Principles of Management Module 11 Questions

________ is usually used by companies with constantly changing technology and by companies who prefer team work. External control Market control Internal control Clan control

Clan control

The second item on a diagram of the control process, after the objectives and the standard, would be ________. Compare actual performance Revise standard Is standard being attained? Measure actual performance

Compare actual performance

You're a manager who's discovered that one of your employees is not attaining the standard of performance you expect. According to the control process, you should ________________. Compare performance against a standard Consult with your manager Do nothing Correct performance

Correct performance

Which of the following is a performance measurement tool that looks at four areas that contribute to a company's performance? balanced scorecard economic valued added market value added information control

balanced scorecard

Market control is used by companies that face a lot of ________ in the market and whose products are ________. conflict, different competition, distinct aggression, distinct opposition, diverse

competition, distinct

A control that occurs while an activity is in progress is the ________. concurrent control information control feedforward control feedback control

concurrent control

________ provide(s) managers with quantitative standards against which to measure and compare resource allocation. An organization chart TQM Reengineering A budget

A budget

________ is the search for the best practices among competitors or non-competitors that lead to their superior performance. Correlating Benchmarking Factoring Situating

Benchmarking

________ is an approach that emphasizes organizational authority. Market control Clan control Bureaucratic control External control

Bureaucratic control

________ is a tool for measuring corporate and divisional performance. Economic value added Real value added Principle value added Market value added

Economic value added

On a diagram of the control process, the first item shown after the objectives and the standard would be ________. Compare actual performance Is standard being attained Revise standard Measure actual performance

Measure actual performance

The ________ ratios measure how efficiently the firm is using its assets. activity liquidity conformance leverage

activity

A control that takes place after an activity has occurred is the ________. concurrent control feedforward control information control feedback control

feedback control

When should the manager's course of action be to revise the standard? *if the standard is acceptable *if the standard is not acceptable *if the variance is acceptable *if the cause of the variation has been identified

if the standard is acceptable

Which of the following ratios examines the organization's use of debt to finance its assets and its ability to meet the interest payments on the debt? liquidity ratios leverage ratios activity ratios conformance ratios

leverage ratios

Jan was in a big hurry. She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president. Donna, the new vice president, had asked Jan to work up several calculations to help her gain an understanding of the company's financial shape. Jan was working hard and had a big order to fill, one that could make or break her reputation with Donna. She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to help her answer the questions. Donna was also interested in understanding the company's ability to meet short-term obligations, which meant that Jan had to calculate a(n) ________ ratio. activity leverage liquidity profitability

liquidity

The first step in the control process is ________. taking managerial action setting standards comparing performance against expectations measuring performance

measuring performance

Controlling is the process of ________, ________, and ________ work performance. correcting, balancing, changing monitoring, comparing, correcting measuring, monitoring, changing monitoring, balancing, contrasting

monitoring, comparing, correcting

The balanced scorecard is an approach that looks at four areas—financial, customer, internal processes, and ________ that contribute to a company's performance. shareholder value debt people/innovation/growth assets managerial decision making

people/innovation/growth assets

Jan was in a big hurry. She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president. Donna, the new vice president, had asked Jan to work up several calculations to help her gain an understanding of the company's financial shape. Jan was working hard and had a big order to fill, one that could make or break her reputation with Donna. She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to help her answer the questions. Finally, as the hour dragged to midnight, Jan finished calculating the ________ ratio, because Donna wanted to know how efficiently and effectively management is using its assets to generate profits. activity leverage profitability equity

profitability

Market control is an approach that emphasizes the use of external market mechanisms to establish the ________ used in the control system. values principles measurements standards

standards

In some cases, ________ may be a result of an unrealistic standard. If the goal is too low or too high, the standard, not the performance, needs corrective action. discrepancy inconsistency variance disparity

variance

If managers do not control, they have no way of knowing ________. *how well the organization is doing financially and what needs to be done for improvement *if the organization is sound or how to improve the overall business plan *if their employees are well trained and efficient or if they need more training *whether their goals and plans are being achieved and what future actions to take.

whether their goals and plans are being achieved and what future actions to take.