitarian
ANSWER: C, Knowledge, Moderate, pp. 96-97 AACSB Ethics, Ethical Responsibilities
112. Criteria for evaluating the quality of a firm's integrated strategy include all of the following except: a. Will the differentiators be sustainable? b. Is the strategy implementable? c. Are the elements unique? d. Are there enough resources to pursue this strategy?
ANSWER: C, Knowledge, Moderate. p. 246 AACSB Analytic, Strategy
22. When Lois Dimpfel, vice president of IBM Worldwide Olympic Technology Systems, was organizing the team to bring the Salt Lake City Games to millions of TV viewers, she was primarily involved in the _______________ managerial function. planning controlling organizing leading
ANSWER: D, Application, Difficult, p. 10 AACSB: Reflective Thinking, Creation of Value
6. The Internet is revolutionary because it has dramatically reduced the cost of communication and coordination in business and personal transactions. This is an illustration of __________________. how firms are reaching out directly to customers how firms are challenging traditional retailers how firms are challenging their distributors all of the above are correct
ANSWER: D, Application, Difficult, p. 117 AACSB Reflective Thinking, Environmental Influence
44. Kayla Cook is a manager with Randalls. Her responsibilities partially include establishing target dates for products and developing evaluation criteria for performance. These responsibilities are primarily associated with _____________ management. first-line team top middle
ANSWER: D, Application, Difficult, p. 12 AACSB: Reflective Thinking, Creation of Value
49. Sam Shichijo is attempting to establish target dates for his division. Further, he has been involved in developing evaluation criteria for the performance of his employees and supervisors. He is a little overwhelmed with deciding which projects should be given money, personnel, and materials. Shichijo would most likely be classified as a ___________ manager. first-line hands-on strategic middle
ANSWER: D, Application, Difficult, p. 12 AACSB: Reflective Thinking, Creation of Value
13. Neda Jahansouz's new business has been offered assistance through a business incubator. At the end of two or three years, which of the following outcomes is not expected for Jahansouz's venture? business failure expansion within the incubator sufficient growth to move out of the incubator possible purchase by the incubator operators
ANSWER: D, Application, Difficult, p. 186 AACSB Reflective Thinking, Creation of Value
35. The divisions of Solomon Sons Limited generally operate in the same or similar markets, use similar technologies, share common distribution channels and benefit from common strategic assets. Solomon Sons is a(n) __________-business firm. a. single b. dominant concentric related
ANSWER: D, Application, Difficult, p. 222 AACSB Reflective Thinking, Strategy
54. The Wesson Corporation owns a valuable piece of commercial real estate. JWA, Inc. has extensive experience in developing and operating shopping centers. They form a joint venture, called Barrick Associates, to develop Wesson's site. Barrick Associates is an example of a(n) __________ strategy. backward integration horizontal integration forward integration alliance
ANSWER: D, Application, Difficult, p. 226 AACSB Reflective Thinking, Strategy
20. David Williams is an area supervisor for Jos A. Banks. Williams feels he should always be fair and impersonal when dealing with his subordinates. Being impersonal in his supervision of others is a characteristic of _______________. a. decoding b. referent power person-role conflict authority structure
ANSWER: D, Application, Difficult, p. 44 AACSB Reflective Thinking, Individual Dynamics
25. The bureaucratic characteristic of ____________ allows general goals of the organization to be broken into more specific goals for each part of the organization. For example, Robert Half International keeps its various temporary agency and permanent placement operations as separate business units, as well as setting up industry specific personnel companies. a. traditional authority b. departmentalization symbolic authority rationality
ANSWER: D, Application, Difficult, p. 46 AACSB Reflective Thinking, Individual Dynamics
14. One who understands the workings of a business enterprise is aware of the fact that in large organizations, managers may be distinguished by the scope of the activities they manage. Therefore, which of the following statements is accurate? Functional mangers supervise employees with general skills that may be applied to many roles. General Managers supervise employees with specialized skills in a single area. General Managers may be responsible for the operation of a department, but only if it is very small. General Managers are responsible for the overall operations of a more complex unit such as a company or division.
ANSWER: D, Application, Difficult, p. 8 AACSB: Reflective Thinking, Creation of Value
67. Vandelay Industries expects employees to take only their allotted 60 minute lunch period. The company's executives think that longer unauthorized breaks by some employees can negatively affect fellow workers and the company as a whole. This view supports the ___________ principle. expectancy natural duty comparable worth fairness
ANSWER: D, Application, Difficult, p. 97 AACSB Ethics, Ethical Responsibilities
13. Jie Yu has just been fired by his supervisor at the local plant where he has worked for many years. Yu has participated in all of the activities listed below, but only one activity is classified as an acceptable reason for him being fired. Which of the following is considered an acceptable reason for Yu being fired? engaging in an activity to protest wages filing of unfair labor practice charges against the company reporting a violation to OSHA committing harassment, which is considered a civil rights violation
ANSWER: D, Application, Difficult, p.82 AACSB Ethics, Ethical Responsibilities
38. Jeff Raley is a manager with Hermann Hospital. He has saved the hospital hundreds of thousands of dollars by developing and implementing a new quality control system for purchasing supplies for all teams in the hospital. It is likely that Raley is a ________ manager. project top first-line middle
ANSWER: D, Application, Difficult, pp. 11-12 AACSB: Reflective Thinking, Creation of Value
90. Davis Watson has been assigned to a potentially large volume seasonal rental customer who brings a crew from Mexico every year. The reason previous salesmen have failed to get the order is most likely related to __________. a. integrity and ethical conduct b. understanding the industry c. lack of strategic planning d. cultural knowledge & understanding
ANSWER: D, Application, Difficult, pp. 24-25 AACSB: Reflective Thinking, Creation of Value
64. Communication competency is essential to effective managerial performance. Which of the following activities do not require this competency? meeting face-to-face with customers negotiating via teleconferencing being aware of body language during a meeting all of the above require the communication competency
ANSWER: D, Application, Easy, p. 15 AACSB: Communication, Creation of Value
23. John Stringfield has strived to act as a responsible member of the community. He has respected the law, protected public goods, and contributed to the community betterment. Stringfield has engaged in the ______________ principle. a. fiduciary b. reliability c. fairness d. citizenship
