MGMT 468 Exam 2 Multi

All of the following constitute organizational bases of a leader's power EXCEPT A. legitimate power. B. reward power. C. referent power. D. coercive power.

referent power.

Which of the following statements would least likely be found in a corporate credo? A. Maximize financial benefits for stakeholders. B. Provide secure and stable employment for employees. C. Establish an environment that enhances professional growth. D. Support community organizations and projects.

A. Maximize financial benefits for stakeholders.

The benefits of continuous monitoring include A. enhancing the organization's ability to respond with speed and flexibility. B. replacing the time-consuming process of organizational learning. C. dramatically altering the organization's response to its competitive environment. D. all of these.

A. enhancing the organization's ability to respond with speed and flexibility.

Which of the following is an important characteristic of a leader? A. goal-oriented B. satisfied with the status quo C. reactive D. focused on past performance

A. goal-oriented

Proactive measures to prevent organizational ethics problems include all of the following EXCEPT A. instituting a reward system which considers outcomes as its primary criterion. B. using leaders as role models of ethical behavior. C. issuing statements describing the organization's commitment to certain standards of behavior. D. using the organization's information systems as a control system.

A. instituting a reward system which considers outcomes as its primary criterion.

Proactive measures to prevent organizational ethics problems include all of the following except A. instituting a reward system which considers outcomes as its primary criterion B. using leaders as a role models of ethical behavior C. issuing statements describing the organization's commitment to certain standards of behavior D. using the organization's information systems as a control system

A. instituting a reward system which considers outcomes as its primary criterion.

Whereas __________ are often associated with a low cost leader strategy, __________ are frequently an important aspect of a differentiation strategy. A. process innovations; product innovations B. product innovations; service innovations C. radical innovations; instrumental innovations D. marketing innovations; management innovations

A. process innovations; product innovations

Common features of a dispersed approach to corporate entrepreneurship include all of the following EXCEPT A. semi-autonomous new venture groups. B. use of product champions. C. a top-down approach to supporting entrepreneurial behavior. D. an entrepreneurial culture.

A. semi-autonomous new venture groups.

Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that A. the similarity required for sharing core competencies must be in the value chain, not in the product. B. the products use similar distribution channels. C. the target market is the same, even if the products are very different. D. the methods of production are the same.

A. the similarity required for sharing core competencies must be in the value chain, not in the product.

Mary Stinson was required to take over a project after the entire team left the company. She was able to reconstruct what the team had accomplished through reading e-mails exchanged by the previous teams members. This is an example of A. Using explicit knowledge B. Inefficient use of information management C. using tacit knowledge D. All of the above

A. using explicit knowledge (E-Mails)

Three ingredients are critical in order for an entrepreneurial startup to be successful. What are they? A. Good ideas, a team of investors, and a business plan B. A viable opportunity, available resources, and a qualified and motivated founding team C. An opportunity, a marketing plan, and office space D. Management, marketing, and money

B. A viable opportunity, available resources, and a qualified and motivated founding team

Rules and regulations, rather than culture or rewards, would be used for strategic control at which type of company? A. software developer B. stock brokerage firm C. manufacturer of mass produced products D. high tech research facility

C. manufacturer of mass produced products

The "traditional" approach to strategic control is sequential. Which of the following is not one of the steps in the sequence? A. Action plans are submitted by lower level managers. B. Performance is measured against the predetermined goal. C. Strategies are implemented. D. Strategies are formulated and top management sets goals.

A. Action plans are submitted by lower level managers.

Why is vision such an important element of entrepreneurial leadership? A. Because the entrepreneur has to envision realities do not yet exist B. Because a vision statement must be part of the documentation used to obtain venture financing C. Because organizations cannot function without a detailed and operational vision D. All of the above

A. Because the entrepreneur has to envision realities that do not yet exist

When an industry is mature, a ___________ strategy may be considered to be an effective approach for a new entrant. A. Focus B. Differentiation C. Overall Low-Cost D. Small Business

A. Focus

Which statement regarding competitive advantages is true? A. If several competitors pursue similar differentiation tactics, they may all be perceived as equals in the mind of the consumer B. With an overall cost leadership strategy, firms need not be concerned with parity on differentiation C. In the long run, a business with one or more competitive advantages is probably destined to earn normal profits D. Attaining multiple types of competitive advantage is a recipe for failure

A. If several competitors pursue similar differentiation tactics, they may all be perceived as equals in the mind of the consumer

All of the following are characteristics of a disruptive innovation EXCEPT A. It is usually more sophisticated technologically. B. It appeals to less demanding customers. C. It is typically a less expensive solution for meeting a need. D. It usually takes root in a new market or the low-end of an existing market.

