MAN Exam 1 Practice Questions

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

a. have a distinctive competence.

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

a. manufacturing

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

a. mergers.

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

a. quota

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

a. quota

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

a. related diversification

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

a. risk

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

a. small business.

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

a. strategy formulation

Which of the following is the correct term used to describe a decision made in order to meet the minimum standard of sufficiency for a problem? a. Intuition b. Satisficing c. Forming a coalition d. Escalation of commitment

b. Satisficing

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

b. Scope

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

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

What is a Distinctive Competence? a. Something the company does exceptionally poorly b. Something the company does exceptionally well c. The process by which the organization makes money d. The organization's mission statement

b. Something the company does exceptionally well

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

d. code of ethics

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

a. A car rental agency

Which of the following is NOT an assumption of the classical model of decision making? a. Decision makers include others at every possible opportunity during the decision-making process. b. Decision makers evaluate all aspects of the decision logically and rationally. c. Decision makers have complete information about the situation and alternatives. d. Decision makers can eliminate uncertainty to achieve a state of certainty.

a. Decision makers include others at every possible opportunity during the decision-making process.

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

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

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

a. Delphi group

What can be concluded from the Hawthorne's studies? a. Individual and social processes play a major role in shaping worker attitudes and behavior. b. The assembly line is an effective tool in industrial settings. c. Workers are motivated primarily by wages and benefits. d. Better lighting in the workplace increases productivity.

a. Individual and social processes play a major role in shaping worker attitudes and behavior.

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

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

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

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

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

a. It is likely to have a weak culture.

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

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

The following are reasons that managerial decisions are made in a state of uncertainty, EXCEPT: a. Managers tend to be unintelligent and incapable of properly weighing decision-making conditions. b. The contemporary business world is complex and turbulent. c. Humans are complex and unpredictable by nature. d. It is often impossible to possess all the information necessary for a state of certainty.

a. Managers tend to be unintelligent and incapable of properly weighing decision-making conditions.

Which of the following is FALSE regarding Organizational Weaknesses? a. Most companies are able to operate freely with very few weaknesses. b. Investments must be made to obtain the strengths needed to fix the weakness. c. Organizational members are often reluctant to admit where they are lacking, making it hard to identify weaknesses. d. The company mission may need to be modified in order to work around the current weaknesses.

a. Most companies are able to operate freely with very few weaknesses.

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

a. People

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

a. She should select the best alternative.

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

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

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

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

What does SWOT stand for? a. Strengths, weaknesses, opportunities, and threats b. Strengths, weaknesses, openness to growth, and teaching moments c. Systems, workers, opportunities, and technology d. Skills, worldview, operations, and technology

a. Strengths, weaknesses, opportunities, and threats

Which of the following is an example of synergy between companies? a. The NBA advertising for their official sponsors and individual athletes within the league advertising their own sponsorships such as Nike in order to increase marketing potential for all b. Marathon Oil separating into separate upstream and downstream organizations to gain competitive advantage c. ExxonMobil acquiring a new refinery in order to boost production capabilities d. ESPN and Fox Sports airing similar programming to compete for viewers

a. The NBA advertising for their official sponsors and individual athletes within the league advertising their own sponsorships such as Nike in order to increase marketing potential for all

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

a. They are able to charge more than competitors.

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

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

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

a. To hire a new sous chef

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

a. Unemployment

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

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

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

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

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

a. be cautious when making decisions.

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

a. entrepreneur

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

a. growth

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

a. tactical

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

a. the classical decision model

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

b. Resource deployment

It is important for businesses to develop strategy at two distinct levels. What are these two levels? a. Finance level and marketing level b. Business level and corporate level c. Human capital level and financial level d. Ground level and corporate level

b. Business level and corporate level

The General Electric (GE) business screen is an analytical method that would be most effectively utilized by: a. The board of trustees b. Corporate-level leadership c. Assembly-line workers d. Mid-level managers

b. Corporate-level leadership

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

b. Effective control systems

Which of the following is an advantage of internationalizing direct investments? a. Complexity b. Enhanced control c. Uncertainty d. Economic and political risk

b. Enhanced control

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

b. Evaluate the alternatives.

