Final Review Guide (Part 2)

When assessing the overall performance of a work team, important factors to consider include team cohesiveness and A. compensation needs. B. communication skills. C. service standards. D. customer orientation.

B Communication skills. Team leaders and managers should assess a team's performance at regular intervals to determine how well the team is working together. One factor that team leaders evaluate is the team's communication skills. To achieve the team's goals, team members must effectively communicate the necessary information to the appropriate people. If this does not occur, conflicts and misunderstandings are likely to result, which inhibits the team's ability to achieve its goals. Compensation, service standards, and customer orientation are not always factors that team leaders evaluate. These factors depend on the nature or purpose of the team.

Which of the following is an example of a primary need: A. Food B. Socialization C. Money D. Recognition

A Food. Primary needs are desires for things that the body cannot live without—air, water, and food. Secondary needs are desires for things that the body can live without—socialization (entertainment), recognition, power, and money.

Why do human-resource managers often post job openings on web sites such as Monster.com and CareerBuilder.com? A. To recruit employees B. To interview applicants C. To identify needed skills D. To assess training methods

A To recruit employees. Businesses often post job openings with online employment services such as Monster.com and CareerBuilder.com. Employment seekers can review the job descriptions and apply for the posted positions that are online. Then, the businesses review the applicants' résumés and set up interviews with the qualified candidates. Training occurs after hiring a qualified candidate.

Brenna wants to obtain a business degree from a well-known university. According to Alderfer's ERG theory of motivation, Brenna is seeking to satisfy a(n) ___________ need. A. gratuitous B. relatedness C. growth D. equity

C Growth. Alderfer's ERG theory of motivation suggests that needs fall into one of three categories— existence, relatedness, and growth. Growth needs involve personal desires to be creative or productive. An individual seeking a college degree is an example of a person seeking to grow by acquiring an education. Relatedness needs are desires for relationships with others, and existence needs are desires for personal well-being. Equity and gratuitous are not types of needs that are addressed in Alderfer's ERG theory of motivation.

Which of the following is an example of tacit knowledge: A. Documenting facts B. Calculating statistics C. Riding a bicycle D. Inventing a product

C Riding a bicycle. Tacit knowledge is knowledge consisting of personal opinions, experiences, expertise, or understanding that is not easily articulated, stored, or quantified. Riding a bicycle is an example of tacit knowledge. This is because the person does not know how to ride the bike until s/he actually performs the action. Explicit knowledge is knowledge or information consisting of words, numbers, codes, processes, and formulas that are easily stored, shared, and quantified (measured). Statistics, facts, and inventions are examples of explicit knowledge.

Which of the following is a form of web-based technology that business professionals use to share their expertise and to solve problems on an ongoing basis: A. Autoresponders B. Analog receptors C. Online communities D. Security devices

C Online communities. Online communities are groups of people who share common interests, issues, or concerns and regularly communicate via the Internet using a variety of venues—social networking sites, RSS feeds, chat rooms, wikis, etc. Online communities often form to share knowledge and solve problems in specific industries, disciplines, and business functions. Autoresponder is an e-mail function that automatically sends a reply to a message sender upon receipt of the message. Security devices, such as firewalls and antivirus software, prevent unauthorized users from accessing or harming a computer. Analog refers to a method used to convert data in to electrical signals to transmit information via telephone, radio, and television.

One form of technology that businesses use to personalize their ongoing communication with customers is A. radio messages. B. banner ads. C. infomercials. D. opt-in e-mail.

D Opt-in e-mail. Technology allows a business to track a customer's web page visits and purchasing habits, which helps the business develop a personal profile of the customer. This information helps the business develop product suggestions and customize sales promotions to offer the customer. These offers are often sent to the customers via opt-in e-mail-or promotional messages that customers permit the business to send to them electronically. Banner ads, infomercials, and radio messages are forms of non-personal promotion.

Which of the following help-wanted ads is an example of a discriminatory hiring practice: A. Young woman needed to answer phones B. Workers needed to lift heavy packages C. Part-time workers needed to bag groceries D. High school graduate needed to write reports

A Young woman needed to answer phones. This is an example of a discriminatory hiring practice because the ad specifies a young woman. Employment laws forbid discriminating on the basis of sex unless it is a legitimate qualification for the job. Either men or women are capable of answering phones. Also, businesses may not discriminate on the basis of age by advertising for a "young" person. It is acceptable to specify certain educational qualifications if they are necessary for the job, such as requiring a high school degree for someone who will write reports. It is not discriminatory to advertise for part-time workers or workers to lift heavy packages.

