MGMT 2 (Study Concept Questions)

What is a group created by the members themselves to accomplish goals that may or may not be relevant to an organization? - Formal group - Informal group - Committee - Groupthink - Task force

Informal group

Which skills are defined as the ability to deal with people, both inside and outside the organizations? - Technical skills - Communication skills - Analytical skills - Conceptual skills - Interpersonal skills

Interpersonal skills

How are basic research and applied research different? - Applied research just wants to uncover new knowledge; while, basic research wants to discover new knowledge with some potential use. - Basic research just wants to uncover new knowledge; while, applied research wants to discover new knowledge with some potential use. c. Applied research just wants to uncover new knowledge; while, basic research involves research activities undertaken specifically to put new or existing knowledge to use producing goods and services. - Basic research involves research activities undertaken specifically to put new or existing knowledge to use producing goods and services; while, applied research wants to discover new knowledge with some potential use. - Basic research wants to discover new knowledge with some potential use; while, applied research involves research activities undertaken specifically to put new or existing knowledge to use producing goods and services.

Basic research just wants to uncover new knowledge; while, applied research wants to discover new knowledge with some potential use.

_____, one tool that is used for total quality management (TQM), is the process of evaluating the products, processes, or management practices of another organization for the purpose of improving quality. - Inventory control - Quality control - Statistical process control - Benchmarking - Efficient scheduling

Benchmarking

What is the concept's name that is built on an idea of eliminating waste from all of the activities required to produce a product or service? - Lean manufacturing - Indirect manufacturing - Direct manufacturing - Continuous process - Flexible manufacturing

Lean manufacturing

Which of the following is NOT a potentially negative consequence of job specialization? - Poor quality of work - Boredom and dissatisfaction with jobs - High employee turnover - Less injuries - Higher rate of absenteeism

Less injuries

Which of the following is not one of the four types of utilities? - Magnitude - Time - Form - Possession - Place

Magnitude

This deals with establishing organizational goals and deciding how to accomplish them; it is sometimes referred to as the "first" management function because all other management functions depend upon it. - Planning - Mission - Dore competencies - Leading - Human resources

Planning

Top managers spend most of their time performing which of the following management functions? - Organizing - Planning - Directing - Staffing - Controlling

Planning

Which of the following is considered a shortcoming of owning a franchise? - National and local advertising programs - Can start a business with limited capital - Possible market saturation - Centralized buying power - Guidance and advice from the franchisor

Possible market saturation

Which of the following is NOT a major consideration when organizing a business? - Span of management - Job design - Delegation - Departmentalization - Production of a good

Production of a good

The amount of products or services that an organization can produce in a given time is known as: - mass production. - capacity. - analytical process. - product line. - design process.

capacity.

When the decisions to be made by a business are risky and when low-level managers are not highly skilled in decision making then the company tends to be more _____. - centralized - over-centralized - cross-functional - decentralized - under-centralized

centralized

The _____ personality tends to take initiative, be visionary, and be forward-looking. Their enthusiasm energizes and inspires employees. - entrepreneurial - democratic - participative - free-rein - autocratic

entrepreneurial

The final step in managerial decision making entails _____. - identifying the problem - evaluating the solution - implementing the alternative - generating alternatives - selecting an alternative

evaluating the solution

A(n) ______________ combines electronic machines and computer-integrated manufacturing in a single production system. - technological displacement - continuous process - robotics system - flexible manufacturing system - intermittent process

flexible manufacturing system

A person who buys a franchise is known as the: - agent. - seller. - franchise. - franchisor. - franchisee.

franchisee.

Management must coordinate four types of resources to produce goods and services, but another way to look at management is in terms of the different _____________ managers perform. - financial tasks - meetings - functions - events

functions

An informal channel of communication separate from management's formal official communications related to a job or organization that can sometimes be gossip is called a: - announcement. - groupthink. - memo. - email. - grapevine.

grapevine.