ANSWER: D, Application, Easy, p. 86 AACSB Ethics, Ethical Responsibilities
45. Holly Varni of Top's Bakery is responsible for directing and coordinating the activities of first-line managers. Holly's position would best be classified as a ________. top manager second-line manager project leader middle manager
ANSWER: D, Application, Moderate, p. 12 AACSB: Reflective Thinking, Creation of Value
47. The threat or reality of increased competition in an industry depends on the relative ease with which new firms can compete with established firms. In an industry with low barriers to entry, such as the __________ industry, competition will be fierce. a. airline b. health care public accounting fast-food
ANSWER: D, Application, Moderate, p. 129 AACSB Reflective Thinking, Environmental Influence
23. Kerry Smith has just moved into a top-level managerial role with Pepsi products. Which of the following is not part of the planning process Smith will be engaged in? establishing directions for the organization identifying the organization's resources to achieve organizational goals committing the organization's resources to achieve organizational goals structuring relationships among employees that will enable them to carry out management's plans and meet specific goals
ANSWER: D, Application, Moderate, p. 13-14 AACSB: Reflective Thinking, Creation of Value
75. IBM has teamed up with Motorola and Toshiba to improve its semiconductor manufacturing ability to make superdense chips. These companies are utilizing the __________ strategy. negotiation lobbying representation alliance
ANSWER: D, Application, Moderate, p. 134 AACSB Reflective Thinking, Environmental Influence
92. In the late 1990s, technology had a profound impact on the distribution strategies of companies. Which of the following is not an example of how technology has changed the distribution of goods and services? Amazon.com offered online ordering, threatening established retail booksellers. E*Trade allowed customers to access their accounts directly to buy and sell stocks. Combining traditional catalog sales with the advantages of Internet access allowed Lands' End to meet its customer's needs in a new way. The U.S. Internal Revenue Service has developed a new "Taxpayers Bill of Rights."
ANSWER: D, Application, Moderate, p. 140 AACSB Reflective Thinking, Environmental Influence
31. In 2003, before waging war with Iraq, President George W. Bush determined that the actions of the government of Iraq were an unusual and extraordinary threat to the national security and foreign policy of the United States. This is an example of __________. a. political risk b. international instability economic climate foreign conflict
ANSWER: D, Application, Moderate, p. 160 AACSB Reflective Thinking, Creation of Value
57. Wrigley's acquisition of various confectionery assets from Kraft Foods was viewed by top management as a form of ______________ diversification. a. forward b. backward horizontal related
ANSWER: D, Application, Moderate, p. 226 AACSB Reflective Thinking, Strategy
90. Ford has redesigned the Ford Explorer with many new features. Ford is following a __________ strategy. a. product amalgamation b. product reengineering market alliance product development
ANSWER: D, Application, Moderate, p. 237 AACSB Reflective Thinking, Strategy
22. Henry Pham lives with a system whereby authority is based on ancestry, gender, and birth order. This characterizes ______________ authority. a. contingency-based b. charismatic rational-legal traditional
ANSWER: D, Application, Moderate, p. 44 AACSB Reflective Thinking, Individual Dynamics
23. Rick Hymer's orders are obeyed because he is a store manager at Macy's department stores. However, this authority depends on employees' acceptance of the organization's rules. This illustrates ___________ authority. a. traditional b. charismatic expert rational-legal
ANSWER: D, Application, Moderate, p. 44 AACSB Reflective Thinking, Individual Dynamics
54. Jim Costanzo is a new manager with Dell Computers. He believes that each employee in his division must receive instructions about a particular operation from only one person in order to avoid conflicting instructions and any confusion. According to Fayol, the _________ principle is being emphasized. equity authority centralization unity of command
ANSWER: D, Application, Moderate, p. 51 AACSB Analytic, Strategy
71. Karen Sweden is well thought of by her peers within the retail industry. Sweden thinks that subordinates should be involved in the decision-making process whenever they are affected by a decision. Sweden adopted this philosophy after studying __________. Joan Woodward Elton Mayo Lillian Taylor Mary Parker Follett
ANSWER: D, Application, Moderate, p. 54 AACSB Reflective Thinking, Creation of Value
91. A company that produces standardized products without communication from its customers operates in a(n) __________ system. a. open b. routine hierarchical closed
ANSWER: D, Application, Moderate, p. 58 AACSB Analytic, Creation of Value
49. Managers and employees alike should not have personal interests that conflict with the organization's achievement of its goals. Conflicts of interest, however, can sometimes be difficult to judge. Which of the following is especially susceptible to conflicts of interest? A purchasing agent who has a significant financial interest in one of the firm's major suppliers. Employees of an accounting firm who own stock in companies that the firm audits. American managers doing business with co-owners globally. all of the above
ANSWER: D, Application, Moderate, p. 93 AACSB Ethics, Ethical Responsibilities
35. Lawrence Davis has been working for BPAmoco for three years. He recently was promoted to production supervisor. Allie Wagner supervises sales associates who go to people's homes and sell insurance. Both positions may be classified as a ___________ manager. matrix middle functional first-line
ANSWER: D, Application, Moderate, pp. 11-12 AACSB: Reflective Thinking, Creation of Value
33. Justin Allen was raised in a culture that gives its highest respect and rewards to those with the greatest personal achievement. This is opposite of __________. a. power distance b. individualism uncertainty avoidance collectivism
ANSWER: D, Application, Moderate, pp. 125-126 AACSB Reflective Thinking, Environmental Influence
99. A Black & Decker subsidiary in one country manufactures parts of products, such as power drills, and exchanges components with subsidiaries in other countries to complete the products. This illustrates the __________ strategy. a. international b. importing multidomestic global
ANSWER: D, Application, Moderate, pp. 175-176 AACSB Reflective Thinking, Strategy
102. Which of the following is not an example of a differentiation strategy? a. Mercedes-Benz—unique brand image b. Infiniti—high quality c. Lexus—customer service d. Wal-Mart—cost competitiveness
ANSWER: D, Application, Moderate, pp. 239-240 AACSB Reflective Thinking, Strategy
33. Joe Jones is aware of wrongdoing and unethical behavior within the manufacturing company where he works. Before Jones blows the whistle, he would be wise to ask himself some very difficult questions. Which of the following would not be helpful to the decision-making process Jones must complete before blowing the whistle? Is this the only way? Does he have documentary evidence? Why is he doing this? Will the jury award be worth it?
