MGMT Ch 14

____ control is characterized by ____ rules and a(n) ____ structural arrangement. a. Decentralized; formal; organic b. Decentralized; informal; organic c. Bureaucratic; informal; mechanistic d. Bureaucratic; formal; organic e. None of these.

Decentralized; informal; organic

Preliminary control can be used with ____ resources. a. human b. financial c. physical d. information e. All of these.

all of these

Which of the following statements about financial audits is true? a. They are independent appraisals. b. They may be internal or external to the organization. c. They may be used to monitor accounting, financial, and operation systems within an organization. d. They may be conducted on a continual or an intermittent basis. e. All of these.

all of these

Where would you expect to find the following information: "ACME Insurance Company has $450 million dollars worth of assets"? a. Balance sheet b. Current liability c. Fixed asset d. Net income e. Stockholder's equity

balance sheet

Which of the following financial documents shows a listing of all the organization's assets and liabilities at a given point in time? a. Balance sheet b. Balance sheet budget c. Income statement d. Revenue budget e. Capital expenditures budget

balance sheet

Which of the following is the most common means of financial control within organizations? a. Financial statements b. Ratio analysis c. Budgets d. Financial audits e. Benchmarking

budgets

Which of the following statements does NOT describe a weakness associated with budgeting? a. Some manager apply budgets too rigidly. b. Developing budgets can be very time consuming. c. Budgets link planning and controlling. d. Budgets may limit innovation and change. e. Budgets may make it impossible to procure funds to take advantage of an unexpected opportunity.

budgets link planning and controlling

International firms, which use a ____ strategic control system keep ____ decision-making power in their headquarters, while firms that use a ____ strategic control system give ____ decision-making power to each local facility. a. decentralized; more; centralized; more b. decentralized; less; centralized; less c. centralized; less; decentralized; less d. centralized; more; decentralized; more e. None of these.

centralized; more; decentralized; more

Businesses that use H-form or M-form organizational design may have several ____ who are responsible for helping line managers with their control functions, for coordinating the organization's overall control system, and for gathering and assimilating relevant information. a. ombudsmen b. facilitators c. change agents d. controllers e. control champions

controllers

Kristen owns and operates a photography studio. A banker would want to look at her company's ____ ratios to determine if she can make interest payments on a business loan. a. coverage b. operating c. debt d. return e. None of these.

coverage

Which of the following would be viewed as a measure of the firm's ability to meet its long-term financial obligations? a. Debt ratio b. Balance sheet ratio c. Return on investment d. Operating ratio e. Liquidity ratio

debt ratio

You are a banker reviewing a loan application from a local business. Which of the following ratios would you look at to get a quick measure of the business's ability to meet its long-term financial obligations? a. Liquidity ratio b. Balance sheet ratio c. Return on investment d. Operating ratio e. Debt ratio

debt ratio

Johnson & Johnson does not require its various divisions to report in frequently. It believes in letting each manager have the authority to respond quickly to environmental changes. These changes do not have to be approved by Johnson & Johnson before they are implemented. Johnson & Johnson has ____ strategic control. a. bureaucratic b. inappropriate c. decentralized d. formalized e. inflexible

decentralized

All of the following are characteristics of an effective control system EXCEPT a. developed and implemented by top management. b. flexibility. c. integrated with planning. d. accurate. e. timely.

developed and implemented by top management

Anu is comparing the performance of her small landscaping business against the standards she established. When she has finished her comparisons, any of the following actions may be appropriate EXCEPT a. correct deviations as required. b. maintain the status quo. c. increase the control standards. d. decrease the control standards. e. eliminate the control standards.

eliminate the control standards

Retained earnings are part of ____ control of an organization. a. financial b. structural c. operating d. interim e. nonmonetary

financial

When classifying controls on the basis of the resources involved, we find that one class of resources is related to the control of all other resource classes as well. Which resource class overlaps all other classes? a. Physical resources b. Human resources c. Financial resources d. Information resources e. None of these.

financial resources

Which of the following is NOT a major form of operations control discussed in the text? a. Preliminary b. Screening c. Postaction d. Functional e. All of these are major forms of operations control.

functional

The purpose of bureaucratic control is to a. enhance employee participation in the control function. b. produce performance above minimum acceptable standards. c. get employee compliance. d. increase group performance. e. increase employee self-control.

get employee compliance

Standards used in organizational control are most like a. policies. b. strategies. c. goals. d. rules. e. standing plans.

goals

Performance appraisals are part of ____ control. a. physical b. human c. information d. financial e. quality

human

Which type of financial statement summarizes the organization's revenues and expenses over the previous year? a. Balance sheet b. Liquidity statement c. Cash flow statement d. Income statement e. Debt statement

income statement

Public relations is part of ____ control. a. physical b. human c. information d. financial e. quality

information

Sales forecasting, economic forecasting, and environmental analysis are examples of the control of a. physical resources. b. human resources. c. information resources. d. financial resources. e. None of these.

information resources

One way managers can improve the effectiveness of the control system is to a. change the performance standards. b. control as many things in the organization as possible. c. computerize the system. d. integrate control with planning. e. correct all deviations from standards.

integrate with control planning

When General Mills entered the yogurt market by buying Yoplait, it stated that it wanted to achieve sales of $50 million in five years. It was a. attempting to control its external environment. b. attempting to be timely with its controls. c. integrating planning with control. d. relying on bureaucratic controls. e. None of these.

integrating planning with control

Two years after purchasing a home, Victor received a check in the mail from his attorney. An accountant had found a discrepancy. The accountant conducted a(n) a. internal audit. b. debt audit. c. cash flow audit. d. balance audit. e. liquidity audit.

internal audit

According to your text, strategic control is especially critical for which type of organizations? a. Conglomerate b. Small c. Entrepreneurial d. International e. None of these.