What is the essential component for effective knowledge management in business? A. Outputs B. Computer access C. Short-term goals D. Communication

D Communication. Knowledge management involves leveraging the expertise, insight, and information of internal and external resources to help an organization achieve its goals. To manage knowledge, there must be communication. Without communication, the knowledge remains limited or unknown. Interpersonal interaction and computers are methods of communicating knowledge. Knowledge must be communicated to achieve short-term goals or to produce outputs in business.

Which of the following is the proper sequence for the chain of command: A. Chief Executive Officer, Chief Financial Officer, Accounting Department Manager, and Accounts Payable Specialist B. Chief Financial Officer, Chief Executive Officer, and Accounting Department Manager, and Accounts Payable Specialist C. Accounts Payable Specialist, Accounting Department Manager, Chief Executive Officer, and Chief Financial Officer D. Accounting Department Manager, Accounts Payable Specialist, Chief Executive Officer, and Chief Financial Officer

A Chief Executive Officer, Chief Financial Officer, Accounting Department Manager, and Accounts Payable Specialist. The chain of command defines the level of authority and identifies the specific individual who supervises particular employees. In this situation, the Chief Financial Officer reports to the Chief Executive Officer, who is the highest-ranking employee. The Accounting Department Manager reports directly to the Chief Financial Officer, and the Accounts Payable Specialist reports directly to the Accounting Department Manager.

What type of software program allows a business employee and a customer to communicate in real time from a computer by typing text? A. Database B. Instant messaging C. Procurement D. Call tracking

B Instant messaging. Instant messaging software allows two or more people to communicate in real time by typing text into computers. Many online businesses use instant messaging as an element of the customer service that they provide their customers. For example, a customer can type a question into a text field on the business's web site, and the business's customer-service representative can respond immediately to the question by posting a reply message. Having this form of technology helps businesses manage their customer relationships in an efficient, positive way. A database is computerized storage for information and facts. Procurement software helps businesses obtain and manage inventory. Call-tracking software helps businesses monitor their telephone calls.

Which of the following is an example of an ethical dilemma that human resources managers may encounter: A. Hiring a friend or family member B. Promoting a qualified employee C. Recruiting job candidates online D. Developing a pay scale for employees

A Hiring a friend or family member. Nepotism is the practice in which an influential person hires friends or family members to fill open job positions. This often creates ethical dilemmas or conflicts of interest because the positions may be filled by unqualified individuals. This practice also prevents otherwise qualified candidates from obtaining a job. Promoting a qualified employee, recruiting job candidates online, and developing a pay scale for employees are ethical actions.

What is the foundation of knowledge management? A. An intangible product to market B. A willingness to share expertise C. A place to store unrelated data D. An unresolved conflict or problem

B A willingness to share expertise. Knowledge management involves leveraging the expertise, insight, and information of internal and external resources to help an organization achieve its goals. To leverage knowledge, employees must be willing to share information with their coworkers and managers. When employees are willing to share their ideas and expertise, it often makes it easier to resolve problems, develop new (tangible and intangible) products, and find connections among seemingly unrelated processes that will enhance efficiency.

Which of the following types of customer relationship management software would be most appropriate for a company that is looking for a more efficient way to track leads, prospects, and customers: A. Personalization technology B. Campaign management software C. Sales force automation technology D. Matching engine technology

C Sales force automation technology. Many companies use sales force automation (SFA) technology to support, coordinate, and increase the productivity of their sales professionals. SFA technology, which is a type of customer relationship management software, can help to automate many aspects of the sales process, such as tracking leads, prospects, and customers. Other SFA technology features include contact management, sales forecasting, and sales report generation. Campaign management software is used by marketers to develop, execute, and track the effectiveness of promotional campaigns to targeted groups of potential or established customers. Businesses often use personalization technology to target certain products to certain customers based on the customers' purchase history. Matching engine technology works in a similar manner. Based on a particular customer's needs or preferences, matching engine technology determines the product offering that would best appeal to that customer.

What technology is the most effective way to interview a job applicant who is located 1,500 miles away from the company's corporate office? A. Videoconferencing B. Text messaging C. Web-based e-mail D. Intranet

A Videoconferencing. Holding a video conference allows the interviewer to see the applicant and his/her reactions to the questions. Text messaging and e-mail applications involve typing on a cell phone or a computer. These methods are time consuming and do not allow the interviewer to see or hear the applicant. An intranet is a business's internal computer network.