ANSWER: D, Application, Moderate, pp. 90-91 AACSB Ethics, Ethical Responsibilities
15. Enron, WorldCom, and Tyco would be affected by the passage of __________. the Corporate and Criminal Fraud Accountability Act of 2002 Section 806 of the Sarbanes-Oxley Act the Sarbanes-Oxley Act all of the above
ANSWER: D, Application, Moderate, pp.82-83 AACSB Ethics, Ethical Responsibilities
17. Which of the following is least important to new workers entering the job market? flexibility in terms of employment making a meaningful contribution to society being appreciated and supported by management ability to earn a good living
ANSWER: D, Knowledge, Difficult, p. 121 AACSB Analytic, Environmental Influence
86. The United States and several other industrial societies have become information societies. This shift was made possible by _________________. a well crafted political strategy the industrial revolution a strategic alliance among these nations the explosion of computer-based and telecommunications technologies
ANSWER: D, Knowledge, Difficult, p. 137 AACSB Analytic, Environmental Influence
4. In a recent poll, most people identified _________ as the biggest threat to U. S. jobs. increased imports b. immigration c. poor quality of domestic products d. cheap foreign labor
ANSWER: D, Knowledge, Difficult, p. 151 AACSB Analytic, Creation of Value
10. Culture as it relates to __________ in India and Turkey are countries characterized by high uncertainty avoidance. time orientation value systems economic systems social change
ANSWER: D, Knowledge, Difficult, p. 154 AACSB Analytic, Creation of Value
65. Which of the following is true concerning informal communication? In China, building a social network is known as guanxi. In Korea, a social network is known as kwankye. Informal communication is often times delivered spontaneously. All of the following are true concerning informal communication.
ANSWER: D, Knowledge, Difficult, p. 16 AACSB: Communication, Creation of Value
62. NAFTA was expected to ______________________. reduce and eliminate numerous tariffs reduce and eliminate most nontariff barriers make all trade between the U.S., Mexico, and Canada tariff free a and b only
ANSWER: D, Knowledge, Difficult, p. 166 AACSB Analytic, Creation of Value
66. For certain industries, most notably _____________, NAFTA imposes higher North American content rules. a. automobiles b. textiles apparel all of the above
ANSWER: D, Knowledge, Difficult, p. 167 AACSB Analytic, Creation of Value
74. The European Union has increased market opportunities and fostered competition for companies outside of Europe. For example, ____________, established a major hub in Cologne, Germany. a. Ford b. NBC IBM UPS
ANSWER: D, Knowledge, Difficult, p. 169 AACSB Analytic, Creation of Value
50. Which of the following is not a potential disadvantage to buying an existing business? mismanagement undisclosed problems high costs restrictive agreements
ANSWER: D, Knowledge, Difficult, p. 197 AACSB Analytic, Creation of Value
74. The view of successful teamwork includes all of the following except: a competency that involves taking the lead at times. supporting others who are taking the lead at other times. collaborating with others in the organization on projects that do not even have a designated team leader. setting the strategic goals for the team.
ANSWER: D, Knowledge, Difficult, p. 20 AACSB: Analytic, Creation of Value
78. The development of a legal agreement to govern a family business should address all of the following issues except __________. a. contingencies for disposing of the business policies for determining salaries, bonuses, and dividends creating a succession plan specific job descriptions of family members
ANSWER: D, Knowledge, Difficult, p. 204 AACSB Analytic, Creation of Value
41. GE is made up of six primary businesses, including all of the following except ________. a. GE Commercial Finance b. GE Infrastructure c. GE Healthcare d. GE Education
ANSWER: D, Knowledge, Difficult, p. 222 AACSB Analytic, Strategy
40. Jeff Immelt, the CEO of GE, contends: a. our goal is to use size to be great b. size with complexity breeds bureaucracy c. size can insulate a company from failure d. all of the above
ANSWER: D, Knowledge, Difficult, p. 223 AACSB Analytic, Strategy
53. The _________ strategy is an alternative to traditional forms of backward, forward, and horizontal integration. a. related b. benchmarking unrelated alliance
ANSWER: D, Knowledge, Difficult, p. 226 AACSB Analytic, Strategy
88. The principal way(s) to implement a market development strategy include: a. enter new geographic markets b. develop new uses for current facilities develop new uses for current products All of the above are principal ways to implement a market development strategy.