A. It is usually more sophisticated technologically.

The W. L. Gore organization, a highly innovative company, uses several approaches and "rules of thumb" to encourage innovation. Which of the following is NOT one of them? A. It requests that all risk-taking activities have a financial pay-off within one year. B. It celebrates failure rather than condemning it. C. It promotes person-to-person communications rather than e-mails. D. It uses small teams to promote creativity and autonomy.

A. It requests that all risk-taking activities have a financial pay-off within one year.

Which of the following is NOT one of the characteristics of reward and incentive systems? A. They represent a poor means of influencing an organization's culture. B. They focus efforts on high-priority tasks. C. They motivate high levels of individual and collective task performance. D. They represent an effective control mechanism.

A. They represent a poor means of influencing an organization's culture.

The source of referent power is A. a subordinate's identification with the leader. B. a leader's identification with the subordinates. C. derived from the fact that the manager can potentially act as a reference when the employee applies for another job. D. derived from the manager's ability to provide effective incentives to employees.

A. a subordinate's identification with the leader.

According to Henry Mintzberg, the realized strategies of a firm ______ A. are a combination of deliberate and emergent strategies B. are a combination of deliberate and differentiation strategies C. must be based on a company's strategic plan D. must be kept confidential for competitive reasons

A. are a combination of deliberate and emergent strategies

Complete the following sentence: "As firms simultaneously downsize and face the need for increased coordination across organizational boundaries, a control system based primarily on __________ is dysfunctional." A. boundaries and constraints B. culture and rewards C. organizational loyalty D. innovation and risk taking boundaries and constraints

A. boundaries and constraints

According to the text, effective leadership is like a three-legged stool consisting of all of the following EXCEPT A. dedication to maintaining the status quo. B. nurturing a culture dedicated to excellence and ethical behavior. C. determining a direction. D. designing the organization.

A. dedication to maintaining the status quo.

The innovation dilemma known as building capabilities versus collaborating refers to A. developing innovation skills internally versus partnering with qualified outsiders. B. building innovative products in-house versus outsourcing. C. building credibility by launching products ahead of potential collaboration partners. D. all of these.

A. developing innovation skills internally versus partnering with qualified outsiders.

Complete the following sentence. The days when a company's leader __________ are gone; today, all employees need to be involved in __________. A. learned for the organization; learning and adapting B. managed from the top; self-management C. delegated authority; assuming responsibility and control D. was held in high regard; holding leaders accountable for their actions

A. learned for the organization; learning and adapting

Barriers in which the design of the organization's structure, information processing, and reporting relationships, impede the proper flow and evaluation of information are known as A. systemic barriers. B. behavioral barriers. C. political barriers. D. barriers to entry.

A. systemic barriers.

All of the following statements about ethical organizations are true EXCEPT A. the potential benefits of an ethical organization are few but direct. B. ethical values shape the search for opportunities. C. organizational ethics define what a company is and what it stands for. D. ethics provide a common frame of reference that serves as a unifying force.

A. the potential benefits of an ethical organization are few but direct.

Coercive power is A. the power exercised by use of fear of punishment for errors of omission or commission by employees. B. the power of persuasion exercised by a charismatic leader to get compliance from reluctant subordinates. C. is the type that arises from a manager's access, control, and distribution of information that is not freely available to everyone in an organization. D. the ability of the leader or manager to confer rewards for positive behaviors or outcomes

A. the power exercised by use of fear of punishment for errors of omission or commission by employees.

XYZ's CEO scrapped the company's commission-based reward system because it was rewarding employees for inappropriate behavior. This is an example of A. Setting a direction B. Designing the organization C. Unethical behavior D. Failure to maintain the status quo

B. Designing the organization

Top managers at ABC Company meet every Friday to review daily operational reports and year-to-date data. This is an example of A. Behavioral Control B. Informational Control C. Strategy Formulation D. Strategy Implementation

B. Informational Control

Informational control systems ask A. Is the organization "doing things right"? B. Is the organization "doing the right things"? C. Are rules and regulations being followed as information is processed? D. Is the organization's environment a necessary and sufficient condition for success?