Tacit knowledge is often based on experiences and personal expertise, while explicit knowledge is A. based on intuition. B. difficult to articulate and measure. C. based on opinions. D. easy to communicate and quantify.

D Easy to communicate and quantify. Explicit knowledge is knowledge or information consisting of words, numbers, codes, processes, and formulas that are easily stored, shared, and quantified (measured). Tacit knowledge is knowledge consisting of personal opinions, experiences, expertise, or understanding that is not easily articulated, stored, or quantified. In some cases, tacit knowledge might evolve from a gut feeling or intuition about something.

Ethical accounting behavior involves using A. due care. B. flexible standards. C. passive concern. D. personal preferences.

A Due care. Because accountants prepare the financial information that businesses use to make financial decisions, they must uphold the ethical standards of their profession. They must be objective, honest, and maintain client confidentiality. Accountants must also use due care when performing their jobs. Due care is a commitment to thoroughly perform work to the best of one's ability. Passive behavior is conduct in which people fail to exercise their own rights and to respect their own needs. Because accounting procedures are based on generally accepted accounting practices, ethical accounting behavior involves rigid standards rather than flexible standards and personal preferences.

The advantage of cross-functional work teams to businesses is that the team members A. share similar viewpoints. B. possess unique talents. C. are highly adaptable. D. have technical skills.

B Possess unique talents. A cross-functional team is a group of employees who work in different company departments and come together to solve a problem or achieve a particular goal. Because each team member works in a different department, each team member possesses unique knowledge and skills. Depending on the team's purpose, members might possess unique technical, legal, mathematical, communication, and creativity skills. Because each team member brings different talents and skills to the group, the group is likely to have a variety of experiences and viewpoints. Though adaptability is a desirable quality, not all team members are likely to be highly adaptable.

When a business communicates customer-centric values and ideals to its employees on a consistent basis, it is developing its A. corporate culture. B. organizational structure. C. technology. D. trademarks.

A Corporate culture. When a business communicates customer-centric values and ideals to its employees on a consistent basis, it is developing its corporate culture. A customer-centric corporate culture is essential for CRM success. Communicating values and ideals to employees does not develop organizational structure, technology, or trademarks.

Unfair employee reward systems and favoritism are human resources activities that are considered A. unethical. B. indifferent. C. unavoidable. D. insignificant.

A Unethical. Ethics are the principles that guide an individual's behavior. These principles are based on societal and personal beliefs about right and wrong. In human-resources management, which is the process of planning, staffing, leading, and organizing the business's employees, ethics usually involve doing what is right by treating all employees fairly. A business that establishes unfair reward systems and engages in favoritism is not behaving in an ethical manner. Human resources management employees should avoid unethical behavior because such actions negatively impact the employees' attitudes (e.g., indifference or disinterest) about the business, which can significantly reduce the business's overall productivity.

When helping a staff member establish his/her work priorities, a manager should first A. delegate the employee's most urgent responsibilities to another employee. B. ask the employee to develop a list of her/his current work activities and responsibilities. C. review the company's organizational chart to determine if some work activities can be delayed. D. require the employee to work extra hours so that all of his/her tasks are completed on time.

B Ask the employee to develop a list of her/his current work activities and responsibilities. Prioritizing involves ranking things in the order of their relative importance. When helping employees prioritize their work, managers consider many factors including the employee's work load, the due dates of various activities, and the time that it takes to complete tasks. Because the employee knows what needs to be done, s/he should develop a list of his/her tasks, so the manager can help the employee determine which activities should take priority. After reviewing the employee's list of work activities, the manager may decide to delegate some tasks to other employees or ask the employee if s/he would be willing to work overtime. An organizational chart is a graphic depiction of a company's chain of command. Managers are likely to review a production schedule or calendar to determine if any activities can be delayed.

When a human resources department uses interactive computer simulations to help employees learn how to do their jobs, it is using technology for ___________ purposes. A. hiring B. evaluation C. training D. compliance

C Training. The human-resources function plans and coordinates employee training programs for the business. Training programs often involve technology-oriented activities, such as interactive computer simulations. Evaluation activities involve tasks related to employee-performance reviews. The hiring process is a staffing activity. Compliance activities ensure that the business follows government regulations.