Which of the following is NOT an example of a control on international trade? a. Tariffs b. Executive orders c. Export agreements d. Quotas

b. Executive orders

The following are key areas of a well-conceived strategy EXCEPT: a. Resource deployment b. Human resources c. Distinctive competence d. Scope

b. Human resources

What are the four stages of the Product Life Cycle? a. Development, marketing, sales, and profit b. Introduction, growth, maturity, and decline c. Growth, stagnation, decline, and reflection d. Introduction, assimilation, ascension, and extinction

b. Introduction, growth, maturity, and decline

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

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

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

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

Which of the following companies is the best example of a single-product strategy? a. Burger King b. Marlboro c. Hewlett-Packard (HP) d. Disney

b. Marlboro

Which of the following is NOT a member of McDonald's task environment? a. Coca-Cola b. Patagonia c. Burger King d. The Food and Drug Administration

b. Patagonia

hich of the following is NOT a key factor in the success of small business? a. Luck b. Paying business loans back as soon as possible c. Managerial competence d. Careful analysis of market conditions

b. Paying business loans back as soon as possible

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

b. People want to have security.

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

b. Philanthropic giving

Most managerial decisions fall into one of which two categories? a. Expansive or specific b. Programmed or nonprogrammed c. Good or bad d. Intentional or spontaneous

b. Programmed or nonprogrammed

What is the difference between strategic goals and tactical goals? a. Strategic goals have to do with company culture, while tactical goals are focused on the bottom line. b. Strategic goals are set by and for top management, while tactical goals are set by and for middle managers. c. There is no difference. d. Strategic and tactical goals differ in terms of scope only.

b. Strategic goals are set by and for top management, while tactical goals are set by and for middle managers.

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

b. Suppliers

How is tactical planning related to strategic planning? a. Tactical plans are implemented prior to strategic plans. b. Tactical plans are used to execute specific parts of a larger strategic plan. c. Tactical plans are implemented after strategic plans. d. Tactical plans are more important than strategic plans.

b. Tactical plans are used to execute specific parts of a larger strategic plan.

What is bounded rationality? a. The inability of certain managers to make logical decisions in complex situations b. The concept that decision makers are limited by their values, habits, and biases c. The concept that all managers must sacrifice when making decisions d. The principle that anyone can attain all the necessary information for a decision if they just try hard enough

b. The concept that decision makers are limited by their values, habits, and biases

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

b. They carefully analyze market conditions.

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

b. They concern themselves with short-term issues.

What is the purpose of the BCG Matrix? a. To increase a company's ability to practice unrelated diversification b. To assist in strategic decisions regarding which business units to invest more heavily in c. To calculate which percentage of an organization's workforce needs to be laid off d. To calculate how much money is being lost annually by a given business unit

b. To assist in strategic decisions regarding which business units to invest more heavily in

What is the primary mission of the World Trade Organization (WTO)? a. To prevent trade wars b. To promote trade flows, reduce trade barriers, and resolve trade disputes c. To funnel the majority of the world's wealth toward members of the United Nations. d. To mandate global tariffs and quotas

b. To promote trade flows, reduce trade barriers, and resolve trade disputes

What is the purpose of a board of directors? a. To fire problematic individuals within the company b. To provide experienced, high-level management oversight c. To protect the interests of top management, not the stakeholders d. To make decisions regarding the day-to-day operations of the company

b. To provide experienced, high-level management oversight

What is The Art of Management? a. Prioritizing one's obligations in order to get more important responsibilities taken care of first b. Using intuition, experience, and insight to solve management problems c. A collection of management-focused literature that is a must read for any aspiring manager d. Using technical, diagnostic, and decision-making skills to solve management problems

b. Using intuition, experience, and insight to solve management problems

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

b. direct investment

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

b. dogs

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

b. globalization.

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

b. groupthink

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

b. opportunities

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

b. opportunity

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

b. regulators

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

b. rule or regulation

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

b. sells products manufactured by other firms.

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

b. weaknesses

Which of the following would be classified as Whistle-Blowing? a. A marketing executive supporting a new ad that contains fake information b. A bank teller who steals money by fraudulently manipulating bank records c. A financial investor reporting illegal insider trading within his or her company to authorities d. A secretary filing a lawsuit for sexual assault

c. A financial investor reporting illegal insider trading within his or her company to authorities

Which of the following best describes Organizational Culture? a. The organization's procedural history, as archived in its employment manuals b. The amount of vacation and paid time off employees receive in an organization c. A set of values and beliefs that helps members understand what an organization stands for d. The way in which different departments in an organization work together

c. A set of values and beliefs that helps members understand what an organization stands for

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

c. Conflict of interest

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

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

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

c. Corporate success

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

c. Diagnostic

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

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

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

c. Evaluating the results

A company setting themselves apart from the competition through the quality of its product is referred to as: a. Organizational opportunity b. Differentiation strategy c. Product life cycle d. Organizational threat

c. Exploit opportunities and strengths

neutralize threats and weaknesses. d. Minimize strengths, maximize opportunities and threats, and eliminate weaknesses.

c. Exploit opportunities and strengths

Imagine that a plant manager has identified a problem with absenteeism in his or her factory. Which step of the rational decision-making process comes next? a. Evaluating alternatives b. Selecting an alternative c. Identifying alternatives d. Implementing a chosen alternative

c. Identifying alternatives

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

c. Intuition

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

c. It is formed to achieve a common goal.