John had a good idea for a candy manufacturing business. He decided that he wanted to take the risk, become an entrepreneur, and start his own business. Now, ten years later, John's candy company has 20 locations all over the United States and employs nearly 1,000 people. This example illustrates: - that small businesses have little effect on the economy. - that there is a large demand for candy in the United States. - that entrepreneurs are of superior intelligence. - the risks associated with entrepreneurship. - how small business fuels job creation and innovation.

how small business fuels job creation and innovation.

The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs is referred to as: - just-in-time inventory. - economic order quantity model. - materials requirements planning. - raw materials inventory. - inventory control.

inventory control.

To combat the potential negative consequences of specialization, managers often turn to _______, the systematic shifting of employees from one job to another. - span of management - division of labor - job rotation - departmentalization - job sharing

job rotation

One reason for _____ is efficiency. People can perform more efficiently if they master just one distinct task rather than all tasks. - job enrichment - job rotation - job specialization - job sharing - flextime

job specialization

The process of coordinating people and other resources to achieve the goals of an organization is known as: - staffing. - goals. - management. - financing. - planning.

management.

Most companies use _____ to determine which goods and services to provide and the features they need to possess. - accounting departments - networking - research and development (R&D) - competitors - technology

research and development (R&D)

A committee that is established to investigate a major problem or pending decision of the firm (for example assessing the pros and cons of a potential merger) is known as a(n): - group. - team. - standing committee. - task force. - ad hoc committee.

task force.

A franchisee acquires rights to all of the following, except: - national advertising by the franchise. - a logo. - other franchisee's employees and management. - a name. - methods of operation of the business.

other franchisee's employees and management.

The major decisions involved in design planning deal with: - type of business ownership, financial planning, and human resources. - human resources, community development, and use of technology. - required capacity, financial planning, and physical location. - product line, required capacity, and use of technology. - financial planning, product line, and supply-chain management.

product line, required capacity, and use of technology.

A process in operations management in which raw materials are broken into different component parts is known as _______; while, a process in which raw materials or components are combined to create a finished product is known as _______. - synthetic process; remanufacturing process - remanufacturing process; manufacturing process - analytical process; manufacturing process - synthetic process; analytic process - analytical process; synthetic process

- analytical process - synthetic process

If the span of management is wide, _______ levels are needed, and the organization is _______. If the span of management is narrow, ________ levels are needed, and the resulting organization is _______. - fewer; flat; more; tall - more; tall; fewer; flat - more; flat; fewer; tall - fewer; tall; more; flat

- fewer - tall - more - flat

When a local pizza parlor takes raw ingredients such as tomatoes, cheese, and flour to make a pizza for a customer, the raw ingredients are known as the _______ of the conversion process and the degree to which the resources are physically changed is known as the _______ of the conversion process. - utility; focus - magnitude; focus - focus; magnitude - focus; utility - magnitude; utility

- focus - magnitude

Franchising allows a _____ the opportunity to set up a small business relatively quickly, and because of its association with an established brand, a _____ outlet often reaches the break-even point faster than an independent business would. - franchise; franchisee - franchisor; franchisee - franchisor; franchise - franchisee; franchisor - franchisee; franchise

- franchisee - franchise

Knowledgeable entrepreneurs choose areas with which they are familiar. These are most often the more established industries that require only a ___________ investment and some special ______________. - low initial; on-the-job training - mid-sized initial; on-the-job training - high initial; industrial tools - low initial; skills or knowledge

- low initial - skills or knowledge

A _____ span of management exists when a manager directly supervises a very large number of subordinate employees. A _____ span of management exists when a manager directly supervises only a few subordinates. - deep; narrow - wide; deep - narrow; deep - narrow; wide - wide; narrow

- wide - narrow

Which of the following is NOT a factor that influences whether a firm is decentralized? - Prior use of centralization or decentralization - The external environment - The nature of decision risk - The abilities of lower-level management - A code of ethics

A code of ethics

When does routing take place for operations managers? - Prior to even considering which parts to purchase and where - After materials have been purchased, but before their use is determined - Prior to all material procurement - As the final stage of the manufacturing process - After materials have been purchased and their use determined

After materials have been purchased and their use determined

How is the production of services similar to the production of manufactured goods? - The level of involvement of the customer is the same for both manufactured goods and services. - Both manufactured goods and services are labor-intensive. - Both types of businesses must plan, design, execute, evaluate, improve, and redesign their products to satisfy customers. - The durability is the same for both manufactured goods and services. - Since both manufactured goods and services are intangible, it is difficult to evaluate customer satisfaction.