B. Is the organization "doing the right things"?

The late Sam Walton, founder of Walmart, used to give pep rallies at local Walmart stores. What purpose did this serve? A. It was used to remind employees of Walmart's rules and regulations. B. It helped reinforce and sustain Walmart's culture. C. It demonstrated to employees the importance of articulating explicit goals and objectives. D. It made Walmart's reward system very explicit.

B. It helped reinforce and sustain Walmart's culture.

Complete the following sentence. "Inspiring and motivating people with a mission or purpose is a ____________ for developing an organization that can learn and adapt." A. necessary and sufficient condition B. necessary, but not a sufficient condition C. goal, but not a necessary condition D. goal and a required pre-condition

B. Necessary, but not a sufficient condition

Generally speaking, discussions of the relationship between strategy and structure strongly imply that A. Strategy follows structure B. Structure follows strategy C. Strategy can effectively be formulated without considering structural elements D. Structure typically has a very small influence on a firm's strategy

B. Structure follows strategy

Intel's exemplary corporate governance practices include all of the following EXCEPT A. a mix of inside and outside directors. B. all outside directors to assure objectivity in decision-making. C. board presentations and access to employees. D. formal evaluation of officers.

B. all outside directors to assure objectivity in decision-making.

Barriers associated with a manager's tendency to look at issues from a biased or limited perspective are known as A. systemic barriers. B. behavioral barriers. C. political barriers. D. barriers to exit.

B. behavioral barriers.

According to the text, __________, which support fledgling startups are often used to pursue specific entrepreneurial ventures developed by __________. A. collaboration partners; strategic partners B. business incubators; new venture groups C. product champions; corporate venture capitalists D. lower-level managers; upper-level managers

B. business incubators; new venture groups

Leaders play a key role in developing and sustaining an organization's A. status quo. B. culture. C. reporting relationships. D. rules and regulations.

B. culture.

XYZ's CEO scrapped the company's commission-based reward system because it was rewarding employees for inappropriate behavior. This is an example of A. setting a direction. B. designing the organization. C. unethical behavior. D. failure to maintain the status quo.

B. designing the organization.

Which component of Emotional Intelligence (EI) enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences? A. self-awareness B. empathy C. social skills D. self-regulation

B. empathy

All of the following are dilemmas faced by corporations trying to manage the innovation process EXCEPT A. launching incremental rather than "preemptive" innovations. B. emphasizing marketing over management innovations. C. preferring experience over initiative. D. choosing internal rather than external staffing.

B. emphasizing marketing over management innovations.

Rule-based controls are most appropriate in organizations with all of the following characteristics EXCEPT A. environments are stable and predictable. B. employees are highly skilled and independent. C. consistency in product and service. D. the risk of malfeasance is extremely high.

B. employees are highly skilled and independent.

Top managers at ABC Company meet every Friday to review daily operational reports and year-to-date data. This is an example of A. behavioral control. B. informational control. C. strategy formulation. D. strategy implementation.

B. informational control.

In corporations with a strong entrepreneurial culture, the willingness and ability to change A. is imposed from the top-down. B. is considered a core capability. C. often leads to instability. D. often worries stakeholders such as suppliers and creditors

B. is considered a core capability.

The primary participants in corporate governance are all of the following EXCEPT A. the shareholders. B. key stakeholders such as financial institutions. C. the management (led by the chief executive officer). D. the board of directors.

B. key stakeholders such as financial institutions.

According to a study by O'Reilly and Tushman, effective ambidextrous structures had all of the following attributes except A. a clear and compelling vision B. managerial efforts that were highly focused on revenue enhancement C. Cross-fertilization among business units D. Established units that were shielded from the distractions of launching new businesses

B. managerial efforts that were highly focused on revenue enhancement

Radical innovations A. often result in quick profits. B. often represent technological breakthroughs. C. usually apply to products and processes simultaneously. D. usually cannot be patented.

B. often represent technological breakthroughs.

Refusal to share information, conflicts over resources, conflicts between departments and divisions, and petty interpersonal differences are symptoms of which type of barrier to change? A. systemic barriers B. political barriers C. behavioral barriers D. all of these

B. political barriers

CEO duality refers to a situation in which A. the CEO formulates and implements strategies. B. the CEO serves as both the CEO and the chair of the board of directors. C. the CEO is responsible for acting as CEO and serving on the compensation committee. D. the CEO is responsible for acting as CEO and Chief Operating Officer (COO).