ANSWER: D, Knowledge, Difficult, p. 237 AACSB Analytic, Strategy
106. __________ is (are) associated with a cost leadership strategy. a. Utilizing facilities or equipment that yield high economies of scale b. Constantly striving to reduce per unit overhead, manufacturing, marketing, and follow-up service costs c. Minimizing labor-intensive personal services and sales forces d. All of the above
ANSWER: D, Knowledge, Difficult, p. 242 AACSB Analytic, Strategy
6. Many business "giants" were born in 1886. All of the following were in operation except ___________. a. Coca-Cola b. Sears, Roebuck and Company c. Westinghouse d. International Business Machines (IBM)
ANSWER: D, Knowledge, Difficult, p. 41 AACSB Analytic, Creation of Value
29. In order to maximize call center efficiency, supervisors require call workers to do all of the following except __________. answer inbound calls by the fourth ring restrict their rest breaks to 5 minutes be electronically monitored for productivity not leave the building for lunch
ANSWER: D, Knowledge, Difficult, p. 46 AACSB Analytic, Individual Dynamics
40. Frederick Taylor developed a program that matched workers, shovel sizes, materials, and the like for each job. By the end of the third year, his program reduced the number of workers needed in the plant from 600 to . a. 500 b. 400 340 140
ANSWER: D, Knowledge, Difficult, p. 49 AACSB Analytic, Group Dynamics
55. __________ was the first person to group managers' duties into basic functions of planning, organizing, and leading. Henry Ford Frederick Taylor Frank Gilbreth Henri Fayol
ANSWER: D, Knowledge, Difficult, p. 51 AACSB Analytic, Creation of Value
43. A direct or indirect payment by a government to its country's firms to make selling or investing abroad cheaper for them is known as a(n) ____________. a. quota b. export control import control subsidy
ANSWER: D, Knowledge, Easy, p. 163 AACSB Analytic, Creation of Value
97. Quantitative decision-making techniques lack which of the following characteristics? analysis of inputs, transformation processes, and outputs software that is usable on desktop computers. a primary focus on direct actions managers can take alternative actions presented in measurable terms
ANSWER: D, Knowledge, Difficult, p. 59 AACSB Analytic, Creation of Value
21. The Ethics Resource Center in Washington, D.C. furnishes all of the following except __________. publications consulting implementation legal representation
ANSWER: D, Knowledge, Difficult, p. 83 AACSB Ethics, Ethical Responsibilities
15. In what specific sequence do managers perform their managerial functions in order to achieve company goals? planning, organizing, leading, controlling organizing, leading, controlling, planning leading, controlling, planning, organizing None of the above because the functions are often performed simultaneously.
ANSWER: D, Knowledge, Difficult, p. 9 AACSB: Analytic, Creation of Value
39. Milton Friedman, the Nobel prize-winning economist, advocated the _________ ethical approach when making a decision. moral rights justice law and order principle utilitarian
ANSWER: D, Knowledge, Difficult, p. 91 AACSB Ethics, Ethical Responsibilities
42. How could the results of the managerial values profile be useful? It would be helpful to managers who wish to make sure they follow the laws. It would identify the right ethical approach to make. It would help determine which employees were not ethical. none of the above
ANSWER: D, Knowledge, Difficult, p. 92 AACSB Ethics, Ethical Responsibilities
76. Which of the following is one of the universal duties of the natural duty principle? Attain ends that benefit everyone. Safety of individuals is a primary concern. Individuals must follow their own conscience. Do not cause unnecessary suffering.
ANSWER: D, Knowledge, Difficult, p. 98 AACSB Ethics, Ethical Responsibilities
39. The most important managerial task performed by first-line managers is usually ______. a. managing multiple departments b. coordinating teams c. scouting for possible take-over targets d. managing individual performance
ANSWER: D, Knowledge, Difficult, pp. 11-12 AACSB: Analytic, Creation of Value
34. Which of the following is not a factor in determining whether a first-line manager will be successful? has a strong technical expertise to teach subordinates is willing to let subordinates do the work plans and schedules work for employees has sales or marketing experience before becoming manager
ANSWER: D, Knowledge, Difficult, pp. 12-13 AACSB: Analytic, Creation of Value
41. Which of the following is not one of the key principles of long-term/short-term orientation? a. Individual status is recognized in the relationship between people. b. The family is the prototype of all social organizations. c. Allow others to maintain "face." d. All of the above are key principles of long-term/short-term orientation.
ANSWER: D, Knowledge, Difficult, pp. 126-127 AACSB Analytic, Environmental Influence
104. Various needs must be addresses for a multinational's global strategy to be successful. Which of the following is one of these needs? The firm needs to be a significant competitor in the world's most important regional markets—North America, Europe, and Asia. Most new goods and services need to be developed for the whole world. Profit targets should be based on product lines rather than regions or countries of the world. All of the above.
ANSWER: D, Knowledge, Difficult, pp. 175-176 AACSB Analytic, Strategy
69. Several considerations are involved in choosing between domestic and global start-ups. Which of the following is not a consideration? Are the best human resources dispersed among various countries? Will worldwide sales be required to support the venture? Do target customers require a venture to be international? What would make the most money in the short run?
ANSWER: D, Knowledge, Difficult, pp. 200-201 AACSB Analytic, Creation of Value
92. The personal banker job at First National was changed to start handling walk-in traffic and trying to sell additional banking products. This was a result of __________. human resource management diversification strategic planning tactical planning
ANSWER: D, Knowledge, Difficult, pp. 237-238 AACSB Analytic, Strategy
88. _____________ is essential in order to work with people from other backgrounds. a. Appropriate language b. Negotiation skills c. Social etiquette d. Openness and sensitivity
ANSWER: D, Knowledge, Difficult, pp. 24-25 AACSB: Analytic, Creation of Value
4. During the 30 years following the Civil War, the United States emerged as a leading industrial nation. Which of the following was not cited in the text as an important turning point in business and management history during that time? the presentation by Henry Towne of a paper titled "The Engineer as an Economist" to the American Society of Mechanical Engineers the founding of the American Federation of Labor (AFL) the Haymarket Affair All of the above were cited as important turning points.
ANSWER: D, Knowledge, Difficult, pp. 40-41 AACSB Analytic, Creation of Value
20. The dominant pattern of living and believing that is developed and transmitted by people is __________. a. a caste system b. power distance collectivism culture
ANSWER: D, Knowledge, Easy, p. 121 AACSB Analytic, Environmental Influence
44. Which of the following is not one of the five competitive forces faced by an organization? a. competitors b. new entrants c. customers d. government regulators
ANSWER: D, Knowledge, Easy, p. 128 AACSB Analytic, Environmental Influence
51. Typical job titles of top managers include all of the following except: chairman. division president. chief executive officer. All of the above are considered job titles for top managers.