Tom gave each of his team members a form that asked questions about the team's achievement of goals, processes, and other team members' roles and work habits. What team-assessment tool is Tom using? A. Sampling B. Indirect interview C. On-the-job observation D. Survey

D Survey. Team leaders and managers often use surveys to obtain feedback from team members about the overall performance of the team as well as individual team members. Because surveys are often submitted anonymously, team members may feel more comfortable being open and honest with their responses. The feedback helps team leaders and managers to identify the group's strengths and weaknesses and take corrective action if needed. Interviews involve one-on-one discussions to obtain information. Observation involves watching another person's activities. Sampling is the process of choosing a representative group of consumers to survey.

One of the roles of ethics in finance is to encourage business employees to A. increase company profits. B. make the right decisions. C. sell to customers. D. prepare operating budgets.

B Make the right decisions. Finance is the process of obtaining funds and using them to achieve the goals of the business. As a result, employees involved in finance often have many decisions to make that affect the company and its customers. Making the right decisions is often difficult because employees try to do what is best for the company and for customers. Being ethical and having ethical standards to follow often helps employees make the right decisions. The role of ethics in finance is not to encourage employees to increase company profits, sell to customers, or prepare operating budgets.

One tool that businesses can use to allow employees and customers to share knowledge through their web sites is by posting A. interesting content. B. meta tags. C. bots. D. message boards.

D Message boards. A message board is a page on a web site that allows computer users to ask questions and post responses to the questions. Message boards allow customers and employees to share information to solve problems, which may or may not contain interesting content. Meta tags are Hypertext Markup Language (HTML) codes that display information about web pages. Bots are computer programs that scan the WWW to find computer-program updates.

Which of the following is a benefit of customer relationship management: A. The ability to double the business's profits B. A work force that does not commit errors C. A decrease in customer advocacy D. The opportunity to create targeted marketing campaigns

D The opportunity to create targeted marketing campaigns. The opportunity to create targeted marketing campaigns is one benefit of customer relationship management. The more you know about your customers and their changing needs and wants, the more you know what kinds of marketing communications they will respond to. CRM does not provide an error-free work force. It should result in an increase in customer advocacy. It should help the business increase its profits, but it will not necessarily double them.

The FMT Company wants to implement a software program to capture and communicate tacit knowledge. Which of the following software applications is best suited to fulfill the company's needs: A. Groupware B. Spreadsheet C. Presentation D. Recovery

A Groupware. Groupware or collaborative computer software allows many employees to access and share information, including tacit knowledge. Some applications, such as e-mail and instant messaging, allow employees to instantly transmit messages to coworkers who are in remote locations. The primary use of spreadsheet applications is to show numerical information in a logical format. Businesspeople use presentation software to develop visual aids that support their business presentations. Businesses use recovery applications to back up their computer data. The backed up data can be used if the computer systems break or fail.

An important aspect of upholding ethical accounting standards involves the ability to be A. unconventional. B. resourceful. C. intolerant. D. objective.

D Objective. Accountants prepare the accounting information that businesses use to make financial decisions. Therefore, it is important for accountants to uphold the ethical standards of their profession by providing accurate, objective (unbiased) financial information. A person who uses unique processes or creativity to achieve a goal is being resourceful. Accountants need to follow the GAAP to perform their jobs rather than use unique processes. An intolerant person is prejudiced. An unconventional person is often viewed as unusual or eccentric.

How can a business build its customers' trust and communicate its commitment to ethical practices? A. Post its earnings on its web site B. Develop liberal business policies C. Hire employees who have a positive attitude D. Publish its confidentiality statement

D Publish its confidentiality statement. A business can build its customers' trust by communicating that it will not share its customers' confidential information with third parties, and that it will take measures to secure online transactions. One way to communicate this commitment is by publishing its confidentiality statement in company brochures, in e-mail messages, and on its web site. Developing liberal business policies, hiring employees who have a positive attitude and posting its earnings on its web site may help build trust with customers; however, these actions do not communicate the business's commitment to adhering to its ethics.

What should accountants demonstrate when collecting accounting information and preparing financial documents? A. Professional integrity B. An innovative attitude C. A collaborative mindset D. Empathy and flexibility

A Professional integrity. Demonstrating integrity involves adhering to an established set of personal ethics and sound moral principles. Ethics are the basic principles that govern an individual's behavior. The role of ethics in accounting is to serve as a guide for professional conduct. This is important because accounting involves keeping and interpreting financial records, which managers and stakeholders use to make decisions about the business. Therefore, accounting professionals must demonstrate professional integrity to ensure that the information they collect and present is accurate and objective. Although innovation, collaboration, empathy, and flexibility are admirable traits, preparing accurate and objective financial information does not require accounting professionals to demonstrate these characteristics.