B. the CEO serves as both the CEO and the chair of the board of directors.

All of the following are characteristics of effective reward and incentive systems EXCEPT A. performance measures are clear and highly visible. B. the structure is fixed to assure employees of consistency. C. the compensation system is perceived as fair and equitable. D. objectives are well understood, and broadly accepted.

B. the structure is fixed to assure employees of consistency.

For businesses facing complex and turbulent business environments A. goals and objectives that are uncertain prevent opportunism. B. traditional strategic controls are usually inappropriate. C. complacency about predetermined milestones can prevent adaptability. D. detailed plans are needed to maintain order.

B. traditional strategic controls are usually inappropriate.

The idea that breach of contract generally only allows recovery for profits and costs incurred due to the breach is called: A.The compensatory rule B.The economic loss rule C. The remedy doctrine D.None of the above

B.The economic loss rule

On average, approximately what percentage of corporate ventures reaches profitability within six years? A. 80 percent. B. 65 percent. C. 50 percent. D. 35 percent.

C. 50 percent.

Which of the following approaches to behavioral strategic control should be utilized least in an organization in which there is a great need for innovation and a high degree of autonomy? A. culture B. rewards C. boundaries D. all of these are equally important

C. Boundaries

Which of the following statements about ethics is FALSE? A. Ethics may be defined as a system of right and wrong. B. Ethics assists individuals in deciding when an act is moral or immoral. C. Ethics is NOT concerned with whether or not an act is socially desirable. D. Business ethics is the application of ethical standards to commercial enterprises.

C. Ethics is NOT concerned with whether or not an act is socially desirable.

The benefit or advantage of having an established business and secured customers is: A. Trade Dress B. Trade Secret C. Goodwill D. Brand Name E. None of the above

C. Goodwill

Which of the following is not one of the characteristics of a contemporary control system? A. It is a key catalyst for an ongoing debate about underlying data, assumptions, and action plans B. It must focus on constantly changing information that is strategically important C. It circumvents the need for face-to-face meetings among superiors, subordinates, and peers D. It generates information that is important enough to demand regular and frequent attention

C. It circumvents the need for face-to-face meetings among superiors, subordinates, and peers

Which of the following is NOT one of the characteristics of a contemporary control system? A. It is a key catalyst for an ongoing debate about underlying data, assumptions, and action plans. B. It must focus on constantly changing information that is strategically important. C. It circumvents the need for face-to-face meetings among superiors, subordinates, and peers. D. It generates information that is important enough to demand regular and frequent attention.

C. It circumvents the need for face-to-face meetings among superiors, subordinates, and peers.

Rules and regulations, rather than culture or rewards, would probably be used for strategic control at what type of company? A. Software developer B. Stock brokerage firm C. Manufacturer of mass-produced products D. High-tech research facility

C. Manufacturer of mass-produced products

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of the following is not a technique for moving in that direction? A. Hire people that identify with the organization's dominant values. B. Develop managerial role models. C. Minimize training and indoctrination. D. Align reward systems with organizational goals and objectives.

C. Minimize training and indoctrination.

__________ refers to efforts to create designs and applications of technology to develop new products, while __________ refers to efforts to improve the efficiency of organizational systems such as manufacturing and operations. A. Radical innovation; incremental innovation B. Breakthrough innovation; instrumental innovation C. Product innovation; process innovation D. Product innovation; service innovation

C. Product innovation; process innovation

Which of the following might best describe the motivations and actions of small firms as they respond to competitive attacks? A. Because they lack legitimacy in the marketplace, small firms need to signal their competitive actions long before they launch those actions B. Small firms typically have more resources available as they undertake competitive attacks C. Small firms are more nimble and can respond quickly to competitive attacks D. All of the above

C. Small firms are more nimble and can respond quickly to competitive attacks

Incremental innovations A. are usually highly disruptive. B. usually represent technological breakthroughs. C. are usually small improvements in products and processes. D. nearly always can be patented.

C. are usually small improvements in products and processes.

Two common forms of a focused approach to corporate entrepreneurship include A. internal collaboration and internal venturing. B. social capital and collaboration capital. C. business incubators and new venture groups. D. focus groups and business incubators.

C. business incubators and new venture groups.

External governance control mechanisms include all of the following EXCEPT A. auditors. B. analysts. C. competitors. D. the market for corporate control.

C. competitors

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by A. posting written statements of the organization's goals and objectives. B. discouraging the formation of subcultures that isolate work groups. C. designing effective reward systems. D. encouraging employees to see themselves as free agents.

