Test 1 BMGT

What is the World Trade Organization (WTO)?

A global association of member countries that promotes free trade

The basic tenets of capitalism were set forth in a well-known book, The Wealth of Nations, written by

Adam Smith.

Which of the following characteristics relates to the nature of the management environment?

All of those factors that affect the operation of the organization

You have an employee-of-the-year award in your insurance business for the man or woman who consistently has the best attitude and gives the best service to your customers, as measured by their compliments. Which approach to management is your award based on?

Behavorial

Which of the following refers to those who purchase an organization's goods and/or services?

Customers.

You watch a painter paint a house, and you videotape her movements. Later, you make specific recommendations for reducing her painting motions so she can be more efficient, and you also design a movable ladder for her to reduce fatigue. You are a disciple of

Frank and Lillian Gilbreth.

The fact that U.S. businesses now frequently engage in international trading relations is an illustration of what dimension of the general environment?

Global

Which of the following refers to the market value of a nation's total output of goods and services for a given period?

Gross domestic product (GDP)

Which of the following statements about business ethics is false?

It concerns the impact of a business's activities on society.

Abraham Maslow and Douglas McGregor both advocated which of the following approaches to management?

It should be more humanistic.

What name is given to individuals who work primarily with information or who develop and use knowledge in the workplace?

Knowledge Workers.

The religious movement that argued that each person should consider himself or herself a member of the "elect" was led by

Martin Luther and John Calvin.

All of the following are referred to as industrialized nations EXCEPT

Mexico

A set of principles that describe what a person believes is the right way to behave is called

Moral philosophy.

When you verbally tell your work team that the job needs to be completed by noon, and they all agree this means 12:00 p.m., you have used which of the following specific management skills?

Oral Communication.

Which of the following is NOT a main component of an organization's culture?

Organization size

What is the global dimension?

Pertaining to the general environment, those factors in other countries that affect the organization

What term describes determining what the organization will specifically accomplish and deciding how to accomplish these goals?

Planning

Compounding the waste disposal problem is the fact that more than 50 percent of all solid waste is comprised of , which do not decompose.

Plastic goods.

Within the general environment, which of the following refers to the nature of the relationship between various areas of government and the organization?

Political-legal dimension

Which of the following characteristics relates to business ethics?

Principles, values, and codes of conduct that define acceptable behavior in business

What name is given to managers who schedule and monitor the work process that turns out the goods or services of the organization?

Production and operations managers

What name is given to an interpretation of the purpose of life, stating that, instead of merely waiting on earth for release into the next world, people should pursue an occupation and engage in high levels of worldly activity so that they can fulfill their calling?

Protestant ethic

What name is given to the obligation a business assumes to maximize its positive impact and minimize its negative impact on society?

Social responsibility.

What name is given to the political and economic agreement among the countries of Bolivia, Argentina, Brazil, Venezuela, Uruguay, and Paraguay?

Southern Common Market

Which of the following refers to a person or group that can affect, or is affected by, an organization's goals or the means to achieve those goals?

Stakeholder

What name is given to the degree to which a firm understands and addresses stakeholder demands?

Stakeholder orientation

Which of the following refers to a partnership formed to create competitive advantage on a worldwide basis?

Strategic alliance

What term describes goods or services that may be used in place of those furnished by a given business?

Substitutes.

Electronic business (e-business) involves achieving management goals through the use of

The Internet

What is meant by consumerism?

The activities undertaken by independent individuals, groups, and organizations to protect their rights as consumers

Which of the following was NOT a characteristic of the "productivity problem" in the early twentieth century?

The fundamental inefficiency of standardized mass-production techniques

What is an embargo?

The suspension of trade in a particular product by the government

What is meant by entropy?

The tendency of systems to deteriorate or break down over time

If you manage people using a traditional method of strong direction and tight control, you probably believe in the managerial assumptions of

Theory X.

A tariff that is based on the value of an item describes

an ad valorem tariff.

Like many of the early scientific management theorists and management writers, Henry Towne was

an engineer.

When John Scully, former CEO of Apple Computer, said, "The issue is how do I get all the information I want without getting all the other junk that is out there," he was talking about

appropriate information processing.