ANSWER: D, Knowledge, Easy, p. 13 AACSB: Analytic, Creation of Value
63. It takes all of the following managerial competencies to be a great manager except: communication multicultural teamwork technical expertise
ANSWER: D, Knowledge, Easy, p. 14 AACSB: Analytic, Creation of Value
37. ____________ relates to the degree to which institutions, including the government, are perceived to be untrustworthy, are open to bribes, and conduct fraudulent business practices. a. Foreign instability b. Foreign conflict Political climate Corruption
ANSWER: D, Knowledge, Easy, p. 161 AACSB Analytic, Creation of Value
81. Which of the following are attributes of successful corporate entrepreneurs? strong communication competency ability to lead teams well-developed strategic action competency All of the above are attributes of successful corporate entrepreneurs
ANSWER: D, Knowledge, Easy, p. 205 AACSB Analytic, Creation of Value
5. Preparation for unexpected, major, and quick changes in the environment is called __________ planning. a. cascade b. DFD (design for deployment) tactical contingency
ANSWER: D, Knowledge, Easy, p. 215 AACSB Analytic, Strategy
22. The allocation of __________ is (are) considered a function of resource allocation. a. money b. people facilities all of the above
ANSWER: D, Knowledge, Easy, p. 218 AACSB Analytic, Strategy
27. Departmental managers and employee teams develop tactical plans to anticipate or cope with the actions of __________. competitors other departments customers all of the above
ANSWER: D, Knowledge, Easy, p. 219 AACSB Analytic, Strategy
25. The process of making concrete decisions about what to do, who will do it, and how to do it—within a time horizon of one year or less—is known as __________. a. resource allocation b. right-sizing contingency planning tactical planning
ANSWER: D, Knowledge, Easy, p. 219 AACSB Analytic, Strategy
89. The __________ strategy involves developing new or improved goods or services for current markets. a. product penetration b. product reengineering market alliance product development
ANSWER: D, Knowledge, Easy, p. 237 AACSB Analytic, Strategy
93. Self-management competency includes all of the following except: integrity and ethical conduct. personal drive and resilience. balancing work and life demands. Self-management competency includes all of the above.
ANSWER: D, Knowledge, Easy, p. 26 AACSB: Analytic, Creation of Value
38. The pioneer of scientific management is ______________. a. Henri Fayol b. Elton Mayo Henry Gilbreth Frederick Taylor
ANSWER: D, Knowledge, Easy, p. 49 AACSB Analytic, Creation of Value
45. Lillian Gilbreth was concerned mainly with _________________. a. the use of mathematical models b. the importance of the social development in the workplace c. paying employees a certain minimum wage plus bonuses d. the human side of industrial engineering
ANSWER: D, Knowledge, Easy, p. 50 AACSB Analytic, Individual Dynamics
90. In the systems viewpoint, management's role is to guide transformation processes by planning and ______________. organizing leading controlling all of the above
ANSWER: D, Knowledge, Easy, p. 58 AACSB Analytic, Creation of Value
93. Closed systems ___________ interaction with the external environment. a. feature b. are unrelated to maximize limit
ANSWER: D, Knowledge, Easy, p. 58 AACSB Analytic, Creation of Value
56. Invasions of privacy issues have included __________. drug testing video monitoring of employees and customers medical and psychological counseling records all of the above
ANSWER: D, Knowledge, Easy, p. 96 AACSB Ethics, Ethical Responsibilities
79. Which of the following are typical examples of stakeholder groups? customers suppliers regulatory agencies all of the above
ANSWER: D, Knowledge, Easy, p. 99 AACSB Ethics, Ethical Responsibilities
87. Which of the following is not one of the options created by new information technology that were not available with older technologies? computer-aided designs electronic shopping malls real-time financial management systems All of the above have been created by new information technology.
ANSWER: D, Knowledge, Easy, pp. 138-139 AACSB Analytic, Environmental Influence
1. Grupo Bimbo, established in Mexico City, Mexico in 1945 as a small bread production and delivery company, now has more than 100 brands including : Tia Rosa b. Mrs. Baird's c. Oroweat d. All of the above are Grupo Bimbo brands
ANSWER: D, Knowledge, Easy, pp. 149-150 AACSB Analytic, Creation of Value
49. Business opportunities are often implemented through which of the following ways: a. start-up b. purchase c. franchise All of the above are ways of implementing business opportunities.
ANSWER: D, Knowledge, Easy, pp. 196-198 AACSB Analytic, Creation of Value
69. The first task in the strategic planning process is to begin to develop an organization's __________. a. tactical plans b. strategic plans new weaknesses vision, mission, and goals
ANSWER: D, Knowledge, Easy, pp. 230-232 AACSB Analytic, Strategy
34. Which of the following is not a model that helps describe the ethical framework used in organizations? utilitarian moral rights justice All of the above are models.
ANSWER: D, Knowledge, Easy, pp. 91-98 AACSB Ethics, Ethical Responsibilities
57. To maintain security of online sessions, Fidelity Investments makes extensive use of all of the following except: firewall barriers encryption techniques authentication procedures network blockades
ANSWER: D, Knowledge, Easy, pp. 95-96 AACSB Ethics, Ethical Responsibilities
19. In the _________ process managers set standards of performance, measure current performance against those standards, take action to correct any deviations, and adjust the standards if necessary. planning organizing leading controlling
ANSWER: D, Knowledge, Moderate, p. 10 AACSB: Analytic, Creation of Value
94. At Johnson & Johnson, each of the companies and facilities is expected to go Beyond Compliance, striving to set the standard and be a leader among peer companies rather than simply meeting minimum requirements. To conform to the definition of "Beyond Compliance," each Johnson & Johnson company will: a. meet all Johnson & Johnson standards and regulatory requirements. b. optimize the design of products, processes and facilities c. achieve operational excellence. d. all of the above describe "Beyond Compliance"
ANSWER: D, Knowledge, Moderate, p. 105 AACSB Ethics, Ethical Responsibilities
23. Values can greatly affect how a manager _________________. determines what is and is not ethical behavior views other people and groups perceives situations and problems values can do all of the above
ANSWER: D, Knowledge, Moderate, p. 122 AACSB Analytic, Environmental Influence
70. What is the largest U.S. lobbying association representing the interests of individuals? a. The Christian Coalition b. National Chamber of Commerce c. National Association of Manufacturers d. American Association of Retired Persons
ANSWER: D, Knowledge, Moderate, p. 134 AACSB Analytic, Environmental Influence
78. ______________ refers to membership in an outside organization, which is intended to serve the interests of the member's organization or group. Alliance Joint venture Partnership Representation
ANSWER: D, Knowledge, Moderate, p. 135 AACSB Analytic, Environmental Influence
85. Which of the following statements is false? Technological change plays an increasingly pivotal role in an organization's environment. Many new technologies are radical enough to force organizations to reconsider their methods of operation. The United States has become an information society. All of the above statements are true.