international

Stephanie makes handcrafted jewelry. She knows her inventory and how long it takes her to make each piece of jewelry. She knows how many days she has to fill an order. She is making a ____ budget. a. capital expenditure b. master c. space d. labor e. personnel

labor

The ____ explicit and the ____ precise the link between planning and control, the ____ effective the control system. a. less; less; less b. more; more; less c. more; less; less d. less; more; less e. None of these.

less; less; less

The ratios that assess the ease with which the assets of the organization can be converted into cash are a. liquidity ratios. b. profitability ratios. c. debt ratios. d. operating ratios. e. None of these.

liquidity ratios

Which of the following are important elements of decentralized control? a. Group norms b. Employee responsibility c. Tall organization structure d. All of these. e. Only group norms and employee responsibility.

only group norms and employee responsibility

If Disney wants to focus on the marketing strength of its theme parks, it will use ____. a. liquidity ratios b. balance sheet ratios c. return on investment d. operating ratios e. debt ratios

operating ratios

Postaction controls are applied to what part of a system? a. Postaction b. Structural c. Subsystems d. Controller e. Outputs

outputs

A math teacher at Princeton high school dismisses her students one at a time. It is driving the students crazy. The teacher has a. overcontrol. b. lack of standards. c. undercontrol. d. inappropriate focus. e. lack of accountability.

overcontrol

A math teacher at Princeton high school dismisses her students one at a time. It is driving the students crazy. If the teacher encouraged ____ it could help reduce resistance to control. a. participation b. flexibility c. appropriate focus d. high standards e. verification procedures

participation

Maintaining the optimal amount of inventory is part of ____ control. a. physical b. human c. information d. financial e. quality

physical

St. Paul's church counts the attendance at worship services to help measure satisfaction in the congregation. This is an example of a ____ control. a. preliminary b. postaction c. screening d. financial e. structural

postaction

T J Maxx often sells clothing that is "irregular." Separating the irregulars from the regulars is a ____ control. a. human resources b. financial c. screening d. postaction e. preliminary

postaction

A company that carefully evaluates job applicants is using ____ control. a. screening b. cybernetic c. postaction d. preliminary e. yes-no

preliminary

A(n) ____ compares different elements of a balance sheet and/or an income statement to one another. a. income statement b. balance sheet c. internal audit d. operations budget e. ratio analysis

ratio analysis

Which of the following is NOT characteristic of the bureaucratic approach to organizational control? a. Limited employee participation b. Rewards focused on individual performance c. Tall structure d. Reliance on group norms e. Minimum levels of acceptable performance

reliance on group norms

Which of the following is NOT characteristic of the bureaucratic approach to organizational control? a. Rewards focused on individual performance b. Tall organizational structure c. Limited employee participation d. Reliance on rules and a rigid hierarchy e. Reliance on group norms

reliance on group norms

The University of Michigan develops a budget that shows its projected income from sources such as the state of Michigan, tuition and fees, alumni contributions, and research grants. This is an example of a(n) ____ budget. a. operations b. capital expenditures c. nonmonetary d. output e. revenue

revenue

Angela has worked hard to encourage change in Jeffrey's performance, but he is not changing. Angela documented counseling that expresses displeasure with his work. What type of control does this action represent? a. Preliminary b. Postaction c. Feedback d. Screening e. Concurrent

screening

As the product being produced becomes more complex, which of the following types of operations controls would logically become more important? a. Postaction b. Structural c. Screening d. Preliminary e. Financial

screening

A waitress who checks on you after you have tasted the food, but before the bill, is part of a a. screening control. b. preliminary control. c. postaction control. d. human resources control. e. financial resources control.

screening control

McDonald's has determined how small onion should be chopped and how much should be put on a hamburger. Which step in the control process does this represent? a. Corrective action b. Measuring performance c. Comparison of performance to standards d. Setting performance standards e. Goal setting

setting performance standards

Organizations make the decision to have a centralized or decentralized international control system when they are addressing issues of ____ control. a. operational b. strategic c. financial d. bureaucratic e. None of these.

strategic

American Greeting Corp. reported that its "sales have been hurt by people increasingly using the Internet to communicate" and by "lower-priced competition including Hallmark's Warm Wishes line of 99-cent cards." As a result, it decided to lay off 13 percent of its full-time workforce. This need for cost-cutting measures would have been detected by its ____ system. a. operational control b. strategic control c. financial control d. bureaucratic control e. environmental

strategic control

During the recession, many organizations eliminated staff positions in order to decrease expenses. This is an example of ____ control. a. physical b. information c. structural d. financial e. strategic

structural

Which of the following is a characteristic of screening controls? a. Take place during the transformation process b. Involve interviewing potential employees c. Are the same as preliminary controls d. Determine organizational flexibility e. Determine accuracy of organizational standards

take place during the transformation process

Although many organizations have moved away from this practice, traditionally organization budgets were developed by a. the controller acting alone. b. the controller and top managers. c. all managers. d. all employees. e. None of these.

the controller and top managers

Nicole has been working extra hours, but she is not getting paid overtime. She started a log of how she is spending those hours so she can convince her boss to pay her more or hire additional staff. She is using ____ to overcome resistance. a. participation b. flexibility c. appropriate focus d. high standards e. verification procedures

verification procedures

The report issued about the space shuttle Columbia disaster showed a culture at NASA that did not listen when small safety issues were raised. Each issue by itself might not have caused the disaster. However, this example illustrates a. organizational complexity. b. how changing conditions are influenced by innovation. c. why control is necessary to reduce the accumulation of errors. d. how control helps organizations respond to changing standards. e. how organizations cope with multiple control standards.

why control is necessary to reduce the accumulation of errors