Both types of businesses must plan, design, execute, evaluate, improve, and redesign their products to satisfy customers

What are the three key ingredients in small business survival as well as failure? - Marketing, financing, and planning - Planning, record keeping, and marketing - Human resource development, record keeping, and planning - Capital, management, and planning

Capital, management, and planning

____________ is a new alternative to traditional financing that uses online sites to invite people to contribute. - Crowdfunding - Credit cards - Angel investing - Selling life insurance policies to companies who become the policy beneficiaries

Crowdfunding

What is the advantage of departmentalization by customer? - Departmentalization by customer cannot be combined with any other departmentalization base. - Departmentalization by customer causes some duplication of specialized activities. - Departmentalization by customer demands a large administrative staff and elaborate control system for coordination. - Departmentalization by customer allows the firm to deal efficiently with unique customers or customer groups. - Departmentalization by customer can lead to slow decision making.

Departmentalization by customer allows the firm to deal efficiently with unique customers or customer groups.

Which category of industries includes retailing, wholesaling, transportation, and communications—industries concerned with the movement of goods from producers to consumers? - Production - Technological - Service - Distribution

Distribution

________ franchises occur when two franchisors offer their products together; this is becoming a new small-business trend. - Partnering - Matching - Dual-branded - Twin

Dual-branded

Which of the following is NOT an advantage of smallness in business? - Easy to raise capital - Personal relationships with customers and employees - Ability to adapt to change - Simplified record keeping - Independence

Easy to raise capital

Which of the following is the most likely reason that a small-business owner may become frustrated as a franchisee? - Management training and support - Site selection - Reduced stress and responsibility - Excessive restrictions resulting in less freedom - Creating and managing national advertising

Excessive restrictions resulting in less freedom

_____ is a significant question because, once the decision has been made and implemented, the firm must live with it due to the high costs involved. - Continuous manufacturing organization - Fixed-position layout - Process layout - Use of technology - Facility location

Facility location

Which characteristic does NOT support a narrow span of management? - A great deal of interaction is required between supervisor and workers - The manager has much work to do in addition to supervising workers - New problems arise frequently - Few new problems are expected to arise - Workers are physically located far from one another

Few new problems are expected to arise

Sandra is a no-nonsense manager with excellent budgeting skills. On projects that Sandra manages, the team always comes in under budget. When forecasting costs for a plan, Sandra is extremely accurate. Sandra is skilled at managing which resource for her company? - Suppliers - Physical - Financial - Employees - Information

Financial

What utility is created by people converting raw materials, finances, and information into finished products? - Time utility - Form utility - Place utility - Possession utility - Operations utility

Form utility

____ is the second step in the decision-making process and it depends on creativity for new and useful ideas, regardless of where the ideas come from. - Selecting an alternative - Implementing the solution - Generating alternatives - Identifying the problem - Evaluating the solution

Generating alternatives

Which managers are responsible for recruiting and hiring employees, developing and administering employee benefits, training and performance appraisal programs, and dealing with government regulations concerning employment practices? - Human resources managers - Operations managers - Financial managers - Marketing managers - Administrative managers

Human resources managers

Nadine manages the quality control department for her company. Recently, Nadine became aware of a quality problem with one of the company's products. After studying the issue Nadine determined the quality of raw materials used in the product was deficient and began looking at changing suppliers. Which step in the decision-making process did Nadine exemplify when she determined the quality of raw materials was substandard? - Evaluating the solution - Develop options - Selecting an alternative - Generating alternatives - Identifying the problem