ANSWER: D, Knowledge, Moderate, p. 137 AACSB Analytic, Environmental Influence
7. ______________ has created a new group of rapid-growth countries in Central and Eastern Europe. The establishment of the European Union The establishment of a common European currency, the Euro NAFTA The collapse of communism in 1989
ANSWER: D, Knowledge, Moderate, p. 152 AACSB Analytic, Creation of Value
16. Matthew Hansen's habit of putting his feet up on the desk during meetings will be perceived as an insulting nonverbal gesture by his __________ coworkers. German Mexican Japanese Jordanian
ANSWER: D, Knowledge, Moderate, p. 154 AACSB Analytic, Creation of Value
20. Americans prefer _________ power distances, and Mexicans are comfortable with ____________ power distances. a. large, moderate b. small, moderate c. large, small d. small, large
ANSWER: D, Knowledge, Moderate, p. 156 AACSB Analytic, Creation of Value
47. By law, U.S. firms __________________________________. may form and participate in cartels. may participate in but not form cartels. may form but not participate in cartels. may not form or participate in cartels.
ANSWER: D, Knowledge, Moderate, p. 163 AACSB Analytic, Creation of Value
55. The World Trade Organization (WTO) has 149 member countries, which account for about ______ percent of world trade. a. 67 b. 77 87 97
ANSWER: D, Knowledge, Moderate, p. 165 AACSB Analytic, Creation of Value
53. A series of negotiated understandings regarding trade and related issues among the participating countries is known as __________. a. NATO b. ECC IMF WTO
ANSWER: D, Knowledge, Moderate, p. 165 AACSB Analytic, Creation of Value
68. Luis Berrondo, CEO of Mabe, seized an opportunity created by NAFTA to expand his business. Mabe exports _________________ throughout much of North and South America. refrigerators washing machine heating elements all of the above
ANSWER: D, Knowledge, Moderate, p. 167 AACSB Analytic, Creation of Value
70. The European Union (EU), called the European Community (EC) until 1994, has _____ members. a. 15 b. 18 21 25
ANSWER: D, Knowledge, Moderate, p. 168 AACSB Analytic, Creation of Value
71 Which of the following is not one of the goals of the European Union? the creation of a single market among member countries removal of trade barriers establishing the free movement of goods, people, services and capital All of the above are goals of the European Union.
ANSWER: D, Knowledge, Moderate, p. 168 AACSB Analytic, Creation of Value
83. A licensing strategy involves a contractual arrangement whereby a firm in one country gives other domestic or foreign firms the right to use all of the following except a __________. a. production process b. patent trademark royalty
ANSWER: D, Knowledge, Moderate, p. 171 AACSB Analytic, Strategy
88. Today, Singer Sewing Machine franchises number more than _________ in Mexico. a. 200 b. 400 c. 600 d. 800
ANSWER: D, Knowledge, Moderate, p. 173 AACSB Analytic, Creation of Value
7. Jake Burton Carpenter succeeded with his snowboards by __________. introducing a completely new product line teaming up with the most talented designers observing his own kids improving upon an existing design
ANSWER: D, Knowledge, Moderate, p. 184 AACSB Analytic, Individual Dynamics
8. Which of the following groups has not experienced an increase the number of entrepreneurs in recent years? women entrepreneurs in Europe and Asia minorities All of these groups have realized increases.
ANSWER: D, Knowledge, Moderate, p. 185 AACSB Analytic, Creation of Value
11. How does a business incubator support the development of new businesses? rents space to people wanting to start businesses provides moral support serves businesses by offering administrative services All of the above support the development of new businesses.
ANSWER: D, Knowledge, Moderate, p. 186 AACSB Analytic, Creation of Value
18. Which of the following is not cited as a frequent motivator for successful entrepreneurs? personal achievement self-confidence dislike of large organizations balance of work and family
ANSWER: D, Knowledge, Moderate, p. 189 AACSB Analytic, Creation of Value
35. The dimensions of the self-management competency illustrated through Jay Goltz, founder of the Goltz Group, include: a. willingness to admit mistakes b. showing perseverance in the face of obstacles c. analyzing and learning from work and life experiences d. all of these are illustrated
ANSWER: D, Knowledge, Moderate, p. 191 AACSB Analytic, Creation of Value
39. Most successful entrepreneurs __________ put their business plans in writing. The time horizon is relatively __________. As the time frame grows even longer, the plans tend to become more __________. do: long: specific do not: short:specific do not: long: general do: short:general
ANSWER: D, Knowledge, Moderate, p. 192 AACSB Analytic, Creation of Value
56. Sharhonda Jones is interested in starting her own Home Health Care business. Which of the following would be excellent sources of information for Jones? the Internet personal contacts publication: INC All would be excellent sources
ANSWER: D, Knowledge, Moderate, p. 197 AACSB Analytic, Creation of Value
58. SCORE (Service Corps of Retired Executives) provides free and confidential counseling and low-cost workshop services to help individuals: a. write a business plan b. apply for a loan c. become more confident small business owners d. SCORE helps individuals do all of the above
ANSWER: D, Knowledge, Moderate, p. 198 AACSB Analytic, Individual Dynamics
75. A manager brings conflict and dissent into the open and uses it to enhance the quality of decision, while at the same time facilitating cooperative behavior and keeping the department moving toward its goals. What competency is the manager demonstrating? communication planning and administration strategic action teamwork
ANSWER: D, Knowledge, Moderate, p. 20 AACSB: Analytic, Creation of Value
80. Corporate entrepreneurship, essential for long-term survival of any established company, has become widely accepted in successful companies such as: Oracle Disney General Electric all of the above are companies that use corporate entrepreneurship
ANSWER: D, Knowledge, Moderate, p. 204 AACSB Analytic, Creation of Value
1. MTV Networks recent strategic moves included which of the following: online communities broadband video on demand all of the above are strategic moves
ANSWER: D, Knowledge, Moderate, p. 213 AACSB Analytic, Strategy
9. After Hurricane Katrina, Mississippi Power Company struggled to recover because: a. there was too much centralization of decision making b. their storm implementation plan was not well developed c. too many employers did not have a logistical or storm contingency assignment d. none of the above
ANSWER: D, Knowledge, Moderate, p. 216 AACSB Analytic, Strategy
14. Which of the following questions is not often answered in a mission statement? What business are we in? Who are we? What are we about? How will we compete?