. Balancing the business's objective to make a profit with the interests of all the business's stakeholders is a primary consideration related to the business's A. creative processes. B. financial ethics. C. maintenance activities. D. forecasting methods.

B Financial ethics. An important aspect of financial ethics is making sure the business makes a profit and serves the best interests of its stakeholders (e.g., employees, customers, investors). This would include honest communication, transparent financial reporting, and fair pricing practices. Creative processes, maintenance activities, and forecasting methods are important business considerations; however, these activities are not directly related the business's profitability and the stakeholders' best interests.

When interviewing potential employees, businesses should avoid asking the applicants about their A. previous experiences. B. medical conditions. C. academic achievements. D. salary requirements.

B Medical conditions. There are certain types of questions that businesses should avoid asking job applicants. Businesses may not ask questions about prescription drug usage, specific diseases, treatment for mental health problems, medical histories, etc. Businesses are prohibited from asking these types of questions in order to protect job applicants from discrimination. It is illegal to discriminate against applicants who are qualified to do the job even if they have certain medical conditions or disabilities. Businesses routinely ask applicants about their previous experiences, academic achievements, and salary requirements when interviewing them for employment.

Which of the following situations is an unethical action associated with customer relationship management: A. Implementing a frequent-buyers program for the business's customers B. Selling customer lists without the customers' consent to third parties C. Collecting customer information with authorization to develop a customer profile D. Allowing customers the ability to opt-out of the e-mail updates that the business provides

B Selling customer lists without the customers' consent to third parties. It is unethical for a business to sell its customers' information to third parties without the customers' permission because it is a breach of privacy. When privacy is breached, trust is broken, and customers may defect to the business's competitors. Implementing a frequent-buyers program, collecting information with authorization, and allowing customers to opt-out of e-mail updates are ethical actions.

Which of the following is an example of a business managing its information in an ethical manner: A. The TKN Corporation sells its customer mailing list to third parties without consent. B. The XPB Company takes precautions to maintain the privacy of its clients' information. C. OWC Manufacturing distributes an employee's performance review to his/her coworkers. D. GVZ and Associates deliberately prepares its annual report to confuse readers.

B The XPB Company takes precautions to maintain the privacy of its clients' information. Businesses collect and maintain information about their employees, clients, products, and activities, and some of the information may be private or confidential. Businesses have an ethical obligation to protect certain information so it does not become public and cause harm or embarrassment to clients or employees. Internet firewalls and computer passwords are ways in which businesses protect electronic information. Selling a customer mailing list without the customers' consent, distributing an employee's performance review to coworkers, and deliberately preparing an annual report in a confusing manner are unethical actions.

An apparel company's target market is 18- to 34-year-old females. What form of technology can the company use to communicate on an ongoing basis with its customers at their convenience? A. Social media B. Telemarketing C. Infomercial D. Instructional

A Social media. Businesses have the ability to set up accounts with social networking web sites such as Facebook, Twitter, and Myspace, which help them stay in contact with customers (fans) on an ongoing basis. The social networking sites can provide insight about customers' lifestyles and preferences, and then businesses can use the information to customize customer appeals and promotions. Telemarketing practices and television infomercials are not communication vehicles that businesses use for ongoing twoway communication at the customers' convenience. Instructional software applications are used to support students' learning and academic development.

Which of the following is a primary factor that managers should consider when helping an employee prioritize his/her workload: A. The level of importance of each activity B. The degree to which the employee enjoys performing a task C. The time that it takes the manager to evaluate an activity D. The employee's motivation to complete urgent tasks

A The level of importance of each activity. Prioritizing involves ranking activities in relation to their importance. When helping employees prioritize their workloads, managers consider which activities are most important in relation to their deadlines as well as the time it takes the employee to complete various tasks. The employee's motivation, the degree to which the employee enjoys performing various tasks, and the time it takes a manager to evaluate an activity are not primary considerations when prioritizing workloads

A financial planner advises a client to make a high-risk investment. This is an unethical action if the A. financial planner has reviewed the investment terms and conditions. B. client asks the financial planner to make the investment. C. financial planner's primary motive is to earn a large commission. D. client's objective is to avoid tax obligations.

