MGT Test 1

Today's managers must learn to cope with a greater level of change than those in the past.

True

A global corporation ______ a. Centralizes management in a single home country b. decentralizes management so that each local country's operation is managed locally c. decentralizes management so there is no single home location d. has two main management locations located on different sides of the globe.

a. Centralizes management in a single home country

Which of the following might be an example of increased efficiency in manufacturing? a. cutting the amount of labor required to make the product b. cutting the price of the product c. increasing sales of the product d. increasing advertising for the product

a. Cutting the amount of labor required to make a product.

The classical view of social responsibility holds that spending time, money, labor, or energy to improve society's welfare would______. a. Deprive stockholders of resources that could be used to generate profits. b. not have any positive or negative impact on stockholders c. help maximize profits for stockholders d. show stockholders that the company knows best

a. Deprive stockholders of resources that could be used to generate profits.

Under which category would you classify skill in motivating subordinates? a. Interpersonal skills b. conceptual skills c. technical skills d. political skills

a. Interpersonal skills

How are the "Post-Millennials" likely to be different from previous generations? a. They require products that are completely customized to the individual. b. they require products that are completely generic and not at all customized to the individual c. they require products that are serious and meaningful rather than frivolous and fun d. they require products that are much higher quality than those required by individuals in previous generations

a. They require products that are completely customized to the individual.

Which demographic do managers pay closest attention to with respect to large-scale trends in the business world? a. age b. sex c. employment status d. geography location

a. age

A foreign company wants to be able to copy and manufactures TJ Soft programs and sell them in its stores. What would be an appropriate approach for them to use? a. licensing b. franchising c. renting d. appropriating

a. licensing

All levels of management between the supervisory level and the top level of the organization are termed______ a. middle managers b. first-line managers c. supervisors d. team leaders

a. middle managers

The greater the environmental uncertainty, the more an organization needs to become______ a. organic b. mechanistic c. stable d. high-tech

a. organic

Which of the following is not involved with the demographic component of an organization's external environment? a. values b. gender c. race d. income

a. values

Grafton furniture was challenged with recovering what % of Gross margin to meet industry standards? a. 10% b. 20% c.30% d. 50%

b. 20%

A Coca-Cola bottling plant in Bolivia is wholly owned by a local business person. What kind of venture is this plant likely to be? a. a franchise b. A licensed plant c. foreign subsidiary d. a joint venture

b. A licensed plant

A candy manufacturer would increase both efficiency and effectiveness by making____ a. better candy at the same cost b. Better candy at a lower cost c. the same candy at a lower cost d. the same candy at the same cost

b. Better candy at a lower cost

________ is a cultural dimension measured by Hofstede in which people identify strongly with a group within a society. a. power distance b. Collectivism c. individualism d. uncertainty avoidance

b. Collectivism

Which of the following is LEAST likely to be considered a stakeholder for a newspaper company, The Daily Recorder? a. the paper boy who delivers the paper to customers b. Critics who claim that all newspapers are biased and dishonest. c. customers who buy the paper at newsstands d. subscribers

b. Critics who claim that all newspapers are biased and dishonest.

What did the effect of a volcanic eruption in Iceland have on the production of Nissans in a plant in Japan illustrate? a. how much organizations depend on their banks b. How much organizations depend on their external environment c. how much organizations depend on corporate culture d. how much organizations depend on a strong brand image

b. How much organizations depend on their external environment

A global village can be best characterized as a business climate in which there are_____ a. rigid international boundaries b. No international boundaries c. rigid rules and standards d. no rules and standards

b. No international boundaries

The socioeconomic view of social responsibility is that a for-profit organization's responsibility is ______. a. to maximize stockholder wealth b. To maximize both profits and the general welfare. c. to do what only the law requires d. to maximize opportunities for citizens in developing countries

b. To maximize both profits and the general welfare.

What does Wal-Mart's business policy say about the company's belief in sustainability? a. Wal-Mart must believe that global climate change is a hoax. b. Wal-Mart must believe that environmental issues are important. c. Wal-Mart must believe that global climate change is a left-wing conspiracy. d. Wal-Mart must believe that global climate change is a right-wing conspiracy.

b. Wal-Mart must believe that environmental issues are important.