C. designing effective reward systems

All of the following are types of information that a firm is required to disclose EXCEPT A. quarterly and annual filings of financial information. B. stock trading by insiders. C. details of new products under development. D. details of executive compensation packages.

C. details of new products under development.

Contemporary approaches to strategic control rely primarily on A. feedback controls. B. single-loop learning. C. double-loop learning. D. comparative learning.

C. double-loop learning.

The following two components of Emotional Intelligence (EI) deal with a person's ability to manage relationships with others: A. motivation and self-awareness. B. self-regulation and empathy. C. empathy and social skill. D. motivation and empathy.

C. empathy and social skill.

When subcultures emerge that have shared values opposite from the dominant culture of an organization A. organizational cohesiveness increases. B. information is shared rather than hoarded. C. individuals begin working at cross purposes. D. individuals gain insights into overarching goals and objectives.

C. individuals begin working at cross purposes.

All of the following statements about leadership are true EXCEPT A. leadership is focused on the creation and implementation of a creative vision. B. leadership is the process of transforming organizations from what they are to what the leader would have them become. C. leaders support the status quo and seek control mechanisms to maintain it. D. effective implementation of strategy is essential for successful leadership.

C. leaders support the status quo and seek control mechanisms to maintain it.

A danger of forecasting discussed in the text is that A. in most cases, the expense of collecting the necessary data exceeds the benefit B. forecasting's retrospective nature provides little information about the future C. managers may view uncertainty as "black and white" while ignoring important gray areas D. it can create legal problems for the firm if regulators discover the company is making forecasts

C. managers may view uncertainty as "black and white" while ignoring important "gray areas"

Effective boundaries and constraints A. tend to inhibit efficiency and effectiveness. B. distract employees who are trying to focus on organizational priorities. C. minimize improper and unethical conduct. D. tend to limit organizational growth.

C. minimize improper and unethical conduct.

Gillette combines several technologies to attain unparalleled success in the wet shaving industry. This is an example of their A. tangible resources B. intangible resources C. organizational capabilities D. strong primary activities

C. organizational capabilities

Creative intelligence involves the ability to see patterns in data, integrating data, and making insights. The four patterns of actions that help build creative intelligence are A. observing, experimenting, cataloging, and networking. B. questioning, observing, integrating, and networking. C. questioning, observing, experimenting, and networking. D. observing, experimenting, cataloging, and integrating.

C. questioning, observing, experimenting, and networking.

All of the following are components of Emotional Intelligence (EI) EXCEPT A. self-awareness. B. self-regulation. C. self-promotion. D. empathy.

C. self-promotion.

Dad orally promises to give his son the farm when he dies. Son then moves onto the land, builds a house and farms the fields for five years. Dad forgets to change his will and when Dad dies, Dad's executor refuses to deliver the farm to the son. If the son brings a lawsuit to enforce the promise, which of the following doctrines is most likely to benefit the son? A. Unconscionability B.Mistake of fact C.Promissory estoppel D.Lack of consideration E.Preexisting contractual obligations

C.Promissory estoppel

I am involved in an auto accident and am rendered unconscious. An M.D. happens along and renders me emergency aid which saves my life. Later, the M.D. sends me a bill for the medical services rendered. This is an example of a(n): A.Void contract B.Voidable contract C.Quasi-contract D.Express contract E.Unenforceable contract

C.Quasi-contract

The mirror-image rule deals with: A. Performance and Breach B. Tender and Acceptance C. Offer and Acceptance D. Acceptance and Rejection E. None of the above

D. Acceptance and Rejection

Divestment can be the common result of an acquisition. Divesting businesses can accomplish many different objectives. These include A. enabling managers to focus their efforts more directly on the firm's core businesses. B. providing the firm with more resources to spend on more attractive alternatives. C. raising cash to help fund existing businesses. D. all of the above.