Identifying the problem

Which of the following is least likely to be a role of operations management? - Managing logistics - Manufacturing productivity - Quality control - Oversee the transformation process - Marketing of products

Marketing of products

_____ structures provide flexibility, enhanced cooperation, and creativity, and they enable the company to respond quickly to changes in the environment by giving special attention to specific projects or problems. - Network - Line - Self-managed - Line-and-staff - Matrix

Matrix

Which of the following is NOT a component to be addressed by management in order for total quality management (TQM) programs to be effective? - Continuous quality improvement - Improving customer satisfaction - Maximizing shareholder profits - Strengthening supplier partnerships - Increasing employee participation

Maximizing shareholder profits

In this type of culture (popular in large banks and investment firms), you have employees who are passionate, energetic, goal-oriented, and have a sense of purpose and excitement for their work. - Networked culture - Mercenary culture - Normative culture - Communal culture - Fragmented culture

Mercenary culture

Which of the following is NOT a disadvantage of a network structure? - Problems controlling the work quality of other organizations - High turnover of hourly workers - No centralized leader - Lack of a clear hierarchy - Low morale of hourly workers

No centralized leader

_____ leadership can motivate employees to work effectively because they are consulted before making decisions. This helps them understand which goals are important and fosters a sense of ownership and commitment in decision making. - Participative - Transactional - Free-rein - Entrepreneurial - Autocratic

Participative

Which term describes the act of buying of all materials needed by the organization? - Just-in-time - Purchasing - Quality control - Selling - Materials requirement planning

Purchasing

_____ refers to the processes an organization uses to maintain its own established quality standards within the organization. - Malcolm Baldrige National Quality Award - Just-in-time inventory - Materials requirements planning - Scheduling - Quality control

Quality control

Basic rights and obligations are delineated in a franchise agreement. Which of the following is a franchising obligation? - Use of the franchisor's copyrighted materials - Follow guidelines established by the franchisor regarding exclusive territorial rights - Requirement to purchase goods or products from the franchisor - Rights to obtain supplies from nominated suppliers at special prices

Requirement to purchase goods or products from the franchisor

Which technique do businesses use to improve quality of products and services, as well as overall performance? - Total quality management (TQM) - Statistical process control (SPC) - Continuous improvement - Six Sigma

Six Sigma

The government agency that advises and assists small businesses by providing management and financial assistance including counseling on improving operations and assisting with obtaining debt financing is known as the _____. - Better Business Bureau (BBB) - small-business institutes (SBIs) - small-business development centers (SBDCs) - Small Business Administration (SBA) - Service Corps of Retired Executives (SCORE)

Small Business Administration (SBA)

______ are independently owned and operated, not dominant in their field of operation, and meet certain standards of size in regard to number of employees or average annual sales. - Joint ventures - Open corporations - Franchises - Small businesses - Syndicates

Small businesses

_____ are business clinics, usually located on college campuses that provide free counseling and training for owners of small businesses. - Better Business Bureau (BBB) - Small-business investment companies (SBICs) - Self-employment assistance (SEA) - Small-business development centers (SBDCs) - Service Corps of Retired Executives (SCORE)

Small-business development centers (SBDCs)

Which of the following is a way in which the Small Business Administration provides financial assistance to small businesses? - Small-business investment companies (SBICs) - Small-business development centers (SBDCs) - Self-employment assistance (SEA) - Better Business Bureau (BBB) - Service Corps of Retired Executives (SCORE)

Small-business investment companies (SBICs)

The production of services is different from the production of manufactured goods in all of the following ways, except: - Services are intangible, and it is therefore more difficult to evaluate customer satisfaction. - Services are usually labor-intensive. - Services are provided when and where the customer desires the service; in many cases, customers will not travel as far to obtain a service. - Services are consumed immediately and, unlike manufactured goods, cannot be stored. - When compared to services, customers are much more involved in obtaining the manufactured good they want or need.