The culture of an organization is analogous to the ______ of an individual. a. skills b. personality c. motivation d. ability

b. personality

Which of the following types of managers is responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization? a. team leader b. top manager c. department head d. project leader

b. top manager

An organization is________ a. the physical location where people work b. any collection of people who perform similar tasks c. a deliberate arrangement of people to accomplish some specific purpose. d. a group of individuals focused on profit-making for their shareholders.

c. A deliberate arrangement of people to accomplish some specific purpose.

Parochialism is_______ a. acceptance of diverse points of view b. a desire to leave one's own culture for a foreign culture c. A tendency to view the world through a single perspective (stereotyping) d. recognition of diverse religious beliefs

c. A tendency to view the world through a single perspective (stereotyping)

Societies with a high assertiveness rating on GLOBE would tend to be _____ a. passive b. excessively polite c. Competitive d. uncertain

c. Competitive

Which of the following is NOT a common way in which corporate cultures are transmitted to employees? a. stories b. informal rituals c. Formal culture meetings d. symbols

c. Formal culture meetings

In a society with high ______ on GLOBE, you would expect members of a corporation to have a strong identification with the corporation. a. gender differentiation b. future orientation c. In-group collectivism d. humane orientation

c. In-group collectivism

The controlling management function is largely a matter of ______ a. resolving conflicts b. determining what needs to be done c. Monitoring to see that tasks are accomplished d. enforcing rules for employees

c. Monitoring to see that tasks are accomplished

Which of the following is a key difference between managerial and nonmanagerial employees? a. managerial employees receive higher pay compensation b. non managerial employees have less formal education. c. non managerial employees do not oversee the work of others d. managerial employees work longer hours.

c. Nonmanagerial employees do not oversee the work of others.

Franchising is used widely by_______ a. universities b. accounting firms c. Restaurant chains d. electric power companies

c. Restaurant chains

A fraternity is an example of an organization because it is comprised of people who_______ a. share the same values, traditions, and customs b. share the same goals and values c. share goals and function within a common structure d. function under the same set of rules and regulations

c. Share goals and function with a common structure

The use of peer-to-peer services such as Uber is an example of this type of economy. a. capitalistic b. socialistic c. Sharing d. unplanned

c. Sharing

When a U.S. ship yard purchases raw materials from locations around the world, for example steel from China, this is called_____ a. licensing b. a joint venture c. global sourcing d. a global alliance

c. global sourcing

Effectiveness is synonymous with______ a. cost minimization b. smart management c. goal attainment d. efficiency

c. goal attainment

What percentage of 3rd generation business fail? a. 30% b. 50% c. 70% d. 90%

d. 90%

Of the approaches to pursuing international markets, developing a ______ involves the greatest commitment and risk. a. franchise b. joint venture c. strategic alliance d. Foreign subsidiary

d. Foreign subsidiary

Which generation is predicted to be the most diverse and multicultural of any generation in the United States? a. Baby boomers b. generation X c. generation Y d. Generation Z

d. Generation Z

Today, the basic management functions are considered to be_____ a. planning, coordinating, leading, and monitoring d. Planning, organizing, leading, and motivating c. commanding, organizing, leading, and decision making d. Planning, organizing, leading, and controlling

d. Planning, organizing, leading, and controlling

Global trade after the recent economic downturn has ______ a. increased dramatically b. decreased dramatically c. increased, then decreased significantly d. remained slow

d. remained slow

A major cause of the shutdown of a BMW assembly plant in South Carolina was a bank crisis in Iceland.

false

A manager does not work directly on tasks for the organization.

false

As long as it has broken no laws and done nothing unethical, a business has fulfilled its responsibility to society.

false

Due to the large size of the economy, organizations in the United States are insulated from global economic failures.

false

Effectiveness refers to the relationship between inputs and outputs.

false

Having a mix of ethnicities/races in your organization assures diversity

false

My (the professor's) two kids would bring an Asian cultural perspective to an organization.

false

Selective perception means assigning a trait to a particular group of people.

false

The Grafton furniture company specialized in mass produced furniture for the middle market.

false

The sociocultural component of the external environment of an organization includes trends and traditions, but not basic attitudes and values.

false

A common myth is that managers are less ethical today than in the past.

true

According to demographic predictions, the world's population is becoming older.

true

According to the text, economic and demographic changes are two important components of the environment that constrain the actions of managers.

true

Environmental complexity refers to the number of components that an organization must deal with.

true

In order to be considered a manager, an individual must direct to oversee the work of others.

true

Part of what defines an organization is its purpose

true