Mintzberg's description of the roles that managers actually perform is probably most valuable because it is

based on observation and very specific activities.

Understanding that Arab businessmen tend to stand face to face with the object of their conversation reveals the importance of knowing another culture's use of

body language

When Reebok has some of its athletic shoes produced by a Korean company, but the Reebok name still appears on the shoes, this illustrates

contract manufacturing.

Leading is an especially complex task for managers working outside their own country for all of the following reasons EXCEPT

different styles of native dress.

The group of managers that is concerned with the value of the assets of the organization and the wisdom of investment strategies is

finance managers.

When Henri Fayol said that management's role is to "forecast and plan, to organize, to command, to coordinate, and to control," he was stating the

functional definition of management.

The so-called "Protestant ethic" held that

hard work and self-denial would lead to a better afterlife.

In Japan, if a businessperson failed to bring a gift to a prospective client on their first meeting, he or she would be considered

impolite.

Public relations, boundary spanning, lobbying, negotiation, alliances, and restructuring are all techniques an organization may use to

interact more effectively with the environment.

The phrase caveat emptor means

let the buyer beware.

The functions of a trading company include all of the following EXCEPT

licensing company names, products, and patents.

The major timber companies in Oregon ask for a meeting with their state senators to persuade them to increase the timber-cutting quota in Oregon forests. They are using the interactive technique known as

lobbying.

According to Hofstede's cultural dimensions theory, some national cultures like Japan have a very time horizon, while other countries, such as the United States, want things to happen

long; very quickly

In terms of the organization and its resources, managers are individuals who

make decisions about the organization's resources.

In evaluating criticisms of Taylor's system of scientific management, the evidence is that

many of his ideas, such as precise measurement, remain in use today.

Although your employees are sometimes rude, abrasive, loud, and obnoxious, you unfailingly treat them with courtesy and respect. You have learned in your childhood to turn the other cheek. Your courteous behavior is the result of your

moral philosophy.

You are the executive vice president of Banana Computer, Inc. You have a competitive machine, but your major competitor has the benefit of large-scale production, making its products less expensive to manufacture. In order to remain price-competitive, you send your parts and subassemblies to Mexico for the final stage of assembly, thereby taking advantage of

outsourcing

Perhaps the most basic assumption about the nature of people in Taylor's system of scientific management is that

people are rational beings and are economically motivated.

According to the text, many foreign nations have laws that are different from those in the United States, including all of the following EXCEPT

prohibition of foreign investment.

After the "Citizens to Keep Students from Having a Good Time" group opposed the opening of Chester's bar, Chester had a

secondary stakeholder.

Your company has hired a group of 50 homeless persons as assembly-line workers. You talk to your managers about this program, and they tell you the formerly homeless workers are productive and fit in well, despite higher initial training costs. You have conducted an informal

social audit.

The translation of product names can be a crucial factor in the success or failure of a foreign marketing effort because of

sociocultural differences.

When the manager of the accounting department has the knowledge to answer his employees' questions about current tax regulations, he is displaying

technical skills.

A reality or fact of life in many corporations is that

the CEO manipulates the board of directors.

Your fellow employees regularly take home company supplies such as paper, pens, tape, and glue for their personal use. Although you feel it is wrong to do so, you begin taking home company supplies too. The strongest influence on your behavior is

the overall moral climate of your organization.

The decline of slavery after the fall of the Roman Empire was largely due to the fact that it was

uneconomical.

When confronted with an ethical issue, the manager weighs the costs and benefits of the consequences of all possible alternatives, and then chooses the one that benefits the most people.

utilitarian.

You are the operations manager of the North American division of a Brazilian soft-drink maker. Its newest product is Yukka Cola, which is flavored with an extract of the yucca plant. The new drink has received less than enthusiastic reception. What would you advise?

Adopt a more appealing name.

Which of the following characteristics relates to the U.K. Bribery Act?

All organizations with business operations in the United Kingdom can be held liable for bribery, even if the bribery did not occur within the United Kingdom.

Which of the following is NOT a basic tenet of capitalism as set forth in The Wealth of Nations?