D. All of the above

What advantages does outsourcing provide an organization? A. Access to the best-in-class goods and services B. The ability to expand rapidly with a relatively low capital investment C. The opportunity to focus scarce resources on existing core competencies D. All of the above

D. All of the above

If a merchant gives a signed writing to sell goods for a stated period of two months, this is called a(n); A. Option contract B. Rescission C. Counteroffer D. Firm offer E. None of the above

D. Firm Offer

Alex, the buyer, makes a contract with Bruce, a seller, to purchase 100 telephones. Bruce delivers to Alex 99 phones. If Alex rejects this delivery, he will rely on the: A.Mirror-image rule B.Main purpose doctrine C. Frustration of purpose doctrine D. Perfect tender rule E. None of the above

D. Perfect Tender Rule

__________ produce fundamental changes that can transform a company or even revolutionize an industry, while __________ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs. A. Technological breakthroughs; product-market breakthroughs B. New technologies; new paradigms C. Incremental innovations; radical innovations D. Radical innovations; incremental innovations

D. Radical innovations; incremental innovations

Which of the following is NOT an advantage of electronic teams (e-teams)? A. They can facilitate communication B. They have the potential to acquire a broader range of human capital C. They can be effective in generating social capital D. They're less flexible in responding to unanticipated work challenges

D. They're less flexible in responding to unanticipated work challenges

In a typical corporation, which of the following impact how the people within the corporation recognize entrepreneurial opportunities? A. structural features that guide and constrain action B. corporate culture C. organizational systems that foster learning and manage rewards D. all of these

D. all of these

Which of the following explains why organizations are prone to inertia and slow to change? A. personal time constraints B. political barriers C. vested interests in the status quo D. all of these

D. all of these

A culture of entrepreneurship is one in which A. the search for venture opportunities permeates every part of the organization. B. every value chain activity is viewed as a source of entrepreneurial value creation. C. employees at every level are attuned to opportunities to help create new businesses. D. all of these occur.

D. all of these occur.

The advantages of collaborating with strategic partners in order to innovate include A. obtaining skills and new knowledge from outside sources. B. making firms identify their own strengths and weaknesses. C. managers clarifying what an innovation project requires to be successful and who will accomplish it. D. all of these.

D. all of these.

The leader's role in developing a strategic vision provides many benefits including A. a clear future direction. B. a framework for their organization's mission and goals. C. enhanced employee communication and commitment. D. all of these.

D. all of these.

All of the following are examples of how organizational culture exerts behavioral control EXCEPT A. culture helps maintain control by creating behavioral norms. B. culture generates unwritten standards of acceptable behavior. C. culture encourages individual identification with the organization and its objectives. D. culture sets explicit boundaries.

D. culture sets explicit boundaries.

Cadbury Schweppes has a policy that all payments, no matter how unusual, are recorded in the company's books. This rule is A. overly cumbersome. B. aimed at encouraging managers to make better budgetary decisions. C. directed at protecting client confidentiality. D. designed to minimize improper and unethical conduct.

D. designed to minimize improper and unethical conduct.

Complete the following sentence: "Individual rationality __________ organizational rationality." A. is a good indicator of B. will ensure C. is often the opposite of D. does not always guarantee

D. does not always guarantee

Expert power A. is derived from organizationally conferred decision-making authority. B. arises from a manager's access, control, and distribution of information that is not freely available to everyone in an organization. C. is derived from referent power. D. is derived from the leader's capability and knowledge in a particular field.

D. is derived from the leader's capability and knowledge in a particular field.

Corporate business incubators typically provide some or all of the following functions EXCEPT A. physical space. B. mentoring. C. funding. D. student interns.

D. student interns.

Innovations that extend sales in an existing market, usually by enabling new products or services to be sold at higher margins are known as A. radical innovations. B. disruptive innovations. C. technology innovations. D. sustaining innovations.

D. sustaining innovations.

Poor organizational design by leaders can result in all of the following EXCEPT A. insufficient mechanisms that integrate and coordinate activities across the firm. B. inadequate accountability among managers and employees. C. inappropriate budgeting and control systems. D. teams, systems, and organizational processes that facilitate implementation.

D. teams, systems, and organizational processes that facilitate implementation.

The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all of the following factors EXCEPT A. the desire to get future auditing contracts from the company. B. the desire to get consulting work from the company because most audit firms also do consulting work. C. the fact that auditors are appointed by the firm. D. the failure of U.S. audit firms to hire technically qualified professionals.

D. the failure of U.S. audit firms to hire technically qualified professionals.

As markets mature, A. costs continue to increase B. applications for patents increase C. differentiation opportunities increase D. there is increasing emphasis on efficiency

D. there is increasing emphasis on efficiency

The primary drawback of "traditional" strategic control systems is A. they are only appropriate when the environment is stable and simple. B. goals and objectives cannot be measured with a high level of certainty. C. they lead to complacency. D. they lack the flexibility needed to adjust to changes in the environment.

D. they lack the flexibility needed to adjust to changes in the environment.