When compared to services, customers are much more involved in obtaining the manufactured good they want or need.

Franchises offer people starting a business the advantage of a recognized name, management assistance, and - no royalties or fees. - a greater chance for success. - large territories without competition. - discounted fees. - a lot of regulations

a greater chance for success.

All of the following are factors that encourage certain people to start new businesses, except: - a willingness to find and accept a challenge. - a desire to determine one's own destiny. - independence. - a reclusive nature. - a family member(s) who has had been in business.

a reclusive nature.

Knowing how to sort large amounts of information in order to find relevant facts to resolve a problem or issue is an example of: - technical skills. - leadership. - interpersonal skills. - conceptual skills. - analytical skills.

analytical skills.

All of the following are potential disadvantages of committees, except: - committees may undergo unnecessary compromise. - committees make more accurate decisions than individuals. - committees have deliberations that take longer than individual actions. - committees may have one person who dominates the committee process.

committees make more accurate decisions than individuals.

The CEO of a large beverage company led the company in the takeover of its two largest bottlers. The CEO pushed for the merger because buying the bottlers gave the company control of 80 percent of its North American distribution, making it easier for the company to test new products. The CEO's ability to think in abstract terms and see how parts of the company fit together to achieve long-term goals is an example of _____. - analytical skills - technical skills - interpersonal skills - communication skills - conceptual skills

conceptual skills

The three steps of the _____ process include setting standards against which performance can be compared, measuring actual performance and comparing it with the standard, and taking corrective action as necessary. - planning - leading - controlling - organizing - motivating

controlling

The inner rites, rituals, heroes, and values of a firm are known as: - corporate culture. - corporate norms. - corporate regulations. - corporate goals. - corporate rules.

corporate culture.

Giving employees not only tasks but also the power to make commitments, use resources, and take whatever actions are necessary to carry out those tasks is the definition of: - responsibility. - leadership. - accountability. - delegation of authority. - departmentalization.

delegation of authority.

The form of departmentalization that groups jobs that perform similar functional activities, like finance and marketing, is called: - departmentalization by product. - departmentalization by location. - departmentalization by economics. - departmentalization by customer. - departmentalization by function.

departmentalization by function

When a company looks to departmentalize by areas of business like Japan, America, and Australia it is exemplifying ______. - departmentalization by product - departmentalization by economics - departmentalization by function - departmentalization by customer - departmentalization by location

departmentalization by location

All of the following are steps in the operational planning process, except: - estimating market demand. - selecting a planning horizon. - comparing market demand with capacity. - adjusting products or services to meet demand. - developing a plan to convert the idea into a new good or service.

developing a plan to convert the idea into a new good or service.

The level of management that is responsible for developing tactical and operational plans and makes up the largest group of managers in most organizations is _____. - operational management - top management - financial management - middle management - first-line management

middle management

According to the U.S. Office of Management and Budget, __________ of the major technological advances of the 20th century originated with individual inventors and small companies. - about one-fourth - nearly all - less than 10% - more than half

more than half

Employees have different _____; some are interested primarily in earning as much money as they can, while others may be spurred on by opportunities to get promoted. - planning - motivations - networking - implementing - agendas

motivations

Jake works in production for his company. Each week his work group is assigned a production quota to ensure enough product is available to meet the goals of the company. In this case, the production quota is an example of a(n) _____ plan. - business - operational - strategic - SWOT - tactical

operational

Mark's job involves purchasing raw materials, managing inventory, and scheduling the workers who build the company's product, Mark is a(n) _____ manager. - financial - marketing - operations - administrative - human resources

operations

A specialized area of management involving all the activities needed to convert or transform resources into goods and services is: - shipping and receiving. - inventory management. - marketing management. - operations management. - financial management.

operations management.

As a company grows, it may become necessary for it to create a(n) ______, which is a visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication. - decentralization chart - centralization chart - departmentalization chart - code of ethics - organization chart

organization chart