C Financial planner's primary motive is to earn a large commission. Financial planners have the responsibility to act in their clients' best interest. If a financial planner advises a low-risk taking client to invest in a high-risk investment so the financial planner can earn a high commission, the financial planner is not acting in the client's best interest and is behaving unethically. If the client wants to make a high-risk investment after the planner provides appropriate information and counseling (reviewing terms and conditions), the financial planner is acting ethically. Many types of investments delay taxation and are ethical and legal.

One action that an ethical business can take to help build the long-term trust and loyalty of its customers is to A. sell its customer list to third parties without permission. B. maintain detailed information about customers' transactions. C. implement a comprehensive customer privacy policy. D. send daily opt-in e-mail messages to customers.

C Implement a comprehensive customer privacy policy. To build long-term relationships with its customers, a business must take steps to earn its customers' trust. Developing, implementing, communicating, and adhering to a customer privacy policy is one way to build the customers' trust. Privacy policies might include limiting the access that employees have to customer information and not selling customer lists to third parties. By respecting their customers' privacy, businesses can earn and maintain their customers' trust. Laws require businesses to maintain certain information about their customers' transactions for specified timeframes. Sending opt-in e-mail messages to customers is helpful in maintaining relationships with customers; however, sending them too frequently, such as every day, may be annoying to some customers.

Katrina is using a special software program to develop a business chart that shows the employees' expertise and skills and how they access different types of information throughout the organization. What type of software is Katrina using to document the information? A. Tactical production B. Intranet C. Knowledge mapping D. Accounting

C Knowledge mapping. Knowledge mapping software provides the ability to capture a business's information sources and information flow in a graphic format. Knowledge maps help businesses determine if there are underused sources of knowledge, as well as areas in which there is a breakdown or gap in knowledge sharing. An Intranet is a business's internal computer network. Knowledge management software can capture information stored on a company's Intranet, which is one of many sources of a company's knowledge. Production and accounting software are different types of software used in specific functions of business. Businesses do not use these software programs to capture and track an entire organization's tacit and explicit knowledge.

At the Kimball Manufacturing Company, Ken is the production-line supervisor, Sarah is the lead line worker, Margaret is the production-section supervisor, Maggie is the vice president of production, and William is the plant manager. Following a vertical chain of command, who does Ken report to? A. Maggie B. Sarah C. Margaret D. William

C Margaret. Companies develop a chain of command for employees to follow. The chain of command defines the level of authority and the specific individual who supervises particular employees. Having a chain of command helps provide structure for business. Because Ken is a production-line supervisor, he would report to Margaret, who is the section supervisor. Margaret reports to William, who manages the entire plant. William reports to Maggie, who is the vice-president of production. Because Sarah is the lead line worker, she reports to Ken who is the production-line supervisor. Line workers might report to Sarah.

What is a Web-based tool that a business can use that provides its employees with the ability to share tacit knowledge from remote locations? A. Spreadsheet B. Codification C. Wiki D. Intranet

C Wiki. Tacit knowledge is personal opinions, experiences, expertise, or understanding that is not easily articulated, stored, or quantified. Tacit knowledge is an employee's personal "know-how" that affects the ways in which s/he does his/her job. Businesses often struggle to capture their employees' tacit knowledge, which can be helpful in achieving or exceeding the businesses' goals. Some businesses are using Wikis to facilitate the sharing of information among employees in remote locations. A Wiki application is a Webbased networking tool that allows individuals or groups to store and share their expertise, resources, and ideas. Codification is the process of assigning a means of measurement to something. Businesses use spreadsheets to calculate and summarize numerical data. An Intranet is a business's internal computer network.

The Rider Automotive Company's senior engineer, assistant parts buyer, product testing coordinator, plant line worker, and marketing manager are working together on an issue related to faulty transmission lines on its best-selling four-door sedan. In this situation, the purpose of the work team is to A. make a financial decision. B. develop a new product. C. implement a new process. D. solve a problem.

D Solve a problem. Cross-functional teams often consist of employees who work in different company departments and who possess unique knowledge or skills. The purpose of forming cross functional teams varies. In the situation described, the automotive company is having problems with one of its vehicles. Members from various areas of the company are working together to solve the problem. This may involve redesigning the vehicle by adding new parts or improving process on the production line. Financial factors are often considered when solving a problem.