ANSWER: D, Knowledge, Moderate, p. 217 AACSB Analytic, Leadership Principles
18. Goals may be expressed __________. a. qualitatively b. quantitatively covertly both a and b are correct
ANSWER: D, Knowledge, Moderate, p. 218 AACSB Analytic, Strategy
19. Which of the following is not a stated goal of Goodyear Tire & Rubber Company as discussed in the text? a. reduce company operating costs b. simplify the supply chain and sales processes c. expand the business through introduction of new products d. create injury free workplaces
ANSWER: D, Knowledge, Moderate, p. 218 AACSB Analytic, Strategy
30. Eduardo Rojas is interested in diversification as a means of understanding levels of strategy and planning. A firm's diversification level may be all of the following except a __________-business firm. a. single b. dominant related horizontal
ANSWER: D, Knowledge, Moderate, p. 221 AACSB Analytic, Strategy
37. A __________ is a firm that consists of distinct companies that have little or no relation to each other in terms of goods, services, or customers served. megabusiness limited partnership concentric company conglomerate
ANSWER: D, Knowledge, Moderate, p. 222 AACSB Analytic, Strategy
60. According to Sherron Watkins Enron-related court testimony, she indicated that: a. she trusted Ken Lay, the CEO, and thought he didn't know about the Raptors b. she asked Ken Lay to come clean about Andrew Fastow's side deals c. Enron's law firm lied to her when claiming it had checked the accounting d. all of the above
ANSWER: D, Knowledge, Moderate, p. 228 AACSB Analytic, Creation of Value
84. Robert Siegel, CEO of Lacoste, proved that he was good at understanding the industry in which he operates. Siegel knew he needed to develop a premium brand and retool Lacoste's sporty image. Siegel signed several high-profile celebrities to represent Lacoste, including all of the following except: a. news anchor Katie Couric b. actress Natalie Portman c. tennis pro Andy Roddick d. comedian Jerry Seinfeld
ANSWER: D, Knowledge, Moderate, p. 23 AACSB: Analytic, Creation of Value
73. __________ is often a response to high profits earned by established firms and/or rapid growth in an industry. The increased bargaining power of customers The increased rivalry among competitors The increased bargaining power of suppliers The entry of new competitors
ANSWER: D, Knowledge, Moderate, p. 233 AACSB Analytic, Strategy
98. Jeff Bezos founded Amazon.com with a loan from his parents. Banks and venture capital firms would not loan to an internet startup company. Bezos is an example of the __________ required to face setbacks and risk failure in a new business. a. integrity and interest in the job b. balance of work and life demands c. strategic action d. personal drive and resilience
ANSWER: D, Knowledge, Moderate, p. 27 AACSB: Analytic, Individual Dynamics
3. Starbucks definition of "total pay" refers to "your special blend" of all of the following except: compensation stock fringe benefits corporate housing
ANSWER: D, Knowledge, Moderate, p. 39 AACSB Analytic, Creation of Value
32. At Pulte Homes, _____________ now drive(s) every location decision. centralized decision-making knowledgeable managers overall analysis detailed market segmentation
ANSWER: D, Knowledge, Moderate, p. 47 AACSB Analytic, Strategy
53. Henri Fayol was the first person to group a manager's functions by planning and _______. organizing leading controlling all of the above
ANSWER: D, Knowledge, Moderate, p. 51 AACSB Analytic, Individual Dynamics
68. The writings of Mary Parker Follett constituted one of the cornerstones of early management thought. Her emphasis on the dynamics of management and _______ was in sharp contrast to the viewpoints of Weber, Fayol, and Taylor. a. not involving workers in solving problems b. static management thought c. fixed authority d. involving workers in solving problems
ANSWER: D, Knowledge, Moderate, p. 53 AACSB Analytic, Creation of Value
81. Harold MacDowell, CEO of TDI, used the __________ viewpoint of management. contingency administrative systems behavioral
ANSWER: D, Knowledge, Moderate, p. 56 AACSB Analytic, Creation of Value
79. TDIndustries (TDI) has created a culture of teamwork that promotes high performance and longevity based on the concept of _________________. a. proactive mentoring b. results based performance c. reward leadership d. servant leadership
ANSWER: D, Knowledge, Moderate, p. 56 AACSB Analytic, Creation of Value
83. The basic assumptions of the behavioral viewpoint may not always hold in practice. The negative effects of _____________ won't be overcome by the presence of pleasant co-workers. a poorly structured organization poor communication an aloof boss all of the above
ANSWER: D, Knowledge, Moderate, p. 57 AACSB Analytic, Creation of Value
104. The relative importance of each contingency variable _______________________. is dictated by the company's strategy is determined by the firm's industry structure depends on the type of managerial problem being considered All of the above are correct.