All rights of ownership are assigned to the government, the church, and a wealthy few.

Two major automobile manufacturers enter into an agreement to jointly produce a new subcompact car. They are using the interactive technique known as

Alliances.

Which of the following agencies does NOT operate in the regulatory element of the political-legal dimension?

American Red Cross.

Which of the following is NOT a basic stake in an organization?

An environmental interest, possessed by outside groups

Your boss again asks you to complete three projects simultaneously, but you tell him the last time he did this you got a headache. You ask him to assign you one at a time, and he agrees. What specific management skill have you displayed?

Assertiveness.

Which of the following is NOT a weakness of the rationalization, "I was just following orders" that employees sometimes use to justify unethical conduct?

Authority figures in the organization are a powerful influence.

The period of time between 600 A.D. and 1500 A.D. is often described by historians as the

Dark Ages.

When a manager reasons well, processes information intelligently, and evaluates which strategic option is potentially most profitable, he or she is displaying

Conceptual skills.

What term describes an approach to management theories that emphasizes identifying the key variables in each management situation, understanding the relationships among these variables, and recognizing the complex system of cause and effect that exists in each and every managerial situation?

Contingency approach

The manager of the Boston Red Sox notices that his outfield star, Fenway Fred, has gone hitless in his last ten at bats. Which management function is he performing?

Controlling

Your managerial planning group meets for a happy and harmonious hour, under your direction, and you decide on a price penetration strategy for your new blender. What specific management skill have you used?

Cooperativeness.

You develop a new method of assembling cardboard boxes at the Carlton Cardboard Box Company that requires two new computerized box-gluers but saves the firm a thousand square feet of space. What general managerial role category do your actions fall into?

Decisional

judge an action by whether it infringes on individual rights or universal principles, such as the Golden Rule, equality, or justice.

Deontologists

The night Chester opened his bar for business, Pete's Tofu Hut offered a two-for-one drink special, and The Grilled Turkey expanded its "Ladies Night." They were acting as

Determined Competitors.

You own and operate your own hamburger stand. One of your employees makes the hamburger patties, a second grills them, a third slaps them in buns, and a fourth sells them to customers. You are utilizing what management concept or theory?

Division of labor, or specialization

Which of the following refers to using resources in a way that produces a desired result?

Effectively

Which of the following is NOT a significant or high barrier to entry in an industry?

Existing businesses operating very inefficiently

Which of the following characteristics relates to countertrade agreements?

Exporting that involves bartering products for other products instead of for currency

Which of the following refers to all of the factors outside the organization that may affect the managers' actions?

External environment

You are working for a U.S. oil producer in the tiny oil-rich kingdom of Freedonia. It is the local business practice to provide payoffs in cash and expensive gifts to government officials for the right to extract crude oil for export. To engage in this practice would be a violation of the

Foreign Corrupt Practices Act.

What is meant by leading?

Influencing others' activities to achieve set goals

What term describes the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems?

Infrastructure.

The poorer and less economically advanced, less-developed countries, characterized by their low per capita income, include all of the following EXCEPT

Japan.

Drucker predicted that would become increasingly important in the future, a prediction that became reality in the twenty-first century.

Knowledge workers.

Which of the following refers to a systematic statement, based on observations, of how the management process might best occur, given stated underlying principles?

Management theory

Which of the following characteristics relates to human resources managers?

Managers concerned with developing and carrying out systems that are used to make decisions about employees such as selection, training, and compensation

What are lower or first-line managers?

Managers concerned with the direct production of items or delivery of service

At the age of 45, having made your fortune in the hamburger business, you sell the business, retire, and then take up full-time the hobby you love: painting. Whose theory or concept best describes your decision?

Maslow's self-actualization

What term describes an international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy, and that recommend and promote policies to improve the well-being of consumers and societies across the world?

Organization of Economic Cooperation and Development (OECD)

The all-expenses-paid trip to Belgium that Colorado-based sustainable brewery New Belgium offers to 5-year employees is an excellent example of an organization's

Rites and Rituals

has become a leading issue in the 21st century as both business and the public acknowledge the damage done to the environment by past generations.

Sustainability.