Which of the following is NOT a common responsibility of first-line managers? a. Handle routine administrative duties. b. Oversee day-to-day operations of their respective department/store. c. Make decisions about acquiring other companies. d. Hire operating employees.

c. Make decisions about acquiring other companies.

Which of the following is true regarding operation plans? a. Operational plans determine corporate-level strategies. b. Operational plans are broad in scope. c. Operational plans tend to involve lower-level managers. d. Operational plans have extended time frames.

c. Operational plans tend to involve lower-level managers.

The following are examples of Theory X assumptions EXCEPT: a. People do not like to work and try to avoid it. b. People need to be coerced into being productive. c. People are bright and capable but underutilized in most organizations. d. People prefer to be directed and therefore avoid responsibility.

c. People are bright and capable but underutilized in most organizations.

What are the four elements of an Organization's Mission? a. Policies, procedures, systems, and culture b. People, places, things, and ideas c. Purpose, premises, values, and directions d. Purpose, procedures, vision, and execution

c. Purpose, premises, values, and directions

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

c. Services

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

c. Single-product strategy

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

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

Which of the following is LEAST important when it comes to executing tactical plans? a. The manager needs to monitor progress so that they can measure results. b. The manager needs to make sure that key decision makers have the appropriate information and resources. c. The manager needs to make sure that everyone in the organization is involved in the plan. d. The manager needs to evaluate every course of action as it pertains to the end goal.

c. The manager needs to make sure that everyone in the organization is involved in the plan.

Which of the following is NOT a common determinant of Organizational Culture? a. Organizational heroes and stories b. The organization's founder c. The organization's pay structure d. Corporate success

c. The organization's pay structure

The following aspects are true of the contemporary management landscape EXCEPT: a. Increased emphasis on quality continually provides management challenges. b. Managing diversity in the workplace is more important than ever. c. The workplace has been relatively stagnant recently, void of many new challenges or opportunities. d. There is a significant shift toward a service economy away from a manufacturing economy.

c. The workplace has been relatively stagnant recently, void of many new challenges or opportunities.

Which of the following is FALSE regarding managers with high- risk propensity? a. They are more likely to suffer devastating failure. b. They may fit well or poorly with an organization, depending on that company's culture. c. They are always preferred to risk-averse managers. d. They are more likely to achieve huge success.

c. They are always preferred to risk-averse managers.

Which is true regarding effective managers' decision making skills? a. They always defer to whichever coworker or employee they believe to be the expert on the specific problem. b. They ignore their mistakes and move on without wasting time on corrective measures. c. They weigh problems with opportunities, and choose an appropriate course of action. d. They always make the right decision.

c. They weigh problems with opportunities, and choose an appropriate course of action.

Why is the final step of the rational decision-making process (following up and evaluating results) so important? a. To attain closure for the particular problem that needed remedied b. To boost confidence for the next big decision-making opportunity that comes along c. To gather information and data necessary to practice evidence-based management, a method that uses facts to make the best possible decisions in an organization d. To show your supervisor that you were right, after all

c. To gather information and data necessary to practice evidence-based management, a method that uses facts to make the best possible decisions in an organization

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

c. contingency

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

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

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

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

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

c. stars

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

c. strategic

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

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

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

c. the most general form of a standing plan.

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

c. there is potential for conflicts of interest.

What is a tactical plan? a. An onboarding plan used to transition employees to new roles b. A course of action designed to accomplish a strategic goal c. An intentional modification of company culture d. A specific process created to achieve a tactical goal in a short time frame

d. A specific process created to achieve a tactical goal in a short time frame

Managers must _________________. a. answer to top management when it comes to shaping culture and be wary of developing new culture within their team b. hold true to the company's traditional, tried, and true values c. walk a fine line between maintaining effective culture and changing dysfunctional culture d. constantly look to change culture in order to fit the current demands of the team

c. walk a fine line between maintaining effective culture and changing dysfunctional culture

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

d. 50 percent

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

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

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

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

Which of the following is the most accurate description of decision -making under risk? a. All the alternatives for a particular decision are dangerous and could be harmful to an organization. b. The alternative that seems most logical on its face is selected. c. A choice is selected at random from a list of alternatives to remove responsibility from the decision maker. d. Each alternative is assigned a probability and predicted monetary payoff in order to make the best choice.

d. Each alternative is assigned a probability and predicted monetary payoff in order to make the best choice.