ANSWER: D, Knowledge, Moderate, p. 62 AACSB Analytic, Creation of Value
108. Which of the following is a criticism of the contingency viewpoint? It is not flexible. It does not use knowledge from other managerial approaches. It is too novel and unique. It really offers nothing new and is merely a meshing of techniques from other viewpoints of management.
ANSWER: D, Knowledge, Moderate, p. 63 AACSB Analytic, Creation of Value
110. The quality control process generally focuses on ______________. inputs transformation operations outputs All of the above.
ANSWER: D, Knowledge, Moderate, p. 64 AACSB Analytic, Creation of Value
24. In a world-class code of ethics, the __________ principle refers to carrying out the company's business in a diligent and loyal manner. a. transparency b. responsiveness c. reliability d. fiduciary
ANSWER: D, Knowledge, Moderate, p. 86 AACSB Ethics, Ethical Responsibilities
27. Tapesty, a multicultural contact agency, has experts specializing in ___________ consumers. a. Hispanic b. Asian c. Africa-American d. All of the above
ANSWER: D, Knowledge, Moderate, p. 89 AACSB Ethics, Ethical Responsibilities
55. The ______________ forbids retailers from disclosing video rental records without the customer's consent or a court order. Freedom from Monitoring Standards Fourth Amendment Electronic Privacy Act 1988 Video Privacy Protection Act
ANSWER: D, Knowledge, Moderate, p. 95 AACSB Ethics, Ethical Responsibilities
77. The ___________ ethical approach(es) is(are) most likely to be valued in European cultures? utilitarian moral rights justice both b and c are correct
ANSWER: D, Knowledge, Moderate, p. 98 AACSB Ethics, Ethical Responsibilities
81. All of the following except __________ are reasons management may think that social responsibility has a positive effect on their company's value. sound investment interference avoidance enlightened self-interest All of the above reasons would apply.
ANSWER: D, Knowledge, Moderate, p. 99 AACSB Ethics, Ethical Responsibilities
35. The degree to which society expects people to take care of themselves and their immediate families is one measure of its ____________________. masculinity femininity collectivism individualism
ANSWER: D, Knowledge, Moderate, pp. 125-126 AACSB Analytic, Environmental Influence
50. __________ is not a common factor that needs to be diagnosed in assessing barriers to entry. a. Capital requirements b. Government regulation Product differentiation The macroenvironment
ANSWER: D, Knowledge, Moderate, pp. 129-130 AACSB Analytic, Environmental Influence
82. AARP uses various political strategies to communicate its goals in the following area(s): a. Social Security b. Medicare c. long-term care d. all of the above
ANSWER: D, Knowledge, Moderate, pp. 136-137 AACSB Analytic, Environmental Influence
24. Grupo Bimbo found that tying project completion to __________________ did little to increase the probability of its success instead, it stimulated the excuses offered as to why the project was not completed. a. verbal recognition b. intrinsic satisfaction c. corporate success d. financial incentives
ANSWER: D, Knowledge, Moderate, pp. 159-160 AACSB Analytic, Creation of Value
101. Imperial Chemical Industries (ICI) has abandoned its traditional country-by-country organization in favor of worldwide business units. It wants employees to be less nationalistic and more concerned with what happens outside their country. ICI uses the ___________ strategy. a. exporting b. multidomestic multinational global
ANSWER: D, Knowledge, Moderate, pp. 175-176 AACSB Analytic, Strategy
109. In defining _______, it is important to be as specific as possible about the product categories, market segments, geographic areas, and core technologies. a. vehicles b. differentiators c. staging d. arenas
ANSWER: D, Knowledge, Moderate, pp. 243-244 AACSB Analytic, Strategy
8. There are several reasons why we consider the past events in studying modern management concepts. All of the following are reasons except: a. many of the practices established in past are still used today. b. the past is a good teacher, identifying practices that were successful and those no longer effective. c. history gives us a feel for the types of problems which managers have long struggled to find solutions. d. past successes generally lead to future successes.
ANSWER: D, Knowledge, Moderate, pp. 41-42 AACSB Analytic, Creation of Value
103. Which of the following is not one of the contingency variables in the contingency viewpoint? external environment technology people customer service
ANSWER: D, Knowledge, Moderate, pp. 61-62 AACSB Analytic, Creation of Value
82. "We believe our first responsibility is to the doctors, nurses, and patients, to mothers and fathers and al others who use our products and services" is part of Johnson & Johnson's ______________. a. Our Credo b. mission statement c. operational goals d. statement of rules
ASNWER: A, Knowledge, Moderate, p. 100 AACSB Ethics, Ethical Responsibilities
Which of the following is not one of Anne Mulcahy's strategies for the Xerox turnaround? a. examined what business they were in b. negotiated a settlement of a long investigation into fraudulent accounting practices c. centralized purchasing to main locations d. introduced new products and services
Centralized purchasing to main locations
Anne Mulcahy found that to remain competitive, she must keep her management team focused on: a. reduction of operating expenses b. growth while maintaining cost controls c. future mission and vision d. alignment to national goals
a. growth while maintaining cost controls
family obligation formulation
implementation planning
A ___________ is a person who plans, organizes, directs, and controls the allocation of human, material, financial, and information resources in pursuit of the organization's goals. organization CEO functional officer manager
manager
The term ____________refers to the tasks and activities involved in directing an organization or one of its units: planning, organizing, leading, and controlling. data processor manager management functional coordinator
manager
A(n) ______________ has a structure and strives to achieve goals that individuals acting alone could not reach. organization manager competency not-for-profit group
organization
Which of the following is not one of the duties of Anne Mulcahy, CEO at Xerox? a. restructuring Xerox b. creating a work environment c. performing a service call d. implementing a corporate merger
performing a service call
77. Decisions in a family business must strike a balance between two categories of criteria. These two categories are referred to as __________ criteria and __________ criteria. emotional
realistic economic
effectiveness rules
regulations policies