Which of the following characteristics relates to the division of labor?

The idea of breaking an entire job into its component parts and assigning each specific task to an individual worker; also called specialization

You are the vice president of sales of Walker Shoe Corp., manufacturer and marketer of high-quality durable shoes. You would like to gain a foothold in the developing market in the country of Bengala, but lack the resources and expertise. The Bengalese government has made an offer to share the cost and operation of the project. This is an example of

a joint venture.

The consumers of Enviroconscious, a Midwest city, demand a reduction in solid waste in their community, since their landfill is 90 percent full and leaking toxins into their water supply. They protest, however, when a recycling program increases their garbage pickup costs by 25 percent. This is an example of

an environmental tradeoff.

When a manager engages in activities that involve interacting with others who may be external or internal to the organization, and at the same or different level as the manager, he or she is performing

an interpersonal role.

You are a kid who loves cookies, and your parents are gone for at least an hour. The cookie jar is full and is within easy reach on the shelf. Like every cookie-loving kid in the world, you can recognize

an opportunity.

You are the manager of the Fernwood Flailers, a professional baseball team. Feckless Fred, your slugger, has not hit a home run in his last 200 at bats. You call him in, discuss his home-run drought, and show him an inspirational videotape of Ken Griffey, Jr., hitting long home runs. You are

both leading and controlling

In analyzing their external environment, most organizations find that it presents

both threats and opportunities.

All of the following are arguments in favor of social responsibility EXCEPT

businesses may lose their focus on profit-making.

Customer surveys, economic forecasting, and trend analysis are all methods businesses use to

gather information about stakeholders.

An activity that seems to be important for the effective performance of all the major management functions is

gathering and processing appropriate information.

As defined in the text, organizations are groups of individuals who work together to achieve

goals and objectives important to them.

An area in which businesses are beginning to take more responsibility for training and placement is with the

hard-core unemployed.

Because there are numerous suppliers of potatoes for such major fast-food chains as McDonald's, Wendy's, and Burger King, the suppliers

have little control over the restaurants.

Morris Cooke's unique contribution to scientific management was that he attempted to apply its theory of efficiency to

higher education, government, and the management of World War I.

The external environment is usually thought of as differing on two basic dimensions:

homogeneity and change.

You fabricate a fabulous flivver that flies and floats with flair and finesse. It is the finest and fastest flying and floating flivver, ever. Despite its fine safety record, both flying and floating, one day you tell your 40 flivver-fabricating employees that the time has come to install a seat belt in the fabulous flivver. You do this because you

hope to head off increased government regulation.

You are the CEO of a money-losing lead-plating company, and you are a heavy polluter. A local EPA official tells you to begin cleaning up your pollution act, but two major stockholders tell you to clean up your financial act. Your first priority will probably be to

make a profit.

If a Mexican plant assembles, processes, or repairs components for a U.S. company, on which the company pays a tariff only on the value added to the product in Mexico, the Mexican plant is a

maquila.

Social responsibility is the obligation a business has to

maximize its positive impact on society and minimize its negative impact.

For a company to maintain ethical behavior, its policies, rules, and standards to encourage ethical decision making

must be enforced by rewards for proper behavior and punishments for unacceptable behavior.

When a number of Chinese firms were found guilty of defects related to lead paint in toys, an ethical issue arose in the area of

operations and communications.

Chester fires all of his bartenders and replaces them with a computerized drink dispenser, operated by a busperson. Chester has used the interactive technique known as

organizational restructuring.

You lay off two-thirds of the middle managers at your Michigan Marvelous Marshmallow Manufacturing plant, so you will be leaner and meaner and more competitive. The technique you have used to interact more effectively with your environment is

organizational restructuring.

The Sierra Club makes a major effort in Washington to pass a law banning the logging of old-growth forest in Oregon through its political action committee (PAC). It is operating in the

political element of the political-legal dimension.

When an industry is profitable, firms in the industry must be alert to

potential new competitors.

Some Americans argue that should be used to keep domestic wages high and unemployment low.

protective tariffs

According to research, the most important factor affecting daily ethical decisions at work is the

work group or the perceived ethicalness of the work group.