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

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

Why do managers benefit from a robust understanding of history? a. The Roman Empire provided the foundation for all modern management techniques. b. Copying exactly what successful companies have done in the past is an effective business strategy. c. Companies will often administer history exams to employees to reinforce historical competence. d. Even some of the oldest examples of business literature can be relevant to today's management landscape.

d. Even some of the oldest examples of business literature can be relevant to today's management landscape.

Which of the following is the best example of Focus Strategy? a. Anheuser-Busch investing heavily in keeping their product consistent across all breweries b. Timex using high-volume production to keep retail prices for their watches low c. Walmart streamlining their supply-chain processes in order to cut costs d. Fitbit purposely targeting active customers with their advertising and product placement

d. Fitbit purposely targeting active customers with their advertising and product placement

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

d. Groupthink

Which of the following is NOT an advantage of group decision making? a. More alternatives will likely be generated. b. More knowledge and expertise is available. c. Widespread acceptance of the final decision is more likely. d. Groupthink may occur.

d. Groupthink may occur.

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

d. He is a Theory X manager.

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

d. Inconsistent activities

Which of the following best describes possible measures of an organization's "economic environment"? a. Number of employees and employee satisfaction b. Company costs and revenues c. Metropolitan and nonmetropolitan d. Inflation and unemployment

d. Inflation and unemployment

What are the four basic elements of the systems perspective? a. Operations, finance, HR, and marketing b. Material, human, financial, and info resources c. Products, services, profits, and losses d. Inputs, transformation processes, outputs, and feedback

d. Inputs, transformation processes, outputs, and feedback

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

d. Insufficient capital can contribute to new business failure.

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

d. It limits profits and control over a business

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

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

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

d. Lana uses intuition.

Which of the following is the best example of a standing plan? a. Apple releasing a brand-new product b. A McDonald's franchise choosing to lay off 10 percent of their workforce c. Chick-fil-A switching to a new recipe for their chicken nuggets d. Microsoft implementing a new standard operating procedure for R&D project approval

d. Microsoft implementing a new standard operating procedure for R&D project approval

Which of the following statements is true regarding trends in small business? a. The number of individuals who leave large corporations to start their own business is declining. b. E-commerce plays only a small part in the success of many small businesses. c. The failure rate among small businesses is increasing. d. Opportunities for women and minorities in small business continue to increase substantially.

d. Opportunities for women and minorities in small business continue to increase substantially.

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

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

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

d. Personal resources

Which of the following is NOT a common reason for the failure of small business? a. Managerial incompetence b. Weak control systems c. Insufficient capital d. Presence of control systems

d. Presence of control systems

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

d. Program

What are the two categories of single-use plans? a. Rules and regulations b. Policies and procedures c. Processes and purchases d. Programs and projects

d. Programs and projects

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

d. Small businesses are increasingly able to expand internationally.

What are "managerial ethics"? a. A required section in every business employee manual b. A code of conduct designated only for managers in business c. Looking the other way during questionable decisions in order to benefit the businesses bottom line d. Standards of behavior in organizations that are especially relevant for managers

d. Standards of behavior in organizations that are especially relevant for managers

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

d. Strategic

Which of the following is NOT a basic guideline of all tactical plans? a. Tactical plans must specify resources and time frames. b. Tactical planning requires the use of human resources. c. Tactical plans must address tactical goals drawn from an overarching strategic plan. d. Tactical plans must be carried out by middle management.

d. Tactical plans must be carried out by middle management.

Which of the following is NOT an advantage of franchising? a. Franchisees experience a great deal of independence in running the business. b. Franchisers have the ability to grow rapidly. c. The franchisee does not have to be responsible for building a business from the ground up. d. The franchiser may provide business strategy counseling.

d. The franchiser may provide business strategy counseling.

The following are arguments in support of Organizational Social Responsibility EXCEPT: a. Corporations are citizens in our society. b. Business often has the resources necessary to solve problems. c. Business creates problems and should therefore help solve them. d. There is potential for conflicts of interest.

d. There is potential for conflicts of interest.

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

d. They address questions of competitive advantage and synergy.

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

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

What are Delphi groups utilized for? a. To instill a new executive who can properly make the decision at hand b. To discuss decision alternatives in person c. To come up with generic industry solutions to sell to consulting firms d. To arrive at a consensus of expert opinion

d. To arrive at a consensus of expert opinion

The following are possible disadvantages of working in a team, EXCEPT: a. The decision-making process may take longer. b. One person may dominate the team. c. Indecisiveness between team members may lead to unsatisfactory compromises. d. Worse decisions are generally made in groups.

d. Worse decisions are generally made in groups.

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

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

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

d. conceptual

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

d. entropy

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

d. growth

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

d. helps members understand what the company stands for

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

d. operational

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

d. regulatory agency

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

d. rely on personal resources.

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

d. soldiering